Europe’s Vault Amid Americas Strategic Retrenchment
AFP via Getty Images The future of European security has become one of the central geopolitical questions arising from Washington‘s strategic retrenchment. America’s emerging burden-sharing and burden-shifting policy will compel European powers to construct a new continental security architecture – a formidable undertaking given Europe‘s fractured strategic history and uneven military capabilities. Within this evolving landscape, Switzerland’s longstanding posture of neutrality and its position as Europe‘s vault could become increasingly problematic as the post-World War II order erodes faster than a replacement system can emerge. This may create strategic space for Russia to expand its economic and political penetration into Europe’s financial core. Sergio Ermotti, CEO of UBS Group AG, said on May 6 that Switzerland‘s largest bank needs to expand its business in the United States. Recently, the Swiss legislature decided to review alternative options to the new capital rules proposed by the Swiss Federal Council for UBS, one of the world’s most influential institutions in wealth management, investment banking, and private banking. At issue is whether the government will insist that UBS fully back its foreign units with Common Equity Tier 1 capital – the most expensive and most reliable tier of holdings – or whether it will permit less









