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Switzerland says it will honor 1.3-bln-USD cohesion payment to EU

Source: Xinhua| 2018-09-29 01:55:47|Editor: yan
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GENEVA, Sept. 28 (Xinhua) -- Switzerland said Friday it will hand over 1.3 billion Swiss francs (1.33 billion U.S. dollars) committed to improving living standards in less well-off European Union (EU) States.

It comes during what the Swiss media has described as an ongoing stand-off with the EU over bilateral relations.

"In order to sustainably preserve its prosperity, Switzerland is dependent on a secure, stable and prosperous Europe," the governing Swiss Federal Council said in a statement Friday.

"It, therefore, has a primary interest in continuing to work, with its expertise, to strengthen European cohesion and better management of migration flows," said the statement.

A second batch of what has been called "cohesion" payments came into doubt after the EU had restricted access of the Swiss stock exchange to the European market to one year.

But the Swiss government said Friday that, after a review of the situation, the funds will be released.

The Swiss funds will be spread over 10 years, primarily targeting vocational training and migration.

In addition, Switzerland said it wants to tighten asylum regulations with the EU to "help support programs to encourage persons residing illegally in EU partner countries to return to their home countries".

The Swiss government said it could "reconsider the situation" if the EU failed to live up to Swiss expectations during continued negotiations that will govern bilateral ties in future.

Switzerland is not a member of the EU, but it has negotiated a number of bilateral treaties with its largest trading partner.

Its current relationship can only continue if the two sides can agree to a new framework of conditions.

The sticking points include access to the Swiss labor market for EU workers, Swiss rules that prevent EU companies from undercutting local wage levels and continued access for Swiss financial industry players in Europe, Swissinfo, the website of the Swiss national broadcaster said.

"The Federal Council has repeatedly stressed the importance of good cooperation with the EU and affirmed its desire to consolidate bilateral relations," the government statement said.

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