Swiss Push on With EU Talks as Year-End Deadline Looms

(Bloomberg) — Switzerland said it still hasn’t reached an agreement with the European Union on some key parts of a proposed new deal with the bloc, pushing talks closer to a year-end deadline both sides would like to meet.

The government said there has been “substantial progress” in most areas, but more work is needed on issues including the free movement of people. That’s a particular sticking point because Switzerland has pushed for unilateral powers to limit immigration inflows and the EU has made clear that this won’t happen.

After a failed attempt three years ago, Switzerland and the bloc have been in formal negotiations for months on how to repackage a myriad of accords governing bilateral ties. If no agreement is reached, Switzerland could lose existing treaties with the EU, its biggest export market, creating barriers for business and trade.

For an overview of the main negotiating topics, click here

There are also concerns in Switzerland that sovereignty could be undermined by closer EU ties, something raised by the Kompass Europa group, which is backed by the billionaire founders of Partners Group Holding AG.

That was also echoed in a recent poll which found that the Swiss population appreciates links with the bloc for their economic benefits but is skeptical about the idea of a union of common values.

The end-of-year timeframe isn’t a formal deadline that would collapse negotiations. Switzerland has long said its priority is reaching the best deal for the country, and one that will be supported by lawmakers and voters.

In addition to free movement, the government said on Wednesday that talks will also continue on electricity and the power market as well as Swiss contributions to the EU.

“Negotiations will continue in order to achieve convergence between the two parties,” it said.

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