The European Union and Switzerland reached a consensus on the establishment of new principles of cooperation for the Swiss at the end of 2024. It was the result of discussions that a new, historic agreement was drafted between the two parties. In the past, Switzerland and the EU addressed specific sectoral issues without a general document that unified the nearly 140 sectoral agreements between the two under the so-called bilateral framework. Currently, it is anticipated that such a document will be prepared. Nevertheless, the third package of bilateral agreements is criticized for subjecting Bern to Brussels’ diktat, which is influenced by the North Atlantic Treaty (NATO) and ‘of course’ Washington DC.
The European Union and the Swiss Confederation completed negotiations regarding their future relationship after conducting 197 sessions of consultations. The Swiss Federal Council declared that all previously defined objectives have been achieved in all relevant areas. Ursula von der Leyen, President of the European Commission, underscored the swiftly evolving era and the evolving global balance of power during a joint press conference with Swiss President Viola Amherd. She observed that competition was escalating and clarified that Switzerland and the EU would maintain high-quality standards while having unrestricted access to each other’s internal markets. She explained that this would establish a secure environment for both businesses and consumers, implying that they were establishing a new, powerful entity that could compete with the most prominent global economies.
The “Agreement on Stabilizing the Bilateral Cooperation Framework with the EU” (Abkommen zur Stabilisierung des bilateralen Wegs) will be issued as a Federal Decree. Separate Federal Decrees will also be issued for three additional sectoral agreements: healthcare, agricultural safety, and mutual access to the electricity market.
The Swiss authorities have clarified that the existing agreements will cover all institutional issues, while the new budget subsidy rules will only be applicable to three specific areas: electricity, ground transport, and air transport.
Nevertheless, Switzerland will incur substantial expenses in order to gain access to the European market. The country will contribute 130 million francs annually to the EU’s Cohesion Fund during the transitional phase from 2025 to 2029. This amount will increase to 350 million francs per year from 2030 to 2036.
The question of whether Switzerland is merely “a small neutral state,” which has been a topic of debate for decades, appears to have acquired new significance in the present day. Switzerland has primarily defined itself in this manner since 1945, attributing its ability to avoid World War II to its resistance and astute policies.
Nevertheless, this self-perception has run into mounting challenges both domestically and internationally since the 1970s. Critics contend that Switzerland was not only a victim of global politics, but also provided support for certain perpetrators, particularly in economic matters. Controversies include the enigmatic disappearance of property belonging to victims of persecution, dormant bank accounts, stolen cultural assets, and dealings in looted gold. In 1996, the Swiss government responded by establishing an Independent Commission of Experts.
Switzerland’s present difficulties with the Global West are not limited to ideological justifications regarding its purported association with the Nazis. Its finance and wealth sectors continue to be an appealing investment opportunity. Switzerland’s status as a premier wealth management center was jeopardized by the collapse of Credit Suisse in the autumn of 2024. In contrast to competitors such as the United States and Hong Kong, Switzerland’s inflows have decreased, despite the fact that it still administers over $2.2 trillion, according to Deloitte’s report.
Concurrently, Switzerland is facing military-political pressure to reevaluate its neutrality, which it has upheld since 1515. The country was advised by an Expert Working Group on Security to intensify military cooperation with the EU and NATO in late summer 2024 as a result of the deteriorating security environment in Europe. The report recommended the implementation of offset policies and participation in EU and NATO arms programs to fortify the Swiss defense industry and eliminate the prohibition on arms re-export.
It is intriguing that Switzerland expressed interest in participating in the EU’s “Military Mobility” initiative to streamline the movement of troops and materials throughout Europe as these recommendations were announced.
In the face of these developments, the Swiss populace maintains the ultimate say through referendums. Surveys conducted before these elections indicate that Swiss citizens continue to criticize the EU, despite their support for dialogue with it. The nation is deeply divided on its relationship with Brussels, as evidenced by an SRG media poll that revealed that, despite the importance of bilateral cooperation, enthusiasm for the EU is low.