EUROPEAN COMMISSION

Brussels, 13.6.2025

COM(2025) 308 final

2025/0163(NLE)

Proposal for a

COUNCIL DECISION

on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•    Reasons for and objectives of the proposal

The European Union and the Swiss Confederation (hereafter also referred to as “Switzerland”) are closely intertwined from an economic, historical, cultural, social and political perspective. The Union is Switzerland’s largest trading partner, while Switzerland is the Union’s fourth largest trading partner. Over 1.5 million Union citizens live in Switzerland and just under 450 000 Swiss nationals live in the Union. Every day several hundred thousand frontier workers cross the EU-Swiss border in both directions.

The Union and Switzerland are tied together by multiple bilateral agreements. Through agreements on the free movement of persons, land transport, air transport, trade in agricultural products and mutual recognition in relation to conformity assessment, Switzerland takes part in the Union’s internal market 1 . Through the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation’s association with the implementation, application and development of the Schengen acquis, Switzerland is also a Schengen associated country. During the COVID-19 pandemic, cooperation between the Union and Switzerland on cross-border health threats increased. Switzerland has also traditionally been a strong partner in research and innovation. The country has collaborated with the Union on numerous Union funding programmes focused notably on research, innovation, and education.

While the EU-Switzerland relationship is close, it has also been hampered by several longstanding structural problems. To solve those problems, between 2014 and 2021, the Union and Switzerland conducted negotiations on an Institutional Framework Agreement. The Institutional Framework Agreement would have also provided the governance framework for additional agreements in fields related to the internal market in which Switzerland participates, including agreements for which negotiations had been authorised by the Council, notably on food safety (2003 and 2008) and electricity (2006). In addition, it would have provided the governance framework for the agreement on health, for which negotiations had been authorised by the Council in 2008.

Negotiators reached an agreement on a draft Institutional Framework Agreement text at technical level in November 2018. In reaction to the Federal Council’s refusal to endorse the draft text, negotiations on the other agreements came to a halt as both the Council, in its conclusions of 19 February 2019, and the European Parliament, in its recommendation of 26 March 2019, made the conclusion of new internal market access agreements or improved conditions under existing agreements conditional on the conclusion of the Institutional Framework Agreement. On 26 May 2021, despite further attempts to find solutions, the Swiss Federal Council decided to unilaterally terminate the negotiations on the Institutional Framework Agreement. Switzerland’s unilateral decision brought the bilateral cooperation in the areas of research, innovation and education to a temporary halt.

Following the breakdown of the negotiations on the Institutional Framework Agreement, the European Commission and Switzerland initiated exploratory talks in March 2022 to discuss the future of EU-Switzerland relations. These talks led to a Common Understanding that recorded both sides’ political understanding on the way forward for a future negotiation and identified the components and parameters of a broad negotiating package, as well as landing zones and solutions on key institutional and sectoral points.

The Common Understanding was endorsed by the Swiss Federal Council and by the European Commission in November 2023. Both sides committed to use it as a basis for seeking their negotiating mandates and recorded their ambition of concluding the negotiations in the course of 2024.

Consequently, on 20 December 2023, the Commission adopted a Recommendation for a Council decision to authorise negotiations on the broad package of measures identified and defined during the exploratory talks 2 . The overall objective of these negotiations was to modernise and strengthen bilateral relations between the Union and Switzerland, ensure fair competition between Union and Swiss companies operating within the internal market, and safeguard the rights of Union citizens in Switzerland, including preventing discrimination between citizens of different Member States. This would allow citizens, businesses, and researchers on both sides to fully benefit from the geographical proximity, shared values, and economic links between the Union and Switzerland. In parallel, the Federal Council undertook the corresponding preparatory work on the Swiss side. Following the completion of the relevant processes in Switzerland, the Council adopted a decision on 12 March 2024, authorising the Commission to launch negotiations on the broad package of measures, along with detailed negotiating directives 3 .

The negotiations on the broad package were launched on 18 March 2024 by the President of the European Commission, Ursula von der Leyen, and the then President of the Swiss Confederation, Viola Amherd. The Commission conducted the negotiations in consultation with the Council, including the General Affairs Council and the EFTA Working Party as the special committee appointed by the Council for the purpose of negotiations with Switzerland. Due regard has been given to the resolution of the European Parliament of 4 October 2023 and the Commission kept the European Parliament fully informed in accordance with Article 218(10) of the Treaty on the Functioning of the European Union (TFEU).

After nine months of intense negotiations, Presidents von der Leyen and Amherd announced the successful completion of discussions on all elements of the broad package on 20 December 2024. The broad package includes the update of five agreements that presently give Switzerland access to the Union’s internal market; the update of the dispute settlement mechanism in the Agreement on trade in agricultural products, along the lines of the established practice in the Union’s and Switzerland’s trade agreements with other partners; a new protocol on food safety that will establish a Common Food Safety Area covering all dimensions of the food chain and replacing the sanitary and phytosanitary annexes to the Agreement on trade in agricultural products; a new agreement on electricity that will allow the participation of Switzerland in the Union’s internal electricity market; a new agreement on health that will allow Switzerland to take part in Union mechanisms and bodies addressing serious cross-border threats to health, notably the European Centre for Disease Prevention and Control and the Early Warning and Response System; a new agreement on Switzerland’s permanent and fair financial contribution to economic and social cohesion within the Union, reflecting the level of partnership and cooperation between the parties; and a new agreement that will allow Switzerland to participate in several Union programmes open to association of third countries: Horizon Europe, Euratom Research and Training, ITER/F4E (Fusion for Energy), Digital Europe, Erasmus+, as well as EU4Health, a programme that aims to complement the cooperation established in the health agreement that the two partners negotiated as part of the same broad package. In addition to the elements listed above, the broad package also includes a separate protocol on parliamentary cooperation.

This proposal concerns the signature, on behalf of the European Union, of the following agreements and instruments within the broad package:

–Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons;

–Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons;

–Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport;

–Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport;

–State aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport

–Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road;

–Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road;

–State aid Protocol to the Agreement between the European Community and the Swiss confederation on the Carriage of Goods and Passengers by Rail and Road;

–Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment;

–Institutional protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment;

–Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products;

–Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area;

–Agreement between the European Union and the Swiss Confederation on electricity;

–Agreement between the European Union and the Swiss Confederation on health;

–Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union;

–Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme;

–Protocol between the European Union and the Swiss Confederation on parliamentary cooperation.

This proposal also concerns the provisional application of the agreement on Switzerland’s participation in the European Union Agency for the Space Programme as that agreement foresees its provisional application as from 1 January 2026 or 1 January of the year following its signature, depending on whether or not that signature takes place before 1 July 2026.

The abovementioned agreements and protocols are accompanied by a Joint Declaration by the European Union and the Swiss Confederation on the establishment of a high-level dialogue on the broad bilateral package and the possible further development of the bilateral relations between the European Union and Switzerland, which should be approved and signed on behalf of the Union.

While the agreement on Switzerland’s participation in Union programmes forms an integral part of the broader package negotiated between the two partners in 2024, the Commission decided to expedite the proposal for its signature with the aim of starting its provisional application from 1 January 2025. The Commission made separate proposals to that effect 4 .

The proposed approach will allow to give effect to the transitional arrangements that the Commission granted to Switzerland during the negotiations of the broad package. At the same time, it does not affect the broad package approach established by the Common Understanding and confirmed by the Council mandate.

The agreement on Switzerland’s participation in Union programmes includes a sunset clause, which provides that the provisional application of that agreement will cease if Switzerland does not complete its procedures necessary for the entry into force of the package by the end of 2028. The Commission proposal on the signing of the agreement on Switzerland’s participation in Union programmes therefore provides that it will be concluded as part of the broad package of agreements that were the subject of the negotiations conducted in 2024.

•Consistency with existing policy provisions in the policy area

The introduction of institutional provisions will ensure a more consistent and uniform application of the Union acquis in the parts of the internal market in which Switzerland participates or in policy areas in which Switzerland has committed to dynamic alignment, to the principle of uniform interpretation and application, and to dispute settlement with a role for the Court of Justice of the European Union for matters of Union law. The principles of non-discrimination of Union citizens and a level playing field between Union and Swiss companies is at the heart of the various agreements.

•Consistency with other Union policies

The broad package of the EU-Switzerland agreements fully respects the Treaties and preserves the integrity and the autonomy of the Union legal order. It promotes the values, objectives and interests of the Union, and ensures consistency, effectiveness and continuity of its policies and actions.

The institutional and substantive changes to the existing agreements, as well as, where relevant, the introduction of State aid rules, and the new agreements will help achieve the Union’s policy objectives in the following policy areas:

–internal market,

–competition,

–employment and social affairs,

–free movement of persons, 

–transport,

–agriculture,

–food safety and quality,

–animals and animal products,

–plants and plant products,

–consumer protection,

–energy,

–health,

–trade.

In addition, the agreement associating Switzerland to Union programmes and the agreement on Switzerland’s participation in the European Union Agency for the Space Programme will contribute to furthering the Union’s policy objectives in the following policy areas:

–education and training,

–research and innovation,

–digital economy and society,

–health,

–space.

The Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union will contribute to the achievement of the Union’s policy objectives in relation to its economic and social cohesion.

By ensuring that Switzerland makes an adequate financial contribution to the management and operation of the agencies and bodies in which it participates, and the information systems to which it has access, the Union’s financial interests will be protected.

The forum for cooperation and dialogue between members of the European Parliament and the Swiss Federal Assembly established by a dedicated protocol is in line with the practice in association and strategic partnership agreements the Union concludes with third countries.

While several agreements and protocols covered by this proposal rely on the technical and digital systems for their implementation, the proposal does not introduce any requirements mandating changes with respect to the use or architecture of these systems. The “digital by default” principle remains unaffected by the proposal.

2.LEGAL BASIS

Together, the agreements and protocols that are the subject of the proposed decision are intrinsically linked and constitute a coherent whole and lay down the architecture of a reinforced and comprehensive partnership in a broad range of areas covered by the Treaties, based on an appropriate balance of rights and obligations. Hence, the appropriate substantive legal basis for the proposed Council Decision on the signing of the aforementioned agreements and protocols is Article 217 TFEU. The procedural legal basis is Article 218(5) TFEU, read in conjunction with the second subparagraph of Article 218(8) TFEU. Thus, the legal basis for the proposed Council Decision is Article 217 TFEU, read in conjunction with Article 218(5) TFEU and the second subparagraph of Article 218(8) TFEU.

The Commission considers that the Union has competence in all areas covered by the agreements and protocols which are the subject of this proposal and that therefore the agreements and protocols should be signed by the Union alone.

3.BUDGETARY IMPLICATIONS

In the agreements in fields related to the internal market in which Switzerland participates, the agreement on health and the agreement on the European Union Agency for the Space Programme, Switzerland has agreed to make financial contributions to the Union budget for the management and operation of the agencies and bodies in which it participates, and the information systems to which it has access, taking into account the scope of each agreement.

Where other financing arrangements already exist for agencies or information systems, these are maintained.

The specific financing arrangements for the agencies and information systems are described in the section that details the provisions of the agreements. The Legislative Financial Statement presented with this proposal illustrates the future budgetary implications of these arrangements and their payment modalities.

4.OTHER ELEMENTS

•Implementation by bodies established under the agreements and protocols 

The package of agreements bound together by similar institutional provisions and/or other interlinkages. All agreements covered by the broad package include Joint Committees consisting of representatives of the Union and Switzerland, which largely follow the same model. All agreements in fields related to the internal market, the agreement on trade in agricultural products, the agreement on health and the agreement on Switzerland’s regular financial contribution to the Union’s social and economic cohesion allow for the possibility to set up working groups. Several agreements contain dispute settlement mechanisms, based on the same model, which ensures that breaches of obligations by one of the Parties under the agreement concerned or across the package of agreements can be addressed. Finally, the protocol on parliamentary cooperation sets up a Joint Parliamentary Committee composed of representatives of the European Parliament and of the Swiss Federal Assembly.

•Detailed explanation of the specific provisions of the proposal

Composition of the broad package and nature of the agreements and protocols

The broad package consists of several agreements and protocols that have different purposes and setups, even if they share common elements. The package notably includes agreements and a protocol in fields related to the internal market in which Switzerland participates, an agreement on trade in agricultural products, cooperation agreements, and protocol on parliamentary cooperation. Several of these agreements and protocols are accompanied by joint declarations. The package is completed by a joint declaration on the establishment of a high-level dialogue between the Union and Switzerland.

Agreements in fields related to the internal market in which Switzerland participates

As a result of institutional changes, four out of five existing agreements will be considered as agreements in fields related to the internal market in which Switzerland participates, which has notably implications as regards their interconnection. A new agreement and a new protocol will also have this status.

Existing agreements that will be considered as agreements in fields related to the internal market

–Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons (hereinafter “Free movement of persons agreement”),

–Agreement between the European Community and the Swiss Confederation on air transport (hereinafter “Air transport agreement”),

–Agreement between the Swiss Confederation and the European Community on the Carriage of Goods and Passengers by Rail and Road (hereinafter "“Land transport agreement”),

–Agreement between the Swiss Confederation and the European Community on mutual recognition in relation to conformity assessment (hereinafter “Mutual recognition agreement”).

New agreement and protocol that will be considered as agreements in fields related to the internal market

–Agreement between the European Union and the Swiss Confederation on electricity (hereinafter “Electricity agreement”),

–Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area (hereinafter “Protocol on the Common Food Safety Area”).

