Switzerland walks away from EU cooperation deal talks saying demand for free movement not worth it 

Switzerland walks away from EU cooperation deal talks – despite Brussels’ trade deal threats – saying the bloc’s demand to allow freedom of movement is too high a price to pay

  • Bloc threatened to sever trade ties worth £200 billion unless the Swiss bow
  • But Switzerland could not abide EU demands to give access to its labour market
  • It’s yet another bloody nose for Ursula von der Leyen after Brexit finalised in Jan.
  • EU has sought to get a handle on special states like Switzerland and Norway 


Switzerland today walked away from a long-awaited EU trade deal, saying it was not prepared to bow to Brussels’ demands on freedom of movement.

Thirteen years of talks were torched after the Bloc threatened to sever trade ties worth £200 billion unless the Swiss give the EU access to their internal labour market.

Foreign Minister Ignazio Cassis said this would have marked a ‘paradigm shift’ which could result in non-Swiss citizens getting social security rights in the country.

The scrapped talks leave Commission President Ursula von der Leyen with yet another bloody nose after Brexit was finalised in January.

Britain’s departure had brought into sharp focus the need to try and get a handle on economic powerhouses like Switzerland and Norway operating with a special status.

Swiss President Guy Parmelin attends a press conference after Switzerland announced it was walking away from the talks with Brussels

Switzerland will now have ‘third country’ status like the UK, meaning it loses certain privileges and will have to put up with more EU red tape.

But like Britain, Switzerland was not prepared to allow a bureaucratic power grab which threatened its sovereignty.

The relationship between Switzerland and the EU had previously relied upon more than a hundred bilateral agreements on various trade issues, but Brussels wanted this consolidated.

The scrapped talks leave Commission President Ursula von der Leyen with yet another bloody nose after Brexit was finalised in January

The scrapped talks leave Commission President Ursula von der Leyen with yet another bloody nose after Brexit was finalised in January

Swiss President Guy Parmelin went to Brussels in late April for talks with EU chief Von der Leyen.

But the two sides hit an impasse after the EU refused to budge on demands from Parmelin to exclude key issues relating to state aid, wage protections and freedom of movement from the pact.

In a statement, the Swiss government, known as the Federal Council, said it had conducted Wednesday an overall evaluation of the outcome of talks on the agreement.

‘It concluded that there remain substantial differences between Switzerland and the EU on key aspects,’ it said.

‘The conditions are thus not met for the signing of the agreement. The Federal Council today took the decision not to sign the agreement, and communicated this decision to the EU.’

The move brings the negotiations to a close, the statement said.

The European Commission said it regretted Switzerland’s decision.

There is concern that failing to secure the framework deal might rock Switzerland’s relationship with the EU at a time when more than half of all Swiss exports go to the bloc, which all but surrounds the landlocked country.

The agreement was aimed at rejigging five major agreements within 120 bilateral accords that govern non-EU member Switzerland’s relations with the bloc.

Among other points, they touch on access to the single market and fine-tuning applicable Swiss and EU laws.

Since 2008, the EU has insisted Switzerland must sign the agreement before concluding any new bilateral deals.

Despite Wednesday’s decision, Bern said it wanted further political talks with Brussels on the road ahead.

‘The Federal Council nevertheless considers it to be in the shared interest of Switzerland and the EU to safeguard their well-established cooperation and to systematically maintain the agreements already in force,’ the government said.

‘It therefore wishes to launch a political dialogue with the EU on continued cooperation.’