Switzerland extends access for EU investors

[ZURICH] Switzerland's federal government said on Wednesday it would extend measures designed to protect access to its stock market for EU investors, as talks with Brussels on a wide-ranging agreement remain in limbo.

The emergency provision, valid until December 31, allows EU-based traders - who make up around 60 per cent of foreign investors in Switzerland - to continue buying and selling shares in the country.

Bern's relations with the surrounding 27-nation bloc are governed by a patchwork of agreements, and talks on crafting an overarching accord have been stalled since Swiss negotiators quit talks in May.

"It takes two to tango," European Commission Vice President Maros Sefcovic warned on Monday, calling for Switzerland to show "unambiguous political will to engage with us on the real issues".

The stock market measure came into force in mid-2019 after the EU failed to renew an "equivalence" classification applied to the Alpine country's market.

Switzerland's federal government has also opened a public consultation to make the emergency measure a permanent law.

In a statement, the Swiss Federal Council said it "remains convinced that Switzerland meets all the requirements for unrestricted recognition of the equivalence of Swiss stock exchange regulation by the EU".

"Unlimited stock market equivalence remains the Federal Council's objective," it added.

AFP