Three degrees of separation between Switzerland and the European Union

Invalidable for the Federal Council the obstacles of wage protection, the directive on the free movement of EU citizens and state aid

On Friday, May 7, 2021, a delegation of the Federal Council consisting of the President of the Swiss Confederation, Guy Parmelin, Federal Councillors Alain Berset and Ignazio Cassis as well as the Federal Chancellor, Walter Thurnherr, met with the heads of the government parties in the so-called “von Wattenwyl talks”.
The discussions once again focused on the pandemic and its consequences as well as European policy.
After the renewed increase in the number of infections since mid-February 2021, the number of new cases, hospitalizations and deaths due to the coronavirus stabilized in the second half of April.

The “von Wattenwyl talks” and the search for a compromise

One in ten inhabitants of Switzerland has already been vaccinated

This trend is continuing in May, supported by the progress of the vaccination campaign.
More than 10% of the population is now fully vaccinated and vaccination capacities will continue to increase in May.
The Federal Council delegation and government parties discussed upcoming openings and the progress of the vaccination campaign.
Cautious new reopenings seem possible; the Federal Council will discuss this at its May 12 meeting. The COVID certificate, which will be implemented by the end of June, was also discussed.

In Switzerland the COVID19 certificate is universal and cannot be falsified.

Just -2.9% drop in Swiss GDP in 2020

Last year, the crisis due to COVID 19 caused the strongest contraction of the Swiss economy in decades. Gross domestic product in 2020 fell by 2.9 percent compared to the previous year.
The tightening of health measures led to a sharp reduction in business activity in some segments of the service sector.
The federal government responded by adopting various stabilization measures.

Anti-COVID measures gone, Switzerland will start to run

More than CHF 40 billion from the Confederation

In total, the Confederation has so far allocated just under 40 billion francs for the management of the pandemic (2020: 15 billion in actual expenditures; 2021: 23.6 billion in already approved expenditures), plus guarantees and sureties amounting to around 20 billion francs.
In addition, the massive use of short-time work has stabilized the labor market and largely maintained the purchasing power of workers.

Business support for foreign infrastructure projects

Still insurmountable differences between Bern and Brussels

With regard to European policy, the Federal Council delegation informed the participants about the progress of the dossier.
Substantial differences remain between Switzerland and the EU on the outstanding points of the institutional agreement concerning the protection of salaries, the directive on the free movement of EU citizens and state aid.
The Federal Council has reiterated that without satisfactory solutions in these areas the agreement cannot be concluded.
After consultation with the Foreign Policy Committees on 26 May and consultation with the cantons, it will make an overall assessment and decide on the next steps.

Council of Europe: Who will represent the Swiss territories?

Many useful reflections before new “thematic” embargoes

Relations with China were also discussed. At its meeting on March 19, 2021, the Federal Council for the first time adopted a public strategy on this subject, in which it recognizes the importance of China and with which it intends to strengthen the coherence of Switzerland’s activities with this country.
As part of the global human rights sanctions regime, the EU has imposed restrictive measures against individuals and entities from North Korea, Libya, Eritrea, South Sudan, and Russia, but also against four Chinese individuals and one Chinese entity.
A possible adoption of these so-called “thematic” EU sanctions under the Embargo Act is currently being discussed by the federal government.
The Federal Council has not yet made a decision on the matter.

Switzerland now says yes to the “China Strategy 2021-2024”.