Swiss and French reach deal over Basel airport

The EuroAirport outside the city of Basel is the second-largest employer in the French Alsace region Keystone

Switzerland says a comprise solution has been reached with neighbouring France to settle a tax dispute over the tri-national airport of Basel-Mulhouse.

Meeting in the Swiss resort of Davos on Thursday, Foreign Minister Didier Burkhalter and his French counterpart, Laurent Fabius, signed a joint statement outlining the principles for a bilateral treaty.

The agreement in principle foresees that international air transport operators will continue to be subjected to Swiss tax law, while other companies are to be taxed under French law.

“This is indeed a very important step. The partners are thus committed to continuing their efforts to arrive at a definitive and long-term solution guaranteeing the future of the airport and a large number of jobs depending on it,” Burkhalter said at a news conference on the sidelines of the annual meeting of the World Economic Forum in Davos.

Major employer

A formal accord is to implemented by next year, according to a foreign ministry statement.

EuroAirport Basel-Mulhouse-Freiburg is located on French soil but has been operated as a joint public sector body with Switzerland since 1949.

In total, about 6,000 people are employed by the airport, more than two-thirds of whom work for around 60 Swiss companies.

A row over labour issues between both countries at the airport’s Swiss customs sector was resolved in 2012.