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Switzerland Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...
is not a member state of the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
(EU). It is associated with the Union through a series of bilateral treaties in which Switzerland has adopted various provisions of
European Union law European Union law is a system of Supranational union, supranational Law, laws operating within the 27 member states of the European Union (EU). It has grown over time since the 1952 founding of the European Coal and Steel Community, to promote ...
in order to participate in the Union's single market, without joining as a
member state A member state is a state that is a member of an international organization or of a federation or confederation. Since the World Trade Organization (WTO) and the International Monetary Fund (IMF) include some members that are not sovereign states ...
. Among Switzerland's neighbouring countries, all but one (the
microstate A microstate or ministate is a sovereign state having a very small population or land area, usually both. However, the meanings of "state" and "very small" are not well-defined in international law. Some recent attempts to define microstates ...
Liechtenstein Liechtenstein (, ; ; ), officially the Principality of Liechtenstein ( ), is a Landlocked country#Doubly landlocked, doubly landlocked Swiss Standard German, German-speaking microstate in the Central European Alps, between Austria in the east ...
) are EU member states.


Trade

The European Union is Switzerland's largest trading partner, and Switzerland is the EU's fourth largest trading partner, after the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
,
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
and
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
. Export of goods from Switzerland accounts for 5.2% of the EU's imports; mainly chemicals, medicinal products, machinery, instruments and time pieces. In terms of services, the EU's exports to Switzerland amounted to €67.0 billion in 2008 while imports from Switzerland stood at €47.2 billion.


