Swiss government moves to block referendum initiative that could derail EU agreement

By Sophia Reynolds|Financial Markets Editor
Swiss government moves to block referendum initiative that could derail EU agreement

ZURICH, Aug 13 (Reuters) - The Swiss government has urged parliament to reject a popular initiative that threatens to upend a landmark agreement with the European Union, saying the proposal would inject legal chaos into the country's carefully balanced system of direct democracy.

The 'Kompass-Initiative,' backed by the billionaire founders of Partners Group, seeks to broaden the scope of mandatory referendums on state treaties. Under its terms, international agreements would need approval not only from a majority of Swiss voters, but also from a majority of the country's 26 cantons.

The Federal Council, Switzerland's ruling body, argued on Thursday that this would disrupt the established democratic architecture and risk legal and economic stability as Bern and Brussels work through the terms of a new partnership.

The agreement, reached in December 2024 after years of painstaking talks, is considered the most significant overhaul of Swiss-EU bilateral relations in a generation. It is currently being debated in parliament and could face a nationwide vote as early as 2027.

Under the deal, Switzerland would adopt certain EU legal developments through a mechanism known as 'dynamic alignment.' While the arrangement includes constitutional safeguards, initiative supporters argue it goes too far in ceding sovereignty.

The Federal Council said the initiative's language was too vague to be implemented cleanly. 'Instead of clarity, it creates more uncertainty and problems,' Justice Minister Beat Jans told reporters in Bern.

Critics of the initiative have also warned that requiring a double majority for treaties would make it far more difficult to negotiate future international agreements, potentially isolating Switzerland in an increasingly volatile global order. Proponents, however, cast it as a necessary 'sovereignty brake' against overreach by foreign institutions and international bodies.

The next step is for the initiative to be put to a referendum after enough signatures are gathered, though no date has been set. The government's recommendation is non-binding; the final decision on how to proceed rests with parliament.

(Reporting by Dave Graham; editing by John Revill)

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