Retaliation in the banking secrecy clash with Germany?

07:29 GMT, March 26, 2009 The Swiss Ministry of Defence said yesterday afternoon that it would delay the programme for the Partial Tiger Replacement (TTE) for the Swiss Air Force until at least 2010. Three candidates are still in the race for the $1.9 billion procurement contract: Dassault’s Rafale, Eurofighter Typhoon and Saab JAS 39 Gripen. The Swiss MoD intended to purchase 33 new aircraft to replace the aging Northrop F-5E/F Tigers, some of which have been deployed since 1976.

In an official statement, defence minister Ueli Maurer said that the MoD would first draft a report on the country's defence policy, which may be released in December 2009, and then decide on whether it needed the new planes. This means that a decision would be delayed by at least six months as the evaluation of the tests and updated offers would be concluded by the end of May 2009. The selection of the aircraft type was planned for July 2009 and many defence analysts have seen the Eurofighter as being in the best position for the acquisition.

The two-stage process of requests for the proposal began in January 2008 with the first request for a proposal armasuisse addressed to the four aircraft manufacturers: Boeing, Dassault, EADS and Saab. In April 2008 Boeing decided not to submit an offer. The remaining manufacturers submitted their proposals in July 2008. These companies have since been invited to submit a second offer by mid-April 2009.


The decision to delay the programme has not been unexpected, since the programme had been unpopular in Switzerland since first announced. The financial crises have done the rest to raise doubts whether such expensive aircraft are really needed right now. German media, however, suspect that the move could be a tactical maneuver against Germany for its ongoing campaign against Swiss bank secrecy.


Last year Germany began an aggressive campaign against “tax havens” such as Lichtenstein and Switzerland. Many billions of Euros are believed to be hidden from the German tax office in these traditional tax havens. In the last week the tensions reached a new pitch when German Finance Minister Peer Steinbrück described the Swiss as “intimidated,” comparing them to American Indians quaking at the thought of the oncoming cavalry. The Swiss were outraged by Steinbrück’s comments, with one tabloid calling him "one of the most hated men in Switzerland" and politicians compared him to Nazis. As a signal of protest, the Swiss Minister of Defence returned his German-made Mercedes limousine.

Earlier this week, Swiss newspaper reported that Maurer could delay the fighter project due to French and German attacks on Swiss banking secrecy. Just seconds after the delay was officially announced, Swiss news agency SDA quoted President and Finance Minister Hans-Rudolf Merz as saying that this decision has nothing to do with the tax discussions.


The Swiss People's Party (SVP), Switzerland's largest party, commented on this decision by saying it would support the country’s banks and called for further retaliation in the banking secrecy clash with Germany.

The delay marks the second setback for the western European aeronautic industry since, on Tuesday, the Indian Defence Ministry officially reported to having cancelled its attack helicopter deal, which most likely would favor the U.S. Apache in a new tender (see: http://www.defpro.com/daily/details/275/).