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EUROPEAN UNION

Swiss face deadline on EU ties

Switzerland faces a high-stakes decision Friday on its future ties with the European Union, with Brussels taking a hard line on economic links unless Bern agrees to key demands.

Published: 7 December 2018 14:07 CET
Swiss face deadline on EU ties
william87/ / depositphotos

The EU wants Switzerland to agree to a broad deal that would simplify relations, currently defined by a messy set of some 120 bilateral accords. 

The draft agreement on the table covers an array of issues, notably free movement of people, and generally foresees Switzerland integrating EU rules.

Seeking leverage over Bern, the EU has threatened to not renew the so-called 'equivalence' status of the Swiss stock exchange unless the broader deal is agreed.

Equivalence allows EU-based trading platforms to buy and sell Swiss stocks. If Brussels takes that away, the Swiss exchange faces a huge hit from trade volume losses.

“The Federal Council will decide the next steps on European policy today,” a spokeswoman for the Swiss executive branch, Noemie Charton, told AFP in an email.

There has been speculation that Switzerland may try to buy more time, possibly by suggesting that agreement on a wider bilateral pact would be easier to conclude once the Brexit turmoil has eased.

But EU spokeswoman Mina Andreeva said “the negotiations are over.”

“The ball is the Swiss court. The Federal Council will speak today. We will follow that closely,” she told AFP.

Switzerland last week activated a plan to protect its stock exchange should the EU revoke equivalence guidelines.

EU-based platforms that want to trade Swiss stocks like Nestle are now being forced to apply for registration with Swiss authorities.

The idea is to block platforms from trading Swiss stocks within the EU and thereby force traffic back to the Swiss exchange.

The Bern-Brussels relationship suffered a heavy blow in 2014 when Swiss voters backed a proposal calling for the re-introduction of migrant quotas, which could have limited the number of EU citizens working in Switzerland.

The Swiss parliament in 2016 approved a modified version of that plan in an attempt to mend fences.

Polling shows that Swiss voters remain deeply divided about how closely to align with the EU.

Whatever the government decides on Friday will likely be put to a referendum, as part of Switzerland's direct democracy system, creating further uncertainty on a final deal. 

 

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.
 

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