Germany and France open a ‘Made in Europe’ door to Switzerland

A Franco-German proposal could give Swiss companies a place inside the EU’s emerging industrial preference system. Berlin and Paris have backed Switzerland’s inclusion in the proposed “Made in Europe” initiative, according to a position paper published on Thursday and seen by the Keystone-SDA news agency. The policy would favour European production in public procurement, an area with direct consequences for manufacturers, technology firms and infrastructure suppliers.

The proposal arrives as Switzerland presses Brussels and its European neighbours for equal treatment. Swiss officials have lobbied for months against being placed outside industrial measures that include other closely connected European economies. Under the Franco-German plan, Switzerland would stand alongside European Economic Area countries and the United Kingdom.

That opening comes with conditions. A diplomat in Brussels, speaking anonymously, said participation would require formal association and warned that not all German political parties had approved the proposal. The initiative therefore offers Switzerland a possible route into the scheme, not a guaranteed entitlement. EU member states still need to settle the policy’s final scope and legal terms.

Public procurement is the policy’s main prize for Swiss industry. “Made in Europe” refers to a proposed European preference in public purchasing. The EU is discussing whether contracts backed by public money should give greater weight to goods and services produced within Europe. Such rules could affect transport projects, energy infrastructure, defence-related supply chains and other major tenders.

For Swiss companies, eligibility could improve access to procurement opportunities across the EU. Switzerland’s industrial economy depends heavily on cross-border trade and integrated supply chains, while many firms compete in specialised sectors where public contracts can provide long-term demand. The proposal could also reduce the risk that Swiss suppliers face a disadvantage compared with companies from the EEA.

The source does not specify which Swiss sectors would qualify, how preference rules would be measured or whether Swiss firms would receive access to all covered tenders. Those details will determine the commercial value of the offer. Formal association could also require Switzerland to accept common rules, oversight mechanisms or reciprocal commitments. Until EU governments agree on the framework, the potential benefit remains provisional.

Switzerland’s campaign follows a series of disputes over how closely connected partners are treated by Brussels. Switzerland has protested after proposed EU steel safeguards treated it less favourably than Norway, Iceland and Liechtenstein, the three EEA members. Bern has also raised concerns about parts of the bloc’s Industrial Accelerator Act.

Those disagreements have exposed the limits of Switzerland’s position outside the European Economic Area. Swiss companies often operate within European production networks, yet policy decisions can classify them differently from firms based in EEA countries. The result can be additional uncertainty for exporters, suppliers and investors when the EU designs measures aimed at strengthening European industry.

The Franco-German paper signals that two of Europe’s largest economies recognise the practical case for including Switzerland. It does not erase the institutional distinction. The diplomat’s warning about incomplete German political backing underlines the domestic politics surrounding the proposal, while the requirement for formal association points to a negotiated arrangement rather than automatic participation.

For Bern, the task now is to turn political support from Berlin and Paris into a precise agreement that protects Swiss access without leaving key sectors exposed to new conditions.

The next decision will rest on the conditions attached to formal association. The Franco-German initiative gives Switzerland a diplomatic opening, but the final outcome will depend on negotiations inside the EU and between Brussels and Bern. The proposal must still survive political scrutiny in Germany, where a diplomat said that not all parties had endorsed Swiss inclusion.

Switzerland will need to assess the trade-off between access and alignment. Association could bring Swiss companies closer to European public procurement, yet it may also involve commitments on regulatory compliance, monitoring and reciprocity. The available position paper does not spell out those obligations, and the EU has not finalised the “Made in Europe” framework.

The Swiss government’s months-long lobbying effort has at least secured a clear signal from Berlin and Paris. That signal gives Bern leverage as European governments debate the treatment of non-EU European states. It also gives Swiss industry a reason to follow the negotiations closely, since the difference between full eligibility and limited access could shape future investment and tendering decisions.

For now, Switzerland has an invitation to negotiate, with the terms still unwritten.