Swiss shrug off EU deadline on bilateral pact
GENEVA: Switzerland shrugged off a deadline set by the EU to agree on future ties, despite Brussels taking a hard line on economic links unless Bern agrees to key demands.
The EU wanted Switzerland to approve a broad deal that would simplify relations, currently defined by a messy set of some 120 bilateral accords, and said it expected an answer Friday to the final terms on the table.
“Significant progress has been made” on reaching a deal, Swiss President Alain Berset told reporters.
But he added that “there are still differences on very important issues” and the Alpine nation’s government needed time for broader consultations.
Swiss Foreign Minister Ignazio Cassis said those consultations may take place in the spring.
The draft agreement on the table covers an array of issues, including the thorny question of free movement of people.
Seeking leverage over Bern, the EU has threatened to not renew the so-called ‘equivalence’ status of the Swiss stock exchange unless the broader deal was agreed.
Equivalence allows EU-based trading platforms to buy and sell Swiss stocks.
If Brussels takes that away, the Swiss exchange faces a huge hit from trade volume losses.
The European Commission said it “respects the will of the Federal Council to consult all the parties concerned” but called for “speedy” negotiations.
For Switzerland – and its steadily robust economy – the consequences of dismissing the EU deadline are not yet clear.
Switzerland last week activated a plan to protect its stock exchange should the EU revoke equivalence guidelines. — AFP