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Swiss preparing new economic stimulus package-paper

Published 01/24/2009, 09:31 AM
Updated 01/24/2009, 09:32 AM

ZURICH, Jan 24 (Reuters) - The Swiss cabinet is planning a possible third economic stimulus package to prepare for any deepening of the global financial crisis, Economy Minister Doris Leuthard was quoted as saying in an interview published on Saturday.

"The Cabinet is working on a package that, if necessary, is geared towards 2010," Leuthard told St. Galler Tagblatt.

"Should the crisis become more serious and last longer, I want to be prepared for everything and to be able to trigger the measures without complication."

Leuthard announced a second stimulus package of some 650 million Swiss francs ($561.8 million) in December to support the economy mainly through infrastructure projects from mid-2009, adding to a previous package worth around 900 million francs. [ID:nLG74407]

A decision on whether to introduce a further Swiss stimulus package would come in the summer, depending on whether U.S. President Barack Obama can get an $870 billion economic package to take effect quickly, Leuthard said in Saturday's interview.

She also said the government would consider cutting value-added-tax.

"If consumption is no longer having a stabilising effect from 2010, you have to think how you can support it," Leuthard said. "Tax cuts would only start to work in 2011, but a VAT cut would take effect quicker."

(Reporting by Jason Rhodes; editing by Patrick Graham)

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