Switzerland’s bilateral approach with the European Union (EU) has proven itself: the EU is our main trading partner. We also share many cultural, social and political values. Switzerland owes its prosperity, among other things, to its participation in the European internal market and its fruitful collaboration with the EU in key areas for Switzerland, such as research and innovation.
Swiss SMEs urgently need secure relations with the EU
In particular, export-oriented small and medium-sized enterprises (SMEs) need stable and functional relations with the EU for their planning and future investments in the Swiss economic center. This is what emerges from the SME barometer published by the NZZ: among the 303 SME managers surveyed, 46% cite the uncertainties surrounding relations with the EU as one of their three biggest geopolitical and macroeconomic concerns, i.e. Around 10% more than in 2023. More than two in three SMEs surveyed have hired employees from the EU over the last three years, three quarters of them for highly qualified positions. The main reason given by 48% of SMEs is that they searched in vain for these specific qualifications in Switzerland. For 57% of companies, the free movement of people with the EU is decisive.
The EU internal market is essential for our SMEs
The nearly 600,000 SMEs play a fundamental role for the Swiss economy: they represent 99% of all businesses in Switzerland and two thirds of jobs. If the current negotiations on the development of the bilateral path with the Bilateral III package were to fail, Swiss SMEs would be particularly affected. SMEs in fact represent 42% of the volume of Swiss exports, while this share is only 22% in Germany and 23% in France1. Therefore, the end of participation in the European internal market could threaten the existence of certain Swiss SMEs focused on exporting. Unlike medium and large companies, these cannot simply set up a subsidiary in the EU and sell their products through it. It would be difficult for them to bear the costs generated. It is also more difficult for an SME to conquer markets outside Europe. The commercial risk and the costs generated are much greater for it than for a multinational. The conclusion of Bilateral III will guarantee participation in the internal market for exporting companies in Switzerland. The development of the bilateral route with the EU is therefore absolutely decisive for the success of Swiss SMEs.
