Agreement: Switzerland and the EU want to work more closely together

The fundamental agreement on closer cooperation between the European Union and Switzerland is seen as a milestone in the sometimes thorny relationship. EU Commission President Ursula von der Leyen spoke of a “powerhouse for the future”. Switzerland is surrounded on all sides by EU states, but does not want to join. What you need to know about the EU-Switzerland relationship:

Why is Switzerland not a member of the EU?

The party with the largest number of voters, the right-wing SVP, is fighting against any rapprochement. She speaks of the new negotiation package as a “subordination agreement”. It stirs up sentiment against foreigners and fears for the country’s prosperity. The SVP was also the driving force behind the 1992 popular vote against joining the European Economic Area (EEA), which was rejected by 50.3 percent. The SVP received almost 28 percent of the votes in the 2023 election.

What does she want from the EU then?

“Tailored access to the EU internal market is important for Switzerland,” said the Foreign Ministry. And Michael Grabher, managing director of the pharmaceutical company Swiss Can, says: “We can only achieve prosperity through abroad, because otherwise we are simply too small.” Switzerland already has extensive access to the internal market, but the new negotiating package is intended to modernize the older agreements.

But Switzerland doesn’t pay any contributions to the EU?

No, but of course she can’t have a say either. So far it has given around 140 million euros a year to strengthen structurally weak regions in the eastern EU member states, voluntarily, as it is emphasized. This should now increase to a binding 375 million euros per year.

But the free movement of people already applies as it does among EU countries?

Yes, in return for access to the internal market, EU citizens can work in Switzerland and vice versa under certain conditions. Switzerland is now committed to adopting future EU law, with a few exceptions. An existing exception rule is clarified: freedom of movement can be restricted by mutual agreement in the event of serious economic problems. There is an arbitration tribunal in cases of doubt.

Switzerland is also part of the EU Schengen area without systematic border controls. This and many other collaborations are anchored in five internal market and around 20 other bilateral agreements.

Are there further collaborations with the new negotiation package?

Yes, for example, European students will in future be able to study at Swiss universities on the same terms as locals. Switzerland will be integrated into the European electricity market, and there will be new cooperation in health protection and space research. Even if the package is far from coming into force, Swiss researchers can take part in EU programs again from January 1, 2025.

In addition, the agreements, some of which are 25 years old, are being updated, for example with dynamic legal adoption: This means that EU changes will also be implemented immediately in Switzerland in the future.

What do the EU and Germany get from cooperation with Switzerland?

The EU wants to secure EU citizens’ access to the lucrative Swiss labor market. Wages are significantly higher there. A comparison service for cross-border commuters states that the average household income in Switzerland is a good 10,000 euros per month, but in Germany it is only half that. However, the cost of living in Switzerland is also significantly higher and there are, for example, no employer contributions to health insurance. Around 60,000 commuters from Baden-Württemberg alone work in Switzerland.

Switzerland is the EU’s fourth largest trading partner after the USA, China and Great Britain. Companies in the pharmaceutical, tech and many supplier sectors are already interconnected across borders – the closer the connection, the less bureaucracy.

What does Switzerland get from cooperation with the EU?

In addition to access to the internal market, it can, for example, participate in the EU’s CO2 emissions trading, may be able to send asylum seekers back to EU countries and benefit from police cooperation. She also wants to take part in research programs and the European electricity market. Trade with the EU accounts for 59.2 percent of their total goods trade volume, with Germany alone accounting for 19.8 percent, ahead of the USA and China.

Will EU-Swiss cooperation be on new footing from 2025?

Far from it. Now it’s time to get to the small print. Something ready for signature could be available in the spring, then Parliament in Bern would come into play. The SVP will delay everything there as long as possible. Afterwards she wants a referendum. It is uncertain whether that will happen before the 2027 elections. The package could only come into force after it has been approved by the people. On the EU side, the Council of Ministers must agree.