Swiss abandon years of EU talks and reject treaty


Switzerland is not in the European Union but has signed up to many of its policies, such as freedom of movement.The relationship is currently governed by more than 120 bilateral deals, and a failure to replace them with one framework deal could harm ties."We regret this decision, given the progress that has been made over the last years," the EU Commission said.The EU-Switzerland free trade agreement dates back to 1972.The Commission - the executive body for the EU's 27 member states - said that without an EU-Swiss framework agreement, modernising that relationship would not be possible. Existing deals were "not up to speed" and the impact of Switzerland's decision would have to be analysed, it warned.

The Swiss government has highlighted three issues: protection of wages, rules governing state aid, and the right of EU citizens working in Switzerland to claim Swiss welfare benefits as part of freedom of movement.Foreign Minister Ignazio Cassis said Switzerland could not accept EU demands for equal rights for EU workers as it would have meant an unwanted "paradigm shift" in Switzerland's migration policy. The government also feared it could lead to higher social security costs.The two sides can rely on the patchwork of bilateral agreements but those deals will eventually go out of date, so Switzerland will not have access to a potential electricity union or other areas of the single market that change.However, one bilateral deal lapsed only this week on trade in medical technology products and the Swiss MedTech organisation said it would cost the industry 114m Swiss francs (£90m; €104m) and 75m every year afterwards.

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