But regardless of the projects, the aim is always to transfer our excess reserves outside the SNB in order to manage them more effectively than within the central bank and its relatively restrictive framework. On our side, we are not keen about the idea of being in charge of managing a large reserve  BIS Review 73/1999  4  portfolio. We do not wish to wear two hats, one as central bank in charge of monetary policy and that of asset manager for the country. We could run the risk of being caught in the crossfire of criticism when it comes to executing a mandate which is not a part of our basic responsibility. One way or another, the transfer of excess reserves by the SNB to one or several outside entities is not just a simple accounting problem. Even though the National Bank is independent it does not have the legal power to dispose of a part of its own resources for other purpose than monetary policy. Legislative and constitutional steps are necessary and they are currently under way. It is important to have them in mind because they may hold a few surprises. 3. The political process 3.1 First stage: demonetisation of gold The first stage, which aims at demonetising gold, is already well under way. The demonetisation of gold required two legal adjustments: • •  a revision of the Swiss Constitution a revision of the current Coinage Act.
Det framtidige omfanget av petroleumsvirksomheten på norsk sokkel” [The future of petroleum activity. The future scale of offshore petroleum activity in Norway]. BIS Review 145/2010  1  The Committee had limited confidence in the government’s ability to save: The Committee stated the following concerning a savings fund: “It is up to the political authorities to determine whether such a fund construction designed to avoid a future decline in income is realistic. The Committee chooses not to build on such an assumption.” The notion of a sovereign oil fund matured through the 1980s. The government, under the premiership of Kåre Willoch, called for the establishment of such a fund in the Long-Term Programme presented in spring 1986, and the Act on the Government Petroleum Fund was passed in 1990. The main rules are: First: The totality of government petroleum revenues is transferred to the Fund. Second: The Fund is integrated into central government budgets and accounts. The non-oil deficit is covered by an annual transfer from the Fund. The government cannot borrow to finance current expenditure as long as there is capital in the Fund. Third: The capital in the Fund can only be used for domestic spending via general budget transfers, and not for earmarked transfers. Fourth: The Fund’s capital must be invested abroad. When the Act was enforced, the Norwegian economy was in a deep downturn, with high unemployment and government budget deficits. Projections also indicated that offshore production would pass the peak in the early 1990s 5 .