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This December, the President of the European Commission and the President of the Swiss Confederation confirmed the completion of negotiations on a broad package of agreements that aim to deepen and expand the EU-Switzerland relationship. Each agreement, both existing and new, reflects the evolution of EU-Swiss legislation concerned to ensure a dynamic update fruitful cooperation.
Background
Switzerland signed in 1972 a free-trade agreement with the EU (the then European Economic Community), which entered into force in 1973. Switzerland is a member of the European Free Trade Association (EFTA), and took part in negotiating the European Economic Area (EEA) agreement with the EU.
An application for membership in the EU was sent in May 1992, but did not advance since rejecting the EEA in December 1992 when Switzerland conducted a referendum on the EEA (joining the EEA was rejected by 50.3% of voters; the vote strongly highlighted the cultural divide between the German- and the French-speaking cantons).
Switzerland pursues its interests in the EU via the so-called “bilateral path”: i.e. two partners negotiate contractual agreements in selected sectors of mutual interest. On the one hand, these improve reciprocal market access for companies or regulate related aspects of product safety, employee protection and health. On the other hand, they enable closer cooperation in areas such as research, security, asylum, the environment, education and culture.
More on EU-Swiss bilateral agreements in: https://www.europarl.europa.eu/meetdocs/2009_2014/documents/deea/dv/2203_07/2203_07en.pdf
Present negotiations were based on the so-called “common understanding” agreed between the Commission and the Swiss Federal Council in October 2023 which outlined the key components of the package. The negotiations were launched on 18 March 2024, and conducted subsequently under the political leadership of Commissioner M. Šefčovič and based on the mandate given to the Commission by the Council on 12 March 2024. Since then, over 200 negotiating meetings were held to reach an agreement. The completion of the negotiation marks the end of an important phase; it also marks the opening of the signature and ratification process in the EU and in Switzerland.
The “broad package” includes five agreements which already give Switzerland access to the EU internal market: in air and land transport, the free movement of persons, conformity assessment and trade in agricultural products.
Bringing these agreements to a modern standard will enable citizens and businesses on both sides to fully benefit from the rights they provide and will create a level playing field for business.
New agreements
The following areas are included in the negotiation process:
= new agreement on food safety that will establish a Common Food Safety Area covering all dimensions of the food chain.
= new agreement on health that will allow Switzerland to take part in EU mechanisms and bodies addressing serious cross-border threats to health, notably the European Centre for Disease Prevention and Control and the Early Warning and Response System.
= new agreement on electricity that will allow the participation of Switzerland in the EU internal electricity market.
= new agreement on Switzerland’s permanent and fair financial contribution to economic and social cohesion within the EU, reflecting the level of common partnership and cooperation.
= new agreement that will allow Switzerland to participate in several EU programs open to association of third countries: Horizon Europe, Euratom Research and Training, ITER/F4E (Fusion for Energy), Digital Europe, Erasmus+, as well as EU4Health. The Commission will ensure transitional arrangements are in place from 1 January 2025 so that Swiss entities are able to participate in calls from that date.
= a separate agreement will cover Switzerland’s participation in the EU Space Agency, for activities related to the Galileo and EGNOS components of the Union Space program.
Source: Commission press release at: https://ec.europa.eu/commission/presscorner/detail/en/ip_24_6562
Other novices
= Under the updated agreement, Switzerland will treat EU students and Swiss students in the same way with regard to tuition fees and all other fees or charges related to studies in the vast majority of public universities. The current level of access of EU students to these universities will be preserved.
= An arbitral tribunal will resolve the disputes between the parties in any of the agreements that will govern Switzerland’s access to the internal market. However, if there is a question of Union law that needs to be resolved in order to deliver its decision, the arbitral tribunal must submit that question to the European Court of Justice, whose ruling will be binding on the arbitral tribunal. Moreover, the case-law of the European Court of Justice will apply to all these agreements, regardless of whether it has been handed down before or after the entry into force of the package.
= The agreement lays down also the amount of the first Swiss financial contribution to the EU: thus, there will be an annual payment of €375 million for the period from the entry into force of the package until 2036. In addition, there will be an annual payment of about €140 million per year from the end of 2024. The first Swiss financial contribution will therefore encompass the first regular contribution for that period as well as a one-time additional financial commitment covering the period between the end of 2024 and the end of 2029. Lastly, the agreement includes rules on how Switzerland’s subsequent contribution should be determined: it would be based on the previous regular financial contribution but will be adjusted based on a limited set of factors. Switzerland’ financial contribution would mainly foster cohesion within the EU. It would involve support for various projects designated to reduce economic and social disparities in the EU. Such projects could concern for example vocational education and training, green transformation, research and innovation, support for the healthcare systems or SMEs financing, in line with the priorities set by the EU states concerned and Switzerland in their bilateral agreements.
= Any aid granted by Switzerland in the areas covered by these agreements will be subject to the same State aid compatibility rules as those applicable in the EU. Switzerland will have to establish a State aid control system delivering an equivalent level of surveillance and enforcement as the one provided in the EU system, including through an independent surveillance authority. When establishing their State aid control system, the Swiss authorities should ensure equivalence with EU State aid secondary legislation and take due account of the Commission’s relevant guidelines, communications and decisional practice.
= With the establishment of a Common Food Safety Area, the EU and Switzerland have agreed to deepen and extend their cooperation, by replacing the multiple sets of rules that presently govern their bilateral agri-food flows by a single rule book and integrated control system covering the entire food chain. It will notably include food and feed safety, plant health and plant protection products, as well as animal health and welfare.
Reference to: https://ec.europa.eu/commission/presscorner/detail/en/qanda_24_6564
Next steps
The Commission will now proceed with the legal revision and the translation of the agreements and protocols in the package into all official languages of the EU. This will then allow the Commission to make proposals to the Council for the signing and conclusion of the elements of the package. Once the Council authorizes the signing of the agreements and protocols, the Commission could sign them on behalf of the Union. The Council would then request the consent of the European Parliament.
Finally, the Council would decide on the conclusion of the package, allowing for its entry into force.
Citations
= “This agreement between the EU and Switzerland reflects the deep ties that have grown between us. Today marks a new chapter in our partnership as we elevate our cooperation to the next level and modernize the foundation of our strong relationship. This agreement ensures our partnership is fit for the future, enabling both sides to fully harness the potential of our close collaboration”.
Ursula von der Leyen, President of the European Commission
= “With this remarkable milestone, we have a chance to modernise our relations, to keep them in step with the challenging times, and to unlock their full potential to the clear benefit of both sides. As in all negotiations, we needed to strike the right balance – by safeguarding interests of the European Union, while listening carefully to Swiss concerns. I am convinced that this is a positive, balanced deal worth promoting and supporting jointly”.
Maroš Šefčovič, Commissioner for Trade and Economic Security; Inter-institutional Relations and Transparency
Citations from: https://ec.europa.eu/commission/presscorner/detail/en/ip_24_6562