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Resistance to the framework agreement has increased. However, Chancellor Ignazio Cassis does not want to resign from the contract. In the interview, he also comments on the transfer of the former EU chief negotiator, Roberto Balzaretti, to Paris.
Chancellor Cassis: The last part of the trip must be done by someone else.
Switzerland and the EU concluded negotiations on an institutional agreement at the end of 2018. However, the Federal Council decided this week to send Livia Leu, a new head of negotiations, to Brussels. How do you have to understand that?
The Federal Council did not complete the negotiations in 2018. We have not initialed the draft agreement and technically we have never completed the negotiations. After extensive consultation, the Federal Council informed the EU in a letter in June 2019 that it would like improvements. We will make specific proposals to the EU in the coming weeks.
Does that mean that the new chief negotiator is tasked with continuing to negotiate the treaty with the EU?
The Federal Council instructs the new Secretary of State to modify the three controversial points – state aid, wage protection and Union Citizenship Directive – in such a way that they can win a majority in domestic politics. He will determine the position in the coming weeks.
However, from the EU’s point of view, the negotiations have concluded. Brussels categorically rejects the renegotiations.
Yes, there is a difference.
Still, do you expect Brussels to keep moving?
The EU has informed us that it is ready to act on our proposals with an open mind.
In the opinion of the Federal Council, is it necessary to modify the text of the treaty for the agreement to be supported by a majority in Switzerland, or are additional statements sufficient?
The Federal Council will discuss and decide on this in the coming weeks. But a binding solution is needed for the controversial points.
In Bern it is speculated that he was forced to abandon his former chief negotiator, Roberto Balzaretti. Is that correct?
As a matter of principle, I do not comment on media speculation. Roberto Balzaretti becomes ambassador in Paris and continues to enjoy my full confidence. With Rome, Berlin and Vienna, Paris is one of the four most important positions in the EU. If I no longer trusted him, I would not have sent him to Paris.
But it is a demotion from Secretary of State to Ambassador.
The title is linked to the function, and not to the value of the person. Other directors are also back in the field, and an ambassador returning to the Bern headquarters from an outpost does not necessarily retain his title either.
This week you told the media that the Federal Council did not want to renegotiate with Balzaretti.
The Federal Council has looked for the best way to open the new phase of the framework agreement and go to Brussels. Of course, it is a difficult task. The Federal Council thanks Roberto Balzaretti for his achievements. But now he thinks someone else should do the last part of the trip.
Was it the undoing of Balzaretti that he worked hard publicly for the negotiated draft contract and therefore could no longer have made credible new demands on Brussels?
There are different reasons and perceptions that led to the Federal Council’s decision. For us it is important to send a free person to Brussels for the new phase. That was no longer the case for Roberto Balzaretti.
Balzaretti is already the fourth chief negotiator to leave. Do you pay the price for the Federal Council not knowing how to proceed with the framework agreement?
With the new phase we need new heads and a breath of fresh air. That is part of everyday diplomatic life. But it also shows how difficult the subject is. Since saying no to the EEA in 1992, Switzerland has repeatedly struggled with its relations with the EU. It will stay that way.
He had seven candidates for the post of Secretary of State. What was the deciding factor for Livia Leu?
Your rich and extensive experience. Also, as an ambassador in Paris, she has been very close to EU politics for the past two years. He has shown great negotiating skills in various situations, for example in Tehran. We hope this will help you in the talks with Brussels.
Was it a close race?
We had some strong candidates. Fortunately: that speaks to the strength of Swiss diplomacy. Livia Leu has long struck me as a solid, experienced and calm personality. When I came to the FDFA, I appointed her president of the junior commissions of the diplomatic and consular corps and of the SDA. Selection is important for the right employees of tomorrow. Livia Leu did her job well.
Despite new strengths and a breath of fresh air: does the framework agreement still have a chance?
Yes, you have a chance. Otherwise, the Federal Council would have canceled the exercise. But the matter remains difficult.
In your opinion, what clarifications are necessary for the agreement to obtain a majority?
