4 Schwerpunkt THEODORA PETER The Federal Council spread good tidings just before Christmas when it announced that Swiss-EU talks had reached a substantive conclusion. Foreign Minister Ignazio Cassis (FDP) called it an important milestone. “Good relations with the EU and neighbouring countries are important in these turbulent times,” he told the media. European Commission President Ursula von der Leyen underlined the significance of the deal by paying a visit to Berne. “We are as close to each other as we could possibly be,” she said, adding that Brussels and Switzerland were equal partners. The package of agreements with the EU contains updates to five existing treaties as well as three new agreements governing electricity, health, and food safety. Swiss-EU relations had been strained for a long time. The Federal Council had unilaterally abandoned talks on an institutional framework agreement three years ago (see “Swiss Review” 4/2021) amid unbridgeable differences on matters such as wage proSwiss-EU relations – the moment of truth awaits Switzerland and the European Union (EU) are keen to overcome their differences. Following a hard series of negotiations, an updated set of Swiss-EU treaties is now on the table. Yet the prospect of a bilateral deal continues to divide opinion in Berne. Voters will have the last word. tection and freedom of movement. The EU was not amused and, among other things, promptly excluded Switzerland from its prestigious scientific research programme Horizon Europe (see “Swiss Review” 5/2022). “The world’s biggest trading bloc” The two sides put an end to the hiatus when they resumed talks last year. Two hundred rounds of negotiations later, and a new deal has been unveiled – one that builds on the bilateral approach approved by the Swiss electorate 25 years ago. Unfettered access to the EU single market, “the world’s biggest trading bloc” (Cassis), remains the cornerstone. Trade in goods and services between Switzerland and the EU alone is worth well over one billion Swiss francs each day. “Our prosperity depends on it,” said Cassis. Access to an economic area with some 500 million consumers does not come free, with Switzerland set to pay an annual 350 million francs for the privilege from 2030 to 2036. These “cohesion payments” will not flow into EU coffers but will instead be used to help economically weaker EU states. Until now, Switzerland’s yearly contribution has amounted to 130 million francs. Alongside access to the EU single market, freedom of movement is another core element of the bilateral deal. Free movement is the principle that allows people to live and work across the borders of the EU bloc. The 500,000-plus Swiss Abroad who live in the EU rely on it. EU citizens are also entitled to live and work in Switzerland. Trade in goods and services between Switzerland and the EU is worth well over one billion Swiss francs each day. Swiss Review / April 2025 / No.2 4 Focus
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