Commission welcomes Common Understanding with Switzerland

The European Commission welcomes a Common Understanding achieved after 18 months of exploratory talks with representatives of Switzerland's Federal Council.

The document sets out a broad and balanced package of measures that will support the modernisation and further development of bilateral relations between the EU and Switzerland.

The Commission also welcomes the decision by the Swiss Federal Council taken today to launch consultations with the Swiss Parliament on its draft negotiating mandate. The European Commission will mirror this decision in the coming days, proposing negotiating directives to the Council of the EU.

President von der Leyen informed the President of the Swiss Confederation, Alain Berset, that the Commission will use the Common Understanding as the basis for the draft negotiating directives.

President of the European Commission, Ursula von der Leyen said: "I am pleased to see the successful conclusion of the exploratory talks after 18 months of intensive exchanges. This marks a significant step towards a new phase in the bilateral relations between the EU and Switzerland. I am confident that we will build on this constructive momentum."

A broad and balanced package

The elements set out in the Common Understanding ensure the protection of the rights of EU citizens in Switzerland as well as fair competition between EU and Swiss companies operating in the same markets. It also addresses Swiss concerns through targeted exceptions to certain EU rules. The package includes:

  • Institutional elements to be inserted in existing and future bilateral agreements that would enable Swiss participation in the internal market;
  • A way forward on the free movement of persons and posting of workers. It identifies ways to protect the rights of EU citizens and workers, including by ensuring non-discrimination between citizens of different Member States.
  • An agreement that would form the basis for Switzerland's regular contribution to social and economic cohesion in the EU;
  • An agreement that would provide for the association of Switzerland to Union programmes, including Horizon Europe. The Common Understanding also provides a way forward for transitional arrangements that would enable Swiss entities to apply for grants under some Union research programmes before the negotiations are concluded;
  • Provisions for the relaunch of negotiations on agreements on electricity, food safety and health;
  • Practical ways forward (modus vivendi) for EU-Swiss bilateral relations for the duration of the negotiations.

Next Steps

The Commission will adopt a Recommendation for a Council Decision authorising the opening of the negotiation with Switzerland. The negotiations between the EU and Switzerland will start once both sides have had their negotiating mandates approved according to their respective procedures.

Background

The EU and Switzerland are close neighbours with strong cross border links. The EU is Switzerland's first trading partner, while Switzerland is the fourth largest partner for the EU. About one and a half million EU citizens live in Switzerland, and around 450,000 Swiss citizens live in the EU. A few hundred thousand of EU citizens cross the border daily to work.

Since March 2022, the EU and Switzerland were engaged in exploratory discussions on the future of their bilateral relations.