The European Commission, the EU’s governing body, said on Tuesday that it had formal permission to open discussions with Switzerland on a wide range of measures that will form the basis for future cooperation. The aim of the negotiations is to update and deepen relations while ensuring fair competition between Swiss and EU companies.

On 8 March 2024, Switzerland’s Federal Council approved a negotiation mandate. Now both sides have formal approval to start discussions.

On Thursday, Swiss President Viola Amherd said she will meet EU Commission President Ursula von der Leyen in Brussels on Monday.

The discussions are unlikely to be plain sailing. Electricity is likely to be a contentious subject. The Swiss government wants to ensure consumers can continue to have access to state protected supply with regulated prices. The Federal Council also wants to maintain key state aid provisions for electricity production, particularly for electricity produced renewably.

Wage protection is another area of potential friction. EU residents in lower cost border areas pose a risk to Swiss wage levels. These workers can afford to earn less and have the potential to put downward pressure on Swiss pay. This is of particular concern in Geneva, Basel and Ticino, regions with many cross-border workers.