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EUROPEAN UNION

EXPLAINED: Why Switzerland WON’T be signing draft deal with EU

The diplomatic dance between Switzerland and the European Union continues with the Swiss government now announcing it won’t sign a draft deal on bilateral relations with Brussels in its current form.

EXPLAINED: Why Switzerland WON'T be signing draft deal with EU
File photo: Depositphotos

In a carefully calibrated statement designed to appease an impatient European Commission, the Swiss executive on Friday said it intended to “consolidate and further develop the bilateral approach”, describing this as the “cornerstone of Swiss–EU relations”.

However, in a letter (in French only) send to the European Commission, the Swiss government stressed it wanted “clarifications” on three key issues before it would sign the draft deal.

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

The three sticking points include possible threats to Swiss measures designed to protect the country’s high wages, concerns over the deal’s impact on state subsidies and a question mark over the EU’s Citizens’ Rights Directive.

This directive is not mentioned in the draft deal but there are concerns its future adoption by Switzerland could see the country having to pay higher welfare benefits to EU citizens living and/or working in the Alpine Country.

Deal not up for renegotiation

The draft “framework agreement” (here in French) deal has been on the table since last year. The product of years of negotiations, it aims to streamline and simplify the current clunky set of bilateral agreements that govern relations between Switzerland and the EU.

The deal is key to ensuring Switzerland continues to enjoy access to the all-important EU market.

Brussels has repeatedly stated the deal is not up for renegotiation and has threatened full Swiss access to the EU stock market if it doesn’t sign. The latest deadline given by Brussels was July.

Read also: How Switzerland's direct democracy system works

But rather than giving in to EU pressure to sign, the Swiss government in December last year launched a consultation process – considered essential in a country where compromise and consensus are integral to the political process.

This consensus building is also critical in the current context given that any possible deal with the EU will almost certainly be the subject of an EU referendum, and must therefore be palatable to at least 50 percent of voters.

And now, by seeking “clarifications” Switzerland has also dodged the accusation that it is seeking the “renegotiation” that is so dreaded by the EU.

The initial reaction from Brussels on Friday was positive with EU Commission Deputy Chief Spokeswoman Mina Andreeva stating the Swiss announcement was “an overall positive development”.

“The European Commission will study the letter carefully and we will reply in due course,” she tweeted.

A more detailed response is now expected in coming days.

Read also: Just one in five back crucial deal on current relations with EU

New October deadline?

In terms of a new time frame for signing the deal, Swiss newspaper Tages Anzeiger quoted sources in Brussels as saying responses on two of the issues raised by the government – the Citizen’s Rights Directive and state subsidies – could come as early as June 17th while the issue of wages protection measures could be looked at over the summer to give Swiss unions time to get on board.

Meanwhile, the EU wants Switzerland to guarantee in June that it will sign the draft deal by the end of October at the latest, the Zurich daily reported.

 

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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.

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.
 

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