Switzerland Today
Dear Swiss Abroad,
Tonight Bern wraps up for the year with the federal government Christmas dinner. But before the festive break, officials and parliamentarians at the federal parliament building have been dealing with a packed agenda.
Negotiations between Switzerland and the European Union have concluded, marked by the arrival of the president of the European Commission, Ursula von der Leyen, in the Swiss capital for the official signing of a deal to update their trading relationship. However, the big question remains: what will politicians and the public make of the agreement? Early reactions suggest Switzerland faces tough discussions next year.
Meanwhile, the parliamentary commission of inquiry into the collapse of Credit Suisse has delivered its findings. While no resignations have been announced, mistakes and areas for improvement have been identified.
We’ll be back on Monday. Have a great weekend.
After 197 meetings, negotiations with the European Union on a deal to update their trading relationship are over. The Swiss federal government is pleased to announce that all Swiss negotiating objectives have been achieved.
At a joint press conference in Bern, Viola Amherd, who holds the rotating Swiss presidency this year, and European Commission President Ursula von der Leyen said global upheavals make a good relationship more important for both Switzerland and the EU. The world is becoming fragmented, less Western and less democratic, they said.
Amherd said the new agreement would make Switzerland “storm-proof”. Von der Leyen added: “Geopolitical tensions also have an impact on Switzerland. Strong partnerships are a must.”
Foreign Minister Ignazio Cassis said the deal was “important for the economy, research and security”. He added that it would “allow Switzerland to continue on its tailor-made bilateral path”.
To date, Swiss-EU bilateral agreements have consisted of five accords. But there are now three new ones on electricity, health and food safety.
In the case of the free movement of persons, a safeguard clause will be applied if necessary. A “newly designed safeguard clause can be activated independently by Switzerland”, according to the Swiss federal government.
With Swiss wage protection, Switzerland can maintain its wage and working conditions for posted workers at the previous level. It has secured itself against any regression. However, the EU rules will apply to expense regulations, which the trade unions criticise.
In regard to Horizon Europe: Switzerland will regain full access to the EU research funding programme from 2025.
The entry price for Switzerland to the EU internal market will be CHF350 million ($391 million) per year from 2030. Until then, Switzerland will pay CHF130 million annually.
Mixed reactions to Switzerland-EU agreement.
The conclusion of negotiations on a new deal between Switzerland and the European Union has prompted varied reactions across political and organisational lines.
The Organisation of the Swiss Abroad (OSA) welcomed the outcome, describing it as positive news for the over 466,000 Swiss citizens living in EU/EFTA countries. Likewise, business groups such as the employers’ association, the Swiss Business Federation economiesuisse, and Swissmem, the association for the machinery, electrical engineering and metal (MEM) sector, praised the agreement, viewing it as an important step towards securing Switzerland’s established approach to international relations.
However, there was criticism among labour groups. The Swiss Trade Union Federation and Travailsuisse expressed concerns that the agreement signals a dismantling of wage protection measures.
The deal also marks a significant development for the cantons, whose governments broadly welcomed the milestone.
On the political front, the right-wing Swiss People’s Party remains categorically opposed, rejecting the agreement as an “EU submission treaty.” To underline their stance, party members staged a “vigil” in front of the federal parliament building (pictured above).
Other parties adopted a more measured approach. The Centre Party appreciated the government’s decision to put the agreement up for separate discussion and announced plans to evaluate whether the outcomes offer practical solutions.
The left-wing Social Democratic Party supported the deal but urged the federal government to present a balanced package that upholds wage protection.
The centre-right Radical-Liberal Party considers the result to be better than previous attempts. The party neither cheers nor condemns the agreement.
The left-wing Greens celebrated the conclusion of the negotiations, calling it a significant breakthrough for Switzerland’s position in science and business. The centrist Liberal Green Party echoed this sentiment, commending the agreement as a tailor-made package that secures prosperity and future-proofing for Switzerland.
Credit Suisse collapse: self-inflicted, but authorities share responsibility.
The joint parliamentary commission of inquiry (PUK) has determined that Credit Suisse was primarily responsible for its own collapse, though federal authorities also contributed to the crisis.
Do you remember? The end of Credit Suisse came in March 2023, as clients withdrew their funds en masse over a matter of days. In response, the Swiss government and the Swiss National Bank orchestrated an emergency merger with UBS, assuming significant financial risks to stabilise the situation.
The finance ministry, under the leadership of then Finance Minister Ueli Maurer, played down the crisis and failed to provide the Swiss federal government with sufficient information, the PUK reveals. This lack of timely action delayed liquidity assistance.
Additionally, the financial market supervisory authority (FINMA), overseen by Maurer, relaxed capital adequacy requirements for Credit Suisse, distorting the bank’s balance sheets. FINMA also failed to implement adequate guidelines, a shortcoming exacerbated by Credit Suisse’s resistance to oversight.
Despite these criticisms, the Swiss National Bank and the federal government were commended for their overall crisis management. Although they lacked a contingency plan, the emergency merger with UBS was deemed the correct course of action.
The PUK recommended tightening “too-big-to-fail” regulations for UBS and improving communication within federal institutions to prevent similar crises in the future.
- In-depth report on Swiss public television, SRF (in German)
- The rescue scenarios discussedExternal link.
Bad start for the “environmental responsibility initiative”. The Young Greens’ proposal is heading for a likely defeat, according to a poll.
It is the only proposal in the vote schedule on February 9. The so-called “environmental responsibility initiative”, which calls for the economy to respect the planet’s limits, is heading for defeat at the ballot box on February 9, according to the first Swiss Broadcasting Corporation (SBC) poll conducted by the gfs.bern research institute.
With just under two months to go before the vote on February 9, a relative majority of 49% of Swiss citizens are opposed to the initiative, while only 45% are in favour and 6% are undecided, according to the poll.
While citizens are not convinced by the initiative, the majority recognise the need to protect the environment. Two-thirds of the people surveyed by gfs.bern believe that we are already consuming tomorrow’s resources today, and that the foundations of our existence are therefore under threat.
- The survey results in detail.
Picture of the day
Swiss astronauts Claude Nicollier (left) and Marco Sieber (right) were the star guests at the “De la Suisse à la lune” (From Switzerland to the Moon) evening event at the Federal Institute of Technology Lausanne (EPFL) on December 19.
Nicollier, who has just turned 80, is the only Swiss astronaut with space experience, logging over 1,000 hours during four spaceflights. Sieber, meanwhile, is training with the European Space Agency (ESA) for his first mission into space.
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