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November 7, 2015

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Zug canton may scrap German need for PR

Lawmakers in the Swiss canton where fugitive trader Marc Rich took refuge and which Glencore calls home may try to ease the path to permanent residency for some foreigners by scrapping a German language requirement 鈥 as long as they鈥檝e got enough money.

The canton of Zug, with 120,000 residents, now requires that foreigners from countries including Russia, South Africa and the US learn German if they want to obtain permanent residency.

Some well-heeled foreign residents have balked at this demand, however, leaving Zug worried that they make take their money elsewhere, just as local financial officials expect a 2016 budget deficit of 26.3 million Swiss francs (US$26.4 million).

鈥淭he canton of Zug is small, and it impacts us when people with significant income and wealth move away,鈥 Beat Villiger, an elected member of Zug鈥檚 government, said. 鈥淎nd Zug is currently grappling with austerity measures.鈥

Under a plan backed by the local Swiss People鈥檚 Party and FDP factions, those seeking permanent residency would be allowed to skip German lessons if they earn 1 million francs annually and have taxable assets of 20 million francs.

The less-wealthy would still be put through their paces in the German classroom.

Those in favor of the plan face hurdles, however.

The two factions backing the plan hold just under half of the 80 seats in the local parliament, so they would need to peel off a few votes from other parties to push it through.

The opposition Greens have vowed to block the move or try to get it overturned if passed.


 

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