Swiss Review 5/2019

Swiss Review / September 2019 / No.5 10 Politics THEODORA PETER The draft institutional framework agreement designed to govern the future bilateral relationship be- tween Switzerland and the Euro- pean Union (EU) has been on the ta- ble for nine months. Although this treaty with Switzerland’s biggest- trading partner is of tremendous im- portance, the Federal Council re- mained tight-lipped for a long time – only deciding to open up just before the summer recess after months of consultation involving the country’s main stakeholders. It explained in June that Switzerland could not ac- cept the draft in its present form, and that further clarifications were nec- essary. The Federal Council con- sciously avoided mentioning the word “renegotiation” in its letter to EU Commission President Jean- Claude Juncker, given that the EU is categorically ruling out further talks. Specifically, the Federal Council wants clarification on three aspects of the text which it believes will not gain majority support as the text stands because of internal political opposition: wage protection, state subsidies, and the Citizens’ Rights Directive (“Swiss Review” 2/2019). The first of these points concerns the Federal Council’s wish to safeguard Swiss wage levels. With regard to state subsidies, the government wants to ensure that Switzerland only has to apply relevant EU guide- lines when access to the EU single market has been contractually agreed. Thirdly, the Federal Council wishes to clarify that no provision of the framework agreement will be in- terpreted as an obligation for Swit- zerland to adopt the Citizens’ Rights Directive, which defines the recipro- cal right to free movement within the EU and extends to other areas such as entitlement to welfare bene- fits. Ratification unlikely before Juncker’s departure The question is whether “clarifica- tions” are actually enough to resolve these issues, or whether new talks are needed. The present European Com- mission, responsible under Jean- Claude Juncker for negotiating the framework deal with Switzerland, steps down at the end of October, so the clock is ticking either way. Presi- dent of the Swiss Confederation Ueli Maurer (Swiss People’s Party, SVP) said at the beginning of August that he did not expect a solution to be found by the end of Juncker’s term in office. However, talks are unlikely to get any easier under the new European Com- mission President Ursula von der Leyen. Maurer nevertheless believes that Switzerland has time on its side. “And we need time for a solution that serves Switzerland’s interests,” he added. His party, the SVP, wants to abandon free movement completely, having launched an initiative calling for “moderate immigration” – which the National Council is set to debate during its autumn session. At the time of going to press, there was still no Swiss consensus on wage Playing for time The Federal Council will only sign the Swiss-EU framework agreement once a number of contentious points have been resolved. This could still take quite a while. The new European Commission is unlikely to show any greater flexibility in its dealings with Berne. So far, the Swiss tactic of playing for time has done little harm. President of the Swiss Confederation Ueli Maurer has no option but to defend a frame- work agreement that his own party, the SVP, has called into serious question. European Commis- sion President Ursula von der Leyen is un- likely to give Switzer- land much wiggle room, because Brexit has forced the EU to act tough towards non-EU countries.