Swiss Senate reshapes the EU deal before a national vote

The Senate approved CHF 3.3 billion in commitment credits for Switzerland’s future contribution to European cohesion. If the package takes effect, payments would be made between 2030 and 2036. The money would support projects connected to economic and social disparities, migration and an additional one-off commitment.

The largest allocation, CHF 2 billion, would target the reduction of economic and social disparities. A further CHF 273.4 million would fund migration-related projects. Roughly CHF 1 billion would be assigned as an additional one-off commitment. These sums will form part of the political case made by both supporters and opponents before any national vote.

The financial decision sits alongside the Senate’s work on state aid. Senators completed legislation to establish a Swiss body that would monitor subsidies and other public support in areas covered by the bilateral agreements. The stated aim is to prevent government assistance from distorting competition.

For supporters of Bilaterals III, the contribution is part of maintaining a workable relationship with Switzerland’s largest economic partner. Critics will examine the cost, the oversight arrangements and the extent to which the package links domestic policy to EU rules. Parliament still has to settle the final text before those arguments reach the wider electorate.

Immigration produced the sharpest break between the Council of States and the Federal Council. Senators endorsed the possibility of an immigration levy if EU immigration created “serious economic or social problems”. The Federal Council would use defined thresholds to determine whether the negotiated safeguard clause could be activated.

The upper house also voted to require EU citizens arriving in Switzerland to provide criminal-record information during the admission process. Another amendment would restrict access to the new permanent-residence status envisaged under the partial adoption of the EU Citizens’ Rights Directive. EU nationals who are unemployed or receiving social assistance would be barred from applying, and their five-year qualifying period would restart.

The Federal Council argued that a blanket exclusion of welfare recipients could conflict with the agreement on the free movement of people. That warning sets up a difficult exchange with the National Council, where the Senate’s amendments will face renewed scrutiny.

The chamber took a more cautious line on wage protection. It largely preserved the compromise negotiated with Brussels and supported by the Federal Council and social partners. A security deposit for foreign firms posting workers would generally disappear, although authorities could demand one from a company that had already breached its obligations. Senators also backed an accompanying measure intended to strengthen protection against dismissal.

The next parliamentary rounds will decide whether the Senate’s amendments survive long enough to reach voters. The National Council is expected to debate Bilaterals III during the winter session. The Council of States will return to the electricity agreement in December, leaving a major part of the package outside the first examination.

The debate also reaches beyond domestic regulation. Justice Minister Beat Jans highlighted the 460,000 Swiss nationals living in EU member states, more than half of all Swiss Abroad. He said the agreement should protect their ability to live, work and study in the EU with fewer administrative barriers and, where applicable, tuition conditions similar to those for Europeans.

That perspective gives the treaty a direct human dimension for Swiss families, students and workers across the continent. The package also carries consequences for employers, cantons, municipalities and public authorities that would apply the new rules on mobility, state aid and market access.

No final referendum date has been announced. Parliament must first reconcile the two chambers, complete consideration of electricity and settle the referendum mechanism. Brussels’ response to any parliamentary or popular rejection also remains uncertain. The coming sessions will show whether Switzerland’s negotiating room expands through parliamentary amendments or narrows as the package moves toward a national decision.