Treaties

Switzerland signed a free-trade agreement with the then
European Economic Community The European Economic Community (EEC) was a regional organisation created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisbo ...
in 1972, which entered into force in 1973. Switzerland is a member of the
European Free Trade Association The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four List of sovereign states and dependent territories in Europe, European states: Iceland, Liechtenstein, Norway and Switzerland. ...
(EFTA), and took part in negotiating the
European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Asso ...
(EEA) agreement with the European Union. It signed the agreement on 2 May 1992, and submitted an application for accession to the EU on 20 May 1992. However, after a Swiss referendum held on 6 December 1992 rejected EEA membership by 50.3% to 49.7%, the Swiss government decided to suspend negotiations for EU membership until further notice. These did not resume and in 2016, Switzerland formally withdrew its application for EU membership. Switzerland is also a member of
Schengen Area The Schengen Area ( , ) encompasses European countries that have officially abolished border controls at their common borders. As an element within the wider area of freedom, security and justice (AFSJ) policy of the European Union (EU), it ...
and
Single Euro Payments Area The Single Euro Payments Area (SEPA) is a payment integration initiative of the European Union for simplification of bank transfers denominated in euros. , there were 41 members in SEPA, consisting of the 27 member states of the European Union ...
(SEPA). In 1994, Switzerland and the EU started negotiations about a special relationship outside the EEA. Switzerland wanted to safeguard the economic integration with the EU that the EEA treaty would have permitted, while purging the relationship of the points of contention that had led to the people rejecting the referendum. Swiss politicians stressed the ''bilateral'' nature of these negotiations, where negotiations were conducted between two equal partners and not between 16, 26, 28 or 29, as is the case for EU treaty negotiations. These negotiations resulted in a total of ten treaties, negotiated in two phases, the sum of which makes a large share of
EU law European Union law is a system of Supranational union, supranational Law, laws operating within the 27 member states of the European Union (EU). It has grown over time since the 1952 founding of the European Coal and Steel Community, to promote ...
applicable to Switzerland. The treaties are: Bilateral I agreements (signed 1999, in effect 1 June 2002) # Free movement of people # Air traffic # Road traffic # Agricultural products # Technical trade barriers # Public procurement # Science Bilateral II agreements (signed 2004, in effect gradually between 2005 and 2009) # Security and asylum and Schengen membership # Cooperation in fraud pursuits # Final stipulations in open questions about agriculture, environment, media, education, care of the elderly, statistics and services. This strand established the Common Veterinary Area. The Bilateral I agreements are expressed to be mutually dependent. If any one of them is denounced or not renewed, they all cease to apply. According to the preamble of the EU decision ratifying the agreements: This is referred to as the " guillotine clause". While the bilateral approach theoretically safeguards the right to refuse the application of new EU rules to Switzerland, in practice the scope to do so is limited by the clause. The agreement on the
European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Asso ...
contains a similar clause. Bilateral agreements are managed by joint Swiss-EU committees. They are responsible for ensuring that the agreements run smoothly, adapting them where possible, exchanging information and discussing any disputes. Twenty-one such committees existed in September 2021. This system is criticized by the European Union, which finds it too complex. Pierre Cormon,
Swiss Politics for Complete Beginners
', Editions Slatkine, 2014, , p. 86
Before 2014, the ''bilateral approach'', as it is called in Switzerland, was consistently supported by the Swiss people in referendums. It allows the Swiss to keep a sense of sovereignty, due to arrangements when changes in EU law will only apply after the EU–Swiss Joint Committee decides so in consensus. It also limits the EU influence to the ten areas, where the EEA includes more areas, with more exceptions than the EEA has. From the perspective of the EU, the treaties contain largely the same content as the EEA treaties, making Switzerland a virtual member of the EEA. Most EU law applies universally throughout the EU, the EEA and Switzerland, providing most of the conditions of the free movement of people, goods, services and capital that apply to the member states. Switzerland pays into the EU budget. Switzerland has extended the ''bilateral treaties'' to new EU member states; each extension required the approval of Swiss voters in a referendum. In a referendum on 5 June 2005, Swiss voters agreed, by a 55% majority, to join the
