Switzerland-EU Framework Agreement: Growing resistance

There is a lot of hustle and bustle in the federal administration. For months, armies of civil servants and diplomats have been ‘negotiating’ diligently with the EU Commission on ‘open points’ in the controversial negotiation package. On 6 November, the Federal Council assessed the situation internally. However, the Federal Council then refrained from going before the media and informing the public. The reasons for the Federal Council’s silence are not hard to guess.
  Fortunately, there is growing resistance to Switzerland being co-opted by the EU. Following the neutrality initiative, which opposes the de facto integration of our country into NATO, Kompass Europa, an association of Swiss entrepreneurs with around 2,500 members, has now launched its popular initiative against Switzerland’s institutional integration into the EU. A survey conducted by the gfs opinion research institute in Bern comes to a similar conclusion. According to the survey, the majority of Swiss voters want good relations with the EU countries (which nobody questions), but they do not want to sacrifice the Swiss state model to the ‘bureaucratic monster of the EU’¹. This survey will be reviewed later on.

The Federal Council
‘taking stock’ without a stance

The Federal Council’s press release of 6 November consists of a lot of warm air and little substance.² Negotiations are “well advanced” on most dossiers, while others are “continuing apace, with the aim of achieving a convergence of positions”. And so on and so forth. In reality, since the publication of the “Common Understanding” in December 2023, it has been clear on the table that there is nothing left to negotiate. The outcome of the negotiations is in this document, the EU Commission stated unequivocally from the very beginning. A “negotiation result” in the style of the Brussels bureaucracy: a paper written by the Commission itself, in English and in the unmistakable EU style that is difficult for citizens to understand. Its contents were presented in Current Concerns.³
  By relaunching talks with Brussels in March 2024, the Federal Council has manoeuvred itself into a dead end against all reason and contrary to the interests of the country and its population. As was to be expected, the EU has shown no willingness to make concessions, not even in absolutely essential areas such as wage protection in line with Swiss standards or moderate control of excessive immigration. According to the press release, the Federal Council is therefore continuing its efforts to work with the Conference of Cantonal Governments, the social partners and business organisations in order to push through an ‘internal implementation’ of the requirements from Brussels in Swiss legislation. However, his dialogue partners will not forget that the Swiss people will ultimately decide.
  We must not be distracted from the essentials by the many individual worksites (14 thematic negotiating teams are involved): The elephants in the room remain the de facto mandatory adoption of EU law and the case law of the European Court of Justice ECJ, not to mention the ban on state aid - three no-goes in Switzerland, which is fundamentally federalist and characterised by direct democracy.
  Surprisingly, even the domestic editors of the “Neue Zürcher Zeitung” are asking themselves after the Federal Council’s unconvincing media release: “What’s the point of all this?” After all the warnings from the EU turbos that our economy and Switzerland itself would hardly be able to survive without a framework agreement, editor Fabian Schäfer has to admit today: “Apart from the universities and some export industries that are suffering from the EU’s political pressure, there are hardly any acute problems to be felt today”.⁴ Compared to companies in EU countries struggling to survive, the Swiss economy is much more resilient (see Box: It’s obvious: Independence and innovation are the key).

Swiss entrepreneurs: sovereignty
and direct democracy come first

After economiesuisse, the organisation representing primarily large Swiss corporations, had long been claiming to speak for “the” Swiss business community, for some years now the two business groups autonomiesuisse and Kompass Europa have been raising their voices, with thousands of members who are not willing to relinquish Switzerland’s sovereignty and direct democracy for (perhaps) slightly fewer pinpricks from Brussels.
  On 1 October 2024, Kompass Europa launched a popular initiative aimed at preventing an institutional agreement with the EU (see Box: Federal popular initiative “For a direct democratic and competitive Switzerland”). The fact that the independence of Switzerland is more important to many successful Swiss entrepreneurs than closer integration into the EU economic area is causing considerable unrest in the federal parliament and the mainstream media. And that‘s right!

The arguments of Kompass Europe
against an institutional agreement

Reading the entire line of argument is highly recommended in order to better understand the content and, above all, the deeper meaning of the initiative as a whole and its individual parts. The authors show a high level of education in constitutional law and politics, which unfortunately can no longer be taken for granted today, and a deeply rooted Swiss ethos. A lesson in political science at its best.⁵ Here are some excerpts with additions.

