The coronavirus crisis is still taking its toll on humanity and the global economy one year on from the outbreak of the pandemic. Liechtenstein is facing this challenge both without debt and on the basis of political and economic stability. We at Kaiser Partner Privatbank AG are particularly well positioned as a 100% family-owned enterprise that enjoys the partnership and trust of clients from all over the world.
In the EU in particular, COVID-19 is once again revealing how truly fragile the euro and the situation of economic imbalance is. The coronavirus bonds and the possibility that European sovereign debt will be jointly shouldered stand as stark examples of the perilous circumstances.
Since the beginning of the crisis, it has been clear that the focus is currently on the responsibility of wealthier countries such as Germany, and it is also clear that such members will be asked to pay up in some way in the future. Between the German government’s expansive coronavirus stimulus package and the additional funds for the EU, we can be sure that all of this is going to cost a great deal of money. Sooner rather than later, the discussion will turn to who will be asked to pay for all the expenses that are now being incurred.
There are various ways to refinance the coronavirus debt on the table, starting with higher taxes and expropriation. Such demands have already been made and are not entirely out of the question, as the coronavirus crisis is likely to increase the disparity between social classes even within the wealthy countries of northern Europe. This is also reflected in the draft program for the 2021 federal election of the political party The Greens, which is also proposing the reintroduction of a wealth tax for assets that exceed two million euros. Other possibilities might include higher inflation and a weak euro, both of which represent a general reduction in wealth and prosperity and mean that we will be emerging from the pandemic in a generally weakened state.
Both within the eurozone and in Germany, the social and political climate is likely to tend to deteriorate as a result of the coronavirus situation. When prosperity and entrepreneurship are both at risk, it becomes ever more crucial and necessary to look around for alternatives.
Liechtenstein represents such an alternative. In the current crisis, the contrast between Liechtenstein and the ailing monetary community elsewhere could hardly be greater. The small country in the heart of Europe is a beacon of political continuity and stability. Due to the exceptional situation of our particular location, we at Kaiser Partner Privatbank AG depend on our capacity to think beyond and across our borders. The Principality of Liechtenstein has always stood for innovation, freedom, and entrepreneurship.
As a 100% family-owned enterprise founded by entrepreneur and investor Fritz Kaiser, Kaiser Partner Privatbank AG is a trusted partner of families, entrepreneurs, and investors from around the world. Established in the Liechtenstein capital of Vaduz in 1977, Kaiser Partner Privatbank AG has decades of experience in the field of investments with a focus on capital preservation and sustainability.
For more than 40 years, we have stood for:
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