¶ Dispatch on the Switzerland-EU Package (Bilateral Agreements III)
Date: March 13, 2026
Location: Federal Palace Media Centre, Bern
Speakers: President of the Confederation Guy Parmelin, Federal Councillor Ignazio Cassis, Federal Councillor Beat Jans
Moderation: Vice-Chancellor
Note: Key statements based on the press conference transcript
On March 13, 2026, the Federal Council presented the dispatch on the Switzerland-EU package (Bilateral Agreements III) to Parliament at a press conference in Bern. The three Federal Councillors highlighted the package of agreements from different perspectives: President of the Confederation Guy Parmelin provided an overview of the economic and sectoral aspects, Federal Councillor Ignazio Cassis explained the historical path and institutional solutions, and Federal Councillor Beat Jans presented the changes regarding the free movement of persons and the legislative implementation requirements.
¶ Package approach and strategic rationale
- Following the failure of the institutional framework agreement (InstA) in May 2021, the Federal Council examined five options: status quo, modernised free trade agreement, EEA accession, EU accession, and continuation of the bilateral path.
- The Federal Council chose the continuation of the bilateral path as the only way to maintain a balanced economic and political room for manoeuvre.
- The EU is by far Switzerland's most important trading partner, accounting for approximately 60% of goods trade. Every day, goods and services worth well over one billion Swiss francs cross the borders.
- In February 2022, the Federal Council decided to continue developing the bilateral path through a package approach. Negotiations were completed at the end of 2024.
- The consultation (June to October) showed broad support but called for clarifications and improvements, prompting the Federal Council to make adjustments.
- The Federal Council considers the criteria of the negotiating mandate to be fulfilled.
¶ Economy and MRA
- The Mutual Recognition Agreement (MRA) covers 73% of industrial exports to the EU.
- It reduces administrative burdens and strengthens competitiveness, particularly for small and medium-sized enterprises (SMEs).
- Wage protection is not weakened. In addition to the three-tier protection concept negotiated with the EU, 14 domestic policy measures were developed in consultation with the cantons and social partners.
- The objective was achieved without restricting labour market flexibility.
- State aid rules only apply to three internal market agreements: electricity, land transport, and air transport.
- Public services are not affected.
- Aid monitoring is carried out by the competent Swiss authorities and courts.
- The association agreement in the fields of education, research, and innovation was signed as early as autumn 2024.
- It is provisionally applied retroactively from 1 January 2025, as an early component of the package.
- This agreement is essential for Switzerland as a hub for research, innovation, and economic activity.
¶ Transport (land and air)
- Land transport: The agreement provides Swiss companies with significant participation in the European market for road and rail transport. The controlled opening of international passenger rail transport takes place under Swiss conditions: providers must accept Swiss wages, the regular-interval timetable, and general and half-fare travel passes. Only trucks with a maximum weight of 40 tonnes may operate. The heavy vehicle fee (LSVA) and the night and Sunday driving ban are maintained. The policy of shifting freight from road to rail is secured.
- Air transport: Swiss airlines can offer additional flights within EU member states. EU airlines can offer domestic flights within Switzerland. Passenger rights are strengthened.
- The new agreement in the electricity sector strengthens security of supply.
¶ Food safety and health
- New agreements protect consumers against cross-border health risks.
- Switzerland retains its sovereignty in agriculture. The agricultural part of the agreement is excluded from the dynamic adoption of law. The agreement has no impact on border protection.
- The bilateral path comprises three steps: Bilateral Agreements I (2002), Bilateral Agreements II (2008), and now Bilateral Agreements III.
- The decision of 26 May 2021 to discontinue negotiations on the institutional framework agreement did not mark the end of the bilateral path. It signalled the need to find a more sustainable balance -- stable and predictable relations with the EU, while respecting Switzerland's institutional and democratic specificities.
- On 23 February 2022, the Federal Council adopted a new strategy based on the idea of a Switzerland-EU package.
- Exploratory talks took place from March 2022 to October 2023, negotiations from March to December 2024.
- More than 240 meetings were held with the EU, more than 108 meetings under the leadership of Federal Councillor Cassis in Switzerland.
- The defence of Swiss interests in Brussels.
- The inclusion of cantons, social partners, the business community, and Parliament in Switzerland. Every step was explained, documented, and discussed.
- The institutional solutions are embedded in the individual market participation agreements and take account of Switzerland's specific interests.
- Objective: a level playing field for all market participants -- legal certainty and economic predictability.
- Swiss companies are treated in the same way as their European partners and competitors.
- "Dynamic does not mean automatic." Adoption only takes place after a conscious and informed decision by Switzerland.
- Every new relevant EU legal act is examined. Switzerland then decides sovereignly whether to adopt it -- as it has already been doing for nearly 20 years under Schengen/Dublin.
- Parliament remains competent and the people retain their right to a referendum. Dynamic adoption does not curtail any democratic right.
- Switzerland can participate in advance in the development of European rules that affect it (known as decision-shaping).
- In the event of a dispute, a panel of arbitration composed on a parity basis of Swiss and European judges decides.
- The Court of Justice of the European Union (CJEU) does not decide disputes between Switzerland and the EU. It may only be consulted on the interpretation of EU law if the arbitration panel considers this necessary for its decision.
- Geopolitical tensions are increasing, power dynamics are shifting, and the rules of international trade are evolving rapidly.
- Having stable and reliable relations with one's neighbours is not a political luxury but a strategic necessity for Switzerland's prosperity, security, and future.
- After 18 years of discussion and 13 years of negotiation, the objective has been achieved: Switzerland-EU relations are stabilised and developed.
