Explanatory Memorandum to COM(2025)160 - Signing and provisional application of the Agreement with Switzerland on the participation of Switzerland in Union Programmes
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2025)160 - Signing and provisional application of the Agreement with Switzerland on the participation of Switzerland in Union ... |
|---|---|
| source | COM(2025)160  |
| date | 09-04-2025 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The EU and Switzerland are closely intertwined from an economic, historical, cultural, social and political perspective. The EU is Switzerland’s largest trading partner, while Switzerland is the EU’s fourth largest trading partner. Over 1.5 million EU citizens live in Switzerland and just under 450,000 Swiss nationals live in the EU. Every day a few hundred thousand frontier workers cross the EU-Swiss border in both directions.
The EU and Switzerland are tied together by multiple bilateral agreements. Through the 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 EU’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 EU 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 European Union on numerous Union funding programmes focused notably on research, innovation, and education. Since 1987, Swiss universities and the private sector actively participated in the EU’s research and innovation framework programmes. That same year, the first bilateral agreement on scientific and technological cooperation entered into force 2 . Switzerland remains deeply engaged in various European initiatives, including the European Organization for Nuclear Research (CERN), the European Space Agency, the European Cooperation in Science and Technology (COST), and Eureka. It was also associated with the Euratom Research and Training Programme in the period 2014-2020 3 and participated in activities related to the European Joint Undertaking for ITER and the Development of Fusion for Energy between 2014-2020 based on the Association Agreement to Horizon 2020 and Euratom. Furthermore, Switzerland was formerly a member of the EU’s Erasmus programme 4 .
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 EU 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 their 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 exploratory process confirmed both sides’ strong interest in revitalising their cooperation in research, innovation, and education. In this context, the Common Understanding affirmed the intention to establish, as part of the broader package, a legal framework enabling Switzerland’s participation in the current MFF 2021-2027 and later generations of Union programmes, including the Research and Innovation framework programmes, Digital Europe, and Erasmus+. Furthermore, the Common Understanding confirmed both sides’ intention to re-engage in negotiations on the implementation of the existing EU-Switzerland GNSS agreement (Galileo and EGNOS) and to initiate discussions on Switzerland’s participation in the Copernicus component of the EU Space programme.
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. The overall objective of these negotiations was to modernise and strengthen bilateral relations between the EU and Switzerland, ensure fair competition between EU and Swiss companies operating within the internal market, and safeguard the rights of EU 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 EU 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 of the European Union adopted a decision on 12 March 2024, authorising the Commission to launch negotiations on the broad package of measures, along with detailed negotiating directives.
The negotiating directives confirmed that, as part of the package, the Commission should negotiate a standalone agreement outlining the general terms and conditions for Switzerland’s participation in Union programmes. This agreement should ensure a fair balance between Switzerland’s contributions and the benefits derived from participation in these programmes, as well as establish the conditions of participation, including the calculation of financial contributions to each of those programmes and their administrative costs. The protocols for Switzerland’s association to specific Union programmes should establish the list of programmes in which Switzerland participates for each generation of programmes. According to the negotiating directives, the agreement should also allow for the possibility of Switzerland’s future association with other Union programmes through a protocol or protocols, which would be adopted via a simplified procedure by a Joint Committee set up under the agreement.
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 appointed by the Council as the special committee 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 duly informed on the negotiation process 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 the five agreements which already give Switzerland access to the EU internal market 5 ; a new agreement on food safety that will establish a Common Food Safety Area covering all dimensions of the food chain; a new agreement on health that will allow Switzerland to take part in EU 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 electricity that will allow the participation of Switzerland in the EU internal electricity market; 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, namely 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 EU-Switzerland 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.
While the agreement regarding Switzerland’s participation in Union programmes (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 (‘the Agreement’)) forms an integral part of the broader package negotiated between the two partners in 2024, the Commission has decided to expedite the proposal for its signature with the aim of starting its provisional application – in accordance with Article 18 if it is signed before 15 November 2025 – with effect from 1 January 2025. This approach will allow to give effect to the transitional arrangements that the Commission granted to Switzerland during the negotiations of the broader package, for award procedures implementing the 2025 commitment appropriations. Given the significance of Switzerland’s participation, the provisional application of this Agreement is in the EU’s interest. At the same time, it does not affect the broad package approach established by the Common Understanding and confirmed by the Council negotiating directives, as the Agreement concerning Switzerland’s participation in Union programmes includes a sunset clause, which provides that the provisional application of the Agreement will cease if Switzerland does not complete its procedures necessary for the entry into force of the package by the end of 2028. Moreover, the conclusion of the Agreement is foreseen as part of the wider package, which encompasses other key agreements that were the subject of the negotiations conducted in 2024. The Commission intends to make a separate proposal to that effect.
Given that Switzerland will also participate in the Euratom Research and Training programme, and in the European Joint Undertaking for ITER and the Development of Fusion for Energy, this proposal is accompanied by a Commission Recommendation for a Council Decision approving the conclusion and provisional application of the Agreement on Union programmes (for matters falling under the Euratom Treaty).