Schengen Area The Schengen Area ( , ) encompasses European countries that have officially abolished border controls at their common borders. As an element within the wider area of freedom, security and justice (AFSJ) policy of the European Union (EU), it ...
. This came into effect on 12 December 2008. In 2009, the Swiss voted to extend the free movement of people to
Bulgaria Bulgaria, officially the Republic of Bulgaria, is a country in Southeast Europe. It is situated on the eastern portion of the Balkans directly south of the Danube river and west of the Black Sea. Bulgaria is bordered by Greece and Turkey t ...
and
Romania Romania is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern and Southeast Europe. It borders Ukraine to the north and east, Hungary to the west, Serbia to the southwest, Bulgaria to the south, Moldova to ...
by 59.6% in favour to 40.4% against. While the EU Directive 2004/38/EC on the right to move and reside freely does not apply to Switzerland, the Swiss-EU bilateral agreement on the free movement of people contains the same rights both for Swiss and EEA nationals, and their family members. By 2010, Switzerland had amassed around 210 trade treaties with the EU. Following the institutional changes in the EU–particularly regarding foreign policy and the increased role of the
European Parliament The European Parliament (EP) is one of the two legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it ...
European Council President Herman Van Rompuy and Swiss President Doris Leuthard expressed a desire to "reset" EU-Swiss relations with an easier and cleaner way of applying
EU law European Union law is a system of Supranational union, supranational Law, laws operating within the 27 member states of the European Union (EU). It has grown over time since the 1952 founding of the European Coal and Steel Community, to promote ...
in Switzerland. In December 2012, the
Council of the European Union The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and less formally known as the Council of Ministers, is the third of the seven institutions of the European Union (EU) a ...
declared that there will be no further treaties on single market issues unless Switzerland and EU agree on a new legal framework similar to the EEA that, among others, would bind Switzerland more closely to the evolving EU legislation.
José Manuel Barroso José Manuel Durão Barroso (; born 23 March 1956) is a Portuguese politician and law professor. He previously served from 2002 to 2004 as the List of Prime Ministers of Portugal, 114th prime minister of Portugal and from 2004–2014 as the 11 ...
, the
President of the European Commission The president of the European Commission, also known as president of the College of Commissioners is the Head of government, head of the European Commission, the Executive (government), executive branch of the European Union (EU). The president ...
, later affirmed this position. However, a second referendum on Swiss EEA membership wasn't expected at that time, and the Swiss public remained opposed to joining.


Schengen Agreement

In 2009,
Switzerland Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...
became a participant in the
Schengen Area The Schengen Area ( , ) encompasses European countries that have officially abolished border controls at their common borders. As an element within the wider area of freedom, security and justice (AFSJ) policy of the European Union (EU), it ...
with the acceptance of an association agreement by
popular referendum A popular referendum, depending on jurisdiction also known as a citizens' veto, people's veto, veto referendum, citizen referendum, abrogative referendum, rejective referendum, suspensive referendum, and statute referendum,Maija SetäläReferend ...
in 2005. This means that there are no passport controls on Switzerland's borders with its neighbours though customs controls continue to apply.


2014 referendum

In a referendum in February 2014, the Swiss voters narrowly approved a proposal to limit the freedom of movement of foreign citizens to Switzerland. The European Commission said it would have to examine the implications of the result on EU–Swiss relations since literal implementation would invoke the guillotine clause. On 22 December 2016, Switzerland and the EU concluded an agreement whereby a new Swiss law (in response to the referendum) would require Swiss employers to prioritise Swiss-based job seekers (whether Swiss nationals or non-Swiss citizens registered in Swiss job agencies) whilst continuing to observe the free movement of EU citizens into Switzerland thus allowing them to work there.


