EU-Switzerland negotiations on the brink...potential agreement imminent, yet obstacles persist

Unwrapping the EU-Swiss Knots: A New Chapter Ahead

According to Gilbert Casasus, professor of European studies at the University of Fribourg, the time has come for the final whistle in the long-standing EU-Swiss negotiation game. Casasus remarks, "Despite its imperfections, this move satisfies both Brussels and Bern."

For years, Switzerland, an EU outsider, has been eager to strengthen and develop ties with its largest trading partner. The relationship, at present, is guided by more than 120 agreements. Despite 20 years of discussions about simplifying and harmonizing ties, the relationship hit a snag in 2021, when Bern abruptly halted negotiations without warning.

Discussions resumed in March, with both parties expressing hopes to conclude a deal by year's end. The revised agreements would not only update existing bilateral accords but also establish new ones on crucial issues such as electricity, health, and food safety. This agreement, as the Swiss business federation Economiesuisse suggests, would enable Switzerland to preserve its current economic conditions while fostering growth in key areas.

Placating the People's Mobility Conundrum

One concern that cast a shadow over the prospect of an agreement was the EU's cherished free movement of people. However, recent reports from Swiss media citing diplomatic sources indicate that this was, thankfully, no more than a footnote. The only exception seems to be the amount Switzerland will contribute to the EU's Cohesion Fund, created to tackle economic and social disparities within the bloc.

Maros Sefcovic, European Commission vice-president, expressed optimism over intensifying the talks. "We've had about 200 negotiation meetings," Sefcovic said via X, "Remember, the last ones are always the toughest. Let's make sure the effort was worth it."

Tuesday saw another round of discussions in a friendly atmosphere, according to a European diplomatic source. As these positives round the corner, both parties eagerly anticipate a successful conclusion. While official announcements are yet to be made, whispers suggest European Commission President Ursula Von der Leyen plans to visit Bern before Christmas. Switzerland is reportedly poised to approve the agreement before her arrival, perhaps as early as Friday.

The USS' Warning Bell

The Swiss Trade Union Federation (USS), however, raises concerns about the potential implications on Swiss wages and rail/electricity sectors due to the agreement. Balancing these apprehensions remain a formidable task, as any agreement must pass not only through Switzerland's parliament but also a likely referendum.

The hard-right Swiss People's Party (SVP), the largest political party in Switzerland, vehemently opposes closer ties with the EU. The SVP warns that the agreement under discussion amounts to Switzerland's complete submission to EU, requiring Bern to adopt European law and denouncing the proposed creation of an "arbitration court" to settle disputes.

Magdalena Martullo-Blocher, an SVP parliamentarian, voiced her concerns in the Le Temps daily, stating, "This is grotesque." She cautioned that the EU might find fault with Switzerland if it didn't comply with European regulations. Moreover, by accepting the creation of an arbitration court, Switzerland, according to Martullo-Blocher, is actually authorizing the EU to punish it.

Casasus acknowledges the obstacles ahead, remarking, "Signing this agreement is merely one step...the end game won't materialize until at least 2027...with the risk that, by then, the agreement may already be outdated." A Swiss referendum, he warns, holds the power to derail the fate of this agreement, making it the biggest question mark overshadowing the future of EU-Swiss relations.

Updating the existing bilateral agreements between the EU and Switzerland in 2027 may be complicated due to the democracy-led process, as any agreement needs approval from the Swiss parliament and a likely referendum, according to Professor Gilbert Casasus.
The Swiss Trade Union Federation (USS) has raised concerns about potential risks to Swiss wages and key sectors like rail and electricity due to the proposed new agreements with the EU.
In the general-news context, political tensions remain high in Switzerland over the upcoming EU agreements, with the largest political party, the Swiss People's Party (SVP), strongly opposing closer ties with the EU and viewing the agreements as an attempted complete submission of Switzerland to EU regulations.