Switzerland’s EU deal moves forward as referendum questions take shape

After roughly 24 hours of debate, the Council of States has advanced the largest effort in years to reset Switzerland’s bilateral relationship with the European Union. On October 1, 2026, senators approved most of the stabilisation section of Bilaterals III, including a CHF 193 million commitment for Erasmus+ participation from 2027. The package now goes to the National Council, where lawmakers will examine the upper house’s decisions during the winter session.

The vote gives the agreement political momentum, while leaving important decisions open. The electricity agreement was not included in this round and is due to return to the Council of States in December. Differences between the two chambers could also force further parliamentary exchanges before the package is complete.

The agreements would give Switzerland a more structured way to update market-access rules, manage disputes and oversee state aid. They also cover food safety, health cooperation and education. The negotiations follow the collapse of an institutional framework agreement in 2021, after Switzerland ended the talks.

For voters, the Senate has already defined a demanding route. It backed a mandatory referendum, meaning the final package would need approval from both a majority of voters and a majority of the cantons. The exact timing and form of the vote remain unsettled.

The Senate approved Erasmus+ funding by 23 votes to 19, with two abstentions, tying student mobility to the wider EU settlement. The CHF 193 million appropriation covers Switzerland’s participation in the European education programme from 2027. The measure faced resistance from some centre-right senators and from the Senate Finance Committee, which narrowly recommended rejection because of pressure on the federal budget.

Education Committee chair Matthias Michel argued that refusing the credit would exclude Swiss students and apprentices from the programme. Swiss President Guy Parmelin, who also serves as minister for research and education, told senators that the benefits outweighed the costs. The funding would support exchanges and cooperation in higher and vocational education, areas that lawmakers linked to skills development and economic performance.

The Senate also backed equal tuition treatment for Swiss and EU students at the federal institutes of technology, ETH Zurich and EPFL. The decision addresses a practical issue that could affect the attractiveness and fairness of Swiss higher education as mobility arrangements develop.

The Erasmus vote still requires approval from the National Council. Because the appropriation forms part of the stabilisation package, a rejection in the lower house could reopen the education component and complicate Switzerland’s broader discussions with Brussels.

The referendum clause could determine how much political weight the EU package carries at the ballot box. The Council of States backed both a legislative provision and a constitutional amendment requiring a mandatory referendum. Under that model, voters would need to approve the package nationally, while the cantons would also have to deliver a majority.

The Federal Council had favoured an optional referendum, which would require only a nationwide majority if a vote were triggered. The Senate’s position therefore raises the threshold and makes the cantons active participants in the final decision. Any constitutional amendment would also require passage through the National Council before the public can be asked to decide.

The precise voting timetable remains unknown. Parliament must complete its examination, settle any differences between the chambers and address the electricity agreement, which has been held over for later consideration. The Federal Council and parliament will then need to clarify how the separate decisions are presented to the electorate.

Switzerland’s bilateral system has always depended on popular consent. The country rejected European Economic Area membership in 1992 and later built its relationship with Brussels through individual agreements covering free movement, trade and transport. Bilaterals III now faces a vote under rules that could require support from voters and cantons alike.

Immigration amendments pushed the Senate beyond the Federal Council’s preferred position. Senators endorsed an immigration levy as a possible response if EU immigration created serious economic or social problems. The Federal Council would apply specified thresholds when deciding whether the safeguard conditions had been met.

The upper house also voted for criminal-record information from EU citizens during the admission process. It restricted access to the new permanent-residence status envisaged under a partial adoption of the EU Citizens’ Rights Directive. EU nationals who are unemployed or receiving social assistance would be excluded from applying, and their five-year qualifying period would restart.

The Federal Council warned during the debate that a blanket exclusion of welfare recipients could conflict with the free-movement agreement. That issue may become a major point of negotiation when the National Council examines the package and when both chambers reconcile their positions.

On wage protection, the Senate largely retained the compromise negotiated with the EU and supported by the government and social partners. The existing security deposit for foreign firms posting workers in Switzerland would be removed as a general requirement. Authorities could demand a deposit from a company that had already breached its obligations. Senators also supported a measure to strengthen protection against dismissal.

The Senate approved CHF 3.3 billion in future commitment credits, making the financial terms one of the package’s clearest tests. Payments would run from 2030 to 2036 if the agreements take effect. Of the total, CHF 2 billion would support projects aimed at reducing economic and social disparities, CHF 273.4 million would fund migration-related projects and about CHF 1 billion would form an additional one-off commitment.

The figures sit alongside the immediate Erasmus+ appropriation and explain why budget pressure shaped the Senate debate. Some centre-right senators questioned whether the federal government should approve new spending while finances remain strained and austerity measures are under discussion.

The package also contains institutional safeguards. Parliament completed work on legislation to establish a Swiss body monitoring state aid and subsidies in sectors covered by the bilateral agreements. The aim is to prevent public support from distorting competition. Food safety and health agreements would create closer cooperation with the EU, including access to European health-security mechanisms and the European Centre for Disease Prevention and Control.

The National Council now inherits a package with funding, migration rules, education provisions and referendum architecture already marked by the upper house. Its decisions will determine which amendments survive into the final parliamentary text and what Swiss voters will eventually be asked to approve.