Federal Council approves gas agreement with Germany and Italy
Published: Friday, Mar 15th 2024, 13:20
Updated At: Friday, Mar 15th 2024, 12:20
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The planned solidarity agreement for gas supplies in emergencies between Switzerland, Germany and Italy is moving forward. On Friday, the Federal Council gave the green light for the trilateral agreement to be signed. Parliament will make the decision.
In January, during the World Economic Forum (WEF) in Davos GR, Energy Minister Albert Rösti announced that the three countries wanted to conclude the gas agreement soon. Even though the energy situation in Europe has improved compared to the last two winters, such an agreement would "make sense" in an emergency, said Rösti. They wanted to be prepared for the future.
Now the time has come: the Federal Council has authorized Rösti to sign a corresponding annex to this agreement, as he announced. In addition, the relevant departments have been instructed to submit a consultation draft to him by May with a proposal for ratification and the necessary commitment credits. Parliament will decide on this.
Agreement as a last resort
Switzerland does not have its own gas storage facilities. It is dependent on neighboring countries. Without a contract, there is a risk that neighboring countries could reduce their gas supplies to Switzerland in the event of a shortage.
The trilateral solidarity agreement is intended to regulate reciprocal gas supplies in emergency situations - for example, so that hospitals and households can be supplied with a stable supply of gas even in acute crises. The solidarity agreements are intended to regulate processes and mutual obligations regarding deliveries.
According to the Federal Council, the signing of the annex to the solidarity agreement between Germany and Italy enables Switzerland to request solidarity from the two countries to supply protected Swiss customers in the event of an emergency being declared and after all possible domestic measures have been taken.
In return, Switzerland can also be asked for solidarity in an emergency. The three countries also guarantee not to restrict the existing transport capacities in their grids. For Switzerland, the Federal Office for National Economic Supply (FONES) is responsible for implementing the solidarity agreement.
Court of arbitration for disputes
In the case of solidarity supplies, the federal government would have payment obligations. These include the costs for the gas and gas transportation as well as any compensation for damages in connection with sovereign measures. In order for the Confederation to be able to make payments if necessary, corresponding commitment credits are required.
On the one hand, this is for the state guarantee to ensure payment for voluntary measures by Swiss market participants. On the other hand, in order to be able to compensate sovereign measures implemented abroad for the benefit of Switzerland. Any payments made by the federal government would subsequently be invoiced to the recipients of the gas supplies.
Disputes between the contracting parties that cannot be settled by the competent authorities would be settled before an ad hoc arbitration tribunal. This tribunal decides exclusively and conclusively on all disputes that fall within the scope of the agreement.
According to the arbitration clause, all three parties shall each appoint one arbitrator. The three party arbitrators appoint a fourth arbitrator as chairman. This arbitrator has the casting vote in the event of a deadlock.
Examined by the EU Commission
Germany already has several such solidarity agreements with EU countries. Switzerland should now join the gas solidarity agreement between Germany and Italy.
The EU Commission had already examined the agreement in advance. It wanted to ensure that "intergovernmental energy agreements do not jeopardize the EU's security of supply and the functioning of the internal market", it said at the time.
If a member state signs an agreement that is not compatible with EU law, the Commission has the option of initiating infringement proceedings against this state.
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