The complementary measures concern wage protection: the Federal Council wants to guarantee the current level of wage protection. The second point concerns the Union Citizens Directive, which the Bundesrat does not want to adopt. After all, this is state aid. The provisions of the draft framework agreement should not have horizontal effects. This means that they should not extend to areas that are not covered by the framework agreement, and in particular not to the area of the 1972 Free Trade Agreement. The five existing and future market access agreements are covered.
In the 2019 letter, the EU Federal Council says: When these three points are resolved, we will sign. Is this still true?
Yes, the 2019 letter is still valid.
Now, more and more critics outside the SVP demand that the Federal Council not only have to renegotiate these three points, but also on sovereignty issues and, therefore, on the central questions of the treaty: the approval of the law and the role of the Court of Justice of the European Union in the settlement of disputes. Will the Federal Council comply with these demands?
We will decide in the next few weeks.
How do you evaluate it? Does the treaty have a chance in parliament or at the polls if there are no improvements on the sovereignty issue?
Today is too early to judge. It depends on how the discussions with the EU develop.
In hindsight, was it a mistake that the Federal Council did not involve employers, unions and the entire population before? They were left to believe that the Swiss red lines, for example in wage protection, would not be exceeded.
As long as there was no contract text, we were only talking about a ghost. The Federal Council published the draft text in December 2018 and decided to include the most affected groups. On the basis of this draft, we had a factual discussion. For a long time there was talk of “foreign judges” in the abstract. With the draft we now know that the arbitral tribunal and not the European Court of Justice will decide a dispute.
But the competence to interpret EU law rests with the Court of Justice of the European Communities. Given the great resistance, the question arises as to why Switzerland really needs this agreement. What are the advantages?
Ensure our prosperity. We earn every second franc from our wallet thanks to the export industry. And 60 percent of that in exchange with the EU. If we want to continue to have easier access to the European internal market, we have to reach an agreement with the EU on the framework agreement. If we reject the treaty, the Swiss economy will have to reorient itself and look for other sales markets. It should be noted that trade with Baden-Württemberg and Bavaria is considerably higher than with China. If we want to consolidate and expand the bilateral path, we have to resolve institutional issues.
Opponents say there will still be bilateral agreements and the free trade agreement with the EU without a framework agreement. Isn’t that enough?
Without a framework agreement, bilateral agreements will erode. Like an app on a smartphone, contracts lose their functionality without regular updates. New EU rules are no longer adopted. Now the takeover takes place in autonomous reconstruction. The EU has accepted it. However, this will no longer be so easy in the future. The 1972 free trade agreement does not offer the same access to the domestic market as bilateral agreements. Without a framework agreement, trade with the EU will decline. We are becoming less attractive to investors. In the long run, it will affect our jobs and our prosperity will decline.
How quickly would the population feel it?
This is the coffee grounds reading. The average citizen will feel nothing for the moment. But already in three to five years we will notice that uncertainty about market access is weakening Switzerland as a business location. This reduces investments. These are the oxygen for our economy and, therefore, also for our prosperity.
What happens if the Federal Council rejects the contract?
In discussions with the EU we also want to clarify what happens if an agreement is not reached. We remain neighbors, friends and partners. The bilateral ones still exist.
Would it be better if the Federal Council rejected the treaty or left the decision to parliament?
Currently, the Federal Council is considering such considerations. But you’re not ready to make up your mind yet.
You knew about the old EU Commission and are now dealing with the new one. Has Brussels’s attitude towards Switzerland changed?
The EU Commission negotiates at the request of the EU Council, that is, the EU member states. The negotiating mandate has not changed. The tones may change, but the music remains the same.
NZZ Live event: Switzerland and the EU: a difficult relationship
Christoph Blocher, Tiana Angelina Moser, Pierre-Yves Maillard and Christa Tobler will discuss the free movement of people, the value of bilateral agreements and the sovereignty of Switzerland, as well as their future prospects.
Monday, October 26, 2020, 6:30 pm, Bernhard Theater Zurich
Tickets and more information can be found here.
