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What are the ‘cohesion payments’ Switzerland pays to the EU?

Switzerland has just paid the European Union another 1.1 billion francs as part of the so-called "cohesion payment". But what's the money for and where does it go?

Published: 1 September 2022 17:14 CEST
This photograph taken on April 23, 2021 shows Switzerland's national flag (L) and te European Union flag at the European Commission building in Brussels. (Photo by François WALSCHAERTS / POOL / AFP)
This photograph taken on April 23, 2021 shows Switzerland's national flag (L) and te European Union flag at the European Commission building in Brussels. (Photo by François WALSCHAERTS / POOL / AFP)

Switzerland confirmed on Wednesday that it was handing over 1.1 billion francs to eight EU states as part of the latest “cohesion payment”.

The eight states set to benefit from the money are: Bulgaria, Croatia, Cyprus, Estonia, Hungary, Malta, Romania and Poland.

What’s the money for?

Essentially the payment will fund a range of projects in those countries until 2029.

“Funds will be used in the selected EU states for specific programmes and projects which must also be co-financed by the partner country. In addition, partner countries can choose programmes and projects from a range of thematic areas selected by Switzerland in line with their own national strategies,” according to a press release by the Swiss government.

“The cohesion framework credit will be used to support a total of 13 EU member states. The remaining five implementation agreements are currently being negotiated,” the government said.

READ ALSO: How immigration benefits Switzerland

These projects can include research, health, vocational training, integration, security, the inclusion of minorities, citizen engagement, biodiversity, environmental and climate protection, urban planning, support for small companies and tourism.

All programmes and projects must be completed by 2029.

Why does Switzerland pay the EU ‘cohesion payments’?

The payment towards the EU’s so-called Cohesion Fund is part of the price Switzerland is required to pay for access to the all-important EU single market.

Switzerland is not a member of the European Union, but it is a member of EFTA, the European Free Trade Area, together with Iceland, Liechtenstein, and Norway. It has several free trade agreements with the EU members and these cohesion payments are seen as an “entry fee” to enter the bloc’s single market.

READ ALSO: ANALYSIS: How likely is it that Switzerland will join EU in the next decade?

Besides participating in the European Single Market, the EFTA members are also part of the Schengen Area – but they are not subject to the EU Customs Union or many of the bloc’s regulatory and political rules.

The payments are part of the bilateral package of agreements from 1999 between the EU and Switzerland, allowing for all that brings both the bloc and the country closer.

Of course, Swiss authorities also mention other reasons for the payments. “Like the other EEA/EFTA states, Switzerland is helping to reduce economic and social disparities in the EU so as to contribute to European stability as a whole.”

A complicated background

Relations between Bern and Brussels haven’t always been easy and the Cohesion Fund payments have been on the line before.

BACKGROUND: Swiss MPs agree to pay €1 billion for EU Cohesion Fund

In 2019, as Switzerland and the European Union faced a crisis in relations over a framework agreement to streamline relations, Swiss politicians have argued extensively about whether or not to honour the payment.

Finally, they voted to release the funding on the condition that the EU “did not take discriminatory measures against Switzerland”. In 2021, the Parliament released the 1.1 billion second payment, which was approved this Wednesday by the Federal Council.

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TRAVEL NEWS

EES: Could the launch of Europe’s new border system be delayed again?

After being postponed several times already Europe's new biometric Entry/Exit border system (EES) is set to be rolled out in October, but with fears of lengthy queues, problems with a new app and demands for more time, could it be postponed again?

Published: 26 April 2024 11:50 CEST
EES: Could the launch of Europe's new border system be delayed again?

Could the entry into operation of the EU entry/exit system (EES), the new biometric passport checks for non-EU citizens at the Schengen area’s external borders, be delayed yet again?

Originally planned for May 2022, EES has already been postponed many times.

The current launch date, set for October 2024, was chosen to avoid periods of peak traffic and France in particular had requested to avoid it being launched until after the Paris Olympics this summer.

When asked to confirm the October start date this week a spokesperson for the EU’s Commission told The Local that the “roadmap” for the EES IT system foresees it will be ready for Autumn 2024. But the actual start date, in other words, the day when passengers will have to register, would be confirmed nearer the time.

The spokesperson said: “The exact date will be determined by the European Commission and announced on the EES official website well in time for the start of operations.”

READ ALSO: Your key questions answered about Europe’s new EES passport checks

But the reasons are adding up to suggest an October start date is optimistic, perhaps even unlikely.

In the annual report on the ‘State of Schengen’ published last week, the European Commission spelt out that severe challenges remain if member states are to be ready on time.

