Bilateral Agreements III: Council of States enters into deliberations (cross-border guide)

Context

In brief

• Bilaterals III: entry into the matter with 29 votes against 15
• State aid authority: 41 against 1, separate from COMCO
• Hotel VAT: 3.8% rate until 2031

Key facts

• Vote on Bilaterals III → 29 against 15 in the Council of States
• Supervisory authority → 41 against 1, independent from COMCO
• Transitional period → five years from the entry into force of the agreements
• Hotel rate → 3.8% until 2031
• Standard rate → 8.1%
• Current deadline → end of 2027
• National Council vote → 101 against 86 and 7 abstentions

The double parliamentary passage

On September 28, 2026, the Council of States placed the future of relations between Switzerland and the EU at the center of parliamentary work. After an entry-into-the-matter debate that began at 2:38 PM, the chamber entered into the matter at 8:41 PM regarding the Switzerland-EU stabilization package, with 29 votes against 15. The detailed examination continued on state aid, and discussions were adjourned until Tuesday.

The vote showed a clear division. Against the entry into the matter were the seven representatives of the SVP and four Swiss-German exponents leading the Center and FDP. In favor were the SP, Greens, and Green Liberals, along with the remaining members of the Center and the FDP.

On behalf of the foreign policy committee, Carlo Sommaruga (SP/GE) recalled the deep ties with the European Union, Switzerland's primary trading partner. He defended a package intended to revitalize and strengthen existing bilateral agreements, warning that a 'no' would risk eroding current understandings. Marco Chiesa, representing the minority opposed to entering the merits, replied that the core issue is the resolution of disputes and that the agreements do not stabilize bilateral relations.

Control over public aid

The Council of States approved, with 41 votes against 1, the creation of a supervisory authority for state aid, separate from COMCO. The logic cited in the dossier is that of EU controls on aid granted by its members to avoid competition distortions in the internal market. Switzerland must create its own authority within a transitional period of five years from the entry into force of the agreements. Its opinion will be non-binding; if not respected, the authority will bring the case before a Swiss court.

In land transport, electricity, and air transport, the Confederation, Cantons, and Municipalities must notify every new public aid when it exceeds a certain threshold and is not subject to an exemption. Exceptions are provided, particularly for public transport operating solely within Switzerland.

The hotel rate

In the National Council, after the question hour, the plenum examined the divergences regarding the special rate for hotel services. With 101 votes against 86 and 7 abstentions, it decided to extend the reduced rate of 3.8% until 2031. The measure has been in effect since 1996 and has been extended six times. The dossier now returns to the Council of States.

Operational details

What changes in practical terms

The vote on the agreements and the decision on VAT do not produce the same kind of consequence. The former opens a phase of parliamentary examination and introduces future oversight of public aid; the latter defines, for now in the National Council, a time horizon for the hotel rate. For those who live or work in Switzerland, distinguishing the two levels avoids reading as definitive what remains in the passage between the Chambers.

A new filter for public aid

The most operational point concerns the Confederation, Cantons and Municipalities. The notification is not described as general: the source links it to new aid in land transport, electricity and air transport, when it exceeds a certain threshold and does not benefit from an exemption. In terms of administrative work, each entity will therefore have to consider three elements together: sector, the new nature of the aid, and the applicability of a threshold or exemption. These are the conditions that, in the description of the package, trigger the notification.

If an entity prepares new aid in one of the sectors indicated, the procedure provided for by the package requires notification when the conditions are met. The authority's opinion is not binding, but failure to comply may bring the case before a Swiss court. The authority will be separate from COMCO: the oversight provided for by the package will therefore have a separate institutional reference. For public transport operators that operate solely in Switzerland, the source indicates exceptions.

Three horizons for the hotel sector

For the reduced rate, the compromise of the National Council should be read together with the alternatives that have already emerged. The source compares three outcomes:

The comparison does not indicate three simultaneous rates. It describes the path of the dossier: the extension to 2031 is the choice of the National Council, while the text returns to the Council of States. For a hotel business, the difference between the end-of-2027 deadline, the 2031 horizon and the 2035 proposal concerns the duration of the measure to be considered in planning, but the source does not yet close the passage between the Chambers.

To connect the topic to a personal budget without confusing VAT and taxes, one can use calcolatore stipendio e imposte. For the broader framework of costo della vita in Svizzera, the comparison should be kept separate from the parliamentary outcomes described here.

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Key points

The checklist for following the dossier

The news report already provides a useful sequence for monitoring the next steps. The key is not to put Bilaterals III, state aid and hotel VAT on the same timetable: they have different votes, conditions and timelines.

If following a public aid measure

1. Determine whether the aid is new and whether it falls under land transport, electricity or air transport. These are the three sectors indicated by the source. 2. Verify the two operational conditions: exceeding a certain threshold and the absence of an exemption. The source provides for notification when both apply. 3. If the conditions are met, the Confederation, the Cantons and the Municipalities must notify the measure to the new supervisory authority. The transitional period for establishing the authority is five years from the entry into force of the agreements. 4. Consider the outcome of the opinion: it is not binding, but if it is not followed, the authority brings the case before a Swiss court. Exceptions are provided for public transport services operating only in Switzerland.

If following the hotel VAT rate

To check the dates, the first reference point is the end of 2027, when the special rate expires according to the source. The second is 2031, the end of the extension chosen by the National Council; the third is 2035, indicated by the Federal Council's draft and the Council of States and supported by the minority. The ordinary rate of 8,1% should be kept as a scenario linked to not entering into the matter, while 3,8% is the scenario of the National Council's decision. The next step remains with the Council of States.

If following the Switzerland-EU package

To read the updates, it is useful to separate entry into the matter from detailed examination. The former was accepted; the latter continued on state aid and the discussions were updated to Tuesday. The report on the political phase indicates that the most intense debate will come with the examination of the individual agreements and accompanying measures. This distinction makes it possible to follow the dossier without confusing a procedural vote with approval of the entire package.

To complete the check with a simulation of your own budget, use the calcolatore stipendio e imposte.

Source: rsi.ch