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From the simple fact that half of all Swiss goods exports go to the EU, one can quickly see the risk that the failure of the negotiations with Brussels means for Switzerland.
Bilateral contracts need an update
Central bilateral agreements on relations between Bern and Brussels are now up to 50 years old. An update is needed here to fill gaps that have opened up over the decades.
Instead of agreeing on a comprehensive regulation, Switzerland now wants to “dynamically” adopt EU law, so much for the subject of self-determination. The EU Commission, however, has its own ideas. It has made it clear that without a framework agreement, it does not want to conclude any new individual agreements with the government in Bern for the time being, such as those planned for the electricity market or health care. It is also uncertain whether older agreements will be adapted.
The first consequences can already be seen: Because the EU has issued new regulations for medical devices, but the corresponding agreement with Switzerland remained unadjusted, certain Swiss medical devices will in future have to undergo an approval process in the EU. A bureaucratic hurdle that companies would gladly have avoided.
Access to the European power grid will also become more complicated when regulations and standards diverge. Not good prospects for Switzerland, which imports 50 percent of its electricity needs in winter.
In the negotiations, the EU had demanded one thing above all else: that the same rules apply to all actors on its internal market, especially with regard to state aid. She also wanted to make it clear that the European Court of Justice has the last word on disputes. The Swiss government did not want to support that. That is their right. Only now the economy has to pay the price for it.
More: What the failure of the EU-Switzerland agreement means
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