Switzerland and EU: New agreements pose challenges for companies!

Switzerland and EU: New agreements pose challenges for companies!

With the entry into force of a new package of agreements between the EU and Switzerland on December 20, 2024, bilateral relations are facing a decisive turning point. This agreement aims to create a clear and stable legal framework for companies and citizens on both sides. The focus is on ten modernized and new agreements in various areas such as freedom of movement, air and land transport and the electricity market.

A central component of the package is the mandatory dynamic legal transfer. This means that Switzerland will have to adopt future EU law, but without having a say in the design of these regulations. If legal adoption is refused, the EU can take compensatory measures, which underlines the need for clear framework conditions and negotiations.

Regulation of state aid

A particularly critical aspect of the new agreement concerns state aid. Loud aargauerzeitung.ch State aid is a common instrument of economic policy. However, these aids can distort the market, which is why they are subject to strict regulations in the EU. The agreement stipulates that Switzerland must introduce existing aid regulations in other areas.

In order to guarantee compliance with these rules, Switzerland will have to set up a control system. This ensures that state aid is monitored transparently and helps to avoid distortions of competition.

Details of the agreement package

The agreement includes, among other things, important regulations on freedom of movement, which are supplemented by a tailored version of the Union Citizens' Directive. Union citizens can receive extended residence rights in Switzerland. However, there are also protective clauses that allow immigration restrictions in the event of economic problems.

In addition, both sides must agree on various exceptions and conditions. These include a right of permanent residence after five years, which only applies to employed people, as well as an expanded reporting requirement for self-employed people. There are also regulations for equal treatment of EU and Swiss students when it comes to tuition fees.

Other key aspects of the package concern Switzerland's participation in EU programs from 2025, financial contributions to the EU and the mutual recognition of product certifications in numerous sectors. Mechanisms to deal with health threats should also be implemented, strengthening cross-border cooperation in health care.

Outlook for the next steps

The contents of the contract will be clarified in the coming months before the agreement is presented to the Swiss Parliament at the beginning of 2026. However, the agreement on the Union programs should be concluded in autumn 2025. A referendum is scheduled for 2027, ensuring public participation in these crucial relationships.

The EU remains Switzerland's most important trading partner, while the country itself is the fourth most important export destination for EU goods. In 2023, Austria exported goods worth almost 10 billion euros to Switzerland, highlighting the economic interconnection between the two regions. In this context, the new agreement will be of great importance for both sides.