COM(2025) 308 Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme

EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 10 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  PROTOCOL BETWEEN THE EUROPEAN UNION AND THE SWISS CONFEDERATION ON PARLIAMENTARY COOPERATION & /en THE EUROPEAN UNION (hereinafter referred to as "Union"), and THE SWISS CONFEDERATION (hereinafter referred to as "Switzerland"), hereinafter referred to as the "Contracting Parties", CONSIDERING the close mutual ties between them based on their proximity, shared values and common European culture, as well as the fact that their economies are highly interlinked in terms of trade and investments, SHARING the objective of contributing to the smooth running and continued development of the Union and Switzerland's comprehensive partnership to its full potential, WELCOMING the conclusion in December 2024 of the negotiations on the broad bilateral package for the stabilisation and development of their relations, DESIRING to contribute to the reinforcement of cooperation between the European Parliament and the Swiss Federal Assembly, HAVE AGREED AS FOLLOWS: & /en 1  ARTICLE 1 A Joint Parliamentary Committee is hereby established. It shall contribute, through dialogue and debate, to a better understanding between the Contracting Parties on the broad bilateral package and the possible further development of their bilateral relations. ARTICLE 2 The Joint Parliamentary Committee shall be composed, in equal numbers, of members of the European Parliament and members of the Swiss Federal Assembly. The total number of members of the Joint Parliamentary Committee shall be specified in its rules of procedure. ARTICLE 3 The Joint Parliamentary Committee shall meet alternately in the Union and in Switzerland at least once a year. & /en 2  ARTICLE 4 Upon its establishment, the Joint Parliamentary Committee: (a) may request relevant information regarding the implementation of any agreement that forms part of the broad bilateral package, as well as of any possible future bilateral agreement in fields related to the internal market in which Switzerland participates, from the Contracting Parties, which shall then supply that Committee with the requested information; (b) shall be informed on a regular basis of the decisions and recommendations of the Joint Committees established by any agreement that forms part of the broad bilateral package and by any possible future bilateral agreement in fields related to the internal market in which Switzerland participates; and (c) may make recommendations to the Contracting Parties. ARTICLE 5 The Joint Parliamentary Committee shall adopt its rules of procedure with a two-third majority of the members of that Committee. & /en 3  ARTICLE 6 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. 2. This Protocol shall enter into force on the first day of the second month following the last notification pursuant to paragraph 1. ARTICLE 7 This Protocol may be amended at any time by mutual agreement of the Contracting Parties. Each Contracting Party may terminate this Protocol at any time by notifying the other Contracting Party in writing through diplomatic channels. Termination shall take effect three months after receipt of such notification. Done at [place], on [date], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. & /en 4 IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. For the European Union For the Swiss Confederation & /en 5 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 11 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  JOINT DECLARATION BY THE EUROPEAN UNION AND THE SWISS CONFEDERATION ON THE ESTABLISHMENT OF A HIGH-LEVEL DIALOGUE ON THE BROAD BILATERAL PACKAGE AND THE POSSIBLE FURTHER DEVELOPMENT OF THE BILATERAL RELATIONS BETWEEN THE EUROPEAN UNION AND SWITZERLAND The European Union and the Swiss Confederation, CONSIDERING the close mutual ties between them based on their proximity, shared values and common European culture, as well as the fact that their economies are highly interlinked in terms of trade and investments, SHARING the objective of contributing to the smooth running and continued development of the European Union and Switzerland's comprehensive partnership to its full potential, RECALLING the Common Understanding of 27 October 2023, between representatives of the Swiss Federal Council and the European Commission, and in particular paragraph 7 thereof, WELCOMING the conclusion in December 2024 of the negotiations on the broad bilateral package for the stabilisation and development of their relations, declare that a high-level dialogue will be established, which: – will be co-chaired by the Commissioner responsible for relations with Switzerland and the Head of the Swiss Federal Department of Foreign Affairs; & /en 1 – will aim to promote mutual understanding and cooperation on the negotiated broad bilateral package and the possible further development of their bilateral relations; – will discuss issues of mutual interest, in particular Switzerland's participation in the internal market and possibilities to strengthen the partnership between Switzerland and the European Union; and – will regularly evaluate the implementation of the broad bilateral package, the work of the Joint Committees and the possible further development of their bilateral relations. The high-level dialogue will take place annually, alternately in Switzerland and in Brussels, to review progress and discuss future cooperation. The first dialogue will take place within three months after the entry into force of the broad bilateral package and the detailed modalities thereof will be jointly defined on this occasion. This Joint Declaration is without prejudice to the establishment of a political dialogue on matters of foreign and security policy between the High Representative of the European Union for Foreign Affairs and Security Policy and the Head of the Swiss Federal Department of Foreign Affairs, which is dealt with separately. Signed in [place], on [date], in duplicate in the English and French languages. For the European Union For the Swiss Confederation & /en 2 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 12 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  Declarations referred to in Articles 2(2) of the Council Decision on the conclusion, on behalf of the Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation Joint Declarations accompanying the Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons: JOINT DECLARATION ON UNION CITIZENSHIP The concept of Union citizenship as introduced by the Treaty of Maastricht (now Article 9 of the Treaty on European Union and Article 20(1) of the Treaty on the Functioning of the European Union) has no equivalent in the Agreement on the free movement of persons. It follows that the integration of Directive 2004/38/EC into the Agreement, subject to the exceptions set out in the Agreement, shall be without prejudice to the evaluation of the relevance for the Agreement of future Union legislation as well as case law of the Court of Justice of the European Union, prior or subsequent to the signature of the Agreement, based on the concept of Union citizenship. That relevance shall be determined, in accordance with the Agreement on the free movement of persons, including the provisions of the Institutional Protocol to the Agreement. The Agreement does not provide a legal basis for political rights of nationals of the Member States and Switzerland. & /en 1  JOINT DECLARATION ON PREVENTING AND ACTING AGAINST ABUSE OF RIGHTS CONFERRED BY DIRECTIVE 2004/38/EC The Contracting Parties confirm the common objective of preventing and acting against abuse of rights conferred by Directive 2004/38/EC1, in accordance with Article 35 of that Directive, notably in relation to access to social assistance. JOINT DECLARATION ON REFUSING SOCIAL ASSISTANCE AND TERMINATING RESIDENCE PRIOR TO THE ACQUISITION OF PERMANENT RESIDENCE The Contracting Parties share the view that Union citizens and Swiss nationals should not become an unreasonable burden on the social assistance systems of, respectively, Switzerland and the Member States. For this reason, the Parties: (i) may, during the first three months of residence, refuse access to social assistance to persons who are not workers, self-employed persons, or persons who retain worker or self-employed status and their family members without carrying out an individual assessment of the person's situation; (ii) may refuse to grant social assistance to economically inactive persons who do not comply with the requirement to possess sufficient resources for themselves and the members of their family; 1 Directive 2004/38/EC (OJ L 158, 30.4.2004, p. 77), as applicable according to Annex I to the Agreement. & /en 2 (iii) may, for first-time jobseekers and persons who do not retain worker or self-employed status, refuse to grant social assistance without carrying out an individual assessment of the person's situation. In accordance with Article 14 and Article 15 of Directive 2004/38/EC1, Switzerland and the Member States may expel persons who no longer satisfy the requirements for a right of residence, such as persons who no longer retain worker or self-employed status and do not enjoy residence rights based on other provisions of the Directive. To retain worker status, workers or self-employed persons, other than those who are temporarily unable to work as a result of an illness or accident, who have become involuntarily unemployed must register as jobseekers with the relevant employment offices and fulfil the requirements to continue to be registered as jobseekers with the public employment services, provided these requirements are not discriminatory. In this context, the host State may take into account, on a case-by-case basis and by applying the same standard to its own nationals, whether a jobseeker is genuinely cooperating in good faith with the relevant office with a view to re-entering the job market. The objective of this cooperation is for the jobseeker to find a job in a reasonable period of time. This should be applied in accordance with the principle of proportionality. 1 Directive 2004/38/EC (OJ L 158, 30.4.2004, p. 77), as applicable according to Annex I to the Agreement. & /en 3  JOINT DECLARATION ON THE NOTIFICATION OF THE TAKING UP OF EMPLOYMENT The Contracting Parties share the view that the dynamic alignment by Switzerland with legal acts of the Union in the area of free movement of persons should be without prejudice to the application of proportionate and non-discriminatory administrative obligations on employers to notify the authorities of the taking up of employment, such as the Swiss notification procedure for work-related short-term stays, intended to enable the relevant authorities to conduct efficient labour market controls. Any such administrative obligations should not affect the person's right of residence, including for the purpose of acquiring permanent residence. JOINT DECLARATION ON THE CONVENTION OF THE RECOGNITION OF QUALIFICATIONS The Contracting Parties note that all Member States and Switzerland are parties to the Convention on the Recognition of Qualifications concerning Higher Education in the European Region and confirm that they comply with it, as in force at the date of signature of the Amending Protocol, in the implementation of the Agreement. & /en 4  JOINT DECLARATION ON JOB VACANCIES The Swiss dynamic alignment to the EURES acquis should not interfere with national legislation implementing Article 121a of the Swiss Federal Constitution, which foresees an obligation for Swiss employers to register vacancies of specific professions with above-average level of unemployment with the regional employment centre (RAV) before the vacancies go public and are transmitted to the EURES portal. JOINT DECLARATION ON COMMON OBJECTIVES REGARDING THE FREEDOM TO PROVIDE SERVICES UP TO 90 WORKING DAYS AND ENSURING POSTED WORKERS' RIGHTS Switzerland and the Union share the common objective of granting their citizens as well as their economic operators fair conditions for the freedom to provide services for up to 90 days of actual work per calendar year (which includes the posting of workers) while fully ensuring the rights of workers. Switzerland and the Union share the view that proportionate and non-discriminatory controls are necessary to ensure the freedom to provide services and the correct and effective application of the rules protecting workers by preventing abuse and circumvention. & /en 5  JOINT DECLARATION ON EFFECTIVE CONTROL SYSTEMS INCLUDING SWITZERLAND'S DUAL ENFORCEMENT SYSTEM The Contracting Parties declare that the control systems put in place by Switzerland and the Member States should be suitable, effective and non-discriminatory. The competent enforcement bodies under national law should carry out effective controls on their territory in order to ensure compliance with the applicable rules and regulations. The responsibility for conducting effective controls to ensure compliance with the applicable rules and regulations lies with the designated authorities and other relevant monitoring and enforcement bodies under national law, which, as in the case of Switzerland, can include social partners, in accordance with Switzerland's dual enforcement system. This arrangement ensures that the control and sanction powers of these entities are upheld and respected. Controls should be carried out in a proportionate and non-discriminatory manner, taking into account that the Agreement limits the freedom to provide services to 90 days of actual work per calendar year. & /en 6  JOINT DECLARATION ON THE PRINCIPLE OF "EQUAL PAY FOR EQUAL WORK IN THE SAME PLACE" AND ON A PROPORTIONATE AND ADEQUATE LEVEL OF PROTECTION OF POSTED WORKERS Considering their common objective of upholding the principle of "equal pay for equal work in the same place" and that Switzerland has been applying this principle since the entry into force of the Agreement on 1 June 2002 and has strengthened its implementation in recent years on the basis of an objective risk analysis and the proportionality of controls, Switzerland and the Union both can guarantee a proportionate and adequate level of protection. Their aim is to guarantee the freedom to provide services while ensuring the fair and effective enforcement of regulations, thereby preventing any instances of abuse or circumvention. JOINT DECLARATION ON THE PARTICIPATION OF SWITZERLAND IN THE ACTIVITIES OF THE EUROPEAN LABOUR AUTHORITY Switzerland should be able to continue participating in the meetings and deliberations of the Management Board of the European Labour Authority as observer, without prejudice to working arrangements the Authority could establish with Switzerland in line with Article 42 of Regulation (EU) 2019/11491. 1 Regulation (EU) 2019/1149 of the European Parliament and of the Council of 20 June 2019 establishing a European Labour Authority, amending Regulations (EC) No 883/2004, (EU) No 492/2011, and (EU) 2016/589 and repealing Decision (EU) 2016/344 (OJ L 186, 11.7.2019, p. 21), including any subsequent amendments. & /en 7  JOINT DECLARATION ON THE DECLARATORY REGISTRATION SYSTEM OF FRONTIER WORKERS The Contracting Parties agree that, should Switzerland consider registering frontier workers for declaratory purposes in accordance with Article 7a of the Agreement, it should address this with the neighbouring Member States in the relevant bilateral fora. Such discussions should not result in any differentiated treatment between frontier workers under the Agreement and are without prejudice to the rights and obligations of the frontier workers under the Agreement. JOINT DECLARATION CONCERNING THE INCLUSIONS OF TWO EU LEGAL ACTS IN ANNEX I TO THE AGREEMENT The Contracting Parties share the view that Regulation (EU) 2024/27471 falls partly under the scope of the Agreement. They agree that the Joint Committee shall take the measures necessary to ensure the integration of this Regulation into Annex I to the Agreement immediately following the entry into force of the Amending Protocol to the Agreement. The integration shall take into account the Regulation's horizontal character and potential links to other bilateral agreements between the Contracting Parties. 1 Regulation (EU) 2024/2747 of the European Parliament and of the Council of 9 October 2024 establishing a framework of measures related to an internal market emergency and to the resilience of the internal market and amending Council Regulation (EC) No 2679/98 (Internal Market Emergency and Resilience Act) (OJ L, 2024/2747, 8.11.2024). & /en 8 The Contracting Parties share the view that Directive (EU) 2024/28411 falls under the scope of the Agreement. They agree that the Joint Committee shall take the measures necessary to ensure the integration of this Directive into Annex I to the Agreement immediately following the entry into force of the Amending Protocol to the Agreement. JOINT DECLARATION ACCOMPANYING THE STATE AID PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON AIR TRANSPORT If the European Commission grants financial support, in any form whatsoever, which is not subject to State aid rules under this Protocol, and which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods and affects trade between the Contracting Parties within the scope of the Agreement, Switzerland may request consultations to discuss the matter. 1 Directive 2024/2841 of the European Parliament and of the Council of 23 October 2024 establishing the European Disability Card and the European Parking Card for persons with disabilities (OJ L, 2024/2841, 14.11.2024). & /en 9  JOINT DECLARATION ACCOMPANYING THE AMENDING PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON THE CARRIAGE OF GOODS AND PASSENGERS BY RAIL AND ROAD 1. The Contracting Parties note that applicable EU law allows independent national capacity allocation bodies to be competent to allocate train paths in a non-discriminatory manner. The Contracting Parties note that in accordance with Directive 2012/34/EU of the European Parliament and of the Council of 21 November 2012 establishing a single European railway area (OJ L 343, 14.12.2012, p. 32), the traffic management remains within the competence of national infrastructure managers. 2. The Contracting Parties note that, subject to the respective competition rules, applicable EU law does not preclude international groupings from operating international services, including international services that are partly composed of services which participate in the interval-service timetable. 3. The Contracting Parties endeavour to prolong the transitory measures to maintain smooth rail traffic between Switzerland and the European Union provided by Decision n°2/2019 of the Community/Switzerland Inland Transport Committee (OJ EU L 13, 17.1.2020, p. 43) at three-year intervals, subject to the respective decisions of the Joint Committee. & /en 10  JOINT DECLARATION ACCOMPANYING THE STATE AID PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON THE CARRIAGE OF GOODS AND PASSENGERS BY RAIL AND ROAD If the European Commission grants financial support, in any form whatsoever, which is not subject to State aid rules under this Protocol, and which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods and affects trade between the Contracting Parties within the scope of the Agreement, Switzerland may request consultations to discuss the matter. JOINT DECLARATION ACCOMPANYING THE AGREEMENT BETWEEN THE EUROPEAN UNION AND THE SWISS CONFEDERATION ON ELECTRICITY If the European Commission grants financial support, in any form whatsoever, which is not subject to State aid rules under this Agreement between the European Union and the Swiss Confederation on Electricity and which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods and affects trade between the Contracting Parties within the scope of the Agreement, Switzerland may request consultations to discuss the matter. & /en 11  Declarations referred to in Articles 2(3) of the Council Decision on the conclusion, on behalf of the Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation DECLARATION BY SWITZERLAND ON MEASURES TO BE TAKEN IN RESPECT OF SELF-EMPLOYED PERSONS IN THE CONTEXT OF THE NOTIFICATION PROCEDURE FOR WORK-RELATED SHORT-TERM STAYS Switzerland declares that, in the light of the solutions on the posting of workers described in Annex I to the Agreement and the Joint Declaration on the notification of the taking up of employment, it will, if necessary, take measures to ensure that self-employed persons do not circumvent these rules. & /en 12  Declaration accompanying the Agreement between the European Union and the Swiss Confederation on health DECLARATION BY THE SWISS CONFEDERATION REGARDING THE INCLUSION OF THE INSTITUTIONAL ELEMENTS BY ANALOGY IN THE AGREEMENT ON HEALTH The Swiss Confederation declares that the institutional elements common to the agreements in the fields related to the internal market in which Switzerland participates are only included by analogy in this Agreement, as this is necessary for the functioning of the cooperation set out therein. This does not constitute a precedent as regards future agreements that are not in the fields related to the internal market in which Switzerland participates. ________________ & /en 13 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 2 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  AMENDING PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON AIR TRANSPORT & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", hereinafter referred to as the "Contracting Parties"; HAVING REGARD to the Agreement between the European Community and the Swiss Confederation on air transport, done at Luxembourg on 21 June 1999, which entered into force on 1 June 2002 ("the Agreement"); RECOGNISING the crucial importance of civil aviation in creating connectivity for passengers, freight and airmail; WHEREAS a broad bilateral package, including the Institutional Protocol to this Agreement, has been agreed between the Contracting Parties in order to stabilise and develop mutual relations in the fields related to the internal market in which Switzerland participates; REITERATING, in the context of the broad bilateral package between the Contracting Parties, the joint commitment of the Contracting Parties towards safe, secure, competitive, sustainable and innovative civil aviation, HAVE AGREED AS FOLLOWS: & /en 1  ARTICLE 1 Amendments to the Agreement 1. The Agreement is amended as follows: (a) in Article 2, the words "as mentioned in the Annex to this Agreement" are deleted; (b) in Article 15, paragraph 3 is replaced by the following: "3. Traffic rights between points within Switzerland and between points within the Member States of the Union shall be granted starting from the first scheduling season after the entry into force of the Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport."; (c) in Article 18, paragraph 3 is replaced by the following: "3. Any enforcement action under this Article shall be carried out in accordance with Article 19."; (d) Article 21 is replaced by the following: "ARTICLE 21 1. A Joint Committee is hereby established. The Joint Committee shall be composed of representatives of the Contracting Parties. & /en 2 2. The Joint Committee shall be co-chaired by a representative of the Union and a representative of Switzerland. 3. The Joint Committee shall: (a) ensure the proper functioning and the effective administration and application of this Agreement; (b) provide a forum for mutual consultation and a continuous exchange of information between the Contracting Parties, in particular with a view to finding a solution to any difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement in accordance with Article 10 of the Institutional Protocol to this Agreement; (c) make recommendations to the Contracting Parties in matters pertaining to this Agreement; (d) adopt decisions where provided for in this Agreement; and (e) exercise any other competence granted to it in this Agreement. 4. In the event of an amendment to Articles 1 to 6, 10 to 15, 17 or 18 of the Protocol (No 7) on the privileges and immunities of the European Union, annexed to the Treaty on the Functioning of the European Union (hereinafter referred to as 'Protocol (No 7)'), the Joint Committee shall amend Annex A to the Annex accordingly. & /en 3  5. The Joint Committee shall act by consensus. Decisions shall be binding on the Contracting Parties, which shall take all necessary measures to implement them. 6. The Joint Committee shall meet at least once a year, in Brussels and Bern alternately, unless the co-chairs decide otherwise. It shall also meet at the request of either Contracting Party. The co-chairs may agree that a meeting of the Joint Committee be held by videoconference or teleconference. 7. The Joint Committee shall adopt its rules of procedure and update them as necessary. 8. The Joint Committee may decide to set up any working party or group of experts that can assist it in carrying out its duties."; (e) the following article is inserted: "ARTICLE 28a 1. Nothing in this Agreement shall be construed as requiring a Party to make available classified information, except where this is provided for in a legal act of the Union integrated into the Annex of this Agreement. 2. Classified information or material provided by, or exchanged between, the Contracting Parties under this Agreement shall be handled and protected in compliance with the Agreement between the European Union and the Swiss Confederation on the security procedures for the exchange of classified information, done at Brussels on 28 April 2008, and any security arrangement implementing it. & /en 4  3. The Joint Committee shall adopt, by means of a decision, handling instructions to ensure the protection of sensitive non-classified information exchanged between the Contracting Parties."; (f) Article 34 is replaced by the following: "ARTICLE 34 This Agreement shall apply, of the one part, to the territory in which the Treaty on European Union and the Treaty on the Functioning of the European Union (hereinafter referred to as 'TFEU') apply and under the conditions laid down in those Treaties, and, of the other part, to the territory of Switzerland.". 2. The Annex to the Agreement is amended as follows: (a) the text below the heading "ANNEX" and above the subheading "1. Aviation liberalisation and other civil aviation rules" is replaced by the following: "SECTION A – Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland. This shall be applied in full respect for the Institutional Protocol to this Agreement. & /en 5  – Without prejudice to Article 15 of this Agreement, the term 'Community air carrier' as referred to in the legal acts of the Union integrated into this Annex shall include an air carrier which is licensed and has its principal place of business and, if any, its registered office in Switzerland in accordance with the provisions of Regulation (EC) No 1008/2008. Any reference to Council Regulation (EEC) No 2407/92 shall be understood to be a reference to Regulation (EC) No 1008/2008. – Any reference in legal acts of the Union integrated into this Annex to Articles 81 and 82 of the Treaty or to Articles 101 and 102 TFEU shall be understood as a reference to Articles 8 and 9 of this Agreement. SECTION B"; (b) in section 2 (Competition rules), in the entry concerning Council Regulation (EC) No 139/2004, the introductory wording "With respect to Article 4(5) of the Merger Regulation the following shall apply between the European Community and Switzerland:" is replaced by "With respect to Article 4(5) of the Merger Regulation, the following shall apply:"; (c) in section 3 (Aviation safety), the entry concerning Regulation (EU) 2018/1139 is amended as follows: (i) the following paragraph is deleted: "Notwithstanding the horizontal adaptation provided for in the second indent of the Annex to the Agreement between the European Community and the Swiss Confederation on Air Transport, the references to the 'Member States' made in the provisions of Regulation (EU) No 182/2011 mentioned in Article 127 of Regulation (EU) 2018/1139 shall not be understood to apply to Switzerland."; & /en 6  (ii) point (c) is replaced by the following: "(c) In Article 96, the following paragraph is added: 'Switzerland shall grant to the Agency and its staff, within the framework of their official functions for the Agency, the privileges and immunities provided for in Annex A, which are based on Articles 1 to 6, 10 to 15, 17 and 18 of Protocol (No 7). References to the corresponding articles of that Protocol are indicated between brackets for information.'."; (d) in section 3 (Aviation safety), the entry concerning Commission Delegated Regulation (EU) 2019/945, in the first paragraph the words "the second indent of the Annex" is replaced by "the first indent of Section A of the Annex"; (e) in section 3 (Aviation safety), the entry concerning Commission Implementing Regulation (EU) 2019/947, in the first paragraph the words "the second indent of the Annex" is replaced by "the first indent of Section A of the Annex"; (f) in section 5 (Air traffic management), in the entry concerning Regulation (EC) No 549/2004, the following paragraph is deleted: "Notwithstanding the horizontal adjustment referred to in the second indent of the Annex to the Agreement between the European Community and the Swiss Confederation on Air Transport, the references to the 'Member States' made in Article 5 of Regulation (EC) No 549/2004 or in the provisions of Decision 1999/468/EC mentioned in that provision shall not be understood to apply to Switzerland."; & /en 7 (g) in section 9 (Annexes), point A is replaced by the following: "A: Privileges and immunities"; (h) Annex A to the Annex and the Appendix to Annex A are replaced by the text set out in the Appendix to this Protocol. ARTICLE 2 Entry into force 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; & /en 8 (d) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (f) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (i) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; & /en 9 (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: “For the European Union” and “For the Swiss Confederation”) & /en 10  Appendix "ANNEX A Privileges and immunities ARTICLE 1 (corresponding to Article 1 of Protocol (No 7)) The premises and buildings of the Agency shall be inviolable. They shall be exempt from search, requisition, confiscation or expropriation. The property and assets of the Agency shall not be the subject of any administrative or legal measure of constraint without the authorisation of the Court of Justice of the European Union. ARTICLE 2 (corresponding to Article 2 of Protocol (No 7)) The archives of the Agency shall be inviolable. & /en  ARTICLE 3 (corresponding to Articles 3 and 4 of Protocol (No 7)) 1. The Agency, its assets, revenues and other property shall be exempt from all direct taxes. 2. Goods and services exported to the Agency for its official use from Switzerland or provided to the Agency in Switzerland shall not be subject to any indirect duties and taxes. 3. Exemption from VAT shall be granted if the actual purchase price of the goods and services mentioned in the invoice or corresponding document totals at least one hundred Swiss francs (inclusive of tax).The Agency shall be exempt from all customs duties, prohibitions and restrictions on imports and exports in respect of articles intended for its official use; articles so imported shall not be disposed of, whether or not in return for payment, in Switzerland, except under conditions approved by the government of Switzerland. 4. The exemption from VAT, excise duty and any other indirect taxes shall be granted by way of remit on presentation to the goods or services supplier of the Swiss forms provided for the purpose. 5. No exemption shall be granted in respect of taxes and dues, which amount merely to charges for public utility services. & /en  ARTICLE 4 (corresponding to Article 5 of Protocol (No 7)) For its official communications and the transmission of all its documents, the Agency shall enjoy in Switzerland the treatment accorded by that State to diplomatic missions. Official correspondence and other official communications of the Agency shall not be subject to censorship. ARTICLE 5 (corresponding to Article 6 of Protocol (No 7)) The laissez-passer of the Union issued to members and servants of the Agency shall be recognised as valid travel documents within the territory of Switzerland. Those laissez-passer shall be issued to officials and other servants under conditions laid down in the Staff Regulations of Officials and the Conditions of Employment of other servants of the Union (Regulation No 31 (EEC), 11 (EAEC), laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community (OJ 45, 14.6.1962, p. 1385), including any subsequent amendments). & /en  ARTICLE 6 (corresponding to Article 10 of Protocol (No 7)) Representatives of Member States of the Union taking part in the work of the Agency, their advisers and technical experts shall, in the performance of their duties and during their travel to and from the place of meeting in Switzerland, enjoy the customary privileges, immunities and facilities. ARTICLE 7 (corresponding to Article 11 of Protocol (No 7)) In the territory of Switzerland and whatever their nationality, officials and other servants of the Agency shall: (a) subject to the provisions of the Treaties relating, on the one hand, to the rules on the liability of officials and other servants towards the Union and, on the other hand, to the jurisdiction of the Court of Justice of the European Union in disputes between the Union and its officials and other servants, be immune from legal proceedings in respect of acts performed by them in their official capacity, including their words spoken or written. They shall continue to enjoy this immunity after they have ceased to hold office; (b) together with their spouses and dependent members of their families, not be subject to immigration restrictions or to formalities for the registration of aliens; & /en (c) in respect of currency or exchange regulations, be accorded the same facilities as are customarily accorded to officials of international organisations; (d) enjoy the right to import free of duty their furniture and effects at the time of first taking up their post in Switzerland, and the right to re-export free of duty their furniture and effects, on termination of their duties in that country, subject in either case to the conditions considered to be necessary by the government of Switzerland; (e) have the right to import free of duty a motor car for their personal use, acquired either in the country of their last residence or in the country of which they are nationals on the terms ruling in the home market in that country, and to re-export it free of duty, subject in either case to the conditions considered to be necessary by the government of Switzerland. ARTICLE 8 (corresponding to Article 12 of Protocol (No 7)) Officials and other servants of the Agency shall be liable to a tax for the benefit of the Union on salaries, wages and emoluments paid to them by the Agency, in accordance with the conditions and procedure laid down by Union law. They shall be exempt from Swiss federal, cantonal and communal taxes on salaries, wages and emoluments paid by the Agency. & /en  ARTICLE 9 (corresponding to Article 13 of Protocol (No 7)) In the application of income tax, wealth tax and death duties and in the application of conventions on the avoidance of double taxation concluded between Switzerland and Member States of the Union, officials and other servants of the Agency who, solely by reason of the performance of their duties in the service of the Agency, establish their residence in the territory of Switzerland for tax purposes at the time of entering the service of the Agency, shall be considered, both in Switzerland and in the country of domicile for tax purposes, as having maintained their domicile in the latter country provided that it is a Member State of the Union. This provision shall also apply to a spouse, to the extent that the latter is not separately engaged in a gainful occupation, and to children dependent on and in the care of the persons referred to in this Article. Movable property belonging to persons referred to in the first paragraph and situated in Switzerland shall be exempt from death duties in Switzerland; such property shall, for the assessment of such duty, be considered as being in the country of domicile for tax purposes, subject to the rights of third countries and to the possible application of provisions of international conventions on double taxation. Any domicile acquired solely by reason of the performance of duties in the service of other international organisations shall not be taken into consideration in applying the provisions of this Article. & /en  ARTICLE 10 (corresponding to Article 14 of Protocol (No 7)) Union law shall lay down the scheme of social security benefits for officials and other servants of the Union. Officials and other servants of the Agency shall therefore not be obliged to be members of the Swiss social security system provided they are already covered by the scheme of social security benefits for officials and other servants of the Union. Members of the family of staff members of the Agency forming part of their household shall be covered by the scheme of social security benefits for officials and other servants of the Union provided that they are not employed by another employer than the Agency and provided that they do not receive social security benefits from a Member State of the Union or from Switzerland. ARTICLE 11 (corresponding to Article 15 of Protocol (No 7)) Union law shall determine the categories of officials and other servants of the Agency to whom the provisions of Articles 7, 8, and 9 shall apply, in whole or in part. The names, grades and addresses of officials and other servants included in such categories shall be communicated periodically to Switzerland. & /en  ARTICLE 12 (corresponding to Article 17 of Protocol (No 7)) Privileges, immunities and facilities shall be accorded to officials and other servants of the Agency solely in the interests of the Agency. The Agency shall be required to waive the immunity accorded to an official or other servants wherever that Agency considers that the waiver of such immunity is not contrary to the interests of the Agency. ARTICLE 13 (corresponding to Article 18 of Protocol (No 7)) The Agency shall, for the purpose of applying this Annex A, cooperate with the responsible authorities of Switzerland or of the Member States of the Union concerned.". ________________ & /en  INSTITUTIONAL PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON AIR TRANSPORT & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", hereinafter referred to as the "Contracting Parties"; WHEREAS the Union and Switzerland are bound by numerous bilateral agreements covering various fields, providing for specific rights and obligations similar, in certain respects, to those provided for within the Union; RECALLING that the purpose of those bilateral agreements is to increase Europe's competitiveness and to create closer economic ties between the Contracting Parties, based on equality, reciprocity and the general balance of their advantages, rights and obligations; RESOLVED to strengthen and deepen Switzerland's participation in the internal market of the Union, on the basis of the same rules as those that apply to the internal market, while preserving their independence and that of their institutions and, as regards Switzerland, respect for the principles stemming from direct democracy, federalism and the sectoral nature of its participation in the internal market; REAFFIRMING that the competence of the Swiss Federal Supreme Court and all other Swiss courts as well as that of the Member States' courts and of the Court of Justice of the European Union to interpret the Agreement in individual cases is preserved; & /en 1 CONSCIOUS of ensuring uniformity in the fields related to the internal market in which Switzerland participates, both current and future, HAVE AGREED AS FOLLOWS: & /en 2  CHAPTER 1 GENERAL PROVISIONS ARTICLE 1 Objectives 1. The objective of this Protocol is to guarantee for the Contracting Parties, and for economic operators and individuals, greater legal certainty, equal treatment and a level playing field in the field related to the internal market falling under the scope of the Agreement between the European Community and the Swiss Confederation on air transport, done at Luxembourg on 21 June 1999 (hereinafter referred to as the "Agreement"). 2. To this end, this Protocol provides new institutional solutions facilitating a continuous and balanced strengthening of economic relations between the Contracting Parties. Taking account of the principles of international law, this Protocol lays down, in particular, institutional solutions for the Agreement which are common to the bilateral agreements concluded or to be concluded in the fields related to the internal market in which Switzerland participates, without changing the scope or the objectives of the Agreement, notably: (a) the procedure for aligning the Agreement with legal acts of the Union relevant to the Agreement; (b) the uniform interpretation and application of the Agreement and of the legal acts of the Union to which reference is made in the Agreement; & /en 3 (c) the surveillance and application of the Agreement; and (d) the settlement of disputes in the context of the Agreement. ARTICLE 2 Relation to the Agreement 1. This Protocol, its Annex and its Appendix shall form an integral part of the Agreement. 2. The provisions of the Agreement repealed by this Protocol are listed below: (a) Article 1(2); (b) Article 17; (c) Article 18(1); (d) Article 22; (e) Article 23; (f) Article 29; (g) Article 30(2); & /en 4 (h) Article 31; and (i) Article 35(2). 3. References to the "European Community" or to the "Community" in the Agreement shall be construed as references to the Union. ARTICLE 3 Bilateral agreements in the fields related to the internal market in which Switzerland participates 1. Existing and future bilateral agreements between the Union and Switzerland in the fields related to the internal market in which Switzerland participates shall be considered as a coherent whole which ensures a balance of rights and obligations between the Union and Switzerland. 2. The Agreement constitutes a bilateral agreement in a field related to the internal market in which Switzerland participates. & /en 5  CHAPTER 2 ALIGNMENT OF THE AGREEMENT WITH LEGAL ACTS OF THE UNION ARTICLE 4 Participation in the drafting of legal acts of the Union ("decision shaping") 1. When drafting a proposal for a legal act of the Union in accordance with the Treaty on the Functioning of the European Union (hereinafter referred to as "TFEU") in the field covered by the Agreement, the European Commission (hereinafter referred to as the "Commission") shall inform Switzerland thereof and shall informally consult Switzerland's experts in the same way that it asks for the views of experts from the Member States of the Union for the drafting of its proposals. At the request of either Contracting Party, a preliminary exchange of views shall take place within the Joint Committee. The Contracting Parties shall consult each other again, at the request of either of them, within the Joint Committee at important moments of the phase preceding the adoption of the legal act by the Union, in a continuous process of information and consultation. 2. When preparing, in accordance with the TFEU, delegated acts concerning basic acts of Union law in the field covered by the Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts and shall consult Switzerland's experts on the same basis as it consults the experts of the Member States of the Union. & /en 6 3. When preparing, in accordance with the TFEU, implementing acts concerning basic acts of Union law in the field covered by the Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts to be submitted later on to the committees assisting the Commission in the exercise of its implementing powers and shall consult Switzerland's experts on the same basis as it consults the experts from the Member States of the Union. 4. Switzerland's experts shall be involved in the work of committees not covered by paragraphs 2 and 3 where this is required for the proper functioning of the Agreement. A list of those committees and, where appropriate, of other committees with similar characteristics, shall be drawn up and updated by the Joint Committee. 5. This Article shall not apply with regard to legal acts of the Union or provisions thereof falling within the scope of an exception referred to in Article 5(7). ARTICLE 5 Integration of legal acts of the Union 1. In order to guarantee legal certainty and the homogeneity of the law in the field related to the internal market in which Switzerland participates by virtue of the Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the field covered by the Agreement are integrated into the Agreement as quickly as possible after their adoption. 2. Legal acts of the Union integrated into the Agreement in accordance with paragraph 4 shall be, by their integration into the Agreement, part of the legal order of Switzerland subject, as the case may be, to the adaptations decided upon by the Joint Committee. & /en 7 3. When it adopts a legal act in the field covered by the Agreement, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. 4. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend the Annex to the Agreement, including the necessary adaptations. 5. Without prejudice to paragraphs 1 and 2, if necessary in order to ensure coherence of the Agreement with its Annex as amended pursuant to paragraph 4, the Joint Committee may propose, for approval by the Contracting Parties according to their internal procedures, the revision of the Agreement. 6. References in the Agreement to legal acts of the Union that are no longer in force shall be construed as references to the repealing legal act of the Union as integrated into the Annex to the Agreement as from the entry into force of the Joint Committee's decision on the corresponding amendment of the Annex to the Agreement pursuant to paragraph 4, unless otherwise provided in that decision. 7. The obligation set out in paragraph 1 shall not apply to legal acts of the Union or provisions thereof falling within the scope of an exception. The Agreement does not contain an exception. 8. Subject to Article 6, decisions of the Joint Committee pursuant to paragraph 4 shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. 9. The Contracting Parties shall cooperate in good faith throughout the procedure set out in this Article in order to facilitate decision-making. & /en 8  ARTICLE 6 Fulfilment of constitutional obligations by Switzerland 1. During the exchange of views referred to in Article 5(3), Switzerland shall inform the Union whether a decision as referred to in Article 5(4) requires the fulfilment of constitutional obligations by Switzerland in order to become binding. 2. Where the decision referred to in Article 5(4) requires Switzerland to fulfil constitutional obligations in order to become binding, Switzerland shall have a time limit of two years maximum from the date of the information provided for in paragraph 1, except where a referendum procedure is launched, in which case this period shall be extended by one year. 3. Pending the information by Switzerland that it has fulfilled its constitutional obligations, the Contracting Parties shall provisionally apply the decision referred to in Article 5(4), unless Switzerland informs the Union that the provisional application of the decision is not possible and provides the reasons for this. Under no circumstances can the provisional application occur before the date on which the corresponding legal act of the Union becomes applicable in the Union. 4. Switzerland shall notify the Union without delay through the Joint Committee once it has fulfilled the constitutional obligations referred to in paragraph 1. 5. The decision shall enter into force on the day on which the notification provided for in paragraph 4 is delivered, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. & /en 9  CHAPTER 3 INTERPRETATION AND APPLICATION OF THE AGREEMENT ARTICLE 7 Uniform interpretation principle 1. For the purpose of achieving the objectives set out in Article 1 and in accordance with the principles of public international law, the bilateral agreements in the fields related to the internal market in which Switzerland participates and the legal acts of the Union to which reference is made in such agreements shall be uniformly interpreted and applied in the fields related to the internal market in which Switzerland participates. 2. The legal acts of the Union to which reference is made in the Agreement and, to the extent that their application involves concepts of Union law, the provisions of the Agreement shall be interpreted and applied in accordance with the case law of the Court of Justice of the European Union, prior or subsequent to the signature of the Agreement. & /en 10  ARTICLE 8 Effective and harmonious application principle 1. The Commission and the competent Swiss authorities shall cooperate and assist each other in ensuring the surveillance of the application of the Agreement. They may exchange information on the activities of surveillance of the application of the Agreement. They may exchange views and discuss issues of mutual interest. 2. Each Contracting Party shall take appropriate measures to ensure the effective and harmonious application of the Agreement on its territory. 3. The surveillance of the application of the Agreement shall be carried out jointly by the Contracting Parties within the Joint Committee. If the Commission or the competent Swiss authorities become aware of a case of incorrect application, the matter may be referred to the Joint Committee with a view to finding an acceptable solution. 4. The Commission and the competent Swiss authorities respectively shall monitor the application of the Agreement by the other Contracting Party. The procedure provided for in Article 10 applies. To the extent that certain surveillance competences of the institutions of the Union as regards one Contracting Party are necessary to ensure the effective and harmonious application of the Agreement, such as investigation and decision powers, the Agreement must foresee them specifically. & /en 11  ARTICLE 9 Exclusivity principle The Contracting Parties undertake not to submit a dispute regarding the interpretation or application of the Agreement and of the legal acts of the Union to which reference is made in the Agreement or, where applicable, regarding the conformity with the Agreement of a decision adopted by the Commission on the basis of the Agreement to any method of settlement other than those provided for in this Protocol. ARTICLE 10 Procedure in the event of difficulty of interpretation or application 1. In the event of difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement, the Contracting Parties shall consult each other within the Joint Committee in order to find a mutually acceptable solution. To this end, all useful elements of information shall be provided to the Joint Committee to enable it to make a detailed examination of the situation. The Joint Committee shall examine all possibilities that allow the proper functioning of the Agreement to be maintained. 2. If the Joint Committee is not able to find a solution to the difficulty referred to in paragraph 1 within three months of the date on which the difficulty was submitted to it, either of the Contracting Parties may request that an arbitral tribunal settle the dispute in accordance with the rules laid down in the Appendix. & /en 12 3. Where the dispute raises a question concerning the interpretation or application of a provision referred to in Article 7(2), and if the interpretation of that provision is relevant to the settlement of the dispute and necessary to enable it to decide, the arbitral tribunal shall refer that question to the Court of Justice of the European Union. Where the dispute raises a question concerning the interpretation or application of a provision that falls within the scope of an exception from the dynamic alignment obligation referred to in Article 5(7), and where the dispute does not involve the interpretation or application of concepts of Union law, the arbitral tribunal shall settle the dispute without referral to the Court of Justice of the European Union. 4. Where the arbitral tribunal refers a question to the Court of Justice of the European Union pursuant to paragraph 3: (a) the ruling of the Court of Justice of the European Union shall be binding on the arbitral tribunal; and (b) Switzerland shall enjoy the same rights as the Member States and the institutions of the Union and shall be subject to the same procedures before the Court of Justice of the European Union, mutatis mutandis. 5. Each Contracting Party shall take all measures necessary to comply in good faith with the arbitral tribunal's decision. The Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement shall inform the other Contracting Party through the Joint Committee of the measures it has taken to comply with the arbitral tribunal's decision. & /en 13  ARTICLE 11 Compensatory measures 1. If the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement does not inform the other Contracting Party, within a reasonable time period set in accordance with Article IV.2(6) of the Appendix, of the measures it has taken to comply with the arbitral tribunal's decision, or if the other Contracting Party considers that the measures communicated do not comply with the arbitral tribunal's decision, this other Contracting Party may adopt proportionate compensatory measures within the framework of the Agreement or of any other bilateral agreement in the fields related to the internal market in which Switzerland participates (hereinafter referred to as "compensatory measures") in order to remedy a potential imbalance. It shall notify the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement of the compensatory measures, which shall be specified in the notification. Those compensatory measures shall take effect three months from the date of this notification. 2. If, within one month from the date of the notification of the intended compensatory measures, the Joint Committee has not taken a decision to suspend, amend or annul those compensatory measures, either Contracting Party may submit to arbitration the question of the proportionality of those compensatory measures, in accordance with the Appendix. 3. The arbitral tribunal shall decide within the time limits laid down in Article III.8(4) of the Appendix. 4. Compensatory measures shall not have retroactive effect. In particular, the rights and obligations already acquired by individuals and economic operators before the compensatory measures take effect shall be preserved. & /en 14  ARTICLE 12 Cooperation between jurisdictions 1. To promote the homogeneous interpretation, the Swiss Federal Supreme Court and the Court of Justice of the European Union shall agree on a dialogue and the modalities thereof. 2. Switzerland shall have the right to lodge statements of case or written observations with the Court of Justice of the European Union where a court of a Member State of the Union refers to the Court of Justice of the European Union a question concerning the interpretation of the Agreement or of a provision of a legal act of the Union referred to therein for a preliminary ruling. CHAPTER 4 OTHER PROVISIONS ARTICLE 13 Financial contribution 1. Switzerland shall contribute to the financing of the activities of the Union agencies, information systems and other activities listed in Article 1 of the Annex to which it has access, in accordance with this Article and the Annex. The Joint Committee may adopt a decision to amend the Annex. & /en 15 2. The Union may suspend the participation of Switzerland in the activities referred to in paragraph 1 of this Article at any time if Switzerland fails to meet the payment deadline in accordance with the terms of payment set out in Article 2 of the Annex. Where Switzerland fails to meet a payment deadline, the Union shall send Switzerland a formal letter of reminder. Where no full payment is made within 30 days of the date of reception of that formal letter of reminder, the Union may suspend the participation of Switzerland in the relevant activity. 3. The financial contribution shall take the form of the sum of: (a) an operational contribution; and (b) a participation fee. 4. The financial contribution shall take the form of an annual financial contribution and shall be due at the dates specified in the calls for funds issued by the Commission. 5. The operational contribution shall be based on a contribution key defined as the ratio of the gross domestic product (hereinafter referred to as "GDP") of Switzerland at market prices to the GDP of the Union at market prices. & /en 16 For that purpose, the figures for GDP at market prices of the Contracting Parties shall be the latest such figures available as of 1 January of the year in which the annual payment is made as provided by the Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics, done at Luxembourg on 26 October 2004. If that agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development. 6. The operational contribution for each Union agency shall be calculated by applying the contribution key to its annual voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question, taking into account for each agency any adjusted operational contribution as defined in Article 1 of the Annex. The operational contribution for the information systems and other activities shall be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget, such as work programmes or contracts. All reference amounts shall be based on commitment appropriations. 7. The annual participation fee shall be 4 % of the annual operational contribution as calculated in accordance with paragraphs 5 and 6. 8. The Commission shall provide Switzerland with adequate information in relation to the calculation of its financial contribution. That information shall be provided having due regard to the Union's confidentiality and data protection rules. 9. All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received, shall be made in euro. & /en 17 10. Where the entry into force of this Protocol does not coincide with the beginning of a calendar year, Switzerland's operational contribution for the year in question shall be subject to adjustment, according to the methodology and terms of payment defined in Article 5 of the Annex. 11. Detailed provisions for the application of this Article are set out in the Annex. 12. Three years following the entry into force of this Protocol, and every three years subsequently, the Joint Committee shall review the conditions of Switzerland's participation as defined in Article 1 of the Annex and, where appropriate, adapt them. ARTICLE 14 References to territories Whenever the legal acts of the Union integrated into the Agreement contain references to the territory of the "European Union", of the "Union", of the " common market" or of the "internal market", the references shall for the purposes of the Agreement be understood to be references to the territories referred to in Article 34 of the Agreement. ARTICLE 15 References to nationals of Member States of the Union Whenever the legal acts of the Union integrated into the Agreement contain references to nationals of Member States of the Union, the references shall, for the purposes of the Agreement, be understood to be references to nationals of the Member States of the Union and of Switzerland. & /en 18  ARTICLE 16 Entry into force and implementation of the legal acts of the Union Provisions of the legal acts of the Union integrated into the Agreement on their entry into force or implementation are not relevant for the purposes of the Agreement. The time limits and dates for Switzerland for bringing into force and implementing the decisions integrating legal acts of the Union into the Agreement follow from Article 5(8) and Article 6(5), as well as from provisions on transitional arrangements. ARTICLE 17 Addressees of the legal acts of the Union Provisions of the legal acts of the Union integrated into the Agreement indicating that they are addressed to the Member States of the Union are not relevant for the purposes of the Agreement. & /en 19  CHAPTER 5 FINAL PROVISIONS ARTICLE 18 Implementation 1. The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from the Agreement and shall refrain from taking any measure which could jeopardise the achievement of its objectives. 2. The Contracting Parties shall take all measures necessary to guarantee the intended result of the legal acts of the Union to which reference is made in the Agreement and shall refrain from taking any measure that could jeopardise the achievement of their aims. ARTICLE 19 Entry into force 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. & /en 20 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (f) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; & /en 21 (i) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. ARTICLE 20 Amendment and termination 1. This Protocol may be amended at any time by mutual agreement of the Contracting Parties. 2. Where the Agreement is terminated in accordance with Article 36(3) of the Agreement, this Protocol shall cease to be in force on the date referred to in Article 36(4) of the Agreement. & /en 22 3. Where the Agreement ceases to be in force, the rights and obligations that individuals and economic operators have already acquired by virtue of the Agreement before the date of the cessation of the Agreement shall be preserved. The Contracting Parties shall settle by mutual agreement what action is to be taken in respect of rights in the process of being acquired. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: “For the European Union” and “For the Swiss Confederation”) & /en 23  ANNEX ANNEX ON THE APPLICATION OF ARTICLE 13 OF THE PROTOCOL ARTICLE 1 List of the activities of the Union agencies, information systems and other activities to which Switzerland is to contribute financially Switzerland shall contribute financially to the following: (a) agencies: none. (b) information systems: none. (c) other activities: none. & /en 1  ARTICLE 2 Terms of payment 1. Payments due pursuant to Article 13 of the Protocol shall be made in accordance with this Article. 2. When issuing the call for funds of the financial year, the Commission shall communicate the following information to Switzerland: (a) the amount of the operational contribution; and (b) the amount of the participation fee. 3. The Commission shall communicate to Switzerland, as soon as possible and at the latest on 16 April of each financial year, the following information in relation to Switzerland's participation: (a) the amounts in commitment appropriations of the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question for each Union agency, taking into account for each agency any adjusted operational contribution as defined in Article 1, and the amounts in commitment appropriations in relation to the Union voted budget of the year in question for the relevant budget of the information systems and other activities, covering the participation of Switzerland in accordance with Article 1; (b) the amount of the participation fee referred to in Article 13(7) of the Protocol; and & /en 2 (c) as regards agencies, in year N+1, the amounts in budgetary commitments made on commitment appropriations authorised in year N on the relevant Union budget subsidy line(s) in relation to the annual Union budget inscribed on the relevant Union budget subsidy line(s) of year N. 4. On the basis of its draft budget, the Commission shall provide an estimate of information under points (a) and (b) of paragraph 3 as soon as possible, and at the latest, by 1 September of the financial year. 5. The Commission shall issue to Switzerland, at the latest on 16 April and, if applicable to the relevant agency, information system or other activity, at the earliest on 22 October and at the latest on 31 October of each financial year, a call for funds that corresponds to the contribution of Switzerland under the Agreement for each of the agencies, information systems and other activities in which Switzerland participates. 6. The call(s) for funds referred to in paragraph 5 shall be structured in instalments as follows: (a) the first instalment of each year, in relation to the call for funds to be issued by 16 April, shall correspond to an amount up to the equivalent of the estimate of the annual financial contribution of the agency, information system or other activity in question referred to in paragraph 4; Switzerland shall pay the amount indicated in this call for funds at the latest 60 days after the call for funds is issued. & /en 3 (b) where applicable, the second instalment of the year, in relation to the call for funds to be issued at the earliest on 22 October and at the latest on 31 October, shall correspond to the difference between the amount referred to in paragraph 4 and the amount referred to in paragraph 5, where the amount referred to in paragraph 5 is higher. Switzerland shall pay the amount indicated in this call for funds at the latest by 21 December. For each call for funds, Switzerland may make separate payments for each agency, information system or other activity. 7. For the first year of implementation of the Protocol, the Commission shall issue a single call for funds, within 90 days of the entry into force of the Protocol. Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after the call for funds is issued. 8. Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount as from the due date until the day on which that outstanding amount is paid in full. The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first day of the month in which the due date falls, or 0 %, whichever is higher, plus 3,5 percentage points. & /en 4  ARTICLE 3 Adjustment of Switzerland's financial contribution to Union agencies in the light of implementation The adjustment of Switzerland's financial contribution to Union agencies shall be made in year N+1, when the initial operational contribution shall be adjusted upwards or downwards by the difference between the initial operational contribution and an adjusted contribution calculated by applying the contribution key of year N to the amount of budgetary commitments made on commitment appropriations authorised in year N under the relevant Union subsidy budget line(s). Where applicable, the difference shall take into account, for each agency, the percentage-based adjusted operational contribution as defined in Article 1. & /en 5  ARTICLE 4 Existing arrangements Article 13 of the Protocol and this Annex shall not apply to specific arrangements between Switzerland and the Union which include financial contributions by Switzerland. The agencies, information systems and other activities covered by such arrangements are the following: European Union Aviation Safety Agency, established by Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No 2111/2005, (EC) No 1008/2008, (EU) No 996/2010, (EU) No 376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No 552/2004 and (EC) No 216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No 3922/91 (OJ L 212, 22.8.2018, p. 1), as applicable according to the Annex of the Agreement. ARTICLE 5 Transitional arrangements In the event that the date of entry into force of the Protocol is not 1 January, this Article shall apply by way of derogation from Article 2. & /en 6 For the first year of implementation of the Protocol, in relation to the operational contribution due for the year in question applicable to the relevant agency, information system or other activity, as established in accordance with Article 13 of the Protocol and Articles 1 to 3 of this Annex, the operational contribution shall be reduced on a pro rata temporis basis by multiplying the amount of the annual operational contribution due to the ratio of the following: (a) the number of calendar days from the date of entry into force of the Protocol until 31 December of the year in question; and (b) the total number of calendar days of the year in question. & /en 7  Appendix APPENDIX ON THE ARBITRAL TRIBUNAL CHAPTER I PRELIMINARY PROVISIONS ARTICLE I.1 Scope If one of the Contracting Parties (hereinafter referred to as "parties") submits a dispute for arbitration in accordance with Articles 10(2) or 11(2) of the Protocol, the rules set out in this Appendix shall apply. ARTICLE I.2 Registry and secretarial services The International Bureau of the Permanent Court of Arbitration at the Hague (hereinafter referred to as "International Bureau") shall fulfil the functions of registry and provide the necessary secretarial services. & /en 8  ARTICLE I.3 Notices and calculation of time limits 1. Notices, including communications or proposals, may be sent by any means of communication that certifies their transmission, or enables them to be certified. 2. Such notices may be sent electronically only if an address has been designated or authorised by a party specifically for this purpose. 3. Such notices served on the parties shall be sent, for Switzerland, to Switzerland's Europe Division of the Federal Department of Foreign Affairs and, for the Union, to the Commission's Legal Service. 4. Any time limit laid down in this Appendix shall run from the day after an event occurs or an action takes place. If the last day for delivery of a document falls on a non-working day of the institutions of the Union or of the government of Switzerland, the time period for the delivery of the document shall end on the first following working day. Non-working days that fall within the time period shall be counted. ARTICLE I.4 Notice of arbitration 1. The party taking the initiative to use arbitration (hereinafter referred to as "applicant") shall send to the other party (hereinafter referred to as "defendant") and to the International Bureau a notice of arbitration. & /en 9 2. Arbitration proceedings shall be deemed to commence on the day after that on which the notice of arbitration is received by the defendant. 3. The notice of arbitration shall include the following information: (a) the demand that the dispute be referred to arbitration; (b) the names and contact details of the parties; (c) the name and address of the applicant's agent(s); (d) the legal basis of the proceedings (Article 10(2) or Article 11(2) of the Protocol) and: (i) in the cases referred to in Article 10(2) of the Protocol, the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 10(1) of the Protocol; and (ii) in the cases referred to in Article 11(2) of the Protocol, the decision of the arbitral tribunal, any implementation measures mentioned in Article 10(5) of the Protocol and the disputed compensatory measures; (e) the designation of any rule causing the dispute or related to it; (f) a brief description of the dispute; and (g) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. & /en 10 4. In the cases referred to in Article 10(3) of the Protocol, the notice of arbitration may also contain information concerning the need for a referral to the Court of Justice of the European Union. 5. Any claims on the sufficiency of the notice of arbitration shall not prevent the constitution of the arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. ARTICLE I.5 Response to the notice of arbitration 1. Within 60 days of receiving the notice of arbitration, the defendant shall send a response to the notice of arbitration to the applicant and the International Bureau, which shall include the following information: (a) the names and contact details of the parties; (b) the name and address of the defendant's agent(s); (c) a response to the information given in the notice of arbitration in accordance with points (d) to (f) of Article I.4(3); and (d) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. & /en 11 2. In the cases referred to in Article 10(3) of the Protocol, the response to the notice of arbitration may also contain a response to the information given in the notice of arbitration in accordance with Article I.4(4) of this Appendix and information concerning the need for a referral to the Court of Justice of the European Union. 3. The lack of, or an incomplete or late, response from the defendant to the notice of arbitration shall not prevent the constitution of an arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. 4. If the defendant requests that the arbitral tribunal consist of five arbitrators in its response to the notice of arbitration, the applicant shall designate an additional arbitrator within 30 days of receipt of the response to the notice of arbitration. ARTICLE I.6 Representation and assistance 1. The parties shall be represented before the arbitral tribunal by one or more agents. The agents may be assisted by advisers or lawyers. 2. Any change to the agents or their addresses shall be notified to the other party, the International Bureau and the arbitral tribunal. The arbitral tribunal may, at any time, on its own initiative or at the request of a party, request evidence of the powers conferred on the agents of the parties. & /en 12  CHAPTER II COMPOSITION OF THE ARBITRAL TRIBUNAL ARTICLE II.1 Number of arbitrators The arbitral tribunal shall be composed of three arbitrators. If the applicant in its notice of arbitration or the defendant in its response to the notice of arbitration so request, the arbitral tribunal shall be composed of five arbitrators. ARTICLE II.2 Appointment of arbitrators 1. If three arbitrators are to be appointed, each of the parties shall designate one of them. The two arbitrators appointed by the parties shall select the third arbitrator, who shall be the chair of the arbitral tribunal. 2. If five arbitrators are to be appointed, each of the parties shall designate two of them. The four arbitrators appointed by the parties shall select the fifth arbitrator, who shall be the chair of the arbitral tribunal. & /en 13 3. If, within 30 days of the designation of the last arbitrator appointed by the parties, the arbitrators have not reached agreement on the selection of the chair of the arbitral tribunal, the chair shall be appointed by the Secretary-General of the Permanent Court of Arbitration. 4. To assist in the selection of arbitrators to compose the arbitral tribunal, an indicative list of persons possessing the qualifications referred to in paragraph 6, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement between the European Union and the Swiss Confederation on health, done at […] on […] (hereinafter referred to as "Agreement on health"), the Agreement between the European Community and the Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999 (hereinafter referred to as "Agreement on trade in agricultural products") and the Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union, done at […] on […] (hereinafter referred to as "Agreement on Switzerland's regular financial contribution"), shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. 5. Where a party fails to designate an arbitrator, the Secretary-General of the Permanent Court of Arbitration shall appoint that arbitrator from the list referred to in paragraph 4. In the absence of such a list, the arbitrator shall be appointed by lot by the Secretary-General of the Permanent Court of Arbitration from the individuals who have been formally proposed by one party or both parties for the purposes of paragraph 4. & /en 14 6. The persons constituting the arbitral tribunal shall be highly qualified persons, with or without ties to the parties, whose independence and lack of conflicts of interest is guaranteed, along with a wide range of experience. In particular, they shall have demonstrated expertise in law and the matters covered by this Agreement; they shall not take instructions from either party; and they shall serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute. The chair of the arbitral tribunal shall also have experience in dispute settlement procedures. ARTICLE II.3 Arbitrators' declarations 1. When a person is being considered for appointment as an arbitrator, that person shall report all circumstances likely to give rise to legitimate doubts as to his or her impartiality or independence. From the appointment and throughout the entire arbitration proceedings, an arbitrator shall report such circumstances to the parties and to the other arbitrators without delay, if the arbitrator has not already done so. 2. Any arbitrator may be dismissed if circumstances exist that could give rise to legitimate doubts about his or her impartiality or independence. 3. A party may only request the dismissal of an arbitrator that it has appointed for a reason that becomes known to it after that appointment. 4. If an arbitrator fails to act or if it is impossible de jure or de facto for an arbitrator to fulfil his or her role, the procedure for the dismissal of arbitrators laid down in Article II.4 shall apply. & /en 15  ARTICLE II.4 Dismissal of arbitrators 1. Any party wishing to dismiss an arbitrator shall make a request for dismissal within 30 days of the date on which it is notified of the appointment of that arbitrator or within 30 days of the date on which it becomes aware of the circumstances referred to in Article II.3. 2. The request for dismissal shall be sent to the other party, to the dismissed arbitrator, to the other arbitrators and to the International Bureau. It shall set out the reasons for the request for dismissal. 3. When a request for dismissal has been made, the other party may accept the request for dismissal. The arbitrator in question may also step aside. The acceptance or stepping aside does not imply acknowledgement of the reasons for the request for dismissal. 