Read news from:
Austria
SHARE
COPY LINK

EUROPEAN UNION

Swiss residents ‘biggest winners’ from EU Single Market

A new study into the economic benefits of the EU Single Market shows why the Swiss political establishment is so keen on ensuring relations with Brussels remain amicable.

Published: 9 May 2019 09:56 CEST
Swiss residents 'biggest winners' from EU Single Market
Best of enemies? File photo: Depositphotos

The study by Germany’s Bertelsmann Stiftung (foundation) looked at the economic impact of the EU’s common market on real incomes in 250 European regions in 2016.

It found that the Single Market lifts the income of European citizens by an average of €840 (958 Swiss francs).

The study also found that people in Switzerland profited most from the Single Market, with per capita income gains of €2,914 (3,320 Swiss francs) a year. This was just ahead of Luxemburg (€2,814) and some way ahead of third-placed Ireland (€1,894).

Read also: This is how much people in Switzerland earn

By contrast, those income gains were just €763 in Italy, €589 in Spain and €401 in Greece.

Broken down into regions, the story is even better for Switzerland. Of the top 10 regions in terms of the impact of the Single Market on incomes, seven are Swiss.

In Zurich, which comes top in the regional rankings, the boost to earnings is €3,592 – thanks to the city's status as a financial hub. In north-western Switzerland the figure is also a very high €3,092 and in the Lake Geneva region it is €2,829.

The study also shows that the Swiss economy as a whole is 3.4 percent more productive thanks to the EU Common market. Again, that is one of the highest rates in Europe – only Luxemburg does better with a productivity boost of 3.7 percent.

Fraught relations between Bern and Brussels

The Bertelsmann Stiftung study comes at a time when Switzerland and the EU are engaged in a long-running battle over the future of bilateral relations.

Read also: What you need to know about the new draft Swiss–EU deal

A draft deal on future relations is currently on the table. Brussels says this deal is non-negotiable but the Swiss government, which backs the deal in principle, has been dragging its heels on signing off on the document because of internal divisions over issues including whether Switzerland’s battery of wage protection measures will be affected.

Conservative forces within Switzerland also dispute resolution measures outlined in the deal constitute an attack on Swiss sovereignty.

In such a context, this new study from the Bertelsmann Stiftung should be music to the ears of those who support the proposed deal on bilateral relations with the EU.

General trends in Europe

The study identifies two main European trends in terms of the benefits of the common market.

The first is that the “biggest winners are small countries that trade a lot and have competitive economies”, as study co-author Dominic Ponattu puts it.

The second is that there is a serious gap between nations at the core of Europe and those countries in southern and eastern Europe.

To fight these inequalities, the study authors recommend boosting exports in services and making targeted investments in the digital infrastructure and innovation capacity of countries that are currently lagging behind.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
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.

Published: 24 July 2024 14:15 CEST
Updated: 31 July 2024 14:08 CEST
Why is Switzerland spending 300 million francs to protect Schengen borders?

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.
 

SHOW COMMENTS