TAIPEI, Taiwan, November 28, 2018 (Newswire.com) - Switzerland has the fourth largest stock market in Europe and tensions between the country and the European Union member states are rising as an agreement facilitating the recognition of the Swiss stock market by the EU is due to expire next month.
Andrew Powell, Head of Corporate Equity at Radford Taylor Partners says the EU has made the official recognition of Switzerland’s stock market subject to strict conditions which include the progression of negotiations on a treaty that will govern future market relations between Switzerland and the EU.
The treaty would substitute the intricate string of bilateral agreements that currently dictate the running of market relations.
Complicating already intense negotiations is the issue of Brexit and disagreement over access to Switzerland’s labor market. The EU has been trying to pressure Switzerland into easing the laws that protect its high-paying Swiss jobs from foreign skilled labor competition.
After four years of negotiations, the Swiss government has announced that it will not accept a diktat from the EU that a treaty must be agreed to this year and has stated that a treaty will only happen in 2019.
The EU is keen to formalize an agreement covering five main areas of concern; free movement of people, transport and air transport, agriculture and mutual recognition on conformity assessment. However, while the main area of contention — the free movement of persons — remains a sticking point, Radford Taylor Partners analysts say Switzerland is in no rush to agree to any treaty without more careful deliberation.
Source: Radford Taylor Partners