Agreement on trade in agricultural products

–Agreement between the European Community and the Swiss Confederation on trade in agricultural products (hereinafter “Agreement on trade in agricultural products”). The amended agreement will no longer be considered as an agreement in a field related to the internal market in which Switzerland participates.

Cooperation agreements

–Agreement between the European Union and the Swiss Confederation on health (hereinafter “Health agreement”),

–Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union (hereinafter “Agreement on cohesion”),

–Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme (hereinafter “Agreement on the Agency for the Space Programme”),

–Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes (hereinafter “Agreement on Union programmes”).

The Agreement on Union programmes will not be described in detail as its signing is the subject of separate proposals 5 .

Protocol on parliamentary cooperation

The Protocol between the European Union and the Swiss Confederation on parliamentary cooperation (hereinafter “Protocol on parliamentary cooperation”) provides a legal basis and mechanisms for political cooperation between the European Parliament and the Swiss Federal Assembly.

High-level dialogue

The “Joint Declaration by the European Union and the Swiss Confederation on the establishment of a high-level dialogue on the broad bilateral package and the possible further development of the bilateral relations between the European Union and Switzerland” will provide a framework for political discussions between the European Commissioner and Swiss Federal Councillor in charge of EU-Swiss relations. High-level dialogues are a common tool the Union relies on to provide impulses to cooperation with third countries in a specific field.

Institutional provisions

(1)uniform interpretation and application: an obligation to interpret and apply the agreements concerned uniformly within the internal market, and, to the extent that they include concepts of Union law, in conformity with the case-law of the Court of Justice of the European Union, both prior or subsequent to the signature of the corresponding agreement;

(2)dynamic alignment: an obligation, subject to limited exceptions, for the parties to integrate into the agreements concerned all legal acts of the Union that fall under their scope; due to its monist legal order, these acts shall become, by their integration into the agreements, part of the Swiss legal order. In exchange, Switzerland will be involved during the preparation of the acts to be integrated into the agreements concerned, for instance Switzerland will participate in the corresponding committees and groups of experts without the right to vote. For historical reasons, in the case of the agreements on mutual recognition and on land transport, Switzerland is obliged to adopt provisions of national law achieving the result to be attained by those acts;

(3)dispute settlement: an effective mechanism for the resolution of disputes based on third-party arbitration; the arbitral tribunal is under an obligation to refer questions regarding provisions of the agreements that involve concepts of Union law to the Court of Justice of the European Union, whose opinions are legally binding on the arbitral tribunal;

(4)interconnection between the agreements: the possibility for the parties to take proportionate and effective compensatory measures as part of a procedure to settle disputes in case where a party considers that the other party has not complied with a decision of the arbitral tribunal; these compensatory measures can be taken in either the agreement concerned or in any other agreement related to the internal market, including the suspension in part or in full of such agreement or agreements.

State aid provisions

Participation in agencies and information systems

Switzerland will gain additional access to agencies and/or information systems under the following agreements in fields related to the internal market in which Switzerland participates: the Free movement of persons agreement, the Mutual recognition agreement, the Protocol on the Common Food Safety Area and the Electricity agreement. Switzerland will also gain additional access to an agency and information systems under the Health agreement.

The above-mentioned standard provisions will apply to the financing arrangements linked to the additional access to agencies and information systems Switzerland will gain via the broad package. In principle, these standard provisions should apply to the financing arrangements linked to any further access to agencies, bodies, information systems and other activities to which Switzerland may gain in the future under agreements that are part of the package or under further agreements the Union and Switzerland may conclude.

The operational contribution that will be part of Switzerland’s annual financial contribution will be based on a contribution key defined as the ratio of the Gross Domestic Product (GDP) of Switzerland at market prices to the GDP of the Union at market prices 6 . The contribution key will be applied to the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question, subject, where appropriate, to adjustments that take into account the scope of an agreement. The operational contribution for the information systems and other activities will be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget (such as work programmes or contracts). The annual participation fee will amount to 4% of the operational contribution.

All reference amounts will be based on commitment appropriations.

Free movement of persons agreement

–the European network of Employment Services (EURES) as established by Regulation (EU) 2016/589 7 ,

–the Electronic Exchange of Social Security Information (EESSI) as established by Regulation (EC) No 883/2004 and Regulation (EC) No 987/2009 8 ,

–the modules of the Internal Market Information system (IMI) as established by Regulation (EU) 1024/2012 9 relating to the posting of workers, services, professional qualifications, the European Professional Card, Regulated Professions and the Single Digital Gateway.

Participation in the EURES platform will promote labour mobility, facilitate the exchange of job vacancies and job seeker profiles and ensure a high-quality matching across languages and national contexts, including through the use of the European Skills, Competences, Qualifications and Occupations classification (ESCO).

Air transport agreement

Land transport agreement

A protocol on State aid is attached to the agreement and will be accompanied by a joint declaration. The amending protocol will also be accompanied by a joint declaration.

Mutual recognition agreement

The protocol foresees Switzerland’s access to the European Food Safety Authority (EFSA), as established by Regulation (EC) No 178/2002 17 , and includes the standard appendix on its rights, privileges and immunities as well as those of its staff. The protocol also foresees a financial contribution of Switzerland in accordance with the above-mentioned standard financial modalities to the financing of EFSA as well as the following information systems:

–the Europhyt Portal, as established by Commission Directive 94/3/EC 18 ,

–the Rapid Alert System for Food and Feed (RASFF), as established by Regulation (EC) No 178/2002 19 ,

–the platform for sanitary and phytosanitary certification (TRACES), as established by Regulation (EU) 2017/625 20 , and

–the Animal Diseases Information System (ADIS), as established by Regulation (EU) 2020/2002 21 .

Joint declaration on the establishment of a high-level dialogue between the Union and Switzerland

–to promote the mutual understanding and cooperation on the negotiated broad bilateral package and the possible further development of their bilateral relations;

–to discuss issues of mutual interest, in particular Switzerland’s participation in the internal market and possibilities to strengthen their partnership; and

–to evaluate the implementation of the broad bilateral package, the work of the Joint Committees and the possible further development of their bilateral relations.

Signing and texts of the agreements

The texts of the agreements and protocols are submitted to the Council together with this proposal. The texts of the joint declarations accompanying various agreements or protocols are submitted together with this proposal, together with a joint declaration on the establishment of a high-level dialogue between the Union and Switzerland and two unilateral declarations by Switzerland with regard to respectively the Free movement of persons agreement and the Health agreement.

Table 1: Overview of institutional and other provisions common to the agreements in fields related the internal market in which Switzerland participates and the Health agreement

Table 2: Provisions on State aid common to the Electricity agreement and the State aid protocols to the Agreements on air transport and on land transport

2025/0163 (NLE)

Proposal for a

COUNCIL DECISION

on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 217, in conjunction with Article 218(5) and the second subparagraph of Article 218(8) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)On 12 March 2024, the Council authorised the Commission to open negotiations with the Swiss Confederation (hereafter also referred to as “Switzerland”) for a broad package of measures related to bilateral relations with Switzerland, comprising of institutional and State aid provisions in, and, where necessary, specific adaptations to, agreements between the Union and Switzerland in fields related to the internal market 26 , of an agreement on Switzerland’s participation in Union programmes and an agreement that forms the basis for Switzerland’s permanent contribution towards reducing economic and social disparities between regions 27 . The Council had also authorised the Commission to open negotiations with Switzerland on new agreements on electricity, health, food safety, the participation of Switzerland in the European Union Agencies for the Union Space Programme and for Railways, and on the amendment of the Agreement between the European Community and the Swiss Confederation on air transport to allow for cabotage.

(2)The Commission has negotiated, on behalf of the Union, a broad package of agreements which includes protocols on institutional, State aid and amending provisions to existing agreements between the European Community and the Swiss Confederation in fields related to the internal market in which Switzerland participates, a Protocol to the existing Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area, an Agreement between the European Union and the Swiss Confederation on electricity, an Agreement between the European Union and the Swiss Confederation on health, an Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union, an Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes, an Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme, as well as a Protocol between the European Union and the Swiss Confederation on parliamentary cooperation.

(3)The institutional protocols lay down an obligation for the Joint Committee to integrate all acts of Union law falling within the scope of the agreements as well as provisions to ensure that Switzerland is bound by the rules in question. They ensure the uniform interpretation and application of all agreements in fields related to the internal market in which Switzerland participates and that, where the application of those agreements involves concepts of Union law, these are interpreted and applied in accordance with the case-law of the Court of Justice of the European Union. The institutional protocols lay down an effective mechanism for the resolution of disputes based on arbitration, including the referral to the Court of Justice of the European Union of all questions of Union law arising from the case. In case of non-compliance with the decision of the arbitral tribunal, proportionate compensatory measures may be adopted in the agreement concerned or in any of the agreements in fields related to the internal market in which Switzerland participates.

(4)The amending protocols to the existing agreements make the necessary substantive changes consistent with the new institutional framework. In addition, the amending protocol to the agreement on air transport provides for the mutual exchange of cabotage rights.

(5)The State aid protocols to the existing agreements on air transport and land transport guarantee a level playing field for Switzerland’s participation in the internal market in the areas covered by those agreements. Switzerland will apply substantive and procedural rules, including surveillance and enforcement mechanisms, equivalent to those which apply within the Union.

(6)The amending protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products provides an update of the agreement’s dispute settlement mechanism, along the lines of the established practice in trade agreements of the Union.

(7)A separate protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishes a Common Food Safety Area covering all dimensions of the food chain. This protocol includes the institutional provisions which are common to all agreements in fields related to the internal market in which Switzerland participates.

(8)The new Agreement between the European Union and the Swiss Confederation on electricity lays down the rules and conditions under which Switzerland can participate in the internal electricity market. The agreement includes the institutional provisions which are common to all agreements in fields related to the internal market in which Switzerland participates as well as rules on State aid which are almost identical to those which apply in the areas of air and land transport.

(9)The new Agreement between the European Union and the Swiss Confederation on health aims at strengthening cooperation between the Union and Switzerland regarding serious cross-border threats to health and applies, by analogy, the institutional provisions which are common to the agreements in the fields related to the internal market in which Switzerland participates. This agreement is linked to Switzerland’s participation in the Programme for the Union’s action in the field of health (“EU4Health Programme”).

(10)The new Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union establishes the legal basis and lays down the parameters for Switzerland’s regular financial contribution, within the framework of the broad package, to the reduction of economic and social disparities in the Union. The agreement includes a dispute settlement mechanism; in case of non-compliance with an arbitral ruling, proportionate compensatory measures may be adopted in any of the agreements to which the package relates.

(11)The new Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme lays down the conditions under which Switzerland can participate in the work of the Agency.

(12)Identical provisions in the different institutional protocols and new agreements ensure Switzerland’s financial contribution to the costs of the information systems and Agencies in which it participates.

(13)The Protocol between the European Union and the Swiss Confederation on parliamentary cooperation establishes a Joint Parliamentary Committee as forum for dialogue and debate between members of the European Parliament and the Swiss Federal Assembly, with a view to furthering the mutual understanding of and reflection on the broad EU-Switzerland relationship, including its possible further development.

(14)The agreements and protocols that are the subject of this decision constitute a coherent whole and lay down the architecture of a reinforced and comprehensive partnership in a broad range of areas covered by the Treaties, based on an appropriate balance of rights and obligations. The decision on the signing of these agreements and protocols should thus be based on the substantive legal basis provided in the Treaty on the Functioning of the European Union for the establishment of an association involving reciprocal rights and obligations, common action and special procedure.

(15)With the aim to increase the breadth of their cooperation, the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme provides that the Parties shall apply it provisionally, in accordance with their respective internal procedures and legislation, as from 1 January 2026, if the date of signature of that Agreement is before 1 July 2026, or as from 1 January of the year following its signature, if the date of signature of that Agreement is after 30 June 2026. That agreement should therefore be applied provisionally, pending its entry into force.

(16)The signing of the Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes is the subject of separate procedures.

(17)The signing of the Joint Declaration between the European Union and the Swiss Confederation on the establishment of a high-level dialogue on the broad bilateral package and the possible further development of the bilateral relations between the European Union and Switzerland on behalf of the European Union should be approved.

(18)The agreements and protocols that are the subject of this decision should be signed on behalf of the Union and the joint declarations accompanying those agreements and protocols should be approved,

HAS ADOPTED THIS DECISION:

Article 1

The signing, on behalf of the Union, of the following agreements and protocols is hereby authorised subject to their conclusion 28 :

(a)Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons;

(b)Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons;

(c)Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport;

(d)Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport;

(e)State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport;

(f)Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road;

(g)Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road;

(h)State Aid Protocol to the Agreement between the European Community and the Swiss confederation on the carriage of goods and passengers by rail and road;

(i)Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment;

(j)Institutional protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment;

(k)Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products;

(l)Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area;

(m)Agreement between the European Union and the Swiss Confederation on electricity;

(n)Agreement between the European Union and the Swiss Confederation on health;

(o)Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union;

(p)Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme;

(q)Protocol between the European Union and the Swiss Confederation on parliamentary cooperation.

Article 2

1.The signing of the Joint Declaration between the European Union and the Swiss Confederation on the establishment of a high-level dialogue on the broad bilateral package and the possible further development of the bilateral relations between the European Union and Switzerland is hereby approved 29 .