4. If, within 15 days of the date of the notification of the request for dismissal, the other party does not accept the request for dismissal or the arbitrator in question does not step aside, the party requesting the dismissal may ask the Secretary-General of the Permanent Court of Arbitration to take a decision on the dismissal. 5. Unless the parties agree otherwise, the decision referred to in paragraph 4 shall indicate the reasons for that decision. & /en 16  ARTICLE II.5 Replacement of an arbitrator 1. Subject to paragraph 2 of this Article, if it is necessary to replace an arbitrator during the arbitration proceedings, a replacement shall be appointed or selected in accordance with the procedure laid down in Article II.2 applicable to the appointment or selection of the arbitrator to be replaced. That procedure shall apply even if one party had not exercised its right to appoint or to participate in the appointment of the arbitrator to be replaced. 2. In the event of replacement of an arbitrator, the procedure shall resume at the stage where the replaced arbitrator ceased to perform his or her functions, unless the arbitral tribunal decides otherwise. ARTICLE II.6 Exclusion of liability Except in cases of intentional wrongdoing or gross negligence, the parties renounce, to the maximum extent permitted by the applicable law, any action against the arbitrators for any act or omission related to the arbitration. & /en 17  CHAPTER III ARBITRATION PROCEEDINGS ARTICLE III.1 General provisions 1. The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator has accepted his or her appointment. 2. The arbitral tribunal shall ensure that the parties are treated equally and that, at an appropriate stage of the proceedings, each of them has sufficient possibility to assert their rights and present their case. The arbitral tribunal shall conduct the proceedings in such a way as to avoid delays and unnecessary expenditure and to ensure the dispute between the parties is settled. 3. A hearing shall be organised, unless the arbitral tribunal decides otherwise, having heard the parties. 4. When a party sends a communication to the arbitral tribunal, it shall do so through the International Bureau and shall send a copy to the other party at the same time. The International Bureau shall send a copy of that communication to each of the arbitrators. & /en 18  ARTICLE III.2 Place of arbitration The place of arbitration is The Hague. The arbitral tribunal may, if exceptional circumstances so require, meet at any other place that it considers appropriate for its deliberations. ARTICLE III.3 Language 1. The languages of the proceedings shall be French and English. 2. The arbitral tribunal may order all documents enclosed with the statement of claim or the statement of defence and all further documents produced during the proceedings, submitted in their original language, to be accompanied by a translation in one of the languages of the proceedings. ARTICLE III.4 Statement of claim 1. The applicant shall send its statement of claim in writing to the defendant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The applicant may decide to deem its notice of arbitration referred to in Article I.4 a statement of claim, provided that it also meets the conditions in paragraphs 2 and 3 of this Article. & /en 19 2. The statement of claim shall include the following information: (a) the information set out in points (b) to (f) of Article I.4(3); (b) a statement of facts submitted in support of the claim; and (c) the legal arguments put forward in support of the claim. 3. The statement of claim shall, as far as possible, be accompanied by any documents and other evidence mentioned by the applicant or should refer to them. In the cases referred to in Article 10(3) of the Protocol, the statement of claim shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. ARTICLE III.5 Statement of defence 1. The defendant shall send the statement of defence in writing to the applicant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The defendant may decide to deem the response to the notice of arbitration referred to in Article I.5 a statement of defence, provided that the response to the notice of arbitration also meets the conditions in paragraph 2 of this Article. & /en 20 2. The statement of defence shall respond to the points in the statement of claim indicated in accordance with points (a) to (c) of Article III.4(2) of this Appendix. It shall, as far as possible, be accompanied by any documents and other evidence mentioned by the defendant or should refer to them. In the cases referred to in Article 10(3) of the Protocol, the statement of defence shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. 3. In the statement of defence, or at a later stage in the arbitration proceedings if the arbitral tribunal decides that a delay is justified by circumstances, the defendant may make a counterclaim provided that the arbitral tribunal has jurisdiction in respect of it. 4. Article III.4(2) and (3) shall apply to a counterclaim. ARTICLE III.6 Arbitral jurisdiction 1. The arbitral tribunal shall rule on whether it has jurisdiction on the basis of Articles 10(2) or 11(2) of the Protocol. 2. In the cases referred to in Article 10(2) of the Protocol, the arbitral tribunal shall have a mandate to examine the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 10(1) of the Protocol. & /en 21 3. In the cases referred to in Article 11(2) of the Protocol, the arbitral tribunal that heard the main case shall have a mandate to examine the proportionality of the disputed compensatory measures, including where those measures have in whole or in part been taken in another bilateral agreement in the fields related to the internal market in which Switzerland participates. 4. A preliminary objection of lack of jurisdiction of the arbitral tribunal shall be made at the latest in the statement of defence or, in the case of a counterclaim, in the reply. The fact that a party has appointed an arbitrator or has taken part in their appointment shall not deprive it of the right to make such a preliminary objection. The preliminary objection that the dispute would exceed the arbitral tribunal's powers shall be made as soon as the question alleged to exceed its powers is raised during the arbitration proceedings. In any event, the arbitral tribunal may allow a preliminary objection made after the time limit laid down has elapsed if it believes that the delay was for a valid reason. 5. The arbitral tribunal may rule on the preliminary objection referred to in paragraph 4 either by treating it as a preliminary question or in the decision on the substance of the case. ARTICLE III.7 Other written submissions The arbitral tribunal shall, after having consulted the parties, decide what other written submissions, in addition to the statement of claim and statement of defence, the parties shall or may submit and shall set the time limit for their submission. & /en 22  ARTICLE III.8 Time limits 1. The time limits set by the arbitral tribunal for the communication of the written documents, including the statement of claim and the statement of defence, shall not exceed 90 days, unless the parties agree otherwise. 2. The arbitral tribunal shall take its final decision within 12 months of the date of its establishment. In exceptional circumstances of particular difficulty, the arbitral tribunal may extend that period by up to three additional months. 3. The time limits laid down in paragraphs 1 and 2 shall be halved: (a) upon request by the applicant or the defendant, if, within 30 days of that request, the arbitral tribunal rules, after hearing the other party, that the case is urgent; or (b) if the parties so agree. 4. In the cases referred to in Article 11(2) of the Protocol, the arbitral tribunal shall take its final decision within six months of the date on which the compensatory measures have been notified in accordance with Article 11(1) of the Protocol. & /en 23  ARTICLE III.9 Referrals to the Court of Justice of the European Union 1. In application of Article 7 and Article 10(3) of the Protocol, the arbitral tribunal shall make a referral to the Court of Justice of the European Union. 2. The arbitral tribunal may make a referral to the Court of Justice of the European Union at any time in the proceedings, provided that the arbitral tribunal is able to define precisely enough the legal and factual background of the case, and the legal questions it raises. The proceedings before the arbitral tribunal shall be suspended until the Court of Justice of the European Union has delivered its ruling. 3. Each party may send a reasoned request to the arbitral tribunal to make a referral to the Court of Justice of the European Union. The arbitral tribunal shall reject such a request if it considers the conditions for a referral to the Court of Justice of the European Union referred to in paragraph 1 not to be met. If the arbitral tribunal rejects a party's request for a referral to the Court of Justice of the European Union, it shall give reasons for its decision in the decision on the substance of the case. 4. The arbitral tribunal shall make a referral to the Court of Justice of the European Union by means of a notice. The notice shall contain at least the following information: (a) a brief description of the dispute; (b) the legal act(s) of the Union and/or the provision(s) of the Agreement at issue; and (c) the concept of Union law to be interpreted in accordance with Article 7(2) of the Protocol. & /en 24 The arbitral tribunal shall give notice of the referral to the Court of Justice of the European Union to the parties. 5. The Court of Justice of the European Union shall apply, by analogy, the internal rules of procedure applicable to the exercise of its jurisdiction to make a preliminary ruling on the interpretation of the Treaties and acts made by the Union's institutions, bodies, offices and agencies. 6. The agents and lawyers authorised to represent the parties before the arbitral tribunal pursuant to Articles I.4, I.5, III.4 and III.5 shall be authorised to represent the parties before the Court of Justice of the European Union. ARTICLE III.10 Interim measures 1. In the cases referred to in Article 11(2) of the Protocol, either party may, at any stage of the arbitration procedure, apply for interim measures consisting of the suspension of the compensatory measures. 2. An application pursuant to paragraph 1 shall state the subject matter of the proceedings, the circumstances giving rise to urgency and the pleas of fact and law establishing a prima facie case for the interim measures applied for. It shall contain all the evidence and offers of evidence available to justify the grant of the interim measures. 3. The party requesting the interim measures shall send its application in writing to the other party and to the arbitral tribunal through the International Bureau. The arbitral tribunal shall set a short time limit within which that other party may submit written or oral observations. & /en 25 4. The arbitral tribunal shall, within one month of the submission of the application referred to in paragraph 1, adopt a decision on the suspension of the contested compensatory measures if the following conditions are met: (a) the arbitral tribunal is prima facie satisfied of the merit of the case submitted by the party requesting the interim measures in its application; (b) the arbitral tribunal considers that, pending its final decision, the party requesting the interim measures would suffer serious and irreparable harm absent the suspension of the compensatory measures; and (c) the harm caused to the party requesting the interim measures by the immediate application of the contested compensatory measures outweighs the interest in the immediate and effective application of those measures. 5. The suspension of proceedings referred to in the second subparagraph of Article III.9(2) shall not apply in proceedings pursuant to this Article. 6. A decision taken by the arbitral tribunal in accordance with paragraph 4 shall have only an interim effect and shall be without prejudice to the decision of the arbitral tribunal on the substance of the case. 7. Unless the decision taken by the arbitral tribunal in accordance with paragraph 4 of this Article sets an earlier date for the end of the suspension, the suspension shall lapse when the final decision pursuant to Article 11(2) of the Protocol is taken. & /en 26 8. For the avoidance of doubt, for the purposes of this Article, it is understood that, in considering the respective interests of the party requesting the interim measures and the other party, the arbitral tribunal shall take into account those of the individuals and economic operators of the parties, but that consideration shall not amount to granting any standing to such individuals or economic operators before the arbitral tribunal. ARTICLE III.11 Evidence 1. Each party shall provide evidence of the facts forming the grounds of its claim or its defence. 2. On request of a party, or on its own initiative, the arbitral tribunal may seek from the parties relevant information it considers necessary and appropriate. The arbitral tribunal shall set a time limit for the parties to respond to its request. 3. On request of a party, or on its own initiative, the arbitral tribunal may seek from any source any information it considers appropriate. The arbitral tribunal may also seek the opinion of experts as it considers appropriate and subject to any terms and conditions agreed by the parties, where applicable. 4. Any information obtained by the arbitral tribunal under this Article shall be made available to the parties, and the parties may submit comments on that information to the arbitral tribunal. 5. After seeking the views of the other party, the arbitral tribunal shall adopt appropriate measures to address any questions raised by a party with regard to the protection of personal data, professional secrecy and the legitimate interests of confidentiality. & /en 27 6. The arbitral tribunal shall be the judge of the admissibility, relevance and strength of the evidence submitted. ARTICLE III.12 Hearings 1. When a hearing must take place, the arbitral tribunal, having consulted the parties, shall notify the parties sufficiently far in advance of the date, time and place of the hearing. 2. The hearing shall be public, unless the arbitral tribunal, of its own motion or on application by the parties, decides otherwise for serious reasons. 3. Minutes of each hearing shall be drawn up and signed by the chair of the arbitral tribunal. Only those minutes shall be authentic. 4. The arbitral tribunal may decide to hold the hearing virtually in accordance with the practice of the International Bureau. The parties shall be informed of this practice in a timely manner. In such cases, paragraph 1, mutatis mutandis, and paragraph 3 shall apply. & /en 28  ARTICLE III.13 Default 1. If, within the time limit set by this Appendix or by the arbitral tribunal, without showing sufficient cause, the applicant has not submitted its statement of claim, the arbitral tribunal shall order the closure of the arbitration proceedings, unless there are outstanding questions on which a ruling may be necessary and if the arbitral tribunal considers it appropriate to do so. If, within the time limit set by this Appendix or by the arbitral tribunal, without showing sufficient cause, the defendant has not submitted its response to the notice of arbitration or its statement of defence, the arbitral tribunal shall order the continuation of the proceedings, without considering that default of itself to constitute acceptance of the applicant's allegations. The second subparagraph also applies where the applicant fails to submit a reply to a counterclaim. 2. If a party, duly convened in accordance with Article III.12(1), does not appear at a hearing and does not demonstrate sufficient cause for its failure to do so, the arbitral tribunal may continue the arbitration. 3. If a party, duly invited by the arbitral tribunal to produce further evidence, fails to do so within the time limits set without showing sufficient cause for its failure to do so, the arbitral tribunal may rule on the basis of the evidence it has available. & /en 29  ARTICLE III.14 Closure of the procedure 1. Where it is demonstrated that the parties have reasonably had the possibility of presenting their arguments, the arbitral tribunal may declare the closure of the proceedings. 2. The arbitral tribunal may, if it considers it necessary because of exceptional circumstances, decide on its own initiative or at the request of a party to reopen the proceedings at any time before it has taken its decision. CHAPTER IV DECISION ARTICLE IV.1 Decisions The arbitral tribunal shall strive to take its decisions by consensus. If, however, it proves impossible to take a decision by consensus, the arbitral tribunal's decision shall be taken by a majority of the arbitrators. & /en 30  ARTICLE IV.2 Form and effect of the decision of the arbitral tribunal 1. The arbitral tribunal may take separate decisions on different questions at different times. 2. All decisions shall be issued in writing and shall state the reasons on which they are based. They shall be final and binding on the parties. 3. The decision of the arbitral tribunal shall be signed by the arbitrators, shall contain the date on which it was taken and state the place of arbitration. A copy of the decision signed by the arbitrators shall be communicated to the parties by the International Bureau. 4. The International Bureau shall make the decision of the arbitral tribunal public. When making the decision of the arbitral tribunal public, the International Bureau shall respect the relevant rules on the protection of personal data, professional secrecy and the legitimate interests of confidentiality. The rules referred to in the second subparagraph shall be identical for all bilateral agreements in the fields of the internal market in which Switzerland participates as well as for the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution. The Joint Committee shall adopt and update those rules by a decision for the purposes of the Agreement. 5. The parties shall comply with all decisions of the arbitral tribunal without delay. & /en 31 6. In the cases referred to in Article 10(2) of the Protocol, having obtained the opinion of the parties, the arbitral tribunal shall set a reasonable time limit in the decision on the substance of the case to comply with its decision in accordance with Article 10(5) of the Protocol taking account of the parties' internal procedures. ARTICLE IV.3 Applicable law, rules of interpretation, mediator 1. The applicable law consists of the Agreement, the legal acts of the Union to which reference is made therein, as well as any other rule of international law relevant to the application of those instruments. 2. The arbitral tribunal shall decide in accordance with the rules of interpretation referred to in Article 7 of the Protocol. 3. Prior decisions taken by a dispute settlement body with regard to the proportionality of compensatory measures under another bilateral agreement among those referred to in Article 11(1) of the Protocol shall be binding upon the arbitral tribunal. 4. The arbitral tribunal shall not be permitted to decide as mediator or ex aequo et bono. & /en 32  ARTICLE IV.4 Mutually agreed solution or other reasons for closure of the proceedings 1. The parties may, at any time, mutually agree a solution to their dispute. They shall jointly communicate any such solution to the arbitral tribunal. If the solution requires approval pursuant to the relevant domestic procedures of either party, the notification shall refer to that requirement, and the arbitration procedure shall be suspended. If such approval is not required, or upon notification of the completion of any such domestic procedures, the arbitration procedure shall be closed. 2. If, in the course of proceedings, the applicant informs the arbitral tribunal in writing that it does not wish to further pursue the proceedings, and if, at the date on which that communication is received by the arbitral tribunal, the defendant has not yet taken any step in the proceedings, the arbitral tribunal shall issue an order officially recording the closure of the proceedings. The arbitral tribunal shall decide on the costs, which shall be borne by the applicant, if this appears justified by the conduct of that party. 3. If, before the decision of the arbitral tribunal is taken, the arbitral tribunal concludes that the continuation of the proceedings has become pointless or impossible for any reason other than those referred to in paragraphs 1 and 2, the arbitral tribunal shall inform the parties of its intention to issue an order closing the proceedings. The first subparagraph does not apply where there are outstanding questions on which it may be necessary to rule and if the arbitral tribunal judges it appropriate to do so. & /en 33 4. The arbitral tribunal shall communicate to the parties a copy of the order closing the arbitration proceedings or of the decision taken by agreement between the parties, signed by the arbitrators. Article IV.2(2) to (5) shall apply to arbitration decisions taken by agreement between the parties. ARTICLE IV.5 Correction of the decision of the arbitral tribunal 1. Within 30 days of receiving the decision of the arbitral tribunal, a party may, by giving notice to the other party and to the arbitral tribunal through the International Bureau, ask the arbitral tribunal to correct in the text of the decision of the arbitral tribunal any errors in computation, any clerical or typographical errors, or any errors or omissions of a similar nature. If it considers the request to be justified, the arbitral tribunal shall make the correction within 45 days of receiving the request. The request shall not have a suspensive effect on the time limit provided for in Article IV.2(6). 2. The arbitral tribunal may, within 30 days of communicating its decision, make the corrections referred to in paragraph 1 on its own initiative. 3. The corrections referred to in paragraph 1 of this Article shall be done in writing and form an integral part of the decision. Article IV.2(2) to (5) shall apply. & /en 34  ARTICLE IV.6 Arbitrators' fees 1. The fees referred to in Article IV.7 shall be reasonable, taking account of the complexity of the case, the time spent on it by the arbitrators and all other relevant circumstances. 2. A list of daily compensation and maximum and minimum hours, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution, shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. ARTICLE IV.7 Costs 1. Each party shall bear its own costs and half of the costs of the arbitral tribunal. 2. The arbitral tribunal shall set its costs in its decision on the substance of the case. Those costs shall include only: (a) the arbitrators' fees, to be stated separately for each arbitrator and to be set by the arbitral tribunal itself in accordance with Article IV.6; (b) the travel and other expenses incurred by the arbitrators; and & /en 35 (c) the fees and expenses of the International Bureau. 3. The costs referred to in paragraph 2 shall be reasonable, taking account of the amount in dispute, the complexity of the dispute, the time that the arbitrators and any experts appointed by the arbitral tribunal have spent on it and any other relevant circumstances. ARTICLE IV.8 Deposit of costs 1. At the start of the arbitration, the International Bureau may ask the parties to deposit an equal amount as an advance for the costs referred to in Article IV.7(2). 2. During the arbitration proceedings, the International Bureau may request from the parties deposits supplementary to those referred to in paragraph 1. 3. All amounts deposited by the parties in application of this Article shall be paid to the International Bureau and paid out by it to cover the costs actually incurred, including, in particular, the fees paid to the arbitrators and to the International Bureau. & /en 36  CHAPTER V FINAL PROVISIONS ARTICLE V.1 Amendments The Joint Committee may adopt, by decision, amendments to this Appendix. ________________ & /en 37  STATE AID PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON AIR TRANSPORT & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", of the one part, and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", of the other part, hereinafter individually referred to as a "Contracting Party" and jointly referred to as the "Contracting Parties", AIMING to strengthen and deepen the participation of Switzerland and its undertakings in the internal market of the Union, in which Switzerland participates on the basis of the Agreement between the European Community and the Swiss Confederation on air transport, done in Luxembourg on 21 June 1999 (hereinafter the "Agreement"); RECOGNISING that the proper functioning and homogeneity in the fields of the internal market in which Switzerland participates requires a level playing field for competition between Swiss and Union undertakings based on substantive and procedural rules equivalent to those that apply in the internal market as regards State aid; REAFFIRMING the autonomy of the Contracting Parties and the role and competences of their institutions and, as far as Switzerland is concerned, respect for the principles deriving from its constitutional order, including direct democracy, the separation of powers, and federalism, HAVE AGREED AS FOLLOWS: & /en 1  ARTICLE 1 Objectives The objectives of this Protocol are to ensure a level playing field for competition between Union and Swiss undertakings in the fields of the internal market falling under the scope of the Agreement and to guarantee the proper functioning of the internal market by laying down substantive and procedural rules on State aid. ARTICLE 2 Relation to the Agreement 1. This Protocol and its Annexes shall form an integral part of the Agreement. They shall alter neither the scope nor the objectives of the Agreement. 2. Articles 13 and 14 of the Agreement are repealed. 3. Article 12(2) of the Agreement shall not apply for the purposes of this Protocol. & /en 2  ARTICLE 3 State aid 1. Save as otherwise provided in the Agreement, any aid granted by Switzerland or by a Member State of the Union, or through State resources in any form whatsoever, which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between the Contracting Parties within the scope of the Agreement, be incompatible with the proper functioning of the internal market. 2. The following shall be compatible with the proper functioning of the internal market: (a) aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned; (b) aid to make good the damage caused by natural disasters or exceptional occurrences; (c) the measures set out in Section A of Annex I. 3. The following may be considered to be compatible with the proper functioning of the internal market: (a) aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment; (b) aid to promote the execution of an important project of common European interest, or of common interest to the Contracting Parties, or to remedy a serious disturbance in the economy of a Member State of the Union or Switzerland; & /en 3 (c) aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the interest of the Contracting Parties; (d) aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition to an extent contrary to the interest of the Contracting Parties; (e) the categories of aid set out in Section B of Annex I. 4. Aid granted in accordance with Section C of Annex I shall be presumed compatible with the proper functioning of the internal market and shall be exempted from notification requirements under Article 4. 5. Aid granted to undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the rules contained in this Protocol, in so far as the application of these rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interest of the Contracting Parties. 6. This Protocol shall not apply to aid where the amount granted to a single undertaking for activities within the scope of the Agreement constitutes de minimis aid as set out in Section D of Annex I. 7. The Joint Committee may decide to update Sections A and B of Annex I by specifying measures that shall be compatible, or categories of aid that may be considered to be compatible, with the proper functioning of the internal market. & /en 4  ARTICLE 4 Surveillance 1. For the purposes of Article 1, the Union, in accordance with the distribution of competences between the Union and its Member States, and Switzerland, in accordance with its constitutional order of competences, shall supervise the application of State aid rules in their respective territory in accordance with this Protocol. 2. For the purposes of the implementation of this Protocol, the Union shall maintain a State aid surveillance system in accordance with Articles 93, 106, 107 and 108 of the Treaty on the Functioning of the European Union as supplemented by Union legal acts in the field of State aid and Union legal acts concerning State aid in the air transport sector listed in point 1 of Section A of Annex II. 3. For the purposes of the implementation of this Protocol, Switzerland shall, within five years of the entry into force of this Protocol, establish and maintain a State aid surveillance system that ensures at all times a level of surveillance and enforcement equivalent to that applied in the Union, as set out in paragraph 2, including the following: (a) an independent surveillance authority; and (b) procedures to ensure the review by the surveillance authority of the compatibility of aid with the proper functioning of the internal market, including the following: (i) prior notification to the surveillance authority of planned aid; (ii) assessment by the surveillance authority of notified aid and its competence to review non-notified aid; (iii) challenge before the competent judicial authority, with suspensive effect from the moment the act is challengeable, of aid that the surveillance authority considers to be incompatible with the proper functioning of the internal market; and & /en 5  (iv) recovery, including interest, of aid granted and found incompatible with the proper functioning of the internal market. 4. In accordance with Switzerland's constitutional order of competences, paragraph 3, point (b), (iii) and (iv), does not apply to acts of the Swiss Federal Assembly or of the Swiss Federal Council. 5. Where the Swiss surveillance authority cannot challenge the aid of the Swiss Federal Assembly or of the Swiss Federal Council before a judicial authority due to its limitations of competence under the Swiss constitutional order, it shall challenge the application by other authorities of that aid in all specific cases. If the judicial authority finds that that aid is incompatible with the proper functioning of the internal market, the competent Swiss judicial and administrative authorities shall take that finding into account when assessing whether to apply that aid in the case before them. ARTICLE 5 Existing aid 1. Article 4(3), point (b) shall not apply to existing aid, including aid schemes and individual aid. 2. For the purposes of this Protocol, existing aid shall include aid granted before the entry into force of this Protocol and within a period of five years thereof. & /en 6 3. Within twelve months of the date of establishment of the surveillance system pursuant to Article 4(3), the surveillance authority shall gain an overview of existing aid schemes within the scope of the Agreement that are still in force and make a prima facie assessment of those schemes against the criteria set out in Article 3. 4. All existing aid schemes in Switzerland shall be subject to constant review by the surveillance authority as to their compatibility with the proper functioning of the internal market pursuant to paragraphs 5, 6 and 7. 5. If the surveillance authority considers that an existing aid scheme is not, or is no longer, compatible with the proper functioning of the internal market, it shall inform the competent authorities about the obligation to comply with this Protocol. If such an aid scheme is amended or terminated, the competent authorities shall inform the surveillance authority. 6. If the surveillance authority considers the measures taken by the competent authorities to be appropriate to ensure the compatibility of the aid scheme with the proper functioning of the internal market, it shall publish those measures. 7. Notwithstanding paragraph 1 of this Article, if the surveillance authority considers that the aid scheme remains incompatible with the proper functioning of the internal market, the surveillance authority shall publish its assessment and challenge the application of that aid scheme in all specific cases, in accordance with Article 4(3), point (b)(iii), and Article 4(5). 8. For the purposes of this Protocol, if an existing aid scheme is amended in such a way as to affect the compatibility of the aid with the proper functioning of the internal market, the aid shall be considered to be new aid and shall therefore be subject to Article 4(3), point (b). & /en 7  ARTICLE 6 Transparency 1. With regard to aid granted in their territory, the Contracting Parties shall ensure transparency. For the Union, transparency shall be based on substantive and procedural rules that apply in the Union on State aid within the scope of the Agreement. For Switzerland, transparency shall be based on substantive and procedural rules equivalent to those that apply in the Union on State aid within the scope of the Agreement. 2. Each Contracting Party shall, in respect of its territory and unless otherwise provided in this Protocol, ensure the publication of: (a) aid granted; (b) opinions or decisions of its surveillance authorities; (c) rulings of its competent judicial authorities on the compatibility of aid with the proper functioning of the internal market; and (d) guidelines and communications applied by its surveillance authorities. & /en 8  ARTICLE 7 Terms of cooperation 1. The Contracting Parties shall cooperate and exchange information on State aid, subject to their respective laws and available resources. 2. For the purposes of the uniform implementation, application and interpretation of the substantive rules on State aid and of harmonious development thereof: (a) the Contracting Parties shall cooperate and consult each other with regard to the relevant guidelines and communications referred to in Section B of Annex II; and (b) the surveillance authorities of the Contracting Parties shall conclude arrangements for a regular exchange of information, including on the implications for the application of rules on existing aid. ARTICLE 8 Consultations 1. At the request of a Contracting Party, the Contracting Parties shall consult each other, within the Joint Committee, on matters relating to the implementation of this Protocol. 2. In the event of developments concerning important interests of a Contracting Party that may affect the operation of this Protocol, the Joint Committee shall, at the request of a Contracting Party, meet at an appropriately high level within 30 days of that request in order to discuss the matter. & /en 9  ARTICLE 9 Integration of legal acts 1. Notwithstanding Article 5 of the Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on Air Transport (hereinafter referred to as the "Institutional Protocol"), for the purposes of Article 3(4) and (6) and Article 4(2) and (3), and in order to guarantee legal certainty and the homogeneity of the law in the fields of the internal market in which Switzerland participates by virtue of the Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the fields covered by Sections C and D of Annex I as well as Section A of Annex II are integrated into those Annexes as quickly as possible after their adoption. 2. When it adopts a legal act in the field covered by Sections C and D of Annex I or Section A of Annex II, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. 3. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend Sections C and D of Annex I as well as Section A of Annex II, including the necessary adaptations. 4. Subject to Article 6 of the Institutional Protocol, decisions of the Joint Committee pursuant to paragraph 3 of this Article shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. & /en 10  ARTICLE 10 Entry into force 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; & /en 11 (f) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (i) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. & /en 12  ARTICLE 11 Amendment and termination 1. This Protocol may be amended at any time by mutual agreement of the Contracting Parties. 2. Where the Agreement is terminated in accordance with Article 36(3) of the Agreement, this Protocol shall cease to be in force on the date referred to in Article 36(4) of the Agreement. 3. Where the Agreement ceases to be in force, the rights and obligations that individuals and undertakings have already acquired by virtue of the Agreement before the date of the cessation of the Agreement shall be preserved. The Contracting Parties shall settle by mutual agreement what action is to be taken in respect of rights in the process of being acquired. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: “For the European Union” and “For the Swiss Confederation”) & /en 13  ANNEX I EXEMPTIONS AND CLARIFICATIONS SECTION A MEASURES COMPATIBLE WITH THE PROPER FUNCTIONING OF THE INTERNAL MARKET, AS REFERRED TO IN ARTICLE 3(2), POINT (c) The following measures shall be compatible with the proper functioning of the internal market and shall not be subject to Article 4(3), point (b): […]. SECTION B CATEGORIES OF AID THAT MAY BE CONSIDERED TO BE COMPATIBLE WITH THE PROPER FUNCTIONING OF THE INTERNAL MARKET, AS REFERRED TO IN ARTICLE 3(3), POINT (e) The following categories of aid may be considered to be compatible with the proper functioning of the internal market: […]. & /en 1  SECTION C BLOCK EXEMPTIONS, AS REFERRED TO IN ARTICLE 3(4) Aid shall be presumed compatible with the proper functioning of the internal market and shall be exempted from the notification requirements under Article 4 if it is granted in accordance with the substantive conditions set out in the following provisions: (1) Chapters I and III of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p. 1), as last amended by Commission Regulation (EU) 2023/1315 of 23 June 2023 (OJ L 167, 30.6.2023, p. 1); (2) Articles 1 to 6 of Commission Decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OJ L 7, 11.1.2012, p. 3). SECTION D DE MINIMIS AID, AS REFERRED TO IN ARTICLE 3(6) "De minimis aid" shall have the meaning that it has in Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ L, 2023/2831, 15.12.2023). & /en 2 For aid granted to undertakings entrusted with the operation of services of general economic interest, "de minimis aid" shall have the meaning that it has in Commission Regulation (EU) 2023/2832 of 12 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest (OJ L, 2023/2832, 15.12.2023). ________________ & /en 3  ANNEX II GENERAL AND SECTORAL ACTS APPLICABLE IN THE EUROPEAN UNION AS REFERRED TO IN ARTICLE 4(2) SECTION A GENERAL AND SECTORAL ACTS (1) For the purposes of this Protocol and pursuant to Article 4(2), the following acts shall be applied by the Union: (a) Council Regulation (EU) 2015/1589 of 13 July 2015 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (OJ L 248, 24.9.2015, p. 9); (b) Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EU) 2015/1589 (OJ L 140, 30.4.2004, p. 1), as last amended by Commission Regulation (EU) 2016/2105 of 1 December 2016 (OJ L 327, 2.12.2016, p. 19); (c) Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p. 1), as last amended by Commission Regulation (EU) 2023/1315 of 23 June 2023 (OJ L 167, 30.6.2023, p. 1); & /en 1  (d) Commission Decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OJ L 7, 11.1.2012, p. 3); (e) Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ L, 2023/2831, 15.12.2023); (f) Commission Regulation (EU) 2023/2832 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest (OJ L, 2023/2832, 15.12.2023); (g) Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community (OJ L 293, 31.10.2008, p. 3). (2) For the purposes of this Protocol and pursuant to Article 4(3), Switzerland shall establish and maintain a State aid surveillance system that ensures at all times a level of surveillance and enforcement equivalent to that applied by the Union, as set out in Article 4(2) and point (1) of this Section. & /en 2  SECTION B GUIDELINES, COMMUNICATIONS AND DECISIONAL PRACTICE OF THE EUROPEAN COMMISSION (1) For the purposes of this Protocol and pursuant to Article 4(3), the Swiss surveillance authority and the competent judicial authorities in Switzerland shall take due account of, and follow to the extent possible, the relevant guidelines and communications binding on the European Commission, as well as its decisional practice, in order to ensure a level of surveillance and enforcement equivalent to that of the Union. (2) The European Commission shall notify to the Joint Committee, and publish, the guidelines and communications it considers relevant under the Agreement. ________________ & /en 3 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 3 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  AMENDING PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON THE CARRIAGE OF GOODS AND PASSENGERS BY RAIL AND ROAD & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", hereinafter referred to as the "Contracting Parties", REAFFIRMING the importance of the Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road, done at Luxembourg on 21 June 1999 (hereinafter referred to as the "Agreement"); WISHING to promote the carriage of passengers and goods by road and rail between the Contracting Parties within the scope of the Agreement; RECOGNISING the Contracting Parties' policies of shifting goods from road to rail; WISHING, with regard to rail transport, to preserve a transport system of quality based on the performance, attractiveness and reliability of transport services of goods and passengers that is essential for the population and economy; RECOGNISING the necessity to clarify the right of railway undertakings to carry out international rail passenger transport, including the right to pick up passengers at any station located along an international route and to set them down at another, including in cases in which such stations are located in the territory of the other Contracting Party; & /en 1 RECOGNISING that subject to the applicable competition rules, applicable Union law does not preclude international groupings from operating international services, including international services that are partly composed of services which participate in the interval-service timetable; ACKNOWLEDGING the importance of facilitating new international rail passenger services and thereby improving international railway connections between the Contracting Parties, while ensuring that passengers of Swiss purely domestic services are not negatively affected thereby; ACKNOWLEDGING the benefits for passengers which can arise from the opening of the market for the provision of international passenger rail services, and therefore the importance, taking into account the exceptions granted to Switzerland, of ensuring effective infrastructure access and a level playing field for the provision of such services; ACKNOWLEDGING the Swiss Heavy Goods Vehicle Charge and the goal to be in line with the principles governing the charging of road vehicles in the Union; RECOGNISING the advantages of close cooperation between Switzerland and the European Union Agency for Railways (ERA) based on Article 75 of Regulation (EU) 2016/796 (OJ L 138, 26.5.2016, p. 1), HAVE AGREED AS FOLLOWS: & /en 2  ARTICLE 1 Amendments to the Agreement The Agreement is amended as follows: (1) in Article 2, paragraph 2 is replaced by the following: "2. This Agreement shall apply to the international carriage by rail of passengers and goods and to combined international transport. This Agreement shall not apply to purely domestic rail passenger carriage, meaning national long-distance, regional and local transport, in Switzerland. This Agreement shall not apply to railway undertakings which only operate urban, suburban or regional services on local and regional stand-alone networks for transport services on railway infrastructure or on networks intended only for the operation of urban or suburban rail services."; (2) in Article 3, the following indent is added at the end of paragraph 2: "– 'international carriage by rail of passengers' shall mean a passenger service where the train crosses the border between the Contracting Parties, including the right to pick up passengers at any station located along the international route and to set them down at another, including in cases where such stations are located in the territory of the other Contracting Party, provided that the principal purpose of the service is to carry passengers between stations located in the territory of one Contracting Party and stations located in the territory of the other Contracting Party."; & /en 3 (3) Article 7 is amended as follows: (a) paragraph 1 is replaced by the following: "1. Subject to paragraphs 2 and 3, Switzerland shall adopt or maintain, in accordance with Article 5(2) of the Institutional Protocol to the Agreement (hereinafter referred to as the 'Institutional Protocol'), arrangements corresponding to Union legislation on the technical conditions governing road transport, as set out in Section 3 of Annex 1."; (b) paragraph 2 is replaced by the following: "2. Switzerland shall adopt or maintain, in accordance with Article 5(2) of the Institutional Protocol, legislation corresponding to Union legislation relating to technical controls for vehicles referred to in Section 3 of Annex 1."; (4) Article 9 is amended as follows: (a) paragraph 1 is replaced by the following: "1. The international carriage of goods by road for hire or reward, as well as unladen journeys between the territories of the Contracting Parties, shall take place under the Union authorisation, for which a model is provided in Annex 3, pursuant to Union legislation referred to in Annex 1, or under a Swiss authorisation pursuant to the corresponding Swiss legislation adopted or maintained in accordance with Article 5(2) of the Institutional Protocol."; & /en 4 (b) paragraph 4 is replaced by the following: "4. The procedures governing the issuing, renewal and withdrawal of authorisations and the procedures governing mutual assistance shall be covered by the Union legislation referred to in Section 1 of Annex I or the corresponding Swiss legislation adopted or maintained in accordance with Article 5(2) of the Institutional Protocol."; (5) in Article 17, paragraph 3 is replaced by the following: "3. The model for such licences and the procedures for obtaining, using and renewing them shall be as laid down in the Union law referred to in Section 1 of Annex 1 or in the corresponding Swiss provisions adopted or maintained in accordance with Article 5(2) of the Institutional Protocol."; (6) Article 24 is amended as follows: (a) paragraph 1 is replaced by the following: "1. Railway undertakings and international groupings established on the territory of one Contracting Party shall have the right of transit and the right of access to railway infrastructure in the other Contracting Party, for the purpose of operating an international service, under the conditions specified in the Union legislation referred to in Section 4 of Annex 1."; & /en 5 (b) the following paragraph is inserted: "1a. In the course of an international passenger service, railway undertakings shall have the right to pick up passengers at any station located along the international route and to set them down at another, including in cases where such stations are located in the territory of the same Contracting Party, provided that the principal purpose of the service concerned is to carry passengers from the territory of one Contracting Party to the territory of the other. Following a request from the relevant competent authorities or interested railway undertakings, the relevant regulatory body or bodies shall determine whether the principal purpose of the service is to carry passengers from the territory of one Contracting Party to the territory of the other."; (7) the following article is inserted: "ARTICLE 24a Exceptions from dynamic alignment concerning rail transport The following shall be exceptions within the meaning of Article 5(7) of the Institutional Protocol: 1. The option of obliging passenger transport companies to participate in public transport price integration, i.e. a single transport contract is offered to a passenger who uses the network of different public transport companies, provided that price-setting powers remain with the companies. & /en 6 2. The application of Swiss capacity management instruments providing for a minimum number of train paths per hour for defined types of traffic, including freight, regional and long-distance passenger traffic that may also serve an international purpose. Such instruments are subject to the principle of non-discrimination referred to in Article 1(3) of the Agreement. Undertakings planning and operating international rail passenger services in Switzerland are treated as interested parties within the existing Swiss consultation procedures under the Swiss capacity management instruments. 3. The option of giving priority to passenger traffic according to the interval-service timetable applicable to rail services throughout the territory of Switzerland. The criterion referred to in the first subparagraph shall be applied in a non-discriminatory manner for the allocation of train paths to companies submitting comparable applications in terms of service frequency. The priority referred to in the first subparagraph shall be given to services that are indispensable for the interval-service timetable. If an undertaking submits prior to the deadline for the annual allocation procedure an application for a train path for international passenger transport in Switzerland that cannot be satisfied in the mutual coordination phase, that application shall have priority for the use of the remaining unallocated capacity, including capacity which had been secured in the Swiss capacity management instruments but was not requested during the annual allocation procedure. & /en 7 The Union or its Member States may, on their territory, give priority to companies established in the Union and operating passenger rail services over a Swiss international passenger rail service that operates a part of the international service under the Swiss interval-service timetable and that does not perform the service within an international grouping. 4. The right to include non-discriminatory provisions in the authorisations and concessions granted to railway transport undertakings and international groupings relating to social standards, such as local and sector-specific salary and working conditions in Switzerland. 5. Tendering obligations for public service obligations for cross-border regional, urban and sub-urban rail passenger services: Switzerland may directly award a public service contract for the part of a cross border regional, urban and suburban rail passenger service which is operated on Swiss territory. In such case, Switzerland shall award the public service contract either to the operator that has been awarded the public service contract on the Union territory or to the operator that is cooperating with the railway undertaking which has been awarded the public service contract for the operation of the line on the Union territory. Subject to this paragraph, the competent authorities shall consult each other beforehand on the modalities of the public service to be awarded, including on the timing of the award procedure."; & /en 8 (8) the following article is inserted: "ARTICLE 29a Participation in the European Union Agency for Railways Switzerland has the right to participate, in accordance with Article 75 of Regulation (EU) 2016/796 of the European Parliament and of the Council of 11 May 2016 on the European Union Agency for Railways and repealing Regulation (EC) No 881/2004 (OJ L 138, 26.5.2016, p. 1), in the European Union Agency for Railways (hereinafter referred to as 'ERA'), including appropriate access to databases and registers. ERA shall not have any executive powers in Switzerland. Therefore, the relevant articles of Regulation (EU) 2016/796 creating such executive powers of ERA in Switzerland shall not be integrated in Annex 1 of the Agreement."; (9) the following article is inserted: "ARTICLE 32a The exclusion of increases in road capacity As an exception within the meaning of Article 5(7) of the Institutional Protocol, new infrastructure for road safety purposes, such as the drilling of a second road tunnel at the Gotthard, shall not be considered as an increase in road capacity and limiting road capacity to the current level shall not be considered as a unilateral quantitative restriction."; & /en 9 (10) Article 40 is replaced by the following: "ARTICLE 40 Swiss measures 1. With a view to achieving the objectives set out in Article 37 and in the light of the weight limit increases stipulated in Article 7(3), Switzerland shall introduce a non- discriminatory tax on vehicles. In particular, the tax shall be based on the principles referred to in Article 38(1) and on the procedures set out in Annex 10. 2. The charges shall be differentiated according to categories based on vehicle emissions. Upon request of Switzerland, the Joint Committee shall decide on a differentiation according to categories completely or partially based on consumption. 3. The weighted average of the charges shall not exceed CHF 325 for vehicles having a permissible maximum laden mass according to the vehicle registration document of not more than 40 t and travelling a distance of 300 km across the Alps. The charge for the most polluting category shall not exceed CHF 380. 4. A part of the charges referred to in paragraph 3 may be made up of toll fees for the use of specialised Alpine infrastructure. This part must not constitute more than 15 % of the charges referred to in paragraph 3. & /en 10  5. The weightings referred to in paragraph 3 shall be determined according to the number of vehicles per category operating in Switzerland. The number of vehicles in each category shall be established on the basis of censuses which will be examined by the Joint Committee. The Joint Committee shall determine the weighting on the basis of examinations, carried out every two years, in order to take account of trends in the structure of the vehicle fleet operating in Switzerland and of emission and consumption developments."; (11) Article 42 is replaced by the following: "ARTICLE 42 Review of the level of charges 1. On 1 January 2007, and at two-yearly intervals thereafter, the maximum levels of the charges fixed in Article 40(3) shall be adjusted in line with the rate of inflation in Switzerland during the previous two years. For this purpose, Switzerland shall send to the Joint Committee, by 30 September at the latest of the year preceding the adjustment, the necessary statistical data on which to base the adjustment under consideration. The Joint Committee shall meet, at the Union's request, within 30 days of receiving this communication, to hold consultations on the adjustment under consideration. 2. With effect from 1 January 2007, the Joint Committee may, at the request of one of the Contracting Parties, review the maximum levels of the charges fixed in Article 40(3) with a view to adjusting them by joint agreement. This review shall be undertaken on the basis of the following criteria: – the level and structure of taxes in the two Contracting Parties, notably with regard to comparable transalpine routes, & /en 11  – the distribution of traffic between comparable transalpine routes, – modal distribution trends in the Alpine region, – the development of the transalpine railway infrastructure."; (12) in Article 46, paragraph 1 is replaced by the following: "1. If, after 1 January 2005, despite competitive rail prices and the correct application of the measures provided for in Article 36 regarding quality parameters, there are difficulties with Swiss transalpine road traffic flows and if, over a 10-week period, the average rate of utilisation of the rail capacity in Switzerland (accompanied and unaccompanied combined transport) is less than 66 %, Switzerland may, by way of derogation from the provisions of Article 40(3) and (4), increase the charges provided for in Article 40(3) by no more than 12,5 %. All the revenue from this increase shall be used to help make rail and combined transport more competitive vis-à-vis road transport."; (13) Article 51 is replaced by the following: "ARTICLE 51 Joint Committee 1. A Joint Committee is hereby established. The Joint Committee shall be composed of representatives of the Contracting Parties. & /en 12 2. The Joint Committee shall be co-chaired by a representative of the Union and a representative of Switzerland. 3. The Joint Committee shall: (a) ensure the proper functioning and the effective administration and application of this Agreement; (b) provide a forum for mutual consultation and a continuous exchange of information between the Contracting Parties, in particular with a view to finding a solution to any difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement in accordance with Article 10 of the Institutional Protocol; (c) make recommendations to the Contracting Parties in matters pertaining to this Agreement; (d) adopt decisions where provided for in this Agreement; and (e) be responsible for the monitoring and application of this Agreement and, in particular Articles 27(6) and Articles 33, 34, 35, 36, 39, 40, 42, 45, 46 and 47; (f) exercise any other competence granted to it in this Agreement. 4. The Joint Committee shall act by consensus. Decisions shall be binding on the Contracting Parties, which shall take all necessary measures to implement them. & /en 13  5. The Joint Committee shall meet at least once a year, in Brussels and Bern alternately, unless the co-chairs decide otherwise. It shall also meet at the request of either Contracting Party. The co-chairs may agree that a meeting of the Joint Committee be held by videoconference or teleconference. 6. The Joint Committee shall adopt its rules of procedure and update them as necessary. 7. The Joint Committee may decide to set up any working party or group of experts that can assist it in carrying out its duties."; (14) in Article 53, the title is replaced by the following: "ARTICLE 53 Professional secrecy"; (15) the following article is inserted: "ARTICLE 53a Classified information and sensitive non-classified information 1. Nothing in this Agreement shall be construed as requiring a Contracting Party to make available classified information. & /en 14  2. Classified information or material provided by, or exchanged between, the Contracting Parties under this Agreement shall be handled and protected in compliance with the Agreement between the European Union and the Swiss Confederation on the security procedures for the exchange of classified information, done at Brussels on 28 April 2008, and any security arrangement implementing it. 3. The Joint Committee shall adopt, by means of a decision, handling instructions to ensure the protection of sensitive non-classified information exchanged between the Contracting Parties."; (16) Article 55 is amended as follows: (a) paragraph 1 is replaced by the following: "1. If one of the Contracting Parties wishes to have the provisions of this Agreement revised, it shall notify the Joint Committee accordingly. Subject to paragraph 3, the amended version of this Agreement shall enter into force on completion of the respective internal procedures."; (b) paragraph 2 is deleted; (c) paragraph 3 is replaced by the following: "Annexes 5, 6, 8 and 9 may be amended by a decision of the Joint Committee in accordance with Article 51(3)(d)."; & /en 15 (17) Article 57 is replaced by the following: "This Agreement shall apply, of the one part, to the territory in which the Treaty on European Union and the Treaty on the Functioning of the European Union apply and under the conditions laid down in those Treaties, and, of the other part, to the territory of Switzerland."; (18) Annex 1 is amended as follows: (a) after the title, the following paragraphs are inserted: "1. Within the scope of the Agreement, the legal acts of the Union listed in this Annex shall apply subject to the principle of dynamic alignment referred to in Article 5 of the Institutional Protocol, as well as subject to the exceptions listed in paragraph 7 of that Article. 2. Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union set out in this Annex for Member States shall be understood to be provided for for Switzerland. This shall be applied in full respect for the Institutional Protocol."; (b) Section 4 is amended as follows: (i) the following acts are inserted: "– Regulation (EU) No 913/2010 of the European Parliament and of the Council of 22 September 2010 concerning a European rail network for competitive freight (OJ L 276, 20.10.2010, p. 22). & /en 16  – Directive 2012/34/EU of the European Parliament and of the Council of 21 November 2012 establishing a single European railway area (recast) (OJ L 343, 14.12.2012, p. 32). – Commission Implementing Regulation (EU) 2016/545 of 7 April 2016 on procedures and criteria concerning framework agreements for the allocation of rail infrastructure capacity (OJ L 94, 8.4.2016, p. 1). – Commission Delegated Decision (EU) 2017/2075 of 4 September 2017 replacing Annex VII to Directive 2012/34/EU of the European Parliament and of the Council establishing a single European railway area (OJ L 295, 14.11.2017, p. 69)."; (ii) the following acts are deleted: "– Council Directive 91/440/EEC of 29 July 1991 on the development of the Community's railways (OJ L 237, 24.8.1991, p. 25). – Council Directive 95/18/EC of 19 June 1995 on the licensing of railway undertakings (OJ L 143, 27.6.1995, p. 70). – Council Directive 95/19/EC of 19 June 1995 on the allocation of railway infrastructure capacity and the charging of infrastructure fees (OJ L 143, 27.6.1995, p. 75)."; & /en 17 (iii) in the entry concerning Directive 2007/59/EC, the following is added: "The train driver's licence and the complementary certificate issued in accordance with Articles 4(1), points (a) and (b), of Directive 2007/59/EC and the corresponding provisions adopted or maintained in Switzerland's legal order pursuant to Article 5 of the Institutional Protocol are mutually recognised"; (iv) in the entry concerning Directive (EU) 2016/797, the following is added: "Directive (EU) 2016/797 is subject to transitory measures to maintain smooth rail traffic between Switzerland and the Union, as laid down in Decision n° 2/2019 of the Community/Switzerland Inland Transport Committee (OJ L 13, 17.1.2020, p. 43) including any subsequent amendments, if and to the extent that the Contracting Parties decide within the Joint Committee on adaptations extending those measures, taking into account Article 29a, second subparagraph, of the Agreement and Article 5 of the Institutional Protocol. Where Directive (EU) 2016/797 refers to the 'European Union Agency for Railways', the reference shall mean for the territory of Switzerland the 'Swiss national safety authority'."; & /en 18 (v) in the entry concerning Directive (EU) 2016/798, the following is added: "Directive (EU) 2016/798 is subject to transitory measures to maintain smooth rail traffic between Switzerland and the Union, as laid down in Decision n° 2/2019 of the Community/Switzerland Inland Transport Committee (OJ L 13, 17.1.2020, p. 43) including any subsequent amendments, if and to the extent that the Contracting Parties decide within the Joint Committee on adaptations extending those measures, taking into account Article 29a, second subparagraph, of the Agreement and Article 5 of the Institutional Protocol. Where Directive (EU) 2016/798 refers to the 'European Union Agency for Railways', the reference shall mean for the territory of Switzerland the 'Swiss national safety authority'."; (vi) in the entry concerning Implementing Regulation (EU) 2018/545, the following is added: "Implementing Regulation (EU) 2018/545 is subject to transitory measures to maintain smooth rail traffic between Switzerland and the Union, as laid down in Decision n° 2/2019 of the Community/Switzerland Inland Transport Committee (OJ L 13, 17.1.2020, p. 43) including any subsequent amendments, if and to the extent that the Contracting Parties decide within the Joint Committee on adaptations extending those measures, taking into account Article 29a, second subparagraph, of the Agreement and Article 5 of the Institutional Protocol. Where Implementing Regulation (EU) 2018/545 refers to the 'European Union Agency for Railways', the reference shall mean for the territory of Switzerland the 'Swiss national safety authority'."; & /en 19 (vii) in the entry concerning Implementing Regulation (EU) 2018/763, the following is added: "Implementing Regulation (EU) 2018/763 is subject to transitory measures to maintain smooth rail traffic between Switzerland and the Union, as laid down in Decision n° 2/2019 of the Community/Switzerland Inland Transport Committee (OJ L 13, 17.1.2020, p. 43) including any subsequent amendments, if and to the extent that the Contracting Parties decide within the Joint Committee on adaptations extending those measures, taking into account Article 29a, second subparagraph, of the Agreement and Article 5 of the Institutional Protocol. Where Implementing Regulation (EU) 2018/763 refers to the 'European Union Agency for Railways', the reference shall mean for the territory of Switzerland the 'Swiss national safety authority'."; (viii) in the entry concerning Implementing Regulation (EU) 2019/250, the following is added: "Implementing Regulation (EU) 2019/250 is subject to transitory measures to maintain smooth rail traffic between Switzerland and the Union, as laid down in Decision n° 2/2019 of the Community/Switzerland Inland Transport Committee (OJ L 13, 17.1.2020, p. 43) including any subsequent amendments, if and to the extent that the Contracting Parties decide within the Joint Committee on adaptations extending those measures, taking into account Article 29a, second subparagraph, of the Agreement and Article 5 of the Institutional Protocol. Where Implementing Regulation (EU) 2019/250 refers to the 'European Union Agency for Railways', the reference shall mean for the territory of Switzerland the 'Swiss national safety authority'."; & /en 20 (c) in Section 5, the following act is inserted: "– Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road and repealing Council Regulations (EEC) Nos 1191/69 and 1107/70 (OJ L 315, 3.12.2007, p. 1), as last amended by Regulation (EU) 2016/2338 of the European Parliament and of the Council of 14 December 2016 (OJ L 354, 23.12.2016, p. 22); with the exception of Articles 5 and 5a of Regulation (EC) No 1370/2007, under the terms referred to in Article 24a(5) of the Agreement."; (19) Annex 10 is replaced by the following: "ANNEX 10 RULES FOR APPLYING THE CHARGES PROVIDED FOR IN ARTICLE 40 Subject to the provisions of Article 40(4), the charges provided for in Article 40 shall be applied as follows: (a) in the case of transport operations in Switzerland, the charges shall be increased or decreased in proportion to the extent to which the actual distance travelled in Switzerland is greater than or less than 300 km; (b) the charges shall be proportional to the vehicle's weight category."; & /en 21 (20) The Joint Declaration, attached to this Protocol, is added to the Declarations attached to the Final Act to the Agreement. ARTICLE 2 Entry into force 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; & /en 22 (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Institutional Protocol to the Agreement between the Swiss Confederation and the European Community on the carriage of goods and passengers by rail and road; (g) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (i) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; & /en 23 (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes. (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 24  INSTITUTIONAL PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON THE CARRIAGE OF GOODS AND PASSENGERS BY RAIL AND ROAD & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", hereinafter referred to as the "Contracting Parties"; WHEREAS the Union and Switzerland are bound by numerous bilateral agreements covering various fields, providing for specific rights and obligations similar, in certain respects, to those provided for within the Union; RECALLING that the purpose of those bilateral agreements is to increase Europe's competitiveness and to create closer economic ties between the Contracting Parties, based on equality, reciprocity and the general balance of their advantages, rights and obligations; RESOLVED to strengthen and deepen Switzerland's participation in the internal market of the Union, on the basis of the same rules as those that apply to the internal market, while preserving their independence and that of their institutions and, as regards Switzerland, respect for the principles stemming from direct democracy, federalism and the sectoral nature of its participation in the internal market; REAFFIRMING that the competence of the Swiss Federal Supreme Court and all other Swiss courts as well as that of the Member States' courts and of the Court of Justice of the European Union to interpret the Agreement in individual cases is preserved; & /en 1 CONSCIOUS of ensuring uniformity in the fields related to the internal market in which Switzerland participates, both current and future, HAVE AGREED AS FOLLOWS: CHAPTER 1 GENERAL PROVISIONS ARTICLE 1 Objectives 1. The objective of this Protocol is to guarantee for the Contracting Parties, and for economic operators and individuals, greater legal certainty, equal treatment and a level playing field in the field related to the internal market falling under the scope of the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road, done at Luxembourg on 21 June 1999 (hereinafter referred to as the "Agreement"). & /en 2 2. To this end, this Protocol provides new institutional solutions facilitating a continuous and balanced strengthening of economic relations between the Contracting Parties. Taking account of the principles of international law, this Protocol lays down, in particular, institutional solutions for the Agreement which are common to the bilateral agreements concluded or to be concluded in the fields related to the internal market in which Switzerland participates, without changing the scope or the objectives of the Agreement, notably: (a) the procedure for aligning the Agreement with legal acts of the Union relevant to the Agreement; (b) the uniform interpretation and application of the Agreement and of the legal acts of the Union to which reference is made in the Agreement; (c) the surveillance and application of the Agreement; and (d) the settlement of disputes in the context of the Agreement. ARTICLE 2 Relation to the Agreement 1. This Protocol, its Annex and its Appendix shall form an integral part of the Agreement. 2. The provisions of the Agreement repealed by this Protocol are listed below: (a) Article 49(1) and (2); & /en 3 (b) Article 50; (c) Article 52(1) to (4) and (6); (d) Article 54; (e) Article 55(2); (f) the following part of Annex 1: "In accordance with Article 52(6) of this Agreement, Switzerland shall apply legal provisions equivalent to the following:" 3. References to the "European Community" or to the "Community" in the Agreement shall be construed as references to the Union. ARTICLE 3 Bilateral agreements in the fields related to the internal market in which Switzerland participates 1. Existing and future bilateral agreements between the Union and Switzerland in the fields related to the internal market in which Switzerland participates shall be considered as a coherent whole which ensures a balance of rights and obligations between the Union and Switzerland. & /en 4 2. The Agreement constitutes a bilateral agreement in a field related to the internal market in which Switzerland participates. CHAPTER 2 ALIGNMENT OF THE AGREEMENT WITH LEGAL ACTS OF THE UNION ARTICLE 4 Participation in the drafting of legal acts of the Union ("decision shaping") 1. When drafting a proposal for a legal act of the Union in accordance with the Treaty on the Functioning of the European Union (hereinafter referred to as "TFEU") in the field covered by the Agreement, the European Commission (hereinafter referred to as the "Commission") shall inform Switzerland thereof and shall informally consult Switzerland's experts in the same way that it asks for the views of experts from the Member States of the Union for the drafting of its proposals. At the request of either Contracting Party, a preliminary exchange of views shall take place within the Joint Committee. The Contracting Parties shall consult each other again, at the request of either of them, within the Joint Committee at important moments of the phase preceding the adoption of the legal act by the Union, in a continuous process of information and consultation. & /en 5 2. When preparing, in accordance with the TFEU, delegated acts concerning basic acts of Union law in the field covered by the Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts and shall consult Switzerland's experts on the same basis as it consults the experts of the Member States of the Union. 3. When preparing, in accordance with the TFEU, implementing acts concerning basic acts of Union law in the field covered by the Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts to be submitted later on to the committees assisting the Commission in the exercise of its implementing powers and shall consult Switzerland's experts on the same basis as it consults the experts from the Member States of the Union. 4. Switzerland's experts shall be involved in the work of committees not covered by paragraphs 2 and 3 where this is required for the proper functioning of the Agreement. A list of those committees and, where appropriate, of other committees with similar characteristics, shall be drawn up and updated by the Joint Committee. 5. This Article shall not apply with regard to legal acts of the Union or provisions thereof falling within the scope of an exception referred to in Article 5(7). & /en 6  ARTICLE 5 Integration of legal acts of the Union 1. In order to guarantee legal certainty and the homogeneity of the law in the field related to the internal market in which Switzerland participates by virtue of the Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the field covered by the Agreement are integrated into the Agreement as quickly as possible after their adoption. 2. Switzerland shall adopt or maintain provisions in its legal order with a view to achieving the result to be attained by the legal acts of the Union integrated into the Agreement in accordance with paragraph 4 subject, as the case may be, to the adaptations decided upon by the Joint Committee. 3. When it adopts a legal act in the field covered by the Agreement, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. 4. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend Annexes 1, 3, 4 and 7 to the Agreement, including the necessary adaptations. 5. Without prejudice to paragraphs 1 and 2, if necessary in order to ensure coherence of the Agreement with its Annexes as amended pursuant to paragraph 4, the Joint Committee may propose, for approval by the Contracting Parties according to their internal procedures, the revision of the Agreement. & /en 7 6. References in the Agreement to legal acts of the Union that are no longer in force shall be construed as references to the repealing legal act of the Union as integrated into Annex 1 to the Agreement as from the entry into force of the Joint Committee's decision on the corresponding amendment of the Annex to the Agreement pursuant to paragraph 4, unless otherwise provided in that decision. 7. The obligation set out in paragraph 1 shall not apply to legal acts of the Union or provisions thereof falling within the scope of the following exceptions: – Article 7(3) of the Agreement, – Article 14 of the Agreement, – Article 15 of the Agreement, – Article 20 of the Agreement, – Article 24a of the Agreement, – Article 32a of the Agreement, – Article 40 of the Agreement, – Article 42 of the Agreement. & /en 8 8. Subject to Article 6, decisions of the Joint Committee pursuant to paragraph 4 shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. 9. The Contracting Parties shall cooperate in good faith throughout the procedure set out in this Article in order to facilitate decision-making. ARTICLE 6 Fulfilment of constitutional obligations by Switzerland 1. During the exchange of views referred to in Article 5(3), Switzerland shall inform the Union whether a decision as referred to in Article 5(4) requires the fulfilment of constitutional obligations by Switzerland in order to become binding. 2. Where the decision referred to in Article 5(4) requires Switzerland to fulfil constitutional obligations in order to become binding, Switzerland shall have a time limit of two years maximum from the date of the information provided for in paragraph 1, except where a referendum procedure is launched, in which case this period shall be extended by one year. 3. Pending the information by Switzerland that it has fulfilled its constitutional obligations, the Contracting Parties shall provisionally apply the decision referred to in Article 5(4), unless Switzerland informs the Union that the provisional application of the decision is not possible and provides the reasons for this. & /en 9 Under no circumstances can the provisional application occur before the date on which the corresponding legal act of the Union becomes applicable in the Union. 