Swiss government rejects Compass Initiative seeking to block EU bilateral treaty overhaul

Government rejects Compass Initiative without counter-proposal

The Swiss Federal Council on Thursday recommended that parliament reject the "Kompass-Initiative" (Compass Initiative), a popular measure backed by billionaire entrepreneurs that seeks to require a double majority of voters and cantons for international treaties involving dynamic alignment with foreign law. The government declined to put forward a counter-proposal. Justice Minister Beat Jans told a press conference that the initiative's provisions are so vaguely formulated they would create considerable legal uncertainty.

Instead of clarity, it creates more uncertainty and problems.

The initiative, formally titled "For a directly democratic and competitive Switzerland, no passive EU membership," was launched in 2024 and submitted to the Federal Chancellery with over 140,000 signatures. It is backed by Partners Group co-founders Alfred Gantner, Marcel Erni and Urs Wietlisbach, who have built a movement called "Kompass Europa" opposing a framework agreement with the EU. The initiative's backers argue the new EU treaty package would make Switzerland a passive EU member and undermine direct democratic participation rights.

Dispute over referendum type

At the heart of the dispute is whether the new EU-Swiss treaty package, agreed in December 2024 and currently debated in parliament, should be subject to an optional referendum (requiring a simple majority of voters) or a mandatory referendum (requiring both a popular majority and a majority of Switzerland's 26 cantons). The Federal Council favours the optional referendum, consistent with the practice used for Bilateral Agreements I and II, which it called the most appropriate solution from a democratic perspective. The government noted that the current system has proven itself and that a majority of cantons and parties have favoured the optional referendum approach.

The government also argued that an exceptional mandatory referendum can be justified when an agreement profoundly modifies the structure of Swiss institutions or brings a fundamental change in foreign policy, but said this does not apply to the EU treaty package.

Transitional provision under fire

The Compass Initiative's transitional provision is particularly controversial. It stipulates that if the EU package is approved without a cantonal majority and the initiative subsequently passes, the earlier vote would be invalid. Michael Schöll, Director of the Federal Office of Justice, described this scenario at the press conference as a political limbo.

a political limbo, because it is not clear what should happen with the constitutional mandate

Jans warned this would endanger legal certainty and signal uncertainty abroad, threatening Switzerland's credibility in foreign policy and its economic standing. For treaties already in force, such as Bilateral Agreements I and II, an acquired-rights guarantee applies. For Bilateral Agreements III, this guarantee would only apply if they were adopted by both people and cantons before a yes to the Compass Initiative.

Higher hurdle and next steps

Securing approval for the EU package would become significantly harder under a mandatory referendum requiring a cantonal majority, since smaller, more conservative cantons tend to vote against European integration. According to political experts cited in the articles, a popular majority of approximately 55% would be needed to secure a cantonal majority.

The government objected to linking a fundamental question about extending the mandatory referendum to the specific case of the Bilateral Agreements III, calling the mandatory state treaty referendum a pillar of Swiss democracy that should not be altered for short-term political considerations without an in-depth debate. On Wednesday, the Federal Council had already expressed opposition to a separate commission proposal also calling for a double majority vote.

The initiative will go to a referendum after the signature-gathering process is complete, though no date has been set. It may not be voted on until after the referendum on the EU treaty package itself, which could come in 2027 at the earliest.