2.The following joint declarations accompanying agreements and protocols referred to in Article 1 of this Decision are hereby approved:

(a)the following joint declarations accompanying the amending protocol referred to in Article 1, point (a), of this Decision 30 :

–Joint Declaration on Union citizenship;

–Joint Declaration on preventing and acting against abuse of rights conferred by Directive 2004/38/EC;

–Joint Declaration on refusing social assistance and terminating residence prior to the acquisition of permanent residence;

–Joint Declaration on the notification of the taking up of employment;

–Joint Declaration on the Convention of the Recognition of Qualifications;

–Joint Declaration on job vacancies;

–Joint Declaration on common objectives regarding the freedom to provide services up to 90 working days and ensuring posted workers’ rights;

–Joint Declaration on effective control systems including Switzerland’s dual enforcement system;

–Joint Declaration on the principle of “Equal pay for equal work in the same place” and on a proportionate and adequate level of protection of posted workers;

–Joint Declaration on the participation of Switzerland in the activities of the European Labour Authority;

–Joint Declaration on the declaratory registration system of frontier workers;

–Joint Declaration concerning the inclusions of two EU legal acts in Annex I to the Agreement;

(b)the joint declaration accompanying the State aid protocol referred to in Article 1, point (e), of this Decision 31 ;

(c)the joint declaration accompanying the amending protocol referred to in Article 1, point (f), of this Decision 32 ;

(d)the joint declaration accompanying the State aid protocol referred to in Article 1, point (h), of this Decision 33 ;

(e)the joint declaration accompanying the agreement referred to in Article 1, point (m), of this Decision 34 .

3.The Council takes note of the following declarations by Switzerland:

(a)Declaration by Switzerland on measures to be taken in respect of self-employed persons in the context of the notification procedure for work-related short-term stays accompanying the amending protocol referred to in Article 1, point (a), of this Decision 35 ;

(b)Declaration by the Swiss Confederation regarding the inclusion of the institutional elements by analogy in the Agreement on Health accompanying the agreement referred to in Article 1, point (n), of this Decision 36 .

Article 3

Subject to reciprocity, the agreement referred to in Article 1, point (p), of this Decision shall be applied provisionally in accordance with Article 15(3) of that agreement 37 .

Article 4

This Decision shall enter into force on the day of its adoption.

Done at Brussels,

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT

“REVENUE”- FOR PROPOSALS HAVING BUDGETARY IMPACT ON THE REVENUE SIDE OF THE BUDGET

PART I:

EUROPEAN UNION AGENCY FOR THE SPACE PROGRAMME

1.NAME OF THE PROPOSAL:

Proposal for a Council Decision on the signing of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation.

2.BUDGET LINES:

Part I details the financial impact of the Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme (hereafter the “Agreement on the Agency for the Space Programme”). Part II details the financial impact of the other agreements in the broad package that foresee a financial contribution of Switzerland to various agencies and information systems.

Revenue line (Chapter/Article/Item):

–Article 04 10 01 – European Union Agency for the Space Programme (EUSPA) – external assigned revenue

The revenues will be assigned to the following expenditure line (Chapter/Article/Item):

–Article 04 10 01 – European Union Agency for the Space Programme (EUSPA) – voted budget.

3.FINANCIAL IMPACT 38

    Proposal has no financial implications

    Proposal has no financial impact on expenditure but has a financial impact on revenue

    Proposal has a financial impact on assigned revenue

The effect is as follows:

(EUR million to three decimal place)

4.ANTI-FRAUD MEASURES

Article 325 of the Treaty on the functioning of the European Union (TFEU) requires the Commission to counter fraud and any illegal activities affecting the financial interests of the Union. Preventing and detecting fraud is therefore a general obligation for all Commission Services in the framework of their daily activities involving the use of resources.

Any fraud or irregularities involving Union funds has a particularly negative impact on the reputation of the Commission and the implementation of Union policies. The current Commission Anti-Fraud Strategy (CAFS) (COM(2019)196) was adopted on 29 April 2019, to replace the 2011 Strategy. It is a policy document setting out the Commission’s priorities in the fight against fraud in view of the 2021-2027 multiannual financial framework. The 2019 CAFS’ main objectives are to 1) “further improve the understanding of fraud patterns, fraudsters’ profiles and systemic vulnerabilities relating to fraud affecting the EU budget” (data collection and analysis), and 2) “optimise coordination, cooperation and workflows for the fight against fraud, in particular among Commission services and executive agencies” (coordination, cooperation and processes). The strategy is accompanied by an Action Plan which was revised in July 2023 and which, like its predecessor, seeks to strengthen all parts of the anti-fraud cycle: prevention, detection, investigation and correction.

The guiding principles and target standards of the 2019 CAFS are:

–zero tolerance for fraud;

–fight against fraud as an integral part of internal control;

–cost-effectiveness of controls;

–professional integrity and competence of Union staff;

–transparency on how Union funds are used;

–fraud prevention, notably fraud-proofing of spending programmes;

–effective investigation capacity and timely exchange of information;

–swift correction (including recovery of defrauded funds and judicial/administrative sanctions);

–good cooperation between internal and external players, in particular between the Union and national authorities responsible, and among the departments of all institutions and bodies of the Union concerned;

–effective internal and external communication on the fight against fraud.

Article 11 of the Agreement on the Agency for the Space Programme and Annex III to the agreement on Switzerland’s participation in EUSPA contain detailed provisions concerning the financial as regards Swiss participants in activities of the Agency for the Space Programme, which also includes anti-fraud measures. Annex III provides the necessary details, processes as well as allow for flawless execution of tasks by the bodies in order to safeguard the financial interests of the Union (the European Commission or by other persons mandated by the European Commission, which includes the European Anti-Fraud Office (OLAF) and the European Court of Auditors. the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irreguralities, including fraud, to the recovery of funds lost, wrongly paid or icorrectly used and, where appropriate, to the imposition of the administrative penalties.

In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and ensure that any third parties involved in the implementation of Union funds grant equivalent rights. As expressly provided in Article 11(4) of the Agreement on the Agency for the Space Programme, reviews and audits may be carried out also after the suspension of application of a Protocol, cessation of application or termination of the Agreement.

The Agreement on the Agency for the Space Programme ensures the possibility for OLAF may carry out administrative investigations, including on-the-spot checks and inspections, on the territory of the Swiss Confederation of a Swiss entity that is party to a relevant funding agreement or a Swiss entity third party implementing the funding agreement under a contract, in accordance with, and to the extent provided in, the relevant funding agreement and other applicable contract. When exercising their duties in the territory of the Swiss Confederation, the European Commission and OLAF shall act in a manner compatible with Swiss law.

Reviews and audits may be carried out by the Union officials, in particular officials of the European Commission and the European Court of Auditors, or by other persons mandated by the European Commission. When exercising their duties in the territory of the Swiss Confederation, the European Commission or other persons mandated by the European Commission shall act in a manner compatible with Swiss law.

The Swiss authorities shall cooperate, in accordance with applicable international cooperation instruments with the authorities of the Union or of the Member States competent for the investigation and prosecution of criminal offences affecting the financial interests of the Union, including bringing to judgment alleged perpetrators and accomplices of the said criminal offences. Requests submitted to pursuant to applicable international cooperation instruments may include as applicable requests made in relation to investigations or prosecutions of the EPPO. This allows for a cooperation with the EPPO as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law.

Furthermore the Agreement on the Agency for the Space Programme provides for effective mechanism to ensure enforcement of Commission decisions on the territory of the Swiss Confederation.

5.OTHER REMARKS

Switzerland’s annual financial contribution to the financing of EUSPA will take the form of the sum of an operational contribution on the one hand, and a participation fee on the other, as defined in Article 4 of the Agreement on the Agency for the Space Programme and Annex I to that agreement.

The operational contribution will be based on a contribution key defined as the ratio of the Gross Domestic Product (GDP) of Switzerland at market prices to the GDP of the Union at market prices. The GDPs to be applied will be the latest available as of 1 January of the year in which the annual payment will be made as provided by Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement on cooperation in the field of statistics 39 . If this agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development (OECD).

The operational contribution will be calculated by applying the contribution key to the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question. All reference amounts will be based on commitment appropriations.

The annual participation fee shall be a percentage of the annual operational. The annual participation fee shall have the following values:

–    in 2026: 2 %

–    in 2027: 3 %

–    in 2028 and subsequent years: 4 %.

All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received will be made in euro.

The European Commission shall issue calls for funds to Switzerland that correspond to the contribution of Switzerland. Switzerland shall pay the amount indicated in the call for funds at the latest 45 days after receipt of the call for funds.

Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount from the due date. The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first calendar day of the month in which the due date falls, or 0%, whichever is higher, plus 3.5 percentage points.

PART II:

OTHER AGENCIES AND INFORMATION SYSTEMS

1.NAME OF THE PROPOSAL:

Proposal for a Council Decision on the signing of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation.

2.BUDGET LINES:

Part II details the financial impact of the other agreements in the broad package that foresee a financial contribution of Switzerland to various agencies and information systems, except for the Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. Part I details the financial impact of the latter agreement.

Under the agreements in fields related to the internal market in which Switzerland participates, the Health agreement and the agreement on the Agency for the Space Programme enter into force, Switzerland will financially contribute to the Union budget for the management and operation of the agencies and bodies, the information systems and other activities to which it has access under those agreements. A set of standard financial modalities were negotiated and integrated in the specific agreements. These do not concern the agreements on the participation on Switzerland’s participation in respectively the European Union Agency for the Space Programme and in the Union programmes.

A detailed description of the financial modalities is included in section 5 of this document.

The information systems to which Switzerland will gain access and will have to financially contribute in accordance with the agreed financial modalities are:

–the European network of Employment Services (EURES) as established by Regulation (EU) 2016/589;

–the Electronic Exchange of Social Security Information (EESSI) as established by Regulation (EC) 883/2004 and Regulation (EC) 987/2009; 

–the modules of Internal Market Information system (IMI) as established by Regulation (EU) 1024/20127 relating to the posting of workers, services, professional qualifications, the European Professional Card, Regulated Professions and the Single Digital Gateway;

–the EudraGMDP information system on the Community code relating to medicinal products for human use, as established by Directive 2004/27/EC;

–the Europhyt Portal, as established by Commission Directive 94/3/EC of 21 January 1994;

–the Rapid Alert System for Food and Feed (RASFF), as established by Regulation (EC) No 178/2002;

–the platform for sanitary and phytosanitary certification (TRACES), as established by Regulation (EU) 2017/625;

–the Animal Diseases Information System (ADIS), as established by Regulation (EU) 2020/2002;

–the Union Database, as established by Directive (EU) 2018/2001, on the promotion of the use of energy from renewable sources.

The agencies to which Switzerland will gain access and will have to financially contribute in accordance with the agreed financial modalities are:

–the European Centre for Disease Prevention and Control (ECDC), as established by Regulation (EC) No 851/2004;

–the European Food Safety Authority (EFSA), as established by Regulation (EC) No 178/2002;

–the European Union Agency for the Cooperation of Electricity Regulators (ACER), as established by Regulation (EU) 2019/942.

Where alternative funding sources presently exist, these will be maintained. Should this situation change in the course of the lifecycle of the agreements, the standard financial modalities should apply. The following information systems and agencies are concerned:

–Tachonet, as established by Regulation (EU) No 165/2014 and Commission Implementing Regulation (EU) 2016/68;

–the Early Warning and Response System (EWRS), as established by Regulation (EU) 2022/2371;

–the European Union Aviation Safety Agency (EASA), as established by Regulation (EU) 2018/1139;

–the Mutual Information System on Social Protection (MISSOC).

To take into account that Switzerland will not have access to the activities of the Agency for the Cooperation of Energy Regulators (ACER) falling outside of the scope of the agreement on electricity, its annual operational contribution to ACER will be calculated on the basis of an annual reference amount corresponding to 85% of the amount of the annual Union voted budget inscribed in the relevant Union budget subsidy line(s).

Under the current MFF (2021-2027) no contribution will be required from Switzerland for the financing of the EWRS in accordance with the above-mentioned financial modalities. Instead, its contribution will be covered by its contributions to the financing of the ECDC and the EU4Health programme as these are the EWRS’s two funding sources under the current MFF.

The precise impact of Switzerland’s contributions on the budget cannot be determined at the time of drafting this file as Switzerland will only start contributing after the concerned agreements have entered into force and their entry into force depends on Switzerland fulfilling certain constitutional obligations. This process may take several years, which might mean that the agreements will not enter into force during the current Multiannual Financial Framework.

As the agreed financing arrangements will generate a recurrent revenue stream for the Union budget and the standard provisions will provide the model for Switzerland’s contributions to the management and operation of any additional agency or information system to which Switzerland will gain access in the future, it is nevertheless relevant to illustrate how the financial modalities could impact the budget. The amounts mentioned apply the financial modalities to the 2024 budget, which served as reference during the negotiations on the financing arrangements and payment modalities.