“In 2023, efforts to ensure the entry into operation of the Entry-Exit System in the autumn of 2024 were accelerated… While important progress has been made across the Schengen area, some Member States are still falling behind, notably regarding the effective equipment of border crossing points. The Commission calls on all Member States to urgently accelerate preparations to ensure the timely implementation of the system…”

A map in the report shows that preparation is still “in progress” in 13 Schengen area countries, including Germany, Norway and Switzerland. “Outstanding issues” still impact Portugal, Malta and Bulgaria.

The state of play for the preparations for EES across EU and Schengen states. Image: European Commission.

There are also reports that EU heavyweight Germany is trying to persuade Brussels to delay.

Matthias Monroy, editor of the German civil rights journal Bürgerrechte & Polizei/CILIP claimed on his website that “the German government is lobbying in Brussels to postpone the date once again, as otherwise the German tests of the EES cannot be completed in full. Other EU countries are also behind schedule, with only eight of them having reported successful integration.”

Even on a French government website it talks of EES being rolled out some time “between the end of 2024 and 2025” rather than stating October 2024.

And according to recent media reports, French airports have been advised to be ready for November 6th, rather than October. 

READ ALSO: EES and Etias – what are the big upcoming travel changes in Europe?

A planned EU app, believed to be essential to the smooth operation of EES because it would allow non-EU visitors to register in advance of travel will not be ready, Gwendoline Cazenave, Managing Director of Eurostar International, the company operating train services via the Channel Tunnel, has told the BBC. The EU however insists the app does not need to be up and running before EES is introduced.

In the UK, which will be heavily impacted by EES due to the fact it is no longer in the EU and so British travellers are no longer EU citizens, the House of Commons European scrutiny committee is conducting an inquiry on the potential disruption the introduction of the EES will cause at the border.

Several respondents have recently raised the alarm about the possible delays the system could cause, especially at the UK-France border, which is used by millions of passengers each year who head to France and other countries across Europe.

Ashford Borough Council in Kent has warned of the possibility of more than 14 hours queues to reach the Port of Dover, which has already been struggling increased checked after Brexit.

The BBC reported that back in March, a P&O Ferries director said the IT system should be delayed again.

Airlines have also complained about the fact pre-travel EES requirements would make last minute bookings impossible.

The Union des Aéroports Français (UAF), which represents airports in France, has simply said more time is needed.

In other words, it would be little surprise if the roll out was delayed again beyond October 2024.

But the Commission spokesperson told The Local that “the timeline for the entry into operation of the EES took into account all the necessary activities to be performed by all relevant stakeholders to ensure a timely entry into operation. 

“The Commission is working very closely with eu-Lisa [the EU agency in charge of the IT system], the Member States and carriers to ensure that everything is ready for the timely and successful launch of the Entry Exit System.

“The roadmap for the delivery of the new IT architecture foresees that the Entry/Exit system will be ready to enter into operation in Autumn 2024.”

New digital border

The EES is a digital system to register travellers from non-EU countries when they cross a border in or out of the Schengen area, the travel-free area. It will be deployed in 29 countries across Europe including 25 EU states plus Norway, Switzerland, Iceland and Liechtenstein. Ireland and Cyprus are the only EU members who won’t apply the EES system.

It doesn’t apply to non-EU nationals who are legally resident in an EU/Schengen area country or those with dual nationality of an EU /Schengen county. The system was designed to increase security and to ensure that non-EU nationals visiting the Schengen area short-term do not stay more than 90 days in any 180-day period.

Instead of having the passport stamped, travellers will have to scan it at self-service kiosks before crossing the border. However, fingerprints and a photo will have to be registered in front of a guard at the first crossing and there are huge concerns the extra time needed could generate long queues in the UK, where there are juxtaposed border checks with the EU.

Preparations are ongoing throughout Europe and some countries have made good progress.

In France, Getlink, the operator of the Channel Tunnel, has recently reported that new EES infrastructure is finished at its French terminal of Coquelles, which will allow travellers to register their biometric data while travelling.

Eurostar is also installing 49 kiosks in stations for the registration of passengers. But the Union des Aéroports Français (UAF), which represents airports in France, said more time is needed.

Exempted

Meanwhile, the Polish government has urged UK citizens who are beneficiaries of the EU-UK Withdrawal Agreement to get a residence permit “in the context of EES/ETIAS”, even though there was not such an obligation to stay legally in Poland post-Brexit.

“Having such a document is beneficial as it will exempt from future Entry/Exit System (EES) registration when crossing external borders and from the need to obtain an ETIAS travel permit in relation to short-term travel to EU/Schengen countries,” the government page says.

This article as published in collaboration with Europe Street news.

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