Switzerland recently rejected the years of negotiations with the European Union over a proposed overarching agreement that would have upgraded its relations with the bloc – which are currently governed by a patchwork of more than 120 bilateral deals.
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The talks failed after the two sides could not agree over issues such as full access for EU citizens to the Swiss labour market, and the collapse is expected to hamper future ties as the multiple existing agreements become outdated or lapse.
Switzerland is the EU’s fourth-largest trading partner, and is surrounded by EU countries.
Around 14 lakh EU citizens live in Switzerland, which has a total population of about 85 lakh. Some 3.4 lakh travel across the border to work in Swiss industries.
The EU is Switzerland’s biggest trading destination, with the country exporting goods and services worth 160 billion euros to the bloc in 2020.
Relations between the two partners rest on the foundation of over 120 separate treaties, something which has frustrated the EU for a long time. Unlike the UK, Switzerland has access to the EU single market and maintains open borders.
The EU had been pushing for an “institutional framework agreement” with Switzerland, and had circulated a fact sheet that pointed out how a lack of common rules would lead to the Alpine country losing its ‘privileged’ status with the bloc’s electricity system.
The EU had been demanding full access for its citizens to Switzerland’s labour market, including for those seeking work. The Swiss federal council was against this happening, as it would have given non-Swiss citizens social security rights– something that Cassis called an unwanted “paradigm shift”.
