* Business, trade unions, government hold talks on franc
* No measures decided to weaken franc
* Only central bank can act to stem franc rise
* Swiss franc well off record peaks hit end-2010
* Swiss banking lobby rejects speculation accusation
(Adds banking group statement, SNB background)
By Paul Arnold
BERNE, Jan 14 (Reuters) - Moves to counter Swiss franc strength should be left to the central bank despite the risks posed to the Swiss economy, a crisis meeting of government, business, bank and trade union representatives agreed on Friday.
The safe-haven franc rose about 16 percent against the euro last year due to concerns about the euro zone debt crisis, making exports more expensive and prompting warnings from the Swiss National Bank it could threaten the economic recovery.
Participants at the meeting agreed that the franc's high valuation against the euro and the dollar presented risks to the economy, but decided only the central bank could act to combat the currency's strength, the Swiss Economics Ministry said.
"There was unanimous agreement that the strength of the franc can only be tackled by monetary policy, for which the Swiss National Bank is responsible," the ministry said in a statement.
"Various participants underscored the major importance of the national bank's independence in this respect."
On Wednesday, SNB vice-chairman Thomas Jordan said the strong franc was an enormous challenge for exporters, but dismissed calls for measures to fight its rise such as negative interest rates or a euro-franc peg.
The SNB is also not expected to resume the currency interventions it stopped in June after it was widely criticised for running up massive losses, especially as the risk the franc will trigger a harmful deflation spiral is seen as low given the robust recovery.
STRONG FRANC HITS JOBS, EXPORTERS
While a number of those present at the meeting proposed measures to stop the franc's rise, opinions varied on the possible effect such measures might have, the government added.
The Swiss Federation of Trade Unions, which has backed the idea of tying the franc to the euro, urged the government to take action on the currency in order to protect Swiss jobs.
"The good thing about today's franc summit was that it took place at all. People are becoming more conscious of the fact that the strengthening franc is a huge problem for Switzerland's workplace," the federation said on its website.
Meanwhile, the Swiss Banking Association rejected accusations that its members had contributed to the currency crisis by speculating, saying Swiss banks only contributed about 5 percent to global currency trade.
"This is not about franc strength, but about euro and dollar weakness founded on a massive loss of confidence of international investors," its head of communication Jean-Marc Felix said in a statement.
The franc's strength is hitting the country's financial industry and the wider economy as well as exporters, the Swiss Private Bankers Association said on Thursday. [ID:nLDE7091OP]
Friday's meeting was called after the franc hit record highs at the end of December, but it has actually fallen sharply this week on improved euro zone sentiment, leaving it some 4 percent off the all-time high of 1.24 per euro it hit on Dec. 30.
It was trading at 1.288 francs per euro at 1545 GMT.
However, the franc's strength has already hurt earnings at
Swiss companies, with sanitary equipment maker Geberit
Swiss Foreign Minister Micheline Calmy-Rey said at a separate event in Geneva that the government would consider measures to counteract the strength of the franc if pressed.
"If necessary the Federal Council would take measures if the time came," Calmy-Rey told the Swiss Press Club in Geneva. (Additional reporting by Silke Koltrowitz and Albert Schmieder in Zurich, Stephanie Nebehay in Geneva; Writing by Jason Rhodes and Emma Thomasson; Editing by Catherine Evans)