For the Swiss tech industry, unobstructed access to the EU single market is key. With 56 percent of exports going to the EU, it is the most important sales market and provides an indispensable pool of workers. In today’s highly tense global situation, politically stable relations with the EU, which form an essential foundation for smooth economic cooperation, are gaining further in importance. This is true with respect to both Switzerland’s prosperity and its security. Euphoria would be misplaced, as every agreement requires compromises from both sides. Nevertheless, Switzerland has negotiated the Bilaterals III well and achieved a lot. The advantages clearly outweigh the disadvantages, and no alternative to the successful bilateral approach would offer Switzerland more benefits.
Swissmem will continue to engage in the parliamentary deliberations to oppose negative elements in the package such as the unacceptably costly association with Erasmus. In the area of immigration, the same still applies: policymakers must finally establish clear and consistent order in the asylum system. However, Swissmem rejects an immigration fee that would be demanded from EU workers.
Bilaterals III: the bridge to equal treatment with EU and EEA states
We find ourselves in a transitional phase of global order: moving away from a rule-based, multilateral world towards bloc formation, power politics and isolationism. With “Buy European”, steel-protection measures and discriminatory depreciation laws, the EU and individual member states are creating trade barriers that would severely impact the export-oriented tech industry. Switzerland must avoid being gradually excluded as a third country. That would be an own goal for the EU in any case: the Swiss tech industry is a key player in European value chains and makes a decisive contribution to both the competitiveness and resilience of the EU.
Switzerland must therefore remain closely integrated into the single market. This will only work with the Bilaterals III, which create a level of economic integration comparable to that of the EEA. Without the Bilaterals III, Switzerland has no foundation on which to seek exemptions from discriminatory EU measures. With the Bilaterals III, however, Switzerland can build a bridge, as shown this October by the European Commission’s decision regarding the Industrial Accelerator Act. Switzerland will, in principle, be treated like EU and EEA states.
Referendum question: decision on a mandatory, one-of-a-kind referendum by the Council of States
A pioneering decision by the Council of States in the autumn session deliberations on the Bilaterals III was the question of a referendum: The Council of States has decided to subject the agreements to a mandatory one-of-a-kind referendum with a popular majority and majority of the cantons. In this way, the Council of States is creating a further obstacle that the agreements will have to overcome.
Free movement of persons: labour market immigration must not be endangered by stricter rules
Switzerland has also achieved a lot in the negotiations in relation to the free movement of persons. Migration remains limited primarily to gainful employment. Expulsion from the country as a punitive measure is still possible. The registration procedure for economically motivated short-term employment will be retained. However, Switzerland had to make concessions in terms of residence permits, which may lead to higher welfare expenditure.
The Council of States has revised several of these concessions in domestic implementation, which constitutes a break with the free movement of persons: The requirement for EU citizens to submit a criminal record extract when applying for a residence permit in Switzerland as well as restrictions in terms of the right of permanent residence deviate from the outcome of the negotiations and are not compliant with the agreements. While Swissmem understands the Council of States’ motives, amendments should, however, be formulated in a way that complies with the agreements.
For Swissmem, an immigration fee is the wrong solution. The focus should not be on workers from abroad who pay taxes, are integrated and make an important contribution to the prosperity of our country. The immigration of urgently needed workers who are willing to integrate must not be rendered difficult or even impossible by problems in other areas of migration.
Therefore, the problems in the area of asylum must finally be solved and irregular migration combated.
Electricity agreement: long-term secure and cost-effective electricity supply
The new electricity agreement will be debated by the Council of States in the winter session. It will link Switzerland with the European domestic electricity market, reinforce grid stability and improve the plannability of cross-border electricity current flows. The agreement is of strategic importance to the Swiss technology industry. It opens up the electricity market – albeit while retaining freedom of choice, allows optimum use of hydroelectric power and will tend to result in lower electricity prices.
Wage protection: the Council of States approves the controversial measure 14 too
Swissmem has always advocated a liberal labour market as a key success factor for Switzerland as an industrial base. This also guided our position during the domestic implementation of the Bilaterals III. The compromise reached by social partners on the accompanying measures and the controversial measure 14 on protection against dismissal were approved by the Council of States. Whereas Swissmem has always supported the compromise with 13 measures, the tech industry association rejected the irrelevant measure 14 on protection against dismissal – but has no longer opposed it since improvements to it were made. Swissmem is now counting on the unreserved support of the trade unions in favour of the Bilaterals III in the referendum campaigns.
Cohesion payments: a justifiable price for EU market access
Finally, the Bilaterals III and thus the secure and improved access to the biggest economic and partnership of values have a price: the Council of States has approved the cohesion payments amounting to a total of CHF 3.3 billion. Swissmem considers this to be a justifiable contribution.
Horizon Europe strengthens innovativeness – Erasmus+ offers too little added value
The Council of States has decided on Switzerland’s involvement in Horizon Europe and Erasmus+. For Swissmem, full association for Switzerland in the EU’s Horizon Europe research programme is of great importance. Around one quarter of the funded projects favour Swiss SMEs which in turn gain access to expertise, networks and innovative markets. By contrast, Swissmem has rejected participation in Erasmus+ that was decided on by the Council of States. Compared with the existing Swiss solution, the additional benefit of association is too modest, given the considerably higher costs. Instead, vocational training in Switzerland should be strengthened further.