At its meeting today, the Federal Council reaffirmed the strategic necessity for Switzerland to maintain stable and predictable relations with the EU and its member states. First, this is due to the importance of bilateral ties with the EU and the positive impact these relations have on Switzerland's prosperity, stability and security. Second, the global geopolitical situation is prompting Switzerland to place cooperation with EU member states, in particular neighbouring countries, on a stable and legally secure basis.
Foreign markets are integral to the performance of an open economy such as Switzerland's, a country with no major raw materials and a limited domestic market. Switzerland is committed to ensuring that its participation in these markets is as far-reaching and geographically diversified as possible. This also bolsters resilience in crises. At the same time, Switzerland is concentrating its efforts on countries and regions that are most valuable in economic and trade policy terms. This makes the EU, which has a 53% share in the trade in goods and services, Switzerland’s most important trading partner by far. The single market is also one of the largest internal markets in the world.
Bilateral approach as best option
Following its decision in May 2021 to discontinue negotiations on the framework agreement, the Federal Council re-examined the available options: continuing the bilateral approach, joining the EEA or EU, concluding a comprehensive free trade agreement or taking no action at all. It concluded that the bilateral approach, which has made a key contribution to Switzerland's success for the past 25 years, remained the most favourable solution. The option to take no action at all was viewed in particular as contrary to Switzerland's interests – this would not have meant retaining the status quo but would have resulted in increasingly limited participation in the single market and less cooperation, impacting negatively in turn on Switzerland's security, prosperity and independence.
Swiss–EU package as stabilising force
With the new Swiss–EU package, the Federal Council intends to stabilise and develop the tried-and-tested bilateral approach. The package is a continuation of Switzerland's customised relationship with the EU and does not present any change in course for Swiss foreign policy. It will enable Switzerland to meet its main European policy objective of mutual market participation in clearly defined sectors as well as cooperation in selected areas of interest, while maintaining the greatest possible political room for manoeuvre. No constitutional amendment is therefore necessary. Domestic accompanying measures on wage protection, immigration, land transport and electricity also safeguard Switzerland's essential interests. In addition, the agricultural section of the expanded agricultural agreement has been excluded from the dynamic adoption of EU law developments and the quality of public service provision will be maintained. The new package has two separate sections on stabilisation and development.
The section on stabilisation contains:
(a) anchoring at sectoral level of institutional elements in existing single market agreements on the free movement of persons, Mutual Recognition Agreement land and air transport (factoring in exceptions, safeguards and principles); (b) including state aid provisions in existing land and air transport agreements; (c) cooperation agreements in the fields of research, education and outer space; (d) regular Switzerland's contribution to strengthening cohesion in the EU.
The section on development corresponds to Switzerland's interests in a targeted expansion of bilateral relations with the EU. This breaks down into:
(a) new single market agreements on electricity (incl. institutional elements and state aid) and food safety (incl. institutional elements); (b) a new cooperation agreement on health.
The Federal Council is also seeking to step up political dialogue with the EU. The new package provides for the establishment of a high-level dialogue at ministerial level and institutionalised parliamentary cooperation.
95 EU legal instruments and 35 Swiss laws
The agreements between Switzerland and the EU, which were initialled on 21 May 2025, were approved by the Federal Council today. They are included among the documents for the consultation process along with the legislative texts necessary for domestic implementation and the explanatory report. The process, which will last until 31 October 2025, will be carried out with the cantons, political parties, umbrella organisations of the municipalities, cities and mountain regions, umbrella organisations of the business community, and other interested parties. The feedback will then be analysed with a view to preparing the final dispatch for Parliament (both houses).
In order to implement the new package, 95 legislative acts are of significance for Switzerland – requiring amendments to 32 Swiss laws (12 with substantial amendments and 20 with minor amendments) as well as the creation of three new laws. These are listed in the bill submitted for consultation together with the agreements concerned and the relevant EU legislative acts. On 30 April 2025, the Federal Council voted in favour of submitting the package to an optional referendum.
Economic benefits of the new Swiss–EU package
In view of the upcoming consultation process and Switzerland's close economic ties with the EU, five external studies on the economic impact of the new package were commissioned. These have been incorporated into the explanatory report published today. While the study on the partial adoption of the Citizens' Rights Directive quantifies the impact this would have on state institutions, the other studies clearly conclude that the new package would benefit the Swiss economy.
The theoretical calculations show that without Bilaterals I, in 2045 Swiss GDP would be 4.9% lower, as the field of research would see Switzerland downgraded to non-associated third country status, rather than full association and in the presence of operational agreements.
The electricity agreement in the development section of the new package is of particular economic importance as it strengthens security of supply and tends to result in lower electricity prices overall. This in turn has a positive impact on economic activity, bolsters the competitiveness of the Swiss economy, and improves household purchasing power. The internationally-binding safeguarding of border capacities could potentially secure additional trading profits up to over CHF 1 billion per year in the period from 2030 to 2050. Compared to a scenario without an agreement, electricity prices in 2050 are likely to be 14% lower with the new electricity agreement.
Next steps
Switzerland and the EU have set out transitional rules on the scope of their partnership lasting from the end of 2024 until the new package comes into force. To this end, the Federal Council and EU Commission will sign a joint declaration with retroactive effect on 24 June 2025 in Brussels.
The agreement on Switzerland's participation in EU programmes (EUPA) is expected to be signed by the Federal Council in November. The EUPA was approved by the government on 9 April 2025. It enables Switzerland to be associated, retroactively from 1 January 2025, to Horizon Europe, the Euratom programme and the Digital Europe Programme.
The signing of the remaining Swiss–EU agreements and protocols and the adoption of the dispatch to Parliament are expected to take place in the first quarter of 2026.
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