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Sunday 01 September 2019 5:35 pm

Swiss minister says country unlikely to sign EU deal soon

By: Harry Robertson

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Switzerland and the European Union are unlikely to reach an agreement this year over their long-awaited partnership treaty, debate over which has caused relations to sour, the country’s economy minister said today.
BASEL SWITZERLAND - FEBRUARY 10: A swiss National Flag and an european Flag wave beside a road sign at the tree nations frontier on February 10, 2014 at Basel,Switzerland. Swiss citizens voted with a narrow majority in favour of measures to curb immigration from European Union countries in a move that will require Swiss officials to renegotiate several treaties with the EU. The referendum was launched by the right-wing Swiss People's Party (SVP). Approximately one quarter of people living in Switzerland are foreigners. (Photo by Michele Tantussi/Getty Images)

Switzerland and the European Union are unlikely to reach an agreement this year over their long-awaited partnership treaty, the delay of which has caused relations to sour, the country’s economy minister said today.

Read more: Eurozone output beats expectations in August but economy remains weak

Economy minister Guy Parmelin also said it would be “risky” for post-Brexit Britain to join the European Free Trade Association (EFTA), which also includes Iceland, Norway and Liechtenstein.

The EU-Switzerland partnership agreement has been under negotiation for over four years, and the EU has urged Switzerland to sign the deal before new figures take over the bloc’s key positions in mid-autumn.

The lengthy process led to a souring of relations in July, when both sides froze the other out of their stock exchanges.

Economy minister Parmelin told the Sonntags Zeitung newspaper today that he thought a deal before the end of the year was unlikely. He cited the opposition of Swiss workers, employers and regions to various elements of the talks.

Switzerland’s economic relations with the EU are governed by over 100 treaties which let the mountainous country have access to most of the bloc’s single market.

One sticking for some Swiss groups has been that the treaty, which would deepen and simplify the complex relations, could limit government subsidies and erode Switzerland’s traditionally high wages.

Another is that the Eurosceptic Swiss People’s Party has won the most votes in Switzerland’s recent elections and opposes the free movement of people altogether.

Parmelin, who is from the Swiss People’s Party, said: “We want a good solution that can win majority support, and that is not the case at the moment.”

Addressing reports that he would encourage Britain to join EFTA, he said: “I have not heard that this is needed by Britain. If Britons want that, we will review it, but I believe it would be risky.”

“Given its size, Britain would dominate the rest of EFTA.”

Read more

UK inks trade deal with Switzerland – despite shouting match

UK and Switzerland officials signing a trade deal, highlighting international services agreement and bilateral cooperation

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