¶ Initiative "No to a Switzerland of 10 million"
- The package does not resolve all challenges in relations with neighbours. Further debates lie ahead, notably the popular vote on 14 June 2026 on the initiative "No to a Switzerland of 10 million," whose rejection is recommended by the Federal Council and Parliament.
- Switzerland, located at the heart of Europe, has been concluding treaties with its neighbours for centuries to secure its sovereignty and room for manoeuvre.
- The bilateral path with the EU is part of this history -- tailor-made to suit Switzerland's interests.
- Switzerland may not have a royal road, but it has a "royal road of tailor-made treaties." Bilateral Agreements III consistently continues this path.
- 15 cantons border the EU, more than half of Switzerland's population lives in a border region.
- Cross-border projects in the areas of transport, tourism, environmental protection, knowledge exchange, policing, rescue, and law enforcement require not only neighbouring regions (Baden-Württemberg, Grand Est, Lombardy) but ultimately also Berlin, Paris, and Rome -- as the decisive signature often comes from there.
- Trade with neighbouring regions is economically even more important than trade with the United States.
- Since the introduction of the free movement of persons, Switzerland's economic output has grown by more than 50%.
- Switzerland needs skilled workers from EU countries: doctors, nurses, construction workers, service employees. Already today, more people are retiring than entering the labour market.
- Immigration remains work-oriented: only those with employment may come with their families. Those without employment must have sufficient financial means.
- Expulsions on criminal grounds remain possible.
- The notification procedure for economically motivated short-term stays is being extended.
- The permanent residence right after five years is open only to economically active persons and their families. If social assistance is claimed for six months or more, the period is extended.
- At the earliest seven years after the entry into force of Bilateral Agreements III, someone can assert this right.
- For economically active persons with a settlement permit (C permit), the permanent residence right is of little interest.
- 4,000 to 20,000 applications per year are plausible in the long term -- not the feared 100,000.
- Reciprocity is often overlooked: approximately 460,000 Swiss citizens in the EU can also apply for permanent residence rights.
- The safeguard clause has been specified and "significantly improved" from Switzerland's perspective.
- In future, Switzerland will be able to activate the safeguard clause autonomously in the event of serious economic and social problems and take measures. Today, Switzerland needs the EU's consent for this.
- Within the framework of Bilateral Agreements III, 94 EU legal acts of a legislative nature are relevant for Switzerland.
- The dispatch comprises 3 new federal laws, the substantial amendment of 15 federal laws, and minor, formal adjustments to 21 laws.
- The domestic implementation amounts to approximately 170 pages -- a manageable effort, "far removed from the reported 8,000 laws."
- The Federal Council proposes an optional treaty referendum to Parliament. The conditions for a mandatory referendum are not met.
- As a reminder: in 2012, 75% of voters and all cantons said no to the demand that international treaties must be submitted to the people and cantons.
- In an uncertain world where the law of the strongest seems to be the only rule, a stable relationship with the most important partners is all the more important.
- With Bilateral Agreements III, Switzerland secures its democracy, wage protection, and public services, and remains capable of acting and sovereign at the heart of Europe.
Chief negotiator Patric Franzen outlined the essential changes compared to the draft put out for consultation:
- Decision-shaping (participation): Full transparency for the public -- everything in the decision-shaping process will be publicly accessible. Special information for regular consultation participants and associations. Special participation of specialised parliamentary committees. Cantons are to be at the table when their competences are affected (an agreement is being negotiated).
- Electricity agreement: Special solution for energy-intensive SMEs so they can temporarily remain in the basic supply. Three-year transitional period for the minimum remuneration of solar power from photovoltaic installations below 150 kilowatt-hours. Joint interpretation with the EU that water concessions are not affected by the agreement.
- State aid: Strengthened cantonal participation in the composition of the state aid chamber.
- Safeguard clause: Greater involvement of the cantons.
- Universities: Full federal coverage of tuition fee shortfalls for four years.
- Wage protection: Adjustment of measure 14 (dismissal protection for employee representatives).
- Land transport: Ensuring that Swiss social standards apply in international passenger transport.
- Coalition: More "Swissness" -- greater consideration of Swiss interests and actors in coalition projects.
- Agriculture and food safety: Border protection provisions specified. Stunning requirement for slaughter clarified.
- Erasmus+: Broad support in the consultation; the Federal Council proposes the corresponding funds to Parliament.
- 15 cantons and 7 parties spoke in favour of the optional referendum. Only the SVP and EDU were opposed.
- The Federal Council relied on the responses of regularly invited consultation participants and followed their majority.
- The organisation Autonomie Suisse presented a study claiming that per capita GDP without the bilateral agreements would be barely lower by 2045.
- The Federal Council relies on other studies (BAK Economics, BSS) reaching markedly different results and is convinced that the bilateral path has contributed significantly to Switzerland's strong economic position today.
- Parliament is free to amend all laws: "The Federal Council proposes, Parliament disposes."
- The Federal Council will accompany parliamentary work and draw attention to treaty compliance, but Parliament and the people retain full decision-making freedom.
- President of the Confederation Parmelin commented on the announcement of Section 301 and First Labor investigations by the United States, which affect approximately 15 countries, including all EU member states, Japan, and South Korea.
- Switzerland's position is clear: negotiation on the basis of the existing Joint Declaration. If demands go beyond this, Switzerland will coordinate with the other affected countries.
[1] Federal Council Press Conference of March 13, 2026 -- Video (YouTube)
[2] FDFA: Switzerland-EU Package
[3] Federal Council Press Release of March 13, 2026