Swiss financial contributions

Since 2008, Switzerland has contributed CHF 1.3 billion towards various projects designed to reduce the economic and social disparities in an enlarged EU. One example of how this money is used is Legionowo railway station, Poland, which was redeveloped with CHF 9.6 million from the Swiss budget.


Proposed framework accord

Negotiations between Switzerland and the European Commission on an institutional framework accord began in 2014 and concluded in November 2018. On 7 December 2018, the Swiss Federal Council decided to neither accept nor decline the negotiated accord, instead opting for a public consultation.Swissinfo
7 December 2018.
The negotiated accord would cover five areas of existing agreements between the EU and Switzerland made in 1999: * free movement of persons * air transport * carriage of goods and passengers by rail and road * trade in agricultural products * mutual recognition of standards Notably, the accord would facilitate EU law in these fields to be readily transposed into Swiss law, and the
European Court of Justice The European Court of Justice (ECJ), officially the Court of Justice (), is the supreme court of the European Union in matters of European Union law. As a part of the Court of Justice of the European Union, it is tasked with interpreting ...
would be the final and binding arbiter on disputes in these fields. If the accord were accepted by Switzerland, the country would be in a similar position with regard to imposition of EU law (albeit only in the above five fields) as that in the other EFTA countries which are members of the EEA. Further to matters of sovereignty, specific concerns raised in Switzerland include possible effect on state aid law on the cantonal banks, the potential for transposition of them into Swiss law (and any resulting effect on social welfare, for example) and the possible effect on wages enjoyed in the country. Accepting the accord is considered by the commission to be necessary to allow Swiss access to new fields of the European single market, including the electricity market and stock exchange equivalence. By June 2019, the Swiss Federal Council found no meaningful compromise neither with the internal consulting partners, such as Swiss labour unions and business representatives, nor with the outgoing EU-commission president
Jean-Claude Juncker Jean-Claude Juncker (; born 9 December 1954) is a Luxembourgish politician who was List of prime ministers of Luxembourg, prime minister of Luxembourg from 1995 to 2013 and president of the European Commission from 2014 to 2019. He also was List ...
. EU-member countries have also expressed that no further compromise on the text of the proposed framework accord with Switzerland would be possible. As a result, Brussels did not extend its stock market equivalence to the Swiss stock exchange because of this breakdown of Swiss-EU negotiations, and for a counter-measure, the Swiss Federal Council ordinance from November 2018 was implemented, limiting the future exchange of most EU-traded Swiss stocks to the
SIX Swiss Exchange SIX Swiss Exchange (formerly SWX Swiss Exchange), based in Zürich, is Switzerland's principal stock exchange (the other being BX Swiss). SIX Swiss Exchange also trades other security (finance), securities such as Swiss government bonds and deriv ...
in
Zürich Zurich (; ) is the list of cities in Switzerland, largest city in Switzerland and the capital of the canton of Zurich. It is in north-central Switzerland, at the northwestern tip of Lake Zurich. , the municipality had 448,664 inhabitants. The ...
. The negotiations on the proposed framework accord between Switzerland the EU were restarted on 23 April 2021, when Swiss Federal Councilor Guy Parmelin and EU-commission president
Ursula von der Leyen Ursula Gertrud von der Leyen (; ; born 8 October 1958) is a German politician, serving as president of the European Commission since 2019. She served in the Cabinet of Germany, German federal government between 2005 and 2019, holding position ...
met in
Brussels Brussels, officially the Brussels-Capital Region, (All text and all but one graphic show the English name as Brussels-Capital Region.) is a Communities, regions and language areas of Belgium#Regions, region of Belgium comprising #Municipalit ...
. The meeting took place in a friendly atmosphere, but no agreement could be attained as the federal councilor insisted on excluding key issues such as protection of Swiss wages, Citizens' Rights Directive, and state aid for cantonal banks from the agreement. The following week, Stéphanie Riso, Deputy Head of Cabinet for the
EU commission The European Commission (EC) is the primary executive arm of the European Union (EU). It operates as a cabinet government, with a number of members of the Commission ( directorial system, informally known as "commissioners") corresponding t ...
, informed representatives of the 27 member countries of the progress with regard to the framework accord with Switzerland. The EU commission perceived the Swiss demands as an ultimatum, and the EU member countries expressed support for the EU-leadership in the negotiations. Foreign Minister
Ignazio Cassis Ignazio Daniele Giovanni Cassis (; born 13 April 1961) is a Swiss physician and politician who has been a List of members of the Swiss Federal Council, Member of the Swiss Federal Council since 1 November 2017. A member of FDP.The Liberals, Cas ...
told reporters that the impasse was due to a different interpretation of the "free movement of people" clause in the framework accord. In September 2020, Swiss voters clearly rejected a ballot measure by the
Swiss People's Party The Swiss People's Party (, SVP; , PPS), also known as the Democratic Union of the Centre (, UDC; , UDC), is a national-conservative and right-wing populist political party in Switzerland. Chaired by Marcel Dettling, it is the largest party in ...
