Two Swiss parties face dilemma on agreements with EU

Searching for the right position: the new Radical-Liberal Party leadership presents itself to the media. Keystone / Gian Ehrenzeller

The Centre Party and the Radical-Liberal Party are struggling to define their stance on new agreements between Switzerland and the European Union. Much is at stake for both, including their influence. The debate offers significant potential for them to make political gains, our analysis shows.

It is the middle of the legislative term. Since June, the draft of the new EU agreements has been on the table. This marks a pivotal moment for Switzerland’s European policy. The consultation process runs until the end of October. All interest groups, including the political parties, are now positioning themselves.

For parties that have long had a clear stance on the issue, it’s straightforward. The right-wing Swiss People’s Party is staunchly opposed to the deals; the left-wing Greens and the centrist Liberal Greens are clearly supportive.

Clearly positioned: The Swiss People’s Party at a campaign against the EU treaties. A participant wears a mask of Foreign Minister Ignazio Cassis. Keystone / Alessandro Della Valle

For the left-wing Social Democratic Party, the situation is more nuanced. Influential trade unions, initially sceptical over wage protection, are now broadly onboard. This places the party firmly in the camp of supporters of the EU agreements. Yet, among the party base, concerns over wage dumping may still resonate. In internal discussions, the party is still in the process of firming up its messaging.

A challenge for centre-right parties

Positioning is proving particularly difficult for two parties caught between camps in the so-called “Bilateral III” talks: the centre-right Radical-Liberals, who champion free markets, and the Centre Party, which represents conservative values. This is a problem for both parties – especially as the EU agreements are likely to become a key issue in the next federal elections (in 2027). Voter preferences may well be shaped by this debate.

One thing is clear: these parties must take a position on the matter. Sitting on the fence is not an option. “The issue is too important to be left unresolved,” says Sean Müller, a professor of political science at the University of Lausanne.

Why the EU treaties are important for the Swiss Abroad

The further development of bilateral relations between Switzerland and the EU is important for the Swiss Abroad. They affect the more than 460,000 Swiss Abroad who live in an EU country. The bilateral agreements secure key rights such as the free movement of people, facilitate their access to social insurance and guarantee the recognition of diplomas.

But when a party’s own voter base is divided on such a crucial topic and with the federal elections looming, the question presents a dilemma. Taking a clear position risks alienating parts of the electorate who have different opinions. On the other hand, keeping their position as open as possible would risk driving voters towards parties with a definite stance.

Caught between these two unappealing options, the Radical-Liberals and Centre Party are now searching for the best way forward.

How Radical-Liberals are handling the EU question

So far, the Radical-Liberals have stuck to the line of “Let’s study the agreements first, then decide.” The party’s last position paperExternal link on the EU dates back to 2022, when talks between Bern and Brussels were ongoing. Since last year, an internal working group has been reviewing the matter. Notably, the group is evenly split, with six supporters and six opponents of the new agreements – a setup widely seen as symbolic of the party’s internal divisions.

Now is the time for setting a course. In October, the party will appoint a new leadership board. Two co-leaders have been named. One, parliamentarian Susanne Vincenz-Stauffacher, is considered a supporter of the new agreements with the EU. The other, Senator Benjamin Mühlemann, says: “I am still undecided.”

This statement sums up the party’s current position perfectly: somewhere between yes and no. “The leadership duo must quickly find a way to show the party base in which direction they are heading,” says political analyst Cloé Jans.

The Neue Zürcher Zeitung (NZZ) recently wrote that the Radical-Liberals are “looking for a common position that’s sharp enough to be understood – but vague enough not to split the party further”.

Strong voices on both sides

There are good reasons behind this hesitation. The business community, which the Radical-Liberals traditionally represent, is also divided. Export-oriented sectors view frictionless access to the EU single market as vital for the economy, while players in finance and services often highlight broader political considerations.

Each side is represented by influential groups with a public voice: economiesuisse, the umbrella organisation for the business sector, supports the agreements; the movement Kompass-Europa Alliance, meanwhile, opposes them.

Müller sees an opportunity in this challenge. The EU debate, he argues, offers the Radical-Liberals a chance to position the party as the “true pragmatic defender of the Swiss economy”. He adds: “If the party can also show social awareness, promote equality, and maintain leadership on security issues, then I see significant untapped potential in the Radical-Liberals.” He views the new leaders as capable of credibly representing this position.

Even US President Donald Trump’s tariff policies could sway Radical-Liberal delegates. His 39% duties on Swiss imports have made the EU a more attractive market by comparison.

How the Centre Party is handling EU agreements

The Centre Party has less to lose – and perhaps more to gain. With some luck and political savvy, it could even capture a second seat on the seven-member executive Federal Council in 2027, potentially at the expense of the Radical-Liberals. With just 0.2 percentage points separating the two parties in the 2023 elections (14.3% for the Radical-Liberals, 14.1% for the Centre Party), the race is wide open.

Within the Centre Party, a pro-EU agreement faction exists, prominently represented by parliamentarian Elisabeth Schneider-Schneiter. As a voice for Basel’s economy and a board member of economiesuisse, she is a clear supporter. But rural and agriculture-aligned wings of the party remain sceptical, particularly the influential circle around the Farmers’ Union president, Markus Ritter.

Entering campaign mode

Ahead of the second half of the legislative term, the Centre Party has also elected new leadership – a clear sign that the party is shifting into campaign mode.

The party’s new president, Philipp Matthias Bregy, chose his words on Europe carefully during his inaugural speech. “The future of our economy depends on stable relations with the European Union,” he said, while listing conditions: clarity on wages, social security and institutional issues. A broad public debate is needed, he argued.

Wait and see: The new Centre Party president, Philipp Matthias Bregy. Keystone / Anthony Anex

In comments to the NZZ, Bregy clarified that the party would adopt a formal position only after discussing how the agreements would be implemented domestically. This may mean waiting until party leaders have a sense of how the Swiss electorate – or at least the party base – feels about the deals.

Despite its wait-and-see approach, the Centre Party may be uniquely suited to capitalise on the EU agreements. According to Müller, the European question is “much less polarising than is often assumed”. No one wants to cut ties with the EU, and no one is calling for full membership. Between one extreme and the other, there is room – and demand from voters – for nuance and differentiated positions, he says.

“The agreement package with the EU is a major compromise,” Müller says. “And who better to defend a compromise than parties from the political centre?”

Edited by Samuel Jaberg / Marc Leutenegger. Adapted from German by Catherine Hickley/gw