Switzerland and the European Union announced a landmark agreement on Friday aimed at significantly overhauling their trade relations. The deal, which touches on a wide range of sectors from electricity and transport to state aid and freedom of movement, is set to strengthen ties between the two parties and offer more stability for Swiss businesses that rely heavily on the EU.
The agreement, dubbed the biggest overhaul of trade relations in years, addresses some of the key issues that have strained relations, such as immigration concerns from the Swiss side. The deal is still facing hurdles before ratification, but it represents a major step forward from the failed attempt in 2021 when Switzerland pulled out of similar negotiations.
Swiss President Viola Amherd and European Commission President Ursula von der Leyen announced the deal at a joint news conference in Bern. “This is a landmark for the stabilization and further development of bilateral relations,” Amherd said, while von der Leyen underlined its importance, referring to the geopolitical challenges the world is currently facing.
The accord also covers a financial settlement. Switzerland‘s contribution to the EU is kept at 130 million Swiss francs per year in the transitional phase up to 2029. Switzerland will gradually raise its contribution to 350 million francs for a period running from 2030 until 2036.
The promise of greater legal certainty and stability will indeed impact the Swiss companies mainly when involved with the EU directly. The economic integration process with the bloc from among its largest export markets persists. It was as from the agreements established by them in 1972 then extended in due time with each other.
