The Swiss parliament’s upper house has backed a Swiss-US tax deal that averts the risk of crippling legal action against UBS but punched a hole in the country’s treasured bank secrecy.

The deal is yet to be approved by the lower house, which will discuss it next week. The chances of full parliamentary backing have improved since Switzerland’s largest party, the right-wing SVP, lifted its objections in May.

The Swiss upper house also voted against allowing a referendum on the deal that would delay the agreement coming into effect by several months. – (Reuters)