“Relations with Switzerland are excellent”

The EC president will also attend the opening Euro 2008 match in Basel Keystone

José Manuel Barroso, president of the European Commission, says Brussels is setting no deadlines for Switzerland in a tax row that has marred bilateral ties.

The former Portuguese Prime Minister, who has been in his post at the EC since November 2004, begins his first official trip to Switzerland on Friday.

He is due to meet five cabinet ministers, including this year’s president, Pascal Couchepin, to discuss bilateral relations between the 27-nation bloc and Switzerland.

The row over corporate tax breaks for foreign firms has been a bone of contention between European Union and Switzerland.

Barroso’s visit comes as the Euro 2008 football championship, co-hosted by Switzerland and neighbouring Austria, is due to open on Saturday.

swissinfo: What are you looking forward to more – meeting Swiss President Couchepin in Bern or the Euro 2008 games in Geneva and Basel which you will attend?

José Manuel Barroso (laughs): The real purpose I’m here is for my first official visit to Switzerland as Commission president. But of course I’m also very grateful for the Swiss government’s invitation to the opening of the European football championships.

swissinfo: Is Euro 2008 a chance for Switzerland to underline its affiliation to Europe, although it isn’t actually a member of the European Union?

J.M.B.: Switzerland is in the heart of Europe. I hope that Switzerland’s European heart will beat ever faster with the intensification of our relationship. But obviously we respect Swiss sovereignty. It is up to Switzerland to agree what type of relationship it wants with the EU.

For me it is important to show that our relationship is not only economic – there’s also lively debate on political, scientific and cultural issues.

When I was a student I experienced this firsthand when I received a grant to study in Geneva and was received with fantastic hospitality.

swissinfo: So you benefited from the free movement of people long before it was implemented.

J.M.B.: It wasn’t exactly the free movement of people in the modern sense – I spent ages at the local residents’ registration office in Geneva. That place really was bureaucratic…

I think this has got a lot better thanks to the labour agreement. When I came to Switzerland in 1972, the system was much more restrictive for people from Portugal.

swissinfo: You mentioned Switzerland’s autonomy of decision. Does this also include the right to reject the free movement of people in a referendum?

J.M.B.: It is very satisfying that the Swiss people have repeatedly voted for greater openness regarding the free movement of people.

We hope this will also be the case regarding the extension of this treaty to Romania and Bulgaria. From our European perspective the EU now comprises 27 members. We hope that Switzerland respects the fact that there can be no discrimination between EU citizens. Indeed Swiss citizens cannot be treated differently simply because they come from different cantons.

swissinfo: And if the Swiss say no to Romania and Bulgaria? Would a second attempt be possible?

J.M.B.: As you know, I never speculate on negative hypotheses. Let’s concentrate on the positive: of course I hope a referendum will result in a positive outcome.

swissinfo: In 2006 you sharply criticised Swiss cantons for granting certain tax privileges to foreign firms. How much time are you giving Switzerland in this matter?

J.M.B.: We discussed the issue very candidly and I believe we got our message across. We’re currently developing a very constructive dialogue.

I hope we find a solution that is both acceptable for Switzerland and which respects the EU’s interests.

swissinfo: Is there a deadline?

J.M.B.: No. Even the word “deadline” is terrible. We are engaged in a constructive and positive dialogue.

Obviously this should lead to a solution within a sensible period of time, but we have not set any binding limits.

swissinfo: Turning to banking secrecy, Switzerland feels it routinely comes under pressure from Brussels.

J.M.B.: The ongoing debate on revising the taxation of interest guidelines is for the time being a purely internal matter for the EU.

By autumn we want to check how the effectiveness of these guidelines can be improved. Swiss banking secrecy is not on the agenda for this revision.

swissinfo: Isn’t there a certain weariness in the EU always having to deal with this small country’s special requests?

J.M.B.: Don’t underestimate your country! Sure it is small, but everything is relative: compared with China the EU is also small.

For example as a trade partner Switzerland is more important for us than China. For me, more important than this economic angle is respect for diversity in Europe. The EU’s motto is “United in Diversity” – and the founding father’s of Europe were greatly inspired by the federal composition of Switzerland.

swissinfo-interview: Simon Thönen in Brussels

In brief

The EU is Switzerland’s most important trading partner.

More than 20 major bilateral accords between Brussels and Bern have come into force over the past few years, covering trade, labour, transport, asylum, police and customs.

Bern and Brussels are negotiating a bilateral agreement on electricity. Moves are also underway for a deal on a free trade agreement on agriculture and on health.

The Swiss parliament is currently debating continuing a key labour agreement and extending it Bulgaria and Romania. The rightwing Swiss People’s Party has threatened to force a nationwide vote on the issue.