·Information systems

European network of employment services (EURES)

Revenue line (Chapter/Article/Item):

–R6 1 2 0 – European Social Fund Plus – Assigned revenue

The revenues will be assigned to the following expenditure lines (Chapter/Article/Item):

Article 07 02 04 - ESF+ — Employment and Social Innovation (EaSI) strand, and

–Article 07 10 09 – European Labour Authority (ELA): expenditure related to the EURES platform

Electronic Exchange of Social Security Information (EESSI)

Revenue line (Chapter/Article/Item):

–6 1 2 0 – European Social Fund Plus – Assigned revenue

–R 6 6 3 0 – Pilot projects, preparatory actions, prerogatives and other actions

The revenues will be assigned to the following expenditure lines (Chapter/Article/Item):

–Article 07 02 04 – ESF+ — Employment and Social Innovation (EaSI) strand;

–Item 07 20 03 01 – Free Movement of workers, coordination of social security schemes and measures for migrants, including migrants from third countries

Internal Market Information (IMI)

Revenue line (Chapter/Article/Item):

–6 00 03 00 – Single Market Programme – Assigned revenue 

The revenues will be assigned to the following expenditure line (Chapter/Article/Item):

–Item 03 01 01 01 – Support expenditure for the Single Market Programme (03 01 01 01 02) 

EudraGMDP

Revenue line (Chapter/Article/Item):

–6 6 2

The revenues will be assigned to the following expenditure line (Chapter/Article/Item):

–6 10 03 01 – Union contribution to the European Medicines Agency

Europhyt, iRASFF, TRACES, ADIS

Revenue line (Chapter/Article/Item):

–60 30

The revenues will be assigned to the following expenditure line (Chapter/Article/Item):

–Article 03 02 06 – Contributing to a high level of health and welfare for humans, animals and plants

Union Database, as established by Directive (EU) 2018/2001

Revenue line (Chapter/Article/Item):

–6 06 08 – other contributions and refunds – Assigned revenue 

The revenues will be assigned to the following expenditure line (Chapter/Article/Item):

–02 20 04 02 – Support activities for the European energy policy and internal energy market

·Agencies

European Centre for Disease Prevention and Control (ECDC) and European Food Safety Authority (EFSA)

Revenue line (Chapter/Article/Item):

–6 6 2

The revenues will be assigned to the following expenditure line (Chapter/Article/Item):

–Article 06 10 01 – European Centre for Disease Prevention and Control

–Article 06 10 02 – European Food Safety Authority 

European Union Agency for the Cooperation of Energy Regulators (ACER)

Revenue line (Chapter/Article/Item):

–6 06 08 – Decentralised agencies – Assigned revenue 

The revenues will be assigned to the following expenditure line (Chapter/Article/Item):

–Article 02 10 06 – European Union Agency for the Cooperation of Energy Regulators (ACER)

3.FINANCIAL IMPACT 

    Proposal has no financial implications

    Proposal has no financial impact on expenditure but has a financial impact on revenue

    Proposal has a financial impact on assigned revenue

The effect is as follows:

·Information systems

European network of employment services (EURES)

Electronic Exchange of Social Security Information (EESSI)

Internal Market Information (IMI) 

EudraGMDP

Europhyt, iRASFF, TRACES, ADIS

Union Database, as established by Directive (EU) 2018/2001

·Agencies

European Centre for Disease Prevention and Control (ECDC)

European Food Safety Authority (EFSA)

European Union Agency for the Cooperation of Energy Regulators (ACER) 40

4.ANTI-FRAUD MEASURES

Article 325 of the Treaty on the functioning of the European Union (TFEU) requires the Commission to counter fraud and any illegal activities affecting the financial interests of the Union. Preventing and detecting fraud is therefore a general obligation for all Commission Services in the framework of their daily activities involving the use of resources.

Any fraud or irregularities involving Union funds has a particularly negative impact on the reputation of the Commission and the implementation of Union policies. The current Commission Anti-Fraud Strategy (CAFS) (COM(2019)196) was adopted on 29 April 2019, to replace the 2011 Strategy. It is a policy document setting out the Commission’s priorities in the fight against fraud in view of the 2021-2027 multiannual financial framework. The 2019 CAFS’ main objectives are to 1) “further improve the understanding of fraud patterns, fraudsters’ profiles and systemic vulnerabilities relating to fraud affecting the EU budget” (data collection and analysis), and 2) “optimise coordination, cooperation and workflows for the fight against fraud, in particular among Commission services and executive agencies” (coordination, cooperation and processes). The strategy is accompanied by an Action Plan which was revised in July 2023 and which, like its predecessor, seeks to strengthen all parts of the anti-fraud cycle: prevention, detection, investigation and correction.

The guiding principles and target standards of the 2019 CAFS are:

–zero tolerance for fraud;

–fight against fraud as an integral part of internal control;

–cost-effectiveness of controls;

–professional integrity and competence of Union staff;

–transparency on how Union funds are used;

–fraud prevention, notably fraud-proofing of spending programmes;

–effective investigation capacity and timely exchange of information;

–swift correction (including recovery of defrauded funds and judicial/administrative sanctions);

–good cooperation between internal and external players, in particular between the Union and national authorities responsible, and among the departments of all institutions and bodies of the Union concerned;

–effective internal and external communication on the fight against fraud.

5.OTHER REMARKS

Switzerland’s annual financial contribution to the financing of information systems and agencies will take the form of the sum of an operational contribution on the one hand, and a participation fee on the other.

The operational contribution will be based on a contribution key defined as the ratio of the Gross Domestic Product (GDP) of Switzerland at market prices to the GDP of the Union at market prices. The GDPs to be applied will be the latest available as of 1 January of the year in which the annual payment will be made as provided by Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement on cooperation in the field of statistics 41 . If this agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development (OECD).

The operational contribution for agencies will be calculated by applying the contribution key to the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question. The operational contribution for the information systems and other activities will be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget (such as work programmes or contracts). All reference amounts will be based on commitment appropriations.

The annual participation fee shall be 4% of the annual operational contribution.

All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received will be made in euro.

The European Commission will communicate to Switzerland at the latest on 16 April of the financial year, the following information in relation to Switzerland’s participation:

–the amounts in commitment appropriations of the annual Union budget inscribed on the relevant Union subsidy budget line(s) of the year in question for each agency and the amounts in commitment appropriations in relation to the Union voted budget of the year in question for the relevant budget of the information systems;

–the amount of the participation fee;

–as regards agencies, in year N+1 the amounts in budgetary commitments made on commitment appropriations authorised in year N on the relevant Union budget subsidy line(s) in relation to the annual Union budget inscribed on the relevant Union subsidy budget lines of year N.

Based on its draft budget, the European Commission shall provide an estimate of above-mentioned information as soon as possible, and at the latest, by 1 September of the financial year.

The European Commission shall issue calls for funds to Switzerland that correspond to the contribution of Switzerland for each of the agencies, information systems and other activities in which Switzerland participates. Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after a call for funds has been issued.

In each call for funds, Switzerland may make separate payments for each agency, information system or other activity. 

Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount from the due date.

The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first calendar day of the month in which the due date falls, or 0%, whichever is higher, plus 3.5 percentage points.

(1)    Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road, Agreement between the European Community and the Swiss Confederation Air Transport, Agreement between the European Community, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment, Agreement between the European Community and the Swiss Confederation on trade in agricultural products, all signed on 21 June 1999 (OJ L 114, 30.4.2002, p. 1).

(2)    COM(2023) 798 final, 20.12.2023.

(3)    Council Decision (EU, Euratom) 2024/995 of 12 March 2024 authorising the opening of negotiations with the Swiss Confederation on institutional provisions in agreements between the European Union and the Swiss Confederation related to the internal market, on an agreement on the Swiss Confederation’s participation in Union programmes and on an agreement that forms the basis for the Swiss Confederation’s permanent contribution to the Union’s cohesion (OJ L, 2024/995, 26.3.2024).

(4)    COM(2025) 159 final and COM(2025) 160 final, 9.4.2025.

(5)

   COM(2025) 159 final and COM(2025) 160 final, 9.4.2025.

(6)    The respective GDPs to be applied will be the latest available as of 1 January of the year in which the annual payment is made as provided by Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics (OJ L 90, 28.3.2006, p. 2).

(7)    Regulation (EU) 2016/589 of the European Parliament and of the Council of 13 April 2016 on a European network of employment services (EURES), workers' access to mobility services and the further integration of labour markets, and amending Regulations (EU) No 492/2011 and (EU) No 1296/2013 (OJ L 107, 22.4.2016, p. 1).

(8)    Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p. 1) and (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems (OJ L 284, 30.10.2009, p. 1).

(9)    Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (OJ L 316, 14.11.2012, p. 1).

(10)    Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No 2111/2005, (EC) No 1008/2008, (EU) No 996/2010, (EU) No 376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No 552/2004 and (EC) No 216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No 3922/91 (OJ L 212, 22.8.2018, p. 1).

(11)    Regulation (EU) 2016/796 of the European Parliament and of the Council of 11 May 2016 on the European Union Agency for Railways and repealing Regulation (EC) No 881/2004 (OJ L 138, 26.5.2016, p. 1).

(12)    Regulation (EU) No 165/2014 of the European Parliament and of the Council of 4 February 2014 on tachographs in road transport, repealing Council Regulation (EEC) No 3821/85 on recording equipment in road transport and amending Regulation (EC) No 561/2006 of the European Parliament and of the Council on the harmonisation of certain social legislation relating to road transport (OJ L 60, 28.2.2014, p. 1) and Commission Implementing Regulation (EU) 2016/68 of 21 January 2016 on common procedures and specifications necessary for the interconnection of electronic registers of driver cards (OJ L 15, 22.1.2016, p. 51), as amended by Commission Implementing Regulation (EU) 2017/1503 of 25 August 2017 (OJ L 221, 26.8.2017, p. 10).

(13)    Directive 2007/45/EC of the European Parliament and of the Council of 5 September 2007 laying down rules on nominal quantities for prepacked products, repealing Council Directives 75/106/EEC and 80/232/EEC, and amending Council Directive 76/211/EEC (OJ L 247, 21.9.2007, p. 17).

(14)    Directive 2004/27/EC of the European Parliament and of the Council of 31 March 2004 amending Directive 2001/83/EC on the Community code relating to medicinal products for human use (OJ L 136, 30.4.2004, p. 34).

(15)    Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (OJ L 158, 14.6.2019, p. 22).

(16)    Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).

(17)    Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1).

(18)    Commission Directive 94/3/EC of 21 January 1994 establishing a procedure for the notification of interception of a consignment or a harmful organism from third countries and presenting an imminent phytosanitary danger (OJ L 32, 5.2.1994, p. 37).

(19)    Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1).

(20)    Regulation (EU) 2017/625 of the European Parliament and of the Council of 15 March 2017 on official controls and other official activities performed to ensure the application of food and feed law, rules on animal health and welfare, plant health and plant protection products, amending Regulations (EC) No 999/2001, (EC) No 396/2005, (EC) No 1069/2009, (EC) No 1107/2009, (EU) No 1151/2012, (EU) No 652/2014, (EU) 2016/429 and (EU) 2016/2031 of the European Parliament and of the Council, Council Regulations (EC) No 1/2005 and (EC) No 1099/2009 and Council Directives 98/58/EC, 1999/74/EC, 2007/43/EC, 2008/119/EC and 2008/120/EC, and repealing Regulations (EC) No 854/2004 and (EC) No 882/2004 of the European Parliament and of the Council, Council Directives 89/608/EEC, 89/662/EEC, 90/425/EEC, 91/496/EEC, 96/23/EC, 96/93/EC and 97/78/EC and Council Decision 92/438/EEC (OJ L 95, 7.4.2017, p. 1).

(21)    Commission Implementing Regulation (EU) 2020/2002 of 7 December 2020 laying down rules for the application of Regulation (EU) 2016/429 of the European Parliament and of the Council with regard to Union notification and Union reporting of listed diseases, to formats and procedures for submission and reporting of Union surveillance programmes and of eradication programmes and for application for recognition of disease-free status, and to the computerised information system (OJ L 412, 8.12.2020, p. 1).

(22)    Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 establishing a European Centre for disease prevention and control (OJ L 142, 30.4.2004).

(23)    Regulation (EU) 2022/2371 of the European Parliament and of the Council of 23 November 2022 on serious cross-border threats to health and repealing Decision No 1082/2013/EU (OJ L 314, 6.12.2022, p. 26).

(24)    Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 establishing the Union Space Programme and the European Union Agency for the Space Programme and repealing Regulations (EU) No 912/2010, (EU) No 1285/2013 and (EU) No 377/2014 and Decision No 541/2014/EU (OJ L 170, 12.5.2021, p. 69).

(25)    Cooperation Agreement between the European Union and its Member States, of the one part, and the Swiss Confederation, of the other, on the European Satellite Navigation Programmes (OJ L 15, 20.01.2014, p. 3).

(26)    Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road, Agreement between the European Community and the Swiss Confederation Air Transport, Agreement between the European Community, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment, Agreement between the European Community and the Swiss Confederation on trade in agricultural products, all signed on 21 June 1999 (OJ L 114, 30.4.2002, p. 1).

(27)    Council Decision (EU, Euratom) 2024/995 of 12 March 2024 authorising the opening of negotiations with the Swiss Confederation on institutional provisions in agreements between the European Union and the Swiss Confederation related to the internal market, on an agreement on the Swiss Confederation’s participation in Union programmes and on an agreement that forms the basis for the Swiss Confederation’s permanent contribution to the Union’s cohesion (OJ L, 2024/995, 26.3.2024).

(28)    The texts of the agreements and protocols will be published together with the decision on their conclusion.

(29)    The Declaration is published in OJ L, [XXX].

(30)    The Declarations are published in OJ L, [XXX].

(31)    The Declaration is published in OJ L, [XXX].

(32)    The Declaration is published in OJ L, [XXX].

(33)    The Declaration is published in OJ L, [XXX].

(34)    The Declaration is published in OJ L, [XXX].

(35)    The Declaration is published in OJ L, [XXX].

(36)    The Declaration is published in OJ L, [XXX].

(37)    The date from which the Agreement will be provisionally applied will be published in the Official Journal.

