Twelve, like the labors of Hercules, are the areas affected by the negotiating mandate concluded between Switzerland and the European Union. Here is a summary of the results for each dossier.
INSTITUTIONAL ISSUES: Institutional rules, valid for all participants in the EU internal market, ensure that internal market agreements are regularly updated and operational. From now on, the institutional elements will be integrated, sector by sector, into the various Swiss-EU internal market agreements.
Switzerland will decide independently on any developments in EU law. The referendum will continue to be possible. In case of non-implementation, the EU may take proportionate compensatory measures in the agreement in question or in another internal market agreement. Exceptions to the dynamic adoption requirement are defined.
The issue of dispute resolution will continue to be dealt with in the first instance within the Joint Committee. In case of disagreement, the dispute will be submitted to a joint arbitral tribunal. If the dispute raises an issue relating to the interpretation of EU law, the Court of Justice of the European Union will rule on the interpretation of that law.
STATE AID: The EU monitors state aid granted by its members. They are prohibited unless there are exemptions. In Switzerland, the Confederation, cantons and municipalities must notify the supervisory authority of any new state aid that exceeds a certain threshold and is not subject to a derogation. The supervisory authority issues a non-binding opinion. If this advice is not respected, the supervisory authority will take the matter to a Swiss court.
The obligation to monitor state aid will be limited to agreements on land transport, electricity and aviation. The agreement provides exceptions for public services. For example, public transport operating exclusively on Swiss territory does not fall within the scope of state aid for land transport. In the Electricity Agreement, State aid rules provide for specific agreements. The main existing state aid in this sector will be maintained. Switzerland will have a five-year transitional period to introduce the monitoring system.
IMMIGRATION: The Directive on the free movement of EU citizens has been adopted in a “tailor-made” version for Switzerland. It is linked to a protection mechanism that includes exceptions – in particular regarding the expulsion of foreign criminals – and guarantees. The package is completed by a specific escape clause, which can be invoked in the event of serious economic or social problems.
A minimum period of five years now applies to all EU citizens before being granted a residence permit. Cross-border workers will continue to receive a specific residence permit. Self-employed workers will also have to register.
Switzerland is also committed to treating EU students on an equal footing with Swiss students with regards to tuition fees.
WAGE PROTECTION: Switzerland has adopted the European directives on posted workers. Companies will have to pay posted workers a wage equivalent to that applied in Switzerland. Monitoring will continue to be carried out by mixed committees (trade unions and employers) and the cantons. The notice period for foreign companies has been reduced from 8 to 4 days for high-risk sectors. For other sectors, notice is required before the start of work. Where applicable, a financial guarantee must be paid.
Under the non-regression clause, Switzerland must not adopt developments in European legislation on posted workers that weaken the Swiss level of protection regarding pay and working conditions. This clause guarantees the Swiss level of wage protection. As regards cost compensation, Switzerland will be able to exploit “the margin of maneuver offered by the EU directive to reduce the risk of distortion of competition as much as possible”.
LAND TRANSPORT: Switzerland managed to obtain a number of additional points during the negotiations. In particular, it succeeded in ensuring the legal certainty of Swiss instruments for planning and securing railway lines compared to the EU. It also obtained the right to continue to directly award contracts for cross-border rail transport on Swiss territory, without having to launch public tenders.
For its part, Switzerland has adopted EU rules on assistance for cross-border land transport. Public service is exempt.
Switzerland is ready for a controlled opening of international rail passenger transport. Foreign companies will be able to offer independent cross-border rail services to Switzerland, provided they obtain a rail line. The same goes for Switzerland. Foreign companies must respect Swiss working conditions and wages when operating in Switzerland.
Furthermore, the fixed timetable priority for public transport in Switzerland was maintained. Foreign railway companies can only offer international connections with Switzerland if railway lines are available outside of those reserved for domestic fixed-time passenger traffic and freight transport on the part of the route within Switzerland. In exchange, EU countries will be able to give their companies priority on their networks.
