Italian cross-border worker solution ‘in Switzerland’s interests’

Implementing agreements on cross-border workers is in Switzerland’s interests Keystone-SDA

Swiss finance minister Karin Keller-Sutter is adamant that a revised cross-border worker deal must be struck with Italy.

Keller-Sutter met Italian finance minister, Giancarlo Giorgetti, in Rome on Tuesday.

The meeting took place immediately after the Ticino cantonal council’s decision to suspend, as a precautionary measure, the payment of rebates to Lombardy for the current year. Keller-Sutter acknowledged the decision puts a strain on the current cross-border worker agreement.

The meeting focused broadly on international financial and tax issues, as well as bilateral relations. For Switzerland, the revision of the 1976 Double Taxation Convention remains of fundamental importance.

“We believe that a revision is in the interests of both states. At the same time, we are aware that other issues must first be resolved,” Keller-Sutter said.

However, it is precisely in cross-border cooperation and bilateral relations concerning cross-border workers that there are “major challenges”.

The authorities on both sides intend to work closely with the regions concerned, explained Keller-Sutter.

She also discussed with Giorgetti the decision taken unanimously today by the Ticino government to provisionally suspend the payment of rebates for the current year to Lombardy. The measure was triggered after the northern Italian region announced its intention to introduce a so-called ‘health tax’ in future for cross-border workers employed in Switzerland.

“We have taken note of the decision by the canton of Ticino to partially withhold the compensation payments due under the 2020 cross-border workers’ agreement. This move obviously puts the existing agreement with Italy under severe strain,” said Keller-Sutter.

The government minister and Giorgetti agree on the need to seek a solution through dialogue. “We would like to invite the regions concerned to direct talks,” said Keller-Sutter.

The Italian finance minister has proposed bringing representatives from Lombardy and Ticino together around the table to discuss the issue of rebates.

“The healthcare contribution is not yet being levied. What is causing discontent in Ticino is the possibility that it might be applied retroactively,” she added.

The Swiss government regrets the move by Ticino. “It is in Switzerland’s interest that the agreement on cross-border workers is applied correctly,” reiterated Keller-Sutter.

At the same time, the minister believes that solutions must be found in this area. “We are aware that there are specific issues and interests in border areas. We support the canton of Ticino, but at the same time we want to find a way forward.”

Translated from Italian, sub-edited by mga