(38)    All figures for years 2026 and 2027 which are quoted in this section are indicative and correspond to the latest estimates available.

(39)    Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics (OJ L 90, 28.3.2006, p. 2)

(40)    Based on an annual reference amount corresponding to 85% of the amount of the annual Union voted budget inscribed in the relevant EU budget subsidy line(s).

(41)    Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics (OJ L 90, 28.3.2006, p. 2)

EUROPEAN COMMISSION

Brussels, 13.6.2025

COM(2025) 308 final

ANNEX

to the

Proposal for a Council Decision

on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme

AMENDING PROTOCOL 
TO THE AGREEMENT 
BETWEEN THE EUROPEAN COMMUNITY AND ITS MEMBER STATES,
OF THE ONE PART,
AND THE SWISS CONFEDERATION, OF THE OTHER,
ON THE FREE MOVEMENT OF PERSONS

THE EUROPEAN UNION, hereinafter referred to as "the Union",

and

THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland";

HAVING REGARD to the Agreement between the European Community and its Member States of the one part, and the Swiss Confederation of the other, on the free movement of persons, done at Brussels on 21 June 1999, (hereinafter referred to as the "Agreement"), which entered into force on 1 June 2002;

HAVING REGARD to the Protocol to the Agreement of 21 June 1999 between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons regarding the participation, as Contracting Parties, of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic pursuant to their accession to the European Union, done at Brussels on 26 October 2004, which entered into force on 1 April 2006;

HAVING REGARD to the Protocol to the Agreement of 21 June 1999 between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons regarding the participation as Contracting Parties of the Republic of Bulgaria and Romania pursuant to their accession to the European Union, done at Brussels on 27 May 2008, which entered into force on 1 June 2009;

HAVING REGARD to the Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, regarding the participation of the Republic of Croatia as a Contracting Party, following its accession to the European Union, done at Brussels of 4 March 2016, which entered into force on 1 January 2017;

WHEREAS agreements concluded by the Union are binding upon the institutions of the Union and on its Member States; this Protocol therefore applies to the Contracting Parties as set out in the Agreement;

HAVE AGREED AS FOLLOWS:

ARTICLE 1

Amendments to the Agreement

The Agreement is amended as follows:

(1)    in the preamble, the following recitals are inserted after the second recital:

"RECOGNISING that the freedom of movement is an important aspect of the internal market and that securing the right of nationals of the Contracting Parties, as well as their family members, to enter and reside in the respective territories, free of unjustified restrictions and with full respect for the right of equal treatment, serves to strengthen the functioning of the parts of the internal market in which Switzerland participates;

CONSCIOUS of ensuring uniformity in the parts of the internal market in which Switzerland participates, it being understood that the Agreement is to be interpreted in accordance with the uniform interpretation principle set out in Article 7 of the Institutional Protocol to this Agreement. The competence of the Swiss Federal Court and all other Swiss courts as well as of the Member States of the European Union's courts and the Court of Justice of the European Union to interpret this Agreement in individual cases is preserved;

RECALLING that the freedom of movement and the right to equal treatment extends to nationals of one Contracting Party who exercise or seek to exercise their free-movement rights without having moved or without having yet moved to reside in the territory of another Contracting Party. Equally, certain rights linked to the past exercise of free movement, including the right to equal treatment, may continue to apply after the national of a Contracting Party has ceased residing in the territory of another Contracting Party;

FURTHER RECALLING that the free movement of persons encompasses workers, self‑employed persons and persons who are economically inactive, provided that such persons comply with the requirements for lawful residence set out in this Agreement, including, where applicable, the possession of sufficient resources and comprehensive sickness insurance, so as not to become an unreasonable burden on the social assistance systems of the Contracting Parties;

UNDERLINING the objective of consolidating and developing the Union and Switzerland's comprehensive partnership to its full potential,";

(2)    Article 4 is replaced by the following:

"ARTICLE 4

Right of residence and access to an economic activity

The right of residence and access to an economic activity shall be guaranteed in accordance with Annex I.";

(3)    the following articles are inserted:

"ARTICLE 4a

Right of establishment

1.    A national of a Contracting Party shall have the right of establishment in the territory of another Contracting Party in order to pursue a self-employed activity.

2.    Within the framework of the provisions of this Agreement, restrictions on the freedom of establishment of nationals of a Contracting Party in the territory of another Contracting Party shall be prohibited. Such prohibition shall also apply to restrictions on the setting-up of agencies and branches by nationals of any Contracting Party established in the territory of any Contracting Party.

ARTICLE 4b

Equal treatment of self-employed persons

1.    As regards access to a self-employed activity and the pursuit thereof, a self-employed person shall be afforded no less favourable treatment in the host country than that accorded to its own nationals.

2.    The provisions of Articles 7 to 10 of Regulation (EU) No 492/2011 1  shall apply mutatis mutandis to the self-employed persons referred to in this Agreement.";

(4)    in Article 5, paragraph 4 is replaced by the following:

"4.    The rights referred to in this Article shall be guaranteed in accordance with Annexes I, II and III.";

(5)    the following articles are inserted:

"ARTICLE 5a

Provision of services

With regard to the provision of services, the following shall be prohibited under Article 5 of this Agreement:

(a)    any restriction on the cross-frontier provision of services in the territory of a Contracting Party not exceeding 90 days of actual work per calendar year;

(b)    any restriction on the right of entry and residence in the cases covered by Article 5(2) of this Agreement concerning employees, who do not have the nationality of one of the Contracting Parties, of persons providing services, who are integrated into one Contracting Party's regular labour market and posted for the provision of a service in the territory of another Contracting Party without prejudice to Article 7i.

ARTICLE 5b

Companies providing services

The provisions of Article 5a shall apply to companies formed in accordance with the law of the Contracting Parties and having their registered office, central administration or principal place of business in the territory of a Contracting Party.

ARTICLE 5c

Equal treatment of persons providing services

A person providing services who has the right or has been authorised to provide a service may, for the purposes of its provision, temporarily pursue his activity in the state in which the service is provided on the same terms as those imposed by that state on its own nationals, in accordance with the provisions of this Agreement and Annexes I, II and III.

ARTICLE 5d

Rules regarding the residence of persons providing services

1.    Persons providing services who are nationals of the Member States of the Union or Switzerland and are established in the territory of a Contracting Party other than that of the person receiving services and employees, irrespective of their nationality, of persons providing services, who are integrated into one Contracting Party's regular labour market and posted for the provision of a service in the territory of another Contracting Party who have the right, or have been authorised, to provide a service for a period exceeding 90 days of actual work per calendar year shall receive, to substantiate that right, a residence permit for a period equal to that of the provision of services exceeding 90 days of actual work per calendar year.

2.    For the purposes of issuing such permits, the Contracting Parties may not require of the persons referred to in paragraph 1 more than:

(a)    a valid identity card or passport, without prejudice to Article 7i;

(b)    evidence that they are providing, or wish to provide, a service.

ARTICLE 5e

Duration of provision of services

1.    The total duration of provision of services under point (a) of Article 5a, whether continuous or consisting of successive periods of provision, may not exceed 90 days of actual work per calendar year.

2.    The provisions of paragraph 1 shall be without prejudice to the discharge by the person providing a service of his legal obligations under the guarantee given to the person receiving the service or to causes of force majeure.

ARTICLE 5f

Rules applicable to the provision of services

1.    The provisions of Articles 5a and 5c shall not apply to activities involving, even on an occasional basis, the exercise of public authority in the Contracting Party concerned.

2.    The provisions of Articles 5a and 5c and measures adopted by virtue thereof shall not preclude the applicability of laws, regulations and administrative provisions providing for the application of working and employment conditions to employed persons posted for the purposes of providing a service, in accordance with the relevant Union legal acts on the posting of workers referred to in Annex I.

3.    The provisions of point (a) of Article 5a, and Article 5c shall be without prejudice to the applicability of the laws, regulations and administrative provisions prevailing in all Contracting Parties at the time of this Agreement's entry into force on 1 June 2002 in respect of:

(i)    the activities of temporary and interim employment agencies. In particular, Switzerland's dynamic alignment to Regulation (EU) 2016/589 2  shall not result in Switzerland no longer being able to apply its national laws, regulations and administrative provisions to these activities;

(ii)    financial services where provision is subject to prior authorisation in the territory of a Contracting Party and the provider to prudential supervision by that Contracting Party's authorities.

ARTICLE 5g

Prior notification period and controls

1.    Switzerland shall be able to apply a prior notification period of a maximum of four working days in specific sectors before the beginning of the provision of service for service providers that are self-employed and provide services in its territory as well as before the posting for service providers that post workers on its territory in order to carry out on-site controls.

2.    Switzerland shall define autonomously the control quantity and control density, as well as the sectors and areas to be controlled, including sectors and areas not covered by the prior notification period of a maximum of four working days, on the basis of an objective risk analysis, in a proportionate and non-discriminatory manner, taking into account that the Agreement limits the freedom to provide services to 90 days of actual work per calendar year.

3.    The determination of the sectors shall be reviewed and updated periodically.

ARTICLE 5h

Financial guarantees and sanctions

In the case of service providers that have failed to meet their financial obligations towards enforcement authorities and bodies referred to in the Joint Declaration on effective control systems including Switzerland's dual enforcement system with regard to a previous provision of services, Switzerland shall be able to require the deposit of a proportionate financial guarantee before they may provide services again in sectors determined on the basis of an autonomous and objective risk analysis.

In case of non-payment of the financial guarantee, Switzerland shall be able to impose proportionate sanctions up to the prohibition to provide services until the payment of the guarantee.

ARTICLE 5i

Proof of self-employment

In order to combat the phenomenon of bogus self-employment through efficient and risk‑based controls, Switzerland shall be able to require self-employed service providers to provide documents allowing for effective controls within the framework of ex-post controls (at most: confirmation of registration, if applicable; proof of registration with the social security authorities as a self-employed person in the country of residence; proof of the contractual relationship).

ARTICLE 5j

Non-regression

1.    In order to maintain the level of protection of posted workers as agreed between Switzerland and the Union in this Agreement at the time of the entry into force of the Amending Protocol, amendments to Directives 96/71/EC 3 and 2014/67/EU 4 or new legal acts of the Union in the area of posting of workers shall, notwithstanding Article 5 of the Institutional Protocol to this Agreement, not be integrated into this Agreement to the extent that their effect would be to meaningfully weaken or reduce the level of protection of posted workers with regard to the terms and conditions of employment, notably remuneration and allowances.

2.    For the purposes of paragraph 1, any change to the level of protection of posted workers shall be assessed in its globality, taking into account all relevant provisions of this Agreement.

ARTICLE 5k

Persons receiving services

Nationals of a Member State of the Union or of Switzerland entering the territory of a Contracting Party solely to receive services may be required to register in accordance with the acts referred to in Annex I.";

(6)    the following articles are inserted:

"ARTICLE 7a

Frontier worker

A frontier worker is a national of a Contracting Party who pursues an activity as an employed or self-employed person in a Contracting Party and who resides in the other Contracting Party to which he returns, as a rule, daily or at least once a week.

The competent authorities of the Contracting Party where the frontier worker pursues the activity for periods of work longer than three months per calendar year may register the frontier worker for declaratory purposes.

The competent authorities shall issue a declaratory registration certificate to the frontier worker free of charge or for a charge not exceeding that imposed on nationals for the issuing of similar documents.

Registration pursuant to this Article shall be without prejudice to the rights and obligations of the frontier workers concerned provided for in the acts referred to in the Annexes to this Agreement. For periods of work shorter than or up to three months the Contracting Parties may apply the notification procedure according to the Joint Declaration on the notification of the taking up of employment.

ARTICLE 7b

Students

A student who does not have a right of residence in the territory of the other Contracting Party on the basis of any other provision of this Agreement may be required to register in accordance with the acts referred to in Annex I. This Agreement does not regulate access to vocational training or maintenance assistance given to the students covered by this Article.

(a)    notwithstanding the foregoing sentence, Article 2 shall apply, regardless of the student's place of residence, to tuition fees and all other fees or charges related to studies, as well as all public support mechanisms related thereto, applicable to students at;

(i)    universities, university institutes, universities of applied sciences, universities of applied sciences institutes and affiliated higher education institutions to any of these in Switzerland, financed in majority by public funds, and

(ii)    any corresponding institution in the Union;

(b)    subject to the preservation of the quality and of the specificities of its respective    existing education systems, including its admission systems and organisation of    competences, each Contracting Party shall not reduce the overall level of students in its    institutions mentioned under point (a) who are nationals of the other Contracting Parties and who did not have a right of residence in its territory before taking up their studies, as of    the date of the entry into force of this provision. For the purpose of clarity, the foregoing sentence shall not imply an obligation for the Contracting Parties to modify their respective admission systems nor to increase the aforementioned level of students or to reserve a minimal level of places for students from the other Contracting Parties;

(c)    the Contracting Parties shall not discriminate amongst nationals of the other Contracting    Parties in application of points (a) and (b).

ARTICLE 7c

Exercise of public authority

1.    A national of a Contracting Party pursuing an activity as an employed person may be refused the right to take up employment in the public service which involves the exercise of public power and is intended to protect the general interests of the State or other public bodies.

2.    A self-employed person may be denied the right to pursue an activity involving, even on an occasional basis, the exercise of public authority.

ARTICLE 7d

Public policy

The rights granted under the provisions of this Agreement may be restricted only by means of measures which are justified on grounds of public policy, public security or public health.