4. Switzerland shall notify the Union without delay through the Joint Committee once it has fulfilled the constitutional obligations referred to in paragraph 1. 5. The decision shall enter into force on the day on which the notification provided for in paragraph 4 is delivered, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. CHAPTER 3 INTERPRETATION AND APPLICATION OF THE AGREEMENT ARTICLE 7 Uniform interpretation principle 1. For the purpose of achieving the objectives set out in Article 1 and in accordance with the principles of public international law, the bilateral agreements in the fields related to the internal market in which Switzerland participates and the legal acts of the Union to which reference is made in such agreements shall be uniformly interpreted and applied in the fields related to the internal market in which Switzerland participates. & /en 10 2. The legal acts of the Union to which reference is made in the Agreement and, to the extent that their application involves concepts of Union law, the provisions of the Agreement shall be interpreted and applied in accordance with the case law of the Court of Justice of the European Union, prior or subsequent to the signature of the Agreement. ARTICLE 8 Effective and harmonious application principle 1. The Commission and the competent Swiss authorities shall cooperate and assist each other in ensuring the surveillance of the application of the Agreement. They may exchange information on the activities of surveillance of the application of the Agreement. They may exchange views and discuss issues of mutual interest. 2. Each Contracting Party shall take appropriate measures to ensure the effective and harmonious application of the Agreement on its territory. 3. The surveillance of the application of the Agreement shall be carried out jointly by the Contracting Parties within the Joint Committee. If the Commission or the competent Swiss authorities become aware of a case of incorrect application, the matter may be referred to the Joint Committee with a view to finding an acceptable solution. & /en 11 4. The Commission and the competent Swiss authorities respectively shall monitor the application of the Agreement by the other Contracting Party. The procedure provided for in Article 10 applies. To the extent that certain surveillance competences of the institutions of the Union as regards one Contracting Party are necessary to ensure the effective and harmonious application of the Agreement, such as investigation and decision powers, the Agreement must foresee them specifically. ARTICLE 9 Exclusivity principle The Contracting Parties undertake not to submit a dispute regarding the interpretation or application of the Agreement and of the legal acts of the Union to which reference is made in the Agreement or, where applicable, regarding the conformity with the Agreement of a decision adopted by the Commission on the basis of the Agreement to any method of settlement other than those provided for in this Protocol. & /en 12  ARTICLE 10 Procedure in the event of difficulty of interpretation or application 1. In the event of difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement, the Contracting Parties shall consult each other within the Joint Committee in order to find a mutually acceptable solution. To this end, all useful elements of information shall be provided to the Joint Committee to enable it to make a detailed examination of the situation. The Joint Committee shall examine all possibilities that allow the proper functioning of the Agreement to be maintained. 2. If the Joint Committee is not able to find a solution to the difficulty referred to in paragraph 1 within three months of the date on which the difficulty was submitted to it, either of the Contracting Parties may request that an arbitral tribunal settle the dispute in accordance with the rules laid down in the Appendix. 3. Where the dispute raises a question concerning the interpretation or application of a provision referred to in Article 7(2), and if the interpretation of that provision is relevant to the settlement of the dispute and necessary to enable it to decide, the arbitral tribunal shall refer that question to the Court of Justice of the European Union. Where the dispute raises a question concerning the interpretation or application of a provision that falls within the scope of an exception from the dynamic alignment obligation referred to in Article 5(7), and where the dispute does not involve the interpretation or application of concepts of Union law, the arbitral tribunal shall settle the dispute without referral to the Court of Justice of the European Union. & /en 13 4. Where the arbitral tribunal refers a question to the Court of Justice of the European Union pursuant to paragraph 3: (a) the ruling of the Court of Justice of the European Union shall be binding on the arbitral tribunal; and (b) Switzerland shall enjoy the same rights as the Member States and the institutions of the Union and shall be subject to the same procedures before the Court of Justice of the European Union, mutatis mutandis. 5. Each Contracting Party shall take all measures necessary to comply in good faith with the arbitral tribunal's decision. The Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement shall inform the other Contracting Party through the Joint Committee of the measures it has taken to comply with the arbitral tribunal's decision. & /en 14  ARTICLE 11 Compensatory measures 1. If the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement does not inform the other Contracting Party, within a reasonable time period set in accordance with Article IV.2(6) of the Appendix, of the measures it has taken to comply with the arbitral tribunal's decision, or if the other Contracting Party considers that the measures communicated do not comply with the arbitral tribunal's decision, this other Contracting Party may adopt proportionate compensatory measures within the framework of the Agreement or of any other bilateral agreement in the fields related to the internal market in which Switzerland participates (hereinafter referred to as "compensatory measures") in order to remedy a potential imbalance. It shall notify the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement of the compensatory measures, which shall be specified in the notification. Those compensatory measures shall take effect three months from the date of this notification. 2. If, within one month from the date of the notification of the intended compensatory measures, the Joint Committee has not taken a decision to suspend, amend or annul those compensatory measures, either Contracting Party may submit to arbitration the question of the proportionality of those compensatory measures, in accordance with the Appendix. 3. The arbitral tribunal shall decide within the time limits laid down in Article III.8(4) of the Appendix. 4. Compensatory measures shall not have retroactive effect. In particular, the rights and obligations already acquired by individuals and economic operators before the compensatory measures take effect shall be preserved. & /en 15  ARTICLE 12 Cooperation between jurisdictions 1. To promote the homogeneous interpretation, the Swiss Federal Supreme Court and the Court of Justice of the European Union shall agree on a dialogue and the modalities thereof. 2. Switzerland shall have the right to lodge statements of case or written observations with the Court of Justice of the European Union where a court of a Member State of the Union refers to the Court of Justice of the European Union a question concerning the interpretation of the Agreement or of a provision of a legal act of the Union referred to therein for a preliminary ruling. CHAPTER 4 OTHER PROVISIONS ARTICLE 13 Financial contribution 1. Switzerland shall contribute to the financing of the activities of the Union agencies, information systems and other activities listed in Article 1 of the Annex to which it has access, in accordance with this Article and the Annex. The Joint Committee may adopt a decision to amend the Annex. & /en 16 2. The Union may suspend the participation of Switzerland in the activities referred to in paragraph 1 of this Article at any time if Switzerland fails to meet the payment deadline in accordance with the terms of payment set out in Article 2 of the Annex. Where Switzerland fails to meet a payment deadline, the Union shall send Switzerland a formal letter of reminder. Where no full payment is made within 30 days of the date of reception of that formal letter of reminder, the Union may suspend the participation of Switzerland in the relevant activity. 3. The financial contribution shall take the form of the sum of: (a) an operational contribution; and (b) a participation fee. 4. The financial contribution shall take the form of an annual financial contribution and shall be due at the dates specified in the calls for funds issued by the Commission. 5. The operational contribution shall be based on a contribution key defined as the ratio of the gross domestic product (hereinafter referred to as "GDP") of Switzerland at market prices to the GDP of the Union at market prices. & /en 17 For that purpose, the figures for GDP at market prices of the Contracting Parties shall be the latest such figures available as of 1 January of the year in which the annual payment is made as provided by the Statistical Office of the European Union, with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics, done at Luxembourg on 26 October 2004. If that agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development. 6. The operational contribution for each Union agency shall be calculated by applying the contribution key to its annual voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question, taking into account for each agency any adjusted operational contribution as defined in Article 1 of the Annex. The operational contribution for the information systems and other activities shall be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget, such as work programmes or contracts. All reference amounts shall be based on commitment appropriations. 7. The annual participation fee shall be 4 % of the annual operational contribution as calculated in accordance with paragraphs 5 and 6. 8. The Commission shall provide Switzerland with adequate information in relation to the calculation of its financial contribution. That information shall be provided having due regard to the Union's confidentiality and data protection rules. & /en 18 9. All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received, shall be made in euro. 10. Where the entry into force of this Protocol does not coincide with the beginning of a calendar year, Switzerland's operational contribution for the year in question shall be subject to adjustment, according to the methodology and terms of payment defined in Article 5 of the Annex. 11. Detailed provisions for the application of this Article are set out in the Annex. 12. Three years following the entry into force of this Protocol, and every three years subsequently, the Joint Committee shall review the conditions of Switzerland's participation as defined in Article 1 of the Annex and, where appropriate, adapt them. ARTICLE 14 References to territories Whenever the legal acts of the Union integrated into the Agreement contain references to the territory of the "European Union", of the "Union", of the "common market" or of the "internal market", the references shall for the purposes of the Agreement be understood to be references to the territories referred to in Article 57 of the Agreement. & /en 19  ARTICLE 15 References to nationals of Member States of the Union Whenever the legal acts of the Union integrated into the Agreement contain references to nationals of Member States of the Union, the references shall, for the purposes of the Agreement, be understood to be references to nationals of the Member States of the Union and of Switzerland. ARTICLE 16 Entry into force and implementation of the legal acts of the Union Provisions of the legal acts of the Union integrated into the Agreement on their entry into force or implementation are not relevant for the purposes of the Agreement. The time limits and dates for Switzerland for bringing into force and implementing the decisions integrating legal acts of the Union into the Agreement follow from Article 5(8) and Article 6(5), as well as from provisions on transitional arrangements. ARTICLE 17 Addressees of the legal acts of the Union Provisions of the legal acts of the Union integrated into the Agreement indicating that they are addressed to the Member States of the Union are not relevant for the purposes of the Agreement. & /en 20  CHAPTER 5 FINAL PROVISIONS ARTICLE 18 Implementation 1. The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from the Agreement and shall refrain from taking any measure which could jeopardise the achievement of its objectives. 2. The Contracting Parties shall take all measures necessary to guarantee the intended result of the legal acts of the Union to which reference is made in the Agreement and shall refrain from taking any measure that could jeopardise the achievement of their aims. ARTICLE 19 Entry into force 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. & /en 21 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; & /en 22 (h) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (i) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. ARTICLE 20 Amendment and termination 1. This Protocol may be amended at any time by mutual agreement of the Contracting Parties. & /en 23 2. Where the Agreement is terminated in accordance with Article 58(3) of the Agreement, this Protocol shall cease to be in force on the date referred to in Article 58(4) of the Agreement. 3. Where the Agreement ceases to be in force, the rights and obligations that individuals and economic operators have already acquired by virtue of the Agreement before the date of the cessation of the Agreement shall be preserved. The Contracting Parties shall settle by mutual agreement what action is to be taken in respect of rights in the process of being acquired. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 24  ANNEX ANNEX ON THE APPLICATION OF ARTICLE 13 OF THE PROTOCOL ARTICLE 1 List of the activities of the Union agencies, information systems and other activities to which Switzerland is to contribute financially Switzerland shall contribute financially to the following: (a) agencies: none. (b) information systems: none. (c) other activities: none. & /en 1  ARTICLE 2 Terms of payment 1. Payments due pursuant to Article 13 of the Protocol shall be made in accordance with this Article. 2. When issuing the call for funds of the financial year, the Commission shall communicate the following information to Switzerland: (a) the amount of the operational contribution; and (b) the amount of the participation fee. 3. The Commission shall communicate to Switzerland, as soon as possible and at the latest on 16 April of each financial year, the following information in relation to Switzerland's participation: (a) the amounts in commitment appropriations of the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question for each Union agency, taking into account for each agency any adjusted operational contribution as defined in Article 1, and the amounts in commitment appropriations in relation to the Union voted budget of the year in question for the relevant budget of the information systems and other activities, covering the participation of Switzerland in accordance with Article 1; (b) the amount of the participation fee referred to in Article 13(7) of the Protocol; and & /en 2 (c) as regards agencies, in year N+1, the amounts in budgetary commitments made on commitment appropriations authorised in year N on the relevant Union budget subsidy line(s) in relation to the annual Union budget inscribed on the relevant Union budget subsidy line(s) of year N. 4. On the basis of its draft budget, the Commission shall provide an estimate of information under points (a) and (b) of paragraph 3 as soon as possible, and at the latest, by 1 September of the financial year. 5. The Commission shall issue to Switzerland, at the latest on 16 April and, if applicable to the relevant agency, information system or other activity, at the earliest on 22 October and at the latest on 31 October of each financial year, a call for funds that corresponds to the contribution of Switzerland under the Agreement for each of the agencies, information systems and other activities in which Switzerland participates. 6. The call(s) for funds referred to in paragraph 5 shall be structured in instalments as follows: (a) the first instalment of each year, in relation to the call for funds to be issued by 16 April, shall correspond to an amount up to the equivalent of the estimate of the annual financial contribution of the agency, information system or other activity in question referred to in paragraph 4; Switzerland shall pay the amount indicated in this call for funds at the latest 60 days after the call for funds is issued. & /en 3 (b) where applicable, the second instalment of the year, in relation to the call for funds to be issued at the earliest on 22 October and at the latest on 31 October, shall correspond to the difference between the amount referred to in paragraph 4 and the amount referred to in paragraph 5, where the amount referred to in paragraph 5 is higher. Switzerland shall pay the amount indicated in this call for funds at the latest by 21 December. For each call for funds, Switzerland may make separate payments for each agency, information system or other activity. 7. For the first year of implementation of the Protocol, the Commission shall issue a single call for funds, within 90 days of the entry into force of the Protocol. Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after the call for funds is issued. 8. Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount as from the due date until the day on which that outstanding amount is paid in full. The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first day of the month in which the due date falls, or 0 %, whichever is higher, plus 3,5 percentage points. & /en 4  ARTICLE 3 Adjustment of Switzerland's financial contribution to Union agencies in the light of implementation The adjustment of Switzerland's financial contribution to Union agencies shall be made in year N+1, when the initial operational contribution shall be adjusted upwards or downwards by the difference between the initial operational contribution and an adjusted contribution calculated by applying the contribution key of year N to the amount of budgetary commitments made on commitment appropriations authorised in year N under the relevant Union subsidy budget line(s). Where applicable, the difference shall take into account, for each agency, the percentage-based adjusted operational contribution as defined in Article 1. ARTICLE 4 Existing arrangements Article 13 of the Protocol and this Annex shall not apply to specific arrangements between Switzerland and the Union which include financial contributions by Switzerland. The agencies, information systems and other activities covered by such arrangements are the following: – TACHOnet, established by Commission Implementing Regulation (EU) 2016/68 of 21 January 2016 on common procedures and specifications necessary for the interconnection of electronic registers of driver cards (OJ L 15, 22.1.2016, p. 51), as last amended by Commission Implementing Regulation (EU) 2017/1503 of 25 August 2017 (OJ L 221, 26.8.2017, p. 10), as applicable according to Annex 1 of the Agreement; & /en 5 – One-Stop Shop (OSS) of the European Union Agency for Railways (ERA), established by Article 12 of the Regulation (EU) 2016/796 of 11 May 2016 on the European Union Agency for Railways and repealing Regulation (EC) No 881/2004 (OJ L 138, 26.5.2016, p. 1), according to the Administrative Arrangement Between the Swiss Federal Office of Transport and the European Union Agency for Railways, done at Brussels on 13 December 2019. ARTICLE 5 Transitional arrangements In the event that the date of entry into force of the Protocol is not 1 January, this Article shall apply by way of derogation from Article 2. For the first year of implementation of the Protocol, in relation to the operational contribution due for the year in question applicable to the relevant agency, information system or other activity, as established in accordance with Article 13 of the Protocol and Articles 1 to 3 of this Annex, the operational contribution shall be reduced on a pro rata temporis basis by multiplying the amount of the annual operational contribution due to the ratio of the following: (a) the number of calendar days from the date of entry into force of the Protocol until 31 December of the year in question; and (b) the total number of calendar days of the year in question. & /en 6  Appendix APPENDIX ON THE ARBITRAL TRIBUNAL CHAPTER I PRELIMINARY PROVISIONS ARTICLE I.1 Scope If one of the Contracting Parties (hereinafter referred to as "parties") submits a dispute for arbitration in accordance with Articles 10(2) or 11(2) of the Protocol, the rules set out in this Appendix shall apply. ARTICLE I.2 Registry and secretarial services The International Bureau of the Permanent Court of Arbitration at the Hague (hereinafter referred to as "International Bureau") shall fulfil the functions of registry and provide the necessary secretarial services. & /en 7  ARTICLE I.3 Notices and calculation of time limits 1. Notices, including communications or proposals, may be sent by any means of communication that certifies their transmission, or enables them to be certified. 2. Such notices may be sent electronically only if an address has been designated or authorised by a party specifically for this purpose. 3. Such notices served on the parties shall be sent, for Switzerland, to Switzerland's Europe Division of the Federal Department of Foreign Affairs and, for the Union, to the Commission's Legal Service. 4. Any time limit laid down in this Appendix shall run from the day after an event occurs or an action takes place. If the last day for delivery of a document falls on a non-working day of the institutions of the Union or of the government of Switzerland, the time period for the delivery of the document shall end on the first following working day. Non-working days that fall within the time period shall be counted. ARTICLE I.4 Notice of arbitration 1. The party taking the initiative to use arbitration (hereinafter referred to as "applicant") shall send to the other party (hereinafter referred to as "defendant") and to the International Bureau a notice of arbitration. & /en 8 2. Arbitration proceedings shall be deemed to commence on the day after that on which the notice of arbitration is received by the defendant. 3. The notice of arbitration shall include the following information: (a) the demand that the dispute be referred to arbitration; (b) the names and contact details of the parties; (c) the name and address of the applicant's agent(s); (d) the legal basis of the proceedings (Article 10(2) or Article 11(2) of the Protocol) and: (i) in the cases referred to in Article 10(2) of the Protocol, the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 10(1) of the Protocol; and (ii) in the cases referred to in Article 11(2) of the Protocol, the decision of the arbitral tribunal, any implementation measures mentioned in Article 10(5) of the Protocol and the disputed compensatory measures; (e) the designation of any rule causing the dispute or related to it; (f) a brief description of the dispute; and (g) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. & /en 9 4. In the cases referred to in Article 10(3) of the Protocol, the notice of arbitration may also contain information concerning the need for a referral to the Court of Justice of the European Union. 5. Any claims on the sufficiency of the notice of arbitration shall not prevent the constitution of the arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. ARTICLE I.5 Response to the notice of arbitration 1. Within 60 days of receiving the notice of arbitration, the defendant shall send a response to the notice of arbitration to the applicant and the International Bureau, which shall include the following information: (a) the names and contact details of the parties; (b) the name and address of the defendant's agent(s); (c) a response to the information given in the notice of arbitration in accordance with points (d) to (f) of Article I.4(3); and (d) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. & /en 10 2. In the cases referred to in Article 10(3) of the Protocol, the response to the notice of arbitration may also contain a response to the information given in the notice of arbitration in accordance with Article I.4(4) of this Appendix and information concerning the need for a referral to the Court of Justice of the European Union. 3. The lack of, or an incomplete or late, response from the defendant to the notice of arbitration shall not prevent the constitution of an arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. 4. If the defendant requests that the arbitral tribunal consist of five arbitrators in its response to the notice of arbitration, the applicant shall designate an additional arbitrator within 30 days of receipt of the response to the notice of arbitration. ARTICLE I.6 Representation and assistance 1. The parties shall be represented before the arbitral tribunal by one or more agents. The agents may be assisted by advisers or lawyers. 2. Any change to the agents or their addresses shall be notified to the other party, the International Bureau and the arbitral tribunal. The arbitral tribunal may, at any time, on its own initiative or at the request of a party, request evidence of the powers conferred on the agents of the parties. & /en 11  CHAPTER II COMPOSITION OF THE ARBITRAL TRIBUNAL ARTICLE II.1 Number of arbitrators The arbitral tribunal shall be composed of three arbitrators. If the applicant in its notice of arbitration or the defendant in its response to the notice of arbitration so request, the arbitral tribunal shall be composed of five arbitrators. ARTICLE II.2 Appointment of arbitrators 1. If three arbitrators are to be appointed, each of the parties shall designate one of them. The two arbitrators appointed by the parties shall select the third arbitrator, who shall be the chair of the arbitral tribunal. 2. If five arbitrators are to be appointed, each of the parties shall designate two of them. The four arbitrators appointed by the parties shall select the fifth arbitrator, who shall be the chair of the arbitral tribunal. & /en 12 3. If, within 30 days of the designation of the last arbitrator appointed by the parties, the arbitrators have not reached agreement on the selection of the chair of the arbitral tribunal, the chair shall be appointed by the Secretary-General of the Permanent Court of Arbitration. 4. To assist in the selection of arbitrators to compose the arbitral tribunal, an indicative list of persons possessing the qualifications referred to in paragraph 6, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement between the European Union and the Swiss Confederation on health, done at […] on […] (hereinafter referred to as "Agreement on health"), the Agreement between the European Community and the Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999 (hereinafter referred to as "Agreement on trade in agricultural products") and the Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union, done at […] on […] (hereinafter referred to as "Agreement on Switzerland's regular financial contribution"), shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. 5. Where a party fails to designate an arbitrator, the Secretary-General of the Permanent Court of Arbitration shall appoint that arbitrator from the list referred to in paragraph 4. In the absence of such a list, the arbitrator shall be appointed by lot by the Secretary-General of the Permanent Court of Arbitration from the individuals who have been formally proposed by one party or both parties for the purposes of paragraph 4. & /en 13 6. The persons constituting the arbitral tribunal shall be highly qualified persons, with or without ties to the parties, whose independence and lack of conflicts of interest is guaranteed, along with a wide range of experience. In particular, they shall have demonstrated expertise in law and the matters covered by this Agreement; they shall not take instructions from either party; and they shall serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute. The chair of the arbitral tribunal shall also have experience in dispute settlement procedures. ARTICLE II.3 Arbitrators' declarations 1. When a person is being considered for appointment as an arbitrator, that person shall report all circumstances likely to give rise to legitimate doubts as to his or her impartiality or independence. From the appointment and throughout the entire arbitration proceedings, an arbitrator shall report such circumstances to the parties and to the other arbitrators without delay, if the arbitrator has not already done so. 2. Any arbitrator may be dismissed if circumstances exist that could give rise to legitimate doubts about his or her impartiality or independence. 3. A party may only request the dismissal of an arbitrator that it has appointed for a reason that becomes known to it after that appointment. 4. If an arbitrator fails to act or if it is impossible de jure or de facto for an arbitrator to fulfil his or her role, the procedure for the dismissal of arbitrators laid down in Article II.4 shall apply. & /en 14  ARTICLE II.4 Dismissal of arbitrators 1. Any party wishing to dismiss an arbitrator shall make a request for dismissal within 30 days of the date on which it is notified of the appointment of that arbitrator or within 30 days of the date on which it becomes aware of the circumstances referred to in Article II.3. 2. The request for dismissal shall be sent to the other party, to the dismissed arbitrator, to the other arbitrators and to the International Bureau. It shall set out the reasons for the request for dismissal. 3. When a request for dismissal has been made, the other party may accept the request for dismissal. The arbitrator in question may also step aside. The acceptance or stepping aside does not imply acknowledgement of the reasons for the request for dismissal. 4. If, within 15 days of the date of the notification of the request for dismissal, the other party does not accept the request for dismissal or the arbitrator in question does not step aside, the party requesting the dismissal may ask the Secretary-General of the Permanent Court of Arbitration to take a decision on the dismissal. 5. Unless the parties agree otherwise, the decision referred to in paragraph 4 shall indicate the reasons for that decision. & /en 15  ARTICLE II.5 Replacement of an arbitrator 1. Subject to paragraph 2 of this Article, if it is necessary to replace an arbitrator during the arbitration proceedings, a replacement shall be appointed or selected in accordance with the procedure laid down in Article II.2 applicable to the appointment or selection of the arbitrator to be replaced. That procedure shall apply even if one party had not exercised its right to appoint or to participate in the appointment of the arbitrator to be replaced. 2. In the event of replacement of an arbitrator, the procedure shall resume at the stage where the replaced arbitrator ceased to perform his or her functions, unless the arbitral tribunal decides otherwise. ARTICLE II.6 Exclusion of liability Except in cases of intentional wrongdoing or gross negligence, the parties renounce, to the maximum extent permitted by the applicable law, any action against the arbitrators for any act or omission related to the arbitration. & /en 16  CHAPTER III ARBITRATION PROCEEDINGS ARTICLE III.1 General provisions 1. The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator has accepted his or her appointment. 2. The arbitral tribunal shall ensure that the parties are treated equally and that, at an appropriate stage of the proceedings, each of them has sufficient possibility to assert their rights and present their case. The arbitral tribunal shall conduct the proceedings in such a way as to avoid delays and unnecessary expenditure and to ensure the dispute between the parties is settled. 3. A hearing shall be organised, unless the arbitral tribunal decides otherwise, having heard the parties. 4. When a party sends a communication to the arbitral tribunal, it shall do so through the International Bureau and shall send a copy to the other party at the same time. The International Bureau shall send a copy of that communication to each of the arbitrators. & /en 17  ARTICLE III.2 Place of arbitration The place of arbitration is The Hague. The arbitral tribunal may, if exceptional circumstances so require, meet at any other place that it considers appropriate for its deliberations. ARTICLE III.3 Language 1. The languages of the proceedings shall be French and English. 2. The arbitral tribunal may order all documents enclosed with the statement of claim or the statement of defence and all further documents produced during the proceedings, submitted in their original language, to be accompanied by a translation in one of the languages of the proceedings. ARTICLE III.4 Statement of claim 1. The applicant shall send its statement of claim in writing to the defendant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The applicant may decide to deem its notice of arbitration referred to in Article I.4 a statement of claim, provided that it also meets the conditions in paragraphs 2 and 3 of this Article. & /en 18 2. The statement of claim shall include the following information: (a) the information set out in points (b) to (f) of Article I.4(3); (b) a statement of facts submitted in support of the claim; and (c) the legal arguments put forward in support of the claim. 3. The statement of claim shall, as far as possible, be accompanied by any documents and other evidence mentioned by the applicant or should refer to them. In the cases referred to in Article 10(3) of the Protocol, the statement of claim shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. ARTICLE III.5 Statement of defence 1. The defendant shall send the statement of defence in writing to the applicant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The defendant may decide to deem the response to the notice of arbitration referred to in Article I.5 a statement of defence, provided that the response to the notice of arbitration also meets the conditions in paragraph 2 of this Article. & /en 19 2. The statement of defence shall respond to the points in the statement of claim indicated in accordance with points (a) to (c) of Article III.4(2) of this Appendix. It shall, as far as possible, be accompanied by any documents and other evidence mentioned by the defendant or should refer to them. In the cases referred to in Article 10(3) of the Protocol, the statement of defence shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. 3. In the statement of defence, or at a later stage in the arbitration proceedings if the arbitral tribunal decides that a delay is justified by circumstances, the defendant may make a counterclaim provided that the arbitral tribunal has jurisdiction in respect of it. 4. Article III.4(2) and (3) shall apply to a counterclaim. ARTICLE III.6 Arbitral jurisdiction 1. The arbitral tribunal shall rule on whether it has jurisdiction on the basis of Articles 10(2) or 11(2) of the Protocol. 2. In the cases referred to in Article 10(2) of the Protocol, the arbitral tribunal shall have a mandate to examine the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 10(1) of the Protocol. & /en 20 3. In the cases referred to in Article 11(2) of the Protocol, the arbitral tribunal that heard the main case shall have a mandate to examine the proportionality of the disputed compensatory measures, including where those measures have in whole or in part been taken in another bilateral agreement in the fields related to the internal market in which Switzerland participates. 4. A preliminary objection of lack of jurisdiction of the arbitral tribunal shall be made at the latest in the statement of defence or, in the case of a counterclaim, in the reply. The fact that a party has appointed an arbitrator or has taken part in their appointment shall not deprive it of the right to make such a preliminary objection. The preliminary objection that the dispute would exceed the arbitral tribunal's powers shall be made as soon as the question alleged to exceed its powers is raised during the arbitration proceedings. In any event, the arbitral tribunal may allow a preliminary objection made after the time limit laid down has elapsed if it believes that the delay was for a valid reason. 5. The arbitral tribunal may rule on the preliminary objection referred to in paragraph 4 either by treating it as a preliminary question or in the decision on the substance of the case. ARTICLE III.7 Other written submissions The arbitral tribunal shall, after having consulted the parties, decide what other written submissions, in addition to the statement of claim and statement of defence, the parties shall or may submit and shall set the time limit for their submission. & /en 21  ARTICLE III.8 Time limits 1. The time limits set by the arbitral tribunal for the communication of the written documents, including the statement of claim and the statement of defence, shall not exceed 90 days, unless the parties agree otherwise. 2. The arbitral tribunal shall take its final decision within 12 months of the date of its establishment. In exceptional circumstances of particular difficulty, the arbitral tribunal may extend that period by up to three additional months. 3. The time limits laid down in paragraphs 1 and 2 shall be halved: (a) upon request by the applicant or the defendant, if, within 30 days of that request the arbitral tribunal rules, after hearing the other party, that the case is urgent; or (b) if the parties so agree. 4. In the cases referred to in Article 11(2) of the Protocol, the arbitral tribunal shall take its final decision within six months of the date on which the compensatory measures have been notified in accordance with Article 11(1) of the Protocol. & /en 22  ARTICLE III.9 Referrals to the Court of Justice of the European Union 1. In application of Article 7 and Article 10(3) of the Protocol, the arbitral tribunal shall make a referral to the Court of Justice of the European Union. 2. The arbitral tribunal may make a referral to the Court of Justice of the European Union at any time in the proceedings, provided that the arbitral tribunal is able to define precisely enough the legal and factual background of the case, and the legal questions it raises. The proceedings before the arbitral tribunal shall be suspended until the Court of Justice of the European Union has delivered its ruling. 3. Each party may send a reasoned request to the arbitral tribunal to make a referral to the Court of Justice of the European Union. The arbitral tribunal shall reject such a request if it considers the conditions for a referral to the Court of Justice of the European Union referred to in paragraph 1 not to be met. If the arbitral tribunal rejects a party's request for a referral to the Court of Justice of the European Union, it shall give reasons for its decision in the decision on the substance of the case. 4. The arbitral tribunal shall make a referral to the Court of Justice of the European Union by means of a notice. The notice shall contain at least the following information: (a) a brief description of the dispute; (b) the legal act(s) of the Union and/or the provision(s) of the Agreement at issue; and & /en 23 (c) the concept of Union law to be interpreted in accordance with Article 7(2) of the Protocol. The arbitral tribunal shall give notice of the referral to the Court of Justice of the European Union to the parties. 5. The Court of Justice of the European Union shall apply, by analogy, the internal rules of procedure applicable to the exercise of its jurisdiction to make a preliminary ruling on the interpretation of the Treaties and acts made by the Union's institutions, bodies, offices and agencies. 6. The agents and lawyers authorised to represent the parties before the arbitral tribunal pursuant to Articles I.4, I.5, III.4 and III.5 shall be authorised to represent the parties before the Court of Justice of the European Union. ARTICLE III.10 Interim measures 1. In the cases referred to in Article 11(2) of the Protocol, either party may, at any stage of the arbitration procedure, apply for interim measures consisting of the suspension of the compensatory measures. 2. An application pursuant to paragraph 1 shall state the subject matter of the proceedings, the circumstances giving rise to urgency and the pleas of fact and law establishing a prima facie case for the interim measures applied for. It shall contain all the evidence and offers of evidence available to justify the grant of the interim measures. & /en 24 3. The party requesting the interim measures shall send its application in writing to the other party and to the arbitral tribunal through the International Bureau. The arbitral tribunal shall set a short time limit within which that other party may submit written or oral observations. 4. The arbitral tribunal shall, within one month of the submission of the application referred to in paragraph 1, adopt a decision on the suspension of the contested compensatory measures if the following conditions are met: (a) the arbitral tribunal is prima facie satisfied of the merit of the case submitted by the party requesting the interim measures in its application; (b) the arbitral tribunal considers that, pending its final decision, the party requesting the interim measures would suffer serious and irreparable harm absent the suspension of the compensatory measures; and (c) the harm caused to the party requesting the interim measures by the immediate application of the contested compensatory measures outweighs the interest in the immediate and effective application of those measures. 5. The suspension of proceedings referred to in the second subparagraph of Article III.9(2) shall not apply in proceedings pursuant to this Article. 6. A decision taken by the arbitral tribunal in accordance with paragraph 4 shall have only an interim effect and shall be without prejudice to the decision of the arbitral tribunal on the substance of the case. & /en 25 7. Unless the decision taken by the arbitral tribunal in accordance with paragraph 4 of this Article sets an earlier date for the end of the suspension, the suspension shall lapse when the final decision pursuant to Article 11(2) of the Protocol is taken. 8. For the avoidance of doubt, for the purposes of this Article, it is understood that, in considering the respective interests of the party requesting the interim measures and the other party, the arbitral tribunal shall take into account those of the individuals and economic operators of the parties, but that consideration shall not amount to granting any standing to such individuals or economic operators before the arbitral tribunal. ARTICLE III.11 Evidence 1. Each party shall provide evidence of the facts forming the grounds of its claim or its defence. 2. On request of a party, or on its own initiative, the arbitral tribunal may seek from the parties relevant information it considers necessary and appropriate. The arbitral tribunal shall set a time limit for the parties to respond to its request. 3. On request of a party, or on its own initiative, the arbitral tribunal may seek from any source any information it considers appropriate. The arbitral tribunal may also seek the opinion of experts as it considers appropriate and subject to any terms and conditions agreed by the parties, where applicable. 4. Any information obtained by the arbitral tribunal under this Article shall be made available to the parties, and the parties may submit comments on that information to the arbitral tribunal. & /en 26 5. After seeking the views of the other party, the arbitral tribunal shall adopt appropriate measures to address any questions raised by a party with regard to the protection of personal data, professional secrecy and the legitimate interests of confidentiality. 6. The arbitral tribunal shall be the judge of the admissibility, relevance and strength of the evidence submitted. ARTICLE III.12 Hearings 1. When a hearing must take place, the arbitral tribunal, having consulted the parties, shall notify the parties sufficiently far in advance of the date, time and place of the hearing. 2. The hearing shall be public, unless the arbitral tribunal, of its own motion or on application by the parties, decides otherwise for serious reasons. 3. Minutes of each hearing shall be drawn up and signed by the chair of the arbitral tribunal. Only those minutes shall be authentic. 4. The arbitral tribunal may decide to hold the hearing virtually in accordance with the practice of the International Bureau. The parties shall be informed of this practice in a timely manner. In such cases, paragraph 1, mutatis mutandis, and paragraph 3 shall apply. & /en 27  ARTICLE III.13 Default 1. If, within the time limit set by this Appendix or by the arbitral tribunal, without showing sufficient cause, the applicant has not submitted its statement of claim, the arbitral tribunal shall order the closure of the arbitration proceedings, unless there are outstanding questions on which a ruling may be necessary and if the arbitral tribunal considers it appropriate to do so. If, within the time limit set by this Appendix or by the arbitral tribunal, without showing sufficient cause, the defendant has not submitted its response to the notice of arbitration or its statement of defence, the arbitral tribunal shall order the continuation of the proceedings, without considering that default of itself to constitute acceptance of the applicant's allegations. The second subparagraph also applies where the applicant fails to submit a reply to a counterclaim. 2. If a party, duly convened in accordance with Article III.12(1), does not appear at a hearing and does not demonstrate sufficient cause for its failure to do so, the arbitral tribunal may continue the arbitration. 3. If a party, duly invited by the arbitral tribunal to produce further evidence, fails to do so within the time limits set without showing sufficient cause for its failure to do so, the arbitral tribunal may rule on the basis of the evidence it has available. & /en 28  ARTICLE III.14 Closure of the procedure 1. Where it is demonstrated that the parties have reasonably had the possibility of presenting their arguments, the arbitral tribunal may declare the closure of the proceedings. 2. The arbitral tribunal may, if it considers it necessary because of exceptional circumstances, decide on its own initiative or at the request of a party to reopen the proceedings at any time before it has taken its decision. CHAPTER IV DECISION ARTICLE IV.1 Decisions The arbitral tribunal shall strive to take its decisions by consensus. If, however, it proves impossible to take a decision by consensus, the arbitral tribunal's decision shall be taken by a majority of the arbitrators. & /en 29  ARTICLE IV.2 Form and effect of the decision of the arbitral tribunal 1. The arbitral tribunal may take separate decisions on different questions at different times. 2. All decisions shall be issued in writing and shall state the reasons on which they are based. They shall be final and binding on the parties. 3. The decision of the arbitral tribunal shall be signed by the arbitrators, shall contain the date on which it was taken and state the place of arbitration. A copy of the decision signed by the arbitrators shall be communicated to the parties by the International Bureau. 4. The International Bureau shall make the decision of the arbitral tribunal public. When making the decision of the arbitral tribunal public, the International Bureau shall respect the relevant rules on the protection of personal data, professional secrecy and the legitimate interests of confidentiality. The rules referred to in the second subparagraph shall be identical for all bilateral agreements in the fields of the internal market in which Switzerland participates as well as for the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution. The Joint Committee shall adopt and update those rules by a decision for the purposes of the Agreement. 5. The parties shall comply with all decisions of the arbitral tribunal without delay. & /en 30 6. In the cases referred to in Article 10(2) of the Protocol, having obtained the opinion of the parties, the arbitral tribunal shall set a reasonable time limit in the decision on the substance of the case to comply with its decision in accordance with Article 10(5) of the Protocol taking account of the parties' internal procedures. ARTICLE IV.3 Applicable law, rules of interpretation, mediator 1. The applicable law consists of the Agreement, the legal acts of the Union to which reference is made therein, as well as any other rule of international law relevant to the application of those instruments. 2. The arbitral tribunal shall decide in accordance with the rules of interpretation referred to in Article 7 of the Protocol. 3. Prior decisions taken by a dispute settlement body with regard to the proportionality of compensatory measures under another bilateral agreement among those referred to in Article 11(1) of the Protocol shall be binding upon the arbitral tribunal. 4. The arbitral tribunal shall not be permitted to decide as mediator or ex aequo et bono. & /en 31  ARTICLE IV.4 Mutually agreed solution or other reasons for closure of the proceedings 1. The parties may, at any time, mutually agree a solution to their dispute. They shall jointly communicate any such solution to the arbitral tribunal. If the solution requires approval pursuant to the relevant domestic procedures of either party, the notification shall refer to that requirement, and the arbitration procedure shall be suspended. If such approval is not required, or upon notification of the completion of any such domestic procedures, the arbitration procedure shall be closed. 2. If, in the course of proceedings, the applicant informs the arbitral tribunal in writing that it does not wish to further pursue the proceedings, and if, at the date on which that communication is received by the arbitral tribunal, the defendant has not yet taken any step in the proceedings, the arbitral tribunal shall issue an order officially recording the closure of the proceedings. The arbitral tribunal shall decide on the costs, which shall be borne by the applicant, if this appears justified by the conduct of that party. 3. If, before the decision of the arbitral tribunal is taken, the arbitral tribunal concludes that the continuation of the proceedings has become pointless or impossible for any reason other than those referred to in paragraphs 1 and 2, the arbitral tribunal shall inform the parties of its intention to issue an order closing the proceedings. The first subparagraph does not apply where there are outstanding questions on which it may be necessary to rule and if the arbitral tribunal judges it appropriate to do so. & /en 32 4. The arbitral tribunal shall communicate to the parties a copy of the order closing the arbitration proceedings or of the decision taken by agreement between the parties, signed by the arbitrators. Article IV.2(2) to (5) shall apply to arbitration decisions taken by agreement between the parties. ARTICLE IV.5 Correction of the decision of the arbitral tribunal 1. Within 30 days of receiving the decision of the arbitral tribunal, a party may, by giving notice to the other party and to the arbitral tribunal through the International Bureau, ask the arbitral tribunal to correct in the text of the decision of the arbitral tribunal any errors in computation, any clerical or typographical errors, or any errors or omissions of a similar nature. If it considers the request to be justified, the arbitral tribunal shall make the correction within 45 days of receiving the request. The request shall not have a suspensive effect on the time limit provided for in Article IV.2(6). 2. The arbitral tribunal may, within 30 days of communicating its decision, make the corrections referred to in paragraph 1 on its own initiative. 3. The corrections referred to in paragraph 1 of this Article shall be done in writing and form an integral part of the decision. Article IV.2(2) to (5) shall apply. & /en 33  ARTICLE IV.6 Arbitrators' fees 1. The fees referred to in Article IV.7 shall be reasonable, taking account of the complexity of the case, the time spent on it by the arbitrators and all other relevant circumstances. 2. A list of daily compensation and maximum and minimum hours, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution, shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. ARTICLE IV.7 Costs 1. Each party shall bear its own costs and half of the costs of the arbitral tribunal. 2. The arbitral tribunal shall set its costs in its decision on the substance of the case. Those costs shall include only: (a) the arbitrators' fees, to be stated separately for each arbitrator and to be set by the arbitral tribunal itself in accordance with Article IV.6; & /en 34 (b) the travel and other expenses incurred by the arbitrators; and (c) the fees and expenses of the International Bureau. 3. The costs referred to in paragraph 2 shall be reasonable, taking account of the amount in dispute, the complexity of the dispute, the time that the arbitrators and any experts appointed by the arbitral tribunal have spent on it and any other relevant circumstances. ARTICLE IV.8 Deposit of costs 1. At the start of the arbitration, the International Bureau may ask the parties to deposit an equal amount as an advance for the costs referred to in Article IV.7(2). 2. During the arbitration proceedings, the International Bureau may request from the parties deposits supplementary to those referred to in paragraph 1. 3. All amounts deposited by the parties in application of this Article shall be paid to the International Bureau and paid out by it to cover the costs actually incurred, including, in particular, the fees paid to the arbitrators and to the International Bureau. & /en 35  CHAPTER V FINAL PROVISIONS ARTICLE V.1 Amendments The Joint Committee may adopt, by decision, amendments to this Appendix. & /en 36  STATE AID PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON THE CARRIAGE OF GOODS AND PASSENGERS BY RAIL AND ROAD & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", of the one part, and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", of the other part, hereinafter individually referred to as a "Contracting Party" and jointly referred to as the "Contracting Parties", AIMING to strengthen and deepen the participation of Switzerland and its undertakings in the internal market of the Union, in which Switzerland participates on the basis of the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road, done in Luxembourg on 21 June 1999 (hereinafter referred to as the "Agreement"); RECOGNISING that the proper functioning and homogeneity in the fields of the internal market in which Switzerland participates requires a level playing field for competition between Swiss and Union undertakings based on substantive and procedural rules equivalent to those that apply in the internal market as regards State aid; REAFFIRMING the autonomy of the Contracting Parties and the role and competences of their institutions and, as far as Switzerland is concerned, respect for the principles deriving from its constitutional order, including direct democracy, the separation of powers, and federalism; HAVE AGREED AS FOLLOWS: & /en 1  ARTICLE 1 Objectives The objectives of this Protocol are to ensure a level playing field for competition between Union and Swiss undertakings in the fields of the internal market falling under the scope of the Agreement and to guarantee the proper functioning of the internal market by laying down substantive and procedural rules on State aid. ARTICLE 2 Relation to the Agreement This Protocol and its Annexes shall form an integral part of the Agreement. They shall alter neither the scope nor the objectives of the Agreement. ARTICLE 3 State aid 1. Save as otherwise provided in the Agreement, any aid granted by Switzerland or by a Member State of the Union, or through State resources in any form whatsoever, which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between the Contracting Parties within the scope of the Agreement, be incompatible with the proper functioning of the internal market. & /en 2 2. The following shall be compatible with the proper functioning of the internal market: (a) aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned; (b) aid to make good the damage caused by natural disasters or exceptional occurrences; (c) aid that meets the needs of coordination of transport or that represents reimbursement for the discharge of certain obligations inherent in the concept of a public service; (d) the measures set out in Section A of Annex I. 3. The following may be considered to be compatible with the proper functioning of the internal market: (a) aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment; (b) aid to promote the execution of an important project of common European interest, or of common interest to the Contracting Parties, or to remedy a serious disturbance in the economy of a Member State of the Union or Switzerland; (c) aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the interest of the Contracting Parties; & /en 3 (d) aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition to an extent contrary to the interest of the Contracting Parties; (e) the categories of aid set out in Section B of Annex I. 4. Aid granted in accordance with Section C of Annex I shall be presumed compatible with the proper functioning of the internal market and shall be exempted from notification requirements under Article 4. 5. Aid granted to undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the rules contained in this Protocol, in so far as the application of these rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interest of the Contracting Parties. 6. This Protocol shall not apply to aid where the amount granted to a single undertaking for activities within the scope of the Agreement constitutes de minimis aid as set out in Section D of Annex I. 7. The Joint Committee may decide to update Sections A and B of Annex I by specifying measures that shall be compatible, or categories of aid that may be considered to be compatible, with the proper functioning of the internal market. & /en 4  ARTICLE 4 Surveillance 1. For the purposes of Article 1, the Union, in accordance with the distribution of competences between the Union and its Member States, and Switzerland, in accordance with its constitutional order of competences, shall supervise the application of State aid rules in their respective territory in accordance with this Protocol. 2. For the purposes of the implementation of this Protocol, the Union shall maintain a State aid surveillance system in accordance with Articles 93, 106, 107 and 108 of the Treaty on the Functioning of the European Union as supplemented by Union legal acts in the field of State aid and Union legal acts concerning State aid in the carriage of goods and passengers by rail and road sectors listed in point 1 of Section A of Annex II. 3. For the purposes of the implementation of this Protocol, Switzerland shall, within five years of the entry into force of this Protocol, establish and maintain a State aid surveillance system that ensures at all times a level of surveillance and enforcement equivalent to that applied in the Union, as set out in paragraph 2, including the following: (a) an independent surveillance authority; and (b) procedures to ensure the review by the surveillance authority of the compatibility of aid with the proper functioning of the internal market, including the following: (i) prior notification to the surveillance authority of planned aid; & /en 5  (ii) assessment by the surveillance authority of notified aid and its competence to review non-notified aid; (iii) challenge before the competent judicial authority, with suspensive effect from the moment the act is challengeable, of aid that the surveillance authority considers to be incompatible with the proper functioning of the internal market; and (iv) recovery, including interest, of aid granted and found incompatible with the proper functioning of the internal market. 4. In accordance with Switzerland's constitutional order of competences, paragraph 3, point (b)(iii) and (iv), does not apply to acts of the Swiss Federal Assembly or of the Swiss Federal Council. 5. Where the Swiss surveillance authority cannot challenge the aid of the Swiss Federal Assembly or of the Swiss Federal Council before a judicial authority due to its limitations of competence under the Swiss constitutional order, it shall challenge the application by other authorities of that aid in all specific cases. If the judicial authority finds that that aid is incompatible with the proper functioning of the internal market, the competent Swiss judicial and administrative authorities shall take that finding into account when assessing whether to apply that aid in the case before them. & /en 6  ARTICLE 5 Existing aid 1. Article 4(3), point (b) shall not apply to existing aid, including aid schemes and individual aid. 2. For the purposes of this Protocol, existing aid shall include aid granted before the entry into force of this Protocol and within a period of five years thereof. 3. Within twelve months of the date of establishment of the surveillance system pursuant to Article 4(3), the surveillance authority shall gain an overview of existing aid schemes within the scope of the Agreement that are still in force and make a prima facie assessment of those schemes against the criteria set out in Article 3. 4. All existing aid schemes in Switzerland shall be subject to constant review by the surveillance authority as to their compatibility with the proper functioning of the internal market pursuant to paragraphs 5, 6 and 7. 5. If the surveillance authority considers that an existing aid scheme is not, or is no longer, compatible with the proper functioning of the internal market, it shall inform the competent authorities about the obligation to comply with this Protocol. If such an aid scheme is amended or terminated, the competent authorities shall inform the surveillance authority. 6. If the surveillance authority considers the measures taken by the competent authorities to be appropriate to ensure the compatibility of the aid scheme with the proper functioning of the internal market, it shall publish those measures. & /en 7 7. Notwithstanding paragraph 1 of this Article, if the surveillance authority considers that the aid scheme remains incompatible with the proper functioning of the internal market, the surveillance authority shall publish its assessment and challenge the application of that aid scheme in all specific cases, in accordance with Article 4(3), point (b)(iii), and Article 4(5). 8. For the purposes of this Protocol, if an existing aid scheme is amended in such a way as to affect the compatibility of the aid with the proper functioning of the internal market, the aid shall be considered to be new aid and shall therefore be subject to Article 4(3), point (b). ARTICLE 6 Transparency 1. With regard to aid granted in their territory, the Contracting Parties shall ensure transparency. For the Union, transparency shall be based on substantive and procedural rules that apply in the Union on State aid within the scope of the Agreement. For Switzerland, transparency shall be based on substantive and procedural rules equivalent to those that apply in the Union on State aid within the scope of the Agreement. 2. Each Contracting Party shall, in respect of its territory and unless otherwise provided in this Protocol, ensure the publication of: (a) aid granted; (b) opinions or decisions of its surveillance authorities; & /en 8 (c) rulings of its competent judicial authorities on the compatibility of aid with the proper functioning of the internal market; and (d) guidelines and communications applied by its surveillance authorities. ARTICLE 7 Terms of cooperation 1. The Contracting Parties shall cooperate and exchange information on State aid, subject to their respective laws and available resources. 2. For the purposes of the uniform implementation, application and interpretation of the substantive rules on State aid and of harmonious development thereof: (a) the Contracting Parties shall cooperate and consult each other with regard to the relevant guidelines and communications referred to in Section B of Annex II; and (b) the surveillance authorities of the Contracting Parties shall conclude arrangements for a regular exchange of information, including on the implications for the application of rules on existing aid. & /en 9  ARTICLE 8 Consultations 1. At the request of a Contracting Party, the Contracting Parties shall consult each other, within the Joint Committee, on matters relating to the implementation of this Protocol. 2. In the event of developments concerning important interests of a Contracting Party that may affect the operation of this Protocol, the Joint Committee shall, at the request of a Contracting Party, meet at an appropriately high level within 30 days of that request in order to discuss the matter. ARTICLE 9 Integration of legal acts 1. Notwithstanding Article 5 of the Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road (hereinafter referred to as the "Institutional Protocol"), for the purposes of Article 3(4) and (6) and Article 4(2) and (3), and in order to guarantee legal certainty and the homogeneity of the law in the fields of the internal market in which Switzerland participates by virtue of the Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the fields covered by Sections C and D of Annex I as well as Section A of Annex II are integrated into those Annexes as quickly as possible after their adoption. & /en 10 2. When it adopts a legal act in the field covered by Sections C and D of Annex I or Section A of Annex II, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. 3. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend Sections C and D of Annex I as well as Section A of Annex II, including the necessary adaptations. 4. Subject to Article 6 of the Institutional Protocol, decisions of the Joint Committee pursuant to paragraph 3 of this Article shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. ARTICLE 10 Entry into force 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; & /en 11 (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) State aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (i) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; & /en 12 (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. ARTICLE 11 Amendment and termination 1. This Protocol may be amended at any time by mutual agreement of the Contracting Parties. 2. Where the Agreement is terminated in accordance with Article 58(3) of the Agreement, this Protocol shall cease to be in force on the date referred to in Article 58(4) of the Agreement. 3. Where the Agreement ceases to be in force, the rights and obligations that individuals and undertakings have already acquired by virtue of the Agreement before the date of the cessation of the Agreement shall be preserved. The Contracting Parties shall settle by mutual agreement what action is to be taken in respect of rights in the process of being acquired. & /en 13 Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 14  ANNEX I EXEMPTIONS AND CLARIFICATIONS SECTION A MEASURES COMPATIBLE WITH THE PROPER FUNCTIONING OF THE INTERNAL MARKET, AS REFERRED TO IN ARTICLE 3(2), POINT (d) The following measures shall be compatible with the proper functioning of the internal market and shall not be subject to Article 4(3), point (b): […]. SECTION B CATEGORIES OF AID THAT MAY BE CONSIDERED TO BE COMPATIBLE WITH THE PROPER FUNCTIONING OF THE INTERNAL MARKET, AS REFERRED TO IN ARTICLE 3(3), POINT (e) The following categories of aid may be considered to be compatible with the proper functioning of the internal market: […]. & /en 1  SECTION C BLOCK EXEMPTIONS, AS REFERRED TO IN ARTICLE 3(4) Aid shall be presumed compatible with the proper functioning of the internal market and shall be exempted from the notification requirements under Article 4 if it is granted in accordance with the substantive conditions set out in the following provisions: (1) Chapters I and III of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, (OJ L 187, 26.6.2014, p. 1), as last amended by Commission Regulation (EU) 2023/1315 of 23 June 2023 (OJ L 167, 30.6.2023, p. 1); (2) Article 9 of Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road and repealing Council Regulations (EEC) Nos 1191/69 and 1107/70, (OJ L 315, 3.12.2007, p. 1), as last amended by Regulation (EU) 2016/2338 of 14 December 2016 (OJ L 354, 23.12.2016, p. 22). For Switzerland, Article 9 shall be understood with the exception of Articles 5 and 5a of that Regulation, under the terms referred to in Article 24a(5) of the Agreement. & /en 2  SECTION D DE MINIMIS AID, AS REFERRED TO IN ARTICLE 3(6) "De minimis aid" shall have the meaning that it has in Commission Regulation (EU) No 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ L, 2023/2831, 15.12.2023). For aid granted to undertakings entrusted with the operation of services of general economic interest, "de minimis aid" shall have the meaning that it has in Commission Regulation (EU) No 2023/2832 of 12 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest (OJ L, 2023/2832, 15.12.2023). ________________ & /en 3  ANNEX II GENERAL AND SECTORAL ACTS APPLICABLE IN THE EUROPEAN UNION AS REFERRED TO IN ARTICLE 4(2) SECTION A GENERAL AND SECTORAL ACTS (1) For the purposes of this Protocol and pursuant to Article 4(2), the following acts shall be applied by the Union: (a) Council Regulation (EU) 2015/1589 of 13 July 2015 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (OJ L 248, 24.9.2015, p. 9); (b) Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EU) 2015/1589 (OJ L 140, 30.4.2004, p. 1), as last amended by Commission Regulation (EU) 2016/2105 of 1 December 2016 (OJ L 327, 2.12.2016, p. 19); (c) Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p. 1), as last amended by Commission Regulation (EU) 2023/1315 of 23 June 2023 (OJ L 167, 30.6.2023, p. 1); & /en 1  (d) Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ L, 2023/2831, 15.12.2023); (e) Commission Regulation (EU) 2023/2832 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest (OJ L, 2023/2832, 15.12.2023); (f) Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road and repealing Council Regulations (EEC) Nos 1191/69 and 1107/70, (OJ L 315, 3.12.2007, p. 1), as last amended by Regulation (EU) 2016/2338 of the European Parliament and of the Council of 14 December 2016 (OJ L 354, 23.12.2016, p. 22). (2) For the purposes of this Protocol and pursuant to Article 4(3), Switzerland shall establish and maintain a State aid surveillance system that ensures at all times a level of surveillance and enforcement equivalent to that applied by the Union, as set out in Article 4(2) and point (1) of this Section. & /en 2  SECTION B GUIDELINES, COMMUNICATIONS AND DECISIONAL PRACTICE OF THE EUROPEAN COMMISSION (1) For the purposes of this Protocol and pursuant to Article 4(3), the Swiss surveillance authority and the competent judicial authorities in Switzerland shall take due account of, and follow to the extent possible, the relevant guidelines and communications binding on the European Commission, as well as its decisional practice, in order to ensure a level of surveillance and enforcement equivalent to that of the Union. (2) The European Commission shall notify to the Joint Committee, and publish, the guidelines and communications it considers relevant under the Agreement. ________________ & /en 3 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 4 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  AMENDING PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON MUTUAL RECOGNITION IN RELATION TO CONFORMITY ASSESSMENT & /en THE EUROPEAN UNION, hereinafter referred to as the "Union" and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", hereinafter referred to as the "Contracting Parties"; HAVING REGARD to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment, done in Luxembourg on 21 June 1999, which entered into force on 1 June 2002 (hereinafter referred to as "the Agreement"); WHEREAS a broad bilateral package, including the Institutional Protocol to this Agreement, has been agreed between the Contracting Parties in order to stabilise and develop mutual relations in the fields related to the internal market in which Switzerland participates; WHEREAS, in the framework of that broad bilateral package, it is necessary to update certain provisions of the Agreement, HAVE AGREED AS FOLLOWS: & /en 1  ARTICLE 1 Amendments to the Agreement The Agreement is amended as follows: (1) Article 1 is replaced by the following text: "ARTICLE 1 Purpose 1. The Community and Switzerland hereby grant mutual acceptance of reports, certificates, authorisations and conformity marks issued by the bodies recognised in accordance with the procedures of this Agreement (hereinafter "recognised conformity assessment bodies") and of the manufacturer's declarations of conformity certifying conformity to the requirements of the other Party with regard to products under Chapter 11, Section I, point A of Annex 1 at the time of entry into force of the amending Protocol to this Agreement. & /en 2  2. In order to avoid duplication of procedures, the Community and Switzerland shall mutually accept reports, certificates and authorisations issued by recognised conformity assessment bodies and manufacturer's declarations of conformity certifying conformity to their respective requirements in the areas covered by Article 3. Reports, certificates, authorisations and manufacturer's declarations of conformity shall indicate conformity with the Community legislation and may refer to the corresponding Swiss provisions adopted or maintained pursuant to Article 5(2) of the Institutional Protocol. Conformity marks required by the legislation of one of the Parties shall be affixed to products placed on the market of that Party."; (2) Article 3 is replaced by the following text: "ARTICLE 3 Scope 1. This Agreement covers the obligatory conformity assessment procedures ensuing from the legislative, regulatory and administrative provisions listed in Annex 1 and as regards provisions covered by Article 1(2), the corresponding Swiss provisions adopted or maintained in accordance with Article 5(2) of the Institutional Protocol. & /en 3  2. Annex 1 defines the product sectors covered by this Agreement. The Annex is divided up into sectoral chapters and these are subdivided in principle as follows: Section I: Legislative, regulatory and administrative provisions; Section II: Conformity assessment bodies; Section III: Designating authorities; Section IV: Special rules relating to the designation of conformity assessment bodies; Section V: Any additional provisions. 3. Annex 2 sets out general rules applicable to the designation of conformity assessment bodies."; (3) Article 9 is replaced by the following text: "ARTICLE 9 Implementation of the Agreement 1. The Parties shall cooperate with a view to ensuring the satisfactory application of the legislative, regulatory and administrative provisions listed in Annex 1 and as regards provisions covered by Article 1(2), the corresponding Swiss provisions adopted or maintained in accordance with Article 5(2) of the Institutional Protocol. & /en 4  2. The designating authorities shall ascertain by appropriate means whether the recognised conformity assessment bodies under their jurisdiction are observing the general principles of designation listed in Annex 2, subject to the provisions listed in the respective section IV in Annex 1. 3. The recognised conformity assessment bodies shall cooperate in an appropriate way in the framework of the coordination and comparison work conducted by each of the Parties in respect of the sectors covered by Annex 1 in order to ensure that the conformity assessment procedures provided for in the laws and regulations of the Parties covered by this Agreement are applied in a consistent manner. The designating authorities shall use their best endeavours to ensure that recognised conformity assessment bodies cooperate in an appropriate way."; (4) Article 10 is replaced by the following text: "ARTICLE 10 Joint Committee 1. A Joint Committee (hereinafter referred as "the Committee") is hereby established. The Committee shall be composed of representatives of the Parties. 2. The Committee shall be co-chaired by a representative of the Union and a representative of Switzerland. & /en 5 3. The Committee shall: (a) ensure the proper functioning and the effective administration and application of this Agreement; (b) provide a forum for mutual consultation and a continuous exchange of information between the Parties, in particular with a view to finding a solution to any difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement in accordance with Article 10 of the Institutional Protocol to this Agreement; (c) make recommendations to the Parties in matters pertaining to this Agreement; (d) adopt decisions where provided for in this Agreement and adopt, on the proposal by one of the Parties, a decision to add chapters to Annex 1 of this Agreement; and (e) be responsible for: – drawing up the procedure for carrying out the verifications provided for in Article 7; – drawing up the procedure for carrying out the verifications provided for in Article 8; & /en 6  – deciding on the recognition of conformity assessment bodies contested under Article 8; – deciding on the withdrawal of recognition of recognised conformity assessment bodies contested under Article 8; and – where necessary to ensure coherence, upon proposal by one of the Parties, adopt a decision to modify Annex 2. 