speech embargo 31 october 2019, 4. 30 pm challenges confronting the pension system – options and limitations of monetary policy pk - netz conference thomas j. jordan∗ chairman of the governing board swiss national bank berne, 31 october 2019 © swiss national bank, zurich, 2019 ( speech given in german ) ∗ the speaker would like to thank nicolas cuche - curti, peter kuster and inske pirschel for their support in drafting this speech. he also thanks claudia aebersold szalay, simone auer, carlos lenz, susanne muhlemann and alexander perruchoud as well as snb language services. page 1 / 8 ladies and gentlemen i am delighted to be able to talk to you at this important event. it gives me the opportunity to explain our position in what is a difficult financial market environment for you especially as pension fund managers. the swiss national bank ( snb ) is responsible for our country ’ s monetary policy and not for its social policies, nor for its pension schemes. at the same time, however, it is important for us as the central bank that the occupational pension system should be able to fulfil its constitutional mandate : together with pillar 1 – the old age and survivors ’ insurance scheme ( ahv ) – it is required to ensure that insured persons can maintain their previous lifestyle in an appropriate manner after retirement. solid funding is crucial for this, as a pension system must be financially sound if the population is to have confidence in it. such confidence is, in its turn, of fundamental importance in ensuring that the occupational pension system can perform its key economic role. this consists of giving people the certainty that the assets they have saved in their pension scheme during their working lives will actually be available to them in their old age. a good pension system makes it possible for people to reliably plan their future material needs, and fosters security for individuals and stability for society. it is therefore a key precondition for the prosperity and development of a modern economy. a healthy pension system is central to ensuring social cohesion and is one of the cornerstones of switzerland ’ s success. with its three pillars – ahv, occupational pension schemes and private pension provision – switzerland has for several decades operated a comprehensive and well - functioning pension system. our pension arrangements have been envied abroad, which is also reflected in the relevant rankings. in recent years, however, our country has lost considerable ground in this discipline (

jean - pierre roth : switzerland in the midst of the euro area - situation and outlook summary of a speech by mr jean - pierre roth, chairman of the governing board of the swiss national bank, at the south tyrolean industrialists ’ association, bozen, 14 october 2003. the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ). * * * in the past decade, the european currency landscape has undergone fundamental changes. the european central bank today enjoys an excellent reputation as an independent central bank. within a very short time, the euro has become most significant as an investment currency, and it continues to gain ground. since 2002, from the time it took physical form, it has also been legal tender in twelve eu countries. the introduction of the single currency has also had manifold implications for switzerland. first of all, the euro has made business for swiss companies easier. foreign currency management has been facilitated, and the danger of currency turbulences, as witnessed under the european monetary system ems, has diminished. the euro is used as a payment instrument in switzerland approximately to the same extent as formerly the national currencies of our immediate neighbours. it is possible that it will yet gain some significance in this respect. there is no risk, however, of it superseding the swiss franc as payment instrument. as an investment and issuing currency, the euro represents increased competition, but the swiss franc will remain an attractive diversification currency. the greater price transparency in the european market brought about by the euro ’ s launch also has an influence on switzerland ’ s domestic economy, heightening awareness of the need for structural changes. finally, initial fears that the exchange rate relation between the swiss franc and the euro might be destabilised by the introduction of the euro have not come true. notwithstanding a few fluctuations, the relation between the two currencies has remained remarkably stable. overall, therefore, the cohabitation between the swiss franc and the euro is definitely a “ success story ”.