ARTICLE 7e

Permanent residence

Switzerland and the Member States may decide to grant the right of permanent residence pursuant to Article 16 of Directive 2004/38/EC 5  as, respectively, only to Union citizens and Swiss nationals having resided legally for a total of five years in the host State as workers or self-employed persons, including those that retain that status in accordance with that Directive, as well as the family members of such persons. Provided that they are part of a single period of legal residence in the host State, the periods to be taken into account shall not be required to be continuous but may be interrupted by periods of legal residence as economically inactive persons.

For the purpose of calculating the periods necessary for the acquisition of the right of permanent residence in accordance with the first subparagraph, Switzerland and the Member States may decide not to take into account periods of six months or more during which the person is fully reliant on social assistance.

Subject to the Joint Declaration on refusing social assistance and terminating residence prior to the acquisition of permanent residence and in accordance with Article 10(6) of the Institutional Protocol to this Agreement, the rules on residence in Article 7 of Directive 2004/38/EC 6 shall remain applicable to persons who do not qualify for the right of permanent residence.

ARTICLE 7f

Purchase of immovable property

1.    Nationals of a Contracting Party who have a right of residence and their principal residence in the host state shall enjoy the same rights as a national as regards the purchase of immovable property. They may set up their principal residence in the host state at any time in accordance with the relevant national rules irrespective of the duration of their employment. Leaving the host state shall not entail any obligation to dispose of such property.

2.    Nationals of a Contracting Party who have a right of residence but do not have their principal residence in the host state shall enjoy the same rights as a national as regards the purchase of immovable property needed for their economic activity. Leaving the host state shall not entail any obligation to dispose of such property. They may also be authorised to purchase a second residence or holiday accommodation. For this category of nationals, this Agreement shall not affect the rules applying to pure capital investment or business of unbuilt land and apartments.

3.    Frontier workers, nationals of a Contracting Party, shall enjoy the same rights as a national as regards the purchase of immovable property for their economic activity and as a secondary residence. Leaving the host state shall not entail any obligation to dispose of such property. They may also be authorised to purchase holiday accommodation. For this category of nationals, this Agreement shall not affect the rules applying in the host state to pure capital investment or business of unbuilt land and apartments.

ARTICLE 7g

Identity cards

Switzerland may continue to issue identity cards that do not include a storage medium containing the holder's fingerprints. Such identity cards shall be visually distinguishable from identity cards complying with the requirements of the acts referred to in Annex I concerning such documents. Any such identity cards issued from one year after the entry into force of the Amending Protocol cannot be used by Swiss nationals to exercise free movement.

ARTICLE 7h

Expulsion

As far as restrictions on the right of entry and the right of residence on grounds of public policy or public security of each other's nationals are concerned, the obligations of Switzerland and of the Member States under the Agreement prior to the entry into force of the Amending Protocol shall be maintained.

Therefore, the following developments introduced by Chapter VI of Directive 2004/38/EC 7  going beyond these obligations, namely enhanced protection against expulsion provided for in Article 28(2) and (3), as well as the case-law of the Court of Justice linked to these provisions, shall not apply. In addition, as regards expulsions referred to in Article 33(2) of the Directive, Switzerland and the Member States may, instead of applying the procedures laid down in that provision, ensure that expulsions are carried out in line with the requirements under the Agreement prior to the entry into force of the Amending Protocol.

ARTICLE 7i

Entry of third-country nationals

The Contracting Parties may not require entry visa or equivalent requirements from posted workers who do not have the nationality of a Contracting Party and who enjoy a right of entry without such requirements according to the legal acts of the Union integrated into Annex I or any other instrument in force between the Contracting Parties. For those posted workers who require entry visa or equivalent requirements, the Contracting Party concerned shall grant these persons every facility for obtaining any necessary visas.";

(7)    Article 10 is replaced by the following:

"ARTICLE 10

Changes in European Union membership

Any extension of the Agreement to new Member States shall be subject to agreement between the Parties, in accordance with their internal procedures, by means of a protocol. Unless otherwise agreed, such protocol shall include transitional measures, taking into account the specific economic and social situation in the Union, in particular in the new Member States, and Switzerland, having regard to the longstanding practice of past extensions of this Agreement.";

(8)    Article 14 is replaced by the following:

"ARTICLE 14

Joint Committee

1.    A Joint Committee is hereby established.

The Joint Committee shall be composed of representatives of the Contracting Parties.

2.    The Joint Committee shall be co-chaired by a representative of the Union and a representative of Switzerland.

3.    The Joint Committee shall:

(a)    ensure the proper functioning and the effective administration and application of this Agreement;

(b)    provide a forum for mutual consultation and a continuous exchange of information between the Contracting Parties, in particular with a view to finding a solution to any difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement in accordance with Article 10 of the Institutional Protocol to this Agreement;

(c)    make recommendations to the Contracting Parties in matters pertaining to this Agreement;

(d)    adopt decisions where provided for in this Agreement; and

(e)    exercise any other competence granted to it in this Agreement.

4.    The Joint Committee shall act by consensus.

Decisions shall be binding on the Contracting Parties, which shall take all necessary measures to implement them.

5.    The Joint Committee shall meet at least once a year, in Brussels and Bern alternately, unless the co-chairs decide otherwise. It shall also meet at the request of either Contracting Party. The co-chairs may agree that a meeting of the Joint Committee be held by videoconference or teleconference.

6.    The Joint Committee shall adopt its rules of procedure and update them as necessary.

7.    The Joint Committee may decide to set up any working party or group of experts that can assist it in carrying out its duties.";

(9)    the following article is inserted:

"ARTICLE 14a

Safeguard clause

1.    In the event of serious economic or social difficulties caused by the application of this Agreement, the Joint Committee shall meet, at the request of either Contracting Party, to examine appropriate measures to remedy the situation. The Joint Committee may decide what measures to take within 60 days of the date of the request. This period may be extended by the Joint Committee.

2.    If the Joint Committee does not adopt a decision within the deadline laid down in paragraph 1 with regard to appropriate measures or extending that deadline, the Contracting Party having made the request may bring the case before an arbitral tribunal in case of serious economic difficulties. The arbitral tribunal shall hand down its final decision within six months of its establishment.

3.    If the arbitral tribunal decides that the alleged difficulties have been proven and are caused by the application of this Agreement, the Contracting Party that made the request may adopt appropriate measures in order to remedy those difficulties. If the measures adopted by a Contracting Party in accordance with this paragraph create an imbalance between the respective rights and obligations under this Agreement, the other Contracting Party may take appropriate rebalancing measures to remedy that imbalance within the scope of this Agreement.

4.    In exceptional circumstances of urgency where a Contracting Party is at risk of very serious economic harm caused by the application of this Agreement, that Contracting Party may bring the case before an arbitral tribunal in accordance with the Appendix if the Joint Committee fails to adopt a decision within 30 days of the request. The arbitral tribunal shall hand down its final decision within six months of its establishment.

5.    In circumstances referred to in paragraph 4, if the arbitral tribunal decides that, prima facie, the alleged difficulties are fulfilled, the Contracting Parties may adopt interim measures and, as the case may be, interim rebalancing measures. Article III.10 of the Appendix shall apply, with exception of paragraph 4(c), mutatis mutandis.

6.    The measures and rebalancing measures referred to in paragraphs 2 to 5 shall be adopted within the scope of this Agreement. Their scope and duration shall not exceed what is strictly necessary to remedy the difficulties or the imbalance they address. Preference shall be given to measures and rebalancing measures that least disrupt the working of this Agreement.

7.    The measures and rebalancing measures shall be the subject of consultations in the Joint Committee every three months from the date of their adoption with a view to their abolition before the date of expiry envisaged or to the limitation of their scope to the strictly necessary. Each Contracting Party may at any time request the Joint Committee to review such measures and rebalancing measures.";

(10)    Article 18 is replaced by the following:

"ARTICLE 18

Revision

If a Contracting Party wishes to have this Agreement revised, it shall submit a proposal to that effect to the Joint Committee.

Amendments to this Agreement shall enter into force after the Contracting Parties's respective internal procedures have been completed.";

(11)    Article 21 is replaced by the following:

"ARTICLE 21

Relationship with agreements on taxation

1.    The provisions of bilateral agreements between Switzerland and the Member States of the Union on double taxation shall be unaffected by the provisions of this Agreement. In particular, the provisions of this Agreement shall not affect the double taxation agreements' definition of 'frontier workers'.

2.    No provision of this Agreement may be interpreted in such a way as to prevent the Contracting Parties from distinguishing, when applying the relevant provisions of their tax legislation, between taxpayers whose situations are not comparable, especially as regards their place of residence. However, this shall not constitute a means of discrimination or restriction on the rights of persons as defined under this Agreement.

3.    No provision of this Agreement shall prevent the Contracting Parties from adopting or applying measures to ensure the imposition, payment and effective recovery of taxes or to forestall tax avoidance or evasion under their national tax legislation or any other international or bilateral agreement or arrangement relating wholly or mainly to taxation that either Switzerland, the Union or any Member State are party to.";

(12)    the following articles are inserted:

"ARTICLE 23a

Validity of residence permits and other special permits

Residence permits and other special permits issued by the Contracting Parties prior to the entry into force of the Amending Protocol shall maintain their validity and shall be replaced, upon their expiry, by documents provided for in this Agreement, where the conditions for the issuance of those documents are met.

ARTICLE 23b

Transitional arrangements

1.    With regard to matters falling within the scope of Directive 2004/38/EC 8  the transitional arrangements laid down in this paragraph shall apply:

(a)    There shall be a transition period, which shall start on the date of entry into force of the Amending Protocol and end 24 months after its entry into force.

(b)    Articles 5k, 7a,7d,7e,7h, 7i and, for the purposes of this Agreement, Directive 2004/38/EC 9 shall apply from the first day following that of the end of the transition period.

(c)    The effects of the following provisions of the Agreement in the version prior to the entry into force of the Amending Protocol shall be maintained during the transition period:

–    Articles 1 to 7 and Article 16, and

–    Articles 1 to 9, 12 to 15, 17, 19, 20, 23 and Article 24, except the last sentence of Article 24(4), of Annex I.

Those provisions shall not produce any effect with regard to matters falling within the scope of other acts referred to in Annex I, in particular Regulation (EU) No 492/2011 10 and Regulation (EU) 2016/589 11  referred to in Section 2 of Annex I.

2.    With regard to matters falling within the scope of Directive 96/71/EC 12 and Directive 2014/67/EU 13 , the transitional arrangements laid down in this paragraph shall apply:

(a)    There shall be a transition period which shall start on the date of entry into force of the Amending Protocol and end 36 months after its entry into force.

(b)    Article 5f(2), Articles 5g, 5h, 5i and, for the purposes of this Agreement, Directive 96/71/EC 14 and Directive 2014/67/EU 15 shall be applicable from the first day following that of the end of the transition period.

(c)    The effects of the following provisions of the Agreement in the version prior to the entry into force of the Amending Protocol shall be maintained during the transition period:

–    Article 5(4), and Article 16, and

–    Article 22(2), of Annex I.

Those provisions shall not produce any effect with regard to matters falling within the scope of other acts referred to in Section 2 of Annex I.";

(13)    Article 24 is replaced by the following:

"ARTICLE 24

Territorial scope

This Agreement shall apply, of the one part, to the territory in which the Treaty on European Union and the Treaty on the Functioning of the European Union (hereinafter referred to as 'TFEU') apply and under the conditions laid down in those Treaties, and, of the other part, to the territory of Switzerland.";

(14)    Annex I to the Agreement is replaced by the text set out in Annex I attached to this Protocol;

(15)    Annex II to the Agreement is replaced by the text set out in Annex II attached to this Protocol;

(16)    Annex III to the Agreement is replaced by the text set out in Annex III attached to this Protocol;

(17)    the Protocol on secondary residences in Denmark shall be replaced by the text in the Protocol on secondary residences in Denmark attached to this Protocol;

(18)    Annex I of the Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons regarding the participation, as Contracting Parties, of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic pursuant to their accession to the European Union, done at Brussels on 26 Octobre 2004, is deleted;

(19)    the text of the Protocol on the acquisition of immovable property in Malta attached to this Protocol, is added as an attachment to the Agreement;

(20)    the text of the Protocol on Long Term Residence Permits, attached to this Protocol, is added as an attachment to the Agreement;

(21)    the Joint Declarations and the Unilateral Declaration, attached to this Protocol, are added to the Declarations attached to the Final Act to the Agreement.

ARTICLE 2

Entry into force

1.    This Protocol shall be ratified or approved by the Union and Switzerland in accordance with their own procedures. The Union and Switzerland shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol.

2.    This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments:

(a)    Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons;

(b)    Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport;

(c)    Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport;

(d)    State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport;

(e)    Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road;

(f)    Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road;

(g)    State aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road;

(h)    Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products;

(i)    Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment;

(j)    Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment;

(k)    Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union;

(l)    Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes;

(m)    Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme.

Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic.

IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol.

(Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation")

ANNEX I

AMENDMENTS TO ANNEX I TO THE AGREEMENT

Annex I to the Agreement is replaced by the following:

"ANNEX I

FREE MOVEMENT OF PERSONS, RIGHT OF ESTABLISHMENT
AND PROVISION OF SERVICES

SECTION 1

For the purposes of the application of Articles 2 to 9 of this Agreement, the legal acts of the Union listed in Section 2 of this Annex, shall apply subject to the principle of dynamic alignment referred to in Article 5 of the Institutional Protocol to this Agreement, as well as subject to the exceptions listed in paragraph 7 of that Article.

Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland. This shall be applied in full respect of the Institutional Protocol to this Agreement.

Without prejudice to Article 16 of the Institutional Protocol, and unless otherwise provided for in technical adaptations, provisions of the acts listed in Section 2 that require the Member States to provide information to other Member States or to the Commission shall apply to Switzerland. When this information relates to surveillance or application, Switzerland shall communicate this information via the Joint Committee.

SECTION 2

ACTS REFERRED TO:

1.    31977 L 0486: Council Directive 77/486/EEC of 25 July 1977 on the education of the children of migrant workers (OJ L 199, 6.8.1977, p. 32).

2.    31996 L 0071: Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services (OJ L 18, 21.1.1997, p. 1), as amended by:

–    32018 L 0957: Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (OJ L 173, 9.7.2018, p. 16).

The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations:

(a)    in Article 1(-1a) the words 'the exercise of fundamental rights as recognised in the Member States and at Union level' are replaced by 'the exercise of fundamental rights as recognised in the Member States and at Union level as well as in Switzerland';

(b)    in Article 1(3):

(i)    point (c) shall not apply to Switzerland;

(ii)    the second and third subparagraphs shall not apply to Switzerland;

(c)    in Article 3:

(i)    paragraph 1b shall not apply to Switzerland;

(ii)    in paragraph 10, the words 'the Treaties' are replaced by the words 'the Agreement';

(d)    in Article 4(2):

(i)    in the first subparagraph, last sentence, the words 'the Commission shall be informed and shall take appropriate measures' are replaced by the words 'the Joint Committee shall be informed with a view to finding a solution.';

(ii)    the second subparagraph is replaced by the following:

'The European Union and Switzerland shall cooperate closely within the Joint Committee to examine any difficulties which might arise between the Contracting Parties in the application of Article 3(10)';

(e)    for the purposes of this Agreement, the Directive shall be applicable from the first day following that of the end of the transition period set out in Article 23b(2) of the Agreement.

3.    32004 L 0038: Directive 2004/38/EC of the European Parliament and of the Council of 29 April 2004 on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States amending Regulation (EEC) No 1612/68 and repealing Directives 64/221/EEC, 68/360/EEC, 72/194/EEC, 73/148/EEC, 75/34/EEC, 75/35/EEC, 90/364/EEC, 90/365/EEC and 93/96/EEC (OJ L 158, 30.4.2004, p. 77, as corrected by OJ L 229, 29.6.2004, p. 35, OJ L 30, 3.2.2005, p. 27 and OJ L 197, 28.7.2005, p. 34).

The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations:

(a)    this Agreement applies to nationals of the Contracting Parties. However, members of their family within the meaning of the Directive possessing third country nationality shall derive certain rights in accordance with Directive;

(b)    the terms 'Union citizen' and 'Union citizens' are replaced by the terms 'national of a Member State or Switzerland' and 'nationals of Member States and Switzerland', respectively;

(c)    Article 16 shall read as follows:

'1.    Nationals of Member States and Switzerland who have resided legally on the basis Article 7(1), point (a), or (3) for a total of five years in the territory of another Contracting Party shall have the right of permanent residence there. This right shall not be subject to the conditions provided for in Chapter III.

2.    Provided that they are part of a single period of legal residence in the host State, the periods to be taken into account for the purpose of calculating the acquisition of permanent residence pursuant to paragraph 1 shall not be required to be continuous but may be interrupted by periods of legal residence not on the basis Article 7(1), point (a), or (3).

3.    For the purposes of calculating the periods necessary for the acquisition of the right of permanent residence in accordance with paragraph 1, Switzerland and the Member States may decide not to take into account periods of six months or more during which the person is fully reliant on social assistance.

4.    The right of permanent residence shall also be acquired by family members who have legally resided with a national of a Member State or of Switzerland in the host State for a continuous period of five years.

5.    Continuity of residence shall not be affected by temporary absences not exceeding a total of six months a year, or by absences of a longer duration for compulsory military service, or by one absence of a maximum of twelve consecutive months for important reasons such as pregnancy and childbirth, serious illness, study or vocational training, or a posting in another country.

6.    Once acquired, the right of permanent residence shall be lost only through absence from the host State for a period exceeding two consecutive years.

7.    By derogation from paragraph 1, Member States and Switzerland may decide that the right of permanent residence is acquired by nationals of Member States and Switzerland who have resided legally for a continuous period of five years in the territory of another Contracting Party.';

(d)    in Article 24:

(i)    in paragraph 1, the words 'Treaty and secondary law' shall read 'Agreement';

(ii)    paragraph 2 is replaced by the following:

'By way of derogation from paragraph 1, the host State shall not be obliged to confer entitlement to social assistance during the first three months of residence or, where appropriate, the longer period provided for in Article 14(4), point (b), nor shall it be obliged to grant maintenance aid for studies, including vocational training, consisting in student grants or student loans to persons other than workers, self-employed persons, persons who retain such status and members of their families.';

(e)    in Article 28, paragraphs 2 and 3 shall not apply;

(f)    in Article 33, the following paragraph is added:

'Switzerland and the Member States may, instead of applying the procedures laid down in paragraph 2, ensure that the enforcement of expulsion orders is carried out in line with the requirements set out in Article 3 of Directive 64/221/EEC*

_______________

*    Council Directive 64/221/EEC of 25 February 1964 on the co-ordination of special measures concerning the movement and residence of foreign nationals which are justified on grounds of public policy, public security or public health (OJ 56, 4.4.1964, p. 850), as applicable at the time of the entry into force of the Agreement on 1 June 2002';

(g)    for the purposes of this Agreement, the Directive shall apply from the first day following that of the end of the transition period set out in Article 23b(1) of this Agreement.

4.    32006 R 0635: Commission Regulation (EC) No 635/2006 of 25 April 2006 repealing Regulation (EEC) No 1251/70 on the right of workers to remain in the territory of a Member State after having been employed in that State (OJ L 112, 26.4.2006, p. 9).

5.    32011 R 0492: Regulation (EU) No 492/2011 of the European Parliament and of the Council of 5 April 2011 on freedom of movement for workers within the Union (OJ L 141, 27.5.2011, p. 1), as amended by:

–    32016 R 0589: Regulation (EU) 2016/589 of the European Parliament and of the Council of 13 April 2016 (OJ L 107, 22.4.2016, p. 1),

–    32019 R 1149: Regulation (EU) 2019/1149 of the European Parliament and of the Council of 20 June 2019 (OJ L 186, 11.7.2019, p. 21).

The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations:

(a)    Article 9(1) shall read: 'Without prejudice to Article 7f of the Agreement, a worker who is a national of a Contracting Party and who is employed in the territory of another Contracting Party shall enjoy all the rights and benefits accorded to national workers in matters of housing, including ownership of the housing he needs.';

(b)    in Article 36:

(i)    paragraph 1 shall not apply;

(ii)    in paragraph 2, the reference to 'measures taken in accordance with Article 48 of the Treaty on the Functioning of the European Union' shall be read as a reference to the legal acts of the European Union in the field of social security integrated into this Agreement.

6.    32012 R 1024: Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (OJ L 316, 14.11.2012, p. 1), as amended by:

–    32013 L 0055: Directive 2013/55/EU of the European Parliament and of the Council of 20 November 2013 (OJ L 354, 28.12.2013, p. 132),

–    32014 L 0060: Directive 2014/60/EU of the European Parliament and of the Council of 15 May 2014 (OJ L 159, 28.5.2014, p. 1), as corrected by OJ L 147, 12.6.2015, p. 24,

–    32014 L 0067: Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 (OJ L 159, 28.5.2014, p. 11),

–    32016 R 1191: Regulation (EU) 2016/1191 of the European Parliament and of the Council of 6 July 2016 (OJ L 200, 26.7.2016, p. 1),

–    32016 R 1628: Regulation (EU) 2016/1628 of the European Parliament and of the Council of 14 September 2016 (OJ L 252, 16.9.2016, p. 53), as corrected by OJ L 231, 6.9.2019, p. 29,

–    32018 R 1724: Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 (OJ L 295, 21.11.2018, p. 1),

–    32020 L 1057: Directive (EU) 2020/1057 of the European Parliament and of the Council of 15 July 2020 (OJ L 249, 31.7.2020, p. 49),

–    32020 R 1055: Regulation (EU) 2020/1055 of the European Parliament and of the Council of 15 July 2020 (OJ L 249, 31.7.2020, p. 17).

Switzerland shall use the Internal Market Information System (IMI) as a third country for exchanges of information, including personal data, with IMI actors within the Union to implement administrative cooperation procedures where applicable for the purposes of this Agreement.

For the purposes of this Agreement, the Commission continues to consider Switzerland to provide adequate protection of personal data as referred to in Article 23(1)(c) of Regulation (EU) No 1024/2012 as long as Decision 2000/518/EC 16 remains in force. For the purposes of this Annex and as defined in Article 4 of Directive 96/71/EC and Articles 6, 7, Article 10(3), and Articles 14 to 18 of Directive 2014/67/EU, Switzerland shall use IMI in accordance with the principles and modalities of exchanges set out in those Articles.

For the purposes of this Agreement, the Swiss Commissions Paritaires shall be considered to be competent authorities within the meaning of Article 5, second paragraph, point (f), of Regulation (EU) No 1024/2012 and Article 2, point (a), of Directive 2014/67/EU. They shall use IMI for carrying out cooperation as referred to in Article 4 of Directive 96/71/EC and Articles 6, 7 and Article 10(3) of Directive 2014/67/EU when, as entrusted by Switzerland, they execute the Swiss collective labor agreements and the Swiss law on posted workers, in accordance with Directive 96/71/EC and Directive 2014/67/EU.

The provisions of Regulation (EU) No 1024/2012 shall, for the purposes of the Agreement, be read with the following adaptations:

(a)    in Article 5, first sentence, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation;

(b)    Article 8(1), point (e), shall not apply in respect of Switzerland;

(c)    in Article 9(5), as regards Switzerland, the words 'Union law' shall be replaced by 'Union law as integrated into this Agreement';

(d)    in Article 10(1), as regards Switzerland, the words 'in accordance with national or Union legislation' are replaced by the words 'in accordance with Swiss legislation';

(e)    in Article 16(1) and (2), references to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as references to the relevant national legislation;

(f)    in Article 17(4), the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation;

(g)    in Article 18(1), the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation;

(h)    in Article 20, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation;

(i)    in Article 21:

(i)    in paragraph 1, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation;

(ii)    paragraph 3 shall not apply;

(j)    Article 25 shall not apply;

(k)    Article 26(1) shall be read in line with Article 13 of the Institutional Protocol to this Agreement;

(l)    Switzerland shall be included in the IMI on the first day of the thirty-seventh month following the entry into force of the Amending Protocol.

7.    32014 L 0054: Directive 2014/54/EU of the European Parliament and of the Council of 16 April 2014 on measures facilitating the exercise of rights conferred on workers in the context of freedom of movement for workers (OJ L 128, 30.4.2014, p. 8).

The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations:

(a)    the words 'Union workers' are replaced by the word 'workers';

(b)    in Articles 1 and 3, the words 'Article 45 TFEU' are replaced by the words 'the Agreement';

(c)    in Article 4, the words 'Union rules on free movement of workers' are replaced by the words 'the rules on free movement of workers pursuant to the Agreement' and the word 'SOLVIT' shall not apply;

(d)    in Article 6, the words 'Union law' are replaced by the words 'the Agreement';

(e)    in Article 7, the words 'Article 21 TFEU and Directive 2004/38/EC' are replaced by the word 'the Agreement';

(f)    for the purposes of this Agreement, the Directive shall be applicable from the first day of the twenty-fifth month following the entry into force of the Amending Protocol.

8.    32014 L 0067: Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services and amending Regulation (EU) No 1024/2012 on administrative cooperation through the Internal Market Information System (the 'IMI Regulation') (OJ L 159, 28.5.2014, p. 11).

The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations:

(a)    in Article 1:

(i)    in paragraph 1, second subparagraph, the words 'while facilitating the exercise of the freedom to provide services for service providers and promoting fair competition between service providers, and thus supporting the functioning of the internal market' shall read 'while facilitating, to the extent provided for in the Agreement, the exercise of the freedom to provide services and promoting, to the extent provided for in the Agreement, fair competition between service providers, and thus supporting the functioning of the fields related to the internal market in which Switzerland participates';

(ii)    in paragraph 2, the words 'the exercise of fundamental rights as recognised in Member States and at Union level' are replaced by the words 'the exercise of fundamental rights as recognised in Member States and at Union level as well as in Switzerland';

(b)    in Article 4(3), point (c), as regards Switzerland, the words 'according to Regulation (EC) No 593/2008 (Rome I) and/or the Rome Convention' are replaced by the words 'according to the Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, done at Lugano on 30 October 2007';

(c)    in Article 6:

(i)    in paragraph 5, second subparagraph, the words 'the Commission being informed, where relevant by means of IMI, shall take the appropriate measures' are replaced by 'the Joint Committee shall be informed with a view to finding a solution.';

(ii)    in paragraph 10, the words 'relevant national and Union law' are replaced by the words 'relevant national law and the Agreement'.

(d)    in Article 7(6), the words 'Union law' are replaced by the words 'the Agreement'.