to limit the free movement of persons, and decided to favour bilateral agreements with the EU. According to internal reports by the Swiss Federal Council, failed negotiations with the EU-commission have already been taking place on 11 November 2020 when chief negotiator Livia Leu took the podium for Swiss-EU talks. On 26 May 2021, Switzerland decided to again suspend negotiations with the EU and not sign the drafted EU-Swiss Institutional Framework Agreement. The main disagreements were about freedom of movement, the level playing field and state aid rules. On 15 November 2021,
Maroš Šefčovič Maroš Šefčovič (; born 24 July 1966) is a Slovak diplomat and politician serving as European Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency (2024–2029) in the Von der Leyen Commission II. Prior t ...
, EU Vice President responsible for Swiss-EU negotiations and
Brexit Brexit (, a portmanteau of "Britain" and "Exit") was the Withdrawal from the European Union, withdrawal of the United Kingdom (UK) from the European Union (EU). Brexit officially took place at 23:00 GMT on 31 January 2020 (00:00 1 February ...
struck a more conciliatory tone with Swiss Foreign Minister
Ignazio Cassis Ignazio Daniele Giovanni Cassis (; born 13 April 1961) is a Swiss physician and politician who has been a List of members of the Swiss Federal Council, Member of the Swiss Federal Council since 1 November 2017. A member of FDP.The Liberals, Cas ...
, when they met in Brussels. The two sides agreed to establish a structured political dialogue at ministerial level, and re-open bilateral talks in early 2022. The Swiss Foreign minister in particular insisted that Switzerland will be integrated back into the Erasmus+ and the
Horizon Europe Horizon Europe is a seven-year European Union scientific research initiative to help develop a sustainable and livable society in Europe. It is the ninth of the Framework Programmes for Research and Technological Development (FP9), and the succe ...
programmes. At stake are a number of agreements between Switzerland and the EU, including future access to EU's electricity market, as well as EU citizens' availability of Swiss social security benefits. In December 2023, the
Swiss Federal Council The Federal Council is the federal cabinet of the Swiss Confederation. Its seven members also serve as the collective head of state and government of Switzerland. Since World War II, the Federal Council is by convention a permanent grand co ...
agreed to reinitiate negotiations with Brussels on bilateral relations with regard to the framework accord. The decision came after a two-year period of previously undisclosed preparations and reflects the opinion of the Swiss population to find a realistic approach for a stable relationship with the EU. The draft mandate was the result of numerous meetings on a diplomatic level as well as extensive internal discussions with unions and Swiss business representatives. With the choice of a new negotiating team, Switzerland expects that it will find a more effective strategy to create optimal conditions for a satisfactory result in the upcoming negotiations. Mainly the "super guillotine clause", which previously ended the discussion with the EU, was removed to avoid a premature failure of future talks, and the new draft, agreed upon by a joint statement, would allow an open-ended discourse on all levels including the free movement of people, land transport, air transport, which are completely revised, and technical barriers to trade and agriculture as well as electricity, food safety and health, with all three allowing for direct subsidies. The responsibility of the European court on Swiss legal questions includes more limitations. The new draft mandate is now in process to be ratified by the Swiss cantons, the federal parliament and awaits approval by the
EU commission The European Commission (EC) is the primary executive arm of the European Union (EU). It operates as a cabinet government, with a number of members of the Commission ( directorial system, informally known as "commissioners") corresponding t ...
by the end of 2023. Both sides had come a long way to create the new draft, according to the Swiss foreign minister
Ignazio Cassis Ignazio Daniele Giovanni Cassis (; born 13 April 1961) is a Swiss physician and politician who has been a List of members of the Swiss Federal Council, Member of the Swiss Federal Council since 1 November 2017. A member of FDP.The Liberals, Cas ...
. On March 18, 2024, Swiss Federal Councilor Viola Amherd and chief of the European Commission
Ursula von der Leyen Ursula Gertrud von der Leyen (; ; born 8 October 1958) is a German politician, serving as president of the European Commission since 2019. She served in the Cabinet of Germany, German federal government between 2005 and 2019, holding position ...
met in Brussels for a first meeting. Von der Leyen warmly welcomed the Swiss delegation including chief negotiator Patric Franzen. The EU Commission president struck an optimistic tone and expressed hope that the agreement could conclude by the end of 2024, while Amherd stressed the qualitative criteria for Switzerland rather than the tempo of the negotiations. Amherd also met the vice-president of the European Commission Maros Sefcovic and EU chief negotiator Richard Szostak during lunch. The EU and Switzerland are economically interconnected to a high degree, and both sides hope for more stability between the European trading zone and the export-oriented economy of the Swiss Confederation. Switzerland would benefit to reconnect to the Horizon academic program, and have better access to the European market, but other critical aspects such as the protection of Swiss wages are a serious concern for Swiss labour unions. On the right side of the Swiss political spectrum, many exponents of the conservative Swiss People's party (SVP) reject the negotiations for a framework accord altogether as they fear economic disadvantages and a loss of political independence from the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
. According to the
European Commission The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...
, the talks entered their sixth round in late August 2024. The progress of the discussions was described as slow but steady with the main sticking points remaining, namely the 'free movement of people' as well as the 'protection of Swiss wages'. The talks continue in mid-September and are presumably completed by the end of 2024.


