As of: 13th of February 2025
Switzerland has a dense network of bilateral agreements with the EU. By updating five existing agreements and introducing two new internal market agreements—alongside cooperation in research, education, and health—the Swiss-EU relationship is set to be further developed and stabilized. However, the EU has linked this further development of the agreement network to a clarification of the institutional framework. To address this, a package approach will now be used. Instead of regulating institutional issues as a whole through a horizontal agreement, these issues will now be resolved individually within each agreement on a sector-specific basis. SwissHoldings welcomes the Federal Council’s efforts, through a new package of agreements with the EU (“Bilaterals III”), to establish existing relations on a solid and lasting foundation. At the same time, the association emphasizes the importance of gaining a deeper understanding of the long-term effects of the dynamic adoption of EU legislation on Switzerland as a business location before concluding an agreement with the EU.
Contents
On March 8, 2024, the Federal Council formally adopted the final mandate for negotiations with the EU following extensive consultations with stakeholders in Switzerland. SwissHoldings participated in the consultation process by submitting its own position. At the core of this mandate is a package approach. Instead of regulating institutional issues as a whole through a horizontal agreement, these issues will now be addressed individually within each agreement on a sector-specific basis.
Position
SwissHoldings welcomes the Federal Council’s efforts to further strengthen and stabilize existing relations through a new package of agreements with the EU (“Bilaterals III”). The bilateral treaty framework between Switzerland and the EU, along with its significant achievements, has proven beneficial for both parties. The successful conclusion of the planned negotiation package is expected to have a direct positive impact on SwissHoldings member companies in various ways. Existing market access agreements can be consolidated and expanded, while new market access agreements can once again be concluded.
The dynamic adoption of evolving EU law, combined with the introduction of an institutionally anchored dispute resolution mechanism, establishes a reliable and predictable regulatory framework for Swiss companies. However, it may also entail further steps toward integration for Switzerland. At the same time, there is a lack of reliable scenario analyses to assess how the newly proposed institutional elements will shape the future of Swiss economic policy, particularly in the context of anticipated political developments at a broader level. The assessment of the treaty package’s benefits must also take into account the necessary domestic political concessions.