4. The Committee shall act by consensus. Decisions shall be binding on the Parties, which shall take all necessary measures to implement them. 5. The Committee shall meet at least once a year, in Brussels and Bern alternately, unless the co-chairs decide otherwise. It shall also meet at the request of either Party. The co-chairs may agree that a meeting of the Committee be held by videoconference or teleconference. 6. The Committee shall adopt its rules of procedure and update them as necessary. 7. The Committee may decide to set up any working party or group of experts that can assist it in carrying out its duties."; & /en 7 (5) Article 11 is replaced by the following text: "ARTICLE 11 Recognition, withdrawal of recognition, modification of the scope, and suspension of conformity assessment bodies 1. The following procedure shall apply for the recognition of conformity assessment bodies in relation to the requirements set out in the relevant Chapters of Annex 1 and as regards provisions covered by Article 1(2), the corresponding Swiss provisions adopted or maintained according to Article 5(2) of the Institutional Protocol: (a) A Party wishing to have recognised any conformity assessment body shall notify the other Party in writing of its proposal, to that effect, adding the appropriate information to its request. (b) If the other Party agrees to the proposal or raises no objection within 60 days of the notification of the proposal, the conformity assessment body shall be considered to be a recognised conformity assessment body under the terms of Article 5. (c) If the other Party raises objections in writing within that 60-day period, Article 8 shall apply. & /en 8 2. A Party can withdraw or suspend the recognition or remove the suspension of recognition of a conformity assessment body under its jurisdiction. The Party concerned shall immediately notify the other Party of its decision in writing, together with the date of such decision. The withdrawal, suspension, or removal of suspension shall take effect at that date. Such withdrawal or suspension shall be indicated in the common list of recognised conformity assessment bodies referred to in Annex 1. 3. A Party can propose that the scope of activity of a recognised conformity assessment body under its jurisdiction be amended. For scope extensions and scope reductions the procedures provided for in Article 11(1) and (2) respectively shall apply. 4. A Party can, in exceptional circumstances, contest the technical competence of a recognised conformity assessment body under the jurisdiction of the other Party. In this case Article 8 shall apply. 5. Reports, certificates, authorisations and conformity marks issued by a conformity assessment body after the date at which its recognition has been withdrawn or suspended need not be recognised by the Parties. Reports, certificates, authorisations and conformity marks issued by a conformity assessment body before the date its recognition has been withdrawn shall continue to be recognised by the Parties unless the responsible designating authority has limited or cancelled their validity. The Party under whose jurisdiction the responsible designating authority is operating shall notify the other Party in writing of any such changes relating to a limitation or cancellation of validity."; & /en 9 (6) Article 12 is repealed; (7) Article 13 is amended as follows: (a) the title is replaced by the following: "Professional Secrecy"; (b) the following text is inserted as second paragraph: "Technical adaptations of the relevant chapters of Annex 1 may set out specific provision for the protection of information as referred to in the first paragraph."; (8) a new Article is inserted as follows: "ARTICLE 13bis Classified information and sensitive non-classified information 1. Nothing in this Agreement shall be construed as requiring a Party to make available classified information. 2. Classified information or material provided by, or exchanged between, the Parties under this Agreement shall be handled and protected in compliance with the Agreement between the Swiss Confederation and the European Union on the security procedures for the exchange of classified information, done at Brussels on 28 April 2008, and any security arrangement implementing it. & /en 10  3. The Committee shall adopt, by means of a decision, handling instructions to ensure the protection of sensitive non-classified information exchanged between the Parties."; (9) Article 17 is replaced by the following text: "ARTICLE 17 Territorial application This Agreement shall apply, of the one part, to the territory in which the Treaty on European Union and the Treaty on the Functioning of the European Union apply and under the conditions laid down in those Treaties, and, of the other part, to the territory of Switzerland.". & /en 11  ARTICLE 2 Amendments to Annex 1 Annex 1 is amended as follows: (1) the following text is inserted after the list of chapters: "GENERAL PROVISIONS ARTICLE 1 Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland. This shall be applied in full respect for the Institutional Protocol to this Agreement. For the purposes of clarity, given the specificities of this Agreement, the foregoing shall only apply where those rights and obligations fall under the scope of this Agreement. ARTICLE 2 1. Where a Member State of the Union is to submit information to the European Commission (the 'Commission'), Switzerland shall submit such information to the Commission via the Committee. Where the Commission is to submit information to one or more Member States of the Union, where Switzerland is concerned, the Commission shall submit such information to Switzerland via the Committee, unless otherwise provided for in technical adaptations to the specific chapters of this Annex. & /en 12 2. Where the competent authorities of the Member States of the Union are to submit information to the competent authorities of another Member State of the Union, they shall also submit that information to the competent authorities of Switzerland while informing the Commission unless otherwise provided for in technical adaptations to the specific chapters of this Annex. The competent authorities of Switzerland shall submit information to the competent authorities of the Member States of the Union and inform the Commission. 3. The Committee can, by means of technical adaptations to the specific chapters of this Annex agree on appropriate solutions providing for the direct exchange of information in areas where the rapid transfer of information is called for. 4. Paragraphs 1 and 2 are without prejudice to the sector-specific rules and arrangements applicable to the exchange of information by means of information systems. ARTICLE 3 Where a legal act of the Union set out in this Annex requires the competent authorities of the Member States of the Union or the economic operators in the Member States of the Union to provide information or data by means of digital tools, and where it is relevant for the implementation of this Agreement, each specific chapter of this Annex shall establish whether the Swiss competent authorities and the economic operators in Switzerland may provide such information and/or data by using the relevant Swiss interface. Where a specific Chapter in this Annex allows for the use of such interface, the extent and conditions of such use shall be agreed and established in the same Chapter. & /en 13  ARTICLE 4 1. Whenever the legal acts of the Union set out in this Annex, or the corresponding Swiss provisions adopted or maintained in accordance with Article 5(2) of the Institutional Protocol, assign specific obligations to economic operators, persons or entities established in the Union or Switzerland, respectively, the obligations can, when it is relevant for the purposes of the implementation of this Agreement, also be fulfilled by economic operators, persons or entities established in Switzerland or in the Union, respectively, unless otherwise provided for in technical adaptations to the specific chapters of this Annex. 2. Whenever the legal acts of the Union set out in this Annex or the corresponding Swiss provisions adopted or maintained in accordance with Article 5(2) of the Institutional Protocol, provide that a specific item of information is to be made available to the competent authorities of a Party by an economic operator, person or entity as referred to in the first paragraph of this Article, these authorities may contact the competent authorities of the other Party or enter into direct contact with these economic operators, persons or entities in the territory of the other Party, in order to obtain that information."; (2) in Chapter 4, the following sentence will be inserted in a position to be determined when the technical work is carried out: "For the purpose of clarity, Switzerland will participate in the Committee on Medical Devices and in the Medical Device Coordination Group as an observer, in accordance with the relevant rules of procedure."; & /en 14 (3) in Chapter 5, the following paragraph is inserted after the title: "This Chapter covers the appliances burning gaseous fuels as defined in Regulation (EU) 2016/426, listed under point 1 of Section I of this Chapter as well as the energy efficiency and emissions requirements relating to hot-water boilers fired with liquid or gaseous fuels as defined in Directive 92/42 CEE listed under point 2 of Section I of this Chapter."; (4) in Chapter 5, Section I is replaced by the following text: "Section I Legislative, regulatory and administrative provisions Provisions covered by Article 1 paragraph 2 European Union 1. Regulation (EU) 2016/426 of the European Parliament and of the Council of 9 March 2016 on appliances burning gaseous fuels and repealing Directive 2009/142/EC (OJ L 81, 31.3.2016, p. 99). 2. Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water boilers fired with liquid or gaseous fuels (OJ L 167, 22.6.1992, p. 17), as last amended by Commission Regulation (EU) No 813/2013 of 2 August 2013 implementing Directive 2009/125/EC of the European Parliament and of the Council with regard to ecodesign requirements for space heaters and combination heaters (OJ L 239, 6.9.2013, p. 136)."; & /en 15 (5) In Chapter 11, Section I is replaced by the following text: "Section I Legislative, regulatory and administrative provisions A. Provisions covered by Article 1 paragraph 1 European Union 1. Directive 2007/45/EC of the European Parliament and of the Council of 5 September 2007 laying down rules on nominal quantities for prepacked products, repealing Council Directives 75/106/EEC and 80/232/EEC, and amending Council Directive 76/211/EEC (OJ L 247, 21.9.2007, p. 17) applicable as from 11 April 2009. Switzerland 100. Ordinance of 5 September 2012 on the declaration of quantities for unpackaged and prepackaged products (RS 941.204), as subsequently amended. 101. Ordinance of the Federal Ministry of Justice and Police of 10 September 2012 on the declaration of quantities for unpackaged and prepackaged products (RS 941.204.1), as subsequently amended. & /en 16 B. Provisions covered by Article 1 paragraph 2 European Union 1. Directive 2009/34/EC of the European Parliament and of the Council of 23 April 2009 relating to common provisions for both measuring instruments and methods of metrological control (Recast) (OJ L 106, 28.04.2009, p. 7). 2. Council Directive 75/107/EEC of 19 December 1974 on the approximation of the laws of the Member States relating to bottles used as measuring containers (OJ L 42, 15.2.1975, p. 14). 3. Council Directive 76/211/EEC of 20 January 1976 on the approximation of the laws of the Member States relating to the making up by weight or by volume of certain prepackaged products (OJ L 46, 21.2.1976, p. 1). 4. Council Directive 80/181/EEC of 20 December 1979 on the approximation of the laws of the Member States relating to units of measurement and on the repeal of Directive 71/354/EEC (OJ L 39, 15.2.1980, p. 40) as last amended by Directive 2009/3/EC of the European Parliament and of the Council of 11 March 2009 (OJ L 114, 7.5.2009, p. 10). 5. Directive 2014/31/UE of the European Parliament and of the Council of 26 February 2014 on the harmonisation of the laws of the Member States relating to the making available on the market of non-automatic weighing instruments (OJ L 96, 29.3.2014, p. 107). 6. Directive 2014/32/EU of the European Parliament and of the Council of 26 February 2014 on the harmonisation of the laws of the Members States relating to the making available on the market of measuring instruments (OJ L 96, 29.3.2014, p. 149). & /en 17  7. Directive 2011/17/EU of the European Parliament and of the Council of 9 March 2011 repealing Council Directives 71/317/EEC, 71/347/EEC, 71/349/EEC, 74/148/EEC, 75/33/EEC, 76/765/EEC, 76/766/EEC and 86/217/EEC regarding metrology (OJ L 71, 18.3.2011, p. 1)."; (6) In Chapter 15, the following sentence will be inserted in a position to be determined when the technical work is carried out: "Notwithstanding Article 4 of the Institutional Protocol, Switzerland shall not participate in, and Switzerland’s experts shall not be consulted on the preparation of, the proposals and drafts referred to therein relating to the development, manufacture, placing on the market and use of medicinal products including, in the context of procedures related to medicinal products. The application by Switzerland of the relevant provisions of the legal acts of the Union listed in this Section, as per Article 1 of Annex 1, shall not give the right to Switzerland to participate in the European Medicines Agency with the exception of participation as an observer in the meetings of GMDP Inspectors Working Group, in accordance with relevant rules of procedure.". ARTICLE 3 Entry into force 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. & /en 18 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; & /en 19 (h) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (i) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (j) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. & /en 20 Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 21  INSTITUTIONAL PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE SWISS CONFEDERATION ON MUTUAL RECOGNITION IN RELATION TO CONFORMITY ASSESSMENT & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", hereinafter referred to as the "Contracting Parties"; WHEREAS the Union and Switzerland are bound by numerous bilateral agreements covering various fields, providing for specific rights and obligations similar, in certain respects, to those provided for within the Union; RECALLING that the purpose of those bilateral agreements is to increase Europe's competitiveness and to create closer economic ties between the Contracting Parties, based on equality, reciprocity and the general balance of their advantages, rights and obligations; RESOLVED to strengthen and deepen Switzerland's participation in the internal market of the Union, on the basis of the same rules as those that apply to the internal market, while preserving their independence and that of their institutions and, as regards Switzerland, respect for the principles stemming from direct democracy, federalism and the sectoral nature of its participation in the internal market; & /en 1 REAFFIRMING that the competence of the Swiss Federal Supreme Court and all other Swiss courts as well as that of the Member States' courts and of the Court of Justice of the European Union to interpret the Agreement in individual cases is preserved; CONSCIOUS of ensuring uniformity in the fields related to the internal market in which Switzerland participates, both current and future, HAVE AGREED AS FOLLOWS: & /en 2  CHAPTER 1 GENERAL PROVISIONS ARTICLE 1 Objectives 1. The objective of this Protocol is to guarantee for the Contracting Parties, and for economic operators and individuals, greater legal certainty, equal treatment and a level playing field in the field related to the internal market falling under the scope of the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment, done at Luxembourg on 21 June 1999 (hereinafter referred to as the "Agreement"). 2. To this end, this Protocol provides new institutional solutions facilitating a continuous and balanced strengthening of economic relations between the Contracting Parties. Taking account of the principles of international law, this Protocol lays down, in particular, institutional solutions for the Agreement which are common to the bilateral agreements concluded or to be concluded in the fields related to the internal market in which Switzerland participates, without changing the scope or the objectives of the Agreement, notably: (a) the procedure for aligning the Agreement with legal acts of the Union relevant to the Agreement; & /en 3 (b) the uniform interpretation and application of the Agreement and of the legal acts of the Union to which reference is made in the Agreement; (c) the surveillance and application of the Agreement; and (d) the settlement of disputes in the context of the Agreement. ARTICLE 2 Relation to the Agreement 1. This Protocol, its Annex and its Appendix shall form an integral part of the Agreement. 2. The provisions of the Agreement repealed by this Protocol are listed below: (a) Article 1(3); (b) Article 14; (c) Article 19. 3. References to the "European Community" or to the "Community" in the Agreement shall be construed as references to the Union. & /en 4  ARTICLE 3 Bilateral agreements in the fields related to the internal market in which Switzerland participates 1. Existing and future bilateral agreements between the Union and Switzerland in the fields related to the internal market in which Switzerland participates shall be considered as a coherent whole which ensures a balance of rights and obligations between the Union and Switzerland. 2. The Agreement constitutes a bilateral agreement in a field related to the internal market in which Switzerland participates. & /en 5  CHAPTER 2 ALIGNMENT OF THE AGREEMENT WITH LEGAL ACTS OF THE UNION ARTICLE 4 Participation in the drafting of legal acts of the Union ("decision shaping") 1. When drafting a proposal for a legal act of the Union in accordance with the Treaty on the Functioning of the European Union (hereinafter referred to as "TFEU") in the field covered by the Agreement, the European Commission (hereinafter referred to as the "Commission") shall inform Switzerland thereof and shall informally consult Switzerland's experts in the same way that it asks for the views of experts from the Member States of the Union for the drafting of its proposals. At the request of either Contracting Party, a preliminary exchange of views shall take place within the Joint Committee. The Contracting Parties shall consult each other again, at the request of either of them, within the Joint Committee at important moments of the phase preceding the adoption of the legal act by the Union, in a continuous process of information and consultation. 2. When preparing, in accordance with the TFEU, delegated acts concerning basic acts of Union law in the field covered by the Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts and shall consult Switzerland's experts on the same basis as it consults the experts of the Member States of the Union. & /en 6 3. When preparing, in accordance with the TFEU, implementing acts concerning basic acts of Union law in the field covered by the Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts to be submitted later on to the committees assisting the Commission in the exercise of its implementing powers and shall consult Switzerland's experts on the same basis as it consults the experts from the Member States of the Union. 4. Switzerland's experts shall be involved in the work of committees not covered by paragraphs 2 and 3 where this is required for the proper functioning of the Agreement. A list of those committees and, where appropriate, of other committees with similar characteristics, shall be drawn up and updated by the Joint Committee. 5. This Article shall not apply with regard to legal acts of the Union or provisions thereof falling within the scope of an exception referred to in Article 5(7). ARTICLE 5 Integration of legal acts of the Union 1. In order to guarantee legal certainty and the homogeneity of the law in the field related to the internal market in which Switzerland participates by virtue of the Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the field covered by the Agreement are integrated into the Agreement as quickly as possible after their adoption. & /en 7 2. Switzerland shall adopt or maintain provisions in its legal order with a view to achieving the result to be attained by the legal acts of the Union integrated into the Agreement in accordance with paragraph 4 subject, as the case may be, to the adaptations decided upon by the Joint Committee. 3. When it adopts a legal act in the field covered by the Agreement, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. 4. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend the Annex 1 to the Agreement, including the necessary adaptations. 5. Without prejudice to paragraphs 1 and 2, if necessary in order to ensure coherence of the Agreement with Annex 1 as amended pursuant to paragraph 4, the Joint Committee may propose, for approval by the Contracting Parties according to their internal procedures, the revision of the Agreement. 6. References in the Agreement to legal acts of the Union that are no longer in force shall be construed as references to the repealing legal act of the Union as integrated into Annex 1 to the Agreement as from the entry into force of the Joint Committee's decision on the corresponding amendment of Annex 1 to the Agreement pursuant to paragraph 4, unless otherwise provided in that decision. 7. The obligation set out in paragraph 1 shall not apply to legal acts of the Union or provisions thereof falling within the scope of an exception listed below: – Article 1(1). & /en 8 8. Subject to Article 6, decisions of the Joint Committee pursuant to paragraph 4 shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. 9. The Contracting Parties shall cooperate in good faith throughout the procedure set out in this Article in order to facilitate decision-making. ARTICLE 6 Fulfilment of constitutional obligations by Switzerland 1. During the exchange of views referred to in Article 5(3), Switzerland shall inform the Union whether a decision as referred to in Article 5(4) requires the fulfilment of constitutional obligations by Switzerland in order to become binding. 2. Where the decision referred to in Article 5(4) requires Switzerland to fulfil constitutional obligations in order to become binding, Switzerland shall have a time limit of two years maximum from the date of the information provided for in paragraph 1, except where a referendum procedure is launched, in which case this period shall be extended by one year. 3. Pending the information by Switzerland that it has fulfilled its constitutional obligations, the Contracting Parties shall provisionally apply the decision referred to in Article 5(4), unless Switzerland informs the Union that the provisional application of the decision is not possible and provides the reasons for this. & /en 9 Under no circumstances can the provisional application occur before the date on which the corresponding legal act of the Union becomes applicable in the Union. 4. Switzerland shall notify the Union without delay through the Joint Committee once it has fulfilled the constitutional obligations referred to in paragraph 1. 5. The decision shall enter into force on the day on which the notification provided for in paragraph 4 is delivered, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. CHAPTER 3 INTERPRETATION AND APPLICATION OF THE AGREEMENT ARTICLE 7 Uniform interpretation principle 1. For the purpose of achieving the objectives set out in Article 1 and in accordance with the principles of public international law, the bilateral agreements in the fields related to the internal market in which Switzerland participates and the legal acts of the Union to which reference is made in such agreements shall be uniformly interpreted and applied in the fields related to the internal market in which Switzerland participates. & /en 10 2. The legal acts of the Union to which reference is made in the Agreement and, to the extent that their application involves concepts of Union law, the provisions of the Agreement shall be interpreted and applied in accordance with the case law of the Court of Justice of the European Union, prior or subsequent to the signature of the Agreement. ARTICLE 8 Effective and harmonious application principle 1. The Commission and the competent Swiss authorities shall cooperate and assist each other in ensuring the surveillance of the application of the Agreement. They may exchange information on the activities of surveillance of the application of the Agreement. They may exchange views and discuss issues of mutual interest. 2. Each Contracting Party shall take appropriate measures to ensure the effective and harmonious application of the Agreement on its territory. 3. The surveillance of the application of the Agreement shall be carried out jointly by the Contracting Parties within the Joint Committee. If the Commission or the competent Swiss authorities become aware of a case of incorrect application, the matter may be referred to the Joint Committee with a view to finding an acceptable solution. & /en 11 4. The Commission and the competent Swiss authorities respectively shall monitor the application of the Agreement by the other Contracting Party. The procedure provided for in Article 10 applies. To the extent that certain surveillance competences of the institutions of the Union as regards one Contracting Party are necessary to ensure the effective and harmonious application of the Agreement, such as investigation and decision powers, the Agreement must foresee them specifically. ARTICLE 9 Exclusivity principle The Contracting Parties undertake not to submit a dispute regarding the interpretation or application of the Agreement and of the legal acts of the Union to which reference is made in the Agreement or, where applicable, regarding the conformity with the Agreement of a decision adopted by the Commission on the basis of the Agreement to any method of settlement other than those provided for in this Protocol. & /en 12  ARTICLE 10 Procedure in the event of difficulty of interpretation or application 1. In the event of difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement, the Contracting Parties shall consult each other within the Joint Committee in order to find a mutually acceptable solution. To this end, all useful elements of information shall be provided to the Joint Committee to enable it to make a detailed examination of the situation. The Joint Committee shall examine all possibilities that allow the proper functioning of the Agreement to be maintained. 2. If the Joint Committee is not able to find a solution to the difficulty referred to in paragraph 1 within three months of the date on which the difficulty was submitted to it, either of the Contracting Parties may request that an arbitral tribunal settle the dispute in accordance with the rules laid down in the Appendix. 3. Where the dispute raises a question concerning the interpretation or application of a provision referred to in Article 7(2), and if the interpretation of that provision is relevant to the settlement of the dispute and necessary to enable it to decide, the arbitral tribunal shall refer that question to the Court of Justice of the European Union. Where the dispute raises a question concerning the interpretation or application of a provision that falls within the scope of an exception from the dynamic alignment obligation referred to in Article 5(7), and where the dispute does not involve the interpretation or application of concepts of Union law, the arbitral tribunal shall settle the dispute without referral to the Court of Justice of the European Union. & /en 13 4. Where the arbitral tribunal refers a question to the Court of Justice of the European Union pursuant to paragraph 3: (a) the ruling of the Court of Justice of the European Union shall be binding on the arbitral tribunal; and (b) Switzerland shall enjoy the same rights as the Member States and the institutions of the Union and shall be subject to the same procedures before the Court of Justice of the European Union, mutatis mutandis. 5. Each Contracting Party shall take all measures necessary to comply in good faith with the arbitral tribunal's decision. The Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement shall inform the other Contracting Party through the Joint Committee of the measures it has taken to comply with the arbitral tribunal's decision. & /en 14  ARTICLE 11 Compensatory measures 1. If the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement does not inform the other Contracting Party, within a reasonable time period set in accordance with Article IV.2(6) of the Appendix, of the measures it has taken to comply with the arbitral tribunal's decision, or if the other Contracting Party considers that the measures communicated do not comply with the arbitral tribunal's decision, this other Contracting Party may adopt proportionate compensatory measures within the framework of the Agreement or of any other bilateral agreement in the fields related to the internal market in which Switzerland participates (hereinafter referred to as "compensatory measures") in order to remedy a potential imbalance. It shall notify the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement of the compensatory measures, which shall be specified in the notification. Those compensatory measures shall take effect three months from the date of this notification. 2. If, within one month from the date of the notification of the intended compensatory measures, the Joint Committee has not taken a decision to suspend, amend or annul those compensatory measures, either Contracting Party may submit to arbitration the question of the proportionality of those compensatory measures, in accordance with the Appendix. 3. The arbitral tribunal shall decide within the time limits laid down in Article III.8(4) of the Appendix. & /en 15 4. Compensatory measures shall not have retroactive effect. In particular, the rights and obligations already acquired by individuals and economic operators before the compensatory measures take effect shall be preserved. ARTICLE 12 Cooperation between jurisdictions 1. To promote the homogeneous interpretation, the Swiss Federal Supreme Court and the Court of Justice of the European Union shall agree on a dialogue and the modalities thereof. 2. Switzerland shall have the right to lodge statements of case or written observations with the Court of Justice of the European Union where a court of a Member State of the Union refers to the Court of Justice of the European Union a question concerning the interpretation of the Agreement or of a provision of a legal act of the Union referred to therein for a preliminary ruling. & /en 16  CHAPTER 4 OTHER PROVISIONS ARTICLE 13 Financial contribution 1. Switzerland shall contribute to the financing of the activities of the Union agencies, information systems and other activities listed in Article 1 of the Annex to which it has access, in accordance with this Article and the Annex. The Joint Committee may adopt a decision to amend the Annex. 2. The Union may suspend the participation of Switzerland in the activities referred to in paragraph 1 of this Article at any time if Switzerland fails to meet the payment deadline in accordance with the terms of payment set out in Article 2 of the Annex. Where Switzerland fails to meet a payment deadline, the Union shall send Switzerland a formal letter of reminder. Where no full payment is made within 30 days of the date of reception of that formal letter of reminder, the Union may suspend the participation of Switzerland in the relevant activity. & /en 17 3. The financial contribution shall take the form of the sum of: (a) an operational contribution; and (b) a participation fee. 4. The financial contribution shall take the form of an annual financial contribution and shall be due at the dates specified in the calls for funds issued by the Commission. 5. The operational contribution shall be based on a contribution key defined as the ratio of the gross domestic product (hereinafter referred to as "GDP") of Switzerland at market prices to the GDP of the Union at market prices. For that purpose, the figures for GDP at market prices of the Contracting Parties shall be the latest such figures available as of 1 January of the year in which the annual payment is made as provided by the Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics, done at Luxembourg on 26 October 2004. If that agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development. 6. The operational contribution for each Union agency shall be calculated by applying the contribution key to its annual voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question, taking into account for each agency any adjusted operational contribution as defined in Article 1 of the Annex. & /en 18 The operational contribution for the information systems and other activities shall be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget, such as work programmes or contracts. All reference amounts shall be based on commitment appropriations. 7. The annual participation fee shall be 4 % of the annual operational contribution as calculated in accordance with paragraphs 5 and 6. 8. The Commission shall provide Switzerland with adequate information in relation to the calculation of its financial contribution. That information shall be provided having due regard to the Union's confidentiality and data protection rules. 9. All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received, shall be made in euro. 10. Where the entry into force of this Protocol does not coincide with the beginning of a calendar year, Switzerland's operational contribution for the year in question shall be subject to adjustment, according to the methodology and terms of payment defined in Article 5 of the Annex. 11. Detailed provisions for the application of this Article are set out in the Annex. 12. Three years following the entry into force of this Protocol, and every three years subsequently, the Joint Committee shall review the conditions of Switzerland's participation as defined in Article 1 of the Annex and, where appropriate, adapt them. & /en 19  ARTICLE 14 References to territories Whenever the legal acts of the Union integrated into the Agreement contain references to the territory of the "European Union", of the "Union", of the "common market" or of the "internal market", the references shall for the purposes of the Agreement be understood to be references to the territories referred to in Article 17 of the Agreement. ARTICLE 15 References to nationals of Member States of the Union Whenever the legal acts of the Union integrated into the Agreement contain references to nationals of Member States of the Union, the references shall, for the purposes of the Agreement, be understood to be references to nationals of the Member States of the Union and of Switzerland. & /en 20  ARTICLE 16 Entry into force and implementation of the legal acts of the Union 1. Provisions of the legal acts of the Union integrated into the Agreement on their entry into force or implementation are not relevant for the purposes of the Agreement. 2. The time limits and dates for Switzerland for bringing into force and implementing the decisions integrating legal acts of the Union into the Agreement follow from Article 5(8) and Article 6(5), as well as from provisions on transitional arrangements. ARTICLE 17 Addressees of the legal acts of the Union Provisions of the legal acts of the Union integrated into the Agreement indicating that they are addressed to the Member States of the Union are not relevant for the purposes of the Agreement. & /en 21  CHAPTER 5 FINAL PROVISIONS ARTICLE 18 Implementation 1. The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from the Agreement and shall refrain from taking any measure which could jeopardise the achievement of its objectives. 2. The Contracting Parties shall take all measures necessary to guarantee the intended result of the legal acts of the Union to which reference is made in the Agreement and shall refrain from taking any measure that could jeopardise the achievement of their aims. ARTICLE 19 Entry into force 1. This Protocol shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. & /en 22 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; & /en 23 (h) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (i) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. ARTICLE 20 Amendment and termination 1. This Protocol may be amended at any time by mutual agreement of the Contracting Parties. & /en 24 2. Where the Agreement is terminated in accordance with Article 21(3) of the Agreement, this Protocol shall cease to be in force on the date referred to in Article 21(4) of the Agreement. 3. Where the Agreement ceases to be in force, the rights and obligations that individuals and economic operators have already acquired by virtue of the Agreement before the date of the cessation of the Agreement shall be preserved. The Contracting Parties shall settle by mutual agreement what action is to be taken in respect of rights in the process of being acquired. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 25  ANNEX ANNEX ON THE APPLICATION OF ARTICLE 13 OF THE PROTOCOL ARTICLE 1 List of the activities of the Union agencies, information systems and other activities to which Switzerland is to contribute financially Switzerland shall contribute financially to the following: (a) agencies: none. (b) information systems: EudraGMDP as established in Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use.1 1 Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use (OJ L 311 28.11.2001, p. 67). & /en 1 (c) other activities: none. ARTICLE 2 Terms of payment 1. Payments due pursuant to Article 13 of the Protocol shall be made in accordance with this Article. 2. When issuing the call for funds of the financial year, the Commission shall communicate the following information to Switzerland: (a) the amount of the operational contribution; and (b) the amount of the participation fee. & /en 2 3. The Commission shall communicate to Switzerland, as soon as possible and at the latest on 16 April of each financial year, the following information in relation to Switzerland's participation: (a) the amounts in commitment appropriations of the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question for each Union agency, taking into account for each agency any adjusted operational contribution as defined in Article 1, and the amounts in commitment appropriations in relation to the Union voted budget of the year in question for the relevant budget of the information systems and other activities, covering the participation of Switzerland in accordance with Article 1; (b) the amount of the participation fee referred to in Article 13(7) of the Protocol; and (c) as regards agencies, in year N+1, the amounts in budgetary commitments made on commitment appropriations authorised in year N on the relevant Union budget subsidy line(s) in relation to the annual Union budget inscribed on the relevant Union budget subsidy line(s) of year N. 4. On the basis of its draft budget, the Commission shall provide an estimate of information under points (a) and (b) of paragraph 3 as soon as possible, and at the latest, by 1 September of the financial year. 5. The Commission shall issue to Switzerland, at the latest on 16 April and, if applicable to the relevant agency, information system or other activity, at the earliest on 22 October and at the latest on 31 October of each financial year, a call for funds that corresponds to the contribution of Switzerland under the Agreement for each of the agencies, information systems and other activities in which Switzerland participates. & /en 3 6. The call(s) for funds referred to in paragraph 5 shall be structured in instalments as follows: (a) the first instalment of each year, in relation to the call for funds to be issued by 16 April, shall correspond to an amount up to the equivalent of the estimate of the annual financial contribution of the agency, information system or other activity in question referred to in paragraph 4; Switzerland shall pay the amount indicated in this call for funds at the latest 60 days after the call for funds is issued. (b) where applicable, the second instalment of the year, in relation to the call for funds to be issued at the earliest on 22 October and at the latest on 31 October, shall correspond to the difference between the amount referred to in paragraph 4 and the amount referred to in paragraph 5, where the amount referred to in paragraph 5 is higher. Switzerland shall pay the amount indicated in this call for funds at the latest by 21 December. For each call for funds, Switzerland may make separate payments for each agency, information system or other activity. 7. For the first year of implementation of the Protocol, the Commission shall issue a single call for funds, within 90 days of the entry into force of the Protocol. Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after the call for funds is issued. & /en 4 8. Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount as from the due date until the day on which that outstanding amount is paid in full. The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first day of the month in which the due date falls, or 0 %, whichever is higher, plus 3,5 percentage points. ARTICLE 3 Adjustment of Switzerland's financial contribution to Union agencies in the light of implementation The adjustment of Switzerland's financial contribution to Union agencies shall be made in year N+1, when the initial operational contribution shall be adjusted upwards or downwards by the difference between the initial operational contribution and an adjusted contribution calculated by applying the contribution key of year N to the amount of budgetary commitments made on commitment appropriations authorised in year N under the relevant Union subsidy budget line(s). Where applicable, the difference shall take into account, for each agency, the percentage-based adjusted operational contribution as defined in Article 1. & /en 5  ARTICLE 4 Existing arrangements Article 13 of the Protocol and this Annex shall not apply to specific arrangements between Switzerland and the Union which include financial contributions by Switzerland. The agencies, information systems and other activities covered by such arrangements are the following: European Chemical Agency, established by Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC (OJ L 396, 30.12.2006, p. 1). ARTICLE 5 Transitional arrangements In the event that the date of entry into force of the Protocol is not 1 January, this Article shall apply by way of derogation from Article 2. & /en 6 For the first year of implementation of the Protocol, in relation to the operational contribution due for the year in question applicable to the relevant agency, information system or other activity, as established in accordance with Article 13 of the Protocol and Articles 1 to 3 of this Annex, the operational contribution shall be reduced on a pro rata temporis basis by multiplying the amount of the annual operational contribution due to the ratio of the following: (a) the number of calendar days from the date of entry into force of the Protocol until 31 December of the year in question; and (b) the total number of calendar days of the year in question. & /en 7  Appendix APPENDIX ON THE ARBITRAL TRIBUNAL CHAPTER I PRELIMINARY PROVISIONS ARTICLE I.1 Scope If one of the Contracting Parties (hereinafter referred to as "parties") submits a dispute for arbitration in accordance with Articles 10(2) or 11(2) of the Protocol, the rules set out in this Appendix shall apply. ARTICLE I.2 Registry and secretarial services The International Bureau of the Permanent Court of Arbitration at the Hague (hereinafter referred to as "International Bureau") shall fulfil the functions of registry and provide the necessary secretarial services. & /en 8  ARTICLE I.3 Notices and calculation of time limits 1. Notices, including communications or proposals, may be sent by any means of communication that certifies their transmission, or enables them to be certified. 2. Such notices may be sent electronically only if an address has been designated or authorised by a party specifically for this purpose. 3. Such notices served on the parties shall be sent, for Switzerland, to Switzerland's Europe Division of the Federal Department of Foreign Affairs and, for the Union, to the Commission's Legal Service. 4. Any time limit laid down in this Appendix shall run from the day after an event occurs or an action takes place. If the last day for delivery of a document falls on a non-working day of the institutions of the Union or of the government of Switzerland, the time period for the delivery of the document shall end on the first following working day. Non-working days that fall within the time period shall be counted. & /en 9  ARTICLE I.4 Notice of arbitration 1. The party taking the initiative to use arbitration (hereinafter referred to as "applicant") shall send to the other party (hereinafter referred to as "defendant") and to the International Bureau a notice of arbitration. 2. Arbitration proceedings shall be deemed to commence on the day after that on which the notice of arbitration is received by the defendant. 3. The notice of arbitration shall include the following information: (a) the demand that the dispute be referred to arbitration; (b) the names and contact details of the parties; (c) the name and address of the applicant's agent(s); (d) the legal basis of the proceedings (Article 10(2) or Article 11(2) of the Protocol) and: (i) in the cases referred to in Article 10(2) of the Protocol, the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 10(1) of the Protocol; and & /en 10  (ii) in the cases referred to in Article 11(2) of the Protocol, the decision of the arbitral tribunal, any implementation measures mentioned in Article 10(5) of the Protocol and the disputed compensatory measures; (e) the designation of any rule causing the dispute or related to it; (f) a brief description of the dispute; and (g) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. 4. In the cases referred to in Article 10(3) of the Protocol, the notice of arbitration may also contain information concerning the need for a referral to the Court of Justice of the European Union. 5. Any claims on the sufficiency of the notice of arbitration shall not prevent the constitution of the arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. & /en 11  ARTICLE I.5 Response to the notice of arbitration 1. Within 60 days of receiving the notice of arbitration, the defendant shall send a response to the notice of arbitration to the applicant and the International Bureau, which shall include the following information: (a) the names and contact details of the parties; (b) the name and address of the defendant's agent(s); (c) a response to the information given in the notice of arbitration in accordance with points (d) to (f) of Article I.4(3); and (d) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. 2. In the cases referred to in Article 10(3) of the Protocol, the response to the notice of arbitration may also contain a response to the information given in the notice of arbitration in accordance with Article I.4(4) of this Appendix and information concerning the need for a referral to the Court of Justice of the European Union. 3. The lack of, or an incomplete or late, response from the defendant to the notice of arbitration shall not prevent the constitution of an arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. & /en 12 4. If the defendant requests that the arbitral tribunal consist of five arbitrators in its response to the notice of arbitration, the applicant shall designate an additional arbitrator within 30 days of receipt of the response to the notice of arbitration. ARTICLE I.6 Representation and assistance 1. The parties shall be represented before the arbitral tribunal by one or more agents. The agents may be assisted by advisers or lawyers. 2. Any change to the agents or their addresses shall be notified to the other party, the International Bureau and the arbitral tribunal. The arbitral tribunal may, at any time, on its own initiative or at the request of a party, request evidence of the powers conferred on the agents of the parties. & /en 13  CHAPTER II COMPOSITION OF THE ARBITRAL TRIBUNAL ARTICLE II.1 Number of arbitrators The arbitral tribunal shall be composed of three arbitrators. If the applicant in its notice of arbitration or the defendant in its response to the notice of arbitration so request, the arbitral tribunal shall be composed of five arbitrators. ARTICLE II.2 Appointment of arbitrators 1. If three arbitrators are to be appointed, each of the parties shall designate one of them. The two arbitrators appointed by the parties shall select the third arbitrator, who shall be the chair of the arbitral tribunal. 2. If five arbitrators are to be appointed, each of the parties shall designate two of them. The four arbitrators appointed by the parties shall select the fifth arbitrator, who shall be the chair of the arbitral tribunal. & /en 14 3. If, within 30 days of the designation of the last arbitrator appointed by the parties, the arbitrators have not reached agreement on the selection of the chair of the arbitral tribunal, the chair shall be appointed by the Secretary-General of the Permanent Court of Arbitration. 4. To assist in the selection of arbitrators to compose the arbitral tribunal, an indicative list of persons possessing the qualifications referred to in paragraph 6, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement between the European Union and the Swiss Confederation on health, done at […] on […] (hereinafter referred to as "Agreement on health"), the Agreement between the European Community and the Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999 (hereinafter referred to as "Agreement on trade in agricultural products") and the Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union, done at […] on […] (hereinafter referred to as "Agreement on Switzerland's regular financial contribution"), shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. 5. Where a party fails to designate an arbitrator, the Secretary-General of the Permanent Court of Arbitration shall appoint that arbitrator from the list referred to in paragraph 4. In the absence of such a list, the arbitrator shall be appointed by lot by the Secretary-General of the Permanent Court of Arbitration from the individuals who have been formally proposed by one party or both parties for the purposes of paragraph 4. & /en 15 6. The persons constituting the arbitral tribunal shall be highly qualified persons, with or without ties to the parties, whose independence and lack of conflicts of interest is guaranteed, along with a wide range of experience. In particular, they shall have demonstrated expertise in law and the matters covered by this Agreement; they shall not take instructions from either party; and they shall serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute. The chair of the arbitral tribunal shall also have experience in dispute settlement procedures. ARTICLE II.3 Arbitrators' declarations 1. When a person is being considered for appointment as an arbitrator, that person shall report all circumstances likely to give rise to legitimate doubts as to his or her impartiality or independence. From the appointment and throughout the entire arbitration proceedings, an arbitrator shall report such circumstances to the parties and to the other arbitrators without delay, if the arbitrator has not already done so. 2. Any arbitrator may be dismissed if circumstances exist that could give rise to legitimate doubts about his or her impartiality or independence. 3. A party may only request the dismissal of an arbitrator that it has appointed for a reason that becomes known to it after that appointment. & /en 16 4. If an arbitrator fails to act or if it is impossible de jure or de facto for an arbitrator to fulfil his or her role, the procedure for the dismissal of arbitrators laid down in Article II.4 shall apply. ARTICLE II.4 Dismissal of arbitrators 1. Any party wishing to dismiss an arbitrator shall make a request for dismissal within 30 days of the date on which it is notified of the appointment of that arbitrator or within 30 days of the date on which it becomes aware of the circumstances referred to in Article II.3. 2. The request for dismissal shall be sent to the other party, to the dismissed arbitrator, to the other arbitrators and to the International Bureau. It shall set out the reasons for the request for dismissal. 3. When a request for dismissal has been made, the other party may accept the request for dismissal. The arbitrator in question may also step aside. The acceptance or stepping aside does not imply acknowledgement of the reasons for the request for dismissal. 4. If, within 15 days of the date of the notification of the request for dismissal, the other party does not accept the request for dismissal or the arbitrator in question does not step aside, the party requesting the dismissal may ask the Secretary-General of the Permanent Court of Arbitration to take a decision on the dismissal. & /en 17 5. Unless the parties agree otherwise, the decision referred to in paragraph 4 shall indicate the reasons for that decision. ARTICLE II.5 Replacement of an arbitrator 1. Subject to paragraph 2 of this Article, if it is necessary to replace an arbitrator during the arbitration proceedings, a replacement shall be appointed or selected in accordance with the procedure laid down in Article II.2 applicable to the appointment or selection of the arbitrator to be replaced. That procedure shall apply even if one party had not exercised its right to appoint or to participate in the appointment of the arbitrator to be replaced. 2. In the event of replacement of an arbitrator, the procedure shall resume at the stage where the replaced arbitrator ceased to perform his or her functions, unless the arbitral tribunal decides otherwise. ARTICLE II.6 Exclusion of liability Except in cases of intentional wrongdoing or gross negligence, the parties renounce, to the maximum extent permitted by the applicable law, any action against the arbitrators for any act or omission related to the arbitration. & /en 18  CHAPTER III ARBITRATION PROCEEDINGS ARTICLE III.1 General provisions 1. The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator has accepted his or her appointment. 2. The arbitral tribunal shall ensure that the parties are treated equally and that, at an appropriate stage of the proceedings, each of them has sufficient possibility to assert their rights and present their case. The arbitral tribunal shall conduct the proceedings in such a way as to avoid delays and unnecessary expenditure and to ensure the dispute between the parties is settled. 3. A hearing shall be organised, unless the arbitral tribunal decides otherwise, having heard the parties. 4. When a party sends a communication to the arbitral tribunal, it shall do so through the International Bureau and shall send a copy to the other party at the same time. The International Bureau shall send a copy of that communication to each of the arbitrators. & /en 19  ARTICLE III.2 Place of arbitration The place of arbitration is The Hague. The arbitral tribunal may, if exceptional circumstances so require, meet at any other place that it considers appropriate for its deliberations. ARTICLE III.3 Language 1. The languages of the proceedings shall be French and English. 2. The arbitral tribunal may order all documents enclosed with the statement of claim or the statement of defence and all further documents produced during the proceedings, submitted in their original language, to be accompanied by a translation in one of the languages of the proceedings. & /en 20  ARTICLE III.4 Statement of claim 1. The applicant shall send its statement of claim in writing to the defendant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The applicant may decide to deem its notice of arbitration referred to in Article I.4 a statement of claim, provided that it also meets the conditions in paragraphs 2 and 3 of this Article. 2. The statement of claim shall include the following information: (a) the information set out in points (b) to (f) of Article I.4(3); (b) a statement of facts submitted in support of the claim; and (c) the legal arguments put forward in support of the claim. 3. The statement of claim shall, as far as possible, be accompanied by any documents and other evidence mentioned by the applicant or should refer to them. In the cases referred to in Article 10(3) of the Protocol, the statement of claim shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. & /en 21  ARTICLE III.5 Statement of defence 1. The defendant shall send the statement of defence in writing to the applicant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The defendant may decide to deem the response to the notice of arbitration referred to in Article I.5 a statement of defence, provided that the response to the notice of arbitration also meets the conditions in paragraph 2 of this Article. 2. The statement of defence shall respond to the points in the statement of claim indicated in accordance with points (a) to (c) of Article III.4(2) of this Appendix. It shall, as far as possible, be accompanied by any documents and other evidence mentioned by the defendant or should refer to them. In the cases referred to in Article 10(3) of the Protocol, the statement of defence shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. 3. In the statement of defence, or at a later stage in the arbitration proceedings if the arbitral tribunal decides that a delay is justified by circumstances, the defendant may make a counterclaim provided that the arbitral tribunal has jurisdiction in respect of it. 4. Article III.4(2) and (3) shall apply to a counterclaim. & /en 22  ARTICLE III.6 Arbitral jurisdiction 1. The arbitral tribunal shall rule on whether it has jurisdiction on the basis of Articles 10(2) or 11(2) of the Protocol. 2. In the cases referred to in Article 10(2) of the Protocol, the arbitral tribunal shall have a mandate to examine the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 10(1) of the Protocol. 3. In the cases referred to in Article 11(2) of the Protocol, the arbitral tribunal that heard the main case shall have a mandate to examine the proportionality of the disputed compensatory measures, including where those measures have in whole or in part been taken in another bilateral agreement in the fields related to the internal market in which Switzerland participates. 4. A preliminary objection of lack of jurisdiction of the arbitral tribunal shall be made at the latest in the statement of defence or, in the case of a counterclaim, in the reply. The fact that a party has appointed an arbitrator or has taken part in their appointment shall not deprive it of the right to make such a preliminary objection. The preliminary objection that the dispute would exceed the arbitral tribunal's powers shall be made as soon as the question alleged to exceed its powers is raised during the arbitration proceedings. In any event, the arbitral tribunal may allow a preliminary objection made after the time limit laid down has elapsed if it believes that the delay was for a valid reason. & /en 23 5. The arbitral tribunal may rule on the preliminary objection referred to in paragraph 4 either by treating it as a preliminary question or in the decision on the substance of the case. ARTICLE III.7 Other written submissions The arbitral tribunal shall, after having consulted the parties, decide what other written submissions, in addition to the statement of claim and statement of defence, the parties shall or may submit and shall set the time limit for their submission. ARTICLE III.8 Time limits 1. The time limits set by the arbitral tribunal for the communication of the written documents, including the statement of claim and the statement of defence, shall not exceed 90 days, unless the parties agree otherwise. 2. The arbitral tribunal shall take its final decision within 12 months of the date of its establishment. In exceptional circumstances of particular difficulty, the arbitral tribunal may extend that period by up to three additional months. & /en 24 3. The time limits laid down in paragraphs 1 and 2 shall be halved: (a) upon request by the applicant or the defendant, if, within 30 days of that request, the arbitral tribunal rules, after hearing the other party, that the case is urgent; or (b) if the parties so agree. 4. In the cases referred to in Article 11(2) of the Protocol, the arbitral tribunal shall take its final decision within six months of the date on which the compensatory measures have been notified in accordance with Article 11(1) of the Protocol. ARTICLE III.9 Referrals to the Court of Justice of the European Union 1. In application of Article 7 and Article 10(3) of the Protocol, the arbitral tribunal shall make a referral to the Court of Justice of the European Union. 2. The arbitral tribunal may make a referral to the Court of Justice of the European Union at any time in the proceedings, provided that the arbitral tribunal is able to define precisely enough the legal and factual background of the case, and the legal questions it raises. The proceedings before the arbitral tribunal shall be suspended until the Court of Justice of the European Union has delivered its ruling. & /en 25 3. Each party may send a reasoned request to the arbitral tribunal to make a referral to the Court of Justice of the European Union. The arbitral tribunal shall reject such a request if it considers the conditions for a referral to the Court of Justice of the European Union referred to in paragraph 1 not to be met. If the arbitral tribunal rejects a party's request for a referral to the Court of Justice of the European Union, it shall give reasons for its decision in the decision on the substance of the case. 4. The arbitral tribunal shall make a referral to the Court of Justice of the European Union by means of a notice. The notice shall contain at least the following information: (a) a brief description of the dispute; (b) the legal act(s) of the Union and/or the provision(s) of the Agreement at issue; and (c) the concept of Union law to be interpreted in accordance with Article 7(2) of the Protocol. The arbitral tribunal shall give notice of the referral to the Court of Justice of the European Union to the parties. 5. The Court of Justice of the European Union shall apply, by analogy, the internal rules of procedure applicable to the exercise of its jurisdiction to make a preliminary ruling on the interpretation of the Treaties and acts made by the Union's institutions, bodies, offices and agencies. 6. The agents and lawyers authorised to represent the parties before the arbitral tribunal pursuant to Articles I.4, I.5, III.4 and III.5 shall be authorised to represent the parties before the Court of Justice of the European Union. & /en 26  ARTICLE III.10 Interim measures 1. In the cases referred to in Article 11(2) of the Protocol, either party may, at any stage of the arbitration procedure, apply for interim measures consisting of the suspension of the compensatory measures. 2. An application pursuant to paragraph 1 shall state the subject matter of the proceedings, the circumstances giving rise to urgency and the pleas of fact and law establishing a prima facie case for the interim measures applied for. It shall contain all the evidence and offers of evidence available to justify the grant of the interim measures. 3. The party requesting the interim measures shall send its application in writing to the other party and to the arbitral tribunal through the International Bureau. The arbitral tribunal shall set a short time limit within which that other party may submit written or oral observations. 4. The arbitral tribunal shall, within one month of the submission of the application referred to in paragraph 1, adopt a decision on the suspension of the contested compensatory measures if the following conditions are met: (a) the arbitral tribunal is prima facie satisfied of the merit of the case submitted by the party requesting the interim measures in its application; (b) the arbitral tribunal considers that, pending its final decision, the party requesting the interim measures would suffer serious and irreparable harm absent the suspension of the compensatory measures; and & /en 27 (c) the harm caused to the party requesting the interim measures by the immediate application of the contested compensatory measures outweighs the interest in the immediate and effective application of those measures. 5. The suspension of proceedings referred to in the second subparagraph of Article III.9(2) shall not apply in proceedings pursuant to this Article. 6. A decision taken by the arbitral tribunal in accordance with paragraph 4 shall have only an interim effect and shall be without prejudice to the decision of the arbitral tribunal on the substance of the case. 7. Unless the decision taken by the arbitral tribunal in accordance with paragraph 4 of this Article sets an earlier date for the end of the suspension, the suspension shall lapse when the final decision pursuant to Article 11(2) of the Protocol is taken. 8. For the avoidance of doubt, for the purposes of this Article, it is understood that, in considering the respective interests of the party requesting the interim measures and the other party, the arbitral tribunal shall take into account those of the individuals and economic operators of the parties, but that consideration shall not amount to granting any standing to such individuals or economic operators before the arbitral tribunal. ARTICLE III.11 Evidence 1. Each party shall provide evidence of the facts forming the grounds of its claim or its defence. & /en 28 2. On request of a party, or on its own initiative, the arbitral tribunal may seek from the parties relevant information it considers necessary and appropriate. The arbitral tribunal shall set a time limit for the parties to respond to its request. 3. On request of a party, or on its own initiative, the arbitral tribunal may seek from any source any information it considers appropriate. The arbitral tribunal may also seek the opinion of experts as it considers appropriate and subject to any terms and conditions agreed by the parties, where applicable. 4. Any information obtained by the arbitral tribunal under this Article shall be made available to the parties, and the parties may submit comments on that information to the arbitral tribunal. 5. After seeking the views of the other party, the arbitral tribunal shall adopt appropriate measures to address any questions raised by a party with regard to the protection of personal data, professional secrecy and the legitimate interests of confidentiality. 6. The arbitral tribunal shall be the judge of the admissibility, relevance and strength of the evidence submitted. ARTICLE III.12 Hearings 1. When a hearing must take place, the arbitral tribunal, having consulted the parties, shall notify the parties sufficiently far in advance of the date, time and place of the hearing. & /en 29 2. The hearing shall be public, unless the arbitral tribunal, of its own motion or on application by the parties, decides otherwise for serious reasons. 3. Minutes of each hearing shall be drawn up and signed by the chair of the arbitral tribunal. Only those minutes shall be authentic. 4. The arbitral tribunal may decide to hold the hearing virtually in accordance with the practice of the International Bureau. The parties shall be informed of this practice in a timely manner. In such cases, paragraph 1, mutatis mutandis, and paragraph 3 shall apply. ARTICLE III.13 Default 1. If, within the time limit set by this Appendix or by the arbitral tribunal, without showing sufficient cause, the applicant has not submitted its statement of claim, the arbitral tribunal shall order the closure of the arbitration proceedings, unless there are outstanding questions on which a ruling may be necessary and if the arbitral tribunal considers it appropriate to do so. If, within the time limit set by this Appendix or by the arbitral tribunal, without showing sufficient cause, the defendant has not submitted its response to the notice of arbitration or its statement of defence, the arbitral tribunal shall order the continuation of the proceedings, without considering that default of itself to constitute acceptance of the applicant's allegations. The second subparagraph also applies where the applicant fails to submit a reply to a counterclaim. & /en 30 2. If a party, duly convened in accordance with Article III.12(1), does not appear at a hearing and does not demonstrate sufficient cause for its failure to do so, the arbitral tribunal may continue the arbitration. 3. If a party, duly invited by the arbitral tribunal to produce further evidence, fails to do so within the time limits set without showing sufficient cause for its failure to do so, the arbitral tribunal may rule on the basis of the evidence it has available. ARTICLE III.14 Closure of the procedure 1. Where it is demonstrated that the parties have reasonably had the possibility of presenting their arguments, the arbitral tribunal may declare the closure of the proceedings. 2. The arbitral tribunal may, if it considers it necessary because of exceptional circumstances, decide on its own initiative or at the request of a party to reopen the proceedings at any time before it has taken its decision. & /en 31  CHAPTER IV DECISION ARTICLE IV.1 Decisions The arbitral tribunal shall strive to take its decisions by consensus. If, however, it proves impossible to take a decision by consensus, the arbitral tribunal's decision shall be taken by a majority of the arbitrators. ARTICLE IV.2 Form and effect of the decision of the arbitral tribunal 1. The arbitral tribunal may take separate decisions on different questions at different times. 2. All decisions shall be issued in writing and shall state the reasons on which they are based. They shall be final and binding on the parties. 3. The decision of the arbitral tribunal shall be signed by the arbitrators, shall contain the date on which it was taken and state the place of arbitration. A copy of the decision signed by the arbitrators shall be communicated to the parties by the International Bureau. & /en 32 4. The International Bureau shall make the decision of the arbitral tribunal public. When making the decision of the arbitral tribunal public, the International Bureau shall respect the relevant rules on the protection of personal data, professional secrecy and the legitimate interests of confidentiality. The rules referred to in the second subparagraph shall be identical for all bilateral agreements in the fields of the internal market in which Switzerland participates as well as for the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution. The Joint Committee shall adopt and update those rules by a decision for the purposes of the Agreement. 5. The parties shall comply with all decisions of the arbitral tribunal without delay. 6. In the cases referred to in Article 10(2) of the Protocol, having obtained the opinion of the parties, the arbitral tribunal shall set a reasonable time limit in the decision on the substance of the case to comply with its decision in accordance with Article 10(5) of the Protocol taking account of the parties' internal procedures. ARTICLE IV.3 Applicable law, rules of interpretation, mediator 1. The applicable law consists of the Agreement, the legal acts of the Union to which reference is made therein, as well as any other rule of international law relevant to the application of those instruments. & /en 33 2. The arbitral tribunal shall decide in accordance with the rules of interpretation referred to in Article 7 of the Protocol. 3. Prior decisions taken by a dispute settlement body with regard to the proportionality of compensatory measures under another bilateral agreement among those referred to in Article 11(1) of the Protocol shall be binding upon the arbitral tribunal. 4. The arbitral tribunal shall not be permitted to decide as mediator or ex aequo et bono. ARTICLE IV.4 Mutually agreed solution or other reasons for closure of the proceedings 1. The parties may, at any time, mutually agree a solution to their dispute. They shall jointly communicate any such solution to the arbitral tribunal. If the solution requires approval pursuant to the relevant domestic procedures of either party, the notification shall refer to that requirement, and the arbitration procedure shall be suspended. If such approval is not required, or upon notification of the completion of any such domestic procedures, the arbitration procedure shall be closed. 2. If, in the course of proceedings, the applicant informs the arbitral tribunal in writing that it does not wish to further pursue the proceedings, and if, at the date on which that communication is received by the arbitral tribunal, the defendant has not yet taken any step in the proceedings, the arbitral tribunal shall issue an order officially recording the closure of the proceedings. The arbitral tribunal shall decide on the costs, which shall be borne by the applicant, if this appears justified by the conduct of that party. & /en 34 3. If, before the decision of the arbitral tribunal is taken, the arbitral tribunal concludes that the continuation of the proceedings has become pointless or impossible for any reason other than those referred to in paragraphs 1 and 2, the arbitral tribunal shall inform the parties of its intention to issue an order closing the proceedings. The first subparagraph does not apply where there are outstanding questions on which it may be necessary to rule and if the arbitral tribunal judges it appropriate to do so. 4. The arbitral tribunal shall communicate to the parties a copy of the order closing the arbitration proceedings or of the decision taken by agreement between the parties, signed by the arbitrators. Article IV.2(2) to (5) shall apply to arbitration decisions taken by agreement between the parties. ARTICLE IV.5 Correction of the decision of the arbitral tribunal 1. Within 30 days of receiving the decision of the arbitral tribunal, a party may, by giving notice to the other party and to the arbitral tribunal through the International Bureau, ask the arbitral tribunal to correct in the text of the decision of the arbitral tribunal any errors in computation, any clerical or typographical errors, or any errors or omissions of a similar nature. If it considers the request to be justified, the arbitral tribunal shall make the correction within 45 days of receiving the request. The request shall not have a suspensive effect on the time limit provided for in Article IV.2(6). & /en 35 2. The arbitral tribunal may, within 30 days of communicating its decision, make the corrections referred to in paragraph 1 on its own initiative. 3. The corrections referred to in paragraph 1 of this Article shall be done in writing and form an integral part of the decision. Article IV.2(2) to (5) shall apply. ARTICLE IV.6 Arbitrators' fees 1. The fees referred to in Article IV.7 shall be reasonable, taking account of the complexity of the case, the time spent on it by the arbitrators and all other relevant circumstances. 2. A list of daily compensation and maximum and minimum hours, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution, shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. ARTICLE IV.7 Costs 1. Each party shall bear its own costs and half of the costs of the arbitral tribunal. & /en 36 2. The arbitral tribunal shall set its costs in its decision on the substance of the case. Those costs shall include only: (a) the arbitrators' fees, to be stated separately for each arbitrator and to be set by the arbitral tribunal itself in accordance with Article IV.6; (b) the travel and other expenses incurred by the arbitrators; and (c) the fees and expenses of the International Bureau. 3. The costs referred to in paragraph 2 shall be reasonable, taking account of the amount in dispute, the complexity of the dispute, the time that the arbitrators and any experts appointed by the arbitral tribunal have spent on it and any other relevant circumstances. ARTICLE IV.8 Deposit of costs 1. At the start of the arbitration, the International Bureau may ask the parties to deposit an equal amount as an advance for the costs referred to in Article IV.7(2). 