Brussels, 11/02/2014 (Agence Europe) - Negotiations between Brussels and Berne on an agreement to regulate transit and market access could be the first casualties of the Swiss vote on immigration.
The Swiss referendum of 9 February, which approved limits on immigration, including European immigration, and which obliges the Swiss Federal Council to review the freedom of movement agreement with the EU in place since 2002, has plunged EU-Swiss relations and ongoing negotiations on several agreements into uncertainty. The electricity agreement, which has been under negotiation since 2006 to regulate transit and market access, but which also covers infrastructure, energy efficiency and natural gas, could be the first to go.
“No technical negotiations on the electricity agreement are indeed foreseen between Switzerland and the EU at the moment in light of the new situation, because the way forward needs to be analysed in view of the broader context of the bilateral relations and of course the electricity agreement is logically linked to horizontal institutional issues. At this point, it is impossible to say what will happen next on this dossier”, commented Commission spokesperson Pia Ahrenkilde-Hansen on Tuesday 11 February. This does not mean that EU-Swiss negotiations on energy are frozen. “We are waiting to see how Switzerland reacts to the consequences of Sunday's vote, as regards adherence to the bilateral agreement on the freedom of movement, given the logical link between this agreement and other agreements with Switzerland”, the Commission spokesperson stressed.
Negotiations on energy have entered a critical phase, as the EU has laid down the political objective of completing its single market for energy by the end of 2014. Before Sunday's vote in Switzerland, the bilateral agreement on energy was dependent, from the Commission's point of view, on resolution of the horizontal institutional issues and Switzerland's automatic assumption of European law.
Switzerland has long been unwilling to negotiate an institutional framework agreement as called for by the EU, which would incorporate the “acquis” of all sectorial agreements already concluded and calling for Switzerland to adopt the acquis on the single energy market. Berne would prefer a sectoral agreement which would guarantee it additional access to the EU market whilst retaining its independence from Community law.
Following the completion of the single energy market, Switzerland does not want the EU to treat it as a third country. And if no agreement on electricity can be found, its absence from the EU single market would have negative consequences in the medium term. Massive investment is required in its electricity networks, due to its move away from nuclear and from the coupling of the electricity market. And, if Switzerland is not on board, the EU will build its network to exclude transit via Switzerland, which would deprive it of an important market, as 10% of surplus European electricity is currently sold there. (EH/transl.fl)