EU membership a mountain for Swiss

A COUNTRY completely surrounded by a huge trading bloc has a powerful incentive to join that bloc

A COUNTRY completely surrounded by a huge trading bloc has a powerful incentive to join that bloc. An industrialised country needs access to markets on its front and back doorsteps. A country whose currency is being pushed up in value because of uncertainty about European Monetary Union needs to end that uncertainty.

Any other country would hardly think twice about joining the EU in such circumstances, but the Swiss are different.

The Swiss have always been different. Neutral since the 16th century, they have a unique system of referendums which takes decisions, some big and some very small, out of the hands of politicians and officials and puts them to voters to decide.

To some it is the essence of democracy, to others a recipe for populism and paralysis. So far, the Swiss have made it work for them, though women who got the vote only a quarter of a century ago may take another view of it.

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Just 10 years ago, it voted against joining the UN although a large part of its economy - and more than 20.000 jobs - depend on UN linked institutions on Swiss soil. This might strike some as having your fondue and easing it.

Switzerland will join the EU - that's the federal government's declared objective. "If we are to sell our manufactured goods, we need to be part of Europe," says Mr Bruno Spinner, head of the Swiss federal integration office in Berne, the man whose job it is to promote Swiss EU entry.

The Swiss cabinet member with responsibility for Foreign Affairs, Mr Flavio Cotti, says his ambition is "to make Switzerland more open in the coming years. Membership of the EU is a priority and we must be open, feel open as we never felt before."

Mr Cotti points to Switzerland's role in Bosnia chairing the OSCE. The Swiss government recently declared its intention of taking part in the Nato sponsored Partnership for Peace.

There is one big fly in the ointment. In 1992, the Swiss voted against joining the European Economic Area, seen as a stepping stone to EU membership. Some 50.3 per cent voted against. 49.7 per cent in favour.

There was considerable populist opposition, much focusing on neutrality and immigration issues, some on the "straight banana" tactic and expertly marshalled by Mr Christophe Blocher, who challenged his own party line and the establishment and won the day.

Because there must be a majority of cantons in favour as well as a majority of votes, about 56 per cent in favour is needed to get constitutional change passed. (Cantons are local government units which have many more powers than in the Irish or UK system.)

One source in the Swiss department of foreign affairs whispered that it can take up to four referendums to get a "reasonable" proposition accepted.

Nonetheless, faced with a stagnant economy, rising unemployment and an unstoppable Swiss franc, Mr Cotti and his federal government colleagues must get on with persuading their conservative constituents that "Switzerland says no" is not a workable strategy. So, for the moment it is joining the EU by the front door.

The current tactic is to reach a series of bilateral agreements with the EU on research, technical barriers to trade, public procurement, agriculture, transport, freedom of movement of people, to generate momentum towards eventual unity.

Mr Spinner says one must understand that Swiss reluctance is based on traditional conservatism in rural areas and fears about loss of sovereignty. The Swiss value their neutrality. Unlike their European neighbours, they have not been invaded.

Historically the Swiss were neutral in a divided Europe, Mr Spinner says. "We need to realise that today Europe is united in a way that has never existed before and we must consider options in that changed situation."

Neutrality did nothing for Holland and Belgium," says Mr Cott, "I can understand their position, but the EU must respect ours."

In the current bilateral negotiations, Swiss problems with immigration have surfaced. The Swiss claim 20 per cent of their population are immigrants. However, they are slow to grant citizenship to long term immigrants.

Birth in Switzerland does not guarantee citizenship to immigrants' offspring, so other European countries may not take this figure at face value. Nonetheless, immigration is a live political issue which could torpedo a future referendum on EU membership. "Right now the Swiss can accept the reality of immigration but not the principle," says Mr Spinner.

Historically high unemployment - at around 4 per cent - adds to tensions over immigration. "I want to see a Switzerland which ... is open to other countries and free from hatred of people who are not Swiss," wrote the head of corporate banking at Credit Suisse Northern Europe in London, Mr Urs G. Landolt, in a comment which reveals some of the turmoil the issue causes.

Another problem which the Swiss cite is access for EU lorries. They fear huge lorries from neighbours France and Austria thundering across the Alps, spewing out pollution and ploughing up their roads.

The Austrians and French allow lorries of up to 40 tonnes, the Swiss limit them to 28. Switzerland has a highly developed rail network and wants to see heavy goods use it. The EU may require some persuading that road/rail/road is an efficient means of getting goods from Dunkirk to Kitzbuehl.

Progress on sectoral agreements is going too slowly for Mr Spinner and his team and dealing with changing faces at the rotating EU presidency may not help. However, he expressed his gratitude to the Irish presidency and Germany's Helmut Kohl and Klaus Kinkel for help received.

He had hoped to have made significant progress by the end of 1996, but the preparations for the Intergovernmental Conference make that date unlikely.

Given Switzerland's tradition of sturdy independence, full membership of the EU might seem too high a mountain in the immediate future. But the Swiss are nothing if not resourceful, and people who live in the Alps are used to climbing mountains.