UPDATE 1-UBS deal not to be tied to bonus issue-Swiss President

* Swiss econ min concerned about more euro weakness-Sonntag

* Econ min eyeing trade deals with India, Ukraine-Sonntag

* Govt ministers want to link UBS deal to bonus issue-NZZ

(Adds details on government’s proposal)

ZURICH, April 25 (BestGrowthStock) – Switzerland’s economy minister
said she hoped parliament would not link a deal between UBS
(UBSN.VX: ) and the United States on disclosing secret bank
accounts with questions such as bankers’ bonuses, the newspaper
Sonntag reported on Sunday.

Meanwhile, the paper NZZ am Sonntag said three members of
the government were proposing to link the UBS deal to a
clamp-down on big bonuses and other measures to help pave its
way through parliament.

Doris Leuthard, who is also president, said parliament’s
failure to approve the agreement on disclosing 4,450 accounts
U.S. citizens used to hide money from tax authorities would sour
relations between the two countries.

“I hope that parliament distinguishes between the agreement
and open questions such as ‘too big to fail’ and regulating
bonuses,” she said. “The government wants to solve these
problems, but it’s not possible to link them all.”

The deal hit a stumbling block after a Swiss court ruled in
January that such a transfer of data would breach existing law,
and the government suggested parliament approve the agreement
retroactively to solve the dilemma. [ID:nLDE60L1RV]

The right-wing SVP party, which holds the largest proportion
of seats in parliament’s lower house, is against the deal, while
the social democrats want it linked to questions such as

The government will discuss the UBS deal and an interim
report on banks that are “too big to fail” at its meeting on

Citing sources close to the government, the NZZ said the
foreign, justice, and finance ministers had drawn up a
four-point proposal to help ensure the UBS deal gets passed.

Companies would not be allowed charge bonuses over 2 million
Swiss francs ($1.87 million) as costs on their corporate taxes,
the government would be allowed input on salaries at firms taking
state aid, employee stock options would face higher taxes and
the “too big to fail” commission’s proposals would get support,
the NZZ said.

Reuters reported the finance ministry’s plan on April 12.

Leuthard told the Sonntag that she thought banks needed
stricter capital adequacy and liquidity rules.


Leuthard also said she hopes the euro does not fall further
against the Swiss franc and that she is keen to conclude free
trade agreements with India and Ukraine, among other states.

“Because other (euro-zone) members have high levels of debt
I hope that the euro doesn’t weaken further,” Leuthard said.
“That would be dangerous for our export industry.”

Despite the Swiss National Bank’s policy of fighting an
excessive appreciation in the Swiss franc against the euro, the
Alpine unit has gained more than 5 percent against the common
currency since December, in part due to market worries about
ballooning debts in Greece and other southern European

Leuthard said Europe accounted for about 70 percent of Swiss
exports and that to take advantage of emerging markets,
Switzerland needed to clinch trade deals with the rest of the
world faster than the European Union.

“We’re hoping for progress in 2010 with several countries,
such as India and Ukraine,” she said. “With Russia and China I
hope to open negotiations. Thailand and Indonesia are also on
the list.”
(Reporting by Catherine Bosley; Editing by Louise Heavens)

UPDATE 1-UBS deal not to be tied to bonus issue-Swiss President