The German state of North Rhine-Westphalia is again bringing scrutiny on itself by putting on airs of vigilantism and proceeding with the purchase of more data CDs from Swiss banking institutions with information on German account holders.
While I can understand and do sympathize with the slowness of reform and the byzantine channels of bureaucracy, NRW is really airing its frustrations—continuing to pursue this tactic in order to reclaim hypothetical tax revenue loss from citizens who might be seeking to hide wealth in the Confederation and then previously threatening to
withhold financial assistance meant to help the former East Germany develop economically—by taking matters into its own hands and exercising a prerogative that is criminal, at least by proxy, is exacerbating and threatens to unseat the whole process. Such volleys of deals that are not above board, however indirect, and trafficking in stolen goods would make the Swiss, I think, unwilling to entertain more transparency and reform in a legal framework, and turn German depositors into anathema, unwelcomed like their American counterparts already shunned by the US’s world-policing. Further, Switzerland, in order to dampen the effects of investors seeing the franc as a safe-haven and the follow-on inflation of its value (being bad to trade and export), is buying up quite a significant amount of German bonds. In other words, servicing German debt, and while I don’t think that act against its own interests like the government of NRW (or what the American authorities are doing) by doing something rash and outside of jurisdiction, decisions are suspended on a delicate equilibrium that is not beyond being passive-aggressive.
