EU-Switzerland: Brussels and Bern try again to reach a deal for the future

Brussels – The Council of the European Union has authorised today the Commission to negotiate, on behalf of the EU, a broad package of measures with Switzerland as the basis for future EU-Swiss relations, also defining the corresponding directives for the negotiation.

After the brutal and sudden breakup of May 2021, it is back on track to modernise and deepen bilateral relations between the EU and Switzerland, explains a Council note, to ensure fair competition between EU and Swiss companies operating in the internal market and to guarantee the protection of the rights of EU citizens in Switzerland, including avoiding discrimination between citizens of different member states. The mandate also addresses Swiss concerns by allowing limited exceptions to alignment with EU rules in the free movement of persons, posting of workers, and rail and road transport.

In short, the heart of the Union’s old proposal (from 2014) was somewhat balanced: to arrive at a “dynamic” alignment of rules, allowing decades-old agreements to move forward in step with the new regulations that the Union will make over time.

“The EU and Switzerland have a close relationship based on shared values and strong economic ties. The negotiating mandate we have approved today will allow us to develop our partnership and fully exploit its potential. I hope the negotiations will progress rapidly,” says Hadja Lahbib, Minister of Foreign and European Affairs of Belgium and President-in-office of the Council.

Key elements of the package include institutional provisions to be included in existing and future agreements with Switzerland related to the internal market, providing for dynamic alignment with the EU acquis, uniform interpretation and application, and dispute settlement, provisions on state aid to be included in existing and future agreements related to the internal market an agreement allowing Switzerland’s participation in EU programs, including Horizon Europe, an agreement on Switzerland’s permanent financial contribution to the EU’s social and economic cohesion as a counterpart to its participation in the internal market, the revival of negotiations on agreements on electricity, food safety and health. Negotiations on the different elements of the package will be conducted in parallel.

Based on the mandate, the Commission (which has indicated that it “welcomes” this mandate) can now begin formal negotiations with Switzerland on the comprehensive package of measures. Negotiations are scheduled to start in the coming days.

A long and challenging affair

In May 2014, the Council authorised negotiations between the EU and Switzerland on an institutional framework agreement governing bilateral relations. In November 2018, the European Commission and Switzerland finalised an institutional framework agreement draft. However, in May 2021, Switzerland unilaterally broke off negotiations on this agreement.

In February 2022, the Swiss Federal Council proposed an alternative way forward for EU-Swiss relations, consisting of a broad package of measures, including institutional elements to be included in any bilateral agreement related to the internal market. Based on this alternative approach, exploratory talks followed between the Commission and representatives of the Swiss Federal Council. On December 15, 2023, the Commission and the Federal Council published a common understanding, reporting the outcome of the exploratory talks in writing.

The EU mandate was agreed upon in line with this common understanding and is reflected in the Commission’s recommendation for a mandate submitted on December 20, 2023.

The mandate builds on the 2014 mandate for an institutional framework agreement and previous mandates for agreements on electricity, health, food safety, and Switzerland’s participation in European Union Agencies for the Space Program and Railways.

The Swiss Federal Council approved Switzerland’s negotiating mandate on March 8, 2024.