On 18 June, the European College of Commissioners gave a more than mixed assessment of the status of discussions between Switzerland and the EU on the draft of the institutional framework agreement and judged that progress was currently “insufficient” to reach a decision in favour of extending the equivalence for the Swiss stock exchange.
In December, it had already been painstakingly renewed until 30 June to allow Switzerland time to conduct political consultations on the text finalised between European and Swiss negotiators in November (see EUROPE 12261/15).
The consultations have since been carried out, and the Federal Council was able to indicate on 7 June that it could potentially sign this framework agreement, provided that several aspects be clarified: the protection of Swiss salaries, the rules on State aids, and the guarantee that the 2004 ‘free movement’ directive (with its elements on citizenship) would not have to apply to Switzerland.
In a letter dated 11 June, President Juncker had stated that he was open to discussing these clarifications and had considered the Federal Council’s stance to be relatively positive. However, since then, “no significant progress has been made”, indicated a European source. Nor was the Swiss negotiator, namely Roberto Balzarretti, “authorised by the Federal Council to discuss these clarifications”, she added.
A meeting had taken place on 12 June, “and since then, no working meetings have taken place”, added this source, who pointed out that the Commission was only ready for “clarifications, and only clarifications”, and not renegotiations. However, according to the Commission, the Swiss indeed came to request that certain points of the framework agreement be rewritten.
As for the protection of Swiss workers, the controversy concerns Swiss accompanying measures, which involve four days’ prior notification for the placement of European workers in Switzerland. The Swiss rule was initially eight days. The Commission therefore considers that it has shown flexibility and allowed Switzerland to do things that it does not allow “for the Member States”.
For the rule on State aids, Switzerland wanted to remove part of the language in the agreement, which amounts to “changing the content”, said another source, while Brussels, yet again, considers that it has shown flexibility by accepting that one and even several Swiss authorities can monitor State aids and not the Commission.
Regarding citizenship, the framework agreement provides for European law to be actively adopted, and contesting the principle of adopting a European text is not acceptable on the European side.
Will the Swiss return to the discussion table before 30 June, the date that the equivalence for the Swiss stock exchange will expire? The Commission seemed to issue a call to this effect on Tuesday, although the college also pointed out that the end of the equivalence was a logical consequence of the persistent lack of progress.
In theory, it takes the Commission a few days to come to this decision on the equivalence, which then goes to committee. On 17 June, an initial deadline (until 21 June) had been given to formalise this equivalence decision. On Tuesday, the Commission nevertheless seemed more open and implied that it could make a favourable decision at the very last minute with regard to the Swiss stock exchange if the assessment of the talks were to change. The Commission not only expects discussions on these clarifications to really take place but also expects a fairly clear timetable for the next steps. In fact, it would at least like to know a little more precisely whether Bern will be in a position to sign this agreement before the end of October. (Original version in French by Solenn Paulic)