The Federal Council has decided that Switzerland’s new package of bilateral agreements with the European Union should be subject to an optional referendum, meaning approval by a simple majority of voters would be sufficient.

In its view, this is in line with the practice followed for the Bilateral Agreements I and II which, from a democratic perspective, “represents the most appropriate solution”.

The so-called “Compass Initiative”, launched in 2024, calls for the package of Swiss-EU agreements to be put to a vote for approval by Swiss voters and the cantons. Its supporters, entrepreneurs from German-speaking Switzerland, want voters and cantons to approve those international treaties that provide for the adoption of important provisions laying down legal rules.

Believing this initiative would threaten Switzerland’s credibility in foreign policy as well as its economic standing, the government rejected the proposal on Thursday without putting forward a counter-proposal. On Wednesday, it had already expressed its opposition to a commission’s proposal calling for a vote requiring a double majority of the people and the cantons.

Securing a yes vote in the referendum on Bilateral Agreements III would be much more difficult if a majority of cantons were required, as the smaller, more conservative cantons tend to vote no on issues relating to European integration. According to certain political experts, a popular majority of around 55% would be needed to secure a cantonal majority.