Tough Negotiations: The Secret “Landing Zones” of the Federal Council on the European Question

Ypsomed boss: “Everything is on the right track”

The entrepreneur Simon Michel from Solothurn made the contact. He is CEO of the listed medtech company Ypsomed, which sells injection systems on the other side of the world. In his spare time, he politicizes for the FDP, is a candidate for the National Council and is considered an advocate of bilateral agreements with the EU. He is the central figure of Progresuisse, knows the “landing zones” in detail and says: “This time the Bundesrat did the right thing”.

The new deal gives companies legal certainty, says Ypsomed boss Michel. With the start of negotiations, Switzerland will have immediate access to the Horizon research agreement. And the administration and stakeholders would then be admitted to all major EU technical sub-committees where company standards are discussed – for example in mechanical engineering or in the electricity dossier. Switzerland is excluded today. “Sitting at the table is extremely important for the economy and our country,” he says.

Logistics manager Bertschi: “No more guillotines!”

The face of Autonomiesuisse, Hans-Jörg Bertschi, is more skeptical than Michel. The head of the logistics giant Bertschi had insight into the “landing zones” and says: “There is progress. In principle, we support the road to a new agreement.” But then the but: “The settlement of the dispute is still very unclear. The European Court of Justice (ECJ) still has the final say in many of the future areas of the agreement. It should not be. The Court of Justice as arbitrator is excluded because it is “the court of the opposing party”. In case of disagreements, an independent arbitral tribunal is needed. Otherwise it would be the dreaded “foreign judges” from Brussels. Direct democracy would be endangered.

It is also unclear for Bertschi whether Brussels will completely withdraw the so-called guillotine clause. It states that if one individual agreement is violated, all other agreements with the EU will also become invalid. Bertschi: “If Switzerland automatically adopts EU legislation, it should be free to vote in different parliaments and referenda without the EU threatening to cancel individual contracts.” There is a need for clarification here. He considers only countermeasures such as are customary in international trade to be justified.

‘New agreement not at any price’

The Kompass/Europa association, on the other hand, is hesitant to pass judgment. “We have deliberately been quiet,” said general manager Philip Erzinger. It is not yet clear at what price Switzerland will buy a reorganization of the bilateral agreements. “Should it become known that Switzerland would have to make major concessions in order to sign a new treaty, we will fight for a new agreement with the necessary financial resources and with all our might,” Erzinger said.

One of those bottlenecks is the recognition of the EU Citizens’ Directive by Switzerland. It regulates when EU citizens can receive social benefits abroad without being sent home. The EU is doing everything it can, Switzerland slows down with the argument that freedom of movement only applies to employees, not to benefit recipients.

Erzinger and Bertschi criticize the fact that the Federal Council only provides selective information about the “landing zones”. “There are certain circles that know a lot of details, while others are in the dark. This is not a transparent procedure,’ says Bertschi. “Dear Federal Councilor, make the disputed negotiating points transparent,” Erzinger doubles. The intention is clear: you want to reach the audience with the biting details.

Do not disclose negotiating positions

Ypsomed boss Simon Michel says such demands are unwise. Because that would betray the negotiating position of the Bundesrat, something no entrepreneur would do. “If he publishes the details, the opponents of the agreement will attack him even before the negotiations have started.” This must be avoided at all costs. He knows that the opponents are lurking. Andrew Valda