Switzerland’s European policy€¦ · Sources: State Secretariat for Migration SEM & FSO Total population 8,325,194 Foreign nationals 1,993,916 Cross border commuters 304,117

Federal Department of Foreign Affairs FDFA

Directorate for European Affairs DEA

December 2016

Switzerland’s European policy

Switzerland's European policy, December 2016© Directorate for European Affairs DEA

Content

1. Switzerland at the heart of Europe2. The bilateral approach3. The bilateral agreements4. State of affairs

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The 28 EU countries

EEA

EU membership candidates

Switzerland at the heart of Europe

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A close partnership

• Most important political and economic partner

• Geographical proximity: at the heart of Europe

• Cultural proximity: three out of four Swiss national languages are spoken within the EU.

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Switzerland's involvement in Europe

• Participation in the Council of Europe and OSCE

• Construction of the transalpine rail link (NEAT)

• Peace missions (e.g. in Kosovo)

• Enlargement contribution

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© SBB CFF FFS, SBB Cargo

© OSCE/Sarah Crozier


Contribution to the enlarged EU

• Reduction of social and economic disparities

• Independent contribution to EU Cohesion Policy

• Support for selected concrete projects supervised by Switzerland

Relevance:

• Investment in economic partners

• Increased safety

• Solidarity with the EU

• Strengthening of the bilateral approach

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Foreign population in Switzerland 2015

68.4%

31.6%

EU-28/EFTA: 1,363,736

Other states: 630,180

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Sources: State Secretariat for Migration SEM & FSO

Total population 8,325,194 Foreign nationals 1,993,916Cross border commuters 304,117


Swiss citizens abroad 2015

62%24%

14%

Europe: 472,202(96.5% in EU-states)

America: 183,702

Other states: 106,026

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Source: FDFA, Statistics on Swiss abroad 2015

Total: 761,930


Intense economic relations CH–EU

Services2015 (*2)

Trade 2015 (*1)

Direct investment2014 (*2)

CHF 121bn(72% of CH imports)

EUR 116.4bn EUR 632.3bn

CHF 109bn(54% of CH exports)

EUR 509.4bn EUR 68.6bn Sources: (*1) Swiss-Impex (Total 1), (*2) Eurostat

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Foreign trade with neighboring countries 2015 (bn CHF)

10

13.9

36.6

5.7

12.813.3

47

7.3

16.1

0

10

20

30

40

50

F D A I

ExportsImports

41%59%

Foreign trade volume 2015Neighboring countries Others

47

7.3

13.316.112.8

36.6

13.9

5.7

Source: Swiss-Impex (Total 1)


Comparison of the trade volume (exports/imports in bn CHF)

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CH–Russia: 3.9

CH–China: 31.7

CH–USA: 49.6

CH–EU: 277.7

CH–Baden-Württemberg*: 30.1

Figures according to the Swiss-Impex database ofthe Swiss Customs Administration, 2015

* Federal Statistical Office (DE), 2015


Switzerland's European policy


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The bilateral approach

• CH–EU relations: bilateral sectorial agreements

• Tailor-made contractual solutions

• No co-decision rights for Switzerland at EU level

• Institutional independence of Switzerland

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Bilateral approach: crucial votes

1992 No (50.3%) to the European Economic Area (EEA)1997 No (74.1%) to the initiative «EU membership negotiations:

Let the people decide!»2000 Yes (67.2%) to Bilaterals I2001 No (76.8%) to the initiative «Yes to Europe!»2005 Yes (54.6%) to Schengen/Dublin2005 Yes (56.0%) to the extension of the free

movement of persons (FMP)2006 Yes (53.4%) to cooperation with the countries

of Central and Eastern Europe2009 Yes (59.6%) to the continuation and

extension of the FMP2014 Yes (50.3%) to the initiative «Stop mass

immigration»2014 No (74.1%) «Ecopop» initiative




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The bilateral agreements

• Reciprocal market access / legal harmonization / mutual recognition

• Cooperation / participation programmes• Fiscal issues

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Bilateral approach as a recipe of success


Bilateral agreements Switzerland–EU

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B. I

B. I

I


The first bilateral agreements

1972 Free trade of industrial productsAbolition of obstacles to trade(duties, quotas) for industrial products

1989 InsuranceEqual rights of establishment forinsurance companies(excluding life insurances)

1990 (completely revised, 2009)Customs facilitation and securityRegulation of controls and formalitiesin goods transport (24-hour rule)

Relevance: Mutual market access

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Bilaterals I (1999)

1. Free movement of persons2. Technical obstacles to trade3. Public procurement market4. Agriculture5. Research6. Civil aviation7. Overland transport

Relevance: Easier access to labour, goods and service markets

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© Schweizerische Vereinigung der AOP-IGP

© Flughafen Zürich AG


Bilaterals II (2004)

1. Schengen/Dublin2. Taxation of savings3. Fight against fraud4. Processed agricultural products5. MEDIA6. Environment7. Statistics8. Pensions9. Education, vocational training, youth

Relevance: Enhanced cooperation in other areas, improved economic environment

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21


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• Adoption on 9 February 2014 with 50.3% of the votes and the majority of the cantons

• Core elements according to the new art. 121a Cst

1. Switzerland autonomously regulates immigration.

2. a) Restriction of residence permits through annual quantitative limits and quotas.

b) The right to permanent residence, family reunification and social benefits may be limited.

