EU approves cross-border worker reform, potentially costing Switzerland millions

The European Parliament has approved a significant reform concerning cross-border unemployment benefits, a move that could impose substantial financial burdens on Switzerland. The new legislation, passed with a strong majority, mandates that unemployed cross-border workers will now be compensated by the country where they last held employment, rather than their country of residence.

This shift in responsibility is projected to cost Switzerland hundreds of millions of francs annually. The reform also introduces updated provisions for long-term care and family benefits, aiming to create clearer, more easily enforceable, and simpler regulations for both European workers and businesses. Gabriele Bischoff, the rapporteur for the legislation, emphasized the goal of streamlining these processes.

The decision comes amid ongoing discussions about the implications of EU regulations on non-EU countries like Switzerland, particularly concerning labor mobility and social security. The reform's passage highlights the EU's efforts to harmonize social security systems within the bloc, while potentially creating new financial challenges for neighboring countries.

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These rules will be clearer, easier to enforce, and simpler, both for workers and European companies.