Swiss authorities said they had "taken note" of a fresh negotiating mandate adopted by finance ministers from across the 27-nation EU.
"Back in 2009, Switzerland had already declared its willingness in principle to discuss extending the EU savings tax agreement so as to close loopholes," the Swiss finance department said in a statement.
"As soon as the request from the EU to conduct negotiations with Switzerland on extending the savings tax agreement has been submitted, the Federal Council will examine the request and then respond," it added.
The Federal Council is the seven-member cabinet of Switzerland, which remains staunchly outside the EU but is surrounded by the bloc's members and has tight economic ties with them.
Often criticized for allowing EU residents to stash what may be undeclared cash in its banks, Switzerland has over recent years made deals with the EU to tax the savings of such depositors and pay the funds anonymously back to member states.
The country's banks are a traditional refuge in tough times, and with the crisis afflicting Europe stoking the debate, Brussels has pushed the Swiss to go further by revealing information about clients automatically.
Switzerland, however, has insisted that any efforts in its part must be matched by those of other financial centres both within the EU and beyond.
"In its assessment of future frameworks, Switzerland will use developments in important international financial centres outside the EU in addition to developments in the EU," the finance department said.
"Switzerland will also collaborate with the OECD bodies which are involved in drawing up global standards for the exchange of information," it added, referring to the 34-nation Organisation for Economic Cooperation and Development.
The tax evasion issue has sparked bitter debate within the EU itself, though resistance has been chipped away.
Austria has been seeking guarantees before it drops resistance to the automatic sharing of bank records.
Luxembourg was long the other main obstacle to such transparency covering savers agreed by the rest of the EU fully five years ago, but it has said it will now ease its banking secrecy restrictions.
EUROPEAN UNION
Swiss wait for EU tax evasion initiative
Switzerland said Tuesday that it was ready to boost cooperation with the European Union in the latter's battle with international tax evasion, provided Brussels made a formal request for talks.
For members
IMMIGRATION
Why is Switzerland spending 300 million francs to protect Schengen borders?
From August 1st, 2024, Switzerland will contribute financially to the European effort to strengthen the protection of the Schengen area’s external borders.
Updated: 31 July 2024 14:08 CEST
Though Switzerland is not a member of the EU, it does belong to the Schengen area — not only benefitting from the access to Europe’s borderless zone, but also participating in its funding.
Financial support is especially needed in Schengen countries with particularly extensive land and sea borders or major international airports on their territories, because they bear a heavy financial burden of securing the zone’s external borders, for the benefit of all the other members.
How will Switzerland’s 300-million-franc contribution be used?
Over the period of next seven years, it will go toward the programme called Instrument for Financial Support for Border Management and Visa Policy (BMVl), which is part of the fund that ensures efficient management of EU’s borders.
The EU already allocated 6.24 billion euros to the BMVI for a seven-year period, and 300 million francs is Switzerland’s share.
Specifically, those funds will be used towards improving external border controls, investing in common large-scale IT systems in the area of borders management and visa policy, funding infrastructure and equipment, and deployment of immigration liaison officers, among other tasks.
Why is Switzerland contributing 300 million francs?
The BMVl’s goal is to “improve the protection of the external borders of the Schengen area and, therefore, to increase the effectiveness of border controls and prevent illegal immigration,” the Federal Council said.
This, along with effective and integrated management of the external borders “is also in Switzerland’s interest.”
Also, Switzerland will likely receive grants from the BMVl of around 50 million francs to be allocated mainly to the establishment of new EU information systems (EES Entry and Exit System, and European Travel Information and Authorization System ETIAS) on its territory.
Furthermore, it is planned to use part of these resources to finance the expansion of the border control infrastructure at Zurich Airport.
Benefits for Switzerland
There is no doubt that Swiss citizens benefit greatly from access to the Schengen zone.
Simply put, it allows anyone who is in Switzerland legally to enjoy hassle-free travel to and from the 26 other Schengen states, visa time limits permitting.
Travellers arriving into Switzerland for the first time from a non-Schengen state like the UK or the US will have to queue up to have their passports checked, but after that they can move freely.
That means Swiss citizens, EU nationals, non-EU international residents in Switzerland, tourists, exchange students or people travelling for business can travel on to another Schengen member state, perhaps neighbouring France or Germany by car or train, without having to show their passports. (Although occasionally checks are brought back.)
That is a definite ‘plus’ for anyone who travels within Europe. Due to Switzerland having so many land borders with other Schengen countries it would have been hugely problematic not to join.
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