Brussels welcomes release of Swiss 'cohesion payment'

(MENAFN- Swissinfo) Politicians debating in the Senate on Thursday Keystone / Anthony Anex

The European Union has welcomed the Swiss parliament's decision to unconditionally release the second cohesion contribution. At the same time, the European Commission has insisted on a binding payment mechanism for the future.

On Thursday Switzerland's two parliamentary chambers approved unblocking CHF1.3 billion ($1.41 billion) in payments to poorer European Union members in a bid to thaw frosty ties with its biggest trading partner.

The government wants to free up the“cohesion payment” – frozen in a 2019 row over mutual recognition of stock market rules – as a sign of goodwill after it unilaterally walked away in May from seven years of negotiations with Brussels for an "institutional framework agreement" to cement long-term ties. The talks were scuppered by differences over the draft bilateral treaty that critics said infringed too much on Swiss sovereignty.

More

This content was published on May 26, 2021 May 26, 2021 Citing“substantial differences”, the government has decided not to move ahead with a controversial institutional agreement on relations with the EU.

Cohesion payments are seen as the entry fee for non-EU members like Switzerland or Norway to take part in the European Single Market.

Brussels had been pushing Switzerland for a decade for a treaty that would sit atop a patchwork of over 100 bilateral accords and have the Swiss routinely adopt changes to single market rules.

With the treaty dead, it has blocked any additional Swiss access to the single market , the lifeblood for the export-led Swiss economy, and relegated Swiss-based scientists to the sidelines of its Horizon Europe research programme.

Members of the right-wing Swiss People's Party had opposed authorising the payment, saying there was no assurance it would persuade the EU to soften its hard line on the Swiss.

“Releasing the money alone is no guarantee that Switzerland can take part in Horizon, for example,” Foreign Minister Ignazio Cassis acknowledged during the debate.“That is the risk the government is prepared to take.”

More

This content was published on Mar 18, 2019 Mar 18, 2019 Switzerland should only make another billion-franc“cohesion” payment to the EU if the EU doesn't discriminate against Switzerland, says parliament.

For its part, the EU said after parliament's decision that in order for the money from the second cohesion contribution to be paid out, a memorandum of understanding must be signed between the EU and Switzerland.

This will pave the way for the payments to be made without further delays in order to reduce the economic and social disparities between the regions and to promote cooperation in the area of migration, the EU Commission said in a statement.

However, Brussels also said that this contribution was a“natural, logical return service for Swiss participation in the world's most important single market”. It should not be forgotten that the last tranche of the first cohesion contribution was paid out in 2012, it added.

For the future, a mechanism is needed to ensure that Switzerland makes a financial contribution that meets the standards of the EU and the European Economic Area (EEA) states, the Commission said.

More

This content was published on Jul 20, 2021 Jul 20, 2021 Foreign Minister Ignazio Cassis and the European Commissioner for Budget and Administration Johannes Hahn have met in Brussels for informal exchanges.

More

One of democracy's fundamental pillars is under attack and under scrutiny across the world.

Articles in this story

• Swiss reject framework agreement deal with EU
• Parliament sets conditions on further EU payments
• Swiss and EU ministers have 'good and friendly' chat
• A global stress test for freedom of expression

MENAFN01102021000210011054ID1102898408