Source: Dispatch 26.023, Chapter 1.1 (pp. 34--38) PDF: Download full text (6.9 MB)
Switzerland and the world are experiencing a time of crumbling certainties. Geopolitical fragmentation, great power competition and economic protectionism characterise the environment. For Switzerland, situated at the heart of Europe, stable relations with the EU are of central importance -- the EU is, with approximately 60 per cent of trade in goods, by far the most important trading partner.
The world is becoming more unstable. Trade policy tensions, armed conflicts, climate change and growing public debt characterise the present. Russia's attack on Ukraine in 2022 brought war back to Europe. A new era of power politics is dawning, in which great powers increasingly act according to the law of the strongest.
Switzerland is in many respects in a better position than other countries, but it feels the global trends. It must exploit its undeniable strengths and maintain stable relations with the EU.
The EEA Agreement was narrowly rejected in a popular vote on 6 December 1992 (50.3% No; cantons: 16:0 No). The three other EFTA states -- Iceland, Liechtenstein and Norway -- joined the EEA.
As the 1972 Free Trade Agreement was no longer sufficient, Switzerland negotiated sectoral agreements with the EU. On 21 June 1999, seven agreements were concluded: free movement of persons, technical barriers to trade (MRA), public procurement, agriculture, research, air transport and land transport. On 21 May 2000, the electorate approved the agreements with 67.2 per cent.
Nine further agreements followed, including Schengen/Dublin, taxation of savings, combating fraud, statistics and education/youth. On 5 June 2005, the electorate approved the Schengen association with 54.6 per cent.
From 2010, Switzerland and the EU examined an institutional framework. In 2018, the EU declared the negotiations concluded. Switzerland did not yet see a satisfactory solution for free movement of persons and state aid. On 26 May 2021, the Federal Council decided not to sign the agreement text.
The EU declared that without regulation of institutional questions and state aid as well as without a permanent Swiss cohesion contribution, it would not conclude new agreements and would only update existing ones to a limited extent. The continuation of the bilateral path was no longer assured.
[1] Dispatch 26.023, Chapter 1.1 (pp. 34--38)
[2] FDFA: Switzerland-EU package
[3] Federal Council Report "Assessment of the situation of Switzerland-EU relations", 9 June 2023