The Swiss government on Thursday recommended that parliament reject an initiative aimed at blocking a new agreement between Switzerland and the European Union that would mark the biggest overhaul in bilateral economic relations in a generation.
Backed by the billionaire founders of Swiss asset manager and private equity firm Partners Group (PGHN.S), the so-called "Kompass-Initiative" aims to protect Swiss independence by broadening the scope of compulsory referendums on state treaties.
Agreed in December 2024, the EU-Swiss deal is currently being debated in the Swiss parliament. If passed, it is likely to face a referendum in 2027 at the earliest.
The ruling Federal Council said the Kompass initiative would create legal uncertainty, disrupt Switzerland's established democratic system and threaten legal and economic stability.
"Instead of clarity, it creates more uncertainty and problems," Justice Minister Beat Jans told a press conference.
The initiative seeks to make international treaties require approval from not just a majority of voters, but also a majority of its 26 cantons, which would raise the bar for passing such accords.
It also opposes the so-called "dynamic alignment" of laws foreseen under the EU-Swiss deal, in which Switzerland, subject to its own constitutional safeguards, adapts its legislation to relevant changes in EU law.
The Federal Council said the initiative's provisions on the adoption of law under international treaties are so unclearly formulated that they would create serious legal uncertainty.
The initiative will put to a referendum after gathering enough signatures, although no date has yet been decided.
