Switzerland Faces EU Pressure as Clock Ticks on Exchange Access
Switzerland Faces EU Pressure as Clock Ticks on Exchange Access
(Bloomberg) -- With less than three weeks before Swiss stock exchanges are set to lose access to investors in the European Union, the bloc is keeping the pressure on.
The country’s equity market is at risk of being cut off at the end of the month after Brussels made any regulatory extension for the bourse contingent on progress on a political accord governing Switzerland’s relations with the bloc. On Friday, the Swiss government said while it is “broadly positive” on the accord, it wants clarification on matters relating to wage protection, state subsidies and immigration before ratifying it.
Now, European Commission President Jean-Claude Juncker is urging that the clarifications be finalized in the coming days if the EU’s executive arm is to discuss Swiss relations at its June 18 meeting.
“I want to see this as a positive message which would allow us to sign this fundamental agreement together at the earliest possible moment,” Juncker said in his letter to the Swiss government.
He said he’s ready to remove any lingering doubts about the accord, which was finalized in November but hasn’t been signed by Switzerland, reiterating, however, that the agreement won’t be renegotiated, despite the discussions over open questions.
The framework pact is meant to replace the 120 bilateral accords now governing relations between the two. The proposed deal hasn’t been popular with the Swiss, in part because of fears it’ll erode high local wages. It has been opposed both by the euro-skeptic political right and labor unions on the left. A recent poll showed two thirds of voters thought the government shouldn’t sign the accord.
Switzerland’s stock market access, currently granted under MiFID II rules, is set to expire at the end of June unless the EU decides on an extension.
To contact the reporter on this story: Alexander Weber in Brussels at aweber45@bloomberg.net
To contact the editors responsible for this story: Nikos Chrysoloras at nchrysoloras@bloomberg.net, Vidya Root, Catherine Bosley
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