Switzerland’s agreement with Brussels recedes into the distant future

It is becoming increasingly obvious that a new treaty with the EU, as the people in Brussels envisage, is out of the question for Switzerland. The filigree Swiss state system, which is based on direct democracy decisions and the responsible cooperation of free citizens, can simply not be subordinated to the Brussels-controlled single market concept serving the interests of global corporations. The busy behaviour of the head of the Federal Department of Foreign Affairs FDFA, Ignazio Cassis, who is currently drafting so-called “benchmarks” for a future negotiating mandate, is of little help. The fact is that his State Secretary Livia Leu, after ten inconclusive rounds of talks in Brussels as the fifth head of delegation throws in the sponge and prefers to become ambassador in Berlin. In Berne they are reckoning with a postponement of the EU dossier until at least after the parliamentary elections next October.

Now the Swiss Trade Union Federation (SGB) is speaking plainly: it continues to oppose the deterioration of protection of Swiss wages and also rejects the threatening “total market liberalisation” in the public service. Current Concerns has interviewed SGB central administrator Reto Wyss (see "No downsizing of Swiss public service!").
  It is about time that the EU ban on state aid is finally put on the table. Until today, the Federal Council has tried to hide the fact that a new treaty with Brussels would, among many other negative effects, also result in a massive restriction of our still relatively good public service.
  A recent decision by the EU Commission against the French freight railways Fret SNCF is also making Swiss readers sit up and take notice: The Commission condemned the subsidisation of the railways by the state as illegitimate. In order to avoid the threat of fines and repayments running into billions (!), the French government finds itself forced to split up and privatise the railways. Similar proceedings are under way against German railways Deutsche Bahn.¹
  Switzerland would suffer the same fate if it were to enter into new “negotiations” with – respectively dictates from – Brussels. This is because state financing and even more so the ownership of the Confederation (SBB, Post) or the cantons and municipalities (power plants, water supply) would contradict the anti-social EU ban on state aid.²

Swiss Federation of Trade Unions
rejects liberalisation of the public service

At its delegates’ meeting of 2 June 2023, the Swiss Trade Union Federation (SGB) reaffirmed its position on European policy: “The opening up to the EU must benefit employees in Switzerland. A promising negotiating mandate requires binding commitments to maintain wage protection and guarantees against cuts in the public service”³
  In its resolution, the SGB delegates’ meeting stated: “With regard to the public service the discussion is going in the wrong direction. There is a threat of a complete opening of the electricity market, although liberalisation in the EU in recent years has led to an enormous price increase. In the case of the railways, too, there is the threat of a misconceived opening of the market as well as wage dumping, but also price dumping.” And further: “Public transport in Switzerland (ÖV) must not be weakened. The SGB rejects the opening up of the public transport market. The same applies to a subsidy review, which would weaken public transport.”
  The delegates’ assembly admittedly considers an agreement in the area of public health and crisis management to be positive, but rejects a “reduction of the already too low public subsidies in the health sector, enforced by subsidy jurisdiction”. Why then a health agreement with Brussels? It corresponds to Switzerland’s sovereignty to reach agreements with individual neighbouring countries or other European states on an equal footing, as we have always done.

Social democrats to support the trade unions
 and Switzerland demanded!

It is more than disconcerting when National Councillor and SP parliamentary group leader Roger Nordmann declares in the press that Switzerland in a treaty with Brussels of course could not “lever out” the EU rules on wage protection or on the financing of public services. Instead, the Federal Council had to present a legislative package with “EU-compatible forms of public financing of rail transport or other public services”.₄ Switzerland, in anticipatory obedience as a recipient of orders from Brussels? On which side of the table does Nordmann actually sitting? In the midst of all this EU zeal, people seem to forget that they are social and democratic.  •

¹ von Burg, Denis; Aebi, Mischa. “Verhandlungen Schweiz–EU. EU-Vertrag gefährdet die SBB und den Service public” (Negotiations Switzerland-EU. EU treaty endangers the SBB and the public service). In: SonntagsZeitung of 28 May 2023
² Treaty on the Functioning of the European Union (TFEU) Article 107 (1). In so far as the treaties do not stipulate otherwise, any aid granted by a Member State or through State resources, which, by favouring certain undertakings or the production of certain goods, distort or threaten to distort competition, shall be incompatible with the single market in so far as they impair trade between member states.
³ Assembly of Delegates of the Swiss Federation of Trade Unions. Media release dated 2 June 2023
⁴ von Burg, Denis; Aebi, Mischa. “Verhandlungen Schweiz–EU. EU-Vertrag gefährdet die SBB und den Service public” (Negotiations Switzerland-EU. EU treaty endangers the SBB and the public service). In: SonntagsZeitung of 28 May 2023