Digital Economy

Summary: The Bilateral Agreements III enable Switzerland's partial association with Digital Europe (EUR 7.5 billion budget). Switzerland gains access to Specific Objectives 1 (Supercomputing), 2 (AI), 4 (Digital Skills) and 5 (Digital Transformation), but not to Cybersecurity (SO 3) and Semiconductors (SO 6). The Federal Council confirms that the GDPR, Digital Services Act and Digital Markets Act do not need to be adopted.

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¶ The Advantage

¶ Digital Europe -- Programme for the Digital Transition

The EU programme Digital Europe (DIGITAL, 2021-2027) has a budget of EUR 7.5 billion and promotes the development of digital capacities across six Specific Objectives (SO) [12]:

The association with Digital Europe is part of the EU Programmes Agreement (EUPA), which was signed on 10 November 2025 [12]. The association applies retroactively from 1 January 2025 [12].

¶ Concrete Benefits of Programme Participation

Swiss companies, universities and research institutions gain [1][12]:

• Direct funding from the European Commission for digital projects
• Access to European Digital Innovation Hubs (EDIHs) -- networks supporting the digital transformation of SMEs
• Integration into European AI test centres and data spaces (SO 2)
• Access to high-performance computers of the EuroHPC Joint Undertaking (SO 1)
• Training and continuing education programmes in the digital domain (SO 4)

¶ What Is Not Adopted

The Federal Council has clarified in response to a parliamentary question that the major EU digital laws are not within the scope of the Bilateral Agreements III [7]:

"The Federal Council can confirm that the EU legal acts listed in question 1 [CSDDD, CSRD, GDPR, Digital Services Act, Digital Markets Act, PET Directive] do not fall within the scope of the Switzerland-EU package (Bilateral Agreements III) and therefore do not need to be adopted by Switzerland." [7]

This delineation is significant: Switzerland participates in the EU digital programmes but does not adopt the major EU regulatory laws in the digital domain [7].

¶ Locational Advantage

For Switzerland as a tech hub -- with centres in Zurich, Lausanne (EPFL), Basel and the "Crypto Valley" Zug -- access to European digital networks is a competitive factor [4]:

• Swiss startups gain access to EU funding programmes [12]
• Research cooperation with leading European universities is facilitated [1]
• Switzerland becomes more attractive as a location for international tech talent [4]

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¶ The Objections

¶ Costs and Dependency

Critics argue [2]:

• The programme costs are part of the parliamentary participation framework of 5.422 billion francs (together with Horizon Europe and Erasmus+) [12]
• Switzerland could also participate in digital standards bilaterally or through other channels (OECD, WTO) [2]
• The association creates a structural dependency on EU programme cycles and decisions [2]

¶ Limited Access

Switzerland does not gain access to all programme areas [12]:

• Cybersecurity (SO 3) remains excluded -- Switzerland must build its own capacities [12]
• Semiconductors (SO 6, Chips Act) are also not accessible [12]
• Whether the limited access reduces the programme's value is disputed [2]

¶ National Alternatives

Switzerland developed its own digital funding programmes during the years of non-association. Critics argue that these could be expanded and do not make EU programme participation strictly necessary [2].

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¶ Sources

[1] EDA (2026). Paket Schweiz-EU (Bilaterale III). Federal Department of Foreign Affairs. [Open Access]

[2] UNSER RECHT (2026). Bilaterale III -- um was geht es? Information platform. [Open Access]

[4] economiesuisse (2026). Bilaterale III: Den Schweizer Weg weitergehen. Dossier Politik. [Open Access] Note: Business umbrella organisation.

[7] Bundesrat (2025). Antwort auf Interpellation 25.4749: Geltungsbereich der dynamischen Rechtsübernahme. Curia Vista. [Open Access]

[12] SBFI (2026). Horizon-Paket 2021-2027. State Secretariat for Education, Research and Innovation. [Open Access]

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Last updated: March 2026