At the time of drawing up the timetable, international passenger traffic will have priority in the allocation of remaining train path capacity in Switzerland. The allocation of train paths will remain a Swiss responsibility. Foreign companies may be required to supplement tariffs. If foreign companies transport passengers from one place to another in Switzerland, they must respect the country's tariff system.
In cross-border road transport, some exceptions are protected, such as the traffic ban for heavy vehicles over 40 tonnes and the ban on night and Sunday driving for trucks. The Alpine Initiative is supported. Finally, the EU accepts the heavy vehicle tax (HTTCP), with defined maximum rates.
MUTUAL RECOGNITION AGREEMENTS (MRAs): Institutional elements will be included directly in the MRA, which will ensure that the agreement, which is important for exports, is regularly updated in the future. Switzerland will be able to participate in EU market surveillance of measures ensuring the safety and quality of products. Exceptions relating to pre-packaging will be retained. Switzerland and the European Commission will discuss the implementation of the MRA, taking into account the needs of economic actors.
AIR TRANSPORT: Switzerland has succeeded in obtaining the exchange of cabotage rights, which gives Swiss airlines the right to offer domestic flights in any EU country. The same goes for European carriers.
The Confederation also ensured the participation of Swiss operators in SESAR 3 (Single European Sky ATM Research) as part of Switzerland's association with Horizon Europe. The objective of this research program is to modernize air navigation services in Europe and promote market adoption of new cutting-edge technologies.
AGRICULTURE: Regarding agricultural products, 50% of Swiss exports go to the EU and 74% of imports come from the EU. Existing exceptions under the current agricultural agreement (e.g. the ban on livestock transit) have been retained. New exceptions have been negotiated, particularly in the areas of protection of animals and genetically modified organisms. The obligation to indicate the country of origin of food products distributed in Switzerland was maintained.
Switzerland and the EU remain free to pursue their agricultural policies as they see fit. Current customs protection (including customs duties and tariff quotas) will be maintained. Switzerland will have the desired access to the European Food Safety Authority and will be integrated into the EU authorization system for plant protection products.
ELECTRICITY: The electricity agreement allows Swiss players – such as Swissgrid – to participate on an equal and unhindered basis in the European internal electricity market, trading platforms and other European bodies in the sector. Furthermore, all Swiss end consumers will be able to freely choose their electricity supplier.
With regard to security of supply, neighboring countries will not be able to limit border capacities towards Switzerland, even in the event of an energy crisis. The agreement establishes mutual cooperation in the field of renewable energy, without committing Switzerland to adopt EU environmental legislation.
HEALTH: The negotiated agreement guarantees full access to EU health security mechanisms and the European Center for Disease Prevention and Control. It strengthens the tools to ensure better protection of the Swiss population through increased early warning and reaction capacity in the field of epidemiological surveillance.
The agreement focuses on health security. However, there is the possibility of extending it to other health sectors, provided this is in the interest of both parties. As part of the EU's multiannual programme, Switzerland will only participate in the area of “crisis preparedness”.
EU PROGRAMS: A new agreement associates Switzerland with EU programs for education, research and innovation. It covers participation in Horizon Europe, Euratom, the ITER research infrastructure and the Digital Europe programme, Erasmus and EU4Health.
Future participation in other EU programmes, for example in the fields of culture and space operations, is also open.
COHESION FUND: The agreement creates a legally binding mechanism for Switzerland's regular contributions. The duration is seven years: the amount of the first contribution for the period 2030-2036 is 350 million francs per year. The details of each contribution will be defined in a memorandum of understanding.
Future regular contributions to some EU member states will require the creation of a new legal basis in Switzerland, which will be the subject of a draft law. For the period between the end of 2024 and the entry into force of the package, Bern will provide additional financing, payable at the same time as the first contribution.
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