EU ambassador in St.Gallen: “Switzerland must make proposals”
IHK event
The EU ambassador speaks plainly in St.Gallen: “The five and the way for Switzerland: it won’t work!”
The EU in this: The bilateral treaties with Switzerland only have a future if the institutional questions remain clarified. This was made clear by EU Ambassador Petros Mavromichalis at an event organized by the Eastern Swiss Chambers of Commerce and Industry. Former Swiss chief negotiator Jakob Kellenberger pleaded for a swift decision by Switzerland – and against years of waiting and consulting.
Industry in eastern Switzerland earns two out of three francs in the EU. No wonder, she repeatedly emphasizes the great importance of the bilateral agreements for Switzerland. Last summer, when the resistance to the framework agreement between Switzerland and the EU grew, the Chambers of Commerce and Industry St.Gallen-Appenzell and Thurgau spoke out loudly – and defended the draft treaty for the institutional agreement.
At the end of May, the Federal Council broke off negotiations on the agreement. One-sided. How shall we continue? That was exactly the basic question of an event organized by the two IHKs on Wednesday evening in the St.Gallen Lokremise.
Out of the impasse: EU is waiting for proposals from Switzerland
Various stage guests were invited to shed light on the problem from an outside perspective – especially Petros Mavromichalis. The Greek has been the EU ambassador for Switzerland and the Principality of Liechtenstein since last year. He stressed – entirely a diplomat – that the EU and Switzerland must continue to have “very good relations”. Nonetheless, the two partners would find themselves at a dead end after the unilateral termination of the negotiations by Switzerland. The EU’s position has long been established: Without an institutional framework, the bilateral agreements would have no future and would gradually expire. It is up to Switzerland now to make concrete proposals as to how the institutional questions can be resolved: “The five and the way for Switzerland – that won’t work!”
“We have made various concessions”
Mavromichalis also said that the EU does not insist on its position out of “malice”, but out of fairness towards its references and third countries. He emphasized that from the perspective of the bilateral agreements were originally intended as a provisional solution – with regard to possible EU accession. “Maybe it was our fault that we didn’t put it down in writing at the time.” Switzerland is also a special case with these treaties: no other country enjoys this privilege in relation to the EU. After Brexit, Great Britain also wanted bilaterals, but the Union refused because the path was “very complicated”.
The ambassador emphasized that the EU had made various concessions to Switzerland in the negotiations. So the Union agreed to Switzerland’s demand for an arbitration tribunal – “what a difficult decision it was”. The EU gave everything for a suitable solution.
Kellenberger: “The bilaterals were not a matter of course”
The man who negotiated the Bilaterals I for Switzerland was also on the stage: Jakob Kellenberger from Ausserrhode, former State Secretary for Foreign Affairs. He also stated: “It was incomprehensible that the EU came up with the solution with the bilateral agreements at that time.” The negotiations came after Switzerland refused to join the EEA in 1992. Given the current situation, Kellenberger says:
“I believe that by breaking off the negotiations on the framework agreement, Switzerland has given itself a very good option to strengthen the bilateral approach.”
Switzerland wants to take its time with a specific proposal to Brussels. In Bern there is talk of a restart in 2024. From Kellenberger’s point of view, however, it is of no use simply to wait now. Switzerland is a “world champion” in holding internal consultations. Above all, one thing is now needed: “A decision by Switzerland’s will, at the highest political level.” Switzerland is allowed to be self-confident in talks with the EU, but it also has to sharpen its “sense of magnitude”. “Geographically, Switzerland is where it is – in the middle of Europe. Without a trusting relationship with the EU there WILL be no promising future. “
Medtech companies are already suffering
The EU exports around 7 percent of its export volume to Switzerland, and vice versa it is over 50 percent. What happens if the bilaterals are actually not saved and later “erode”, as it is called in technical jargon? The EU ambassador said: «The EU will survive because it is big. And Switzerland will survive because it is rich. But we could both save the costs. ”
Certain costs, at least, are already noticeable on the Swiss side, as representatives from the medical technology industry made clear on the podium: New approval of their products in the EU would have “torn the ground away from under their feet” for dozens of Swiss companies in the past few months, such as the Rheintaler entrepreneur Thomas Köppel said.
Liechtenstein expert: “Switzerland mainly discussed with itself”
Georges Baur, research officer at the Liechtenstein Institute in Bendern, made critical comments on Switzerland’s behavior in the negotiations on the framework agreement. The concessions made by the EU were hardly noticed in this country, “because Switzerland was mainly discussing with itself.” It has also been ignored for 30 years that “there are cornerstones for market participation in the EU”. It is not useful for such discussions to briefly “peek out red lines”. And finally: “You may not necessarily slam your negotiating partner’s nose in front of the door.”
Bänziger: “A legal instance is needed to settle disputes”
Industry in Eastern Switzerland is sticking to its stance, as Markus Bänziger, Director of the St.Gallen-Appenzell Chamber of Commerce, said in conclusion: The bilateral agreements should be secured and additional agreements should be sought. Then Switzerland and the EU would need a dispute resolution body – a legal, not a political one. “Because if politics makes these decisions, then the more powerful will always win.” And that is not in Switzerland’s interest.