Eu and Switzerland Strive for Cooperation Agreement in 2024: A Fresh Perspective
Facing a hungrier appetite for improved and simplified cooperation, the EU and Switzerland have taken a new step towards strengthening their ties. This endeavor follows Switzerland's decision to pull the plug on negotiations for a framework agreement on bilateral relations in May 2021.
A Failed Past
The 2021 negotiations came to a halt primarily due to Switzerland's stubbornness on excluding certain topics--posted workers, state aid, and the free movement of persons--from the agreement [1]. The EU, however, was opposed to these conditions, leading to a standstill in the negotiations.
Despite their close kinship, both parties shared a collective desire to avoid dragging their footsteps in finalizing the cooperation agreement, with 2024 serving as their predetermined target date.
New Directions and Approaches
To course-correct and potentially seal the deal in 2024, the EU and Switzerland have adopted a new strategy. In this new approach, institutional provisions are woven meticulously into sectoral agreements [1]. This means that state aid rules apply exclusively to the transport and electricity segments. Switzerland, in turn, pledges to mirror regulatory changes with any new EU legal acts within the realm of these sectoral agreements.
Key Innovations
The cornerstone of this new approach includes:
- Dynamic Regulatory Alignment: Switzerland will align its regulatory landscape with new EU norms in sectors such as transport and electricity, but will steer clear of changes in digital and environmental policy.
- Joint Committee and Arbitration Tribunal: If the EU voices concerns about Switzerland's implementation of EU legislation, a Joint Committee comprising EU and Swiss officials will convene to address the issues. If issues escalate, they can be brought before an arbitration tribunal, which may request guidance from the European Court of Justice.
- Consultation and Compensatory Measures: Switzerland retains the right to consult on proposed legislation undergoing dynamic regulatory alignment. If Switzerland elects to ignore newly imposed EU regulations, the EU can impose proportionate compensatory measures within the single market agreements, contingent upon the arbitration tribunal's approval [1].
This revamped collaborative framework is geared towards facilitating more flexibility and sector-specific adaptations, addressing some of the pitfalls that derailed previous negotiations.
Sources
- Enrichment Data: The EU's primary demand during the 2021 negotiations centered around establishing a more inclusive institutional framework agreement. This agreement would have provided a common institutional framework for dynamic regulatory alignment, dispute resolution, and state aid rules. However, Switzerland called off negotiations on this institutional framework agreement due to concerns about integration levels and potential encroachments on its sovereignty [2]. With this new approach, such reservations are being addressed by incorporating institutional provisions into individual sectoral agreements, ensuring greater flexibility and accommodation for Switzerland's unique needs.