• Consistency with existing policy provisions in the policy area
In terms of content, the Agreement on Switzerland’s participation in Union programmes is similar to other agreements that the European Union has concluded over the past years with partners such as the United Kingdom, New Zealand and Canada and is therefore consistent with the Union’s policy in the field. The Agreement however contains certain specific provisions related to its integration in the broad package of which this Agreement is an integral part, in particular in order to cater for the link between Switzerland’s participation in the EU4Health programme and the new Agreement between the European Union and the Swiss Confederation on health.
• Consistency with other Union policies
The Agreement which is a part of a 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 participation of Switzerland in Union programmes will fully respect the basic acts defining the programmes and the existing Union regulations related to financial management such as the Financial Regulation 6 .
2. LEGAL BASIS
The Agreement establishes the rules applicable to the participation of Switzerland in any Union programme, activity, or parts thereof, which are open to its participation, and covers a wide range of areas under the TFEU, notably in research and innovation, education, training, youth, sport and culture, as well as other areas of common interest such as digital transformation and action in the field of health. The negotiations on the Agreement were launched and have been finalised at the same time as those on the broad package. The Agreement is intrinsically linked to the other elements of the broad package. In this respect, the Agreement provides for its entry into force subject to the fulfilment of the internal procedures necessary for the entry into force of thirteen other instruments of the package. It includes a sunset clause, which provides that the provisional application of the 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 Agreement also contains provisions ensuring that Switzerland’s participation in the Programme for the Union’s action in the field of health is closely linked to the Agreement between the European Union and the Swiss Confederation on Health. In addition, compensatory measures could be taken under the Agreement in case of non-compliance with the obligations deriving from the Agreement on Switzerland’s contribution to cohesion. Given the intrinsic links with other key agreements of the wider package, the Agreement should be concluded at the same time as the other agreements of the package and as an integral part of that package.
As this Agreement envisages association to several Union programmes, and is part of a broad package of linked agreements, its main objective is reflected in the legal basis providing for the establishment of an association allowing the Union to enter into commitments in all areas covered by the Treaties. Hence, the appropriate substantive legal basis for the proposed Council Decision on the signing and provisional application of the Agreement, as regards matters falling under the Treaty on the Functioning of the European Union, is Article 217 TFEU. This should be distinguished from the case of recent agreements with New Zealand, Canada and the Republic of Korea, on participation of these countries in Union programmes and their association to Horizon Europe, which were based on Article 212 TFEU in view of their more limited scope.
The procedural legal basis is Article 218(5) TFEU, read in conjunction with the second subparagraph of Article 218(8) TFEU which provides for unanimity voting in the Council.
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 Agreement also covers Switzerland's participation in activities under the Treaty establishing the European Atomic Energy Community (the ‘Euratom Treaty’) pertaining to nuclear fusion, fission and training. The signing and provisional application of the Agreement as regards matters falling under the Euratom Treaty is subject to a Recommendation for a Council Decision approving the conclusion, by the European Commission, of the Agreement between the European Union and the European Atomic Energy Community of the one part, and Switzerland of the other part, on the participation of the Swiss Confederation in Union Programmes, that is submitted together with this proposal under a separate procedure.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
• Stakeholder consultations
• Collection and use of expertise
• Impact assessment
• Regulatory fitness and simplification
• Fundamental rights
4. BUDGETARY IMPLICATIONS
The Agreement will have an impact on the EU budget through the association of Switzerland to Horizon Europe, Euratom Research and Training Programme, the activities of the European Joint Undertaking for ITER and the Development of Fusion Energy, Digital Europe, Erasmus+ and EU4Health programmes. The Agreement sets out fair and balanced conditions concerning the financial contribution of Switzerland to Union programmes in which it would participate and provides for the administrative costs for managing those programmes. The Agreement includes a reciprocity clause, ensuring that legal entities established in the Union have, as far as possible, access to participate in Switzerland’s equivalent research and innovation programmes, in accordance with the conditions laid down in the domestic legislation of Switzerland.
The Legislative Financial Statement presented with this proposal sets out the indicative budgetary implications.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
• Explanatory documents (for directives)
• Detailed explanation of the specific provisions of the proposal
The Agreement on participation in Union programmes sets out the legal framework for the participation of Switzerland in Union programmes, ensuring a fair balance as regards the contributions and benefits. It also ensures that no decision-making power is conferred on Switzerland in respect of the programmes in which Switzerland participates.
The Agreement lays down the conditions for the calculation of financial contributions to individual programmes and their administrative costs, and guarantees the rights of the Union to ensure sound financial management and to protect the Union's financial interests.
The Agreement also lays down other conditions for the participation in Union programmes, such as provisions regarding the mobility of persons that participate in the implementation of those Union programmes. The Agreement includes the conditions for the suspension of the participation of Switzerland in Union programmes and the termination of the Agreement. It also includes provisions ensuring that those cases will not affect the legal commitments entered into with Swiss entities.
