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Swiss to defend banking secrecy despite crackdown

ZURICH (Reuters) - Switzerland will keep defending its strict banking secrecy after making some concessions but expects more pressure from a global crackdown on tax havens due to the economic crisis, a minister said yesterday.

Swiss Economy Minister Doris Leuthard made the comments in a speech in Zurich as the G20 summit in London announced it wanted to fight tax havens that did not share information.

Switzerland, the world's biggest offshore centre, agreed last month to comply with international rules on sharing information about foreign savers on a case-by-case basis, but not automatically, as many countries want.

Leuthard said Switzerland had made this concession because it did not want Swiss exporters to suffer being blacklisted, but it expected more pressure in future.

"Because in difficult years every finance minister cares about the hair-shirt of their own tax payer, we cannot assume that we will now be left in peace," she said.

The government will continue to fight the automatic exchange of information about bank clients, she said, but added it was important that the Swiss financial industry was "clean" and could compete due to its "quality, efficiency and expertise".

German Finance Minister Peer Steinbrueck, who has angered Switzerland with his fierce rhetoric on the need to clamp down on tax evasion, said at the G20 in London he was interested to see what offers Switzerland would come with on tax cooperation.