• Preserving direct democratic participation. The aim of the initiative and the initiative text are explained here in an overall view: “Switzerland has a unique political system characterised by direct democratic decisions and a high degree of stability. This system has contributed significantly to our great social consensus and today’s prosperity. The automatic adoption of law and subordination to EU jurisdiction provided for in the Framework Treaty now jeopardise our self-determination to the highest degree. We are fighting against this. The initiative relies on the people and strengthens democracy. Far-reaching treaties in which Switzerland cedes part of its sovereignty in determining the applicable laws to third parties should be judged by the people and the cantons. Only those who are afraid of democracy are afraid of popular decisions.”

• The people should be free to decide. The new Art. 164 para. 3 is explained here. It does not want to authorise the adoption of laws as a general rule with unpredictable content, but only in relation to a narrowly defined set of facts and specifically enshrined in a law or agreement: “The EU wants Switzerland to adopt all EU legislation relevant to the internal market, now and in the future. If we oppose this with a referendum, for example, we will be de facto forced to adopt them by means of compensation payments and political pressure. This is what we want to prevent with our initiative. The people should be able to decide before equalisation measures are threatened. The adoption of important legislative provisions should therefore be submitted to the people first. Because anyone who has to make a decision under threat of punitive measures cannot make a free decision.”

• Remaining sovereign, competitive and successful in the long term. The main issue here is the mandatory referendum (Art. 140 para. 1): “[…] The EU wants Switzerland to commit to adopting the law. But we do not want the EU to make our laws. We do not want to pay for the EU’s mistakes. That is why we must not become an EU member or a passive EU member. We guarantee this by stipulating in the constitution that Switzerland will always hold a mandatory referendum on international treaties of this scope.”

• We are politically and structurally incompatible with the EU. “The Swiss political system (direct democracy, federalism, subsidiarity principle, concordance) is not compatible with the hierarchically organised EU. Our liberal and decentralised economic and social order is also in stark contrast to the EU. The same applies to Switzerland’s legislative powers in comparison to the centralised authorities of the EU. […]”

• Switzerland as a business location must not be weakened. Regarding the beginning of the initiative text (Art. 101 para. 1): “The sustainable strengthening of Switzerland as a business location can only succeed if Switzerland continues to pursue an independent economic policy in the future and democratic control over independent economic regulation is maintained. The free choice of trading partners should be ensured and the threat of a monopoly relationship with the EU prevented”. This is the argument that will probably cause the Federal Council and economiesuisse the most stomach ache: An independent Swiss economy based on direct democracy and federalism is actually better off than one that is integrated into the EU.

• For the Swiss economy, the rest of the world is becoming increasingly important compared to the EU. […] With regard to the latter argument, it should be noted: It is not only for the economy that the ‘rest of the world’ is becoming increasingly important. Our country as a whole would do well to remember its history as a cosmopolitan, neutral country with four linguistic cultures that is open to all peoples. This has enabled Switzerland to prosper not only economically. It has taken its place in the world in particular through its peace policy as a neutral location and mediator, through the indispensable humanitarian contribution of the ICRC and its good offices. This needs to be emphasised again. •

¹ Europa im Alltag. 25 Jahre Bilaterale Verträge: Die Sicht der Schweizer Stimmberechtigten. (Europe in veryday life. 25 years of bilateral agreements: the view of Swiss voters.), gfs.bern, 24 Oktober 2024
² Schweiz–EU: Der Bundesrat nimmt eine Standortbestimmung vor. Medienmitteilung des Bundesrates vom 6.11.2024 (Switzerland–EU: Federal Council takes stock.) Press release of the Federal Council dated 6 November 2024)
³ “Alles ganz anders – oder alter Wein in neuen Schläuchen? Untauglicher Neuanlauf des Bundesrates für Verhandlungen mit Brüssel”. (A completely new approach – or just old wine in new bottles? The Federal Council’s failed attempt to restart negotiations with Brussels.) In: Current Concerns No 1, of 16 January 2024
⁴ Schäfer, Fabian. “Die Schweiz soll 150 Rechtsakte der EU übernehmen – der Bundesrat stellt die Weichen für das Finale der Verhandlungen”. (Switzerland is to adopt 150 EU legal acts – the Federal Council sets the course for the final round of negotiations.) In: Neue Zürcher Zeitung, 6 November 2024
⁵ https://kompasseuropa.ch/kompass-initiative/initiative/