2. During the arbitration proceedings, the International Bureau may request from the parties deposits supplementary to those referred to in paragraph 1. & /en 37 3. All amounts deposited by the parties in application of this Article shall be paid to the International Bureau and paid out by it to cover the costs actually incurred, including, in particular, the fees paid to the arbitrators and to the International Bureau. CHAPTER V FINAL PROVISIONS ARTICLE V.1 Amendments The Joint Committee may adopt, by decision, amendments to this Appendix. ________________ & /en 38 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 6 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  AGREEMENT BETWEEN THE EUROPEAN UNION AND THE SWISS CONFEDERATION ON ELECTRICITY & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", hereinafter referred to as the "Contracting Parties"; CONSIDERING the existing particularly close integration of the electricity systems of the Union and Switzerland and that Switzerland was part of the group of European countries which developed cross-border electricity trade in Europe on the basis of cooperation between transmission system operators, with a view to benefitting from the advantages of shared energy resources; NOTING that a dense legal framework has been created in the Union in the last two decades to organise an efficient internal electricity market with electricity trading mechanisms, such as Union-wide market coupling, replacing the former cooperation framework; RECOGNISING that the absence of the application of Union rules for electricity trade and security of supply in Switzerland, and the resulting absence of Switzerland from joint trading schemes, platforms and coordination bodies governed by Union law, has posed increasing challenges for electricity cooperation between the Contracting Parties and for their security of supply, leading to market inefficiencies, higher transaction costs, legal uncertainty and a lack of reliability in the exchange of electricity, resulting in additional cost for electricity customers; & /en 1 EMPHASIZING that this Agreement, while taking into account the existing physically close integration of the Swiss electricity system into the European electricity system, is meant to enhance mutual cooperation in the electricity sector, to enable the participation of Switzerland in all trading schemes, platforms and common coordination bodies governed by Union law, to foster cross-border trading of electricity, to increase economic efficiency and social welfare, to strengthen security of supply, to increase grid stability and to facilitate the transition to a net zero greenhouse gas energy system in Europe by 2050 for the mutual benefit of Switzerland and the Union; CONSIDERING that the participation of Switzerland in the internal electricity market of the Union requires the integration of Switzerland in a manner that ensures the same rights and obligations for the Contracting Parties. This requires in turn appropriate rules on a level playing field which ensures open and fair competition between the Contracting Parties, including relevant rules on competition, environment and renewable energy production; NOTING the need for close cooperation between the Contracting Parties and their authorities for the proper interpretation and application of the rules of the internal electricity market and for enhanced regional grid stability as well as security of supply, especially in times of an energy crisis; EMPHASIZING that the Contracting Parties attach a great importance to electricity security of supply in their cooperation under this Agreement and that a key purpose of this Agreement is to create reliable rules, guaranteeing that both Contracting Parties will continue exchanging electricity also in times of an energy crisis, on the basis of clear rules, so that they can rely on electricity flows from each other, reducing costs for electricity consumers; & /en 2 RECOGNISING that physical long-term cross-border capacity reservations restrict the principle of third-party access as implemented in the Union's electricity market rules and that the treatment of historic contracts with physical long-term reservations with non-Union countries may raise complex legal questions, this Agreement should provide legal certainty as to the phasing out of such reservations and to the regime applicable in the transitional period; CONSIDERING the benefits of trading electricity across borders and incentivising investment for cost efficient, clean and secure electricity supplies in the Union and Switzerland; RECOGNISING that public ownership of electricity infrastructure can be a legitimate political choice; AIMING to strengthen and deepen the participation of Switzerland and its undertakings in the internal market of the Union, in which Switzerland participates on the basis of this Agreement; RECOGNISING that the proper functioning and homogeneity in the fields of the internal market in which Switzerland participates requires a level playing field for competition between Swiss and Union undertakings based on substantive and procedural rules equivalent to those that apply in the internal market as regards State aid; REAFFIRMING the autonomy of the Contracting Parties and the role and competences of their institutions and, as far as Switzerland is concerned, respect for the principles deriving from its constitutional order, including direct democracy, the separation of powers and federalism; WHEREAS the Union and Switzerland are bound by numerous bilateral agreements covering various fields, providing for specific rights and obligations similar, in certain respects, to those provided for within the Union; & /en 3 RECALLING that the purpose of those bilateral agreements is to increase Europe's competitiveness and to create closer economic ties between the Contracting Parties, based on equality, reciprocity and the general balance of their advantages, rights and obligations; RESOLVED to strengthen and deepen Switzerland's participation in the internal market of the Union, on the basis of the same rules as those that apply to the internal market, while preserving their independence and that of their institutions and, as regards Switzerland, respect for the principles stemming from direct democracy, federalism and the sectoral nature of its participation in the internal market; REAFFIRMING that the competence of the Swiss Federal Supreme Court and all other Swiss courts as well as that of the Member States' courts and of the Court of Justice of the European Union to interpret the Agreement in individual cases is preserved; CONSCIOUS of ensuring uniformity in the fields related to the internal market in which Switzerland participates, both current and future, HAVE AGREED AS FOLLOWS: & /en 4  PART I GENERAL PROVISIONS ARTICLE 1 Purpose 1. The purpose of this Agreement is to allow the participation of Switzerland in the internal electricity market of the Union, by ensuring the uniform application of the rules of the internal electricity market as adapted where necessary, under the terms and conditions laid down in this Agreement. 2. In this regard, the aim of this Agreement is to: (a) guarantee to all market participants equal market access to both the Union and the Swiss electricity markets, including access to joint trading schemes, platforms and coordination bodies; (b) foster cross-border electricity trade for the mutual benefit of the Union and Switzerland, including through an improved allocation and management of the capacity of the transmission system, especially on interconnectors; (c) ensure the stability of the regional electricity network and of the connection of the Swiss electricity system into the interconnected system of the Union; (d) ensure a high degree of security of supply; & /en 5 (e) guarantee the integrity and transparency of the wholesale electricity market; (f) increase and promote the share of electricity produced from renewable energy sources and guarantee a high level of environmental protection in the electricity sector, to facilitate the transition to a net zero greenhouse gas energy system in Europe by 2050; (g) increase the cooperation between the Contracting Parties, their respective regulatory authorities and operators in the electricity sector. ARTICLE 2 Scope 1. This Agreement applies to the electricity sector, as regards the generation, transmission, distribution, trading and supply of electricity. 2. This Agreement also applies to the matters directly related to the electricity sector as set out in this Agreement. ARTICLE 3 Non-discrimination The Contracting Parties undertake not to take discriminatory measures when applying this Agreement. & /en 6  PART II RULES CONCERNING PARTICIPATION IN THE INTERNAL ELECTRICITY MARKET ARTICLE 4 Rules governing the electricity sector Switzerland shall apply the legal acts in the electricity sector set out in Annex I. ARTICLE 5 Swiss transmission system operator 1. Without prejudice to the provisions on unbundling of transmission system operators (hereinafter referred to as "TSOs") in the legal acts set out in Annex I, no provision of this Agreement shall be interpreted as preventing Swiss public bodies, such as cantons and municipalities, from holding a direct or indirect majority in the operator of the Swiss transmission system. 2. Nothing in this Agreement shall prevent companies active in the electricity sector from holding a direct or indirect majority in the Swiss TSO within the limits of the provisions on unbundling of TSOs in the legal acts set out in Annex I. & /en 7  ARTICLE 6 Swiss distribution system operators Without prejudice to the provisions on unbundling of distribution system operators in the legal acts set out in Annex I, no provision of this Agreement shall be interpreted as preventing Swiss public bodies, such as cantons or municipalities, from: (a) fully owning or holding a direct or indirect majority in Swiss distribution system operators; (b) organising their grid operators and entities for generation or supply under public law. ARTICLE 7 Swiss universal service 1. No provision of this Agreement shall be interpreted as preventing Switzerland from adopting consumer protection measures which provide for a right for households and enterprises below a certain consumption threshold to benefit from a universal service, including the services of a supplier of last resort in accordance with the provisions of the legal acts set out in Annex I. 2. This Agreement shall neither be interpreted as preventing price regulation for the universal service in accordance with the provisions of the legal acts set out in Annex I. & /en 8  ARTICLE 8 Transitional regime for existing long-term capacity reservations on interconnectors at the Swiss borders 1. In order to establish compliance with the principle of non-discriminatory grid access, the existing long-term capacity reservations for electricity at interconnectors between Switzerland and France, as identified in the contracts concluded before 1 January 2002, which are listed in Section B of Annex II, shall be removed with the entry into force of this Agreement. Financial compensation shall be granted to the holders of those contracts for a transitional period ending seven years after the entry into force of this Agreement but for no longer than the end date of the respective existing contract listed in Section B of Annex II if that contract terminates before. Changes to the contracts listed in Section B of Annex II shall not affect the removal of long-term capacity reservations or the transitional period. 2. Section A of Annex II sets out the principles of the financial compensation and the National Regulatory Authorities' (hereinafter referred to as "NRAs") tasks related to the compensation and its financing. 3. Notwithstanding paragraph 1, the capacity reservations related to cross-border hydropower installations with a smaller volume of capacity reservation not exceeding 65 MW, as listed in Section C of Annex II, shall be preserved during a transitional period ending 15 years after the entry into force of this Agreement but for no longer than the end date of the respective existing concession, if the concession terminates before, and shall be removed thereafter. & /en 9  ARTICLE 9 Security of supply and reserves 1. The Contracting Parties attach great importance to electricity security of supply in their cooperation under this Agreement. To ensure functioning electricity markets and that electricity flows where it is most needed, cross-border interconnectors shall remain open, including in times of an electricity crisis, in line with this Agreement. Measures jeopardising electricity security of supply, especially in the event of electricity crises, shall be avoided, in particular interventions such as undue restrictions on cross-border electricity flows. 2. Switzerland may take necessary, proportionate and non-distorting measures to ensure security of electricity supply, in particular by establishing and having in place electricity reserves to the extent that they are compatible with this Agreement. 3. When assessing its national resource adequacy, Switzerland may make assumptions taking into account the particularities of national electricity demand and supply, including such particularities resulting from the fact that Switzerland is not a Member State of the Union, or from elements that may be particularly relevant for security of supply in Switzerland, such as reduced availability of nuclear power and gas for power generation in neighbouring countries, provided that such concerns are considered in a proportionate and reasonable manner. 4. In order to ensure the effectiveness of the rules on State support for generation adequacy under this Agreement and to take account of the new possibilities to exchange electricity on the basis of binding rules after the entry into force of this Agreement, State support for adequacy reserves granted before the entry into force of this Agreement that is not compatible with this Agreement shall not exceed a duration of more than six years after the entry into force of this Agreement. & /en 10  ARTICLE 10 Swiss participation in institutions and other bodies 1. Switzerland and the relevant Swiss actors participate in institutions, committees, regions, schemes, platforms, initiatives and other similar bodies relevant under this Agreement. 2. In particular: (a) the Swiss NRA participates in the Agency for the Cooperation of Energy Regulators (hereinafter referred to as "ACER"); (b) the Swiss TSO participates in the European Network of Transmission System Operators for Electricity (hereinafter referred to as "ENTSO-E"); (c) Swiss distribution system operators participate in the European entity for distribution system operators (hereinafter referred to as "EU DSO entity"). 3. The details of the Swiss participation are set out in the Annexes. & /en 11  ARTICLE 11 Exploitation of energy resources and ownership of generation installations 1. Switzerland shall preserve the right to determine the conditions for exploiting its energy resources, including the use of hydropower, within the limits of the relevant applicable law under this Agreement, as well as its choice between different energy sources and the general structure of its energy supply. 2. Nothing in this Agreement shall prevent the public ownership of generation installations, including of hydropower generation, by public bodies, within the limits of the relevant applicable electricity law. PART III STATE AID ARTICLE 12 Objectives of the State aid provisions 1. The objectives of this Part are to ensure a level playing field for competition between Union and Swiss undertakings in the fields of the internal market falling under the scope of this Agreement and to guarantee the proper functioning of the internal market by laying down substantive and procedural rules on State aid. & /en 12 2. This Part and its Annexes shall alter neither the scope nor the objectives of this Agreement. ARTICLE 13 State aid 1. Save as otherwise provided for in this Agreement, any aid granted by Switzerland or by a Member State of the Union, or through State resources in any form whatsoever, which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between the Contracting Parties within the scope of this Agreement, be incompatible with the proper functioning of the internal market. 2. The following shall be compatible with the proper functioning of the internal market: (a) aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned; (b) aid to make good the damage caused by natural disasters or exceptional occurrences; (c) the measures set out in Section A of Annex III. 3. The following may be considered to be compatible with the proper functioning of the internal market: (a) aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment; & /en 13 (b) aid to promote the execution of an important project of common European interest, or of common interest to the Contracting Parties, or to remedy a serious disturbance in the economy of a Member State of the Union or Switzerland; (c) aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the interest of the Contracting Parties; (d) aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition to an extent contrary to the interest of the Contracting Parties; (e) the categories of aid set out in Section B of Annex III. 4. Aid granted in accordance with Section C of Annex III shall be presumed compatible with the proper functioning of the internal market and shall be exempted from notification requirements under Article 14. 5. Aid granted to undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the rules contained in this Agreement, in so far as the application of these rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interest of the Contracting Parties. 6. This Part shall not apply to aid where the amount granted to a single undertaking for activities within the scope of this Agreement constitutes de minimis aid as set out in Section D of Annex III. & /en 14 7. The Joint Committee established by Article 25 of this Agreement (hereinafter referred to as the "Joint Committee") may decide to update Sections A and B of Annex III by specifying measures that shall be compatible, or categories of aid that may be considered to be compatible, with the proper functioning of the internal market. ARTICLE 14 Surveillance 1. For the purposes of Article 12, the Union, in accordance with the distribution of competences between the Union and its Member States, and Switzerland, in accordance with its constitutional order of competences, shall supervise the application of State aid rules in their respective territory in accordance with this Part. 2. For the purposes of the implementation of this Part, the Union shall maintain a State aid surveillance system in accordance with Articles 93, 106, 107 and 108 of the Treaty on the Functioning of the European Union (hereinafter referred to as "TFEU") as supplemented by Union legal acts in the field of State aid and Union legal acts concerning State aid in the electricity sector listed in point 1 of Section A of Annex IV. 3. For the purposes of the implementation of this Part, Switzerland shall, within five years of the entry into force of this Agreement, establish and maintain a State aid surveillance system that ensures at all times a level of surveillance and enforcement equivalent to that applied in the Union, as set out in paragraph 2, including the following: (a) an independent surveillance authority; and & /en 15 (b) procedures to ensure the review by the surveillance authority of the compatibility of aid with the proper functioning of the internal market, including the following: (i) prior notification to the surveillance authority of planned aid; (ii) assessment by the surveillance authority of notified aid and its competence to review non notified aid; (iii) challenge before the competent judicial authority, with suspensive effect from the moment the act is challengeable, of aid that the surveillance authority considers to be incompatible with the proper functioning of the internal market; and (iv) recovery, including interest, of aid granted and found incompatible with the proper functioning of the internal market. 4. In accordance with Switzerland's constitutional order of competences, paragraph 3, point (b)(iii) and (iv) does not apply to acts of the Swiss Federal Assembly or of the Swiss Federal Council. 5. Where the Swiss surveillance authority cannot challenge the aid of the Swiss Federal Assembly or of the Swiss Federal Council before a judicial authority, due to its limitations of competence under the Swiss constitutional order, it shall challenge the application by other authorities of that aid in all specific cases. If the judicial authority finds that that aid is incompatible with the proper functioning of the internal market, the competent Swiss judicial and administrative authorities shall take that finding into account when assessing whether to apply that aid in the case before them. & /en 16  ARTICLE 15 Existing aid 1. Article 14(3), point (b), shall not apply to existing aid, including aid schemes and individual aid. 2. For the purposes of this Agreement, existing aid shall include aid granted before the entry into force of this Agreement and within five years thereof. 3. Within 12 months of the date of establishment of the surveillance system pursuant to Article 14(3), the surveillance authority shall gain an overview of existing aid schemes within the scope of this Agreement that are still in force and make a prima facie assessment of those schemes against the criteria set out in Article 13. 4. All existing aid schemes in Switzerland shall be subject to constant review by the surveillance authority as to their compatibility with the proper functioning of the internal market pursuant to paragraphs 5, 6 and 7. 5. If the surveillance authority considers that an existing aid scheme is not, or is no longer, compatible with the proper functioning of the internal market, it shall inform the competent authorities about the obligation to comply with this Part. If such an aid scheme is amended or terminated, the competent authorities shall inform the surveillance authority. 6. If the surveillance authority considers the measures taken by the competent authorities to be appropriate to ensure the compatibility of the aid scheme with the proper functioning of the internal market, it shall publish those measures. & /en 17 7. Notwithstanding paragraph 1 of this Article, if the surveillance authority considers that the aid scheme remains incompatible with the proper functioning of the internal market, the surveillance authority shall publish its assessment and challenge the application of that aid scheme in all specific cases, in accordance with Article 14(3), point (b)(iii), and Article 14(5). 8. For the purposes of this Part, if an existing aid scheme is amended in such a way as to affect the compatibility of the aid with the proper functioning of the internal market, the aid shall be considered to be new aid and shall therefore be subject to Article 14(3), point (b). ARTICLE 16 Transparency 1. With regard to aid granted in their territory, the Contracting Parties shall ensure transparency. For the Union, transparency shall be based on substantive and procedural rules that apply in the Union on State aid within the scope of this Agreement. For Switzerland, transparency shall be based on substantive and procedural rules equivalent to those that apply in the Union on State aid within the scope of this Agreement. 2. Each Contracting Party shall, in respect of its territory and unless it is otherwise provided for in this Part, ensure the publication of: (a) aid granted; (b) opinions or decisions of its surveillance authorities; & /en 18 (c) rulings of its competent judicial authorities on the compatibility of aid with the proper functioning of the internal market; and (d) guidelines and communications applied by its surveillance authorities. ARTICLE 17 Terms of cooperation 1. The Contracting Parties shall cooperate and exchange information on State aid, subject to their respective laws and available resources. 2. For the purposes of the uniform implementation, application and interpretation of the substantive rules on State aid and of harmonious development thereof: (a) the Contracting Parties shall cooperate and consult each other with regard to the relevant guidelines and communications referred to in Section B of Annex IV; and (b) the surveillance authorities of the Contracting Parties shall conclude arrangements for a regular exchange of information, including on the implications for the application of rules on existing aid. & /en 19  ARTICLE 18 Consultations 1. At the request of a Contracting Party, the Contracting Parties shall consult each other, within the Joint Committee, on matters relating to the implementation of this Part. 2. In the event of developments concerning important interests of a Contracting Party that may affect the operation of this Part, the Joint Committee shall, at the request of a Contracting Party, meet at an appropriately high level within 30 days of that request in order to discuss the matter. ARTICLE 19 Integration of legal acts concerning State aid 1. Notwithstanding Article 27, for the purposes of Articles 13(4) and (6) and Article 14(2) and (3), and in order to guarantee legal certainty and the homogeneity of the law in the fields of the internal market in which Switzerland participates by virtue of this Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the fields covered by Sections C and D of Annex III as well as Section A of Annex IV are integrated into those Annexes as quickly as possible after their adoption. 2. When it adopts a legal act in the field covered by Sections C and D of Annex III or Section A of Annex IV, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. & /en 20 3. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend Sections C and D of Annex III as well as Section A of Annex IV, including the necessary adaptations. 4. Subject to Article 28, the decisions of the Joint Committee pursuant to paragraph 3 of this Article shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. PART IV AREAS RELATED TO THE ELECTRICITY MARKET ARTICLE 20 Environment 1. The Contracting Parties shall ensure a high level of environmental protection in the electricity sector. 2. Switzerland shall ensure a high level of environmental protection in accordance with Article 27(3) and Annex V. & /en 21  ARTICLE 21 Renewable energies 1. The Contracting Parties shall cooperate in the field of renewable energies, in particular with regard to their deployment and promotion. 2. The Contracting Parties commit to increasing the share of renewable energy in their energy systems. Switzerland shall apply the legal acts on renewables as set out in Annex VI and especially set an appropriate indicative renewable energy target. 3. The Contracting Parties shall endeavour to accelerate their planning and permitting procedures. ARTICLE 22 Infrastructure cooperation 1. The Contracting Parties shall cooperate to facilitate the timely development and interoperability of the electricity infrastructure connecting their territories. 2. Each Contracting Party shall ensure that network development plans for its electricity transmission systems are drawn up, published and regularly updated. & /en 22 3. For the purpose of the potential qualification of Swiss infrastructure projects as projects of mutual interests pursuant to Article 2(1) and Article 4(2), point (e), of Regulation (EU) 2022/869 of the European Parliament and of the Council1, a high level of convergence of the policy framework is presumed for Switzerland. Switzerland shall facilitate a similar timeline for accelerated implementation and other policy support measures, as provided for by that Regulation. PART V INSTITUTIONAL PROVISIONS CHAPTER 1 GENERAL PROVISIONS ARTICLE 23 Objectives of the institutional provisions 1. The objective of this Part is to guarantee for the Contracting Parties, and for economic operators and individuals, greater legal certainty, equal treatment and a level playing field in the fields related to the internal market falling under the scope of this Agreement. 1 Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation (EU) No 347/2013 (OJ EU L 152, 3.6.2022, p. 45, ELI: http://data.europa.eu/eli/reg/2022/869/oj). & /en 23 2. To this end, this Part provides institutional solutions facilitating a continuous and balanced strengthening of economic relations between the Contracting Parties. Taking account of the principles of international law, this Part lays down, in particular, institutional solutions for this Agreement which are common to the bilateral agreements concluded or to be concluded in the fields related to the internal market in which Switzerland participates, without changing the scope or the objectives of this Agreement, notably: (a) the procedure for aligning the Agreement with legal acts of the Union relevant to this Agreement; (b) the uniform interpretation and application of this Agreement and of the legal acts of the Union to which reference is made in this Agreement; (c) the surveillance and application of this Agreement; and (d) the settlement of disputes in the context of this Agreement. ARTICLE 24 Bilateral agreements in the fields related to the internal market in which Switzerland participates 1. Existing and future bilateral agreements between the Union and Switzerland in the fields related to the internal market in which Switzerland participates shall be considered as a coherent whole which ensures a balance of rights and obligations between the Union and Switzerland. & /en 24 2. This Agreement constitutes a bilateral agreement in a field related to the internal market in which Switzerland participates. ARTICLE 25 Joint Committee 1. A Joint Committee is hereby established. The Joint Committee shall be composed of representatives of the Contracting Parties. 2. The Joint Committee shall be co-chaired by a representative of the Union and a representative of Switzerland. 3. The Joint Committee shall: (a) ensure the proper functioning and the effective administration and application of this Agreement; (b) provide a forum for mutual consultation and a continuous exchange of information between the Contracting Parties, in particular with a view to finding a solution to any difficulty of interpretation or application of this Agreement or of a legal act of the Union to which reference is made in this Agreement in accordance with Article 32; (c) make recommendations to the Contracting Parties in matters pertaining to this Agreement; (d) adopt decisions where expressly provided for in this Agreement; and & /en 25 (e) exercise any other competence granted to it in this Agreement. 4. In the event of an amendment to Articles 1 to 6, 10 to 15, 17 or 18 of the Protocol (No 7) on the privileges and immunities of the European Union, annexed to the Treaty on the Functioning of the European Union (hereinafter referred to as "Protocol (No 7)"), the Joint Committee shall amend the Appendix to Annex I accordingly. 5. The Joint Committee shall act by consensus. Decisions shall be binding on the Contracting Parties, which shall take all necessary measures to implement them. 6. The Joint Committee shall meet at least once a year, in Brussels and Bern alternatively, unless the co-chairs decide otherwise. It shall also meet at the request of either Contracting Party. The co-chairs may agree that a meeting of the Joint Committee be held by videoconference or teleconference. 7. The Joint Committee shall adopt its rules of procedure and update them as necessary. 8. The Joint Committee may decide to set up any working party or group of experts that can assist it in carrying out its duties. & /en 26  CHAPTER 2 ALIGNMENT OF THIS AGREEMENT WITH LEGAL ACTS OF THE UNION ARTICLE 26 Participation in the drafting of legal acts of the Union ("decision shaping") 1. When drafting a proposal for a legal act of the Union in accordance with the TFEU in the field covered by this Agreement, the European Commission (hereinafter referred to as the "Commission") shall inform Switzerland thereof and shall informally consult Switzerland's experts in the same way that it asks for the views of experts from the Member States of the Union for the drafting of its proposals. At the request of either Contracting Party, a preliminary exchange of views shall take place within the Joint Committee. The Contracting Parties shall consult each other again, at the request of either of them, within the Joint Committee at important moments of the phase preceding the adoption of the legal act by the Union, in a continuous process of information and consultation. 2. When preparing, in accordance with the TFEU, delegated acts concerning basic acts of Union law in the field covered by this Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts and shall consult Switzerland's experts on the same basis as it consults the experts of the Member States of the Union. & /en 27 3. When preparing, in accordance with the TFEU, implementing acts concerning basic acts of Union law in the field covered by this Agreement, the European Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts to be submitted to the committees assisting the Commission in the exercise of its implementing powers and shall consult Switzerland's experts on the same basis as it consults the experts from the Member States of the Union. 4. Switzerland's experts shall be involved in the work of committees not covered by paragraphs 2 and 3 where this is required for the proper functioning of this Agreement. A list of those committees and, where appropriate, of other committees with similar characteristics, shall be drawn up and updated by the Joint Committee. 5. This Article shall not apply with regard to legal acts of the Union or provisions thereof falling within the scope of an exception referred to in Article 27(8). ARTICLE 27 Integration of legal acts of the Union 1. In order to guarantee legal certainty and the homogeneity of the law in the field related to the internal market in which Switzerland participates by virtue of this Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the field covered by this Agreement are integrated into this Agreement as quickly as possible after their adoption. 2. Legal acts of the Union integrated into Annexes I and VI in accordance with paragraph 5 shall be, by their integration into this Agreement, part of the legal order of Switzerland subject, as the case may be, to the adaptations decided upon by the Joint Committee. & /en 28 3. Switzerland shall, with applicability in the electricity sector, adopt or maintain provisions laying down requirements that ensure at least the same level of environmental protection as laid down in the legal acts of the Union integrated into Annex V in accordance with paragraph 5. The provisions of Swiss law adopted or maintained in accordance with this paragraph may not be invoked to restrict the free access to the Swiss market of goods and services from the Union that comply with the requirements laid down in the legal acts of the Union referred to in Annex V. 4. When it adopts a legal act in the field covered by this Agreement, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. 5. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend Annexes I, V and VI to this Agreement, including the necessary adaptations. 6. Without prejudice to paragraphs 1 and 2, if necessary in order to ensure coherence of this Agreement with Annexes I, V and VI as amended pursuant to paragraph 5, the Joint Committee may propose, for approval by the Contracting Parties according to their internal procedures, the revision of this Agreement. 7. References in this Agreement to legal acts of the Union that are no longer in force shall be construed as references to the repealing legal act of the Union as integrated into the Annexes I, V and VI as from the entry into force of the Joint Committee's decision on the corresponding amendment of Annexes I, V and VI, unless otherwise provided in that decision. & /en 29 8. The obligation set out in paragraph 1 shall not apply to legal acts of the Union or provisions thereof falling within the scope of the following exception: – Article 9(3). 9. Subject to Article 28, decisions of the Joint Committee pursuant to paragraph 5 shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. 10. The Contracting Parties shall cooperate in good faith throughout the procedure set out in this Article in order to facilitate decision-making. ARTICLE 28 Fulfilment of constitutional obligations by Switzerland 1. During the exchange of views referred to in Article 27(4), Switzerland shall inform the Union whether a decision as referred to in Article 27(5) requires the fulfilment of constitutional obligations by Switzerland in order to become binding. 2. Where the decision referred to in Article 27(5) requires Switzerland to fulfil constitutional obligations in order to become binding, Switzerland shall have a time limit of two years maximum from the date of the information provided for in paragraph 1, except where a referendum procedure is launched, in which case this period shall be extended by one year. & /en 30 3. Pending the information by Switzerland that it has fulfilled its constitutional obligations, the Contracting Parties shall provisionally apply the decision referred to in Article 27(5), unless Switzerland informs the Union that the provisional application of the decision is not possible and provides the reasons for this. Under no circumstances can the provisional application occur before the date on which the corresponding legal act of the Union becomes applicable in the Union. 4. Switzerland shall notify the Union without delay through the Joint Committee once it has fulfilled the constitutional obligations referred to in paragraph 1. 5. The decision shall enter into force on the day on which the notification provided for in paragraph 4 is delivered, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. & /en 31  CHAPTER 3 INTERPRETATION AND APPLICATION OF THE AGREEMENT ARTICLE 29 Uniform interpretation principle 1. For the purpose of achieving the objectives set out in Articles 1, 12 and 23 and in accordance with the principles of public international law, the bilateral agreements in the fields related to the internal market in which Switzerland participates and the legal acts of the Union to which reference is made in such agreements shall be uniformly interpreted and applied in the fields related to the internal market in which Switzerland participates. 2. The legal acts of the Union to which reference is made in this Agreement and, to the extent that their application involves concepts of Union law, the provisions of this Agreement shall be interpreted and applied in accordance with the case law of the Court of Justice of the European Union, prior or subsequent to the signature of this Agreement. & /en 32  ARTICLE 30 Effective and harmonious application principle 1. The Commission and the competent Swiss authorities shall cooperate and assist each other in ensuring the surveillance of the application of this Agreement. They may exchange information on the activities of surveillance of the application of this Agreement. They may exchange views and discuss issues of mutual interest. 2. Each Contracting Party shall take appropriate measures to ensure the effective and harmonious application of this Agreement on its territory. 3. The surveillance of the application of this Agreement shall be carried out jointly by the Contracting Parties within the Joint Committee. If the Commission or the competent Swiss authorities become aware of a case of incorrect application, the matter may be referred to the Joint Committee with a view to finding an acceptable solution. 4. The Commission and the competent Swiss authorities respectively shall monitor the application of this Agreement by the other Contracting Party. The procedure provided for in Article 32 of this Agreement applies. To the extent that certain surveillance competences of the institutions of the Union as regards one Contracting Party are necessary to ensure the effective and harmonious application of this Agreement, such as investigation and decision powers, this Agreement must foresee them specifically. & /en 33  ARTICLE 31 Exclusivity principle The Contracting Parties undertake not to submit a dispute regarding the interpretation or application of this Agreement and of the legal acts of the Union to which reference is made in this Agreement or, where applicable, regarding the conformity with this Agreement of a decision adopted by the Commission on the basis of this Agreement to any method of settlement other than those provided for in this Part. ARTICLE 32 Procedure in the event of difficulty of interpretation or application 1. In the event of difficulty of interpretation or application of this Agreement or of a legal act of the Union to which reference is made in the Agreement, the Contracting Parties shall consult each other within the Joint Committee in order to find a mutually acceptable solution. To this end, all useful elements of information shall be provided to the Joint Committee to enable it to make a detailed examination of the situation. The Joint Committee shall examine all possibilities that allow the proper functioning of this Agreement to be maintained. 2. If the Joint Committee is not able to find a solution to the difficulty referred to in paragraph 1 within three months of the date on which the difficulty was submitted to it, either of the Contracting Parties may request that an arbitral tribunal settle the dispute in accordance with the rules laid down in the Protocol. & /en 34 3. Where the dispute raises a question concerning the interpretation or application of a provision referred to in Article 29(2), and if the interpretation of that provision is relevant to the settlement of the dispute and necessary to enable it to decide, the arbitral tribunal shall refer that question to the Court of Justice of the European Union. Where the dispute raises a question concerning the interpretation or application of a provision that falls within the scope of an exception from the dynamic alignment obligation referred to in Article 27(8) and where the dispute does not involve the interpretation or application of concepts of Union law, the arbitral tribunal shall settle the dispute without referral to the Court of Justice of the European Union. 4. Where the arbitral tribunal refers a question to the Court of Justice of the European Union pursuant to paragraph 3: (a) the ruling of the Court of Justice of the European Union shall be binding on the arbitral tribunal, and; (b) Switzerland shall enjoy the same rights as the Member States and the institutions of the Union and shall be subject to the same procedures before the Court of Justice of the European Union, mutatis mutandis. 5. Each Contracting Party shall take all measures necessary to comply in good faith with the arbitral tribunal's decision. The Contracting Party that has been found by the arbitral tribunal not to have complied with this Agreement shall inform the other Contracting Party through the Joint Committee of the measures it has taken to comply with the arbitral tribunal's decision. & /en 35  ARTICLE 33 Compensatory measures 1. If the Contracting Party that has been found by the arbitral tribunal not to have complied with this Agreement does not inform the other Contracting Party, within a reasonable time period set in accordance with Article IV.2(6) of the Protocol, of the measures it has taken to comply with the arbitral tribunal's decision, or if the other Contracting Party considers that the measures communicated do not comply with the arbitral tribunal's decision, this other Contracting Party may adopt proportionate compensatory measures within the framework of this Agreement or of any other bilateral agreement in the fields related to the internal market in which Switzerland participates (hereinafter referred to as "compensatory measures") in order to remedy a potential imbalance. It shall notify the Contracting Party that has been found by the arbitral tribunal not to have complied with this Agreement of the compensatory measures, which shall be specified in the notification. Those compensatory measures shall take effect three months from the date of this notification. 2. If, within one month from the date of the notification of the intended compensatory measures, the Joint Committee has not taken a decision to suspend, amend or annul those compensatory measures, either Contracting Party may submit to arbitration the question of the proportionality of those compensatory measures, in accordance with the Protocol. 3. The arbitral tribunal shall decide within the time limits laid down in Article III.8(4) of the Protocol. 4. Compensatory measures shall not have retroactive effect. In particular, the rights and obligations already acquired by individuals and economic operators before the compensatory measures take effect shall be preserved. & /en 36  ARTICLE 34 Cooperation between jurisdictions 1. To promote the homogeneous interpretation, the Swiss Federal Supreme Court and the Court of Justice of the European Union shall agree on a dialogue and the modalities thereof. 2. Switzerland shall have the right to lodge statements of case or written observations with the Court of Justice of the European Union where a court of a Member State of the Union refers to the Court of Justice of the European Union a question concerning the interpretation of this Agreement or of a provision of a legal act of the Union referred to therein for a preliminary ruling. ARTICLE 35 References to territories Whenever the legal acts of the Union integrated into this Agreement contain references to the territory of the "European Union", of the "Union", of the "common market" or of the "internal market", the references shall for the purposes of this Agreement be understood to be references to the territories referred to in Article 43. & /en 37  ARTICLE 36 References to nationals of Member States of the Union Whenever the legal acts of the Union integrated into this Agreement contain references to nationals of Member States of the Union, the references shall for the purposes of this Agreement be understood to be references to nationals of the Member States of the Union and of Switzerland. ARTICLE 37 Entry into force and implementation of the legal acts of the Union Provisions of the legal acts of the Union integrated into this Agreement on their entry into force or implementation are not relevant for the purposes of this Agreement. The time limits and dates for Switzerland for bringing into force and implementing the decisions integrating legal acts of the Union into this Agreement follow from Article 27(9) and Article 28(5), as well as from provisions on transitional arrangements. ARTICLE 38 Addressees of the legal acts of the Union Provisions of the legal acts of the Union integrated into this Agreement indicating that they are addressed to the Member States of the Union are not relevant for the purposes of this Agreement. & /en 38  PART VI OTHER PROVISIONS ARTICLE 39 General adaptations This Part provides for general adaptations applicable to the legal acts of the Union referred to in Annexes I and VI, unless otherwise provided for in the respective annex. ARTICLE 40 Exchange of information 1. Where a Member State of the Union or its competent authority is to submit information to the Commission, Switzerland or its competent authority shall submit such information to the Commission via the Joint Committee. 2. Where a Member State of the Union or its competent authority is to submit information to one or more other Member States of the Union, it shall also submit this information directly to Switzerland while informing the Commission. Where Switzerland or its competent authority is to submit information to one or more other Member States of the Union or their competent authorities, it shall do it directly and inform the Commission via the Joint Committee. & /en 39 3. The Joint Committee may agree on appropriate solutions providing for direct exchange of information in areas where rapid transfer of information is called for. 4. Paragraphs 1 and 2 are without prejudice to the sector-specific rules and arrangements applicable to the exchange of information by means of information systems. 5. Save as provided in paragraph 1, where an exchange of information between ACER or other Union institutions and a Swiss authority is necessary during the elaboration of a decision or a report, an opinion, a recommendation or another similar document, that exchange shall take place directly between the relevant entities unless the Joint Committee determines that such an exchange should take place via the Joint Committee. 6. Where the Commission or ACER, in order to exercise the competences assigned to them, need to exchange information with undertakings in Switzerland, they may exchange directly with those undertakings unless the Joint Committee determines another procedure to apply for such cases. 7. Where Member States of the Union, their authorities or undertakings are consulted during the elaboration of a Union decision, Switzerland, its authorities and its undertakings shall be consulted in the same way. & /en 40  ARTICLE 41 Non-binding documents 1. Where the Commission, ACER or other Union institutions issue reports, opinions, declarations, recommendations or other similar documents to the Member States of the Union or their authorities, they may also do so in relation to Switzerland or its authorities. Where Member States of the Union, their authorities or undertakings are consulted during the elaboration of those documents, Switzerland, its authorities and its undertakings shall be consulted in the same way. 2. Unless they are published, the Commission shall deliver those documents via the Joint Committee. The Joint Committee can agree on providing for direct exchange. ACER and other institutions shall deliver the documents directly. ARTICLE 42 Publication of information 1. Where a Member State of the Union is to publish certain information, also Switzerland shall, under this Agreement, publish the relevant information in a corresponding manner. 2. Where, according to an act referred to in the Annexes, information is to be published in the Official Journal of the European Union, the Union institution shall publish corresponding information regarding Switzerland therein as well. & /en 41  PART VII FINAL PROVISIONS ARTICLE 43 Territorial scope This Agreement shall apply, of the one part, to the territory in which the Treaty on European Union and the TFEU apply and under the conditions laid down in those Treaties, and, of the other part, to the territory of Switzerland. ARTICLE 44 Evolutive clause for an extended cooperation The Contracting Parties declare their willingness to consider deepening cooperation in the energy sector beyond electricity, in particular in the fields of hydrogen or renewable gases. ARTICLE 45 Classified information and sensitive non-classified information 1. Nothing in this Agreement shall be construed as requiring a Contracting Party to make available classified information. & /en 42 2. Classified information or material provided by, or exchanged between, the Contracting Parties under this Agreement shall be handled and protected in compliance with the Agreement between the European Union and the Swiss Confederation on the security procedures for the exchange of classified information, done at Brussels on 28 April 2008, and any security arrangement implementing it. 3. The Joint Committee shall adopt, by means of a decision, handling instructions to ensure the protection of sensitive non-classified information exchanged between the Contracting Parties. ARTICLE 46 Professional secrecy Representatives, experts and other agents of the Contracting Parties shall be required, even after their duties have ceased, not to disclose information, obtained in the framework of this Agreement, which is covered by the obligation of professional secrecy. ARTICLE 47 Annexes and Protocols The Annexes and Protocols to this Agreement shall form an integral part thereof. & /en 43  ARTICLE 48 Implementation 1. The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from this Agreement and shall refrain from taking any measure which could jeopardise the achievement of its objectives. 2. The Contracting Parties shall take all measures necessary to guarantee the intended result of the legal acts of the Union to which reference is made in this Agreement and shall refrain from taking any measures that could jeopardise the achievement of their aims. ARTICLE 49 Financial contribution 1. Switzerland shall contribute to the financing of the activities of the Union agencies, information systems and other activities listed in Article 1 of Annex VII to which it has access, in accordance with this Article and Annex VII. The Joint Committee may adopt a decision to amend Annex VII. 2. The Union may suspend the participation of Switzerland in the activities referred to in paragraph 1 of this Article at any time if Switzerland fails to meet the payment deadline in accordance with the terms of payment set out in Article 2 of Annex VII. & /en 44 Where Switzerland fails to meet a payment deadline, the Union shall send Switzerland a formal letter of reminder. Where no full payment is made within 30 days of the date of reception of that formal letter of reminder, the Union may suspend the participation of Switzerland in the relevant activity. 3. The financial contribution shall take the form of the sum of: (a) an operational contribution; and (b) a participation fee. 4. The financial contribution shall take the form of an annual financial contribution and shall be due at the dates specified in the calls for funds issued by the Commission. 5. The operational contribution shall be based on a contribution key defined as the ratio of the gross domestic product (hereinafter referred to as "GDP") of Switzerland at market prices to the GDP of the Union at market prices. For that purpose, the figures for GDP at market prices of the Contracting Parties shall be the latest such figures available as of 1 January of the year in which the annual payment is made as provided by the Statistical Office of the European Union, with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics, done at Luxembourg on 26 October 2004. If that Agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development. & /en 45 6. The operational contribution for each Union agency shall be calculated by applying the contribution key to its annual voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question, taking into account for each agency any adjusted operational contribution as defined in Article 1 of Annex VII. The operational contribution for the information systems and other activities shall be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing that budget, such as work programmes or contracts. All reference amounts shall be based on commitment appropriations. 7. The annual participation fee shall be 4 % of the annual operational contribution as calculated in accordance with paragraphs 5 and 6. 8. The Commission shall provide Switzerland with adequate information in relation to the calculation of its financial contribution. That information shall be provided having due regard to the Union's confidentiality and data protection rules. 9. All financial contributions by Switzerland or payments from the Union and the calculation of amounts due or to be received shall be made in euro. 10. Where the entry into force of this Agreement does not coincide with the beginning of a calendar year, Switzerland's operational contribution for the year in question shall be subject to adjustment, according to the methodology and terms of payment defined in Article 4 of Annex VII. 11. Detailed provisions for the application of this Article are set out in Annex VII. & /en 46 12. Three years following the entry into force of this Agreement, and every three years subsequently, the Joint Committee shall review the conditions of Switzerland's participation as defined in Article 1 of Annex VII and, where appropriate, adapt them. ARTICLE 50 Entry into force 1. This Agreement shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Agreement. 2. This Agreement shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; & /en 47 (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (i) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (j) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (l) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; & /en 48 (m) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (n) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. ARTICLE 51 Amendment and termination 1. This Agreement may be amended at any time by mutual agreement of the Contracting Parties. 2. The Union or Switzerland may terminate this Agreement by notifying the other Contracting Party. This Agreement shall cease to be in force six months after receipt of that notification. 3. Where this Agreement ceases to be in force, the rights and obligations that individuals and economic operators have already acquired by virtue of this Agreement before the date of the cessation of this Agreement shall be preserved. The Contracting Parties shall settle by mutual agreement what action is to be taken in respect of rights in the process of being acquired. & /en 49 Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Agreement. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 50  ANNEX I ELECTRICITY Unless otherwise provided for in technical adaptations: – rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland; – references to natural or legal persons residing or established in the Member States of the Union in those acts shall be read as including references to natural or legal persons residing or established in Switzerland. This shall be applied in full respect of the institutional provisions contained in Part V of this Agreement. & /en 1 ACTS REFERRED TO 1. 32019 R 0941: Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019 on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC (OJ L 158, 14.6.2019, p. 1, ELI: http://data.europa.eu/eli/reg/2019/941/oj) The provisions of Regulation (EU) 2019/941 shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 3(1), the words "As soon as possible and in any event by 5 January 2020, each Member State" are replaced by the following: "At the latest three years after the entry into force of the Agreement, Switzerland"; (b) in Article 7(1), the words "Within four months of the identification of the regional electricity crisis scenarios in accordance with Article 6(1)" are replaced by the following: "At the latest three years and four months after the entry into force of the Agreement"; (c) in Article 7(4), the words "Within four months of identification of regional electricity crisis scenarios in accordance with Article 6(1)," are replaced by the following: "At the latest three years and four months after the entry into force of this Agreement"; (d) Articles 10 and 14 shall apply at the latest three years after the entry into force of this Agreement. & /en 2 2. 32019 R 0942: Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (OJ L 158, 14.6.2019, p. 22, ELI: http://data.europa.eu/eli/reg/2019/942/oj), as amended by: – 32024 R 1787: Regulation (EU) 2024/1787 of the European Parliament and of the Council of 13 June 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942 (OJ L 1787, 15.7.2024, ELI: http://data.europa.eu/eli/reg/2024/1787/oj) – 32024 R 1789: Regulation (EU) 2024/1789 of the European Parliament and of the Council of 13 June 2024 on the internal markets for renewable gas, natural gas and hydrogen, amending Regulations (EU) No 1227/2011, (EU) 2017/1938, (EU) 2019/942 and (EU) 2022/869 and Decision (EU) 2017/684 and repealing Regulation (EC) No 715/2009 (recast) (OJ L 1789, 15.7.2024, ELI: http://data.europa.eu/eli/reg/2024/1789/oj) The provisions of Regulation (EU) 2019/942 shall, for the purposes of this Agreement, be read with the following adaptations: (a) Regulation (EU) 2019/942 shall only apply to matters falling within the scope of this Agreement; & /en 3 (b) notwithstanding the general provision at the beginning of Annex I of this Agreement, the term "Member State(s)" contained in Regulation (EU) 2019/942 shall be read to include, in addition to its meaning in Regulation (EU) 2019/942, Switzerland. Similarly, the term "regulatory authority" contained in Regulation (EU) 2019/942 shall be understood to include, in addition to its meaning in Regulation (EU) 2019/942, the regulatory authority of Switzerland; (c) in Article 3, the following paragraph is added: "3. In relation to Switzerland, ACER shall have the competences assigned to it in accordance with Articles 3 to 10 and 12 of Regulation (EU) 2019/942 unless otherwise provided for in this Agreement. Before ACER takes a decision relating to Switzerland, it shall consult the competent Swiss authority."; (d) in Article 5(4), the following is added: "For Article 9(6)(b) of Regulation (EU) 2015/1222 the following procedure shall apply: In so far as the amendment of capacity calculation regions concerns the allocation of Swiss borders to a specific region, Switzerland has the right to request that the Joint Committee decide on the approval of the allocation of Swiss borders to a specific region. If a decision of the Joint Committee is not reached within six months as of the request, ACER shall decide on the capacity calculation regions in accordance with the first subparagraph of this paragraph, taking into account the concerns of Switzerland. & /en 4  If the Joint Committee decides not to approve the allocation of the Swiss borders to a specific region, ACER shall prepare a new decision taking into account the concerns of Switzerland."; (e) in Article 21, the following is added: "The NRA of Switzerland shall participate fully in the Board of Regulators as well as in all other preparatory bodies of ACER, including working groups, committees and task forces, with regard to matters falling within the scope of this Agreement. It shall not have the right to vote in the Board of Regulators. The internal rules of procedure of the Board of Regulators and the internal rules of procedure for the functioning of the working groups shall give full effect to the participation of the NRA of Switzerland."; (f) in Article 31, the following is added: "Switzerland shall participate in the financing of ACER. For this purpose, the procedures laid down in Article 49 of this Agreement shall apply."; (g) Switzerland shall grant to ACER and its staff, within the framework of their official functions for ACER, the privileges and immunities provided for in the Appendix to this Annex, which are based on Articles 1 to 6, 10 to 15, 17 and 18 of Protocol (No 7). References to the corresponding articles of the Protocol are indicated between brackets for information; & /en 5  (h) in Article 39, the following paragraph is added: "1a. By way of derogation from Article 12(2)(a) of the Conditions of Employment of Other Servants of the European Union, laid down in Regulation No 31 (EEC), 11 (EAEC), laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community (OJ 45, 14.6.1962, p. 1385), including any subsequent amendments, ACER may, if it so decides, engage under contract Swiss nationals that enjoy their full rights as citizens. ACER may accept the secondment of experts by Switzerland."; (i) in Article 41(1), the following is added: "Regulation (EC) No 1049/2001 of the European Parliament and the Council of 30 May 2001 (OJ L 145, 31.5.2001, p. 43) regarding public access to European Parliament, Council and Commission documents shall, for the application of this Regulation, apply to any documents of ACER regarding Switzerland as well."; 3. 32020 D 2152: Commission Decision (EU) 2020/2152 of 17 December 2020 on fees due to the European Union Agency for the Cooperation of Energy Regulators for collecting, handling, processing and analysing of information reported under Regulation (EU) No 1227/2011 of the European Parliament and of the Council (OJ L 428, 18.12.2020, p. 68, ELI: http://data.europa.eu/eli/dec/2020/2152/oj) & /en 6 4. 32019 R 943: Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity. (OJ L 158, 14.6.2019, p. 54, ELI: http://data.europa.eu/eli/reg/2019/943/oj), as amended by: – 32022 R 0869: Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation (EU) No 347/2013 (OJ EU L 152, 3.6.2022, p. 45, ELI: http://data.europa.eu/eli/reg/2022/869/oj) – 32024 R 1747: Regulation (EU) 2024/1747 of the European Parliament and of the Council of 13 June 2024 amending Regulations (EU) 2019/942 and (EU) 2019/943 as regards improving the Union's electricity market design (OJ L, 2024/1747, 26.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1747/oj) The provisions of Regulation (UE) 2019/943 shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 14(8), the following is added: "In so far as the Commission intends to amend a bidding zone that covers Swiss territory, it shall submit the draft decision to the Joint Committee for approval. The Joint Committee shall decide within six months from the submission. If the Joint Committee does not approve the amendment of the bidding zone, covering Swiss territory, the Commission shall prepare a new decision taking into account the concerns of Switzerland."; & /en 7 (b) in Article 15(5), the following is added: "In so far as the Commission intends to amend a bidding zone that covers Swiss territory, it shall submit the draft decision to the Joint Committee for approval. The Joint Committee shall decide within six months from the submission. If the Joint Committee does not approve the amendment of the bidding zone, covering Swiss territory, the Commission shall prepare a new decision taking into account the concerns of Switzerland."; (c) capacity mechanisms introduced by Switzerland shall be approved by the competent Swiss authority. Accordingly, for those capacity mechanisms, in Article 21(8), the word "Commission" shall be replaced by "the competent Swiss authority"; (d) in Article 24(1), point (a) shall be replaced by the following: "(a) make assumptions taking into account the particularities of national electricity demand and supply, including such particularities resulting from the fact that Switzerland is not a Member State of the Union, or from elements that may be particularly relevant for security of supply in Switzerland, such as possible reduced availability of nuclear power and gas for power generation in neighbouring countries, provided that such concerns are considered in a proportionate and reasonable manner"; (e) the Commission shall have the competences pursuant to Articles 34, 63 and 64 in cases relating to Switzerland; & /en 8 (f) in Article 65(2), the following is added: "In the event that the Commission intends to request information for the purposes of this Article from an undertaking situated in Switzerland, the Commission shall provide the Swiss NRA with a request for information including a time limit by which the undertaking concerned is required to provide this information. The NRA shall immediately request this information from the undertaking concerned and include in its request the information pursuant to paragraph 3. The Swiss NRA shall pass on the response of the undertakings concerned to the Commission immediately upon receipt. If an undertaking does not provide the information requested pursuant to the third subparagraph within the time limit set by the Commission or supplies incomplete information, the Commission may request the Swiss NRA to adopt decisions pursuant to paragraph 5."; (g) in Article 65(5), the following is added: "If so requested by the Commission pursuant to paragraph 2, the Swiss NRA shall require the undertaking concerned by decision to provide the requested information."; (h) in Article 66(2), the following is added: "If the conditions of this paragraph are met regarding a reply to an information request carried out by the Swiss NRA pursuant to Article 65(2), the Commission may request that the Swiss NRA adopt a decision pursuant to this paragraph with regard to the undertakings concerned."; & /en 9  (i) a new Article is added: "Article 66a Decisions adopted by the Swiss NRA pursuant to Articles 65 and 66 shall be subject to judicial control of Swiss courts."; (j) Article 7b, Article 12(2) to (7), Article 19a(3) to (9), Articles 19e, 19f, 50 and 63 shall be implemented at the latest three years after the entry into force of this Agreement. 5. 32010 R 0838: Commission Regulation (EU) No 838/2010 of 23 September 2010 on laying down guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging (OJ L 250, 24.9.2010, p. 5, ELI: http://data.europa.eu/eli/reg/2010/838/oj) For the purposes of this Agreement, the Commission shall have the competences pursuant to Part A, points 3.3 and 5.1, of the Annex to Regulation (EU) No 838/2010. 6. 32013 R 0543: Commission Regulation (EU) No 543/2013 of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to Regulation (EC) No 714/2009 of the European Parliament and of the Council (OJ EU L 163, 15.6.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/543/oj), as amended by: – 32019 R 943: Regulation (EU) 2019/943 of 5 June 2019 (OJ L 158, 14.6.2019, p. 54) & /en 10 7. 32015 R 1222: Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24, ELI: http://data.europa.eu/eli/reg/2015/1222/oj), as amended by: – 32021 R 0280: Commission Implementing Regulation (EU) 2021/280 of 22 February 2021 amending Regulations (EU) 2015/1222, (EU) 2016/1719, (EU) 2017/2195 and (EU) 2017/1485 in order to align them with Regulation (EU) 2019/943 (OJ EU L 62, 23.2.2021, p. 24, ELI: http://data.europa.eu/eli/reg/2015/1222/oj) The provisions of Regulation (UE) 2015/1222 shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 1, the following paragraph is added: "6. The Swiss TSO and market operators shall participate in single day-ahead and single intraday coupling under the same conditions as TSOs and market operators from the Union, once the technical and regulatory conditions under this Regulation are fulfilled. The Commission shall, in its decision pursuant to Article 1(5), take into account that the implementation of the Agreement is deemed to fulfil the conditions according to Article 1(4). All actors involved shall swiftly take the necessary steps to allow for Switzerland joining the market coupling within 9 months of the entry into force of the Agreement."; & /en 11 (b) with regard to the terms and conditions or methodologies ("TCMs") whose adoption is foreseen under Regulation (EU) 2015/1222: (i) the Swiss TSO, Nominated Electricity market Operators ("NEMOs") and NRA participate in the elaboration of any new or amended TCMs, and their comments shall be taken into account when deciding about the TCMs; (ii) when voting and considering whether the relevant Member State or population thresholds for qualified majorities are attained, Switzerland and its population shall be taken into account; (iii) the references to "regions composed of more than five Member States" in Article 9(3), first subparagraph, and to "regions composed of five Member States or less" in Article 9(3), third subparagraph, shall be read as "regions composed of more than four Union Member States and Switzerland" or as "regions composed of four Union Member States and Switzerland or less"; (iv) when the allocation of Swiss borders to a capacity calculation region is amended pursuant to Article 9(6)(b), the procedure set out under Article 5(4) of Regulation (EU) 2019/942 applies; (v) the TCMs which were already adopted at the date of signature of this Agreement shall apply in Switzerland; and & /en 12  (vi) new or amended TCMs which are adopted ACER in accordance with the procedure established in Regulation (EU) 2015/1222 shall be integrated within one month into the Swiss regulatory order by the Swiss NRA. The TCMs shall be provisionally applicable in Switzerland as from the date of their application in the Union. Any provisional application shall end with the integration into the Swiss regulatory order by the Swiss NRA. 8. 32016 R 1719: Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (OJ L 259, 27.9.2016, p. 42, ELI: http://data.europa.eu/eli/reg/2016/1719/oj), as amended by: – 32021 R 0280: Commission Implementing Regulation (EU) 2021/280 of 22 February 2021 amending Regulations (EU) 2015/1222, (EU) 2016/1719, (EU) 2017/2195 and (EU) 2017/1485 in order to align them with Regulation (EU) 2019/943 (OJ EU L 62, 23.2.2021, p. 24, ELI: http://data.europa.eu/eli/reg_impl/2021/280/oj) The provisions of Regulation (EU) 2016/1719 shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 1, the following paragraph is added: "6. The Swiss TSO and market operators shall participate in the single allocation platform under the same conditions as TSOs and market operators from the Union, once the technical and regulatory conditions under this Regulation are fulfilled. The Commission shall, in its decision pursuant to paragraph 5, take into account that the implementation of the Agreement is deemed to fulfil the conditions according to paragraph 4. All actors involved shall swiftly take the necessary steps to allow for Switzerland joining the market coupling within 9 months after the entry into force of the Agreement."; & /en 13 (b) with regard to the terms and conditions or methodologies ("TCMs") whose adoption is foreseen under Regulation (EU) 2016/1719: (i) the Swiss TSO and NRA participate in the elaboration of any new or amended TCMs, and their comments shall be taken into account when deciding about the TCMs; (ii) when voting and considering whether the relevant Member State or population thresholds for qualified majorities are attained, Switzerland and its population shall be taken into account; (iii) the references to "regions composed of more than five Member States" in Article 4(3), first subparagraph, and to "regions composed of five Member States or less" in Article 4(3), third subparagraph, shall be read as "regions composed of more than four Union Member States and Switzerland" or as "regions composed of four Union Member States and Switzerland or less"; (iv) the TCMs which were already adopted at the date of signature of this Agreement shall apply in Switzerland; and (v) new or amended TCMs which are adopted by ACER in accordance with the procedure established in Regulation (EU) 2016/1719 shall be integrated within one month into the Swiss regulatory order by the Swiss NRA. The TCMs shall be provisionally applicable in Switzerland as from the date of their application in the Union. Any provisional application shall end with the integration into the Swiss regulatory order by the Swiss NRA. & /en 14 9. 32017 R 2195: Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (OJ L 312, 28.11.2017, p. 6, ELI: http://data.europa.eu/eli/reg/2017/2195/oj), as amended by: – 32021 R 0280: Implementing Regulation (EU) 2021/280 of 22 February 2021 amending Regulations (EU) 2015/1222, (EU) 2016/1719, (EU) 2017/2195 and (EU) 2017/1485 in order to align them with Regulation (EU) 2019/943 (OJ EU L 62, 23.2.2021, p. 24, ELI: http://data.europa.eu/eli/reg/2015/1222/oj) The provisions of Regulation (UE) 2017/2195 shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 1, the following paragraph is added: "9. The Swiss TSO and market operators shall participate in the European platforms for the exchange of standard products for balancing energy under the same conditions as TSOs and market operators from the Union, once the technical and regulatory conditions under this Regulation are fulfilled. The Commission shall, in its decision pursuant to paragraph 7, take into account that the implementation of the Agreement is deemed to fulfil the conditions according to paragraph 6. All actors involved shall swiftly take the necessary steps to allow for Switzerland joining the market coupling within 9 months of the entry into force of the Agreement."; & /en 15 (b) with regard to the terms and conditions or methodologies ("TCMs") whose adoption is foreseen under Regulation (EU) 2017/2195: (i) the Swiss TSO and NRA participate in the elaboration of any new or amended TCMs, and their comments shall be taken into account when deciding about the TCMs; (ii) when voting and considering whether the relevant Member State or population thresholds for qualified majorities are attained, Switzerland and its population shall be taken into account; (iii) the references to "regions composed of more than five Member States" in Article 4(4) and to "regions composed of five Member States or less" in Article 4(4), shall be read as "regions composed of more than four Union Member States and Switzerland" or as "regions composed of four Union Member States and Switzerland or less"; (iv) the TCMs which were already adopted at the date of signature of this Agreement shall apply in Switzerland; and (v) new or amended TCMs which are adopted by ACER in accordance with the procedure established in Regulation (EU) 2017/2195 shall be integrated within one month into the Swiss regulatory order by the Swiss NRA. The TCMs shall be provisionally applicable in Switzerland as from the date of their application in the Union. Any provisional application shall end with the integration into the Swiss regulatory order by the Swiss NRA. & /en 16 10. 32017 R 2196: Commission Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration (OJ EU L 312, 28.11.2017, p. 54, ELI: http://data.europa.eu/eli/reg/2017/2196/oj) 11. 32016 R 1388: Commission Regulation (EU) 2016/1388 of 17 August 2016 establishing a network code on demand connection (OJ EU L 223, 18.8.2016, p. 10, ELI: http://data.europa.eu/eli/reg/2016/1388/oj) For the purposes of this Agreement, the Commission shall have the competences pursuant to Article 51. 12. 32016 R 0631: Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (OJ EU L 112, 27.4.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/631/oj) For the purposes of this Agreement, the Commission shall have the competences pursuant to Article 61. 13. 32016 R 1447: Commission Regulation (EU) 2016/1447 of 26 August 2016 establishing a network code on requirements for grid connection of high-voltage direct current system and direct current-connected power park modules (OJ EU L 241, 8.9.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/1447/oj) For the purposes of this Agreement, the Commission shall have the competences pursuant to Article 78. & /en 17 14. 