Swiss Council of States votes to require cantonal majority for EU treaty package

Mandatory cantonal majority approved

The Swiss Council of States concluded three days of debate on Wednesday by voting to require a double majority of both the popular vote and the cantons for the upcoming Bilaterals III treaty package with the European Union. In a 23 to 17 vote with three abstentions, the small chamber rejected the Federal Council's proposal for an optional referendum, which would have required only a simple popular majority of 50 percent plus one vote. Instead, the chamber backed a sui generis mandatory referendum without an immediate constitutional amendment, while also approving a separate proposal from its Political Institutions Committee to anchor the double majority through a constitutional revision.

Requiring a cantonal majority introduces a higher threshold for passing the agreements. Calculations from political science models indicate that a nationwide proposal facing a cantonal vote typically requires approximately 55 percent popular approval to offset the opposition of smaller rural cantons, which hold equal cantonal voting weight. Lawmakers noted previous instances where double majorities were applied to foreign pacts, specifically the 1972 Free Trade Agreement with the European Economic Community and the 1992 European Economic Area agreement, which voters rejected. The Federal Office of Justice determined that the constitution mandates a cantonal majority only for accession to supranational organisations, but the Council of States chose to apply the standard to this package.

Higher cohesion payments from 2030

Alongside the referendum mechanism, the Council of States approved legislation and commitment credits increasing Switzerland's financial contributions toward reducing economic and social disparities within the EU. Beginning in 2030, Swiss cohesion payments will rise to approximately 350 million Swiss francs annually, compared to roughly 130 million francs under current voluntary arrangements. The chamber also approved transitional financing of 130 million francs per year until the full treaty package takes effect.

Under the approved framework, funds will not flow directly into the EU general budget. Switzerland will negotiate seven-year frameworks with Brussels, and the State Secretariat for Economic Affairs will take sole responsibility for implementation, directing funding to specific bilateral projects such as vocational training and migration management at the EU's external borders. Foreign Minister Ignazio Cassis stated that economic development in weaker EU states directly benefits Switzerland by reinforcing regional stability, noting that European Economic Area members pay 440 million francs annually, with 97 percent coming from Norway. St. Gallen Councillor Esther Friedli opposed the binding transfers on behalf of the Swiss People's Party, arguing that non-member taxpayers should not fund EU cohesion.

Immigration fees and labour protections

The chamber added specific protective measures to the negotiating mandate, including a targeted immigration levy on Swiss employers. Under this provision, companies will pay a fee of at least 4,000 francs per year for each worker recruited abroad, applying to both EU citizens and third-country nationals whenever the Federal Council invokes a safeguard clause to curb immigration.

On labour market regulations, the Council of States passed a compromise measure on wage protection by 26 votes to 19. The provision establishes modified dismissal protections for specific employee representatives, implementing a compromise reached between domestic social partners following Swiss concessions on wage rules during negotiations with Brussels. The complete package of proposals now moves to the National Council for further debate.