Common Understanding between the EU and Switzerland: Decisions and Factsheets

What is the Common Understanding?

The Common Understanding is a more than 12-page long document, which has been agreed by representatives of the Commission and of the Federal Council. It outlines a broad package of measures that would modernise and deepen the EU-Swiss bilateral relationship. The Common Understanding will serve as a basis for the Commission’s work on a Recommendation for a Council Decision authorising the opening of the negotiation with Switzerland.

What is the timeline of the negotiations?

The Swiss Federal Council decided on 15 December to consult its Parliament and its Cantons on a draft negotiating mandate. The Commission will mirror that decision and present a Recommendation for a Council Decision authorising the opening of the negotiation with Switzerland to the Council of the European Union It will then be up to the Council to adopt the Decision. There is no legal timeline for the Council’s work. Once the negotiations are launched, it is in the EU’s and Switzerland’s interest to advance the main elements quickly. The objective stated in the Common Understanding is to finalise negotiations in 2024.

Does the Commission intend to negotiate a new agreement, similar to the Institutional Framework Agreement in the past? If not, what changes now?

The Common Understanding does not provide for a single framework agreement as was envisaged in the past. We would like to agree on institutional modules that would be replicated in agreements related to the internal market. In addition, we would like to conclude an agreement that would provide the basis for Switzerland’s contribution to social and economic cohesion in the EU.

Will all the elements of the package need to be pursued in parallel? Or will it be possible to advance some more quickly?

The Commission will propose a single set of negotiating directives that covers all the elements that we would like to negotiate as part of a broad package, all of which should be pursued in parallel.

What concrete impact would an agreement have on the rights of EU citizens?

The solutions identified in the Common Understanding address the long-standing concerns of the EU about the rights of EU citizens. They would strengthen the right of EU citizens and their families to move and reside and work in Switzerland. The conditions under which they can acquire permanent residence will be improved. Non-discrimination between Member States and reciprocity will be at the heart of the future agreement on the free movement of persons. The Common Understanding also provides exceptions to the dynamic alignment of Switzerland to EU law in three areas, namely the free movement of persons related to expulsions, rights of permanent residence and identity cards, as well as two safeguards as regards current measures on the right of residence of persons not benefitting from permanent residence and the obligation for (a) EU self-employed to notify their establishment in Switzerland and (b) Swiss employers to notify taking up of employment by their workers.

Would Swiss flanking measures to the Posting of Workers Directive be abolished?

No. The approach set out in the Common Understanding aims to ensure that Swiss controls of the posting of workers are justified, non-discriminatory and proportionate. The controls will ensure that the freedom to provide services up to ninety working days per calendar year is respected.

Will Switzerland have to align on EU legislation weakening the protection of posted workers?

In the highly unlikely case that the EU would amend or introduce legislation meaningfully weakening or reducing the level of protection of posted workers with regard to the terms and conditions of employment, Switzerland would not be bound to align on these changes.

Why does the EU want agreements on electricity, food safety and health?

An agreement on electricity would integrate Switzerland’s electricity grid even more tightly in the EU’s own electricity grid. It will foster electricity trade, ensure grid stability and security of supply, increase social welfare, and facilitate the transition to a net zero energy system. An agreement on food safety will contribute to establishing an EU-Switzerland food safety area. An agreement on health will reinforce EU-Switzerland cooperation in an area of great importance to Swiss and EU citizens alike.

Will the negotiations help restore a level playing field between EU and Swiss companies?

As a matter of fairness, Swiss companies participating in the EU internal market must abide by the same rules and obligations as EU companies. State aid rules are particularly important in establishing a level playing field. They should be included in the existing agreements on air and land transport, as well as a new agreement on electricity.

To which Union programmes will Switzerland be associated?

The Common Understanding confirms both sides’ interest in Switzerland’s participation in programmes related to research and innovation, education, training, youth, sport and culture. In line with that, the future association agreement will cover at least the following six programmes: Horizon Europe, Euratom Research & Training, ITER, Digital Europe, Erasmus+ and Copernicus. Exploratory talks in this respect have begun. Formal negotiations on Switzerland’s prospective association to these programmes will start as part of a broad package, once both sides have the mandates necessary to negotiate all elements of that package.

Are transitional arrangements foreseen for research programmes?

Yes, under the European Research Council (ERC) calls 2024, legal entities established in Switzerland will have the possibility to apply for ERC grants once the negotiations start. Moreover, the transitional arrangement will be extended to calls under the Horizon Europe work programmes 2025 provided that the association agreement on Union programmes has been initialled. Swiss entities will receive funding once the association takes effect.

Once associated, what is the scope of Switzerland’s association to Union programmes?

The exact scope of association for each programme will be defined during the negotiations.

Will the negotiations have an impact on the EU-Switzerland Agreement on Conformity Assessment, known as Mutual Recognition Agreement (MRA)?

The institutional provisions outlined in the Common Understanding would be inserted into the MRA, as well as into bilateral agreements in the fields related to the internal market in which Switzerland participates. Those institutional provisions would provide for, among others, the dynamic alignment of the Swiss legislation with the relevant part of Union acquis and dispute settlement with a role for the Court of Justice. Once these provisions are in place, they should enable updating the MRA as necessary.

What is the purpose of the agreement on Switzerland’s contribution to social and economic cohesion in the EU provided for in the Common Understanding? What would this entail?

The Common Understanding confirms both sides’ intention to create a legal basis for Switzerland’s permanent and jointly agreed contribution to social and economic cohesion in the EU. Such a contribution would be a natural consequence of Switzerland’s access to the internal market.

More Information

Press release on the Common Understanding with Switzerland