Switzerland and the EU agree on the substance of future relations
Published: Friday, Dec 20th 2024, 16:20
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After 197 meetings, Switzerland and the EU have concluded the substantive negotiations on future relations. The objectives defined in the negotiating mandate have been achieved "in all areas concerned", the Federal Council announced on Friday.
According to the state government, institutional issues are directly integrated into the individual internal market agreements and the rules on state aid only apply to three specific areas: Air transport, land transport and electricity. The public service is "not affected".
If necessary, a safeguard clause will be applied to the free movement of persons. In October, the EU member states rejected a unilateral Swiss safeguard clause in the area of the free movement of persons.
The Federal Council now writes that the "newly designed protection clause can be activated by Switzerland independently". This would give the Swiss protection system "an additional instrument in the event that immigration leads to serious economic or social problems".
Long-term wage protection secured
According to the Federal Council, a solution was also found to the key issue of wage protection for the trade unions. Switzerland could guarantee the wage and working conditions for posted workers "while permanently maintaining the current level of protection", it said.
In the case of postings from the EU to Switzerland, this means that posting companies must pay their employees the wages applicable in Switzerland. According to the Federal Council, the current registration procedure in Switzerland for job applicants on short stays will be retained, which will enable labor market controls. The obligation to register will be extended to self-employed persons. This will prevent the freedom to provide services, which is limited to ninety days, from being circumvented.
The pre-registration period for foreign companies wishing to provide services in Switzerland will be reduced from eight calendar days to four working days and will apply in high-risk sectors. Switzerland will continue to determine the level of control autonomously. In future, a deposit must be paid in the event of a repeat offense.
Finally, a so-called non-regression clause safeguards the Swiss level of wage protection against any regression. Switzerland does not have to adopt future adjustments or new developments in EU posting law that would worsen the Swiss level of protection.
Cohesion contribution defined
Following the successful conclusion of the substantive negotiations, Switzerland will regain full access to EU research funding programs such as Horizon Europe from 1 January 2025, the statement continued. In addition, Switzerland and the EU will work together to ensure the secure and smooth operation of the electricity grids even before the package comes into force.
Switzerland will have to pay for its participation in the European single market. In a transitional phase, Switzerland is to make an annual cohesion contribution of CHF 130 million between 2025 and 2029. For the period from 2030 to 2036, the Federal Council and the EU have agreed on an annual amount of CHF 350 million.
Type of referendum open
The final texts of the agreement are to be initialed in the spring. According to the Federal Council, talks with the cantons and the social and economic partners at domestic policy level will be concluded at the same time. So far there have been 150 consultations.
Before the summer break in 2025, the Federal Council intends to submit the package of agreements, the amendments to Swiss legislation and the accompanying measures for an ordinary consultation. Parliament will then have its turn from 2026.
The agreements to stabilize the bilateral path - i.e. the adaptation of existing agreements, state aid rules, participation in EU programmes and the Swiss contribution - are to be combined in a federal decree, as the Federal Council writes. The three new agreements are to be presented in separate federal decrees. This could result in up to four referendums and four separate popular votes.
"The Federal Council will make a final decision on the structure of the package and the type of referendum when the consultation process begins," he wrote in a statement. However, the final decision remains with the Federal Assembly.
©Keystone/SDA
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