EU relations with Switzerland : a 'special case'

Abstract

"We might not be at the very centre of Europe, but we're certainly at the heart of Europe ... We're beginning a new era of relations between are two entities." (Joseph Deiss, Swiss Federal Council) A land locked Alpine country in Central Europe known for its diverse culture and strong economy in finance and banking, the Swiss Federation is unlike any other European state. It has one of the highest GDP's per capita in Europe and its banks are world-renowned for their stability, privacy and protection of clients, making it one of the wealthiest countries in Europe. Switzerland is also known for its affinity towards neutrality and direct democracy. Its refusal to become a member of the EU, however, is the most distinguishing factor that sets it apart from the rest of Europe. Throughout the past six decades, ever since the start of European integration, Switzerland is the only European country that has refused to part with any of its sovereignty. The dissertation will start off by examining Switzerland's determination to maintain its neutral status, from the founding of the European Coal and Steel Community in 1952, until its evolution into the European Union forty years later. The foreign policy conducted bilaterally between Switzerland and the EU whereby several sectoral political, economic, and cultural agreements were negotiated will subsequently be viewed in the second chapter. The final chapter will then assess the costs and benefits of this chosen path, showing that membership within the EU is currently not desired by most levels of the Swiss political system, including many of the citizens. It is however a long term foreign policy goal for the federal government.