32017 R 1485: Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation (OJ EU L 220, 25.8.2017, p. 1, ELI: http://data.europa.eu/eli/reg/2017/1485/oj), as amended by: – 32021 R 0280: Implementing Regulation (EU) 2021/280 of 22 February 2021 (OJ L 62, 23.2.2021, p. 24) The provisions of Regulation (EU) 2017/1485 shall, for the purposes of this Agreement, be read with the following adaptations: (a) with regard to the terms and conditions or methodologies ("TCMs") whose adoption is foreseen under Regulation (EU) 2017/1485: (i) the Swiss TSO and NRA participate in the elaboration of any new or amended TCMs, and their comments shall be taken into account when deciding about the TCMs; (ii) when voting and considering whether the relevant Member State or population thresholds for qualified majorities are attained, Switzerland and its population shall be taken into account; (iii) the references to "regions composed of more than five Member States" in Article 5(5) and to "regions composed of five Member States or less" in Article 5(5) shall be read as "regions composed of more than four Union Member States and Switzerland" or as "regions composed of four Union Member States and Switzerland or less"; & /en 18 (iv) the TCM which were already adopted at the date of signature of this Agreement shall apply in Switzerland; and (v) new or amended TCMs which are adopted by ACER in accordance with the procedure established in Regulation (EU) 2017/1485 shall be integrated within one month into the Swiss regulatory order by the Swiss NRA. The TCMs shall be provisionally applicable in Switzerland as from the date of their application in the EU. Any provisional application shall end with the integration into the Swiss regulatory order by the Swiss NRA. & /en 19 15. 32024 L 01366: Commission Delegated Regulation (EU) 2024/1366 of 11 March 2024 supplementing Regulation (EU) 2019/943 of the European Parliament and of the Council by establishing a network code on sector-specific rules for cybersecurity aspects of cross-border electricity flows (OJ EU L, 2024/1366, 24.5.2024, ELI: http://data.europa.eu/eli/reg_del/2024/1366/oj) The provisions of Regulation (EU) 2024/1366 shall, for the purposes of this Agreement, be read with the following adaptations: (a) the following Article is inserted: "Article 1a 1. By the entry into force of the Agreement, Switzerland shall establish or designate the following authorities and bodies: (a) a national governmental or regulatory authority responsible for carrying out the tasks assigned to the "competent authority" in this Regulation; regarding Switzerland, references in this Regulation to "competent authority" shall be read as referring to that designated authority; & /en 20 (b) one or more computer security incident response teams (CSIRTs) responsible for incident handling within the scope of this Regulation in accordance with a well- defined process; those teams may establish cooperation relationships with national CSIRTs of Member States of the Union insofar as required for the application of this Regulation; as part of such cooperation relationships, Switzerland shall facilitate effective, efficient and secure information exchange with those national CSIRTs, using relevant information-sharing protocols, including the traffic light protocol. Regarding Switzerland, references in this Regulation to "CSIRT" shall be read as referring to the team or teams designated according to the first subparagraph. Switzerland shall designate one of its CSIRTs as a coordinator for the purposes of coordinated vulnerability disclosure (hereinafter referred to as "coordinating CSIRT"). The coordinating CSIRT shall act as a trusted intermediary, facilitating, where necessary, the interaction between the natural or legal person reporting a vulnerability and the manufacturer or provider of the potentially vulnerable information and communication technology (ICT) products or ICT services, upon the request of either of these parties. The tasks of the coordinating CSIRT shall include: (i) identifying and contacting the entities concerned; & /en 21  (ii) assisting the natural or legal persons reporting a vulnerability; and (iii) negotiating disclosure timelines and managing vulnerabilities that affect multiple entities. Switzerland shall ensure that natural or legal persons are able to report, anonymously where they so request, a vulnerability to the coordinating CSIRT. The latter shall ensure that diligent follow-up action is carried out with regard to the reported vulnerability and shall ensure the anonymity of the natural or legal person reporting the vulnerability. Where a reported vulnerability could have a significant impact on entities not only in Switzerland but also in one or more Member States of the Union, the coordinating CSIRT of Switzerland shall, where appropriate, cooperate with other coordinating CSIRTs within the CSIRTs network; (c) one or more competent authorities responsible for the management of large-scale cybersecurity incidents and crises within the scope of this Regulation, which shall define a national large-scale cybersecurity incident and crisis response plan for electricity where the objectives of and arrangements for the management of large- scale cybersecurity incidents and crises are set out. Regarding Switzerland, references in this Regulation to "cyber crisis management authorities", "NIS cyber crisis management authorities" or "national cyber crisis management authorities" shall be read as referring to that designated authority; & /en 22  (d) a point of contact exercising a liaison function to ensure cross-border cooperation within the scope of this Regulation between the Swiss authorities and the relevant authorities of the Member States of the Union, and, where appropriate, with the Commission and the European Union Agency for Cybersecurity (hereinafter referred to as "ENISA"), as well as to ensure cross-sectoral cooperation with other competent authorities within Switzerland. Regarding Switzerland, references in this Regulation to "national single point of contact" shall be read as referring to that designated point of contact; (e) a competent authority responsible for cybersecurity. Regarding Switzerland, references in this Regulation to "competent authorities responsible for cybersecurity" or "CS-NCAs" shall be read as referring to that designated authority. 2. By the entry into force of the Agreement, Switzerland shall notify the Commission, ACER, ENTSO-E and the EU DSO entity, communicating to them the name and the contact details of the respective authorities referred to in paragraph 1."; (b) with regard to the terms and conditions or methodologies ("TCMs") or plans whose adoption is provided for in Regulation (EU) 2024/1366: (i) the Swiss TSO, the Swiss distribution system operators (DSO) via the EU DSO entity and competent authority participate in the elaboration of any new or amended TCMs or plans, and their comments shall be taken into account when deciding about the TCMs; & /en 23  (ii) when voting on TCMs or plans and considering whether the relevant Member State of the Union or population thresholds for qualified majorities are attained, Switzerland and its population shall be taken into account; (iii) the references to "the system operation region concerned is composed of more than five Member States" in Article 7(3), shall be read as "the system operation region concerned is composed of more than four Member States of the European Union and Switzerland"; (iv) the TCMs and plans which were already adopted at the date of signature of this Agreement shall apply in Switzerland; (v) new or amended TCMs and plans which are adopted in the Union in accordance with the procedure established in Regulation (EU) 2024/1366 shall be integrated within one month into the Swiss regulatory order by the Swiss competent authority. The TCMs shall be provisionally applicable in Switzerland as from the date of their application in the Union. Any provisional application shall end with the integration into the Swiss regulatory order by the Swiss competent authority; (c) in Article 2(6) and Article 33(2)(a)(i), the reference to Regulation (EU) 2016/679 shall be understood, regarding Switzerland, as a reference to relevant national legislation; (d) Article 5, last sentence, Article 38(8), Article 41(2), second sentence, Articles 41(3), 41(7) and 43(4) shall not apply; & /en 24 (e) Article 37(4) is replaced by the following: "If the competent authority becomes aware of an unpatched vulnerability, without evidence of yet being actively exploited, it shall without undue delay coordinate with the coordinating CSIRT for the purposes of coordinated vulnerability disclosure as laid down in Article 1a(1)(b) of this Regulation."; (f) Article 40(3) shall be replaced by the following: "Where the cyber-attack qualifies or is expected to qualify as a large-scale cybersecurity incident and affects Switzerland, the ad hoc cross-border crisis coordination group shall immediately inform the national cyber crisis management authorities in Switzerland and in the Member States of the Union affected by the incident, as well as the Commission and the European cyber crisis liaison organization network ("EU CyCLONe"). In such a situation, the ad hoc cross-border crisis coordination group shall support the EU CyCLONe concerning sectoral specificities."; (g) Article 42(3) is replaced by the following: "The CSIRTs shall disseminate the information received from ENISA to the entities concerned without delay.". & /en 25 16. 32019 L 0944: Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (OJ EU L 158, 14.6.2019, p. 125, ELI: http://data.europa.eu/eli/dir/2019/944/oj), as amended by: – 32022 R 0869: Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation (EU) No 347/2013 (OJ L 152, 3.6.2022, p. 45, ELI: http://data.europa.eu/eli/reg/2022/869/oj) – 32024 L 1711: Directive (EU) 2024/1711 of the European Parliament and of the Council of 13 June 2024 amending Directives (EU) 2018/2001 and (EU) 2019/944 as regards improving the Union's electricity market design (OJ EU L, 2024/1711, 26.6.2024, ELI: http://data.europa.eu/eli/dir/2024/1711/oj) The provisions of Directive (EU) 2019/944 shall, for the purposes of this Agreement, be read with the following adaptations: (a) the Commission shall have the competences pursuant to Article 44(1), Article 63 and Article 66(1) in cases relating to Switzerland; (b) Article 6a, Article 7(1) to (2) and (4) to (5), Article 8, Article 12(1), Article 15, Article 15a(1) to (8), Articles 16 and 23, Article 24(1) and (3), Articles 28and 28a, Article 29(1), Articles 32, 38 and 66a shall be implemented at the latest three years after the entry into force of this Agreement; & /en 26  (c) Article 35(1) and (2) shall be implemented regarding the unbundling of distribution system operators organized under Swiss public law at the latest three years after the entry into force of this Agreement; (d) the Swiss NRA shall exercise the tasks relating to connection and access to national networks, including transmission and distribution tariffs, pursuant to Article 59(1)(a) and (7)(a) at the latest five years after the entry into force of this Agreement; (e) the Joint Committee shall have the competence pursuant to Article 65. 17. 32023 R 1162: Commission Implementing Regulation (EU) 2023/1162 of 6 June 2023 on interoperability requirements and non-discriminatory and transparent procedures for access to metering and consumption data (OJ EU L 154, 15.6.2023, p. 10, ELI: http://data.europa.eu/eli/reg_impl/2023/1162/oj) 18. 32011 R 1227: Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ EU L 326, 8.12.2011, p. 1, ELI: http://data.europa.eu/eli/reg/2011/1227/oj), as amended by: – 32024 R 1106: Regulation (EU) 2024/1106 of the European Parliament and of the Council of 11 April 2024 amending Regulations (EU) No 1227/2011 and (EU) 2019/942 as regards improving the Union's protection against market manipulation on the wholesale energy market (OJ EU L, 2024/1106, 17.4.2024, ELI: http://data.europa.eu/eli/reg/2024/1106/oj) & /en 27 The provisions of Regulation (EU) No 1227/2011 shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 1(2), the following is added: "For electricity derivatives that are not covered by Article 2(4) and are admitted to trading on a trading venue or a distributed ledger technology trading facility which has its registered office in Switzerland, Switzerland shall continue applying rules prohibiting market manipulation and insider trading which ensure a comparable standard of protection as in the Union."; (b) in Article 1, a new paragraph is added: "6. In Switzerland, this Regulation only applies to wholesale trading with electricity but not to the gas sector"; (c) in Article 9, a new paragraph is inserted: "1a. Market participants that are registered with both the Swiss NRA and a NRA of a Member State of the Union at the moment of the entry into force of this Agreement, shall bring their registration obligations in line with this Article."; (d) in Article 13, a new paragraph is inserted: "8a. With regard to Switzerland, the Agency shall conduct cross-border investigations pursuant to Article 13(5) to (8) in close and active cooperation with the Swiss NRA. & /en 28  Within the context of such cross-border investigations, the competent Swiss authorities, in particular the Swiss NRA, shall carry out in close cooperation with the Agency investigative measures pursuant to Article 13a, Article 13b(2) and Article 13c on Swiss territory. The Agency may invite the Swiss NRA to take concrete investigative measures and the competent Swiss authorities shall carry out those measures. The Agency shall participate in the carrying out of the measures at its request. The Swiss NRA shall collect the information necessary for the Agency to conduct its investigation effectively and share this information with the Agency without undue delay following the finalization of the respective investigative measure. When the Agency intends to communicate with persons on Swiss territory, including for the purpose of requests for information under Article 13b(1), the relevant information shall be passed on to those persons and to the Agency respectively by the Swiss NRA. The investigation report referred to in Article 13(11) shall be drawn up by the Agency. The measures referred to in Article 13(11) shall be taken by the Swiss NRA."; (e) for measures taken by the competent Swiss authorities pursuant to Article 13(8a), the term "Agency" in Article 13g(1) and (4) shall be read as "competent Swiss authority"; & /en 29  (f) a new Article is inserted after Article 13j: "Article 13k Measures taken by the competent Swiss authorities pursuant to Articles 13(8a) and 13g shall be subject to the judicial control of Swiss courts.". 19. 32014 R 1348: Commission Implementing Regulation (EU) No 1348/2014 of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 of the European Parliament and of the Council on wholesale energy market integrity and transparency (OJ EU L 363, 18.12.2014, p. 121, ELI: http://data.europa.eu/eli/reg_impl/2014/1348/oj) 20. 32012 D 1117(01): Commission Decision of 15 November 2012 setting up the Electricity Coordination Group (OJ EU C 353, 17.11.2012, p. 2) & /en 30  Appendix PRIVILEGES AND IMMUNITIES ARTICLE 1 (corresponding to Article 1 of Protocol (No 7)) The premises and buildings of the Agency shall be inviolable. They shall be exempt from search, requisition, confiscation or expropriation. The property and assets of the Agency shall not be the subject of any administrative or legal measure of constraint without the authorisation of the Court of Justice of the European Union. ARTICLE 2 (corresponding to Article 2 of Protocol (No 7)) The archives of the Agency shall be inviolable. ARTICLE 3 (corresponding to Articles 3 and 4 of Protocol (No 7)) 1. The Agency, its assets, revenues and other property shall be exempt from all direct taxes. & /en 31 2. Goods and services exported to the Agency for its official use from Switzerland or provided to the Agency in Switzerland shall not be subject to any indirect duties and taxes. 3. Exemption from VAT shall be granted if the actual purchase price of the goods and services mentioned in the invoice or corresponding document totals at least one hundred Swiss francs (inclusive of tax). The Agency shall be exempt from all customs duties, prohibitions and restrictions on imports and exports in respect of articles intended for its official use; articles so imported shall not be disposed of, whether or not in return for payment, in Switzerland, except under conditions approved by the government of Switzerland. 4. The exemption from VAT, excise duty and any other indirect taxes shall be granted by way of remit on presentation to the goods or services supplier of the Swiss forms provided for the purpose. 5. No exemption shall be granted in respect of taxes and dues, which amount merely to charges for public utility services. ARTICLE 4 (corresponding to Article 5 of Protocol (No 7)) For its official communications and the transmission of all its documents, the Agency shall enjoy in Switzerland the treatment accorded by that State to diplomatic missions. Official correspondence and other official communications of the Agency shall not be subject to censorship. & /en 32  ARTICLE 5 (corresponding to Article 6 of Protocol (No 7)) The laissez-passer of the Union issued to members and servants of the Agency shall be recognised as valid travel documents within the territory of Switzerland. Those laissez-passer shall be issued to officials and other servants under conditions laid down in the Staff Regulations of Officials and the Conditions of Employment of other servants of the Union (Regulation No 31 (EEC), 11 (EAEC), laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community (OJ 45, 14.6.1962, p. 1385), including any subsequent amendments). ARTICLE 6 (corresponding to Article 10 of Protocol (No 7)) Representatives of Member States of the Union taking part in the work of the Agency, their advisers and technical experts shall, in the performance of their duties and during their travel to and from the place of meeting in Switzerland, enjoy the customary privileges, immunities and facilities. & /en 33  ARTICLE 7 (corresponding to Article 11 of Protocol (No 7)) In the territory of Switzerland and whatever their nationality, officials and other servants of the Agency shall: (a) subject to the provisions of the Treaties relating, on the one hand, to the rules on the liability of officials and other servants towards the Union and, on the other hand, to the jurisdiction of the Court of Justice of the European Union in disputes between the Union and its officials and other servants, be immune from legal proceedings in respect of acts performed by them in their official capacity, including their words spoken or written. They shall continue to enjoy this immunity after they have ceased to hold office; (b) together with their spouses and dependent members of their families, not be subject to immigration restrictions or to formalities for the registration of aliens; (c) in respect of currency or exchange regulations, be accorded the same facilities as are customarily accorded to officials of international organisations; (d) enjoy the right to import free of duty their furniture and effects at the time of first taking up their post in Switzerland, and the right to re-export free of duty their furniture and effects, on termination of their duties in that country, subject in either case to the conditions considered to be necessary by the government of Switzerland; & /en 34 (e) have the right to import free of duty a motor car for their personal use, acquired either in the country of their last residence or in the country of which they are nationals on the terms ruling in the home market in that country, and to re-export it free of duty, subject in either case to the conditions considered to be necessary by the government of Switzerland. ARTICLE 8 (corresponding to Article 12 of Protocol (No 7)) Officials and other servants of the Agency shall be liable to a tax for the benefit of the Union on salaries, wages and emoluments paid to them by the Agency, in accordance with the conditions and procedure laid down by Union law. They shall be exempt from Swiss federal, cantonal and communal taxes on salaries, wages and emoluments paid by the Agency. & /en 35  ARTICLE 9 (corresponding to Article 13 of Protocol (No 7)) In the application of income tax, wealth tax and death duties and in the application of conventions on the avoidance of double taxation concluded between Switzerland and Member States of the Union, officials and other servants of the Agency who, solely by reason of the performance of their duties in the service of the Agency, establish their residence in the territory of Switzerland for tax purposes at the time of entering the service of the Agency, shall be considered, both in Switzerland and in the country of domicile for tax purposes, as having maintained their domicile in the latter country provided that it is a Member State of the Union. This provision shall also apply to a spouse, to the extent that the latter is not separately engaged in a gainful occupation, and to children dependent on and in the care of the persons referred to in this Article. Movable property belonging to persons referred to in the first paragraph and situated in Switzerland shall be exempt from death duties in Switzerland; such property shall, for the assessment of such duty, be considered as being in the country of domicile for tax purposes, subject to the rights of third countries and to the possible application of provisions of international conventions on double taxation. Any domicile acquired solely by reason of the performance of duties in the service of other international organisations shall not be taken into consideration in applying the provisions of this Article. & /en 36  ARTICLE 10 (corresponding to Article 14 of Protocol (No 7)) Union law shall lay down the scheme of social security benefits for officials and other servants of the Union. Officials and other servants of the Agency shall therefore not be obliged to be members of the Swiss social security system provided they are already covered by the scheme of social security benefits for officials and other servants of the Union. Members of the family of staff members of the Agency forming part of their household shall be covered by the scheme of social security benefits for officials and other servants of the Union provided that they are not employed by another employer than the Agency and provided that they do not receive social security benefits from a Member State of the Union or from Switzerland. ARTICLE 11 (corresponding to Article 15 of Protocol (No 7)) Union law shall determine the categories of officials and other servants of the Agency to whom the provisions of Articles 7, 8, and 9 shall apply, in whole or in part. The names, grades and addresses of officials and other servants included in such categories shall be communicated periodically to Switzerland. & /en 37  ARTICLE 12 (corresponding to Article 17 of Protocol (No 7)) Privileges, immunities and facilities shall be accorded to officials and other servants of the Agency solely in the interests of the Agency. The Agency shall be required to waive the immunity accorded to an official or other servant wherever that Agency considers that the waiver of such immunity is not contrary to the interests of the Agency. ARTICLE 13 (corresponding to Article 18 of Protocol (No 7)) The Agency shall, for the purpose of applying this Appendix, cooperate with the responsible authorities of Switzerland or of the Member States of the Union concerned. ________________ & /en 38  ANNEX II TRANSITIONAL REGIME FOR EXISTING LONG TERM CAPACITY RESERVATIONS ON INTERCONNECTORS AT THE SWISS BORDERS SECTION A PRINCIPLES FOR FINANCIAL COMPENSATION ARTICLE 1 General principles and scope 1. This Annex establishes the principles for a transitional mechanism of financial compensation for the holders of contracts listed in Section B. 2. The financial compensation shall be calculated based on the economic value of the capacity reservations for contract holders, as calculated pursuant to Article 2. 3. The financial compensation shall be granted for the transitional period set out in Article 8(1) of this Agreement. & /en 1 4. Prior to the participation of Switzerland in single day-ahead coupling, contract holders who want to receive the financial compensation shall acquire the necessary cross-border capacity through an auction performed by the Joint Allocation Office (hereinafter referred to as "JAO"), in accordance with the applicable rules and procedures set out by the JAO. Contract holders shall not be entitled to compensation if they did not succeed in acquiring the necessary capacity through the auction process. 5. Once Switzerland has joined single day-ahead coupling, the contract holders who want to receive financial compensation shall demonstrate that their bid was accepted in the single day-ahead process in accordance with the applicable rules and procedures as defined in the Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24, ELI: http://data.europa.eu/eli/reg/2015/1222/oj). ARTICLE 2 Calculation of the financial compensation 1. The financial compensation shall be calculated based on a compensation volume (in MW for a given hour) as defined in paragraphs 2 and 3, multiplied by a compensation price (in euro/MWh), as defined in paragraph 4. & /en 2 2. The compensation volume for each contract shall be: (a) during the period prior to Switzerland joining the single day-ahead coupling, the capacity (in MW for a given hour) allocated to the contract holder in the auction process; when claiming the compensation, the contract holders shall deliver proof that a capacity up to the volume of the contract at the border has been acquired and used and of the availability of the generation installation in the respective market time unit. (b) after Switzerland has joined the single day-ahead coupling, the volume (in MW for a given hour) of the successful bid in the single day-ahead coupling process in the respective bidding zone, up to the maximum volume of the contracts; when claiming the financial compensation, the contract holders shall deliver proof of the volume of the successful bid and the availability of the generation installation in the respective market time unit. 3. In any given year, the compensation volume pursuant to paragraph 2 shall be reduced to the following percentages: – 74,3 % for the direction from France to Switzerland in winter (1 October to 30 April) and 68,5 % in summer (1 May to 30 September); – 93,9 % for the direction from Switzerland to France in winter (1 October to 30 April) and 100 % in summer (1 May to 30 September). 4. The compensation price shall be calculated ex post as the positive price difference between the day-ahead market clearing prices of Switzerland and France, considering the direction of the historical capacity reservation, resulting from the market result in the day-ahead timeframe, calculated for each market time unit separately. In the event that the price difference is negative, no compensation shall be paid. & /en 3 5. The amount of the compensation calculated pursuant to paragraphs 1 to 4 shall be further reduced by 20 % to account for the contribution of contract holders to the maintenance and capital costs of the grid. 6. In the event that the total compensation payments to contract holders as calculated pursuant to paragraphs 1 to 5 exceed the congestion income from or assigned to the French-Swiss border, the compensation payments shall be reduced proportionally for all contract holders to ensure that the total compensation payments do not exceed the available congestion income. 7. The total financial compensation for each contract holder calculated pursuant to this Article shall be paid to the contract holders ex post on a monthly basis. ARTICLE 3 Financing of the compensation The financial compensation pursuant to Article 2 shall be financed by the congestion income generated by the allocation of capacity on the French-Swiss border, either as received from an auction of capacity at that border performed by the JAO or assigned to the border by application of the Congestion Income Distribution methodology. & /en 4  ARTICLE 4 Implementation, monitoring, and dispute resolution 1. The NRAs of France and Switzerland shall, where necessary, agree on procedures to implement the rules in this Annex within three months of the date of entry into force of this Agreement. They shall notify a draft of the procedures to ACER, the Commission and the Joint Committee two months after the date of entry into force of this Agreement. 2. The NRAs of France and Switzerland shall be responsible for verifying the compliance of TSOs and contract holders with the procedures developed pursuant to paragraph 1, including that the compensation granted to contract holders is limited to the contracts listed in Section B to this Annex. They shall send a yearly report on the application of the transitional mechanism to ACER and the Joint Committee by 1 March of the following year. 3. In the event that the NRAs fail to reach a consensus on the procedures pursuant to paragraph 1 within three months of the date of entry into force of this Agreement, Switzerland may refer the issue to the Joint Committee which shall decide on the implementation procedures within 6 months of the date of that referral. 4. Notwithstanding paragraphs 1 to 3, the contract holders shall have the right to receive the financial compensation from the date of entry into force of this Agreement until the end of the transitional period. & /en 5  SECTION B LONG TERM CAPACITY RESERVATION CONTRACTS WITH FINANCIAL COMPENSATION Direction Contract Name Technology Maximal End Date FR => CH EOS CNP Cattenom 3 / 4 Nuclear End of generation activity of the units FR => CH NOK 94 / EDF 95 Nuclear 30.9.2036 FR => CH EDL Cattenom 3 / 4 Nuclear End of generation activity of the units FR => CH EDL 2000 Nuclear 31.12.2039 FR => CH Participation Bugey 2 Nuclear End of generation activity of the unit FR => CH Participation Bugey 3 Nuclear End of generation activity of the unit FR => CH EOS Cleuson Dixence Hydro 30.4.2030 CH => FR EOS Cleuson Dixence Hydro 30.4.2030 FR => CH Emosson Pompage Hydro End of generation activity of the unit CH => FR Emosson Turbine Hydro End of generation activity of the unit & /en 6  SECTION C HYDRO POWER PLANTS PRESERVING CAPACITY RESERVATIONS NOT EXCEEDING 65 MW Direction Name of power plant Maximal Capacity Maximal End Date Reservation [MW] FR => CH Kembs 35 End of concession (31.12.2035) FR => CH FM Chatelot 15 End of concession (31.12.2028) CH => FR FM Chatelot 30 End of concession (31.12.2028) AT => CH GKW Inn 13,3 End of concession (after 2050) CH => IT Kraftwerke Hinterrhein 65 End of concession (31.12.2042) FR => CH Bagnes Martigny 2 End of concession (Champsec) (31.12.2041) CH => FR Forces Motrices de 41 End of concession Mauvoisin (31.12.2041) ________________ & /en 7  ANNEX III STATE AID EXEMPTIONS AND CLARIFICATIONS SECTION A MEASURES COMPATIBLE WITH THE PROPER FUNCTIONING OF THE INTERNAL MARKET, AS REFERRED TO IN ARTICLE 13(2), POINT (c) 1. The following existing Swiss measures shall be compatible with the proper functioning of the internal market and shall not be subject to Article 14(3), point (b): (a) investment grants for electricity generation from renewable energy sources according to Articles 25 to 29 of the Energy Act1 (hereinafter referred to as "EnG"), including temporary exemption from water royalties according to Article 50a of the Act on Hydropower)2; (b) contracts for difference for electricity generation from renewable energy sources according to Articles 29a to 29e EnG; (c) operating cost contribution for biomass according to Article 33a EnG; (d) geothermal guarantees according to Article 33 EnG; 1 Energiegesetz, 30 September 2016 (EnG, SR 730.0), version applicable on 1 January 2025 2 Bundesgesetz über die Nutzbarmachung der Wasserkräfte, 22 December 1916 (WRG, SR 721 80), version applicable on 1 January 2023 & /en 1  (e) compensation for residual flow measures according to Article 80(2) of the Water Protection Act1; and (f) compensation for ecological restoration measures related to hydropower (hydropeaking, sediment transport and fishing migration) according to Article 34 EnG. 2. The Swiss authorities commit that, as from the entry into force of this Agreement, installations which are not provided with a derogation pursuant to Article 5(2), point (b) or Article 5(4) of Regulation (EU) 2019/9432 can only be granted a new aid for electricity production under the measures mentioned in point 1 if they are: – required to sell their electricity production on the market; – not incentivised to offer their output below their marginal costs and not receiving operating aid for production in any periods in which the market value of that production is negative. 3. The provisions of point 1, (a) and (b), shall cease to apply 10 years after the entry into force of this Agreement, and those of point 1, (c) to (f), shall cease to apply six years after the entry into force of this Agreement. After expiry of those time limits, the Swiss Surveillance Authority shall include those measures in its constant review under Article 15(4). 1 Bundesgesetz über den Schutz der Gewässer, 24 January 1991 (GschG, SR 814 20), version applicable on 1 February 2023 2 Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity, OJ L 158, 14.6.2019, p. 54, as applicable according to Annex. & /en 2  SECTION B CATEGORIES OF AID THAT MAY BE CONSIDERED TO BE COMPATIBLE WITH THE PROPER FUNCTIONING OF THE INTERNAL MARKET, AS REFERRED TO IN ARTICLE 13(3), POINT (e) The following categories of aid may be considered to be compatible with the proper functioning of the internal market: […] & /en 3  SECTION C BLOCK EXEMPTIONS, AS REFERRED TO IN ARTICLE 13(4) Aid shall be presumed compatible with the proper functioning of the internal market and shall be exempted from the notification requirements under Article 14, if it is granted in accordance with the substantive conditions set out in the following provisions: (a) Chapters I and III of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ EU L 187, 26.6.2014, p. 1, ELI: http://data.europa.eu/eli/reg/2014/651/oj), as last amended by Commission Regulation (EU) 2023/1315 of 23 June 2023 amending Regulation (EU) No 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty and Regulation (EU) 2022/2473 declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ EU L 167, 30.6.2023, p. 1, ELI: http://data.europa.eu/eli/reg/2023/1315/oj); (b) Articles 1 to 6 of Commission Decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OJ L 7, 11.1.2012, p. 3, ELI: http://data.europa.eu/eli/reg/2023/2832/oj). & /en 4  SECTION D DE MINIMIS AID, AS REFERRED TO IN ARTICLE 13(6) "De minimis aid" shall have the meaning that it has in Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ EU L, 2023/2831, 15.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2831/oj). For aid granted to undertakings entrusted with the operation of services of general economic interest, "de minimis aid" shall have the meaning that it has in Commission Regulation (EU) 2023/2832 of 12 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest (OJ L, 2023/2832, 15.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2382/oj). ________________ & /en 5  ANNEX IV STATE AID GENERAL AND SECTORAL ACTS APPLICABLE IN THE EUROPEAN UNION AS REFERRED TO IN ARTICLE 14(2) SECTION A GENERAL AND SECTORAL ACTS (1) For the purposes of Part III and pursuant to Article 14(2) of this Agreement, the following acts shall be applied by the Union: (a) Council Regulation (EU) 2015/1589 of 13 July 2015 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (OJ EU L 248, 24.9.2015, p. 9, ELI: http://data.europa.eu/eli/reg/2015/1589/oj); (b) Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EU) 2015/1589 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (OJ EU L 140, 30.4.2004, p. 1, ELI: http://data.europa.eu/eli/reg/2004/794/oj), as last amended by Commission Regulation (EU) 2016/2105 of 1 December 2016 amending Annex I to Regulation (EC) No 794/2004 as regards the form to be used for the notification of State aid to the fishery and aquaculture sector (OJ EU L 327, 2.12.2016, p. 19, ELI: http://data.europa.eu/eli/reg/2016/2105/oj); & /en 1 (c) Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ EU L 187, 26.6.2014, p. 1, ELI: http://data.europa.eu/eli/reg/2014/651/oj), as last amended by Commission Regulation (EU) 2023/1315 of 23 June 2023 amending Regulation (EU) No 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty and Regulation (EU) 2022/2473 declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ EU L 167, 30.6.2023, p. 1, ELI: http://data.europa.eu/eli/reg/2023/1315/oj); (d) Commission Decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OJ EU L 7, 11.1.2012, p. 3, ELI: http://data.europa.eu/eli/dec/2012/21(1)/oj); (e) Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ EU L, 2023/2831, 15.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2831/oj); (f) Commission Regulation (EU) 2023/2832 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest (OJ EU L, 2023/2832, 15.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2832/oj). & /en 2 (2) For the purposes of Part III and pursuant to Article 14(3) of this Agreement, Switzerland shall establish and maintain a State aid surveillance system that ensures at all times a level of surveillance and enforcement equivalent to that applied by the Union, as set out in Article 14(2) and point (1) of this Section. SECTION B GUIDELINES, COMMUNICATIONS AND DECISIONAL PRACTICE OF THE COMMISSION (1) For the purposes of Part III and pursuant to Article 14(3) of this Agreement, the Swiss surveillance authority and the competent judicial authorities in Switzerland shall take due account of, and follow to the extent possible, the relevant guidelines and communications binding on the Commission, as well as its decisional practice, in order to ensure a level of surveillance and enforcement equivalent to that of the Union. (2) The Commission shall notify to the Joint Committee, and publish, the guidelines and communications it considers relevant under this Agreement. ________________ & /en 3  ANNEX V ENVIRONMENT The relevant legal acts of the Union on environmental protection referred to in Article 20 and Article 27(3) of this Agreement are the following: 1. 32011 L 0092: Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ EU L 26, 28.1.2012, p. 1, ELI: http://data.europa.eu/eli/dir/2011/92/oj), as amended by: – 32014 L 0052: Directive 2014/52/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the environment (OJ EU L 124, 25.4.2014, p. 1, ELI: http://data.europa.eu/eli/dir/2014/52/oj). 2. 32001 L 0042: Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30, ELI: http://data.europa.eu/eli/dir/2001/42/oj). 3. 32016 L 0802: Directive (EU) 2016/802 of the European Parliament and of the Council of 11 May 2016 relating to a reduction in the sulphur content of certain liquid fuels (OJ L 132, 21.5.2016, p. 58, ELI: http://data.europa.eu/eli/dir/2016/802/oj). & /en 1 4. 32010 L 0075: Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (OJ EU L 334, 17.12.2010, p. 17, ELI: http://data.europa.eu/eli/dir/2010/75/oj). 5. 32009 L 0147: Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ EU L 20, 26.1.2010, p. 7, ELI: http://data.europa.eu/eli/dir/2009/147/oj), as amended by: – 32013 L 0017: Council Directive 2013/17/EU of 13 May 2013 adapting certain directives in the field of environment, by reason of the accession of the Republic of Croatia (OJ EU L 158, 10.6.2013, p. 193, ELI: http://data.europa.eu/eli/dir/2013/17/oj), – 32019 R 1010: Regulation (EU) 2019/1010 of the European Parliament and of the Council of 5 June 2019 on the alignment of reporting obligations in the field of legislation related to the environment, and amending Regulations (EC) No 166/2006 and (EU) No 995/2010 of the European Parliament and of the Council, Directives 2002/49/EC, 2004/35/EC, 2007/2/EC, 2009/147/EC and 2010/63/EU of the European Parliament and of the Council, Council Regulations (EC) No 338/97 and (EC) No 2173/2005, and Council Directive 86/278/EEC (OJ EU L 170, 25.6.2019, p. 115, ELI: http://data.europa.eu/eli/reg/2019/1010/oj). & /en 2 6. 32004 L 0035: Directive 2004/35/EC of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage (OJ EU L 143, 30.4.2004, p. 56, ELI: http://data.europa.eu/eli/dir/2004/35/oj), as amended by: – 32006 L 0021: Directive 2006/21/EC of the European Parliament and of the Council of 15 March 2006 on the management of waste from extractive industries and amending Directive 2004/35/EC (OJ EU L 102, 11.4.2006, p. 15, ELI: http://data.europa.eu/eli/dir/2006/21/oj), – 32009 L 0031: Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ EU L 140, 5.6.2009, p. 114, ELI: http://data.europa.eu/eli/dir/2009/31/oj), – 32013 L 0030: Directive 2013/30/EU of the European Parliament and of the Council of 12 June 2013 on safety of offshore oil and gas operations and amending Directive 2004/35/EC (OJ EU L 178, 28.6.2013, p. 66, ELI: http://data.europa.eu/eli/dir/2013/30/oj), & /en 3 – 32019 R 1010: Regulation (EU) 2019/1010 of the European Parliament and of the Council of 5 June 2019 on the alignment of reporting obligations in the field of legislation related to the environment, and amending Regulations (EC) No 166/2006 and (EU) No 995/2010 of the European Parliament and of the Council, Directives 2002/49/EC, 2004/35/EC, 2007/2/EC, 2009/147/EC and 2010/63/EU of the European Parliament and of the Council, Council Regulations (EC) No 338/97 and (EC) No 2173/2005, and Council Directive 86/278/EEC (OJ EU L 170, 25.6.2019, p. 115, ELI: http://data.europa.eu/eli/reg/2019/1010/oj). ________________ & /en 4  ANNEX VI RENEWABLE ENERGIES Unless otherwise provided for in technical adaptations, – rights and obligations provided for in the legal acts set out in this Annex for Member States of the Union shall be understood to be provided for for Switzerland; – references to natural or legal persons residing or established in the Member States of the Union in those acts shall be read as including references to natural or legal persons residing or established in Switzerland. This shall be applied in full respect of the institutional provisions contained in Part V of this Agreement. & /en 1 ACTS REFERRED TO 1. 32018 L 2001: Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ EU L 328, 21.12.2018, p. 82, ELI: http://data.europa.eu/eli/dir/2018/2001/oj), as amended by: – 32023 L 2413: Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 (OJ EU L, 2023/2413, 31.10.2023, ELI: http://data.europa.eu/eli/dir/2023/2413/oj), – 32022 R 0759: Commission Delegated Regulation (EU) 2022/759 of 14 December 2021 amending Annex VII to Directive (EU) 2018/2001 of the European Parliament and of the Council as regards a methodology for calculating the amount of renewable energy used for cooling and district cooling (OJ EU L 139, 18.5.2022, p. 1, ELI: http://data.europa.eu/eli/reg_del/2022/759/oj), – 32024 L1711: Directive (EU) 2024/1711 of the European Parliament and of the Council of 13 June 2024 amending Directives (EU) 2018/2001 and (EU) 2019/944 as regards improving the Union's electricity market design (JO L, 2024/1711, 26.6.2024, ELI: http://data.europa.eu/eli/dir/2024/1711/oj). & /en 2 The provisions of Directive (EU) 2018/2001 shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 2, the following is added: "The definition of a term shall apply only if that term is used in a provision that has been incorporated in Annex VI to the Agreement between the European Union and Switzerland on electricity."; (b) Article 3 is adapted as follows: (i) paragraph 1 shall not apply; (ii) paragraph 2 is replaced by the following: "Switzerland shall set an indicative target of a 48,4 % share of renewable energy in its gross final consumption of energy in 2030. The Joint Committee shall adapt that target for the periods after 2030, taking into account the applicable target in the Union. Switzerland shall publish information and inform the Joint Committee established by the Agreement between the European Union and Switzerland on electricity on the progress made towards that target and on the implementation of Articles 19 and 26 to 31a of Directive (EU) 2018/2001 as set out in Annex VI to that Agreement at least every 2 years."; (iii) in paragraph 3c, point (a) is replaced by the following: "(a) the use of saw logs, veneer logs, industrial grade roundwood, stumps and roots to produce electricity." & /en 3  (iv) paragraph 3c, point (b), and paragraphs 4, 5 and 6 shall not apply; (v) paragraph 4a is adapted as follows: "4a. Switzerland shall establish a framework, which may include support schemes and measures facilitating the uptake of renewables power purchase agreements, enabling the deployment of renewable electricity to a level that is consistent with the national target referred to in paragraph 2. In particular, that framework shall tackle remaining barriers to a high level of renewable electricity supply, and to the development of the necessary transmission, distribution and storage infrastructure, including co-located energy storage. When designing that framework, Switzerland shall take into account the additional renewable electricity required to meet demand in the transport, industry, building and heating and cooling sectors and for the production of renewable fuels of non-biological origin"; (c) Article 5 shall not apply; (d) Articles 8 to 14 shall not apply; (e) Article 15 and Articles 15b to 16f shall not apply; instead, Switzerland shall maintain and establish comparable rules in order to reach the goal to increase its share of electricity from renewable energies. Those rules include: (i) assignment of areas where plants for the production of electricity from renewable energies can be built, (ii) public participation, & /en 4  (iii) swift and efficient permit-granting procedures, (iv) appropriate status of public interest for renewables; (f) Article 15a shall not apply; (g) Articles 17 shall not apply; (h) Article 18 (1), (2) and (4) to (6) shall not apply; (i) Article 18(3) is replaced by the following: "Switzerland shall set up a framework to ensure a sufficient number of trained and qualified installers of (i) all forms of renewable heating and cooling systems in buildings, industry and agriculture, (ii) solar photovoltaic systems, including energy storage, and (iii) recharging points enabling demand response to service the growth of renewable energy required to achieve the target set out in accordance with Article 3(2)."; (j) Switzerland shall not apply Article 19 to energy other than electricity produced from saw logs, veneer logs, industrial grade roundwood, stumps and roots; (k) Article 20 and Article 20a(3) and (4) shall not apply; (l) Article 20a(1), (2) and (5) shall apply three years following the entry into force of this Agreement; & /en 5 (m) Articles 21 and 22 shall not apply; instead, Switzerland shall maintain and establish comparable rules on renewable self-consumers and renewable energy communities in the field of electricity; (n) Articles 22a to 25 shall not apply; (o) in Article 26, the following is added: "Switzerland may set its share of biofuels, bioliquids and biomass fuels produced from food and feed crops at 0 %."; (p) Article 27 (1) to (5) shall not apply; (q) Article 28(6) and (7) shall not apply; (r) Article 29 (7a) and (7b) shall not apply. (s) Article 29a(2) shall not apply; & /en 6 (t) Article 30 is amended as follows: (i) in paragraph 1, first subparagraph, the introductory phrase is replaced by the following: "Where renewable fuels are to be counted towards the targets referred to in Article 3(2), Member States shall require economic operators to show, by means of mandatory independent and transparent audits, in accordance with the implementing act adopted pursuant to paragraph 8 of this Article, that the sustainability and greenhouse gas emissions saving criteria laid down in Article 29(2) to (7) and (10) and Article 29a(1) for renewable fuels have been fulfilled. To that end, they shall require economic operators to use a mass balance system which:"; (ii) paragraph 2 is replaced by the following: "2. Where a consignment is processed, information on the sustainability and greenhouse gas emissions saving characteristics of the consignment shall be adjusted and assigned to the output in accordance with the following rules: (a) when the processing of a consignment of raw material yields only one output that is intended for the production of biofuels, bioliquids or biomass fuels, or renewable fuels of non-biological origin, the size of the consignment and the related quantities of sustainability and greenhouse gas emissions saving characteristics shall be adjusted applying a conversion factor representing the ratio between the mass of the output that is intended for such production and the mass of the raw material entering the process; & /en 7  (b) when the processing of a consignment of raw material yields more than one output that is intended for the production of biofuels, bioliquids or biomass fuels, or renewable fuels of non-biological origin, for each output a separate conversion factor shall be applied and a separate mass balance shall be used."; (iii) in paragraph 3, first subparagraph, the first sentence is replaced by the following: "1. Member States shall take measures to ensure that economic operators submit reliable information regarding the compliance with the sustainability and greenhouse gas emissions saving criteria laid down in Article 29(2) to (7) and (10) and Article 29a(1), and that economic operators make available to the relevant Member State, upon request, the data used to develop that information."; (iv) in paragraph 3, second subparagraph, the first sentence is replaced by the following: "The obligations laid down in this paragraph shall apply regardless of whether renewable fuels are produced within or are imported into the Union."; (v) in paragraph 10, the introductory phrase is replaced by the following: "10. At the request of Switzerland, which may be based on the request of an economic operator, the Commission shall, on the basis of all available evidence, examine whether the sustainability and greenhouse gas emissions saving criteria laid down in Article 29(2) to (7) and (10) and Article 29a(1) in relation to a source of renewable fuels have been met."; & /en 8  (vi) in paragraph 10, points (a) and (b) are replaced by the following: "(a) take into account the renewable fuels from that source for the purposes referred to in Article 29(1), first subparagraph, points (a), (b) and (c); or (b) by way of derogation from paragraph 9, require suppliers of the source of renewable fuels to provide further evidence of compliance with those sustainability and greenhouse gas emissions saving criteria and those greenhouse gas emissions savings thresholds."; (u) Article 31a(1) is replaced by the following: "By 21 November 2024, the Commission shall ensure that a Union database is set up to enable the tracing of liquid and gaseous renewable fuels (the 'Union database')."; (v) Articles 32 to 39 shall not apply; (w) Annexes I, IA, IV and VIII shall not apply; (x) Part A, points (a) and (p), of Annex IX shall not apply; (y) Annexes X and XI shall not apply. & /en 9 2. 32019 R807: Commission Delegated Regulation (EU) 2019/807 of 13 March 2019 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council as regards the determination of high indirect land-use change-risk feedstock for which a significant expansion of the production area into land with high carbon stock is observed and the certification of low indirect land-use change-risk biofuels, bioliquids and biomass fuels (OJ EU L 133, 21.5.2019, p. 1, ELI: http://data.europa.eu/eli/reg_del/2019/807/oj) 3. 32023 R 1184: Commission Delegated Regulation (EU) 2023/1184 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a Union methodology setting out detailed rules for the production of renewable liquid and gaseous transport fuels of non-biological origin (OJ EU L 157, 20.6.2023, p.11, ELI: http://data.europa.eu/eli/reg_del/2023/1184/oj) 4. 32024 R 1408: Commission Delegated Regulation (EU) 2024/1408 amending Commission Delegated Regulation (EU) 2023/1184 as regards aligning a technical term with Directive (EU) 2018/2001 of the European Parliament and of the Council (OJ EU L, 2024/1408, 21.5.2024, ELI: http://data.europa.eu/eli/reg_del/2024/1408/oj) 5. 32023 R 1640: Commission Delegated Regulation (EU) 2023/1640 of 5 June 2023 on the methodology to determine the share of biofuel and biogas for transport, produced from biomass being processed with fossil fuels in a common process (OJ EU L 205, 18.8.2023, p. 1, ELI: http://data.europa.eu/eli/reg_del/2023/1640/oj) & /en 10 6. 32023 R 1185: Commission Delegated Regulation (EU) 2023/1185 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a minimum threshold for greenhouse gas emissions savings of recycled carbon fuels and by specifying a methodology for assessing greenhouse gas emissions savings from renewable liquid and gaseous transport fuels of non-biological origin and from recycled carbon fuels (OJ L 157, 20.6.2023, p. 20, http://data.europa.eu/eli/reg_del/2023/1185/oj) The provisions of Delegated Regulation (EU) 2023/1185 shall, for the purposes of this Agreement, be read with the following adaptations: (a) the provisions of Delegated Regulation (EU) 2023/1185 on the calculation of the targets for fuels and electricity from renewable energies supplied to the transport sector and of the targets for advanced biofuels and biogas referring to Article 25(2) of Directive (EU) 2018/2001 shall not apply; (b) the provisions of Delegated Regulation (EU) 2023/1185 related to recycled carbon fuels shall not apply. 7. 32022 R 2448: Commission Implementing Regulation (EU) 2022/2448 of 13 December 2022 on establishing operational guidance on the evidence for demonstrating compliance with the sustainability criteria for forest biomass laid down in Article 29 of Directive (EU) 2018/2001 of the European Parliament and of the Council (OJ EU L 320, 14.12.2022, p. 4, ELI: http://data.europa.eu/eli/reg_impl/2022/2448/oj) & /en 11 8. 32022 D 599: Commission Implementing Decision (EU) 2022/599 of 8 April 2022 on the recognition of the Biomass Biofuels Sustainability voluntary scheme (2BSvs) for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 173, ELI: http://data.europa.eu/eli/dec_impl/2022/599/oj) 9. 32022 D 600: Commission Implementing Decision (EU) 2022/600 of 8 April 2022 on the recognition of the "Bonsucro EU" voluntary scheme for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 176, ELI: http://data.europa.eu/eli/dec_impl/2022/600/oj) 10. 32022 D 601: Commission Implementing Decision (EU) 2022/601 of 8 April 2022 on the recognition of the "Better Biomass" voluntary scheme for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 179, ELI: http://data.europa.eu/eli/dec_impl/2022/601/oj) 11. 32022 D 602: Commission Implementing Decision (EU) 2022/602 of 8 April 2022 on the recognition of the "International Sustainability & Carbon Certification – ISCC EU" voluntary scheme for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 182, ELI: http://data.europa.eu/eli/dec_impl/2022/602/oj) & /en 12 12. 32022 D 604: Commission Implementing Decision (EU) 2022/604 of 8 April 2022 on the recognition of the "Red Tractor Farm Assurance Crops and Sugar Beet Scheme" voluntary scheme for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 188, ELI: http://data.europa.eu/eli/dec_impl/2022/604/oj) 13. 32022 D 605: Commission Implementing Decision (EU) 2022/605 of 8 April 2022 on the recognition of the "REDcert-EU" voluntary scheme for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 191, ELI: http://data.europa.eu/eli/dec_impl/2022/605/oj) 14. 32022 D 606: Commission Implementing Decision (EU) 2022/606 of 8 April 2022 on the recognition of the "Round Table on Responsible Soy with EU RED Requirements (RTRS EU RED)" voluntary scheme for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 194, ELI: http://data.europa.eu/eli/dec_impl/2022/606/oj) 15. 32022 D 607: Commission Implementing Decision (EU) 2022/607 of 8 April 2022 on the recognition of the "Roundtable on Sustainable Biomaterials (RSB) EU RED" voluntary scheme for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 197, ELI: http://data.europa.eu/eli/dec_impl/2022/607/oj) & /en 13 16. 32022 D 608: Commission Implementing Decision (EU) 2022/608 of 8 April 2022 on the recognition of the "Scottish Quality Crops Farm Assurance Scheme (SQC)" for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 200, ELI: http://data.europa.eu/eli/dec_impl/2022/608/oj) 17. 32022 D 609: Commission Implementing Decision (EU) 2022/609 of 8 April 2022 on the recognition of the "SURE" voluntary scheme for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 203, ELI: http://data.europa.eu/eli/dec_impl/2022/609/oj) 18. 32022 D 610: Commission Implementing Decision (EU) 2022/610 of 8 April 2022 on the recognition of the "Trade Assurance Scheme for Combinable Crops (TASCC)" for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 206, ELI: http://data.europa.eu/eli/dec_impl/2022/610/oj) 19. 32022 D 611: Commission Implementing Decision (EU) 2022/611 of 8 April 2022 on the recognition of the "Universal Feed Assurance Scheme (UFAS)" for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 114, 12.4.2022, p. 209, ELI: http://data.europa.eu/eli/dec_impl/2022/611/oj) & /en 14 20. 32022 D 2461: Commission Implementing Decision (EU) 2022/2461 of 14 December 2022 recognising the "KZR IniG" scheme for demonstrating compliance with the requirements set out in Directive (EU) 2018/2001 of the European Parliament and of the Council as regards biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels and repealing Commission Implementing Decision (EU) 2022/603 (OJ EU L 321, 15.12.2022, p. 38, ELI: http://data.europa.eu/eli/dec_impl/2022/2461/oj) 21. 32022 D 1657: Commission Implementing Decision (EU) 2022/1657 of 26 September 2022 on the recognition of the Sustainable Biomass Program voluntary scheme for demonstrating compliance with the requirements of Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 249, 27.9.2022, p. 53, ELI: http://data.europa.eu/eli/dec_impl/2022/1657/oj) 22. 32022 D 1656: Commission Implementing Decision (EU) 2022/1656 of 26 September 2022 on recognition of the Austrian agricultural certification scheme (AACS) for demonstrating compliance with the requirements set in Directive (EU) 2018/2001 of the European Parliament and of the Council for biofuels, bioliquids, biomass fuels, renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels (OJ EU L 249, 27.9.2022, p. 50, ELI: http://data.europa.eu/eli/dec_impl/2022/1656/oj) 23. 32022 R 996: Commission Implementing Regulation (EU) 2022/996 of 14 June 2022 on rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change-risk criteria (OJ EU L 168, 27.6.2022, p. 1, ELI: http://data.europa.eu/eli/reg_impl/2022/996/oj) & /en 15 24. 32022 D 1655: Commission Implementing Decision (EU) 2022/1655 of 26 September 2022 recognising the report including information on the typical greenhouse gas emissions from the cultivation of soybean in Argentina under Article 31(3) and (4) of Directive (EU) 2018/2001 of the European Parliament and of the Council (OJ EU L 249, 27/09/2022, p. 47, ELI: http://data.europa.eu/eli/dec_impl/2022/1655/oj) 25. 32024 D 861: Commission Implementing Decision (EU) 2024/861 of 15 March 2024 on the recognition of the report including information on the typical greenhouse gas emissions from the cultivation of canola oilseed (rapeseed) in Canada under Article 31(3) and (4) of Directive (EU) 2018/2001 of the European Parliament and of the Council (OJ EU L, 2024/861, 19.3.2024, ELI: http://data.europa.eu/eli/dec_impl/2024/861/oj) 26. 32023 D 1760: Commission Implementing Decision (EU) 2023/1760 of 11 September 2023 on the recognition of the report including information on the typical greenhouse gas emissions from the cultivation of canola oilseed (rapeseed) in Australia under Article 31(3) and (4) of Directive (EU) 2018/2001 of the European Parliament and of the Council (OJ EU L 224, 12.9.2023, p. 105, ELI: http://data.europa.eu/eli/dec_impl/2023/1760/oj) ________________ & /en 16  ANNEX VII ANNEX ON THE APPLICATION OF ARTICLE 49 OF THIS AGREEMENT ARTICLE 1 List of the activities of the Union agencies, information systems and other activities to which Switzerland is to contribute financially Switzerland shall contribute financially to the following: (a) agencies: – Agency for the Cooperation of Energy Regulators, as established by Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (OJ L 158, 14.6.2019, p. 22, as applicable according to Annex I of the Agreement), taking into account the scope of this Agreement, for 85 % of the Union subsidy budget line of the year in question; & /en 1 (b) information systems: – the Union database, as established by Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82, as applicable according to Annex VI of the Agreement); (c) other activities: none. ARTICLE 2 Terms of payment 1. Payments due pursuant to Article 49 of this Agreement shall be made in accordance with this Article. 2. When issuing the call for funds of the financial year, the Commission shall communicate the following information to Switzerland: (a) the amount of the operational contribution; and (b) the amount of the participation fee. & /en 2 3. The Commission shall communicate to Switzerland, as soon as possible and at the latest on 16 April of each financial year, the following information in relation to Switzerland's participation: (a) the amounts in commitment appropriations of the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question for each Union agency, taking into account for each agency any adjusted operational contribution as defined in Article 1, and the amounts in commitment appropriations in relation to the Union voted budget of the year in question for the relevant budget of the information systems and other activities, covering the participation of Switzerland in accordance with Article 1; (b) the amount of the participation fee referred to in Article 49(7) of this Agreement; and (c) as regards agencies, in year N+1 the amounts in budgetary commitments made on commitment appropriations authorised in year N on the relevant Union budget subsidy line(s) in relation to the annual Union budget inscribed on the relevant Union budget subsidy line(s) of year N. 4. On the basis of its draft budget, the Commission shall provide an estimate of information under points (a) and (b) of paragraph 3 as soon as possible, and at the latest, by 1 September of the financial year. 5. The Commission shall issue to Switzerland, at the latest on 16 April and, if applicable to the relevant agency, information system or other activity, at the earliest on 22 October and at the latest on 31 October of each financial year, a call for funds that corresponds to the contribution of Switzerland under this Agreement for each of the agencies, information systems and other activities in which Switzerland participates. & /en 3 6. The call(s) for funds referred to in paragraph 5 shall be structured in instalments as follows: (a) the first instalment of each year, in relation to the call for funds to be issued by 16 April, shall correspond to an amount up to the equivalent of the estimate of the annual financial contribution of the agency, information system or other activity in question referred to in paragraph 4. Switzerland shall pay the amount indicated in this call for funds at the latest 60 days after the call for funds is issued; (b) where applicable, the second instalment of the year, in relation to the call for funds to be issued at the earliest on 22 October and at the latest on 31 October, shall correspond to the difference between the amount referred to in paragraph 4 and the amount referred to in paragraph 5 where the amount referred to in paragraph 5 is higher. Switzerland shall pay the amount indicated in the call for funds at the latest by 21 December. For each call for funds, Switzerland may make separate payments for each agency, information system or other activity. 7. For the first year of implementation of this Agreement, the Commission shall issue a single call for funds, within 90 days of the entry into force of this Agreement. Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after the call for funds is issued. 8. Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount as from the due date until the day on which that outstanding amount is paid in full. & /en 4 The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first day of the month in which the due date falls, or 0 %, whichever is higher, plus 3,5 percentage points. ARTICLE 3 Adjustment of Switzerland's financial contribution to Union agencies in the light of implementation The adjustment of Switzerland's financial contribution to Union agencies shall be made in year N+1 when the initial operational contribution shall be adjusted upwards or downwards by the difference between the initial operational contribution and an adjusted contribution calculated by applying the contribution key of year N to the amount of budgetary commitments made on commitment appropriations authorised in year N under the relevant Union subsidy budget line(s). Where applicable, the difference shall take into account for each agency the percentage-based adjusted operational contribution as defined in Article 1. ARTICLE 4 Transitional arrangements In the event that the date of entry into force of this Agreement is not on 1 January, this Article shall apply by way of derogation from Article 2. & /en 5 For the first year of implementation of the Agreement, in relation to the operational contribution due for the year in question applicable to the relevant agency, information system or other activity, as established in accordance with Article 49 of the Agreement and Articles 1 to 3 of this Annex, the operational contribution shall be reduced on a pro rata temporis basis by multiplying the amount of the annual operational contribution due to the ratio of the following: (a) the number of calendar days from the date of entry into force of the Agreement until the 31 December of the year in question, and (b) the total number of calendar days of the year in question. ________________ & /en 6  PROTOCOL PROTOCOL ON THE ARBITRAL TRIBUNAL CHAPTER I PRELIMINARY PROVISIONS ARTICLE I.1 Scope If one of the Contracting Parties (hereinafter referred to as "parties") submits a dispute for arbitration in accordance with Articles 32(2) or 33(2) of this Agreement, the rules set out in this Protocol shall apply. ARTICLE I.2 Registry and secretarial services The International Bureau of the Permanent Court of Arbitration at the Hague (hereinafter referred to as "International Bureau") shall fulfil the functions of registry and provide the necessary secretarial services. & /en 1  ARTICLE I.3 Notices and calculation of time limits 1. Notices, including communications or proposals, may be sent by any means of communication that certifies their transmission, or enables them to be certified. 2. Such notices may be sent electronically only if an address has been designated or authorised by a party specifically for this purpose. 3. Such notices served on the parties shall be sent, for Switzerland, to Switzerland's Europe Division of the Federal Department of Foreign Affairs and, for the Union, to the Commission's Legal Service. 4. Any time limit laid down in this Protocol shall run from the day after an event occurs or an action takes place. If the last day for delivery of a document falls on a non-working day of the institutions of the Union or of the government of Switzerland, the time period for the delivery of the document shall end on the first following working day. Non-working days that fall within the time period shall be counted. ARTICLE I.4 Notice of arbitration 1. The party taking the initiative to use arbitration (hereinafter referred to as "applicant") shall send to the other party (hereinafter referred to as "defendant") and to the International Bureau a notice of arbitration. & /en 2 2. Arbitration proceedings shall be deemed to commence on the day after that on which the notice of arbitration is received by the defendant. 3. The notice of arbitration shall include the following information: (a) the demand that the dispute be referred to arbitration; (b) the names and contact details of the parties; (c) the name and address of the applicant's agent(s); (d) the legal basis of the proceedings is Article 32(2) or Article 33(2) of this Agreement and: (i) in the cases referred to in Article 32(2) of this Agreement, the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 32(1) of this Agreement; and (ii) in the cases referred to in Article 33(2) of this Agreement, the decision of the arbitral tribunal, any implementation measures mentioned in Article 32(5) of this Agreement and the disputed compensatory measures; (e) the designation of any rule causing the dispute or related to it; (f) a brief description of the dispute; and (g) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. & /en 3 4. In the cases referred to in Article 32(3) of this Agreement, the notice of arbitration may also contain information concerning the need for a referral to the Court of Justice of the European Union. 5. Any claims on the sufficiency of the notice of arbitration shall not prevent the constitution of the arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. ARTICLE I.5 Response to the notice of arbitration 1. Within 60 days of receiving the notice of arbitration, the defendant shall send a response to the notice of arbitration to the applicant and the International Bureau, which shall include the following information: (a) the names and contact details of the parties; (b) the name and address of the defendant's agent(s); (c) a response to the information given in the notice of arbitration in accordance with points (d) to (f) of Article I.4(3); and (d) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. & /en 4 2. In the cases referred to in Article 32(3) of this Agreement, the response to the notice of arbitration may also contain a response to the information given in the notice of arbitration in accordance with Article I.4(4) of this Protocol and information concerning the need for a referral to the Court of Justice of the European Union. 3. The lack of, or an incomplete or late, response from the defendant to the notice of arbitration shall not prevent the constitution of an arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. 4. If the defendant requests that the arbitral tribunal consist of five arbitrators in its response to the notice of arbitration, the applicant shall designate an additional arbitrator within 30 days of receipt of the response to the notice of arbitration. ARTICLE I.6 Representation and assistance 1. The parties shall be represented before the arbitral tribunal by one or more agents. The agent may be assisted by advisers or lawyers. 2. Any change to the agents or their addresses shall be notified to the other party, the International Bureau and the arbitral tribunal. The arbitral tribunal may, at any time, on its own initiative or at the request of a party, request evidence of the powers conferred on the agents of the parties. & /en 5  CHAPTER II COMPOSITION OF THE ARBITRAL TRIBUNAL ARTICLE II.1 Number of arbitrators The arbitral tribunal shall be composed of three arbitrators. If the applicant in its notice of arbitration or the defendant in its response to the notice of arbitration so request, the arbitral tribunal shall be composed of five arbitrators. ARTICLE II.2 Appointment of arbitrators 1. If three arbitrators are to be appointed, each of the parties shall designate one of them. The two arbitrators appointed by the parties shall select the third arbitrator, who shall be the chair of the arbitral tribunal. 2. If five arbitrators are to be appointed, each of the parties shall designate two of them. The four arbitrators appointed by the parties shall select the fifth arbitrator, who shall be the chair of the arbitral tribunal. & /en 6 3. If, within 30 days of the designation of the last arbitrator appointed by the parties, the arbitrators have not reached agreement on the selection of the chair of the arbitral tribunal, the chair shall be appointed by the Secretary-General of the Permanent Court of Arbitration. 4. To assist in the selection of arbitrators to compose the arbitral tribunal, an indicative list of persons possessing the qualifications referred to in paragraph 6, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement between the European Union and the Swiss Confederation on health, done at […] on […] (hereinafter referred to as "Agreement on health"), the Agreement between the European Community and the Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999 (hereinafter referred to as "Agreement on trade in agricultural products") and the Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union, done at […] on […] (hereinafter referred to as "Agreement on Switzerland's regular financial contribution"), shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. 5. Where a party fails to designate an arbitrator, the Secretary-General of the Permanent Court of Arbitration shall appoint that arbitrator from the list referred to in paragraph 4. In the absence of such a list, the arbitrator shall be appointed by lot by the Secretary-General of the Permanent Court of Arbitration from the individuals who have been formally proposed by one party or both parties for the purposes of paragraph 4. & /en 7 6. The persons constituting the arbitral tribunal shall be highly qualified persons, with or without ties to the parties, whose independence and lack of conflicts of interest is guaranteed, along with a wide range of experience. In particular, they shall have demonstrated expertise in law and the matters covered by this Agreement; they shall not take instructions from either party; and they shall serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute. The chair of the arbitral tribunal shall also have experience in dispute settlement procedures. ARTICLE II.3 Arbitrators' declarations 1. When a person is being considered for appointment as an arbitrator, that person shall report all circumstances likely to give rise to legitimate doubts as to his or her impartiality or independence. From the appointment and throughout the entire arbitration proceedings, an arbitrator shall report such circumstances to the parties and to the other arbitrators without delay, if the arbitrator has not already done so. 2. Any arbitrator may be dismissed if circumstances exist that could give rise to legitimate doubts about his or her impartiality or independence. 3. A party may only request the dismissal of an arbitrator that it has appointed for a reason that becomes known to it after that appointment. 4. If an arbitrator fails to act or if it is impossible de jure or de facto for an arbitrator to fulfil his or her role, the procedure for the dismissal of arbitrators laid down in Article II.4 shall apply. & /en 8  ARTICLE II.4 Dismissal of arbitrators 1. Any party wishing to dismiss an arbitrator shall make a request for dismissal within 30 days of the date on which it is notified of the appointment of that arbitrator or within 30 days of the date on which it becomes aware of the circumstances referred to in Article II.3. 2. The request for dismissal shall be sent to the other party, to the dismissed arbitrator, to the other arbitrators and to the International Bureau. It shall set out the reasons for the request for dismissal. 3. When a request for dismissal has been made, the other party may accept the request for dismissal. The arbitrator in question may also step aside. The acceptance or stepping aside does not imply acknowledgement of the reasons for the request for dismissal. 4. If, within 15 days of the date of the notification of the request for dismissal, the other party does not accept the request for dismissal or the arbitrator in question does not step aside, the party requesting the dismissal may ask the Secretary-General of the Permanent Court of Arbitration to take a decision on the dismissal. 5. Unless the parties agree otherwise, the decision referred to in paragraph 4 shall indicate the reasons for that decision. & /en 9  ARTICLE II.5 Replacement of an arbitrator 1. Subject to paragraph 2 of this Article, if it is necessary to replace an arbitrator during the arbitration proceedings, a replacement shall be appointed or selected in accordance with the procedure laid down in Article II.2 applicable to the appointment or selection of the arbitrator to be replaced. That procedure shall apply even if one party had not exercised its right to appoint or to participate in the appointment of the arbitrator to be replaced. 2. In the event of replacement of an arbitrator, the procedure shall resume at the stage where the replaced arbitrator ceased to perform his or her functions, unless the arbitral tribunal decides otherwise. ARTICLE II.6 Exclusion of liability Except in cases of intentional wrongdoing or gross negligence, the parties renounce, to the maximum extent permitted by the applicable law, any action against the arbitrators for any act or omission related to the arbitration. & /en 10  CHAPTER III ARBITRATION PROCEEDINGS ARTICLE III.1 General provisions 1. The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator has accepted his or her appointment. 2. The arbitral tribunal shall ensure that the parties are treated equally and that, at an appropriate stage of the proceedings, each of them has sufficient possibility to assert their rights and present their case. The arbitral tribunal shall conduct the proceedings in such a way as to avoid delays and unnecessary expenditure and to ensure the dispute between the parties is settled. 3. A hearing shall be organised, unless the arbitral tribunal decides otherwise, having heard the parties. 