EU and Switzerland Sign ‘Bilaterals III’ Accord to Enhance Free Movement and Trade

ELECTRICITY AND MOBILITY This morning, the EU and Switzerland signed crucial accords enhancing mobility and electricity trading.Legal certainty for employers and commuters improves significantly. ...

Dania Hirch

2 min read
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EU and Switzerland Sign ‘Bilaterals III’ Accord to Enhance Free Movement and Trade

In Brussels, the European Commission President Ursula von der Leyen and Swiss Confederation President Guy Parmelin put their signatures to the long-awaited “Bilaterals III” accords.

The package updates the 1999 free-movement agreement, four existing internal-market treaties (land and air transport, mutual recognition of standards, and free movement of persons) and adds entirely new chapters on electricity trading, food safety, cross-border health security and Switzerland’s participation in EU space and research programmes.

Today’s EU Main Headlines - Europe Edition - WTX News Briefing
Today’s EU Main Headlines – Europe Edition – WTX News Briefing

For globally mobile employers the biggest headline is legal certainty. Companies will again be able to post staff across the EU–Swiss border without the patchwork of cantonal exemptions that emerged after talks collapsed in 2021. Under the new rules work permits for intra-company transferees and service providers can be processed online in as little as five working days, while quotas for short-term assignments (up to 90 days) are scrapped altogether.

A joint committee will monitor labour-market safeguards, but Brussels dropped its earlier insistence on automatic dynamic alignment—meaning Bern can still run its own labour inspections before issuing a residence permit.

The Swiss managed to negotiate a lot in return

The agreement also tackles a pain-point for cross-border commuters known as Frontaliers. From 2027 a single digital social-security certificate will replace the paper A1 form, easing payroll compliance for employers with staff who live in France, Germany or Italy but work in Switzerland.

The electricity chapter, meanwhile, allows Swiss utilities to bid into the EU internal market, reducing the risk of winter supply shortages that have prompted emergency plans in recent years.

This means, foreign energy and US food companies registering in Switzerland can now enter the EU energy market. A move that may be obvious, but this is an opportunity for Russian and Persian energy companies.

Which could be a blessing in disguise for EU citizens who are in line to suffer from a major energy shortage in 2026. 

Switzerland and EU Sign “Bilaterals III” Package, Modernising Free-Movement Rules

The reforms will make mobility easier, but the evolving visa and permit landscape can still be daunting. VisaHQ’s in Switzerland can guide companies and travellers through the online work-permit filings, social-security certificates and any remaining cantonal formalities, consolidating everything in one portal so HR departments stay compliant from day one of Bilateral’s III.

Ratification is not a formality

The Swiss Federal Council will present the deals to Parliament this month; both chambers must approve them and opponents can still force a referendum. EU consent is required in the European Parliament. Even so, the signature ends five years of institutional limbo and is widely seen by business chambers as a breakthrough that restores Switzerland’s reputation for predictability.

Multinational HR teams should start mapping current assignment policies against the new timelines. Transitional measures mean most mobility-related provisions will enter into force in mid-2027, but early alignment on posted-worker notifications and health-insurance coordination begins as soon as the accords receive provisional application—likely in early 2027 depending on referendum risk.

WRITTEN BY

Dania Hirch

Dania Hirch is the European News Editor for EU News, WTX News and newsbriefing.com based in Brussels. Specialising in European news stories and cutting through the bias and providing analysis on how Europeans policies are impacting each member nation state on an individual basis.Read more

Responses

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