Swiss minister laments ‘discriminatory’ stock exchange access to EU

A German steel worker in action. Swiss Economics Minister Johann Schneider-Ammann and European Union Trade Commissioner Cecilia Malmström also discussed the impact of US tariffs on imported steel and aluminium imports for Swiss and European exporters. Keystone

The European Union’s move last year to grant Swiss stock exchanges only limited access to the 28-nation bloc is ‘discriminatory’, Swiss Economics Minister Johann Schneider-Ammann has declared. Switzerland wants full access by the middle of this year. 

Schneider-Ammann was in Brussels on Monday for talks with European Union Trade Commissioner Cecilia Malmström on issues ranging from Swiss stock exchange access to the single market to US tariffs on steel and aluminium. 

Switzerland is not a member of the EU; economic and other relationships are governed by more than 120 bilateral deals agreed over decades. Brussels wants Switzerland to reorganise its EU relationships around an institutional framework agreement. To increase pressure, last year it put Switzerland on a watch list of tax havens and granted Swiss stock exchanges access to the single market for only one year, with any extension linked to agreeing a treaty. 

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In a statement released on MondayExternal link, the Swiss economics ministry said recognition of stock exchange equivalence was crucial so that European banks and investors retain access to Swiss stock exchanges and can continue to buy and sell Swiss and foreign securities listed in Switzerland. 

It added that Schneider-Ammann had stressed to Malmström that the time-limited recognition of equivalence constituted “discrimination against Switzerland compared to other EU partners”. 

“Switzerland wants unlimited recognition by the middle of this year,” the minister declared. 

The institutional framework issue has been dragging on for years and politicians and the seven-member Federal Council appear divided over European policy. As a conciliatory move towards normalising relations, in March the Council announced that it plans to renew its pledge of contributing CHF1.3 billion ($1.4 billion) to the EU’s cohesion fund. 

Trump’s tariffs 

During their meeting in Brussels, the two ministers also discussed the impact of US tariffs — of 25% on imported steel and 10% on aluminium imports — for Swiss and European exporters. Schneider-Ammann underlined Switzerland’s concern at the rise in protectionism in world trade, the Department of Economic Affairs said in its statement. 

Schneider-Ammann also updated Malmström on his meeting in Washington on April 20 with US Commerce Secretary Wilbur Ross to discuss this issue. 

Following an outcry over the US tariffs announced in March to protect US producers, President Donald Trump agreed to suspend their imposition until May 1 for Argentina, Australia, Brazil, South Korea, Canada, Mexico and the EU to allow discussions to continue. The EU announced in March that it was ready to retaliate against Trump’s tariffs with counter-measures against US products. 

Schneider-Ammann stressed that any such measures should not hinder trade with Switzerland. He said commitments arising from the free trade agreement between Switzerland and the EU must be respected.