Brussels, 20 December 2023
The Commission adopted today a Recommendation for a Council Decision authorising the opening of negotiations with Switzerland, together with a proposal for a negotiating mandate.
The adoption of the Commission Recommendation and the mandate proposal follows the conclusion of the exploratory talks on the future relationship between the EU and Switzerland, and the recent decision of the Swiss Federal Council to approve a draft negotiating mandate with the EU and launch consultations with its Parliament and cantons on its draft mandate.
The Commission’s proposal is based on the Common Understanding achieved after 18 months of exploratory talks with representatives of Switzerland’s Federal Council. The document sets out a broad and balanced package of measures that will support the modernisation and further development of bilateral relations.
A broad and balanced package
The Commission’s proposal for a mandate ensures the protection of the rights of EU citizens in Switzerland as well as fair competition between EU and Swiss companies operating within the internal market. It also addresses Swiss concerns through targeted exceptions to certain EU rules. The proposed negotiating mandate covers notably the following elements:
- Institutional elements to be inserted in existing and future bilateral agreements that would enable Swiss participation in the internal market;
- A way forward on the free movement of persons and posting of workers. It identifies ways to protect the rights of EU citizens and workers, including by ensuring non-discrimination between citizens of different Member States.
- An agreement that would form the basis for Switzerland’s regular contribution to social and economic cohesion in the EU;
- An agreement that would provide for the association of Switzerland to Union programmes, including Horizon Europe. The Common Understanding also provides a way forward for transitional arrangements that would enable Swiss entities to apply for grants under some Union research programmes before the negotiations are concluded.
The proposal builds on the existing mandates for agreements on electricity, health, food safety and the participation of Switzerland in the European Union Agencies for the Space Programme and for Railways.
Next Steps
The Commission Recommendation will serve as a basis for the Council’s work on the final mandate that will define the parameters for Commission’s engagement in the negotiations with Switzerland. The negotiations between the EU and Switzerland will start once both sides have their negotiating mandates approved according to their respective procedures.
Members of the College said:
President of the European Commission, Ursula von der Leyen said: “Switzerland and the EU are close friends and partners. We both wish to strengthen our ties and set our bilateral relations on an even stronger basis. Today’s decision on a proposal for a negotiating mandate brings us another step closer to opening negotiations on our future relationship.”
Background
The EU and Switzerland are close neighbours with strong cross border links. The EU is Switzerland’s first trading partner, while Switzerland is the fourth largest partner for the EU. About one and a half million EU citizens live in Switzerland, and around 450 000 Swiss citizens live in the EU. A few hundred thousand of EU citizens cross the border daily to work.
Since March 2022, the EU and Switzerland were engaged in exploratory discussions on the future of their bilateral relations. On 15 December 2023, the Commission and the Federal Council published the Common Understanding that provides a written record of the outcome of the exploratory talks. On the same day, Swiss Federal Council launched consultations with the Swiss Parliament on its draft negotiating mandate.
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Quote(s)
Switzerland and the EU are close friends and partners. We both wish to strengthen our ties and set our bilateral relations on an even stronger basis. Today’s decision on a proposal for a negotiating mandate brings us another step closer to opening negotiations on our future relationship.
Today we are proposing a draft mandate to the Council, fully in line with the common understanding reached with our Swiss counterparts. Thereby, the European Commission mirrors the decision by the Swiss Federal Council taken on Friday 15 December to consult its Parliament and cantons on a draft mandate on their side. This marks an important step for the relationship between the European Union and Switzerland. We end 2023 with encouraging momentum and I look forward to the next steps in 2024, once we both have the necessary mandates, to start negotiations on this promising agreement.
Source – EU Commission
Questions and Answers on the Commission proposal for a mandate for the negotiations with Switzerland
What is the relationship between the Commission mandate proposal and the Common Understanding published on 15 December?
The Common Understanding is a document agreed between representatives of the Commission and the Federal Council. It outlines a broad package of measures that would modernise and deepen the EU-Swiss bilateral relationship. The Commission’s proposal to the Council for a negotiating mandate is based on the Common Understanding.
What is the timeline of the negotiations?
The negotiations can only start once both sides obtain their negotiating mandates. The Commission proposal will serve as a basis for the Council’s work on a Decision authorising the opening the negotiations with Switzerland. There is no legal timeframe for the Council’s work. Once the Council adopts the final mandate, the Commission will be able to start formal negotiations with Switzerland, provided the Swiss side has also received a mandate according to its own procedures. 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 Commission mandate proposal does not provide for a single framework agreement as was envisaged in the past. It provides for negotiating institutional modules that would be replicated in agreements related to the internal market. In addition, the mandate proposal also includes 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 mandate proposal 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 mandate proposal is based on the Common Understanding. 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. The Commission mandate proposal fully respects the relevant provisions of the Common Understanding.
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?
While these three agreements are part of the package agreed in the Common Understanding, the Commission already has the mandate to negotiate them. 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. The mandate proposal foresees an association agreement that covers 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 mandate proposal provides for negotiating institutional provisions that would be replicated in bilateral agreements related to the internal market, including the MRA. 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 mandate proposal follows up on the text of the Common Understanding which 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.
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