Federal Council takes note of the joint report on International Geneva and its Future

Switzerland, thanks to International Geneva, is today the foremost centre of global governance, with over 2,700 international conferences and gatherings every year and 30 international organisations (IO) based in the region. About 200,000 experts and delegates and 3,000 heads of state, heads of government and ministers visit the city every year. The city hosts 172 permanent missions and an international community of more than 42,000 persons.

International Geneva is a major asset to a Swiss foreign policy because of the influence that our country acquires as a result of the city’s prominent role. It also benefits our domestic policy, providing privileged contacts with federal offices and information that is essential for the development of specific policies. Its importance for Switzerland as a whole is such that we can refer to International Switzerland thanks to the prominent role of Geneva. The impact of Geneva considerably exceeds the regional level. It is an opportunity and challenge that concerns the entire country.

However, International Switzerland, through Geneva, and its host state policy, is now faced with rapid changes in the international environment. Global governance is becoming more fragmented, there is increased competition from emerging states and IOs and their member States are experiencing budget problems as a result of the financial crisis.

To tackle these challenges the Federal Council believes that it is necessary to strengthen the attractiveness and competitiveness of Switzerland as a host state and as a centre of global governance. The strategy that it has adopted for this purpose is the result of the work of the International Geneva task force created in November 2012 by the Federal Department of Foreign Affairs (FDFA). This body worked together with the Permanent Joint Political Group (GPCP), a forum for dialogue between the Confederation and the Canton, with which the  City of Geneva is associated. There are two main pillars of this strategy, and  six priorities.

Improvements will be made to the host state instruments, especially in the renovation of buildings and equipment. The strategy also stresses the need to develop Genevan and Swiss training, reflection and know-how in the field of global governance, for example by anticipating topics that are likely to be on the international agenda and by enhancing the profile of the actors in Geneva  dealing with these subjects. Potential synergies resulting from the unique ensemble in a single location of international organisations, permanent missions, non-governmental organisations and academic institutions also need to be exploited more effectively. A joint observatory will be established to closely monitor developments in the international sector in Geneva.

The implementation of this strategy means that communication on Switzerland's host state policy and cooperation between the authorities concerned will also need to be strengthened. A think tank known as "Geneva +" will be established, with a mandate to discuss the future challenges of International Geneva and the evolution of global governance.

For further information:   

Jean-Marc Crevoisier
Head Information FDFA
+41 (0)79 763 84 10

Further information:

International organizations in Switzerland

Address for enquiries:

FDFA Information
+41 (0)31 322 31 53

Publisher:

The Federal Council
Federal Department of Foreign Affairs

The bilateral way has proven to be successful up to now and has ensured access for Swiss economic players to specific sectors of the EU internal market. The bilateral way has also been regularly supported by the people of Switzerland and the cantons, winning majorities in several referendums.

The Federal Council has now reaffirmed its determination to consolidate and further develop Switzerland’s bilateral approach to its relations with the European Union. Such a step would cement the achievements of the bilateral way. In addition, market access and legal security for Switzerland, its companies and citizens, would be strengthened and further developed in specific new areas.

This approach should be renewed on the basis of the key values shared by the EU and Switzerland that have been identified in recent weeks. A new institutional agreement would give due consideration to the intensity of Swiss-EU bilateral relations - with currently about 20 main agreements and more than 100 sector agreements. Problems concerning market access can only be settled through harmonisation of the relevant laws. The institutional renewal that the Federal Council envisages does not create a new situation; it merely shows the way ahead along the path that Switzerland has been treading for quite some time.

Institutional issues

The renewal of the bilateral way requires solutions to be found on the institutional questions. This hinges on the following four points: the dynamic adjustment of the agreements on market access to developments in EU law, the supervision and the interpretation of the agreements, and the settlement of disputes. In June 2012, the Federal Council submitted its proposals to these points to the EU following consultations with the Foreign Affairs Committees, the cantons and the social partners. Informal discussions were then conducted with the EU on this basis led by the FDFA State Secretary, Yves Rossier, and the Chief Operating Officer of the European External Action Service (EEAS), David O’Sullivan.
These talks enabled several options to be identified that showed possible solutions from technical and legal perspectives. The Federal Council has now instructed the FDFA to create a draft negotiating mandate on the basis of one of these options by August 2013. This option is based on the idea that questions concerning the interpretation of those EU laws that Switzerland has adopted, or will adopt, are submitted to the European Court of Justice (ECJ).

Negotiating guidelines

In this context, it is very important that the functioning of Swiss institutions be respected, in particular those aspects concerning the principles of direct democracy and the country’s independence. The Federal Council therefore excludes any form of automatic adoption of EU law. Any adoption of new EU law into a bilateral agreement must be subject to a decision by Switzerland.

Because Switzerland is not an EU member state, a balance must be struck between the rights and duties of the parties. For this reason, supervision of the implementation of the agreements must remain within the competence of the national authorities. In any application of the institutional solutions to existing agreements, neither the area of application nor the objectives of the agreements may be changed. 

Medium-term strategy of the policy on the EU

The Federal Council has also decided to approach the institutional questions in the framework of a medium-term strategy in three stages. This approach covers all the current dossiers on the EU. The first step covers entry into the institutional questions and the relevant decisions in accordance with the above-mentioned guidelines. The second step will cover in particular the continuation and conclusion of the negotiations on an electricity agreement, the start of the negotiations on Switzerland’s participation in the chemicals ordinance REACH, the launch and conclusion of the negotiations in the cooperation dossiers such as research and education as well as progress in the negotiations on the EU emissions trading system (ETS). The corresponding, but not yet fully completed mandates are expected to be adopted after the summer recess. The Federal Council will also be mindful to maintain parallelism between these dossiers and progress in the areas of taxation of savings income and corporate taxation as well as the current dialogue with the EU on these issues. In light of progress in all these negotiations, the Federal Council will decide on a possible renewal of the enlargement contribution to reduce the economic and social disparities in the enlarged European Union.

In a first step, the FDFA has been instructed to plan a summit meeting at the end of 2013 in collaboration with the EU. The summit would only be held if the milestones and their objectives set out in the framework of the medium-term strategy have been achieved. 

Next steps

The proposal for a negotiating mandate on institutional questions is scheduled to be presented to the Federal Council after the summer recess. 

On this basis, the Foreign Affairs Committees, the cantons and the social partners will be consulted. The Federal Council will then make an analysis and reach a decision on the mandate. If it comes to negotiations, and if the negotiations were to be concluded, the resulting agreement would be presented to Parliament and to the people for their opinion.

The other negotiations with the EU are to be continued in parallel with the launch of the negotiations on the institutional questions.

For further information:                

Jean-Marc Crevoisier
FDFA Information
079 / 763 84 10
jean-marc.crevoisier@eda.admin.ch

Further information:

Taxation of savings
Electricity / Energy
Emissions trading
Press Conference of the Federal Council (de)

Address for enquiries:

FDFA Information
+41 (0)31 322 31 53

Publisher:

The Federal Council
Federal Department of Foreign Affairs