Deliberations on new EU treaties begin with saber-rattling

Switzerland's parliamentary debate on new bilateral treaties with the European Union has commenced with significant discord, particularly from the Council of States' economic committee. The committee has put forth two key decisions that could potentially derail the entire agreement: a demand for enhanced dismissal protection for trade union representatives and the insistence that all EU companies operating in Switzerland must post a deposit.

The proposal for improved dismissal protection is part of a compromise aimed at safeguarding domestic wages. However, a majority on the economic committee opposes granting concessions to unions on this matter, viewing it as unrelated to the core treaty negotiations. This stance reflects a broader concern within conservative circles about granting unions excessive influence, potentially leading to conditions similar to Germany's, where unions have a substantial impact on corporate affairs.

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The end result could be conditions like in Germany, where trade unionists have an oversized influence on the fortunes of companies.

However, elevating this issue to a deal-breaker is seen as problematic. The Swiss Trade Union Federation notes that only a small number of dismissals are currently pending under this measure, suggesting that jeopardizing employee support for the treaties over this specific point could be a misstep. The federation must carefully consider whether this side issue is worth alienating potential allies in the pro-European camp.

More contentious is the committee's decision to maintain a deposit requirement for all EU firms entering the Swiss market. This directly contradicts the negotiated outcome of the treaties and suggests a reluctance to fully embrace the agreed-upon terms. The fact that this demand, previously abandoned by unions, has been revived by centrist and liberal politicians further complicates the situation, revealing internal party divisions. The upcoming deliberations are expected to be a test of nerves for all involved.

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The Swiss Trade Union Federation states that currently a low single-digit number of dismissals are pending, which would fall under this measure in the future.