Summary: Since the termination of negotiations on the Institutional Framework Agreement (InstA) in May 2021, the existing bilateral agreements have been gradually losing their effectiveness. This process -- referred to as "erosion" -- concretely affects the mutual recognition of medical devices, access to EU research programmes and other areas. The liberal think tank Avenir Suisse estimates the costs at CHF 1.7 billion one-off and CHF 1.3 billion annually.
The bilateral agreements between Switzerland and the EU are static treaties: they reflect the legal status at the time of signature. When the EU develops its regulation further -- which it does continuously -- a growing discrepancy arises between current EU law and the content of the agreements [1].
As long as the Joint Committees regularly update the agreements, market access is maintained. After the termination of the InstA negotiations in May 2021, however, the EU blocked the update of several agreements. It linked progress on sectoral agreements to a resolution of the institutional questions [1].
The most severe example of erosion concerns the Agreement on Mutual Recognition of Conformity Assessments (MRA). Since 26 May 2021 -- the day the InstA was terminated -- the MRA chapter on medical devices (in-vitro diagnostics and other medical equipment) has not been updated [2].
Concrete consequences:
The Swiss medtech industry employs around 63,000 people and exports products worth over CHF 18 billion, a significant portion of which goes to the EU [2].
After the InstA termination, Switzerland was not accepted as an associated state in Horizon Europe -- the world's largest research funding programme (EUR 95.5 billion, 2021-2027). Swiss researchers can participate in certain areas but have no access to ERC Grants (European Research Council) as principal investigators and cannot coordinate projects [1].
Switzerland has not been fully participating in the EU education programme Erasmus+ since 2014. The trigger was the acceptance of the Mass Immigration Initiative on 9 February 2014, which the EU interpreted as a signal against the free movement of persons. The Federal Council has since funded a national replacement programme ("Swiss-European Mobility Programme"), which does not offer the same scope or reach [1].
The think tank Avenir Suisse estimated the economic costs of erosion in a widely noted 2024 study [3]:
| Cost type | Amount | Timeframe |
|---|---|---|
| One-off costs (MRA transition, research downgrading) | CHF 1.7 billion | Already incurred |
| Annual recurring costs (double certifications, market access loss) | CHF 1.3 billion | Per year |
Note: Avenir Suisse is a liberal think tank funded by major Swiss corporations. The organisation supports the bilateral path and open markets. The figures cited should be read in this context. [3]
Not everyone shares the assessment that erosion is a serious problem. Critics argue:
The SVP regards the erosion as evidence that the bilateral path is fundamentally problematic and that Switzerland should reduce its dependence on the EU. It sees the Bilateral Agreements III as too high a price for remedying the erosion [4].
Autonomiesuisse and other organisations argue that Switzerland can bear the erosion costs and that the alternative -- close institutional ties to the EU -- would be more expensive in the long run through loss of sovereignty and regulatory costs.
In Parliament, Vincent Maitre (Centre/GE) asked as early as 2021 about the erosion of the bilateral path and pointed to the need for a comprehensive cost-benefit assessment of all options [5].
The EU deliberately used the erosion as leverage to move Switzerland towards negotiations on institutional questions. The non-updating of the MRA and the exclusion from research programmes were not merely technical consequences but also political signals [1].
At the same time, the EU emphasised that Switzerland could not use the bilateral path selectively: market access required the adoption of common rules. This position formed the starting point for the negotiations that began as exploratory talks in 2022 and culminated in the Bilateral Agreements III in 2026.
[1] FDFA (2026). Switzerland-EU Package (Bilateral III). Federal Department of Foreign Affairs. [Open Access]
[2] Swissmedic (2026). Mutual Recognition Agreement (MRA). Swiss Agency for Therapeutic Products. [Open Access]
[3] Avenir Suisse (2024). What the erosion of the bilateral agreements costs. Study. [Open Access] Note: Liberal think tank.
[4] Interpellation 21.4559: Erosion of the bilateral path Switzerland-EU (Maitre Vincent). Swiss Parliament. [Open Access]
[5] Postulate 24.3528: Value of the bilateral agreements for Switzerland (FDP Parliamentary Group). Swiss Parliament. [Open Access]
Last updated: March 2026