Bid to smooth relations ahead of Swiss vote

Date: 01/03/01

By Warren Giles in Geneva

THE EU is trying minimise the political damage after External Relations Commissioner Chris Patten's recent threat that bilateral accords with Switzerland are at risk unless the country improves its efforts to fight cross-border fraud.

The tension comes as Swiss citizens prepare to vote this Sunday (4 March) on whether their government should begin talks on joining the EU.

Relations between the Union and Switzerland survived an icy phase last week after Bern issued a stern response to Patten's comments.

The Commissioner had written Swiss Foreign Minister Joseph Deiss, saying any slowdown in the pace of talks on fraud and savings-tax issues would lead to difficulties with member states' ratifying the bilateral accords and "could result in bad implications for our cooperation in other areas".

After some conciliatory words from farm Commissioner Franz Fischler during his visit to Switzerland last week, an anticipated letter from the Swedish presidency is being interpreted in Bern as tantamount to an apology for Patten's comments.

The attempt to link the bilaterals and the Commission's goals was described by a senior Swiss official as "extremely clumsy". Six member states have already ratified the deals, and the others are expected to do so in the next few months.

Guido Schommer, secretary-general of Switzerland's majority Radical Free Democatic Party (FDP), said: "The effect of political pressure [on Swiss voters] should not be underestimated." He appealed for understanding from the Commission and member states on the importance of Swiss direct democracy. "Otherwise, we end up with effects that are counter-productive to our common goal of joining the EU," he added.

Even the staunchly pro-EU Economics Minister Pascal Couchepin suggested that attitudes such as Patten's would not help the casuse of those who wanted Switzerland to join the Union.

The Swiss want closer cooperation on asylum policy and policing borders in return for addressing fraud, taxes and banking secrecy. They defend banking secrecy by arguing that their 35% withholding tax is sufficient.

Voters and government alike also reacted with fury last week to a report by the French parliament slamming Swiss efforts to combat money laundering. That reaction has been underlined in pre-referendum surveys which show support for joining the Union is fast falling below 45% in even the traditionally pro-EU French-speaking region and 32% nationally.

Mindful that a raft of domestic reforms are needed before membership, the government is advising against a yes vote on Sunday but knows that last week's controversy hurts its longer-term accession plans.

"Our [political] structure is an upside-down pyramid, completely the opposite of France or Germany," said a Swiss official engaged in EU negotiations. "And at the summit, the people are sovereign."

Negotiators are scheduled to assemble in Brussels next Thursday (8 March) to discuss a framework for further talks on its 'left-over' issues with the Union.

The EU is trying to minimise the political damage after External Relations Commissioner Chris Patten's recent threat that bilateral accords with Switzerland are at risk unless the country improves its efforts to fight cross-border fraud.