Switzerland and EU reach deal on future bilateral relations

Negotiations between Switzerland and the EU on a future trading relationship have concluded, with all objectives achieved, it was announced on December 20. Keystone-SDA

After 197 meetings, negotiations between Switzerland and the European Union to update their trading relationship have been completed. The objectives have been achieved in all areas, the Swiss government announced on Friday. The formal signature on the deal is scheduled for spring 2025. Swiss parliament will also have its say in 2026.

Following the failure in 2021 to finalise an institutional “framework agreement” aimed at simplifying ties between the two sides, Switzerland’s governing Federal Council has opted for a sectoral approach to secure access to the EU internal market. The results of the negotiations are in line with Switzerland’s interests in all twelve areas, the authorities said on Friday.

In the area of free movement of persons, Switzerland will be able to maintain immigration geared to the needs of the economy. The agreement includes a safeguard clause and wages will be protected. Switzerland will also be able to protect its interests in the areas of land transport, agriculture and electricity.

From January 1, 2025, the Swiss will have access to almost all calls for tender under the EU’s Horizon Europe, Euratom and Digital Europe programmes. This has been made possible by an arrangement for a transitional period from the end of 2024 until the negotiated package comes into force.

CHF130 million a year for cohesion

In return, Switzerland has pledged a contribution to the EU cohesion fund for the years 2025 to 2029. This will amount to CHF130 million ($145 million) per year.

The sum will be allocated directly to programmes and projects in Switzerland’s partner countries within the EU. It will be due as soon as the negotiated package of agreements come into force.

For 2030 to 2036, the annual cohesion payment will increase to CHF350 million. This money will help finance joint programmes and projects, particularly in the field of migration.

Work continues

Between December 20 and the entry into force of the package, Switzerland and the European Commission will also work together to ensure the safety and smooth operation of electricity networks. And joint measures will be taken to protect citizens in the event of serious cross-border health threats.

Discussions on the implementation of the Mutual Recognition of Conformity Assessment Agreement and on financial market regulation will also continue. Switzerland and the EU are also continuing their work on legal aspects and translations, with a view to finalising the agreements next spring.

The foreign ministry, together with the other departments, is responsible for preparing the message on the overall Switzerland-EU package. This will cover the package of agreements, adapted Swiss legislation and accompanying measures.

The Federal Council would like to group together the agreements aimed at stabilising the bilateral path in a federal “stabilisation” decree. This would include the updating of existing agreements, rules on state aid, participation in EU programmes and Switzerland’s cohesion contribution. The three new agreements – electricity, health and food safety – will be presented separately in “development” federal decrees.

A national consultation process on the deal is due to open in Switzerland before summer 2025. The Federal Council will then decide on the structure of the package and the nature of a referendum vote. The final decision rests with the Swiss parliament, which will have its say in 2026.

Adapted from French by DeepL/ac

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