Wallis - Swiss-EU relations: "exasperating, frustrating, but never dull!"

Diana Wallis MEP, President of the European Parlaiment's delegation to Switzerland, spoke in Thursday's debate in the Strasbourg plenary on EU relations with Switzerland saying that Swiss-EU relations were "exasperating, frustrating, but never dull". Read her full speech below:

"We wanted this debate to be about the whole of our relations with Switzerland to celebrate Swiss success in three successive referendums on EU issues. Referendums that would scarcely have passed in many of our Member States. The Swiss are informed Europeans although not a Member State.

"We wanted to discuss the interesting government report on European Policy of last autumn. To recognise that yes the Swiss wish at present to pursue their interests outside of membership. Perhaps also to counter some misconceptions about what might be on offer this end. In my view it amounts to tiding up the Bilateral. Maybe adding to them a framework agreement that simplifies the administrative load on both sides. What I would have underlined is not on offer is so called membership light. You are either a member or you are not and that is where I think the current difficulties over cantonal tax regimes stem from

"Switzerland is not a member state of the European Union. Both sides do well to recall this basic fact. Switzerland does not therefore enjoy all the benefits of memberships, nor is it subject to all the obligations. This is the difficulty of such atypical arrangements - variable geometry that will forever throw up unexpected problems and sources of irritation. However such problems that with good will can be solved.

"Lets take this tax issue head on. If what the Commission really wants from Switzerland, which I suspect to be the case, is to extend the Code of Conduct on business taxation to Switzerland, then let's talk about this. Even between the Member States it is only a voluntary code. I have no doubt that there are so-called offshore taxation arrangements from the Member State I know best that would not exactly bear close scrutiny. Yet I do not see such activity from the Commission in that direction.

"We need a discussion as befits the relationship between the EU and our nearest geographic neighbour in the heart of Europe, a country providing our second largest export market, and an inspiration to us and many in terms of its democratic structures and internationalism.

"Instead we tell the Swiss that their cantonal tax systems are predatory, that's a strong and unpleasant word. If they are indeed predatory I would expect to see a line of obvious cases of actual harm to community trade, tangible practical examples that could be demonstrated as having this predatory effect. I have seen none such mentioned indeed the Commission relies instead on the argument that it does not have to demonstrate but merely show that the structures could have this effect. But if there are no actual examples, or is it that they would not stand up to examination under the strained argument that is put forward. An argument against a non-member state based on an old free trade agreement designed primarily to deal the trade in goods.

"Let me look at this another way. Perhaps my voters in Yorkshire might wonder why I spend so much time on Switzerland. But if my northerly region of England had enjoyed over the years the level of fiscal autonomy vis a vis London that the Swiss cantons have in their country maybe we would not have been such a drain on EU structural funds. Switzerland of course contributes financially to our enlargement process with popular consent. Ours is a deep and complicated relationship.

"Over the years I have found this relationship, exasperating, frustrating, but never dull. We are told we have to be nice to the Swiss before a referendum, we are asked continually what will you do to us if we vote no.

"Of course the answer is the choice is always that of the Swiss people, if they wish to work with us. But there has to be an acceptance that without full membership there cannot be political influence here. Yet this relationship needs to grow up on both sides and be respectful, we hope the new Commission office in Berne will assist that process the best for me would be to see Swiss ministers in the Council, a Swiss Commissioner and Swiss colleagues here in this hemicycle rather than us discussing Switzerland at second remove. I look forward to that day but increasingly wonder if I shall be here to see it."