Brussels, 14/12/2010 (Agence Europe) - Relations between the EU and countries in the European Free Trade Association - EFTA (Switzerland, Iceland, Norway and Liechtenstein) have grown deeper over the last two years, explain EU foreign ministers in a conclusions document adopted on Monday 14 December. The EU27 welcome the way that the three EFTA countries that are also members of the European Economic Area (EEA), namely Norway, Liechtenstein and Iceland, have recently pledged to continue and even increase their financial contribution to the EEA's economic and social cohesion. The EU is awaiting with interest the introduction of “constructive dialogue” with Switzerland (which is not in the EEA) on changing the current contributions system that runs out in June 2012.
Switzerland. Following the defeat of the 1992 referendum on Switzerland joining the EU, the country decided to take a bilateral agreements approach to extending its relations with the EU, relations that the EU ministers describe in their conclusions document as “good, intense and broad”. There are, however, limits to the bilateral system and the Council notes: “While the present system of bilateral agreements has worked well in the past, the challenge of the coming years will be to go beyond this complex system, which is creating legal uncertainty and has become unwieldy to manage and has clearly reached its limits.” To put relations on solid foundations, solutions will need to be found that are acceptable to both sides, explain the ministers, wanting Switzerland to agree to automatically take up future EU legislation, which Berne refuses to do. “Due to a lack of efficient arrangements for the take-over of new EU acquis including European Court of Justice case-law, and for ensuring the supervision and enforcement of the existing agreements, this (bilateral) approach does not ensure the necessary homogeneity in the parts of the internal market and of the EU policies in which Switzerland participates. This has resulted in legal uncertainty for authorities, operators and individual citizens”, comments the Council's conclusions document, adding: “The Council is concerned by an incoherent application of certain agreements and the introduction by Switzerland of subsequent legislative measures and practices incompatible with those agreements, in particular the Agreement on the Free Movement of Persons”. The ministers therefore call upon “Switzerland to abrogate such restrictions - for instance, the obligation in force in Switzerland to provide prior notification with an 8-day waiting period - and to refrain from adopting new measures incompatible with the Agreement”. The EU is “very concerned regarding certain cantonal company tax regimes of Switzerland creating an unacceptable distortion of competition”. Berne is therefore urged to scrap the tax exemptions and avoid setting up an uneven playing field in regions of the country bordering on the EU. On corporate taxation, the Council notes: “With regard to harmful business tax practices, the Council encourages Switzerland to continue discussions with the EU on the application of the principles and criteria of the EU Code of Conduct on business taxation.” “Concerning the taxation of savings, the Council welcomes the readiness of Switzerland to consider an extension of the scope of the savings taxation agreement, once the EU has finalised its work on the revision of the savings taxation directive.”
Iceland (which entered EU accession talks in July this year). The Council says it wants to boost cooperation with Iceland on issues like policy for the Arctic region, the Northern Dimension, renewable energy, climate change and fisheries. When it comes to fishing, the EU27 recommend that all countries with a coastline (the EU, Norway, the Faeroe Islands and Iceland) adopt a “constructive approach” on joint management of mackerel stocks. The EU27 urge Iceland to re-enter talks in this connection with a view to striking a reasonable, long-term agreement on the sharing of fishing quotas, based on the past experience of all stakeholders.
Liechtenstein. The Council welcomed the speed with which Liechtenstein has adopted EU legislation and looks forward to the country rapidly joining the Schengen Area. On the cooperation and exchange of tax information and tackling tax dodging, the EU27 welcome the way the country has pledged to implement OECD transparency and tax information exchange standards. When it comes to savings tax, the Council welcomes the fact that Liechtenstein is disposed to enter talks over changes to the savings tax agreement in line with changes in EU legislation in this connection, once the EU has finished revising its savings tax directive.
Norway. Noting Norway's very high financial contribution to the cost of reducing the social and economic divide within the EU, the EU27 welcome the close EU cooperation with Oslo on foreign and security policy issues, like Norway's membership of EUPOL Afghanistan, EULEX Kosovo and Atalanta missions, the Northern Tactical Grouping and cooperation with the European Defence Agency. On energy issues, Norway is described as a key EU partner and an important and reliable supplier to the EU of natural gas and oil, explain the ministers. (H.B./transl.fl)