Swiss government advances draft law to deepen EU economic ties

Zurich_ The Swiss Federal Council on Friday adopted a draft law aimed at strengthening economic ties between Switzerland and the European Union, sending the package of measures to parliament as Bern seeks to stabilise relations with its largest trading partner.

If approved by lawmakers, the legislation is expected to face a national referendum, where nationalist groups have signalled opposition, arguing that deeper integration with the EU could undermine Swiss sovereignty.

The Federal Council said the proposed framework was designed to safeguard Switzerland’s economic interests and ensure continuity in its relationship with the EU.”

“In view of the tense geopolitical situation, stable and reliable relations with neighbouring European countries are of strategic importance,” the council said in a statement.

The government added that strengthening institutional cooperation with the bloc would provide greater certainty for Switzerland’s export-driven economy.

The legislative package builds on an agreement initially reached between Switzerland and the European Union in December 2024.

According to the Federal Council, the framework would help create predictable conditions for trade and economic cooperation while supporting long-term prosperity in the Alpine country.

Under Switzerland’s system of direct democracy, major legislative changes can be challenged through a nationwide referendum.

Political observers say the proposed measures are likely to face strong scrutiny from nationalist groups that oppose closer institutional ties with the European Union, setting the stage for a potentially contentious public vote.