(e)    in Article 9:

(i)    in paragraph 1:

–    in the first subparagraph, the words 'Union law' are replaced by the words 'the Agreement';

–    in the second subparagraph, point (a), the words 'at the latest at the commencement of the service provision' shall read, for Switzerland, 'at the latest at the commencement of the service provision a maximum of four working days in specific sectors before the posting for service providers that post workers on its territory in order to carry out on‑site controls (Switzerland shall define autonomously the sectors and areas covered by the prior notification period on the basis of an objective risk analysis, in a proportionate and non-discriminatory manner, taking into account, that the Agreement limits the freedom to provide services to 90 days of actual work per calendar year)':

(ii)    in paragraph 3, the words 'the Union legislation' are replaced by the words 'the Agreement';

(iii)    in paragraph 5, the second and third subparagraphs shall not apply to Switzerland;

(f)    in Article 10(2), the following sentence is added:

'Switzerland shall define autonomously the control quantity and control density, as well as the sectors and areas to be controlled, on the basis of an objective risk analysis, in a proportionate and non-discriminatory manner, taking into account that the Agreement limits the freedom to provide services to 90 days of actual work per calendar year';

(g)    in Article 12:

(i)    in paragraph 4, the words 'Union law' are replaced by the words 'the Agreement';

(ii)    in paragraph 6, the words 'with Union and national law and/or practice' are replaced by the words 'with the Agreement and national law and/or practice';

(iii)    paragraph 8 shall not apply to Switzerland;

(h)    in Article 20, the following sentences are added:

'In the case of service providers that have failed to meet their financial obligations towards enforcement authorities and bodies with regard to a previous provision of services, Switzerland shall be able to require the deposit of a proportionate financial guarantee before they may provide services again in sectors determined on the basis of an autonomous and objective risk analysis. In case of non-payment of the financial guarantee, Switzerland shall be able to impose proportionate sanctions up to the prohibition to provide services until the payment of the guarantee.';

(i)    for the purposes of this Agreement, the Directive shall be applicable from the first day following that of the end of the transition period set out in Article 23b(2) of the Agreement.

9.    32016 R 0589: Regulation (EU) 2016/589 of the European Parliament and of the Council of 13 April 2016 on a European network of employment services (EURES), workers' access to mobility services and the further integration of labour markets and amending Regulations (EU) No 492/2011 and (EU) No 1296/2013 (OJ L 107, 22.4.2016, p. 1), as amended by:

–    32019 R 1149: Regulation (EU) 2019/1149 of the European Parliament and of the Council of 20 June 2019 (OJ L 186, 11.7.2019, p. 21).

The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations:

(a)    for the purposes of the Agreement, the Commission continues to consider Switzerland to provide adequate protection of personal data as referred to under Article 34 of Regulation (EU) 2016/589 as long as the Decision 2000/518/EC 17 remains in force;

(b)    the words 'Article 45 TFEU' are replaced by the words 'Article 4 of the Agreement';

(c)    the words 'citizens of the Union' are replaced by the words 'nationals of Member States and Switzerland';

(d)    in Article 6:

(i)    references to Article 3 of the Treaty on European Union and to Article 145 of the Treaty on the Functioning of the European Union shall not apply;

(ii)    in point (d), the words 'in the Union' are replaced by 'in the Union and Switzerland' and the words 'in compliance with Union and national law and practice' are replaced by 'in compliance with the Agreement and national law and practice';

(e)    in Article 9(4), point (c), the words 'existing Union rules and instruments' are replaced by the words 'existing rules and instruments applicable pursuant to the Agreement';

(f)    in Article 34, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation.

10.    32017 D 1255: Commission Implementing Decision (EU) 2017/1255 of 11 July 2017 on a template for the description of national systems and procedures to admit organisations to become EURES Members and Partners (OJ L 179, 12.7.2017, p. 18).

11.    32017 D 1256: Commission Implementing Decision (EU) 2017/1256 of 11 July 2017 on templates and procedures for the exchange of information on the EURES network national work programmes at Union level (OJ L 179, 12.7.2017, p. 24).

12.    32017 D 1257: Commission Implementing Decision (EU) 2017/1257 of 11 July 2017 on the technical standards and formats required for a uniform system to enable matching of job vacancies with job applications and CVs on the EURES portal (OJ L 179, 12.7.2017, p. 32).

13.    32018 D 0170: Commission Implementing Decision (EU) 2018/170 of 2 February 2018 on uniform detailed specifications for data collection and analysis to monitor and evaluate the functioning of the EURES network (OJ L 31, 3.2.2018, p. 104).

14.    32018 D 1020: Commission Implementing Decision (EU) 2018/1020 of 18 July 2018 on the adoption and updating of the list of skills, competences and occupations of the European classification for the purpose of automated matching through the EURES common IT platform (OJ L 183, 19.7.2018, p. 17).

15.    32018 D 1021: Commission Implementing Decision (EU) 2018/1021 of 18 July 2018 on the adoption of technical standards and formats necessary for the operation of the automated matching through the common IT platform using the European classification and the interoperability between national systems and the European classification (OJ L 183, 19.7.2018, p. 20).

16.    32018 R 1724: Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 1), as amended by:

–    32022 R 0868: Regulation (EU) 2022/868 of the European Parliament and of the Council of 30 May 2022 (OJ L 152, 3.6.2022, p. 1),

–    32024 R 1252: Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 (OJ L, 2024/1252, 3.5.2024),

–    32024 R 1735: Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 (OJ L, 2024/1735, 28.6.2024).

Some of the areas referred to in Annex I to Regulation (EU) 2018/1724 and some of the procedures referred to in Annex II to that Regulation fall outside the scope of this Agreement. The integration of that Regulation in this Agreement is without prejudice to the scope of the Agreement.

The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations:

(a)    in Article 1(1):

(i)    in point (a), the words 'derived from Union law in the field of the internal market, within the meaning of Article 26(2) TFEU' are replaced by the words 'derived from the Agreement';

(ii)    in point (b), the references to Directives 2006/123/EC, 2014/24/EU and 2014/25/EU shall not apply;

(b)    in Article 13(2), point (c), the reference to Regulation (EU) No 910/2014 shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation;

(c)    in Article 14:

(i)    in paragraph 1, the references to Directives 2006/123/EC, 2014/24/EU and 2014/25/EU shall not apply;

(ii)    in paragraph 5, the reference to Regulation (EU) 2016/679 shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation;

(d)    in Article 30(1), point (b), the reference to Regulation (EU) No 910/2014 shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation.

17.    32019 R 1157: Regulation (EU) 2019/1157 of the European Parliament and of the Council of 20 June 2019 on strengthening the security of identity cards of Union citizens and of residence documents issued to Union citizens and their family members exercising their right of free movement (OJ L 188, 12.7.2019, p. 67).

The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations:

(a)    the terms 'Union citizen' and 'Union citizens' are replaced by the terms 'national of a Member State or Switzerland' and 'nationals of Member States and Switzerland', respectively;

(b)    in Article 3:

(i)    in paragraph 4, as regards Switzerland, the words 'printed in negative in a blue rectangle and encircled by 12 yellow stars' shall not apply;

(ii)    in paragraph 5, as regards Switzerland, the following subparagraph is added:

'By derogation from the first subparagraph, where identity cards are issued without a highly secure storage medium containing the two fingerprints of the holder, such identity cards shall not be accepted for the purposes of entry and residence in other Contracting Parties and shall be visually distinguishable from identity cards complying with the requirements of the first subparagraph.';

(c)    in Article 5:

(i)    in paragraph 1, as regards Switzerland, the words 'by 3 August 2031' shall read 'eleven years after the date of entry into force of the Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons ("the Amending Protocol")';

(ii)    in paragraph 2, as regards Switzerland, the words 'by 3 August 2026' shall read 'six years after the date of entry into force of the Amending Protocol';

(d)    in Article 6, point (h), as regards Switzerland, the words 'printed in negative in a blue rectangle and encircled by twelve yellow stars' shall not apply;

(e)    in Article 7(2), as regards the Member States, the words 'Family Member EU' shall be replaced by the words 'Family Member CH';

(f)    in Article 8:

(i)    in paragraph 1, as regards Switzerland, the words 'by 3 August 2026' shall read 'six years after the date of entry into force of the Amending Protocol';

(ii)    in paragraph 2, as regards Switzerland, the words 'by 3 August 2023' shall read 'three years after the date of entry into force of the Amending Protocol';

(g)    in Article 10(2), as regards Switzerland, the words “the Charter” shall not apply;

(h)    in Article 11:

(i)    as regards Switzerland, references to Regulation (EU) 2016/679 shall be understood as a reference to the relevant national legislation.

(ii)    in paragraph 4, as regards Switzerland, the word 'Union' shall read 'the Agreement';

(i)    in Article 16, as regards Switzerland, the words '2 August 2021' shall read 'one year after the date of entry into force of the Amending Protocol';

18.    32020 R 1121: Commission Implementing Regulation (EU) 2020/1121 of 29 July 2020 on the collection and sharing of user statistics and feedback on the services of the single digital gateway in accordance with Regulation (EU) 2018/1724 of the European Parliament and of the Council (OJ L 245, 30.7.2020, p. 3).".

________________

ANNEX II

CO-ORDINATION OF SOCIAL SECURITY SCHEMES

Amendments to Annex II to the Agreement

Annex II to the Agreement is replaced by the following:

"ANNEX II

CO-ORDINATION OF SOCIAL SECURITY SCHEMES

I.    INTRODUCTION

For the purposes of the application of Articles 2 to 9 of the Agreement, the legal acts of the Union listed in Section II of this Annex shall apply subject to the principle of dynamic alignment referred to in Article 5 of the Institutional Protocol to this Agreement, as well as subject to the exceptions listed in paragraph 7 of that Article.

Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland. This shall be applied in full respect of the Institutional Protocol to this Agreement.

Without prejudice to Article 16 of the Institutional Protocol to this Agreement, and unless otherwise provided for in technical adaptations, provisions of the acts listed in Section II that require the Member States to provide information to other Member States or to the Commission shall apply to Switzerland. When this information relates to surveillance or application, Switzerland shall communicate this information via the Joint Committee.

II.    SECTORAL ADAPTATIONS

1.    With regard to the acts listed in this Annex, the following exceptions shall apply as regards Switzerland:

(a)    cantonal legislation concerning the advances of maintenance payments shall be excluded from the coordination rules on social security;

(b)    supplementary benefits and similar benefits provided for under cantonal legislation shall not be exported;

(c)    non-contributory mixed benefits in the event of unemployment, as provided for by cantonal legislation, shall not be exported;

(d)    persons to whom the Agreement applies and residing outside Switzerland and the Union may join the voluntary insurance scheme not later than one year from the date on which they ceased to be covered by old-age, survivors' and invalidity insurance and after a continuous period of insurance of at least five years;

(e)    persons working outside Switzerland and the Union for an employer in Switzerland and who cease to be insured under Swiss old-age, survivors' and invalidity insurance after a continuous period of insurance of at least five years may continue the insurance, with the consent of the employer, if they submit an application within six months of the date on which they ceased to be insured;

(f)    the helplessness allowance granted under the Federal Law on invalidity insurance of 19 June 1959 and under the Federal Law on old-age and survivors' insurance of 20 December 1946 shall not be exported.

2.    The modalities for the participation of Switzerland in the Administrative Commission for the Coordination of Social Security Systems and in the Technical Commission for Data Processing and in the Audit Board, both attached to the Administrative Commission, shall be the following:

Switzerland may send a representative, present in an advisory capacity (observer), to the meetings of the Administrative Commission for the Coordination of Social Security systems, attached to the European Commission, and to the meetings of the Technical Commission for data processing and of the Audit Board.

3.    Special provisions concerning the transitory arrangements relating to unemployment insurance for nationals of certain Member States holding a Swiss residence permit valid for less than one year, concerning the Swiss allowances for helpless persons and concerning the transitional period for the application of Regulation (EC) No 883/2004 to the extended pension scheme under the occupational benefit plans are set out in Protocol I, which forms an integral part of this Annex.

4.    The arrangements relating to the protection of rights acquired by private individuals under this Agreement as a consequence of the United Kingdom's withdrawal from the Union are set out in Protocol II, which forms an integral part of this Annex.

A.    GENERAL SOCIAL SECURITY COORDINATION

A.1    ACTS REFERRED TO

1.    32004 R 0883: Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p. 1), as corrected by OJ L 200, 7.6.2004, p. 1 and OJ L 204, 4.8.2007, p. 30, as amended by:

–    32009 R 0988: Regulation (EC) No 988/2009 of the European Parliament and of the Council of 16 September 2009 (OJ L 284, 30.10.2009, p. 43),

–    32010 R 1244: Commission Regulation (EU) No 1244/2010 of 9 December 2010 (OJ L 338, 22.12.2010, p. 35),

–    32012 R 0465: Regulation (EU) No 465/2012 of the European Parliament and of the Council of 22 May 2012 (OJ L 149, 8.6.2012, p. 4),

–    32012 R 1224: Commission Regulation (EU) No 1224/2012 of 18 December 2012 (OJ L 349, 19.12.2012, p. 45),

–    32013 R 0517: Council Regulation (EU) No 517/2013 of 13 May 2013 (OJ L 158, 10.6.2013, p. 1),

–    32013 R 1372: Commission Regulation (EU) No 1372/2013 of 19 December 2013 (OJ L 346, 20.12.2013, p. 27), as amended by:

–    32014 R 1368: Commission Regulation (EU) No 1368/2014 of 17 December 2014 (OJ L 366, 20.12.2014, p. 15), as corrected by OJ L 288, 22.10.2016, p. 58,