Brussels, 19/05/2004 (Agence Europe) - The EU/Switzerland agreements could be signed from August on but will probably not be ratified in time for 1 January 2005, the president of the Swiss Confederation, Joseph Keiss, said at the EU/Swiss summit which unfolded in Brussels on Tuesday. According to Swiss procedures, the text of the agreements should be presented to the two Houses of Parliament, at the September or December sitting, then possibly be submitted to a referendum, which could be either optional or compulsory, he said. The agreement on savings tax could be subject to an optional referendum if 50,000 citizens so request. "The government undertakes to do everything it should so that the procedure may be concluded as soon as possible", Mr Deiss said. Entry into force of the taxation agreement is the condition set by Luxembourg, Austria and Belgium for implementation of the directive on savings tax on 1 January 2005.
During a press conference, Joseph Deiss welcomed the conclusion of the talks marking a "new phase in our relations in terms of intensity and quality". Although the "centre of Europe" is claimed by Poland or Germany, "Switzerland is at the heart" of Europe and "the whole problem for a country which is not a member of the EU is that of organising its relations, its infrastructure", he noted. Such is the role of the free trade agreement in force since 1972, of the seven first bilateral agreements signed in the nineties and of the nine agreements that have just been signed, he stressed. These agreements are on taxation, legal and administrative cooperation in the context of Schengen/Dublin, but also on Switzerland's participation in Community programmes on statistics, education, the media, the environment and also on agri-foods, "providing a coherent whole for the future", he recalled. President Deiss also welcomed the conclusion of the agreement integrating the ten new Member States of the EU in the agreement on free movement of persons. Negotiations on services, left to one side because of the "complexity" involved, will "probably be reopened" in the future and there will no doubt also be other negotiations as "there are always questions to be resolved" in our relations, he admitted.
President Prodi also welcomed this "major breakthrough after years of discussion". After the first summit of this kind, Romano Prodi is counting on other meetings at the highest level. The agreements signed are "not only good for Switzerland but also for the European Union", he noted. Welcoming the work of the negotiating groups, Ireland's Deputy Prime Minister Mary Harney also welcomed these agreements between parties that she described as economically close to each other, interdependent and sharing the same values and same culture.
Switzerland's accession to the EU is not a topical subject, Joseph Deiss said. "It is a reality and, for now, the road is bilateral", he commented. He recalled their programme states that, by 2006, the Swiss Federal Government should present an analysis of the consequences of EU accession. He stressed, however, that "one must recognise the fact that, today, there is no political base for accession".
The summit's conclusions endorse the different agreements between the EU and Switzerland. These agreements are:
Schengen/Dublin: Switzerland will take the acquis on board while guaranteeing that it will keep its banking secret for direct taxation, should this acquis evolve in the field of direct taxation.
Fight against fraud: EU authorities will be able to call for legal and administrative cooperation from Swiss authorities in the event of fraud, smuggling or corruption relating to indirect taxation (customs duties, VAT, excise on tobacco and alcohol), subsidies and public procurement. They may call for measures of constraint (hearing of witnesses, searches, access to banking documents, and confiscation of goods). These measures cover money laundering when it is a case of swindling or professional contraband under Swiss law (liable to a sentence of over six months). EU Member State authorities can possibly be present during the implementation of measures.
Free movement of persons: Switzerland will continue to apply until 30 April 2011 "at the latest" restrictions to its labour market for the ten new Member States as for the older Member States. A safeguard clause may be invoked until 31 May 2014. During the transition period, Switzerland may give priority to its own nationals, control salaries and introduce worker quotas. In the context of these quotas, it will make the granting of permits to stay for contracts of four months at most and, for some crossborder service providers (construction, cleaning industry, horticulture and security), subject to certain restrictions: priority to indigenous workers, salary control and qualification requirements. These quotas should be at least the double of the immigration flows recorded in the last three years.