Chronology of the Swiss votes

Chronology of Swiss votes about the European Union:"Ce qui nous lie à l'Union européenne", ''
Le Temps ' (, ) is a Swiss French-language daily newspaper published in Berliner format in Geneva by Le Temps SA. The paper was launched in 1998, formed out of the merger of two other newspapers, and (the former being a merger of two other papers), ...
'', Friday 4 April 2014.
* 3 December 1972: free trade agreement with the
European Communities The European Communities (EC) were three international organizations that were governed by the same set of Institutions of the European Union, institutions. These were the European Coal and Steel Community (ECSC), the European Atomic Energy Co ...
is approved by 72.5% of voters * 6 December 1992: joining the
European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Asso ...
is rejected by 50.3% of voters. This vote strongly highlighted the cultural divide between the German- and the French-speaking cantons, the
Röstigraben (; , also transcribed to reflect the Swiss German pronunciation ) is a term used to refer to the cultural boundary between German-speaking Switzerland and Romandy, the French-speaking parts. There is also the term , referring to the boundary b ...
. The only German-speaking cantons voting for the EEA were
Basel-Stadt Canton of Basel-Stadt or Basel-City ( ; ; ; ) is one of the 26 cantons forming the Swiss Confederation. It is composed of three municipalities with Basel as the capital. It is traditionally considered a " half-canton", the other half being B ...
and Basel-Landschaft, which border on France and Germany. * 8 June 1997: the federal popular initiative "negotiations concerning EU membership: let the people decide!" on requiring the approval of a referendum and the Cantons to launch accession negotiations with the EU (« Négociations d'adhésion à l'UE : que le peuple décide ! ») is rejected by 74.1% of voters. * 21 May 2000: the Bilateral agreements with the EU are accepted by 67.2% of voters. * 4 March 2001: the federal popular initiative "yes to Europe!" (« Oui à l'Europe ! ») on opening accession negotiations with the EU is rejected by 76.8% of voters. * 5 June 2005: the
Schengen Agreement The Schengen Agreement ( , ) is a treaty which led to the creation of Europe's Schengen Area, in which internal border checks have largely been abolished. It was signed on 14 June 1985, near the town of Schengen, Luxembourg, by five of the t ...
and the Dublin Regulation are approved by 54.6% of voters. * 25 September 2005: the extension of the free movement of persons to the ten new members of the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
is accepted by 56.0% of voters. * 26 November 2006: a cohesion contribution of one billion for the ten new member states of the European Union (Eastern Europe Cooperation Act) is approved by 53.4% of voters. * 8 February 2009: the extension of the free movement of persons to new EU members
Bulgaria Bulgaria, officially the Republic of Bulgaria, is a country in Southeast Europe. It is situated on the eastern portion of the Balkans directly south of the Danube river and west of the Black Sea. Bulgaria is bordered by Greece and Turkey t ...
and
Romania Romania is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern and Southeast Europe. It borders Ukraine to the north and east, Hungary to the west, Serbia to the southwest, Bulgaria to the south, Moldova to ...
is approved by 59.61% of voters. * 17 May 2009: introduction of
biometric passport A biometric passport (also known as an electronic passport, e-passport or a digital passport) is a passport that has an embedded electronic microprocessor chip, which contains biometrics, biometric information that can be used to authenticate ...
s, as required by the Schengen acquis, is approved by 50.15% of voters. * 17 June 2012: the federal popular initiative "international agreements: let the people speak!" (« Accords internationaux : la parole au peuple ! ») on requiring all international treaties to be approved in a referendum launched by the Campaign for an Independent and Neutral Switzerland is rejected by 75.3% of voters. * 9 February 2014: the federal popular initiative "against mass immigration", which would limit the free movement of people from EU member states, is accepted by 50.3% of voters. * 28 February 2016: the popular initiative "For the effective expulsion of foreign criminals", which would automatically expel from the country any foreigner who committed a crime (regardless of the severity of the crime), and therefore undermine EU freedom of movement, is rejected by 58.9% of voters. * 19 May 2019: an optional referendum on transposing the European gun control directive (an update to the Schengen acquis) into Swiss law, is approved by 63.7% of voters. * 27 September 2020: the popular initiative "For moderate immigration", which would require the government to withdraw from the 1999 Agreement on the Free Movement of Persons and prevent the conclusion of future agreements which grant the free movement of people to foreign nationals, is rejected by 61.7% of voters. * 15 May 2022: the adoption of the EU regulation on the European Border and Coast Guard, which would increase the Swiss government's contribution to the Frontex border agency, is approved by 71.5% of voters. Among these sixteen votes, just three are against further integration or for reversing integration with the European Union (6 December 1992, 4 March 2001, and 9 February 2014); the other thirteen votes are in favour of either deepening or maintaining integration between Switzerland and the European Union.