4. When a party sends a communication to the arbitral tribunal, it shall do so through the International Bureau and shall send a copy to the other party at the same time. The International Bureau shall send a copy of that communication to each of the arbitrators. & /en 11  ARTICLE III.2 Place of arbitration The place of arbitration is The Hague. The arbitral tribunal may, if exceptional circumstances so require, meet at any other place that it considers appropriate for its deliberations. ARTICLE III.3 Language 1. The languages of the proceedings shall be French and English. 2. The arbitral tribunal may order all documents enclosed with the statement of claim or the statement of defence and all further documents produced during the proceedings, submitted in their original language, to be accompanied by a translation in one of the languages of the proceedings. ARTICLE III.4 Statement of claim 1. The applicant shall send its statement of claim in writing to the defendant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The applicant may decide to deem its notice of arbitration referred to in Article I.4 a statement of claim, provided that it also meets the conditions in paragraphs 2 and 3 of this Article. & /en 12 2. The statement of claim shall include the following information: (a) the information set out in points (b) to (f) of Article I.4(3); (b) a statement of facts submitted in support of the claim; and (c) the legal arguments put forward in support of the claim. 3. The statement of claim shall, as far as possible, be accompanied by any documents and other evidence mentioned by the applicant or should refer to them. In the cases referred to in Article 32(3) of this Agreement, the statement of claim shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. ARTICLE III.5 Statement of defence 1. The defendant shall send the statement of defence in writing to the applicant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The defendant may decide to deem the response to the notice of arbitration referred to in Article I.5 a statement of defence, provided that the response to the notice of arbitration also meets the conditions in paragraph 2 of this Article. & /en 13 2. The statement of defence shall respond to the points in the statement of claim indicated in accordance with points (a) to (c) of Article III.4(2) of this Protocol. It shall, as far as possible, be accompanied by any documents and other evidence mentioned by the defendant or should refer to them. In the cases referred to in Article 32(3) of this Agreement, the statement of defence shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. 3. In the statement of defence, or at a later stage in the arbitration proceedings if the arbitral tribunal decides that a delay is justified by circumstances, the defendant may make a counterclaim provided that the arbitral tribunal has jurisdiction in respect of it. 4. Article III.4(2) and (3) shall apply to a counterclaim. ARTICLE III.6 Arbitral jurisdiction 1. The arbitral tribunal shall rule on whether it has jurisdiction on the basis of Article 32(2) or Article 33(2) of this Agreement. 2. In the cases referred to in Article 32(2) of this Agreement, the arbitral tribunal shall have a mandate to examine the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 32(1) of this Agreement. & /en 14 3. In the cases referred to in Article 33(2) of this Agreement, the arbitral tribunal that heard the main case shall have a mandate to examine the proportionality of the disputed compensatory measures, including where those measures have in whole or in part been taken in another bilateral agreement in the fields related to the internal market in which Switzerland participates. 4. A preliminary objection of lack of jurisdiction of the arbitral tribunal shall be made at the latest in the statement of defence or, in the case of a counterclaim, in the reply. The fact that a party has appointed an arbitrator or has taken part in their appointment shall not deprive it of the right to make such a preliminary objection. The preliminary objection that the dispute would exceed the arbitral tribunal's powers shall be made as soon as the question alleged to exceed its powers is raised during the arbitration proceedings. In any event, the arbitral tribunal may allow a preliminary objection made after the time limit laid down has elapsed if it believes that the delay was for a valid reason. 5. The arbitral tribunal may rule on the preliminary objection referred to in paragraph 4 either by treating it as a preliminary question or in the decision on the substance of the case. ARTICLE III.7 Other written submissions The arbitral tribunal shall, after having consulted the parties, decide what other written submissions, in addition to the statement of claim and statement of defence, the parties shall or may submit and shall set the time limit for their submission. & /en 15  ARTICLE III.8 Time limits 1. The time limits set by the arbitral tribunal for the communication of the written documents, including the statement of claim and the statement of defence, shall not exceed 90 days, unless the parties agree otherwise. 2. The arbitral tribunal shall take its final decision within 12 months of the date of its establishment. In exceptional circumstances of particular difficulty, the arbitral tribunal may extend that period by up to three additional months. 3. The time limits laid down in paragraphs 1 and 2 shall be halved: (a) upon request by the applicant or the defendant, if, within 30 days of that request the arbitral tribunal rules, after hearing the other party, that the case is urgent; or (b) if the parties so agree. 4. In the cases referred to in Article 33(2) of this Agreement, the arbitral tribunal shall take its final decision within six months of the date on which the compensatory measures have been notified in accordance with Article 33(1) of this Agreement. & /en 16  ARTICLE III.9 Referrals to the Court of Justice of the European Union 1. In application of Article 29 and Article 32(3) of this Agreement, the arbitral tribunal shall make a referral to the Court of Justice of the European Union. 2. The arbitral tribunal may make a referral to the Court of Justice of the European Union at any time in the proceedings, provided that the arbitral tribunal is able to define precisely enough the legal and factual background of the case, and the legal questions it raises. The proceedings before the arbitral tribunal shall be suspended until the Court of Justice of the European Union has delivered its ruling. 3. Each party may send a reasoned request to the arbitral tribunal to make a referral to the Court of Justice of the European Union. The arbitral tribunal shall reject such a request if it considers the conditions for a referral to the Court of Justice of the European Union referred to in paragraph 1 not to be met. If the arbitral tribunal rejects a party's request for a referral to the Court of Justice of the European Union, it shall give reasons for its decision in the decision on the substance of the case. 4. The arbitral tribunal shall make a referral to the Court of Justice of the European Union by means of a notice. The notice shall contain at least the following information: (a) a brief description of the dispute; (b) the legal act(s) of the Union and/or the provision(s) of this Agreement at issue; and & /en 17 (c) the concept of Union law to be interpreted in accordance with Article 29(2) of this Agreement. The arbitral tribunal shall give notice of the referral to the Court of Justice of the European Union to the parties. 5. The Court of Justice of the European Union shall apply, by analogy, the internal rules of procedure applicable to the exercise of its jurisdiction to make a preliminary ruling on the interpretation of the Treaties and acts made by the Union's institutions, bodies, offices and agencies. 6. The agents and lawyers authorised to represent the parties before the arbitral tribunal pursuant to Articles I.4, I.5, III.4 and III.5 shall be authorised to represent the parties before the Court of Justice of the European Union. ARTICLE III.10 Interim measures 1. In the cases referred to in Article 33(2) of this Agreement, either party may, at any stage of the arbitration procedure, apply for interim measures consisting of the suspension of the compensatory measures. 2. An application pursuant to paragraph 1 shall state the subject matter of the proceedings, the circumstances giving rise to urgency and the pleas of fact and law establishing a prima facie case for the interim measures applied for. It shall contain all the evidence and offers of evidence available to justify the grant of the interim measures. & /en 18 3. The party requesting the interim measures shall send its application in writing to the other party and to the arbitral tribunal through the International Bureau. The arbitral tribunal shall set a short time limit within which that other party may submit written or oral observations. 4. The arbitral tribunal shall, within one month of the submission of the application referred to in paragraph 1, adopt a decision on the suspension of the contested compensatory measures if the following conditions are met: (a) the arbitral tribunal is prima facie satisfied of the merit of the case submitted by the party requesting the interim measures in its application; (b) the arbitral tribunal considers that, pending its final decision, the party requesting the interim measures would suffer serious and irreparable harm absent the suspension of the compensatory measures; and (c) the harm caused to the party requesting the interim measures by the immediate application of the contested compensatory measures outweighs the interest in the immediate and effective application of those measures. 5. The suspension of proceedings referred to in the second subparagraph of Article III.9(2) shall not apply in proceedings pursuant to this Article. 6. A decision taken by the arbitral tribunal in accordance with paragraph 4 shall have only an interim effect and shall be without prejudice to the decision of the arbitral tribunal on the substance of the case. & /en 19 7. Unless the decision taken by the arbitral tribunal in accordance with paragraph 4 of this Article sets an earlier date for the end of the suspension, the suspension shall lapse when the final decision pursuant to Article 33(2) of this Agreement is taken. 8. For the avoidance of doubt, for the purposes of this Article, it is understood that, in considering the respective interests of the party requesting the interim measures and the other party, the arbitral tribunal shall take into account those of the individuals and economic operators of the parties, but that consideration shall not amount to granting any standing to such individuals or economic operators before the arbitral tribunal. ARTICLE III.11 Evidence 1. Each party shall provide evidence of the facts forming the grounds of its claim or its defence. 2. On request of a party, or on its own initiative, the arbitral tribunal may seek from the parties relevant information it considers necessary and appropriate. The arbitral tribunal shall set a time limit for the parties to respond to its request. 3. On request of a party, or on its own initiative, the arbitral tribunal may seek from any source any information it considers appropriate. The arbitral tribunal may also seek the opinion of experts as it considers appropriate and subject to any terms and conditions agreed by the parties, where applicable. 4. Any information obtained by the arbitral tribunal under this Article shall be made available to the parties, and the parties may submit comments on that information to the arbitral tribunal. & /en 20 5. After seeking the views of the other party, the arbitral tribunal shall adopt appropriate measures to address any questions raised by a party with regard to the protection of personal data, professional secrecy and the legitimate interests of confidentiality. 6. The arbitral tribunal shall be the judge of the admissibility, relevance and strength of the evidence submitted. ARTICLE III.12 Hearings 1. When a hearing must take place, the arbitral tribunal, having consulted the parties, shall notify the parties sufficiently far in advance of the date, time and place of the hearing. 2. The hearing shall be public, unless the arbitral tribunal, of its own motion or on application by the parties, decides otherwise for serious reasons. 3. Minutes of each hearing shall be drawn up and signed by the chair of the arbitral tribunal. Only those minutes shall be authentic. 4. The arbitral tribunal may decide to hold the hearing virtually in accordance with the practice of the International Bureau. The parties shall be informed of this practice in a timely manner. In such cases, paragraph 1, mutatis mutandis, and paragraph 3 shall apply. & /en 21  ARTICLE III.13 Default 1. If, within the time limit set by this Protocol or by the arbitral tribunal, without showing sufficient cause, the applicant has not submitted its statement of claim, the arbitral tribunal shall order the closure of the arbitration proceedings, unless there are outstanding questions on which a ruling may be necessary and if the arbitral tribunal considers it appropriate to do so. If, within the time limit set by this Protocol or by the arbitral tribunal, without showing sufficient cause, the defendant has not submitted its response to the notice of arbitration or its statement of defence, the arbitral tribunal shall order the continuation of the proceedings, without considering that default of itself to constitute acceptance of the applicant's allegations. The second subparagraph also applies where the applicant fails to submit a reply to a counterclaim. 2. If a party, duly convened in accordance with Article III.12(1), does not appear at a hearing and does not demonstrate sufficient cause for its failure to do so, the arbitral tribunal may continue the arbitration. 3. If a party, duly invited by the arbitral tribunal to produce further evidence, fails to do so within the time limits set without showing sufficient cause for its failure to do so, the arbitral tribunal may rule on the basis of the evidence it has available. & /en 22  ARTICLE III.14 Closure of the procedure 1. Where it is demonstrated that the parties have reasonably had the possibility of presenting their arguments, the arbitral tribunal may declare the closure of the proceedings. 2. The arbitral tribunal may, if it considers it necessary because of exceptional circumstances, decide on its own initiative or at the request of a party to reopen the proceedings at any time before it has taken its decision. CHAPTER IV DECISION ARTICLE IV.1 Decisions The arbitral tribunal shall strive to take its decisions by consensus. If, however, it proves impossible to take a decision by consensus, the arbitral tribunal's decision shall be taken by a majority of the arbitrators. & /en 23  ARTICLE IV.2 Form and effect of the decision of the arbitral tribunal 1. The arbitral tribunal may take separate decisions on different questions at different times. 2. All decisions shall be issued in writing and shall state the reasons on which they are based. They shall be final and binding on the parties. 3. The decision of the arbitral tribunal shall be signed by the arbitrators, shall contain the date on which it was taken and state the place of arbitration. A copy of the decision signed by the arbitrators shall be communicated to the parties by the International Bureau. 4. The International Bureau shall make the decision of the arbitral tribunal public. When making the decision of the arbitral tribunal public, the International Bureau shall respect the relevant rules on the protection of personal data, professional secrecy and the legitimate interests of confidentiality. The rules referred to in the second subparagraph shall be identical for all bilateral agreements in the fields of the internal market in which Switzerland participates as well as for the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution. The Joint Committee shall adopt and update those rules by a decision for the purposes of the Agreement. 5. The parties shall comply with all decisions of the arbitral tribunal without delay. & /en 24 6. In the cases referred to in Article 32(2) of this Agreement, having obtained the opinion of the parties, the arbitral tribunal shall set a reasonable time limit in the decision on the substance of the case to comply with its decision in accordance with Article 32(5) of this Agreement taking account of the parties' internal procedures. ARTICLE IV.3 Applicable law, rules of interpretation, mediator 1. The applicable law consists of this Agreement, the legal acts of the Union to which reference is made therein, as well as any other rule of international law relevant to the application of those instruments. 2. The arbitral tribunal shall decide in accordance with the rules of interpretation referred to in Article 29 of this Agreement. 3. Prior decisions taken by a dispute settlement body with regard to the proportionality of compensatory measures under another bilateral agreement among those referred to in Article 33(1) shall be binding upon the arbitral tribunal. 4. The arbitral tribunal shall not be permitted to decide as mediator or ex aequo et bono. & /en 25  ARTICLE IV.4 Mutually agreed solution or other reasons for termination of the proceedings 1. The parties may, at any time, mutually agree a solution to their dispute. They shall jointly communicate any such solution to the arbitral tribunal. If the solution requires approval pursuant to the relevant domestic procedures of either party, the notification shall refer to that requirement, and the arbitration procedure shall be suspended. If such approval is not required, or upon notification of the completion of any such domestic procedures, the arbitration procedure shall be closed. 2. If, in the course of proceedings, the applicant informs the arbitral tribunal in writing that it does not wish to further pursue the proceedings, and if, at the date on which that communication is received by the arbitral tribunal, the defendant has not yet taken any step in the proceedings, the arbitral tribunal shall issue an order officially recording the closure of the proceedings. The arbitral tribunal shall decide on the costs, which shall be borne by the applicant, if this appears justified by the conduct of that party. 3. If, before the decision of the arbitral tribunal is taken, the arbitral tribunal concludes that the continuation of the proceedings has become pointless or impossible for any reason other than those referred to in paragraphs 1 and 2, the arbitral tribunal shall inform the parties of its intention to issue an order closing the proceedings. The first subparagraph does not apply where there are outstanding questions on which it may be necessary to rule and if the arbitral tribunal judges it appropriate to do so. & /en 26 4. The arbitral tribunal shall communicate to the parties a copy of the order closing the arbitration proceedings or of the decision taken by agreement between the parties, signed by the arbitrators. Article IV.2(2) to (5) shall apply to arbitration decisions taken by agreement between the parties. ARTICLE IV.5 Correction of the decision of the arbitral tribunal 1. Within 30 days of receiving the decision of the arbitral tribunal, a party may, by giving notice to the other party and to the arbitral tribunal through the International Bureau, ask the arbitral tribunal to correct in the text of the decision of the arbitral tribunal any errors in computation, any clerical or typographical errors, or any errors or omissions of a similar nature. If it considers the request to be justified, the arbitral tribunal shall make the correction within 45 days of receiving the request. The request shall not have a suspensive effect on the time limit provided for in Article IV.2(6). 2. The arbitral tribunal may, within 30 days of communicating its decision, make the corrections referred to in paragraph 1 on its own initiative. 3. The corrections referred to in paragraph 1 of this Article shall be done in writing and form an integral part of the decision. Article IV.2(2) to (5) shall apply. & /en 27  ARTICLE IV.6 Arbitrators' fees 1. The fees referred to in Article IV.7 shall be reasonable, taking account of the complexity of the case, the time spent on it by the arbitrators and all other relevant circumstances. 2. A list of daily compensation and maximum and minimum hours, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution, shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. ARTICLE IV.7 Costs 1. Each party shall bear its own costs and half of the costs of the arbitral tribunal. 2. The arbitral tribunal shall set its costs in its decision on the substance of the case. Those costs shall include only: (a) the arbitrators' fees, to be stated separately for each arbitrator and to be set by the arbitral tribunal itself in accordance with Article IV.6; (b) the travel and other expenses incurred by the arbitrators; and & /en 28 (c) the fees and expenses of the International Bureau. 3. The costs referred to in paragraph 2 shall be reasonable, taking account of the amount in dispute, the complexity of the dispute, the time that the arbitrators and any experts appointed by the arbitral tribunal have spent on it and any other relevant circumstances. ARTICLE IV.8 Deposit of costs 1. At the start of the arbitration, the International Bureau may ask the parties to deposit an equal amount as an advance for the costs referred to in Article IV.7(2). 2. During the arbitration proceedings, the International Bureau may request from the parties deposits supplementary to those referred to in paragraph 1. 3. All amounts deposited by the parties in application of this Article shall be paid to the International Bureau and paid out by it to cover the costs actually incurred, including, in particular, the fees paid to the arbitrators and to the International Bureau. & /en 29  CHAPTER V FINAL PROVISIONS ARTICLE V.1 Amendments The Joint Committee may adopt, by decision, amendments to this Protocol. & /en 30 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 7 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  AGREEMENT BETWEEN THE EUROPEAN UNION AND THE SWISS CONFEDERATION ON HEALTH & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland" hereinafter referred to as the "Contracting Parties"; DESIRING to foster collaboration for the benefit of the health of the populations of the Contracting Parties, in particular to prepare for and respond to serious cross-border threats to health; CONSIDERING that the threats to health do not stop at national borders that several Member States of the Union share with Switzerland and that an important number of persons cross the common borders every day, and therefore that a better exchange of expertise in the area of serious cross- border threats to health will be of common interest; RESOLVED to respond in the most effective manner to the serious cross-border threats to health, including by exchanging information through common systems and mutual capacities of epidemiological surveillance; CONSIDERING that the participation of Switzerland in Union bodies, agencies and structures for the prevention and control of diseases as well as the surveillance and alert networks and the application of similar preparedness and response mechanisms for prevention and control of serious cross-border threats to health will improve the level of health protection for the populations of the Contracting Parties; & /en 1 RECOGNISING that a bilateral agreement between the Contracting Parties on health should provide a clear and strong legal foundation for cooperation in the area of health security; CONSIDERING that the Union has established mechanisms and structures for coordination of prevention, preparedness and response in the area of serious cross-border threats to health, and that the participation of Switzerland in those mechanisms and structures could be of mutual benefit to both Contracting Parties; RECOGNISING that it is mutually beneficial to foster the exchange of professional expertise between the Contracting Parties, including through secondments; CONSIDERING that a legal basis has been established for the participation of Switzerland in Union Programmes, including the EU4Health Programme; and RECOGNISING the importance of promoting cooperation between the Contracting Parties on health-related matters covered by this Agreement and by the Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; SHARING the general objectives of the EU4Health Programme, CONSIDERING the common goals, values and strong links of the Contracting Parties in the field of health; RECOGNISING the common desire of the Contracting Parties to develop, strengthen, stimulate and extend their relations and cooperation therein; & /en 2 CONSIDERING that closer cooperation in the field of serious cross-border threats to health and Switzerland's participation in the European Centre for Disease Prevention and Control (the "Centre") will increase the level of health protection for the populations of the Contracting Parties and that the participation of Switzerland in the Centre should involve a financial contribution that needs to be established for every programming period; PREPARED to explore the possibility of broadening their cooperation to cover other health related matters in the future; RESOLVED to strengthen cooperation between the Contracting Parties in the areas governed by this Agreement on the basis of the same rules as those that apply in the Union, while preserving their independence and that of their institutions and, as regards Switzerland, respect for the principles stemming from direct democracy and federalism; RECOGNISING that this Agreement does not constitute an agreement in the fields related to the internal market of the Union in which Switzerland participates; CONSIDERING that it is nevertheless appropriate to apply by analogy to this Agreement the particular principles for institutional provisions which are common to the agreements concluded or to be concluded in the fields related to the internal market in which Switzerland participates; REAFFIRMING that the competence of the Swiss Federal Supreme Court and all other Swiss courts as well as that of the Member States' courts and of the Court of Justice of the European Union to interpret this Agreement in individual cases is preserved; HAVE AGREED AS FOLLOWS: & /en 3  CHAPTER 1 GENERAL PROVISIONS ARTICLE 1 Purpose The purpose of this Agreement is to strengthen the cooperation between the Contracting Parties in order to: (a) protect and improve the health of the populations of the Member States of the Union and Switzerland; (b) fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as by promoting health information and health literacy; (c) ensure a consistently high level of surveillance of serious cross-border threats to health in the territories of the Contracting Parties, as well as coordinate their alert systems and responses to such threats. & /en 4  ARTICLE 2 Scope The Contracting Parties shall strengthen and broaden cooperation in the field of health security. The scope of this cooperation shall be limited to the following areas: – the health security mechanisms on serious cross-border threats to health; – the European Centre for Disease Prevention and Control (hereinafter referred as "the Centre"). ARTICLE 3 Cooperation The Contracting Parties shall cooperate, exchange information and coordinate their policies on serious cross-border threats to health through the mechanisms and structures laid down in the legal acts of the Union mentioned in Annex I, in particular the Union's surveillance and alert networks and preparedness and response mechanisms for the prevention and control of communicable diseases. The Contracting Parties shall strengthen their overall cooperation in the area of health security, including epidemiological surveillance, in order to enhance emergency preparedness and response. & /en 5  CHAPTER 2 INSTITUTIONAL PROVISIONS ARTICLE 4 General Content In order to guarantee legal certainty for the Contracting Parties as regards the cooperation set out in this Agreement, and taking into account the principles of international law, this chapter lays down the institutional solutions which are analogous to those common to the bilateral agreements concluded or to be concluded in the fields related to the internal market in which Switzerland participates, without changing the scope of this Agreement, notably: (a) the procedure for aligning this Agreement with legal acts of the Union relevant to this Agreement; (b) the uniform interpretation and application of this Agreement and of the legal acts of the Union to which reference is made in Annex I; (c) the surveillance and application of this Agreement; and (d) the settlement of disputes in the context of this Agreement. & /en 6  ARTICLE 5 Participation in the drafting of legal acts of the Union ("decision-shaping") 1. When drafting a proposal for a legal act of the Union in accordance with the Treaty on the Functioning of the European Union (hereinafter referred to as "TFEU") in the field covered by this Agreement, the European Commission (hereinafter referred to as the "Commission") shall inform Switzerland thereof and shall informally consult Switzerland's experts in the same way that it asks for the views of experts from the Member States of the Union for the drafting of its proposals. At the request of either Contracting Party, a preliminary exchange of views shall take place within the Joint Committee. The Contracting Parties shall consult each other again, at the request of either of them, within the Joint Committee at important moments of the phase preceding the adoption of the legal act by the Union, in a continuous process of information and consultation. 2. When preparing, in accordance with the TFEU, delegated acts concerning basic acts of Union law in the field covered by this Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts and shall consult Switzerland's experts on the same basis as it consults the experts of the Member States of the Union. 3. When preparing, in accordance with the TFEU, implementing acts concerning basic acts of Union law in the field covered by this Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts to be submitted later on to the committees assisting the Commission in the exercise of its implementing powers and shall consult Switzerland's experts on the same basis as it consults the experts from the Member States of the Union. & /en 7 4. Switzerland's experts shall be involved in the work of committees not covered by paragraphs 2 and 3 where this is required for the proper functioning of this Agreement. A list of those committees and, where appropriate, of other committees with similar characteristics shall be drawn up and updated by the Joint Committee. 5. This Article shall not apply with regard to legal acts of the Union or provisions thereof falling within the scope of an exception referred to in Article 6(5). ARTICLE 6 Integration of legal acts of the Union 1. In order to guarantee legal certainty and the homogeneity of the law as regards the cooperation set out in this Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the field covered by this Agreement are integrated into this Agreement as quickly as possible after their adoption. 2. Legal acts of the Union integrated into this Agreement in accordance with paragraph 4 shall be, by their integration into this Agreement, part of the legal order of Switzerland subject, as the case may be, to the adaptations decided upon by the Joint Committee. 3. When it adopts a legal act in the field covered by this Agreement, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. & /en 8 4. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend Annex I to this Agreement, including the necessary adaptations. 5. The obligation set out in paragraph 1 shall not apply to legal acts of the Union or provisions thereof falling within the scope of an exception. This Agreement does not contain an exception. 6. Subject to Article 7, decisions of the Joint Committee pursuant to paragraph 4 shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. 7. The Contracting Parties shall cooperate in good faith throughout the procedure set out in this Article in order to facilitate decision-making. ARTICLE 7 Fulfilment of constitutional obligations by Switzerland 1. During the exchange of views referred to in Article 6(3), Switzerland shall inform the Union whether a decision as referred to in Article 6(4) requires the fulfilment of constitutional obligations by Switzerland in order to become binding. 2. Where the decision referred to in Article 6(4) requires Switzerland to fulfil constitutional obligations in order to become binding, Switzerland shall have a time limit of two years maximum from the date of the information provided for in paragraph 1, except where a referendum procedure is launched, in which case this period shall be extended by one year. & /en 9 3. Pending the information by Switzerland that it has fulfilled its constitutional obligations, the Contracting Parties shall provisionally apply the decision referred to in Article 6(4), unless Switzerland informs the Union that the provisional application of the decision is not possible and provides the reasons for this. Under no circumstances can the provisional application occur before the date on which the corresponding legal act of the Union becomes applicable in the Union. 4. Switzerland shall notify the Union without delay through the Joint Committee once it has fulfilled the constitutional obligations referred to in paragraph 1. 5. The decision shall enter into force on the day on which the notification provided for in paragraph 4 is delivered, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. ARTICLE 8 References to territories Whenever the legal acts of the Union integrated into this Agreement contain references to the territory of the "European Union" or of the "Union", the references shall for the purposes of this Agreement be understood to be references to the territories referred to in Article 20. & /en 10  ARTICLE 9 References to nationals of Member States of the Union Whenever the legal acts of the Union integrated into this Agreement contain references to nationals of Member States of the Union, the references shall for the purposes of this Agreement be understood to be references to nationals of the Member States of the Union and of Switzerland. ARTICLE 10 Entry into force and implementation of the legal acts of the Union Provisions of the legal acts of the Union integrated into this Agreement on their entry into force or implementation are not relevant for the purposes of this Agreement. The time limits and dates for Switzerland for bringing into force and implementing the decisions integrating legal acts of the Union into this Agreement follow from Article 6(6) and Article 7(5), as well as from provisions on transitional arrangements. ARTICLE 11 Addressees of the legal acts of the Union Provisions of the legal acts of the Union integrated into this Agreement indicating that they are addressed to the Member States of the Union are not relevant for the purposes of this Agreement. & /en 11  ARTICLE 12 Uniform interpretation principle 1. For the purpose of achieving the objective set out in Article 4 and in accordance with the principles of public international law, this Agreement and the legal acts of the Union to which reference is made therein shall be uniformly interpreted and applied in the areas covered by this Agreement. 2. The legal acts of the Union to which reference is made in Annex I and, to the extent that their application involves concepts of Union law, the provisions of this Agreement shall be interpreted and applied in accordance with the case law of the Court of Justice of the European Union, prior or subsequent to the signature of this Agreement. ARTICLE 13 Effective and harmonious application principle 1. The Commission and the competent Swiss authorities shall cooperate and assist each other in ensuring the surveillance of the application of this Agreement. They may exchange information on the activities of surveillance of the application of this Agreement. They may exchange views and discuss issues of mutual interest. & /en 12 2. Each Contracting Party shall take appropriate measures to ensure the effective and harmonious application of this Agreement on its territory. 3. The surveillance of the application of this Agreement shall be carried out jointly by the Contracting Parties within the Joint Committee. If the Commission or the competent Swiss authorities become aware of a case of incorrect application, the matter may be referred to the Joint Committee with a view to finding an acceptable solution. 4. The Commission and the competent Swiss authorities respectively shall monitor the application of this Agreement by the other Contracting Party. The procedure provided for in Article 15 applies. ARTICLE 14 Exclusivity principle The Contracting Parties undertake not to submit a dispute regarding the interpretation or application of this Agreement and of the legal acts of the Union to which reference is made in Annex I or, where applicable, regarding the conformity with this Agreement of a decision adopted by the Commission on the basis of this Agreement to any method of settlement other than those provided for in this Agreement. & /en 13  ARTICLE 15 Procedure in the event of difficulty of interpretation or application 1. In the event of difficulty of interpretation or application of this Agreement or of a legal act of the Union to which reference is made in Annex I, the Contracting Parties shall consult each other within the Joint Committee in order to find a mutually acceptable solution. To this end, all useful elements of information shall be provided to the Joint Committee to enable it to make a detailed examination of the situation. The Joint Committee shall examine all possibilities that allow the proper functioning of this Agreement to be maintained. 2. If the Joint Committee is not able to find a solution to the difficulty referred to in paragraph 1 within three months of the date on which the difficulty was submitted to it, either of the Contracting Parties may request that an arbitral tribunal settle the dispute in accordance with the rules laid down in the Protocol on the arbitral tribunal. 3. Where the dispute raises a question concerning the interpretation or application of a provision referred to in Article 12(2), and if the interpretation of that provision is relevant to the settlement of the dispute and necessary to enable it to decide, the arbitral tribunal shall refer that question to the Court of Justice of the European Union. Where the dispute raises a question concerning the interpretation or application of a provision that falls within the scope of an exception from the dynamic alignment obligation referred to in Article 6(5) and where the dispute does not involve the interpretation or application of concepts of Union law, the arbitral tribunal shall settle the dispute without referral to the Court of Justice of the European Union. & /en 14 4. Where the arbitral tribunal refers a question to the Court of Justice of the European Union pursuant to paragraph 3: (a) the ruling of the Court of Justice of the European Union shall be binding on the arbitral tribunal; and (b) Switzerland shall enjoy the same rights as the Member States and the institutions of the Union and shall be subject to the same procedures before the Court of Justice of the European Union, mutatis mutandis. 5. Each Contracting Party shall take all measures necessary to comply in good faith with the arbitral tribunal's decision. The Contracting Party that has been found by the arbitral tribunal not to have complied with this Agreement shall inform the other Contracting Party through the Joint Committee of the measures it has taken to comply with the arbitral tribunal's decision. & /en 15  ARTICLE 16 Compensatory measures 1. If the Contracting Party that has been found by the arbitral tribunal not to have complied with this Agreement does not inform the other Contracting Party, within a reasonable time period set in accordance with Article IV.2(6) of the Protocol on the arbitral tribunal, of the measures it has taken to comply with the arbitral tribunal's decision or if the other Contracting Party considers that the measures communicated do not comply with the arbitral tribunal's decision, this other Contracting Party may adopt proportionate compensatory measures, in order to remedy a potential imbalance. Compensatory measures may only be adopted within the framework of this Agreement or in accordance with Articles 19(1)(c) and 20(4) of the Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes, done at … on …, hereinafter the "Agreement on Switzerland's participation in Union Programmes", as regards Switzerland's participation in the Programme for the Union's action in the field of health1. The Contracting Party adopting compensatory measures shall notify the Contracting Party that has been found by the arbitral tribunal not to have complied with this Agreement of the compensatory measures, which shall be specified in the notification. Those compensatory measures shall take effect three months from the date of this notification. 1 For the period 2021-2027, this is the EU4Health Programme as established by Regulation (EU) 2021/522 of the European Parliament and of the Council of 24 March 2021 establishing a Programme for the Union's action in the field of health ('EU4Health Programme') for the period 2021-2027, and repealing Regulation (EU) No 282/2014 (OJ L 107, 26.3.2021, p. 1). & /en 16 2. If within one month from the date of the notification of the intended compensatory measures, the Joint Committee has not taken a decision to suspend, amend or annul those compensatory measures, either Contracting Party may submit to arbitration the question of the proportionality of those compensatory measures, in accordance with the Protocol on the arbitral tribunal. 3. The arbitral tribunal shall decide within the time limits laid down in Article III.8(4) of the Protocol on the arbitral tribunal. 4. Compensatory measures shall not have retroactive effect. In particular, the rights and obligations already acquired by individuals and economic operators before the compensatory measures take effect shall be preserved. ARTICLE 17 Cooperation between jurisdictions 1. To promote the homogeneous interpretation, the Swiss Federal Supreme Court and the Court of Justice of the European Union shall agree on a dialogue and the modalities thereof. 2. Switzerland shall have the right to lodge statements of case or written observations with the Court of Justice of the European Union where a court of a Member State of the Union refers to the Court of Justice of the European Union a question concerning the interpretation of this Agreement or of a provision of a legal act of the Union referred to in Annex I for a preliminary ruling. & /en 17  ARTICLE 18 Implementation 1. The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from this Agreement and shall refrain from taking any measure which could jeopardise the achievement of its purpose. 2. The Contracting Parties shall take all measures necessary to guarantee the intended result of the legal acts of the Union to which reference is made in Annex I and shall refrain from taking any measure that could jeopardise the achievement of their aims. ARTICLE 19 Joint Committee 1. A Joint Committee is hereby established. The Joint Committee shall be composed of representatives of the Contracting Parties. 2. The Joint Committee shall be co-chaired by a representative of the European Union and a representative of Switzerland. 3. The Joint Committee: (a) shall ensure the proper functioning and the effective administration and application of this Agreement; & /en 18 (b) may exchange information and consult on questions related to this Agreement and its related financial aspects; (c) shall provide a forum for mutual consultation and a continuous exchange of information between the Contracting Parties, in particular with a view to finding a solution to any difficulty of interpretation or application of this Agreement or of a legal act of the Union to which reference is made in Annex I in accordance with Article 15; (d) shall ensure, in cooperation with the Joint Committee established by the Agreement on Switzerland's participation in Union Programmes ("the Joint Committee on participation in Union Programmes"), the proper functioning and the effective implementation of Switzerland's participation in the programme for the Union's action in the field of health, only for matters covered by this Agreement; to that end the Joint Committee shall inform the Joint Committee on participation in Union programmes when: (i) a new Protocol to the Agreement on Switzerland's participation in Union Programmes on the Programme for the Union's action in the field of Health needs to be adopted; (ii) the Protocol needs to be amended due to changes in the scope of this Agreement; (iii) the agenda of its meetings include matters related to this Programme; (e) shall make recommendations to the Contracting Parties in matters pertaining to this Agreement; (f) shall adopt decisions where provided for in this Agreement; & /en 19 (g) in the event of an amendment to Articles 1 to 6, 10 to 15, or 17 or 18 of Protocol No 7 on the privileges and immunities of the European Union (hereinafter referred to as "Protocol (No 7)"), annexed to the Treaty on the Functioning of the European Union, the Joint Committee shall amend the Appendix accordingly; and (h) shall exercise any other competence granted to it in this Agreement. 4. The Joint Committee shall act by consensus. Decisions shall be binding on the Contracting Parties, which shall take all necessary measures to implement them. 5. The Joint Committee shall meet at least once a year, in Brussels and Bern alternately, unless the co-chairs decide otherwise. It shall also meet at the request of either Contracting Party. The co-chairs may agree that a meeting of the Joint Committee be held by videoconference or teleconference. 6. The Joint Committee shall adopt its rules of procedure at its first meeting and update them as necessary. 7. The Joint Committee may decide to set up any working party or group of experts that can assist it in carrying out its duties. & /en 20  CHAPTER 3 FINAL PROVISIONS ARTICLE 20 Territorial scope This Agreement shall apply, of the one part, to the territory in which the Treaty on European Union and the TFEU apply and under the conditions laid down in those Treaties, and, of the other part, to the territory of Switzerland. ARTICLE 21 Revision 1. The Contracting Parties shall regularly review the functioning of this Agreement within the Joint Committee and may consider revising it, namely to improve their cooperation or to extend it to other health related matters. 2. In the light of such potential considerations, the Contracting Parties may enter into negotiations, in accordance with their respective internal procedures, with a view to revising it. 3. The result of any negotiation shall be subject to ratification or approval by the Contracting Parties in accordance with their respective internal procedures. & /en 21  ARTICLE 22 Professional secrecy Representatives, experts and other agents of the Contracting Parties shall be required, even after their duties have ceased, not to disclose information, obtained in the framework of this Agreement, which is covered by the obligation of professional secrecy. ARTICLE 23 Classified information and sensitive non-classified information 1. Nothing in this Agreement shall be construed as requiring a Contracting Party to make available classified information. 2. Classified information or material provided by or exchanged between the Contracting Parties under this Agreement shall be handled and protected in compliance with the Agreement between the Swiss Confederation and the European Union on the security procedures for the exchange of classified information, done at Brussels on 28 April 2008 and any security arrangement implementing it. 3. The Joint Committee shall adopt, by means of a decision, handling instructions to ensure the protection of sensitive non-classified information exchanged between the Contracting Parties. & /en 22  ARTICLE 24 Annexes, Appendices and Protocols The Annexes, Appendices and Protocols to this Agreement shall form an integral part thereof. ARTICLE 25 Financial contribution 1. Switzerland shall contribute to the financing of the activities of the Union agencies, information systems and other activities listed in Article 1 of Annex II to which it has access, in accordance with this Article and Annex II. The Joint Committee may adopt a decision to amend Annex II. 2. The Union may suspend the participation of Switzerland in the activities referred to in paragraph 1 of this Article at any time if Switzerland fails to meet the payment deadline in accordance with the terms of payment set out in Article 2 of Annex II. Where Switzerland fails to meet a payment deadline, the Union shall send Switzerland a formal letter of reminder. Where no full payment is made within 30 days of the date of reception of that formal letter of reminder, the Union may suspend the participation of Switzerland in the relevant activity. & /en 23 3. The financial contribution shall take the form of the sum of: (a) an operational contribution; and (b) a participation fee. 4. The financial contribution shall take the form of an annual financial contribution and shall be due at the dates specified in the calls for funds issued by the Commission. 5. The operational contribution shall be based on a contribution key defined as the ratio of the gross domestic product (hereinafter referred to as "GDP") of Switzerland at market prices to the GDP of the Union at market prices. For that purpose, the figures for GDP at market prices of the Contracting Parties shall be the latest such figures available as of 1 January of the year in which the annual payment is made as provided by the Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics, done at Luxembourg on 26 October 2004. If that agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development. 6. The operational contribution for each Union agency shall be calculated by applying the contribution key to its annual voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question, taking into account for each agency any adjusted operational contribution as defined in Article 1 of Annex II. The operational contribution for the information systems and other activities shall be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget (such as work programmes or contracts). All reference amounts shall be based on commitment appropriations. & /en 24 7. The annual participation fee shall be 4 % of the annual operational contribution as calculated in accordance with paragraphs 5 and 6. 8. The Commission shall provide Switzerland with adequate information in relation to the calculation of its financial contribution. That information shall be provided having due regard to the Union's confidentiality and data protection rules. 9. All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received shall be made in euro. 10. Where the entry into force of this Agreement does not coincide with the beginning of a calendar year, Switzerland's operational contribution for the year in question shall be subject to adjustment, according to the methodology and terms of payment defined in Article 4 of Annex II. 11. Detailed provisions for the application of this Article are set out in Annex II. 12. Three years following the entry into force of this Agreement, and every three years subsequently, the Joint Committee shall review the conditions of Switzerland's participation as defined in Article 1 of Annex II and, where appropriate, adapt them. & /en 25  ARTICLE 26 Entry into force 1. This Agreement shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary for the entry into force of this Agreement. 2. This Agreement shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; & /en 26 (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (i) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (j) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (l) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; & /en 27 (m) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (n) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. ARTICLE 27 Termination 1. Each Contracting Party may terminate this Agreement by notifying the other Contracting Party. 2. This Agreement shall cease to be in force 6 months after receipt of the notification referred to in paragraph 1. 3. Where this Agreement ceases to be in force, the rights and obligations that individuals and economic operators have already acquired by virtue of this Agreement before the date of the cessation of this Agreement shall be preserved. The Contracting Parties shall settle by mutual agreement what action is to be taken in respect of rights in the process of being acquired. & /en 28 Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Agreement. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 29  ANNEX I LEGAL ACTS OF THE UNION INTEGRATED IN ACCORDANCE WITH ARTICLE 6 OF THE AGREEMENT Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland. This shall be applied in full respect for the institutional provisions contained in Chapter 2 of the Agreement. Serious Cross-Border Threats to Health 1. 32022 R 2371 Regulation (EU) 2022/2371 of the European Parliament and of the Council of 23 November 2022 on serious cross-border threats to health and repealing Decision No 1082/2013/EU (OJ EU L 314, 6.12.2022, p. 26, ELI: http://data.europa.eu/eli/reg/2022/2371/oj). The provisions of Regulation (EU) 2022/2371 shall, for the purposes of this Agreement, be read with the following adaptations: (a) Switzerland shall participate fully in the Health Security Committee and shall have the same rights and obligations within it as Member States of the Union, except for the right to vote; & /en 1 (b) Switzerland shall be a full rights user of the Early Warning and Response System (EWRS) established by Regulation (EU) 2022/2371; (c) Switzerland will use the definition contained in Article 3(10) of Regulation (EU) 2022/2371 only for the implementation of this Agreement; (d) the reports referred to in Article 7(1) of Regulation (EU) 2022/2371 shall be provided by Switzerland at the same time as required from the Member States of the Union under that Article, but in no case earlier than one year following the entry into force of this Agreement. Switzerland transmits its report via the EWRS; (e) in Article 7(5) of Regulation (EU) 2022/2371, the words "as European Union classified information" shall be deleted. The second sentence shall be understood, regarding Switzerland, as "Those national security regulations shall offer a degree of protection of classified information in accordance with the Agreement between the Swiss Confederation and the European Union on the security procedures for the exchange of classified information and its security arrangements"; (f) for the purposes of this Agreement, participation in the joint procurement procedure referred to in Article 12(3)(a) of Regulation (EU) 2022/2371 shall also be open to Switzerland; (g) Article 12(4)(a), (b), (c), (e) and (f) of Regulation (EU) 2022/2371 shall not apply to Switzerland; & /en 2  (h) Switzerland's competence to recognise and terminate public health emergencies on a national level remains unaffected by Article 23 of Regulation (EU) 2022/2371; (i) Article 25(a) and (b) of Regulation (EU) 2022/2371 shall not apply to Switzerland; (j) in Article 27(1) of Regulation (EU) 2022/2371, the reference to Regulation (EU) 2016/679 and Directive 2002/58/EC shall be understood, regarding Switzerland, as a reference to relevant national legislation. 2. 32023 R 1808 Commission Implementing Regulation (EU) 2023/1808 of 21 September 2023 setting out the template for the provision of information on prevention, preparedness and response planning in relation to serious cross-border threats to health in accordance with Regulation (EU) 2022/2371 of the European Parliament and of the Council (OJ EU L 234, 22.9.2023, p. 105, ELI: http://data.europa.eu/eli/reg_impl/2023/1808/oj). 3. 32024 R 0892 Commission Implementing Regulation (EU) 2024/892 of 22 March 2024 designating European Union reference laboratories for certain specific areas of public health (OJ EU L, 2024/892, 25.3.2024, ELI: http://data.europa.eu/eli/reg_impl/2024/892/oj). 4. 32024 R 1232 Commission Delegated Regulation (EU) 2024/1232 of 5 March 2024 supplementing Regulation (EU) 2022/2371 of the European Parliament and of the Council as regards assessments of the state of implementation of national prevention, preparedness and response plans and their relation with the Union prevention, preparedness and response plan (OJ EU L, 2024/1232, 8.5.2024, ELI: http://data.europa.eu/eli/reg_del/2024/1232/oj). & /en 3 5. 32024 R 2959 Commission Implementing Regulation (EU) 2024/2959 of 29 November 2024 designating European Union reference laboratories for public health on food- and water-borne bacteria; on food-, water- and vector-borne helminths and protozoa; and on food- and water- borne viruses (OJ EU L, 2024/2959, 2.12.2024, ELI: http://data.europa.eu/eli/reg_impl/2024/2959/oj). 6. 32018 D 0945 Commission Implementing Decision (EU) 2018/945 of 22 June 2018 on the communicable diseases and related special health issues to be covered by epidemiological surveillance as well as relevant case definitions (OJ EU L 170, 6.7.2018, p. 1, ELI: http://data.europa.eu/eli/dec_impl/2018/945/oj). 7. 32017 D 0253 Commission Implementing Decision (EU) 2017/253 of 13 February 2017 laying down procedures for the notification of alerts as part of the early warning and response system established in relation to serious cross-border threats to health and for the information exchange, consultation and coordination of responses to such threats pursuant to Decision No 1082/2013/EU (OJ EU L 37, 14.2.2017, p. 23, ELI: http://data.europa.eu/eli/dec_impl/2017/253/oj), as amended by: – 32021 D 0858 Commission Implementing Decision (EU) 2021/858 of 27 May 2021 amending implementing Decision (EU) 2017/253 as regards alerts triggered by serious cross-border threats to health and for the contact tracing of passengers identified through Passenger Locator Forms (OJ EU L 188, 28.5.2021, p. 106, ELI: http://data.europa.eu/eli/dec_impl/2021/858/oj); & /en 4  – 32021 D 1212 Commission Implementing Decision (EU) 2021/1212 of 22 July 2021 amending Decision (EU) 2017/253 as regards alerts triggered by serious cross-border threats to health and for the contact tracing of exposed persons in the context of the completion of Passenger Locator Forms (OJ EU L 263, 23.7.2021, p. 32, ELI: http://data.europa.eu/eli/dec_impl/2021/1212/oj). EUROPEAN CENTRE FOR DISEASE PREVENTION AND CONTROL 8. 32004 R 0851 Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 establishing a European Centre for disease prevention and control (OJ EU L 142, 30.4.2004, p. 1, ELI: http://data.europa.eu/eli/reg/2004/851/oj), as amended by: – 32022 R 2370 Regulation (EU) 2022/2370 of the European Parliament and of the Council of 23 November 2022 amending Regulation (EC) No 851/2004 establishing a European centre for disease prevention and control (OJ EU L 314, 6.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2370/oj). The provisions of Regulation (EC) No 851/2004 shall, for the purposes of this Agreement, be read with the following adaptations: (a) Switzerland shall participate in the Centre; (b) Switzerland shall contribute financially to the activities of the Centre in accordance with Article 25 of the Agreement; & /en 5 (c) Switzerland shall participate fully in the Management Board of the Centre and shall have the same rights and obligations within it as Member States of the Union, except for the right to vote; (d) Switzerland shall participate fully in the Advisory Forum of the Centre and shall have the same rights and obligations within it as Member States of the Union; (e) Switzerland shall grant to the Centre and its staff, within the framework of their official functions for the Agency, the privileges and immunities provided for in the Appendix , which are based on Articles 1 to 6, 10 to 15, and 17 and 18 of the Protocol (No 7). References to the corresponding articles of that Protocol are indicated between brackets for information; (f) by way of derogation from Article 12(2)(a) of the Conditions of Employment of Other Servants of the European Union (laid down in Regulation No 31 (EEC), 11 (EAEC), laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community (OJ 45, 14.6.1962, p. 1385), including any subsequent amendment), the Centre may, if it so decides, engage under contract Swiss nationals that enjoy their full rights as citizens. The Centre may accept the secondment of experts by Switzerland; (g) Switzerland shall participate fully in the networks operated by the Centre and shall have the same rights and obligations within them as Member States of the Union; & /en 6 (h) in Article 3(2)(g) of Regulation (EC) No 851/2004, the words "with the assistance of and" are added after the expression "on a case-by-case basis"; (i) in Article 20a of Regulation (EC) No 851/2004, the reference to Regulation (EU) 2016/679 and Directive 2002/58/EC shall be understood, regarding Switzerland, as a reference to relevant national legislation. & /en 7  Appendix ON PRIVILEGES AND IMMUNITIES ARTICLE 1 (corresponding to Article 1 of Protocol (No 7)) The premises and buildings of the Agency shall be inviolable. They shall be exempt from search, requisition, confiscation or expropriation. The property and assets of the Agency shall not be the subject of any administrative or legal measure of constraint without the authorisation of the Court of Justice of the European Union. ARTICLE 2 (corresponding to Article 2 of Protocol (No 7)) The archives of the Agency shall be inviolable. ARTICLE 3 (corresponding to Article 3 and 4 of Protocol (No 7)) 1. The Agency, its assets, revenues and other property shall be exempt from all direct taxes. & /en 8 2. Goods and services exported to the Agency for its official use from Switzerland or provided to the Agency in Switzerland shall not be subject to any indirect duties and taxes. 3. Exemption from VAT shall be granted if the actual purchase price of the goods and services mentioned in the invoice or corresponding document totals at least one hundred Swiss francs (inclusive of tax).The Agency shall be exempt from all customs duties, prohibitions and restrictions on imports and exports in respect of articles intended for its official use; articles so imported shall not be disposed of, whether or not in return for payment, in Switzerland, except under conditions approved by the government of Switzerland. 4. The exemption from VAT, excise duty and any other indirect taxes shall be granted by way of remit on presentation to the goods or services supplier of the Swiss forms provided for the purpose. 5. No exemption shall be granted in respect of taxes and dues, which amount merely to charges for public utility services. ARTICLE 4 (corresponding to Article 5 of Protocol (No 7)) For its official communications and the transmission of all its documents, the Agency shall enjoy in Switzerland the treatment accorded by that State to diplomatic missions. Official correspondence and other official communications of the Agency shall not be subject to censorship. & /en 9  ARTICLE 5 (corresponding to Article 6 of Protocol (No 7)) The laissez-passer of the Union issued to members and servants of the Agency shall be recognised as valid travel documents within the territory of Switzerland. Those laissez-passer shall be issued to officials and other servants under conditions laid down in the Staff Regulations of Officials and the Conditions of Employment of other servants of the Union (Regulation No 31 (EEC), 11 (EAEC), laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community (OJ 45, 14.6.1962, p. 1385), including any subsequent amendments). ARTICLE 6 (corresponding to Article 10 of Protocol (No 7)) Representatives of Member States of the Union taking part in the work of the Agency, their advisers and technical experts shall, in the performance of their duties and during their travel to and from the place of meeting in Switzerland, enjoy the customary privileges, immunities and facilities. & /en 10  ARTICLE 7 (corresponding to Article 11 of Protocol (No 7)) In the territory of Switzerland and whatever their nationality, officials and other servants of the Agency shall: (a) subject to the provisions of the Treaties relating, on the one hand, to the rules on the liability of officials and other servants towards the Union and, on the other hand, to the jurisdiction of the Court of Justice of the European Union in disputes between the Union and its officials and other servants, be immune from legal proceedings in respect of acts performed by them in their official capacity, including their words spoken or written. They shall continue to enjoy this immunity after they have ceased to hold office; (b) together with their spouses and dependent members of their families, not be subject to immigration restrictions or to formalities for the registration of aliens; (c) in respect of currency or exchange regulations, be accorded the same facilities as are customarily accorded to officials of international organisations; (d) enjoy the right to import free of duty their furniture and effects at the time of first taking up their post in Switzerland, and the right to re-export free of duty their furniture and effects, on termination of their duties in that country, subject in either case to the conditions considered to be necessary by the government of Switzerland; & /en 11 (e) have the right to import free of duty a motor car for their personal use, acquired either in the country of their last residence or in the country of which they are nationals on the terms ruling in the home market in that country, and to re-export it free of duty, subject in either case to the conditions considered to be necessary by the government of Switzerland. ARTICLE 8 (corresponding to Article 12 of Protocol (No 7)) Officials and other servants of the Agency shall be liable to a tax for the benefit of the Union on salaries, wages and emoluments paid to them by the Agency, in accordance with the conditions and procedure laid down by Union law. They shall be exempt from Swiss federal, cantonal and communal taxes on salaries, wages and emoluments paid by the Agency. ARTICLE 9 (corresponding to Article 13 of Protocol (No 7)) In the application of income tax, wealth tax and death duties and in the application of conventions on the avoidance of double taxation concluded between Switzerland and Member States of the Union, officials and other servants of the Agency who, solely by reason of the performance of their duties in the service of the Agency, establish their residence in the territory of Switzerland for tax purposes at the time of entering the service of the Agency, shall be considered, both in Switzerland and in the country of domicile for tax purposes, as having maintained their domicile in the latter country provided that it is a Member State of the Union. This provision shall also apply to a spouse, to the extent that the latter is not separately engaged in a gainful occupation, and to children dependent on and in the care of the persons referred to in this Article. & /en 12 Movable property belonging to persons referred to in the first paragraph and situated in Switzerland shall be exempt from death duties in Switzerland; such property shall, for the assessment of such duty, be considered as being in the country of domicile for tax purposes, subject to the rights of third countries and to the possible application of provisions of international conventions on double taxation. Any domicile acquired solely by reason of the performance of duties in the service of other international organisations shall not be taken into consideration in applying the provisions of this Article. ARTICLE 10 (corresponding to Article 14 of Protocol (No 7)) Union law shall lay down the scheme of social security benefits for officials and other servants of the Union. Officials and other servants of the Agency shall therefore not be obliged to be members of the Swiss social security system provided they are already covered by the scheme of social security benefits for officials and other servants of the Union. Members of the family of staff members of the Agency forming part of their household shall be covered by the scheme of social security benefits for officials and other servants of the Union provided that they are not employed by another employer than the Agency and provided that they do not receive social security benefits from a Member State of the Union or from Switzerland. & /en 13  ARTICLE 11 (corresponding to Article 15 of Protocol (No 7)) Union law shall determine the categories of officials and other servants of the Agency to whom the provisions of Articles 7, 8, and 9 shall apply, in whole or in part. The names, grades and addresses of officials and other servants included in such categories shall be communicated periodically to Switzerland. ARTICLE 12 (corresponding to Article 17 of Protocol (No 7)) Privileges, immunities and facilities shall be accorded to officials and other servants of the Agency solely in the interests of the Agency. The Agency shall be required to waive the immunity accorded to an official or other servant wherever that Agency considers that the waiver of such immunity is not contrary to the interests of the Agency. ARTICLE 13 (corresponding to Article 18 of Protocol (No 7)) The Agency shall, for the purpose of applying this Appendix, cooperate with the responsible authorities of Switzerland or of the Member States of the Union concerned. ________________ & /en 14  ANNEX II ON THE APPLICATION OF ARTICLE 25 OF THE AGREEMENT ARTICLE 1 List of the activities of the Union agencies, information systems and other activities to which Switzerland is to contribute financially Switzerland shall contribute financially to (a) agencies: – European Centre for disease prevention and control, established by Regulation (EC) No 851/2004 (OJ EU L 142, 30.4.2004, p. 1, ELI: http://data.europa.eu/eli/reg/2004/851/oj), as applicable according to Annex I; & /en 1 (b) information systems: – the Early Warning and Response System (EWRS), established in accordance with Regulation (EU) 2022/2371 (OJ EU L 314, 6.12.2022, p. 26, ELI: http://data.europa.eu/eli/reg/2022/2371/oj), as applicable according to Annex I, unless the Swiss contribution to that information system is already covered in its entirety by the Swiss contribution to the Centre and the Programme for the Union's action in the field of health; (c) other activities: – none. ARTICLE 2 Terms of payment 1. Payments due pursuant to Article 25 of the Agreement shall be made in accordance with this Article. 2. When issuing the call for funds of the financial year, the Commission shall communicate the following information to Switzerland: (a) the amount of the operational contribution; and (b) the amount of the participation fee. & /en 2 3. The Commission shall communicate to Switzerland, as soon as possible and at the latest on 16 April of each financial year, the following information in relation to Switzerland's participation: (a) the amounts in commitment appropriations of the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question for each Union agency, taking into account for each agency any adjusted operational contribution as defined in Article 1, and the amounts in commitment appropriations in relation to the Union voted budget of the year in question for the relevant budget of the information systems and other activities, covering the participation of Switzerland in accordance with Article 1; (b) the amount of the participation fee referred to in Article 25(7) of the Agreement; and (c) as regards agencies, in year N+1, the amounts in budgetary commitments made on commitment appropriations authorised in year N on the relevant Union budget subsidy line(s) in relation to the annual Union budget inscribed on the relevant Union budget subsidy line(s) of year N. 4. On the basis of its draft budget, the Commission shall provide an estimate of information under points (a) and (b) of paragraph 3 as soon as possible, and at the latest, by 1 September of the financial year. 5. The Commission shall issue to Switzerland, at the latest on 16 April and, if applicable to the relevant agency, information system or other activity, at the earliest on 22 October and at the latest on 31 October of each financial year, a call for funds that corresponds to the contribution of Switzerland under this Agreement for each of the agencies, information systems and other activities in which Switzerland participates. & /en 3 6. The call(s) for funds referred to in paragraph 5 shall be structured in instalments as follows: (a) the first instalment of each year, in relation to the call for funds to be issued by 16 April, shall correspond to an amount up to the equivalent of the estimate of the annual financial contribution of the agency, information system or other activity in question referred to in paragraph 4; Switzerland shall pay the amount indicated in this call for funds at the latest 60 days after the call for funds is issued. (b) where applicable, the second instalment of the year, in relation to the call for funds to be issued at the earliest on 22 October and at the latest on 31 October, shall correspond to the difference between the amount referred to in paragraph 4 and the amount referred to in paragraph 5 where the amount referred to in paragraph 5 is higher. Switzerland shall pay the amount indicated in this call for funds at the latest by 21 December. For each call for funds, Switzerland may make separate payments for each agency, information system or other activity. 7. For the first year of implementation of this Agreement, the Commission shall issue a single call for funds, within 90 days of the entry into force of this Agreement. Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after the call for funds is issued. & /en 4 8. Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount as from the due date until the day on which that outstanding amount is paid in full. The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first day of the month in which the due date falls, or 0%, whichever is higher, plus 3,5 percentage points. ARTICLE 3 Adjustment of Switzerland's financial contribution to Union agencies in the light of implementation The adjustment of Switzerland's financial contribution to Union agencies shall be made in year N+1, when the initial operational contribution shall be adjusted upwards or downwards by the difference between the initial operational contribution and an adjusted contribution calculated by applying the contribution key of year N to the amount of budgetary commitments made on commitment appropriations authorised in year N under the relevant Union subsidy budget line(s). Where applicable, the difference shall take into account for each agency the percentage-based adjusted operational contribution as defined in Article 1. & /en 5  ARTICLE 4 Transitional arrangements In the event that the date of entry into force of this Agreement is not 1 January, this Article shall apply by way of derogation from Article 2. For the first year of implementation of this Agreement, in relation to the operational contribution due for the year in question applicable to the relevant agency, information system or other activity, as established in accordance with Article 25 of the Agreement and Articles 1 to 3 of this Annex, the operational contribution shall be reduced on a pro rata temporis basis by multiplying the amount of the annual operational contribution due to the ratio of the following: (a) the number of calendar days from the date of entry into force of this Agreement until the 31 December of the year in question; and (b) the total number of calendar days of the year in question. ________________ & /en 6  PROTOCOL ON THE ARBITRAL TRIBUNAL CHAPTER I PRELIMINARY PROVISIONS ARTICLE I.1 Scope If one of the Contracting Parties (hereinafter referred to as "parties") submits a dispute for arbitration in accordance with Articles 15(2) or 16(2) of the Agreement, the rules set out in this Protocol shall apply. ARTICLE I.2 Registry and secretarial services The International Bureau of the Permanent Court of Arbitration at the Hague (hereinafter referred to as "International Bureau") shall fulfil the functions of registry and provide the necessary secretarial services. & /en 1  ARTICLE I.3 Notices and calculation of time limits 1. Notices, including communications or proposals, may be sent by any means of communication that certifies their transmission, or enables them to be certified. 2. Such notices may be sent electronically, only if an address has been designated or authorised by a party specifically for this purpose. 3. Such notices served on the parties shall be sent, for Switzerland, to Switzerland's Europe Division of the Federal Department of Foreign Affairs and, for the Union, to the Commission's Legal Service. 4. Any time limit laid down in this Protocol shall run from the day after an event occurs or an action takes place. If the last day for delivery of a document falls on a non-working day of the institutions of the Union or of the government of Switzerland, the time period for the delivery of the document shall end on the first following working day. Non-working days that fall within the time period shall be counted. ARTICLE I.4 Notice of arbitration 1. The party taking the initiative to use arbitration (the "applicant") shall send to the other party (the "defendant") and to the International Bureau a notice of arbitration. & /en 2 2. Arbitration proceedings shall be deemed to commence on the day after that on which the notice of arbitration is received by the defendant. 