The Agreement provides for its provisional application with retroactive effect from 1 January 2025, if signed before 15 November 2025, with the objective of starting the cooperation in the fields covered by the Agreement on the date specified for each programme. As regards Switzerland’s participation in the EU4Health Programme, that date is linked to the date of entry into force of the Agreement on Health.
Protocol I covers Switzerland’s participation in Horizon Europe and the Digital Europe programmes, from 1 January 2025, and Erasmus+ from 1 January 2027. Protocol I also covers the Euratom Research and Training programme and the activities of the European Joint Undertaking Fusion for Energy (F4E) for ITER. The Euratom Research and Training Programme is a matter that falls under the Euratom Treaty. It is therefore covered by the Recommendation for a Council Decision approving the conclusion, by the European Commission, of the Agreement for matters falling under the Euratom Treaty that is submitted together with this proposal under a separate procedure.
Horizon Europe (2021-2027) 7 is the flagship Union programme for research and innovation. Protocol I foresees Switzerland’s association to the entirety of the Horizon Europe programme. Pillar I of the programme primarily aims to strengthen the EU’s own science and technology bases, build-up European research and innovation capabilities and attract knowledge and talents to Europe. Pillar II aims at tackling Global Challenges and strengthening European industrial competitiveness, often through projects of a multi- or interdisciplinary nature. Pillar III focuses on the competitiveness and the innovative capabilities of the EU. Switzerland’s association covers also the parts of the programme focusing on widening participation and strengthening the European Research Area.
Switzerland is expected to be associated to Erasmus+, the Union Programme for education and training, youth and sport, as of 1 January 2027. The objective of the programme is to support, through lifelong learning, the educational, professional and personal development of people in education, training, youth and sport, in Europe and beyond. It includes actions focused on mobility, cooperation between organisations and policy development. The specificity of the programme as compared to other Union programmes is that the largest part of its budget is managed in indirect management.
Protocol I sets out the specific conditions for association to Erasmus+. In line with the legal basis of the programme 8 , these conditions include the nomination of a National Authority, the establishment of a National Agency, and the designation of an Independent Audit Body. Switzerland’s participation in the programme is conditional upon the positive ex-ante assessment of its National Agency and the payment of a financial contribution. By derogation to the financial conditions under this Agreement, and limited to the Multiannual Financial Framework 2021-2027, Switzerland’s operational contribution will amount to 70% of the contribution key defined in the agreement.
As regards Digital Europe Programme 9 , Switzerland will be associated to almost all elements of the programme except Specific objective 3 on Cybersecurity and Specific Objective 6 on Semiconductors where no third country can be associated (apart from EEA EFTA States). Thus, Switzerland will be associated to Specific Objectives SO1 (High Performance Computing), SO2 (Artificial Intelligence), SO4 (Advanced Digital Skills) and SO5 (Deployment and Best Use of Digital Capacities and Interoperability). Swiss entities will be able to participate in the calls for which they are eligible for.
Certain actions under the Digital Europe Programme, specifically those falling under Specific Objective 1 (High Performance Computing) and Specific Objective 2 (Artificial Intelligence), have direct implications on the essential security interests of the Union and its Member States. Consequently, these actions have been restricted under Article 12(6) of the Digital Europe Programme Regulation, with the Work Programme 2025-2027 outlining specific terms and conditions for participation.
To this end, a questionnaire was sent to the relevant Swiss authorities on 13 January 2025, which they will need to complete. The Commission will evaluate the Swiss responses to determine whether entities established in Switzerland can be included in the scope of eligibility for the concerned actions. This questionnaire is largely identical to the one submitted to Switzerland in terms of the assessment under Article 22 (5) of Regulation (EU) 2021/695 in December 2024, with the primary difference being the reciprocity criterion's focus on the Digital Europe Programme and additional sectoral considerations in the foreign direct investment part.
Protocol II covers the participation of Switzerland in the European Joint Undertaking for ITER and the Development of Fusion for Energy. Since this matter falls under the Euratom Treaty it is covered by the Recommendation for a Council Decision approving the conclusion, by the European Commission, of the Agreement as regards matters falling under the Euratom Treaty, that is submitted together with this proposal under a separate procedure.
Protocol III on the participation of Switzerland in the EU4Health Programme stipulates that Switzerland can participate as an associated country in and contribute to specific parts of the EU4Health Programme established by Regulation (EU) 2021/522. The specific parts relate to crisis preparedness as covered by the Agreement between the European Union and the Swiss Confederation on Health. According to Protocol III Switzerland will participate in the EU4Health Programme from 1 January of the year following the entry into force of the Agreement between the European Union and the Swiss Confederation on Health, for the remaining duration of the EU4Health Programme or until the end of the Multiannual Financial Framework 2021-2027, whichever is shorter.
The text of the Agreement is submitted to the Council together with the proposal for a decision on the signing and provisional application.
In accordance with the Treaties, it is for the Commission to ensure the signing of the Agreement, subject to its conclusion at a later date.
- 1.of the Agreement, reviews and audits may be carried out also after the suspension of application of a Protocol, cessation of application or termination of the Agreement