Prospect of EU membership

Switzerland took part in negotiating the EEA agreement with the EU and signed the agreement on 2 May 1992 and submitted an application for accession to the EU on 20 May 1992. A Swiss referendum held on 6 December 1992 rejected EEA membership. As a consequence, the Swiss Government suspended negotiations for EU accession until further notice. With the ratification of the ''second'' round of ''bilateral treaties'', the
Swiss Federal Council The Federal Council is the federal cabinet of the Swiss Confederation. Its seven members also serve as the collective head of state and government of Switzerland. Since World War II, the Federal Council is by convention a permanent grand co ...
downgraded their characterisation of a full EU membership of Switzerland from a "strategic goal" to an "option" in 2006. Membership continued to be the objective of the government and was a "long-term aim" of the Federal Council until 2016, when Switzerland's frozen application was withdrawn. The motion was passed by the Council of States and then by the Federal Council in June. In a letter dated 27 July the Federal Council informed the
Presidency of the Council of the European Union The presidency of the Council of the European Union is responsible for the functioning of the Council of the European Union, which is the co-legislator of the EU legislature alongside the European Parliament. It rotates among the member state ...
that it was withdrawing its application. Concerns about loss of neutrality and
sovereignty Sovereignty can generally be defined as supreme authority. Sovereignty entails hierarchy within a state as well as external autonomy for states. In any state, sovereignty is assigned to the person, body or institution that has the ultimate au ...
are the key issues against membership for some citizens. A 2018 survey of public opinion in Switzerland found "65% of Swiss voters" want to continue bilateral agreements with the EU, and only 3% considered that joining the EU was a feasible option. The popular initiative entitled "Yes to Europe!", calling for the opening of immediate negotiations for EU membership, was rejected in a 4 March 2001 referendum by 76.8% and all cantons. The
Swiss Federal Council The Federal Council is the federal cabinet of the Swiss Confederation. Its seven members also serve as the collective head of state and government of Switzerland. Since World War II, the Federal Council is by convention a permanent grand co ...
, which was in favour of EU membership, had advised the population to vote against this referendum, since the preconditions for the opening of negotiations had not been met. During the history of EU-Swiss relations, the country has undergone several substantial changes in foreign policies, depending on the democratic outcomes of ballot measures. Specific agreements with the EU on freedom of movement for workers and areas concerning
tax evasion Tax evasion or tax fraud is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to red ...
were first addressed during the Switzerland–EU summit in May 2004 where nine bilateral agreements were signed.
Romano Prodi Romano Prodi (; born 9 August 1939) is an Italian politician who served as President of the European Commission from 1999 to 2004 and twice as Prime Minister of Italy, from 1996 to 1998, and again from 2006 to 2008. Prodi is considered the fo ...
, former President of the European Commission, said the agreements "moved Switzerland closer to Europe." Joseph Deiss of the
Swiss Federal Council The Federal Council is the federal cabinet of the Swiss Confederation. Its seven members also serve as the collective head of state and government of Switzerland. Since World War II, the Federal Council is by convention a permanent grand co ...
said, "We might not be at the very centre of Europe but we're definitely at the heart of Europe". He continued, "We're beginning a new era of relations between our two entities." The Swiss population agreed to their country's participation in the
Schengen Agreement The Schengen Agreement ( , ) is a treaty which led to the creation of Europe's Schengen Area, in which internal border checks have largely been abolished. It was signed on 14 June 1985, near the town of Schengen, Luxembourg, by five of the t ...
and joined the area in December 2008. The result of the referendum on extending the freedom of movement of people to
Bulgaria Bulgaria, officially the Republic of Bulgaria, is a country in Southeast Europe. It is situated on the eastern portion of the Balkans directly south of the Danube river and west of the Black Sea. Bulgaria is bordered by Greece and Turkey t ...
and
Romania Romania is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern and Southeast Europe. It borders Ukraine to the north and east, Hungary to the west, Serbia to the southwest, Bulgaria to the south, Moldova to ...
, which joined the EU on 1 January 2007 caused Switzerland to breach its obligations to the EU. The Swiss government declared in September 2009 that bilateral treaties are not solutions and the membership debate has to be examined again while the left-wing Green Party and the Social Democratic Party stated that they would renew their push for EU membership for Switzerland. In the February 2014 Swiss immigration referendum, a federal popular initiative "against mass immigration", Swiss voters narrowly approved measures limiting the freedom of movement of foreign citizens to Switzerland. The European Commission said it would have to examine the implications of the result on EU–Swiss relations. Due to the refusal of Switzerland to grant Croatia free movement of persons, the EU accepted Switzerland's access to the Erasmus+ student mobility programme only as a "partner country", as opposed to a "programme country", and the EU froze negotiations on access to the EU electricity market. On 4 March 2016, Switzerland and the EU signed a treaty that extends the agreement on the free movement of people to Croatia, which led to Switzerland's full readmission into
Horizon 2020 The Framework Programmes for Research and Technological Development, also called Framework Programmes or abbreviated FP1 to FP9, are funding programmes created by the European Union/European Commission to support and foster research in the Europe ...
, a European funding framework for
research and development Research and development (R&D or R+D), known in some countries as OKB, experiment and design, is the set of innovative activities undertaken by corporations or governments in developing new services or products. R&D constitutes the first stage ...
. The treaty was ratified by the National Council on 26 April on the condition that a solution be found to an impasse on implementing the 2014 referendum. The treaty was passed in December 2016. This allowed Switzerland to rejoin Horizon 2020 on 1 January 2017. A poll in December 2022 to mark 30 years since the 1992 EEA referendum indicated that 71% would vote for EEA participation if a referendum were held. For common Swiss people, a major difference between EEA and the Swiss agreement, is that EEA includes free movement for services including roaming prices for mobile phones. A members bill about joining EEA in 2022 was mostly rejected by the Federal council (government) considering the present treaties better for Switzerland. Recently support for integrating with the EU has increased. The overall positive attitudes toward the EU have increased, with "Sixty-five percent aying theywould support Switzerland adopting EU law" and "Fifty-five percent would accept a role for the European Court of Justice in dispute resolution". 60% support joining the EEA.


