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The Federal Council has pardoned Philipp Hildebrand. Nine years after the National Bank scandal, the former central banker is poised to land Switzerland’s top position in the OECD. But the competition is tough.
Declares his candidacy on Wednesday at the Federal Palace: Former President of the Swiss National Bank, Philipp Hildebrand.
Photo: Peter Klaunzer (Keystone)
Philipp Hildebrand is back at the center of Swiss power. And how. Almost nine years after he was forced to resign as president of the National Bank, the Federal Council sends him on the run as an official candidate for the presidency of the OECD. The Federal Council announced it on Wednesday afternoon. The Organization for Economic Cooperation and Development, as the OECD is called in German, is considered the club of rich countries. The Paris-based organization has 37 members from all continents, most from Europe. The Mexican Ángel Gurría, who has led the organization for 15 years, retires next year, so a replacement will be necessary.
Philipp Hildebrand currently works for the powerful US financial firm Blackrock, where he occupies a prominent position. It is very surprising that he is now entering the race for the position at the OECD. Recently, he was more likely to be negotiated as future chairman of Credit Suisse.
“I behaved according to the rules one hundred percent and will continue to do so in the future.”
Basically, Hildebrand’s candidacy for the post of head of the OECD makes sense from a Swiss point of view. The predecessor of Thomas Jordan at the head of the National Bank has always been considered well connected with the international political and business elite. He is probably one of the most influential Swiss.
In Germany, however, Hildebrand’s name is synonymous with a scandal that shook the country and its most important institutions for weeks. While Philipp Hildebrand, as president of the National Bank, defended the Swiss franc in 2011 against the currency turbulence of the financial crisis, his wife at the time, Kashya Hildebrand, carried out large and very lucrative currency transactions. Given Hildebrand’s position: very problematic.
While Hildebrand stated that she knew nothing about it, there were indications that this was not the case. When he left, the former president of the National Bank declared that he had not lied. He also reaffirmed at the Federal Council press conference: “I have behaved in accordance with the regulations one hundred percent and I will continue to do so in the future.”
However, it is remarkable that Federal Councilor Hildebrand now expresses his confidence so clearly. Economy Minister Guy Parmelin declined to comment on the candidate’s story on Wednesday. It was about eight years ago, Parmelin said. “There is no risk that this will become an obstacle to the candidacy.”
The competition is tough
Although the currency scandal is unlikely to affect its electoral prospects in the OECD, it is seen primarily as an internal problem. However, it is difficult to judge how good Hildebrand’s chances are for the post of head of the OECD. In any case, the competition is strong. Seven states have already nominated personalities. US President Donald Trump sends his chief of staff, Christopher Liddell, on the run. There are two women running for Europeans: former EU Trade Commissioner Cecilia Malmström from Sweden and Kersti Kaljulaid, the President of Estonia. Canada, the Czech Republic and Australia have also nominated candidates.
The OECD dates back to the Marshall Plan, with which the Americans wanted to help Europeans regain economic growth after World War II. On the one hand, this explains the great weight of Europeans. However, the largest contributor is the US, with a share of more than 20 percent of the OECD budget. That in Switzerland is only 2.2 percent. On the one hand, the organization is known for its economic reports and forecasts. But it is even more important as a kind of regulatory authority for globalization.
A burning iron of the OECD today is its commitment to uniform and fair tax standards. The central idea is that companies must pay their taxes where they make their sales and less where they are based. This concern, which is supported mainly by Europeans, is particularly directed against American internet giants like Google. The Donald Trump administration sees this as a blow to the American economy. If Trump were re-elected, the Americans would hardly tolerate an EU representative in the OECD presidency and the EU would not tolerate a representative of a Trump administration. But even with a Biden President, it remains uncertain whether the two blocs could meet here. That could be an opportunity for Philipp Hildebrand as a candidate for neutral Switzerland.
Less wages, more public pressure
Finally, the relationship between Switzerland and the OECD was not always rosy. In terms of organization, the country was repeatedly under great pressure due to its tax rules for corporations and, earlier, because of its bank secrecy. In any case, Philipp Hildebrand wants to play an active role in shaping the tax issue when he is elected: “That is a major concern for me, especially in the area of digital tax. It will be very important that we find a global solution. If each country here simply acts in its own interest, we will end up with a solution that is suboptimal in terms of prosperity, growth and economic equality. ”
But why is the Blackrock banker even trying to get a job where he earns less and is exposed to more public pressure? Hildebrand’s reasoning at the press conference: “First of all, I was actively involved in many international organizations and I have always liked doing this work in the service of the public. Second, and this is really crucial, I am truly convinced that the world economy is facing a major structural transformation. ”Hopefully, the Swiss can help shape it.
