Swiss scrap talks with EU on cooperation deal

Switzerland on May 26 called off years of talks with the European Union aimed at sealing a cooperation agreement with Bern's largest trading partner, in a move which angered Brussels.

Brussels and Bern have spent more than a decade discussing a so-called framework deal, which would rejig five major agreements within a patchwork of 120 accords that govern non-EU member Switzerland's relations with the surrounding bloc.

But Swiss President Guy Parmelin said that the 13 years of talks had hit the end of the road, in a move which could jeopardise relations with the EU, which had made no secret of its impatience to nail down a deal.

Parmelin went to Brussels in late April for talks with EU chief Ursula von der Leyen, but the pair made no headway on resolving a range of sticking points

The two sides hit an impasse after the EU refused to budge on demands from Parmelin to exclude key issues relating to state aid, wage protections and freedom of movement from the pact.

In a statement, Switzerland's Federal Counci government said it reviewed the outcome of those talks on May 26.

"There remain substantial differences between Switzerland and the EU on key aspects," it said.

"The conditions are thus not met for the signing of the agreement."

The move brings the negotiations to a close, the statement said.

There is concern that failing to secure the framework deal might rock Switzerland's relationship with the EU.

Around half of all Swiss exports go to the bloc, which all but surrounds the landlocked country, while two-thirds of Switzerland's imports are from the EU.

Among other points, the ditched agreement covered access to the single market and fine-tuning applicable Swiss and EU laws.

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