Switzerland and the European Union have a long history of close cooperation. And while Switzerland might look like a solitary island in the middle of the EU, it shares many goals, values and policies with the 27-nation bloc.
The lives of Swiss and EU citizens are closely entwined. Over 1.5 million EU citizens live and work in Switzerland, and 450,000 Swiss nationals are based in EU countries. © KEYSTONE / GAETAN BALLY
Over the past 50 years, Switzerland and the EU have agreed on more than 120 bilateral deals to ensure smooth relations in areas such as trade, transport, security, and education.
Because the EU is Switzerland’s most important economic partner, barrier-free participation in the EU single market remains a priority for the Swiss. At the same time, a priority for the EU is the integrity of its single market, which calls for the same rules to apply to all participants.
Why it’s challenging
Previous negotiations came to a halt in 2021, when the Swiss government rejected the proposed Swiss-EU institutional framework agreement (InstA). One challenge was managing the free movement of persons in a way that works for everyone. For the Federal Council, differences on the following essential points were ultimately insurmountable:
The threat to the tried and tested protection against wage dumping (in the form of accompanying measures)
The feared increase in EU social welfare recipients with no option to withdraw residence rights or deport persons convicted of criminal offences (EU Citizens’ Rights Directive)
Open questions concerning the regulation of state aid (level playing field)
Despite the challenges, the Swiss authorities are committed to solving these problems with a new approach. Well-regulated relations between Switzerland and the EU are essential, and guarantee prosperity and stability for both sides.
Going forward, the Federal Council’s primary objective is to consolidate and further develop the bilateral path with the EU via a package of new and revised cooperation and market access agreements. Compared with the institutional framework agreement, this package approach allows greater flexibility and scope for action to safeguard the interests of both sides during the negotiations.
Negotiating mandate
In December 2023, the Federal Council approved a draft negotiating mandate for continued cooperation with the EU. This mandate is based on parameters approved by the Federal Council, the outcome of some 18 months of exploratory talks with the EU, and the discussions held with social and economic partners in Switzerland. Relevant Swiss parliamentary committees as well as the cantons spoke out in favour of the mandate; social partners had the opportunity to comment as well. The Federal Council integrated many of these recommendations into the final version of the mandate, which it signed off on definitively in March 2024. The negotiations opened on 18 March 2024.
For the Federal Council, the mandate enjoys good domestic support and leaves room for manoeuvre for the negotiations with the EU. The negotiations will address the following key points:
New agreements on electricity, food safety and health
Also new: Dynamic adoption of legislation and dispute settlement when it comes to the five market participation agreements between Switzerland and the EU (free movement of persons, overland transport, civil aviation, agriculture and the mutual recognition of industrial goods)
Swiss participation in EU research and education programmes like Horizon Europe
Regular Swiss EU cohesion contributions
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Switzerland is the EU’s 4th largest trade partner
A desirable partnership
Switzerland is an attractive partner for the EU. Here are some key Swiss assets that contribute to Europe’s quality of life and future prospects:
Transport links
With its excellent infrastructure and central location in the heart of Europe, Switzerland provides an efficient route for cargo and passengers crossing the Alps. The three base tunnels of the New Rail Link through the Alps (NRLA) are the core of Europe’s main north-south rail freight route. By investing CHF 22.8 billion in the project, Switzerland has significantly increased capacities for environmentally friendly freight transport and smooth trade in the EU single market.
Electricity expertise
Thanks to its geographical situation in the heart of Western Europe and its ability to store electricity via its hydropower plants, Switzerland is well-placed to contribute to the stability of the European power supply. As a hub between northern and southern Europe, Switzerland plays a key role in preventing European blackouts. In its negotiations with the EU concerning an electricity agreement, Switzerland is therefore not only trying to secure its position on the European energy market, but also to strengthen the electricity supply EU-wide.
Related information: International energy policy
Research and innovation
Constitutionally obliged to promote scientific research and innovation, Switzerland has a long tradition of research cooperation with the EU and its predecessors. The European Commission and Switzerland both want to deepen this successful cooperation. A current priority is setting up a legal framework to ensure Swiss participation in the current generation of EU R&I programmes (2021-2027) – in particular Horizon Europe and Erasmus+.
Related information: Facts and figures on Swiss participation in the EU’s research and innovation programmes and initiatives
Jobs, workers, social and human ties
The lives of Swiss and EU citizens are closely entwined. Over 1.5 million EU citizens live and work in Switzerland, and 450,000 Swiss nationals are based in EU countries. Both the European Commission and Switzerland want to grant their citizens and businesses fair conditions for providing services for up to 90 working days per calendar year – including the posting of workers – while fully ensuring the rights of workers. They share the common objective of upholding the principle of “equal pay for equal work in the same place”. Switzerland is also looking into internal measures that could safeguard Swiss wage levels.
For EU citizens, the Swiss job market is very attractive. With some 391,000 cross-border commuters and posted workers, there’s hardly an EU country providing so many opportunities as Switzerland does in relation to the size of the native population.
Contributions to EU countries
Switzerland supports EU countries with financial aid as well as expertise. For the 2019-2029 period, it has earmarked CHF 1.102 billion for these 13 countries that joined the EU after 2004: Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Romania, Slovakia and Slovenia. The focus is on vocational education and training. Another CHF 200 million will be used for migration-related measures in countries particularly affected by migration.
More here: Switzerland’s contribution to the enlarged EU
Shared values: Ukraine
Switzerland also shares EU values regarding Russia’s military aggression against Ukraine, which it condemns in the strongest possible terms. In addition to adopting EU sanctions against Russia and Belarus, Switzerland provides humanitarian aid on the ground in Ukraine and special protection status for those fleeing the conflict.
Room for manoeuvre
In short, the EU and Switzerland share the common goal of improving the quality and the predictability of their relations as well as strengthening Europe’s competitiveness and position in the world. The negotiating mandate makes it possible for the concerns of both Switzerland and the EU to be brought to the table and discussed simultaneously. Its various elements provide room for manoeuvre in the search for solutions. The common understanding shaped during the 18 months of exploratory talks will help pave the way to ensure a smoother and more efficient exchange during the formal negotiations.
Background
For more background information on Swiss-EU relations, please consult the following resources:
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The EU is Switzerland’s largest trade partner
Source link : https://www.admin.ch/gov/en/start/documentation/swisseurelations.html
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Publish date : 2024-03-18 03:00:00
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