“I TRULY ADMIRE RUSSIA”

Pascal Broulis, Minister of Finance and President of Vaud’s cantonal government, is an admirer of all things Russian. A classical history enthusiast, this Protestant of Greek descent who regards Orthodox spirituality very highly met with Business Mir at his Lausanne offices to discuss Vaud Canton’s economic policy and its relations with Russia.

photo: Bertrand Rey How do you view Vaud Canton’s development in the mid-term? What areas of development has the canton prioritised? Vaud Canton has gone from a largely agricultural economy to a more varied economy with a more varied industrial framework. Modern-day Vaud has become a very dynamic canton which is home to many reputed institutes of learning such as EPFL, IMD and ECAL, etc. But we have to face problems similar to those in other European countries, such as a disadvantageous generation gap and broadening social inequalities, all the while ensuring a smooth integration process for new arrivals. Our priority is to pursue development while taking care to implement it in a harmonious, dynamic manner, valuing the needs of the greater number based on the principle that “one measures a society’s happiness by the well-being of its weakest members”.Can you give us a few concrete examples of present and future development projects? For example, those involving roadway, rail or industrial infrastructure? Faced with a rising population and the consequent need for transport in the Lake Geneva area, Vaud Canton has reaffirmed its support for constructing a third highway lane and another railway line between Lausanne and Geneva. We’ve already signed a convention with Geneva to that effect and are hoping for speedy progress on the project, which depends on federal funding. As far as our canton’s economic development is concerned, we are looking to principally focus on two specific target sectors, health and sport. The Lake Geneva region has actually become an international cluster in terms of medical research and the health professions represent a nonnegligible number of jobs in both Vaud and Geneva Cantons; multiple promising start-ups and clinics are located there. We specifically intend to further develop this very important sector by building a new hospital in Eastern Vaud at an estimated cost of CHF 300 million and by investing over CHF 1 billion in the sector over the next 20 years. Sport is likewise a priority sector for our canton. Given its Olympic capital status, Lausanne has attracted over 50 international sports federations to our region which represent over 1,400 high-value added jobs and between CHF 200 and 300 million in annual revenue. Vaud Canton has the potential to become a world centre for sport research and training programmes for executive sport management professionals. This target also has the advantage of complementing our intentions to develop the health sector very well. What are the advantages – notably in terms of taxes – for a foreign company in establishing a corporate presence in Vaud Canton? Vaud Canton enjoys an enviable level of stability and political transparency – as is the case in other Swiss cantons. Although Vaud may not be the most advantageous Swiss canton in terms of taxes, it offers executive conditions which are particularly interesting for international companies. These include the availability of a qualified workforce (notably due to its close proximity to France), international schools and world renowned institutes of higher learning. The canton also boasts a lively cultural scene with music festivals such as Paleo and Montreux Jazz Festival as well as sites of exceptional natural beauty including Lavaux, which has been named a UNESCO World Heritage site. Vaud features all this along with Switzerland’s traditional advantages such as calm living conditions, confidentiality and respect of personal privacy. What is Vaud Canton’s policy in terms of attracting companies? Do you prefer certain types of business or industries? We are open to all sorts of activity as it is important that Vaud Canton benefit from a well diversified economy. But we place a priority on not losing our industries and the skills they entail while ensuring the professional training of competent engineers. What is Vaud Canton’s policy vis-à-vis Russia and ex-Soviet Union countries? Is that region one of your priorities? Vaud Canton has significant historical ties to Russia with illustrious citizens such as Frédéric-César de la Harpe, who became Alexander I’s tutor, and Jean Capo d’Istria, who played a fundamental role in affirming the Swiss state’s independence in post-Napoleonic Europe. Furthermore, the Lake Geneva region long served as a popular holiday destination for the Russian nobility, who were traditionally Francophiles. These ties are exemplified by Rumine Palace in Lausanne and the Russian Church in Vevey, which had already been built by 1878. Vaud Canton was also a safe haven for numerous political exiles, from anarchists and communists early on to Soviet dissidents at later points in time... hence Russia and the post- Soviet nations are naturally – and even historically – regions with which we make a point of developing bi-lateral relations. I personally truly admire Russia – a nation which has suffered so much from constantly being attacked by its neighbours but has always managed to find the strength to remain unified while preserving its traditions. In September, 2009 you took part in an important Vaudois delegation which went to Moscow accompanied by over 120 businessmen as well as government representatives and figures from various industrial sectors. What conclusions have you drawn from the experience over the past 2 years? Are you considering repeating that sort of initiative? The long term contacts our significant delegation established with Russia have been fruitful and have deepened Vaud and Russia’s commitment to developing economic cooperation and joint university programmes, namely in the form of partnerships between EPFL and Russian scientists. Although we don’t currently foresee another delegation of that scope in the near future, there have recently been a series of bilateral events, such as a scientific conference at EPFL on the common historical ties between Russia and Vaud Canton last June as well as exploration of Lake Geneva’s depths by 2 Russian submersibles during the summer. All these events attest to our strong interest in establishing privileged relations with Russia. The recently established Honorary Russian Consulate in Lausanne – which is very active in cultural affairs, among many others – can only work in favour of creating stronger ties between our two nations.