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Switzerland secures safeguard clause in Bilateral III talks with EU
As part of the Bilateral III negotiations with the EU, the Swiss Federal Council acknowledged the implementation of the safeguard clause on 14 May 2025. This clause allows temporary restrictions on the free movement of individuals when specific thresholds related to net immigration, unemployment or social assistance are exceeded. As a result, Switzerland is expected to amend the Agreement on the Free Movement of Persons (AFMP) to partially adopt the provisions of EU Directive 2004/38/EC, while maintaining a focus on employment-based migration to strengthen bilateral relations with the EU. In response to the EU directive and to enhance bilateral relations, Switzerland is expected to amend the AFMP to partially adopt its provisions while ensuring that migration remains employment focused. This amendment seeks to strengthen the Swiss economy by attracting necessary skilled labor while protecting the social system.
A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.