Swiss government is working on emergency euro zone plan

Swiss government is working on emergency euro zone plan

Swiss Economy Minister Johann Schneider-Amman was quoted as saying on Saturday that the Swiss government has set up a working group to consider how to support the economy in the case of an escalation of the euro zone crisis.

He said the Swiss National Bank (SNB) would also have to work hard to defend the cap it set on the soaring franc last September if the crisis worsens, saying the pressure on the currency would rise in the case of an "uncontrolled situation".

If the situation remains stable in the European Union, Schneider-Amman said the Swiss economy should probably grow by about 1 percent this year.

In attempt to prevent a recession and deflation, the SNB set a cap of 1.20 per euro on September 6 after the currency had soared 20 percent in just a few months as investors sought a safe haven from the euro zone, hurting exporters and the tourist industry.

Sources:
reuters