GENEVA, May 27 — The Federal Council, the executive body of Switzerland, declared Wednesday that it would not sign the institutional agreement with the European Union (EU), putting the lid on seven years of negotiations.
Considering that “substantial differences” remained in the draft, Swiss President Guy Parmelin informed the EU by letter that conditions were not met, thus ending any further discussions on a possible deal with the European Commission.
Negotiations on the institutional agreement started in 2014 to ensure Switzerland’s access to the EU single market, enabling a dispute settlement mechanism and maintaining good relations with the EU.
However, discussions stalled since November 2018 as the two parties could not see eye to eye on three aspects of the agreement.
Those aspects, concerning wage protection in Switzerland, state financial help to companies and the EU Citizens’ Rights Directive, the right of free movement for citizens of the European Economic Area, contradicted “vital interests” of the Alpine country, the Swiss government said in a statement.
Adding the Citizens’ Rights Directive on the existing agreement for free movement of persons, the statement said, would “constitute a paradigm shift in Switzerland’s migration policy” and further increase social security costs.
The Swiss government said it was willing to keep current relations with the EU, using “proven bilateral approach.”
The European Commission responded on the same day that, without the institutional agreement, “this modernisation of our relationship will not be possible and our bilateral agreements will inevitably age.” (Xinhua)
Negotiations on institutional agreement between Switzerland, EU to close without deal
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