Brussels/Bern (dpa) – The European Union and Switzerland have signed a series of agreements in Brussels designed to stabilize and expand their long-standing relationship. The agreements, finalized after years of negotiation, aim to deepen cooperation on electricity markets, food safety, and healthcare. A key component of the deal guarantees Swiss companies unfettered access to the EU single market in specifically defined sectors.
In return, Switzerland has committed to adopting EU law and increasing financial contributions to support economically disadvantaged EU regions. These payments are set to rise from approximately 130 million Swiss francs (roughly 142 million euros) annually to 350 million Swiss francs (around 385 million euros) per year, beginning in 2030.
“Today is an significant day for the European Union and Switzerland,” European Commission President Ursula von der Leyen stated at the signing ceremony. “Because the EU and Switzerland may be geographical neighbors – we are partners by conviction.” Swiss President Guy Parmelin echoed this sentiment, asserting that the Federal Council views the agreement as balanced and mutually beneficial, anticipating it will drive prosperity, create jobs, and foster stability for citizens, businesses, and society.
The signing follows a decade of fraught negotiations, including a previous comprehensive cooperation package abruptly abandoned by Switzerland in 2021, citing a lack of domestic political support for a public referendum. The current agreement is similarly expected to face a popular vote in Switzerland, with opponents branding it an “EU surrender treaty.”
Should the agreement fail to pass a referendum, existing bilateral agreements between the EU and Switzerland would remain in effect, but their relevance and efficacy would diminish due to a lack of updates. Proponents of the new agreements warn this would create legal and planning uncertainties, particularly for Swiss companies engaged in trade with the EU.
Switzerland ranks as the EU’s fourth-largest trading partner, following the United States, China, and the United Kingdom. Conversely, the EU, and particularly Germany, represents Switzerland’s most important trading partner. According to the European Coalition for Corporate Justice, the Swiss government’s decision to introduce corporate due diligence law confirms the EU’s leadership role in sustainability.
Under the new framework, Switzerland will adopt EU legislation, though the government states it has secured greater flexibility in implementing new EU legal provisions. The agreement also allows Switzerland to impose certain restrictions on immigration under specific conditions.
The Swiss government initially favored EU membership over 30 years ago, but a 1992 referendum rejected joining the European Economic Area (EEA) by a narrow margin of 50.3 percent. Since then, approximately 25 bilateral agreements have been established, granting Switzerland substantial access to the EU single market in exchange for the principle of free movement of people, with certain limitations. Though, many of these agreements have grow outdated due to changes in EU law.
Notably, the agreements were signed by Parmelin, despite his own Swiss People’s Party (SVP) vehemently opposing the deal. This reflects the unique dynamics of the Swiss governing system, where members of the seven-person Federal Council are bound by collective responsibility and consensus-building, often prioritizing cabinet cohesion over party lines. Switzerland has been governed for decades by a coalition of its four largest parties.
The EU stated that the package will facilitate seamless access to a market of 460 million consumers, yielding economic benefits for both sides. Harmonizing standards and regulations in interconnected sectors is expected to enhance legal certainty and streamline trade in goods such as medical devices and food products. The agreements also aim to establish clearer rules for cross-border commuters.
The agreements also update provisions regarding dispute resolution within the agreement on trade in agricultural products, aligning them with the latest free trade agreements.