Foreign policy

In the field of foreign and security policy, Switzerland and the EU have no overarching agreements. But in its Security Report 2000, the
Swiss Federal Council The Federal Council is the federal cabinet of the Swiss Confederation. Its seven members also serve as the collective head of state and government of Switzerland. Since World War II, the Federal Council is by convention a permanent grand co ...
announced the importance of contributing to stability and peace beyond Switzerland's borders and of building an international community of common values. Subsequently, Switzerland started to collaborate in projects of EU's Common Foreign and Security Policy (CFSP). Switzerland has contributed staff or material to EU peace keeping and security missions in
Bosnia and Herzegovina Bosnia and Herzegovina, sometimes known as Bosnia-Herzegovina and informally as Bosnia, is a country in Southeast Europe. Situated on the Balkans, Balkan Peninsula, it borders Serbia to the east, Montenegro to the southeast, and Croatia to th ...
, the
Democratic Republic of the Congo The Democratic Republic of the Congo (DRC), also known as the DR Congo, Congo-Kinshasa, or simply the Congo (the last ambiguously also referring to the neighbouring Republic of the Congo), is a country in Central Africa. By land area, it is t ...
,
Kosovo Kosovo, officially the Republic of Kosovo, is a landlocked country in Southeast Europe with International recognition of Kosovo, partial diplomatic recognition. It is bordered by Albania to the southwest, Montenegro to the west, Serbia to the ...
,
North Macedonia North Macedonia, officially the Republic of North Macedonia, is a landlocked country in Southeast Europe. It shares land borders with Greece to the south, Albania to the west, Bulgaria to the east, Kosovo to the northwest and Serbia to the n ...
and the province of
Aceh Aceh ( , ; , Jawi script, Jawoë: ; Van Ophuijsen Spelling System, Old Spelling: ''Atjeh'') is the westernmost Provinces of Indonesia, province of Indonesia. It is located on the northern end of Sumatra island, with Banda Aceh being its capit ...
,
Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...
. Close cooperation has also been established in the area of
international sanctions International sanctions are political and economic decisions that are part of diplomatic efforts by countries, multilateral or regional organizations against states or organizations either to protect national security interests, or to protect i ...
. As of 2006, Switzerland has adopted five EU sanctions that were instituted outside of the United Nations. Those affected the former Republic of
Yugoslavia , common_name = Yugoslavia , life_span = 1918–19921941–1945: World War II in Yugoslavia#Axis invasion and dismemberment of Yugoslavia, Axis occupation , p1 = Kingdom of SerbiaSerbia , flag_p ...
(1998),
Myanmar Myanmar, officially the Republic of the Union of Myanmar; and also referred to as Burma (the official English name until 1989), is a country in northwest Southeast Asia. It is the largest country by area in Mainland Southeast Asia and has ...
(2000),
Zimbabwe file:Zimbabwe, relief map.jpg, upright=1.22, Zimbabwe, relief map Zimbabwe, officially the Republic of Zimbabwe, is a landlocked country in Southeast Africa, between the Zambezi and Limpopo Rivers, bordered by South Africa to the south, Bots ...
(2002),
Uzbekistan , image_flag = Flag of Uzbekistan.svg , image_coat = Emblem of Uzbekistan.svg , symbol_type = Emblem of Uzbekistan, Emblem , national_anthem = "State Anthem of Uzbekistan, State Anthem of the Republ ...
(2006) and
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
(2006).


Use of the euro in Switzerland

The currency of Switzerland is the
Swiss franc The Swiss franc, or simply the franc, is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) iss ...
. Switzerland (with
Liechtenstein Liechtenstein (, ; ; ), officially the Principality of Liechtenstein ( ), is a Landlocked country#Doubly landlocked, doubly landlocked Swiss Standard German, German-speaking microstate in the Central European Alps, between Austria in the east ...
) is in the unusual position of being surrounded by countries that use the euro. As a result, the
euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...
is '' de facto'' accepted in many places, especially near borders and in tourist regions.
Swiss Federal Railways Swiss Federal Railways (, SBB; , CFF; , FFS) is the national railway company of Switzerland. The company was founded in 1902 and is headquartered in Bern. It used to be a State-owned enterprise, government institution, but since 1999 it has be ...
accept euros, both at ticket counters and in automatic ticket machines. Also many public phones, vending machines or ticket machines accept euro coins. Many shops and smaller businesses that accept euros take notes only, and give change in Swiss francs, usually at a less favourable exchange rate than banks. Many bank cash machines issue euros at the traded exchange rate as well as Swiss francs. On 6 September 2011, the Swiss franc effectively became fixed against the euro: the Franc had always floated independently until its rapid currency appreciation during the eurozone debt crisis. The Swiss National Bank set an CHF/
EUR The euro (symbol: €; currency code: EUR) is the official currency of 20 of the member states of the European Union. This group of states is officially known as the euro area or, more commonly, the eurozone. The euro is divided into 10 ...
peg that involved a minimum exchange rate of 1.20 francs to the euro, with no upper bound in place. The Bank committed to maintaining this exchange rate to ensure stability. The peg was abandoned on 15 January 2015, when renewed upward pressure on the Swiss franc exceeded the Bank's level of tolerance.


Switzerland's foreign relations with EU member states


Diplomatic relations between Switzerland and EU member states


See also

*
Enlargement of the European Union The European Union (EU) has expanded a number of times throughout its history by way of the accession of new member state of the European Union, member states to the Union. To join the EU, a state needs to fulfil economic and political condit ...
**Potential enlargement of the European Union *Enlargement of Switzerland *Liechtenstein–Switzerland relations *Foreign relations of Switzerland *German immigration to Switzerland *Italian immigration to Switzerland *
Schengen Area The Schengen Area ( , ) encompasses European countries that have officially abolished border controls at their common borders. As an element within the wider area of freedom, security and justice (AFSJ) policy of the European Union (EU), it ...
*Borders with EU members **Austria–Switzerland border **France–Switzerland border **Germany–Switzerland border **Italy–Switzerland border


Notes


References

{{DEFAULTSORT:Switzerland-European Union relations Switzerland–European Union relations, Third-country relations of the European Union