3. a) Quantitative limits and quotas must be geared towards Switzerland's overall economic interests.

b) Businesses must give priority to persons already resident in Switzerland when hiring staff.

4. No treaties of international public law that infringe the article.

5. Details to be defined at the legislative level.

Initiative «Stop mass immigration»


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1. Better control and limitation of migration

2. Solution on the free movement of persons

3. Strengthening and development of the bilateral approach

Federal Council objectives


Steps to implement the «Stop mass immigration» initiative1. Adoption of the initiative «Stop mass immigration» 2. Adoption of implementation concept3. Adoption of draft amending the Foreign Nationals Act (FNA) and negotiating

mandate to renegotiate the AFMP4. Results of the evaluation of the consultation on the amended FNA 5. Federal Council dispatch to Parliament on the FNA6. Debate in Parliament on amendment of the FNA 7. Vote?

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9.2.2014

20.6.2014

1 2 3 64

11.2.2015

Autumn 2015 Autumn/winter 2016

5

4.3.2016 2017

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Finding a solution on the free movement of persons• The new article on immigration of the Swiss Federal Constitution,

article 121a, is not compatible with the Agreement on the free movement of persons (AFMP).

• The AFMP must be renegotiated within three years in order to adapt to the new Swiss immigration system.

• If within three years there is no implementation at legislative level, the Federal Council will have to implement the new provisions on immigration as per ordinance.

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Decisions of the Federal Council 4.3.2016

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• Unilateral safeguard clause for people from EU/EFTA member states:

→ Federal Council sets annual limits to permits issued to people from EU/EFTA countries if immigration exceeds a certain threshold.

→ Taking into account of the general economic interests

→ Recommendations of a newly established immigration commission

• Additional national measures:

→ Better implementation of the existing law/support measures

→ Combat labour market abuses

→ Better utilisation of the resident workforce

• Dispatch to Parliament on the extension of the FMPA to Croatia

→ Important step towards full association to Horizon 2020


Debate in Parliament on the revision FNA

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• Adoption by the National Council on 21.9.2016 of a three-step model on the implementation of Art.121a Cst on controlling immigration from EU/EFTA citizens

• Decision by the Council of States of 1.12.2016 that provides for a reinforcement of the obligation to register job vacancies as proposed by the National Council (‘local preference light’)

→ The decision of the PIC-S requires companies to invite job-seekers resident in Switzerland who have been recommended by regional employment agencies to a job interview and to provide reasons if the applicant is rejected

• Resolution of differences on the existing proposals: Probable decision by Parliament on the implementation of Art. 121a Cst in the final vote on 16.12.2016


Institutional issues

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Aim: In the framework of the institutional issues, Switzerland and the EU discuss mechanisms for applying the existing and future bilateral agreements in a more uniform and effective manner.

Harmonisationof legislation

Supervision

Interpretation

Dispute settlement


Four aspects of the institutional issues

• Harmonisation of legislation: What procedures should be employed to adjust agreements to new legal developments in the EU acquis?

• Supervision: How can the consistent application of the bilateral agreements be ensured?

• Interpretation: How can the consistent interpretation of the bilateral agreements be ensured?

• Dispute settlement: By what procedures should disputes between Switzerland and the EU be settled?

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Federal Council negotiating mandate

• Harmonisation of legislation: Dynamic adjustment to developments in the EU acquis in accordance with domestic procedures (no automatic adoption)

• Supervision: Each party supervises the application of the agreements on their respective territory; overall supervision is provided by the competent joint committee

• Interpretation: Consistent interpretation of EU law in compliance with the principles of public international law and the jurisprudence of the Court of Justice of the European Union (CJEU)

• Dispute settlement: Settling disputes in the joint committee with the option of addressing the CJEU to interpret legal issues; compensatory measures or suspension of an agreement in the event of unresolved disputes

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Harmonisationof legislation

Supervision

Interpretation

Dispute settlement

State of affairs

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Three options

Political decision

Draft mandate& consultation

Negotiations

MandateCH–EU


Outlook

• 2016/2017: Fundamental decision/popular vote?

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Further information

• Switzerland’s European policywww.fdfa.admin.ch/europe_en

• Publicationswww.fdfa.admin.ch/europe/publication

• Free movement of personswww.personenfreizuegigkeit.admin.ch (German)

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Documents

Switzerland’s European policy€¦ · Sources: State Secretariat for Migration SEM & FSO Total population 8,325,194 Foreign nationals 1,993,916 Cross border commuters 304,117