Switzerland and the European Union have signed the “Switzerland–EU package (Bilateral Agreements III)”, opening a new phase in bilateral relations and triggering the parliamentary process in Bern.
The “Bilateral Agreements III” package modernises and complements existing bilateral agreements (free movement of persons, land and air transport, mutual recognition of technical standards, agriculture) and creates new sectoral frameworks, in particular for electricity, food safety, and crossborder health cooperation. Negotiations started on March 18, 2024, and were materially concluded at the end of 2024, then formally initialled in Bern in May 2025. The Federal Council approved the agreements and launched the consultation procedure on June 13, 2025. In total, 318 submissions were filed, with a clear majority of political, economic, and cantonal stakeholders supporting the Bilateral Agreements III package.
On 2 March 2026, the President of the Confederation and the President of the European Commission signed the remaining agreements, together with a joint declaration establishing a highlevel Switzerland–EU dialogue. With the EUPA agreement already signed in November 2025, Switzerland can again be associated, retroactively as of January 1, 2025, with the Horizon Europe, Euratom, and Digital Europe programmes.
Why it matters for Switzerland
The package is designed to stabilise Switzerland’s sectoral participation in the EU’s internal market – its main trading partner – and to develop cooperation in strategic areas such as energy, research and security of supply. It responds to a key condition set by the EU: the application of homogeneous rules for all participants in its internal market, including Switzerland in the sectors where it participates or seeks to participate. For businesses, the package is presented as a source of legal certainty and competitiveness in a context of geopolitical uncertainty, helping to avoid a gradual marginalisation on the European market.
Next institutional steps
In March 2026, the Federal Council transmitted its message on the Bilateral Agreements III package to Parliament, marking the start of the parliamentary phase. The final report on the consultation results will guide parliamentary deliberations and, where applicable, the preparation of a possible popular vote, depending on parliamentary decisions and any referendums that may be launched.
Big picture for mobility
The existing Agreement on the Free Movement of Persons (AFMP) is updated, not replaced; EU/EFTA nationals keep the possibility to live and work in Switzerland, under familiar permit categories (L, B, G), but with rules closer to EU Directive 2004/38/EC. Immigration under AFMP remains employment driven: the package explicitly states that free movement stays focused on economic activity, not on unconditional access to Swiss social benefits.
Key changes for EU/EFTA employees
- Dynamic alignment with parts of Directive 2004/38/EC: Switzerland will take over selected EU rules on residence rights, family reunification and loss of status, which should reduce grey areas in edge cases (e.g. jobseekers, economically inactive persons, students).
- Stricter conditions for nonemployed EU residents: EU citizens residing without a job will need sufficient resources and health insurance, and must show genuine job-seeking efforts to maintain residence rights, which reduces longterm “benefit tourism” risks.
- Family members keep derived rights, but Switzerland can use EU-style abuse/misuse rules (marriages of convenience, fraudulent declarations) more systematically, which may mean more documentation and checks in sensitive files.
Safeguard mechanisms and labour market protection
A safeguard clause gives Switzerland the option to temporarily restrict free movement if predefined thresholds are exceeded (net immigration, unemployment, social assistance), which can matter politically but is designed as an exceptional, time-limited tool. Labor market safeguards (e.g. “equal pay for equal work”, controls on posted workers, flanking measures) are preserved and embedded in the new institutional framework, meaning continued focus on compliance for assignments and contractors. Employers can expect some process simplifications (more online procedures, more harmonized practice) but also more monitoring by a joint Switzerland–EU committee on labor and social security issues.
This immigration update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Furthermore, it is important to note that immigration announcements are subject to sudden and unexpected changes. Readers are encouraged to reach out to Newland Chase for any case- or company-specific assessments.