3. The notice of arbitration shall include the following information: (a) the demand that the dispute be referred to arbitration; (b) the names and contact details of the parties; (c) the name and address of the applicant's agent(s); (d) the legal basis of the proceedings (Article 15(2) or Article 16(2) of the Agreement and: (i) in the cases referred to in Article 15(2) of the Agreement, the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 15(1) of the Agreement; and (ii) in the cases referred to in Article 16(2) of the Agreement, the decision of the arbitral tribunal, any implementation measures mentioned in Article 15(5) of the Agreement and the disputed compensatory measures; (e) the designation of any rule causing the dispute or related to it; (f) a brief description of the dispute; and (g) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. & /en 3 4. In the cases referred to in Article 15(3) of the Agreement, the notice of arbitration may also contain information concerning the need for a referral to the Court of Justice of the European Union. 5. Any claims on the sufficiency of the notice of arbitration shall not prevent the constitution of the arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. ARTICLE I.5 Response to the notice of arbitration 1. Within 60 days of receiving the notice of arbitration, the defendant shall send a response to the notice of arbitration to the applicant and the International Bureau, which shall include the following information: (a) the names and contact details of the parties; (b) the name and address of the defendant's agent(s); (c) a response to the information given in the notice of arbitration in accordance with points (d) to (f) of Article I.4(3); and (d) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. & /en 4 2. In the cases referred to in Article 15(3) of the Agreement, the response to the notice of arbitration may also contain a response to the information given in the notice of arbitration in accordance with Article I.4(4) of this Protocol and information concerning the need for a referral to the Court of Justice of the European Union. 3. The lack of, or an incomplete or late, response from the defendant to the notice of arbitration shall not prevent the constitution of an arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. 4. If the defendant requests that the arbitral tribunal consist of five arbitrators in its response to the notice of arbitration, the applicant shall designate an additional arbitrator within 30 days of receipt of the response to the notice of arbitration. ARTICLE I.6 Representation and assistance 1. The parties shall be represented before the arbitral tribunal by one or more agents. The agents may be assisted by advisers or lawyers. 2. Any change to the agents or their addresses shall be notified to the other party, the International Bureau and the arbitral tribunal. The arbitral tribunal may, at any time, on its own initiative or at the request of a party, request evidence of the powers conferred on the agents of the parties. & /en 5  CHAPTER II COMPOSITION OF THE ARBITRAL TRIBUNAL ARTICLE II.1 Number of arbitrators The arbitral tribunal shall be composed of three arbitrators. If the applicant in its notice of arbitration or the defendant in its response to the notice of arbitration so request, the arbitral tribunal shall be composed of five arbitrators. ARTICLE II.2 Appointment of arbitrators 1. If three arbitrators are to be appointed, each of the parties shall designate one of them. The two arbitrators appointed by the parties shall select the third arbitrator, who shall be the chair of the arbitral tribunal. 2. If five arbitrators are to be appointed, each of the parties shall designate two of them. The four arbitrators appointed by the parties shall select the fifth arbitrator, who shall be the chair of the arbitral tribunal. & /en 6 3. If, within 30 days of the designation of the last arbitrator appointed by the parties, the arbitrators have not reached agreement on the selection of the chair of the arbitral tribunal, the chair shall be appointed by the Secretary-General of the Permanent Court of Arbitration. 4. To assist in the selection of arbitrators to compose the arbitral tribunal, an indicative list of persons possessing the qualifications referred to in paragraph 6, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as this Agreement, the Agreement between the European Community and the Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999 (hereinafter referred to as "Agreement on trade in agricultural products") and the Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union, done at […] on […] (hereinafter referred to as "Agreement on Switzerland's regular financial contribution"), shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of this Agreement. 5. Where a party fails to designate an arbitrator, the Secretary-General of the Permanent Court of Arbitration shall appoint that arbitrator from the list referred to in paragraph 4. In the absence of such a list, the arbitrator shall be appointed by lot by the Secretary-General of the Permanent Court of Arbitration from the individuals who have been formally proposed by one party or both parties for the purposes of paragraph 4. & /en 7 6. The persons constituting the arbitral tribunal shall be highly qualified persons, with or without ties to the parties, whose independence and lack of conflicts of interest is guaranteed, along with a wide range of experience. In particular, they shall have demonstrated expertise in law and the matters covered by this Agreement; they shall not take instructions from either party; and they shall serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute. The chair of the arbitral tribunal shall also have experience in dispute settlement procedures. ARTICLE II.3 Arbitrators' declarations 1. When a person is being considered for appointment as an arbitrator, that person shall report all circumstances likely to give rise to legitimate doubts as to his or her impartiality or independence. From the appointment and throughout the entire arbitration proceedings, an arbitrator shall report such circumstances to the parties and to the other arbitrators without delay, if the arbitrator has not already done so. 2. Any arbitrator may be dismissed if circumstances exist that could give rise to legitimate doubts about his or her impartiality or independence. 3. A party may only request the dismissal of an arbitrator that it has appointed for a reason that becomes known to it after that appointment. & /en 8 4. If an arbitrator fails to act or if it is impossible de jure or de facto for an arbitrator to fulfil his or her role, the procedure for the dismissal of arbitrators laid down in Article II.4 shall apply. ARTICLE II.4 Dismissal of arbitrators 1. Any party wishing to dismiss an arbitrator shall make a request for dismissal within 30 days of the date on which it is notified of the appointment of that arbitrator or within 30 days of the date on which it becomes aware of the circumstances referred to in Article II.3. 2. The request for dismissal shall be sent to the other party, to the dismissed arbitrator, to the other arbitrators and to the International Bureau. It shall set out the reasons for the request for dismissal. 3. When a request for dismissal has been made, the other party may accept the request for dismissal. The arbitrator in question may also step aside. The acceptance or stepping aside does not imply acknowledgement of the reasons for the request for dismissal. 4. If, within 15 days of the date of the notification of the request for dismissal, the other party does not accept the request for dismissal or the arbitrator in question does not step aside, the party requesting the dismissal may ask the Secretary-General of the Permanent Court of Arbitration to take a decision on the dismissal. & /en 9 5. Unless the parties agree otherwise, the decision referred to in paragraph 4 shall indicate the reasons for that decision. ARTICLE II.5 Replacement of an arbitrator 1. Subject to paragraph 2 of this Article, if it is necessary to replace an arbitrator during the arbitration proceedings, a replacement shall be appointed or selected in accordance with the procedure laid down in Article II.2 applicable to the appointment or selection of the arbitrator to be replaced. That procedure shall apply even if one party had not exercised its right to appoint or to participate in the appointment of the arbitrator to be replaced. 2. In the event of replacement of an arbitrator, the procedure shall resume at the stage where the replaced arbitrator ceased to perform his or her functions, unless the arbitral tribunal decides otherwise. ARTICLE II.6 Exclusion of liability Except in cases of intentional wrongdoing or gross negligence, the parties renounce, to the maximum extent permitted by the applicable law, any action against the arbitrators for any act or omission related to the arbitration. & /en 10  CHAPTER III ARBITRATION PROCEEDINGS ARTICLE III.1 General provisions 1. The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator has accepted his or her appointment. 2. The arbitral tribunal shall ensure that the parties are treated equally and that, at an appropriate stage of the proceedings, each of them has sufficient possibility to assert their rights and present their case. The arbitral tribunal shall conduct the proceedings in such a way as to avoid delays and unnecessary expenditure and to ensure the dispute between the parties is settled. 3. A hearing shall be organised, unless the arbitral tribunal decides otherwise, having heard the parties. 4. When a party sends a communication to the arbitral tribunal, it shall do so through the International Bureau and shall send a copy to the other party at the same time. The International Bureau shall send a copy of that communication to each of the arbitrators. & /en 11  ARTICLE III.2 Place of arbitration The place of arbitration is The Hague. The arbitral tribunal may, if exceptional circumstances so require, meet at any other place that it considers appropriate for its deliberations. ARTICLE III.3 Language 1. The languages of the proceedings shall be French and English. 2. The arbitral tribunal may order all documents enclosed with the statement of claim or the statement of defence and all further documents produced during the proceedings, submitted in their original language, to be accompanied by a translation in one of the languages of the proceedings. & /en 12  ARTICLE III.4 Statement of claim 1. The applicant shall send its statement of claim in writing to the defendant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The applicant may decide to deem its notice of arbitration referred to in Article I.4 a statement of claim, provided that it also meets the conditions in paragraphs 2 and 3 of this Article. 2. The statement of claim shall include the following information: (a) the information set out in points (b) to (f) of Article I.4(3); (b) a statement of facts submitted in support of the claim; and (c) the legal arguments put forward in support of the claim. 3. The statement of claim shall, as far as possible, be accompanied by any documents and other evidence mentioned by the applicant or should refer to them. In the cases referred to in Article 15(3) of the Agreement, the statement of claim shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. & /en 13  ARTICLE III.5 Statement of defence 1. The defendant shall send the statement of defence in writing to the applicant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The defendant may decide to deem the response to the notice of arbitration referred to in Article I.5 a statement of defence, provided that the response to the notice of arbitration also meets the conditions in paragraph 2 of this Article. 2. The statement of defence shall respond to the points in the statement of claim indicated in accordance with points (a) to (c) of Article III.4(2), of this Protocol. It shall, as far as possible, be accompanied by any documents and other evidence mentioned by the defendant or should refer to them. In the cases referred to in Article 15(3) of the Agreement, the statement of defence shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. 3. In the statement of defence, or at a later stage in the arbitration proceedings if the arbitral tribunal decides that a delay is justified by circumstances, the defendant may make a counterclaim provided that the arbitral tribunal has jurisdiction in respect of it. 4. Article III.4(2) and (3) shall apply to a counterclaim. & /en 14  ARTICLE III.6 Arbitral jurisdiction 1. The arbitral tribunal shall rule on whether it has jurisdiction on the basis of Articles 15(2) or 16(2) of the Agreement. 2. In the cases referred to in Article 15(2) of the Agreement, the arbitral tribunal shall have a mandate to examine the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 15(1) of the Agreement. 3. In the cases referred to in Article 16(2) of the Agreement, the arbitral tribunal that heard the main case shall have a mandate to examine the proportionality of the disputed compensatory measures, including where those measures have in whole or in part been taken in accordance with Articles 19(1)(c) and 20(4) of the Agreement on Switzerland's participation in Union Programmes, as regards Switzerland's participation in the Programme for the Union's action in the field of health. 4. A preliminary objection of lack of jurisdiction of the arbitral tribunal shall be made at the latest in the statement of defence or, in the case of a counterclaim, in the reply. The fact that a party has appointed an arbitrator or has taken part in their appointment shall not deprive it of the right to make such a preliminary objection. The preliminary objection that the dispute would exceed the arbitral tribunal's powers shall be made as soon as the question alleged to exceed its powers is raised during the arbitration proceedings. In any event, the arbitral tribunal may allow a preliminary objection made after the time limit laid down has elapsed if it believes that the delay was for a valid reason. & /en 15 5. The arbitral tribunal may rule on the preliminary objection referred to in paragraph 4 either by treating it as a preliminary question or in the decision on the substance of the case. ARTICLE III.7 Other written submissions The arbitral tribunal shall, after having consulted the parties, decide what other written submissions, in addition to the statement of claim and statement of defence, the parties shall or may submit and shall set the time limit for their submission. ARTICLE III.8 Time limits 1. The time limits set by the arbitral tribunal for the communication of the written documents, including the statement of claim and the statement of defence, shall not exceed 90 days, unless the parties agree otherwise. 2. The arbitral tribunal shall take its final decision within 12 months of the date of its establishment. In exceptional circumstances of particular difficulty, the arbitral tribunal may extend that period by up to three additional months. & /en 16 3. The time limits laid down in paragraphs 1 and 2 shall be halved: (a) upon request by the applicant or the defendant, if within 30 days of that request, the arbitral tribunal rules, after hearing the other party, that the case is urgent; or (b) if the parties so agree. 4. In the cases referred to in Article 16(2) of the Agreement, the arbitral tribunal shall take its final decision within six months of the date on which the compensatory measures have been notified in accordance with Article 16(1) of the Agreement. ARTICLE III.9 Referrals to the Court of Justice of the European Union 1. In application of Article 12 and Article 15(3) of the Agreement, the arbitral tribunal shall make a referral to the Court of Justice of the European Union. 2. The arbitral tribunal may make a referral to the Court of Justice of the European Union at any time in the proceedings, provided that the arbitral tribunal is able to define precisely enough the legal and factual background of the case, and the legal questions it raises. The proceedings before the arbitral tribunal shall be suspended until the Court of Justice of the European Union has delivered its ruling. & /en 17 3. Each party may send a reasoned request to the arbitral tribunal to make a referral to the Court of Justice of the European Union. The arbitral tribunal shall reject such a request if it considers the conditions for a referral to the Court of Justice of the European Union referred to in paragraph 1 not to be met. If the arbitral tribunal rejects a party's request for a referral to the Court of Justice of the European Union, it shall give reasons for its decision in the decision on the substance of the case. 4. The arbitral tribunal shall make a referral to the Court of Justice of the European Union by means of a notice. The notice shall contain at least the following information: (a) a brief description of the dispute; (b) the legal act(s) of the Union and/or the provision(s) of this Agreement at issue; and (c) the concept of Union law to be interpreted in accordance with Article 12(2) of the Agreement. The arbitral tribunal shall give notice of the referral to the Court of Justice of the European Union to the parties. 5. The Court of Justice of the European Union shall apply, by analogy, the internal rules of procedure applicable to the exercise of its jurisdiction to make a preliminary ruling on the interpretation of the Treaties and acts made by the Union's institutions, bodies, offices and agencies. 6. The agents and lawyers authorised to represent the parties before the arbitral tribunal pursuant to Articles I.4, I.5, III.4 and III.5 shall be authorised to represent the parties before the Court of Justice of the European Union. & /en 18  ARTICLE III.10 Interim measures 1. In the cases referred to in Article 16(2) of the Agreement, either party may, at any stage of the arbitration procedure, apply for interim measures consisting of the suspension of the compensatory measures. 2. An application pursuant to paragraph 1 shall state the subject-matter of the proceedings, the circumstances giving rise to urgency and the pleas of fact and law establishing a prima facie case for the interim measures applied for. It shall contain all the evidence and offers of evidence available to justify the grant of the interim measures. 3. The party requesting the interim measures shall send its application in writing to the other party and to the arbitral tribunal through the International Bureau. The arbitral tribunal shall set a short time limit within which that other party may submit written or oral observations. 4. The arbitral tribunal shall, within one month of the submission of the application referred to in paragraph 1, adopt a decision on the suspension of the contested compensatory measures if the following conditions are met: (a) the arbitral tribunal is prima facie satisfied of the merit of the case submitted by the party requesting the interim measures in its application; & /en 19 (b) the arbitral tribunal considers that, pending its final decision, the party requesting the interim measures would suffer serious and irreparable harm absent the suspension of the compensatory measures; and (c) the harm caused to the party requesting the interim measures by the immediate application of the contested compensatory measures outweighs the interest in the immediate and effective application of those measures. 5. The suspension of proceedings referred to in the second subparagraph of Article III.9(2) shall not apply in proceedings pursuant to this Article. 6. A decision taken by the arbitral tribunal in accordance with paragraph 4 shall have only an interim effect and shall be without prejudice to the decision of the arbitral tribunal on the substance of the case. 7. Unless the decision taken by the arbitral tribunal in accordance with paragraph 4 of this Article sets an earlier date for the end of the suspension, the suspension shall lapse when the final decision pursuant to Article 16(2) of the Agreement is taken. 8. For the avoidance of doubt, for the purposes of this Article, it is understood that, in considering the respective interests of the party requesting the interim measures and the other party, the arbitral tribunal shall take into account those of the individuals and economic operators of the parties, but that consideration shall not amount to granting any standing to such individuals or economic operators before the arbitral tribunal. & /en 20  ARTICLE III.11 Evidence 1. Each party shall provide evidence of the facts forming the grounds of its claim or its defence. 2. On request of a party, or on its own initiative, the arbitral tribunal may seek from the parties relevant information it considers necessary and appropriate. The arbitral tribunal shall set a time limit for the parties to respond to its request. 3. On request of a party, or on its own initiative, the arbitral tribunal may seek from any source any information it considers appropriate. The arbitral tribunal may also seek the opinion of experts as it considers appropriate and subject to any terms and conditions agreed by the parties, where applicable. 4. Any information obtained by the arbitral tribunal under this Article shall be made available to the parties, and the parties may submit comments on that information to the arbitral tribunal. 5. After seeking the views of the other party, the arbitral tribunal shall adopt appropriate measures to address any questions raised by a party with regard to the protection of personal data, professional secrecy and the legitimate interests of confidentiality. 6. The arbitral tribunal shall be the judge of the admissibility, relevance and strength of the evidence submitted. & /en 21  ARTICLE III.12 Hearings 1. When a hearing must take place, the arbitral tribunal, having consulted the parties, shall notify the parties sufficiently far in advance of the date, time and place of the hearing. 2. The hearing shall be public, unless the arbitral tribunal, of its own motion or on application by the parties, decides otherwise for serious reasons. 3. Minutes of each hearing shall be drawn up and signed by the chair of the arbitral tribunal. Only those minutes shall be authentic. 4. The arbitral tribunal may decide to hold the hearing virtually in accordance with the practice of the International Bureau. The parties shall be informed of this practice in a timely manner. In such cases, paragraph 1, mutatis mutandis, and paragraph 3 shall apply. ARTICLE III.13 Default 1. If, within the time limit set by this Protocol or by the arbitral tribunal, without showing sufficient cause, the applicant has not submitted its statement of claim, the arbitral tribunal shall order the closure of the arbitration proceedings, unless there are outstanding questions on which a ruling may be necessary and if the arbitral tribunal considers it appropriate to do so. & /en 22 If, within the time limit set by this Protocol or by the arbitral tribunal, without showing sufficient cause, the defendant has not submitted its response to the notice of arbitration or its statement of defence, the arbitral tribunal shall order the continuation of the proceedings, without considering that default of itself to constitute acceptance of the applicant's allegations. The second subparagraph also applies where the applicant fails to submit a reply to a counterclaim. 2. If a party, duly convened in accordance with Article III.12(1), does not appear at a hearing and does not demonstrate sufficient cause for its failure to do so, the arbitral tribunal may continue the arbitration. 3. If a party, duly invited by the arbitral tribunal to produce further evidence, fails to do so within the time limits set without showing sufficient cause for its failure to do so, the arbitral tribunal may rule on the basis of the evidence it has available. ARTICLE III.14 Closure of the procedure 1. Where it is demonstrated that the parties have reasonably had the possibility of presenting their arguments, the arbitral tribunal may declare the closure of the proceedings. 2. The arbitral tribunal may, if it considers it necessary because of exceptional circumstances, decide on its own initiative or at the request of a party to reopen the proceedings at any time before it has taken of its decision. & /en 23  CHAPTER IV DECISION ARTICLE IV.1 Decisions The arbitral tribunal shall strive to take its decisions by consensus. If, however, it proves impossible to take a decision by consensus, the arbitral tribunal's decision shall be taken by a majority of the arbitrators. ARTICLE IV.2 Form and effect of the decision of the arbitral tribunal 1. The arbitral tribunal may take separate decisions on different questions at different times. 2. All decisions shall be issued in writing and shall state the reasons on which they are based. They shall be final and binding on the parties. 3. The decision of the arbitral tribunal shall be signed by the arbitrators, shall contain the date on which it was taken and state the place of arbitration. A copy of the decision signed by the arbitrators shall be communicated to the parties by the International Bureau. & /en 24 4. The International Bureau shall make the decision of the arbitral tribunal public. When making the decision of the arbitral tribunal public, the International Bureau shall respect the relevant rules on the protection of personal data, professional secrecy and the legitimate interests of confidentiality. The rules referred to in the second subparagraph shall be identical for all bilateral agreements in the fields of the internal market in which Switzerland participates, as well as for this Agreement, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution. The Joint Committee shall adopt and update those rules by a decision for the purposes of this Agreement. 5. The parties shall comply with all decisions of the arbitral tribunal without delay. 6. In the cases referred to in Article 15(2) of the Agreement, having obtained the opinion of the parties, the arbitral tribunal shall set a reasonable time limit in the decision on the substance of the case to comply with its decision in accordance with Article 15(5) of the Agreement taking account of the parties' internal procedures. ARTICLE IV.3 Applicable law, rules of interpretation, mediator 1. The applicable law consists of this Agreement, the legal acts of the Union to which reference is made therein, as well as any other rule of international law relevant to the application of those instruments. & /en 25 2. The arbitral tribunal shall decide in accordance with the rules of interpretation referred to in Article 12 of the Agreement. 3. The arbitral tribunal shall not be permitted to decide as mediator or ex aequo et bono. ARTICLE IV.4 Mutually agreed solution or other reasons for closure of the proceedings 1. The parties may, at any time, mutually agree a solution to their dispute. They shall jointly communicate any such solution to the arbitral tribunal. If the solution requires approval pursuant to the relevant domestic procedures of either party, the notification shall refer to that requirement, and the arbitration procedure shall be suspended. If such approval is not required, or upon notification of the completion of any such domestic procedures, the arbitration procedure shall be closed. 2. If, in the course of proceedings, the applicant informs the arbitral tribunal in writing that it does not wish to further pursue the proceedings, and if, at the date on which that communication is received by the arbitral tribunal, the defendant has not yet taken any step in the proceedings, the arbitral tribunal shall issue an order officially recording the closure of the proceedings. The arbitral tribunal shall decide on the costs, which shall be borne by the applicant, if this appears justified by the conduct of that party. & /en 26 3. If, before the decision of the arbitral tribunal is taken, the arbitral tribunal concludes that the continuation of the proceedings has become pointless or impossible for any reason other than those referred to in paragraphs 1 and 2, the arbitral tribunal shall inform the parties of its intention to issue an order closing the proceedings. The first subparagraph does not apply where there are outstanding questions on which it may be necessary to rule and if the arbitral tribunal judges it appropriate to do so. 4. The arbitral tribunal shall communicate to the parties a copy of the order closing the arbitration proceedings or of the decision taken by agreement between the parties, signed by the arbitrators. Article IV.2(2) to (5) shall apply to arbitration decisions taken by agreement between the parties. ARTICLE IV.5 Correction of the decision of the arbitral tribunal 1. Within 30 days of receiving the decision of the arbitral tribunal, a party may, by giving notice to the other party and to the arbitral tribunal through the International Bureau, ask the arbitral tribunal to correct in the text of the decision of the arbitral tribunal any errors in computation, any clerical or typographical errors, or any errors or omissions of a similar nature. If it considers the request to be justified, the arbitral tribunal shall make the correction within 45 days of receiving the request. The request shall not have a suspensive effect on the time limit provided for in Article IV.2(6). & /en 27 2. The arbitral tribunal may, within 30 days of communicating its decision, make the corrections referred to in paragraph 1 on its own initiative. 3. The corrections referred to in paragraph 1 of this Article shall be done in writing and form an integral part of the decision. Article IV.2(2) to (5) shall apply. ARTICLE IV.6 Arbitrators' fees 1. The fees referred to in Article IV.7 shall be reasonable, taking account of the complexity of the case, the time spent on it by the arbitrators and all other relevant circumstances. 2. A list of daily compensation and maximum and minimum hours, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates, as well as this Agreement, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution, shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of this Agreement. ARTICLE IV.7 Costs 1. Each party shall bear its own costs and half of the costs of the arbitral tribunal. & /en 28 2. The arbitral tribunal shall set its costs in its decision on the substance of the case. Those costs shall include only: (a) the arbitrators' fees, to be stated separately for each arbitrator and to be set by the arbitral tribunal itself in accordance with Article IV.6; (b) the travel and other expenses incurred by the arbitrators; and (c) the fees and expenses of the International Bureau. 3. The costs referred to in paragraph 2 shall be reasonable, taking account of the amount in dispute, the complexity of the dispute, the time that the arbitrators and any experts appointed by the arbitral tribunal have spent on it and any other relevant circumstances. ARTICLE IV.8 Deposit of costs 1. At the start of the arbitration, the International Bureau may ask the parties to deposit an equal amount as an advance for the costs referred to in Article IV.7(2). 2. During the arbitration proceedings, the International Bureau may request from the parties deposits supplementary to those referred to in paragraph 1. & /en 29 3. All amounts deposited by the parties in application of this Article shall be paid to the International Bureau and paid out by it to cover the costs actually incurred, including, in particular, the fees paid to the arbitrators and to the International Bureau. CHAPTER V FINAL PROVISIONS ARTICLE V.1 Amendments The Joint Committee may adopt, by decision, amendments to this Protocol. & /en 30 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 8 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  AGREEMENT BETWEEN THE EUROPEAN UNION AND THE SWISS CONFEDERATION ON SWITZERLAND'S REGULAR FINANCIAL CONTRIBUTION TOWARDS REDUCING ECONOMIC AND SOCIAL DISPARITIES IN THE EUROPEAN UNION & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", hereinafter referred to as the "Contracting Parties"; CONSIDERING the close links between the Contracting Parties; CONSIDERING the broad bilateral package between the Contracting Parties aimed at stabilising and developing their bilateral relations, including Switzerland's participation in the internal market; CONSIDERING in that context the importance of actions contributing to reducing the economic and social disparities in the Union, which should be aimed at encouraging the continuous and balanced strengthening of economic and social relations between the Union and its Member States and Switzerland while responding to important common challenges; CONSIDERING that the cooperation between Switzerland and partner States in the context of Switzerland's regular financial contribution is founded on, and guided by, common values, principles of good governance and a common commitment to zero tolerance towards corruption; HAVE AGREED AS FOLLOWS: & /en 1  PART I GENERAL PROVISIONS ARTICLE 1 Objectives In the context of the broad bilateral package of agreements, the Contracting Parties share the overall objective of contributing to the reduction of economic and social disparities in the Union. Accordingly, Switzerland's regular financial contribution shall be aimed at encouraging the continuous and balanced strengthening of economic and social relations between the Union and its Member States and Switzerland while responding to important common challenges. ARTICLE 2 Subject matter 1. This Agreement establishes the basis for Switzerland's regular financial contribution towards the objectives laid down in Article 1. 2. Switzerland's regular financial contribution shall complement the Union's and its Member States' measures in the area of cohesion and their response to important common challenges. & /en 2  ARTICLE 3 Definitions For the purposes of this Agreement, the following definitions apply: (a) "List of Agreements" means the following agreements: (i) Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, done at Luxembourg on 21 June 1999; (ii) Agreement between the European Community and the Swiss Confederation on air transport, done at Luxembourg on 21 June 1999; (iii) Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road, done at Luxembourg on 21 June 1999; (iv) Agreement between the European Community and the Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999; (v) Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment, done at Luxembourg on 21 June 1999; & /en 3  (vi) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other, on the participation of the Swiss Confederation in Union Programmes, done at […] on […]; (vii) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for Space Programmes, done at […] on […]; (viii) Agreement between the European Union and the Swiss Confederation on Electricity, done at […] on […]; (ix) Agreement between the European Union and the Swiss Confederation on Health, done at […] on […]; and (x) Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area, done at […] on […]; (b) "contribution period" means the timeframe to which a given financial contribution by Switzerland is attributed; (c) "implementation period" means the timeframe during which a given financial contribution by Switzerland has to be implemented and the funds disbursed; each implementation period shall last at least ten years; (d) "Partner State" means a Member State of the Union that is benefitting from Switzerland's regular financial contribution in a given contribution period; & /en 4 (e) "Partner States in the area of cohesion" means Member States of the Union with a gross national income (hereinafter referred to as "GNI") per capita, measured in purchasing power standards, of less than 90 % of the Union's average GNI per capita in purchasing power standards for the same reference period. The reference period for the data to be used shall be the same as that used to determine the eligibility of Member States of the Union under the Cohesion Fund of the Union in force on the start date of the relevant contribution period; (f) "support measure" means a programme or project carried out with the support of a given financial contribution by Switzerland. ARTICLE 4 Framework governing Switzerland's regular financial contribution 1. Switzerland's regular financial contribution shall be structured on the basis of consecutive contribution periods. Each contribution period shall begin two years after the start of the period covered by the Union's multiannual financial framework (hereinafter referred to as "MFF"). It shall run for a period equal to the number of years covered by the MFF to which it relates. 2. For each contribution period, the following shall apply: (a) Switzerland undertakes to provide a financial contribution determined on the basis of Annex I. & /en 5 (b) In order to fulfil the commitment undertaken pursuant to point (a), the Contracting Parties shall conclude a legally non-binding memorandum of understanding (hereinafter referred to as "MoU") at the latest 12 months before the end of the ongoing contribution period. To this end, the Joint Committee, shall start discussions at the latest 36 months before the end of that contribution period. Each MoU shall specify the following elements: (i) the amount of the given financial contribution by Switzerland determined on the basis of paragraph 1 of Annex I; (ii) country-specific allocations of funds in the area of cohesion pursuant to Appendix 2 of Annex I; (iii) the thematic areas for the given financial contribution by Switzerland in the area of cohesion; (iv) where a share of a given financial contribution by Switzerland is foreseen to respond to other important common challenges; the identified important common challenges; their respective thematic areas; the criteria for the selection of Partner States affected by the identified common challenges; and the breakdown between the funds allocated to the area of cohesion and the funds allocated to the identified common challenges, pursuant to paragraph 2 of Annex I; & /en 6  (v) a general description of the intended content of the country-specific agreements between Switzerland and the Partner States (hereinafter referred to as "country-specific agreements"); (vi) the duration of the implementation period pursuant to point (c) of Article 3. (c) If the MoU is not concluded within the timeframe referred to in the first sentence of point (b), Article 16 shall apply. In the event that the dispute is submitted to the arbitral tribunal in accordance with Article 16(2), the arbitral tribunal shall verify whether the Contracting Parties acted in good faith during the discussions referred to in point (b) in order to fulfil the commitment pursuant to point (a). ARTICLE 5 Country-specific agreements and further support measures 1. In accordance with point (a) of Article 4(2) and Part II, and in line with the elements set out in the MoU, Switzerland shall conclude country-specific agreements with the Partner States and, if applicable, prepare further support measures under its management or in the form of contributions to relevant funding instruments. 2. The country-specific agreements shall take into consideration the Union policies and national strategic frameworks for Union cohesion policy investments approved by the European Commission (hereinafter referred to as "Commission"). & /en 7 3. The country-specific agreements shall set out, in particular: the distribution of funds among thematic areas; support measures; the structures for management and control; applicable conditions; and competent authorities in the Partner State concerned. They shall also include specific rules concerning the procedure and the measures referred to in Article 13(5). 4. For each contribution period, the country-specific allocations in the area of cohesion shall be formally committed to the Partner States upon the conclusion of the respective country-specific agreements, at the latest, two years after the beginning of the contribution period to which they relate. 5. Where a share of a given financial contribution by Switzerland is foreseen to respond to other important common challenges, the country-specific allocations in the area of the identified common challenges shall be formally committed to the Partner States upon the conclusion of the respective country-specific agreements, at the latest, five years after the beginning of the contribution period to which they relate. 6. If the country-specific agreements referred to in paragraphs 4 and 5 are not concluded within the timeframes referred to therein, Article 16 shall apply. In the event that the dispute is submitted to the arbitral tribunal in accordance with Article 16(2), the arbitral tribunal shall verify whether Switzerland and the respective Partner State acted in good faith during the negotiation of the country-specific agreement. 7. Funds of a given financial contribution by Switzerland may be used only until the end of the respective implementation period. & /en 8  ARTICLE 6 Communication between Switzerland and the Commission 1. Switzerland shall inform the Commission about the country-specific agreements referred to in Article 5(1) within one month of their publication in the Official Compendium of Swiss Federal Law. 2. Switzerland and the Commission shall communicate at technical level with each other on a yearly basis, or whenever the need arises, as regards the implementation of Switzerland's regular financial contribution. ARTICLE 7 Co-financing rates With respect to support measures for which the Partner States have implementation responsibility, Switzerland's co-financing rates for its regular financial contribution shall be the same as the Union co-financing rates under the Union's cohesion policy instruments and other relevant instruments, unless Switzerland and the Partner State concerned agree otherwise. & /en 9  ARTICLE 8 State aid and public procurement The implementation of support measures shall comply with the applicable rules on state aid and public procurement. ARTICLE 9 Liability The responsibility of Switzerland is limited to providing funds according to the country-specific agreements and further support measures. Accordingly, Switzerland does not assume any liability to third parties. ARTICLE 10 Changes in the membership of the Union 1. In the event of a change in the membership of the Union involving a State whose GNI per capita, measured in purchasing power standards, is less than 90 % of the Union's average GNI per capita in purchasing power standards, Switzerland's financial contribution shall be adjusted proportionally as from the date on which the change of the membership takes effect. & /en 10 The reference period for the data to be used shall be the same as that used for the Cohesion Fund of the Union in force on the start date of the respective contribution period, or, if not available, the latest three-year period for which data are available. 2. The amount of the adjustment referred to in paragraph 1 shall be determined by the Contracting Parties. PART II IMPLEMENTATION AND MANAGEMENT OF THE FUNDS ARTICLE 11 Common values The implementation of Switzerland's regular financial contribution shall be based on the common values of respect for human rights, democracy, the rule of law, human dignity and equality. ARTICLE 12 Management of Switzerland's regular financial contribution 1. Switzerland shall be responsible for the overall management of its regular financial contribution. & /en 11 2. Switzerland's management costs shall be covered by the total amount of a given financial contribution laid down in the MoU referred to in point (b) of Article 4(2). ARTICLE 13 Principles for implementation 1. The country-specific agreements shall be negotiated and implemented in a spirit of equal partnership between the Partner States and Switzerland. 2. The implementation of the agreed support measures shall be the responsibility of the Partner States, which shall provide for appropriate management and control systems in order to ensure sound implementation and management. 3. Without prejudice to paragraph 2, support measures directly implemented by Switzerland shall be the responsibility of Switzerland, which shall provide for appropriate management and control systems in order to ensure sound implementation and management. 4. The implementation of the support measures shall comply with the common values referred to in Article 11 and the principles of good governance and sound financial management, and shall ensure transparency, non-discrimination, efficiency, and accountability. It shall be based on the common commitment of Switzerland and the Partner States to fight all forms of corruption in the implementation of Switzerland's financial contribution and provide for effective measures and procedures to prevent, identify, and address any acts which jeopardise the proper use of funds, taking into account the risks identified. & /en 12 5. In the event of a violation of an obligation set out in paragraph 4 which affects or risks affecting the sound implementation of a specific support measure, Switzerland may, following an assessment and a procedure that guarantees the effective right of the Partner State to be heard, take appropriate, proportionate, and effective measures regarding the specific support measure concerned. 6. Switzerland may carry out controls according to its internal requirements. The Partner States shall provide all necessary assistance, information, and documentation to that end. 7. When carrying out audits, the Swiss audit authorities shall take due account of the principles of single audit and proportionality in relation to the level of risk, in order to avoid duplication of audits and management verifications of the same expenditure, with the objective of minimising the cost of management verifications and audits, and the administrative burden on beneficiaries. PART III INSTITUTIONAL PROVISIONS ARTICLE 14 Joint Committee 1. A Joint Committee is hereby established. The Joint Committee shall be composed of representatives of the Contracting Parties. & /en 13 2. The Joint Committee shall be co-chaired by a representative of the Union and a representative of Switzerland. 3. The Joint Committee shall: (a) ensure the proper functioning and the effective administration and application of this Agreement; (b) provide a forum for mutual consultation and a continuous exchange of information between the Contracting Parties, in particular with a view to finding a solution to any difficulty of interpretation or application of this Agreement in accordance with Article 16; (c) make recommendations to the Contracting Parties in matters pertaining to this Agreement; (d) adopt decisions where provided for in this Agreement; and (e) exercise any other competence granted to it in this Agreement. 4. The Joint Committee shall act by consensus. Decisions shall be binding on the Contracting Parties, which shall take all necessary measures to implement them. 5. The Joint Committee shall meet at least once a year, in Brussels and Bern alternately, unless the co-chairs decide otherwise. It shall also meet at the request of either Contracting Party. The co-chairs may agree that a meeting of the Joint Committee be held by videoconference or teleconference. & /en 14 6. The Joint Committee shall adopt its rules of procedure at its first meeting. 7. The Joint Committee may decide to set up any working party or group of experts that can assist it in carrying out its duties. ARTICLE 15 Exclusivity principle The Contracting Parties undertake not to submit a dispute regarding the interpretation or application of the Agreement to any method of settlement other than those provided for in this Agreement. ARTICLE 16 Procedure in the event of difficulty of interpretation or application 1. In the event of difficulty of interpretation or application of the Agreement, the Contracting Parties shall consult each other within the Joint Committee in order to find a mutually acceptable solution. To this end, all useful elements of information shall be provided to the Joint Committee to enable it to make a detailed examination of the situation. The Joint Committee shall examine all possibilities that allow the proper functioning of the Agreement to be maintained. & /en 15 2. If the Joint Committee is not able to find a solution to the difficulty referred to in paragraph 1 within three months of the date on which the difficulty was submitted to it, either of the Contracting Parties may request that an arbitral tribunal settle the dispute in accordance with the rules laid down in the Protocol on the arbitral tribunal (hereinafter referred to as "the Protocol"). 3. When settling a dispute between the Contracting Parties under this Agreement, the arbitral tribunal shall have jurisdiction to interpret this Agreement. In determining the consistency of a measure with this Agreement, the arbitral tribunal may consider, as appropriate, the law of each Contracting Party other than this Agreement, as a matter of fact. In doing so, the arbitral tribunal shall follow the prevailing interpretation given to the law of each Contracting Party other than this Agreement by the courts and the authorities of the respective Contracting Party as well as, where applicable, by competent international dispute resolution bodies. Any meaning given by the arbitral tribunal to the law of a Contracting Party other than this Agreement shall not be binding upon the courts or the authorities of that Contracting Party. 4. The arbitral tribunal shall not have jurisdiction in disputes related to the implementation of the country-specific agreements. 5. Each Contracting Party shall take all measures necessary to comply in good faith with the arbitral tribunal's decision. The Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement shall inform the other Contracting Party through the Joint Committee of the measures it has taken to comply with the arbitral tribunal's decision. & /en 16  ARTICLE 17 Compensatory measures 1. If the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement does not inform the other Contracting Party, within a reasonable time period set in accordance with Article IV.2(6) of the Protocol, of the measures it has taken to comply with the arbitral tribunal's decision, or if the other Contracting Party considers that the measures communicated do not comply with the arbitral tribunal's decision, this other Contracting Party may adopt proportionate compensatory measures within the framework of the Agreement or any agreement that is part of the List of Agreements defined in point (a) of Article 3 (hereinafter referred to as "compensatory measures") in order to remedy a potential imbalance. It shall notify the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement of the compensatory measures, which shall be specified in the notification. Those compensatory measures shall take effect three months from the date of this notification. 2. If, within one month from the date of the notification of the intended compensatory measures, the Joint Committee has not taken a decision to suspend, amend or annul those compensatory measures, either Contracting Party may submit to arbitration the question of the proportionality of those compensatory measures, in accordance with the Protocol. 3. The arbitral tribunal shall decide within the time limits laid down in Article III.8(4) of the Protocol. 4. Compensatory measures shall not have retroactive effect. In particular, the rights and obligations already acquired by individuals and economic operators before the compensatory measures take effect shall be preserved. & /en 17  PART IV FINAL PROVISIONS ARTICLE 18 Switzerland's first financial contribution under this Agreement and one-time additional financial commitment 1. Switzerland undertakes to provide its first financial contribution under this Agreement (hereinafter referred to as "first financial contribution") from 1 January 2030 to 31 December 2036 in accordance with Annex II and a one-time additional financial commitment covering the period between the end of 2024 and the end of 2029 in accordance with Annex III. 2. To the extent that the elements of the first financial contribution are not laid down in Annex II, the Contracting Parties shall conclude a legally non-binding MoU in order to fulfil the commitment undertaken in paragraph 1 within 12 months of the date of entry into force of this Agreement. To this end, the Joint Committee shall start discussions swiftly after the date of entry into force of this Agreement. 3. To the extent that the elements of the one-time additional financial commitment are not laid down in Annex III, the Contracting Parties shall conclude a legally non-binding MoU in order to fulfil the commitment undertaken in paragraph 1 within 12 months of the date of entry into force of this Agreement. To this end, the Joint Committee shall start discussions swiftly after the date of entry into force of this Agreement. & /en 18 4. The country-specific allocations of the first financial contribution in the area of cohesion and one-time additional financial commitment shall be formally committed to the Partner States upon the conclusion of the respective country-specific agreements, at the latest, three years from the date of entry into force of this Agreement. 5. The country-specific allocations of the first financial contribution in the area of migration shall be formally committed to Partner States upon the conclusion of the respective country-specific agreements, at the latest, five years from the beginning of the contribution period. 6. If the MoUs referred to in paragraphs 2 and 3 are not concluded within the timeframe referred therein, point (c) of Article 4(2) shall apply mutatis mutandis. 7. If the country-specific agreements referred to in paragraphs 4 and 5 are not concluded within the timeframes referred to in therein, Article 5(6) shall apply mutatis mutandis. ARTICLE 19 Protocol, Annexes and Appendixes The Protocol, Annexes and Appendixes to this Agreement shall form an integral part thereof. & /en 19  ARTICLE 20 Entry into force 1. This Agreement shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Agreement. 2. This Agreement shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; & /en 20 (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road; (g) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road; (h) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road; (i) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (j) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other, on the participation of the Swiss Confederation in Union programmes; & /en 21 (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. ARTICLE 21 Termination Each Contracting Party may terminate this Agreement by notifying the other Contracting Party. The Agreement shall cease to apply six months after receipt of the notification. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Agreement. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 22  ANNEX I ELEMENTS FOR SWITZERLAND'S REGULAR FINANCIAL CONTRIBUTION REFERRED TO IN POINT (a) OF ARTICLE 4(2) FOR SUBSEQUENT CONTRIBUTION PERIODS 1. The amount of Switzerland's financial contribution for a given contribution period is established on the basis of the following elements: (a) the amount of Switzerland's financial contribution for the previous contribution period adjusted pro rata temporis to the duration of the given contribution period, including, where relevant, the adjustment in accordance with Article 10, adjusted pro rata temporis to the duration of the given contribution period; (b) an increase or decrease in the amount resulting from the application of point (a) in accordance with the method set out in the Appendix 1, based on the following factors: (i) inflation in Switzerland, as measured by the Harmonised Index of Consumer Prices (hereinafter referred to as "HICP") in Switzerland, and (ii) an adjustment factor addressing any divergence between inflation in Switzerland and the inflation incurred in the Partner States to the extent that it is not offset by the development of the exchange rate, to maintain the purchasing power of Switzerland's regular financial contribution; & /en 1  (c) an increase or decrease in the amount established on the basis of points (a) and (b) in view of political considerations. Such an increase or decrease shall not go beyond 10 % of the amount established on the basis of points (a) and (b). 2. The share of Switzerland's financial contribution for a given contribution period dedicated to the area of cohesion shall be at least 90 % of the amount determined in accordance with paragraph 1. 3. The share of Switzerland's financial contribution for a given contribution period in the area of cohesion assigned to country-specific agreements shall be at least 90 % of the amount of Switzerland's financial contribution dedicated to that area determined in accordance with paragraph 2. 4. The amount assigned to country-specific agreements in the area of cohesion shall be allocated to Partner States in accordance with the allocation key set out in Appendix 2. & /en 2  Appendix 1 METHOD FOR THE DETERMINATION OF THE ADJUSTMENT REFERRED TO IN POINT (b) OF PARAGRAPH 1 OF ANNEX I The increase or decrease referred to in point (b) of paragraph 1 of Annex I, shall be calculated in accordance with the following method: 1. The amount resulting from the application of point (a) of paragraph 1 of Annex I shall be multiplied by the indexation factor referred to in paragraph 2 of this Appendix; 2. The indexation factor shall be the product of: (a) inflation in Switzerland, as measured by the HICP in Switzerland, between the last year, calculated as the arithmetic average of the last available 12 months at the date of calculation, and the first year of the previous contribution period, calculated as the 12-month arithmetic average of that calendar year; and (b) an adjustment factor, measured by the ratio of the real exchange rate of the group of the Partner States in the area of cohesion in the previous contribution period vis-à-vis Switzerland between the last year and the first year of the previous contribution period, reflecting the real appreciation or depreciation experienced by that group over the period. & /en 3 For the purposes of the calculation of the indexation factor the following applies: (i) the real exchange rate of the group of Partner States in the area of cohesion in the previous contribution period shall consist of those Partner States' nominal exchange rate vis-à-vis the Swiss franc multiplied by those Partner States' HICP-based aggregate and divided by the Swiss HICP. A real appreciation for that group of Partner States shall involve an increase in the real exchange rate, and a real depreciation for that group of Partner States shall involve a decrease in the real exchange rate; (ii) the HICP-based aggregate for those Partner States shall be constructed as the 12-month arithmetic average of the HICP index for that group of Partner States, using the HICP methodology as provided for in the Agreement between the European Community and the Swiss Confederation on the cooperation in the field of statistics, done at Luxembourg on 26 October 2004, but where the weights shall be the allocation key set out in Appendix 2; (iii) the Partner States' nominal exchange rate vis-à-vis the Swiss franc shall be constructed as the weighted arithmetic average of the nominal exchange rates of those Partner States vis-à-vis the Swiss franc, where the weights shall be the allocation key set out in Appendix 2. The nominal exchange rates used in the calculation for a given year shall be the 12-month average of the monthly data for that year derived from the daily exchange rates. & /en 4  The Commission shall calculate the adjustment factor under point (b) of paragraph 2 of this Appendix. The Commission shall share the calculation with Switzerland through the Joint Committee one month after obtaining it. 3. If data are not available for a given year, the data to be used for that year shall be the data from the last available 12 months at the date of calculation. 4. The HICP and exchange rate data used for the calculation of the indexation factor shall be obtained from the Statistical Office of the Union (hereinafter referred to as "Eurostat"), based on statistics published by Eurostat, with due regard to the Agreement between the European Community and the Swiss Confederation on the cooperation in the field of statistics, done at Luxembourg on 26 October 2004. Where necessary, data on the exchange rates shall be obtained from public databases from the European Central Bank, the central banks of the Partner States, and/or the Swiss National Bank. & /en 5  Appendix 2 ALLOCATION KEY FOR SWITZERLAND'S REGULAR FINANCIAL CONTRIBUTION IN THE AREA OF COHESION Each Partner State's allocation of Switzerland's financial contribution in the area of cohesion for a given contribution period shall correspond to a percentage of Switzerland's financial contribution in the area of cohesion obtained by applying the following steps: (a) calculating the arithmetical average of the Partner State's population and surface area shares of the total population and surface area of all the Partner States. If, however, a Partner State's share of total population exceeds its share of total surface area by a factor of five or more, reflecting an extremely high population density, only the share of the total population shall be used for this step; (b) decreasing or increasing the percentage figures obtained as a result of the calculation in accordance with point (a) by a coefficient representing one third of the percentage by which that Partner State's GNI per capita, measured in purchasing power standards exceeds or falls below the average GNI per capita of all the Partner States (average expressed as 100 %); and (c) rescaling the shares obtained as a result of the calculation in accordance with point (b) so that their sum is equal to 100 %. & /en 6 The reference period for the data to be used shall be the same as that which is used for the Cohesion Fund of the Union in force on the start date of the respective contribution period, or, if not available, the latest three-year period for which data are available. ________________ & /en 7  ANNEX II SWITZERLAND'S FIRST FINANCIAL CONTRIBUTION UNDER THIS AGREEMENT FOR THE PERIOD 2030 – 2036 1. Switzerland's first financial contribution under this Agreement (hereinafter referred to as "first financial contribution") for the period of 1 January 2030 to 31 December 2036 ("contribution period") shall amount to CHF 350 000 000 for each year of that period. 2. Of the amount referred to in paragraph 1 for each year of the contribution period, CHF 308 000 000 shall be allocated for cooperation in the area of cohesion and CHF 42 000 000 for cooperation in the area of migration. 3. Switzerland's first financial contribution shall contribute to the objectives laid down in Article 1 of this Agreement. 4. Switzerland's first financial contribution shall be implemented over a period of ten years ("implementation period"), starting on the same date as the contribution period. 5. The share of the financial contribution in the area of cohesion assigned to country-specific agreements shall be at least 90 % of the amount allocated to that area. 6. Up to 5 % of the respective amounts for cooperation in the areas of cohesion and of migration shall be available to Switzerland to cover management costs, and up to 2 % shall be available to share Swiss expertise (Swiss Expertise and Partnership Fund). & /en 1 7. Partner States for cooperation in the area of cohesion shall be Member States of the Union whose GNI per capita, measured in purchasing power standards, is less than 90 % of the Union's average GNI per capita in purchasing power standards for the same reference period. The reference period for the data to be used shall be the same as that used to determine the eligibility of Member States of the Union under the Cohesion Fund of the Union in force on the start date of the contribution period. 8. Potential Partner States in the area of migration are Member States of the Union facing particular migration pressure and/or where Switzerland and a given Member State agree on the need to strengthen migration governance. 9. In the areas of cooperation of cohesion and migration, the Contracting Parties may reach a mutual understanding to set aside a specific amount for a fund dedicated to a specific topic (cohesion) and a rapid response fund (migration). If applicable, the elements shall be set out in the MoU in accordance with Article 18(2) of the Agreement. 10. The thematic areas for cooperation under Switzerland's first financial contribution shall build on the successful cooperation under the previous Swiss contribution to selected Member States of the Union. They shall complement cohesion and migration management efforts of the Union at the time of the start of the contribution period. 11. In accordance with Article 18(2) of the Agreement, the Contracting Parties shall specify in the MoU the areas of focus among the following thematic areas: (a) Cohesion: (i) inclusive human and social development; & /en 2  (ii) sustainable and inclusive economic development; (iii) green transition; and (iv) democracy and participation. (b) Migration. ________________ & /en 3  ANNEX III SWITZERLAND'S ONE-TIME ADDITIONAL FINANCIAL COMMITMENT COVERING THE PERIOD BETWEEN THE END OF 2024 AND THE END OF 2029 1. In accordance with Article 18 of this Agreement, Switzerland undertakes to provide a one-time additional financial commitment covering the period between the end of 2024 and the end of 2029 reflecting Switzerland and the Union's level of partnership and cooperation in that period. That one-time additional financial commitment shall amount to CHF 130 000 000 per year until the entry into force of the agreements referred to in Article 20(2) of this Agreement, and to CHF 350 000 000 per year for the period between the entry into force of the agreements referred to in Article 20(2) of this Agreement and the end of 2029. For the year in which the agreements referred to in Article 20(2) of this Agreement enter into force, the amount of the one-time additional commitment shall be calculated pro rata temporis. 2. Switzerland's one-time additional financial commitment shall be implemented over a period of ten years ("implementation period"), starting on the same date as the contribution period of Switzerland's first financial contribution. 3. The one-time additional financial commitment shall be used for cooperation in the area of cohesion. 4. The share of the one-time financial commitment assigned to country-specific agreements shall be at least 90 % of the amount of Switzerland's one-time additional financial commitment. & /en 1 5. Up to 5 % of the amount of the one-time financial commitment shall be available to Switzerland to cover management costs, and up to 2 % shall be available to share Swiss expertise (Swiss Expertise and Partnership Fund). 6. Partner States for cooperation shall be Member States of the Union whose GNI per capita, measured in purchasing power standards, is less than 90 % of the Union's average GNI per capita in purchasing power standards for the same reference period. The reference period for the data to be used shall be the same as that used to determine the eligibility of Member States of the Union under the Cohesion Fund of the Union in force on the start date of the implementation period of the one-time additional financial commitment. 7. The Contracting Parties may reach a mutual understanding to set aside a specific amount for a fund dedicated to a specific topic in the area of cohesion. If applicable, the elements shall be set out in the MoU in accordance with Article 18(3) of the Agreement. 8. The objectives and rules for implementation of Switzerland's regular financial contribution laid down in the Agreement shall apply mutatis mutandis to the one-time additional financial commitment, unless otherwise provided for in Article 18 of this Agreement and this Annex. 9. The thematic areas for cooperation under Switzerland's one-time additional financial commitment shall build on the successful cooperation under the previous Swiss contribution to selected Member States of the Union. They shall complement the cohesion efforts of the Union at the time of the start of the implementation period of the one-time additional financial commitment. & /en 2 10. In accordance with Article 18(3) of the Agreement, the Contracting Parties shall specify in the MoU the areas of focus among the following thematic areas: (i) inclusive human and social development; (ii) sustainable and inclusive economic development; (iii) green transition; and (iv) democracy and participation. ________________ & /en 3  PROTOCOL ON THE ARBITRAL TRIBUNAL CHAPTER I PRELIMINARY PROVISIONS ARTICLE I.1 Scope If one of the Contracting Parties (hereinafter referred to as "parties") submits a dispute for arbitration in accordance with Articles 16(2) or 17(2) of the Agreement, the rules set out in this Protocol shall apply. ARTICLE I.2 Registry and secretarial services The International Bureau of the Permanent Court of Arbitration at the Hague (hereinafter referred to as "International Bureau") shall fulfil the functions of registry and provide the necessary secretarial services. & /en 1  ARTICLE I.3 Notices and calculation of time limits 1. Notices, including communications or proposals, may be sent by any means of communication that certifies their transmission, or enables them to be certified. 2. Such notices may be sent electronically only if an address has been designated or authorised by a party specifically for this purpose. 3. Such notices served on the parties shall be sent, for Switzerland, to Switzerland's Europe Division of the Federal Department of Foreign Affairs and, for the Union, to the Commission's Legal Service. 4. Any time limit laid down in this Protocol shall run from the day after an event occurs or an action takes place. If the last day for delivery of a document falls on a non-working day of the institutions of the Union or of the government of Switzerland, the time period for the delivery of the document shall end on the first following working day. Non-working days that fall within the time period shall be counted. & /en 2  ARTICLE I.4 Notice of arbitration 1. The party taking the initiative to use arbitration (hereinafter referred to as "applicant") shall send to the other party (hereinafter referred to as "defendant") and to the International Bureau a notice of arbitration. 2. Arbitration proceedings shall be deemed to commence on the day after that on which the notice of arbitration is received by the defendant. 3. The notice of arbitration shall include the following information: (a) the demand that the dispute be referred to arbitration; (b) the names and contact details of the parties; (c) the name and address of the applicant's agent(s); (d) the legal basis of the proceedings (Article 16(2) or Article 17(2) of the Agreement) and: (i) in the cases referred to in Article 16(2) of the Agreement, the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 16(1) of the Agreement; and (ii) in the cases referred to in Article 17(2) of the Agreement, the decision of the arbitral tribunal, any implementation measures mentioned in Article 16(5) of the Agreement and the disputed compensatory measures; & /en 3 (e) the designation of any rule causing the dispute or related to it; (f) a brief description of the dispute; and (g) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. 4. Any claims on the sufficiency of the notice of arbitration shall not prevent the constitution of the arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. ARTICLE I.5 Response to the notice of arbitration 1. Within 60 days of receiving the notice of arbitration, the defendant shall send a response to the notice of arbitration to the applicant and the International Bureau, which shall include the following information: (a) the names and contact details of the parties; (b) the name and address of the defendant's agent(s); (c) a response to the information given in the notice of arbitration in accordance with points (d) to (f) of Article I.4(3); and & /en 4 (d) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. 2. The lack of, or an incomplete or late, response from the defendant to the notice of arbitration shall not prevent the constitution of an arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. 3. If the defendant requests that the arbitral tribunal consist of five arbitrators in its response to the notice of arbitration, the applicant shall designate an additional arbitrator within 30 days of receipt of the response to the notice of arbitration. ARTICLE I.6 Representation and assistance 1. The parties shall be represented before the arbitral tribunal by one or more agents. The agents may be assisted by advisers or lawyers. 2. Any change to the agents or their addresses shall be notified to the other party, the International Bureau and the arbitral tribunal. The arbitral tribunal may, at any time, on its own initiative or at the request of a party, request evidence of the powers conferred on the agents of the parties. & /en 5  CHAPTER II COMPOSITION OF THE ARBITRAL TRIBUNAL ARTICLE II.1 Number of arbitrators The arbitral tribunal shall be composed of three arbitrators. If the applicant in its notice of arbitration or the defendant in its response to the notice of arbitration so request, the arbitral tribunal shall be composed of five arbitrators. ARTICLE II.2 Appointment of arbitrators 1. If three arbitrators are to be appointed, each of the parties shall designate one of them. The two arbitrators appointed by the parties shall select the third arbitrator, who shall be the chair of the arbitral tribunal. 2. If five arbitrators are to be appointed, each of the parties shall designate two of them. The four arbitrators appointed by the parties shall select the fifth arbitrator, who shall be the chair of the arbitral tribunal. & /en 6 3. If, within 30 days of the designation of the last arbitrator appointed by the parties, the arbitrators have not reached agreement on the selection of the chair of the arbitral tribunal, the chair shall be appointed by the Secretary-General of the Permanent Court of Arbitration. 4. To assist in the selection of arbitrators to compose the arbitral tribunal, an indicative list of persons possessing the qualifications referred to in paragraph 6, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement between the European Union and the Swiss Confederation on health, done at […] on […] (hereinafter referred to as "Agreement on health"), the Agreement between the European Community and the Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999 (hereinafter referred to as "Agreement on trade in agricultural products") and the Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union, done at […] on […] (hereinafter referred to as "Agreement on Switzerland's regular financial contribution"), shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. 5. Where a party fails to designate an arbitrator, the Secretary-General of the Permanent Court of Arbitration shall appoint that arbitrator from the list referred to in paragraph 4. In the absence of such a list, the arbitrator shall be appointed by lot by the Secretary-General of the Permanent Court of Arbitration from the individuals who have been formally proposed by one party or both parties for the purposes of paragraph 4. & /en 7 6. The persons constituting the arbitral tribunal shall be highly qualified persons, with or without ties to the parties, whose independence and lack of conflicts of interest is guaranteed, along with a wide range of experience. In particular, they shall have demonstrated expertise in law and the matters covered by this Agreement; they shall not take instructions from either party; and they shall serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute. The chair of the arbitral tribunal shall also have experience in dispute settlement procedures. ARTICLE II.3 Arbitrators' declarations 1. When a person is being considered for appointment as an arbitrator, that person shall report all circumstances likely to give rise to legitimate doubts as to his or her impartiality or independence. From the appointment and throughout the entire arbitration proceedings, an arbitrator shall report such circumstances to the parties and to the other arbitrators without delay, if the arbitrator has not already done so. 2. Any arbitrator may be dismissed if circumstances exist that could give rise to legitimate doubts about his or her impartiality or independence. 3. A party may only request the dismissal of an arbitrator that it has appointed for a reason that becomes known to it after that appointment. 4. If an arbitrator fails to act or if it is impossible de jure or de facto for an arbitrator to fulfil his or her role, the procedure for the dismissal of arbitrators laid down in Article II.4 shall apply. & /en 8  ARTICLE II.4 Dismissal of arbitrators 1. Any party wishing to dismiss an arbitrator shall make a request for dismissal within 30 days of the date on which it is notified of the appointment of that arbitrator or within 30 days of the date on which it becomes aware of the circumstances referred to in Article II.3. 2. The request for dismissal shall be sent to the other party, to the dismissed arbitrator, to the other arbitrators and to the International Bureau. It shall set out the reasons for the request for dismissal. 3. When a request for dismissal has been made, the other party may accept the request for dismissal. The arbitrator in question may also step aside. The acceptance or stepping aside does not imply acknowledgement of the reasons for the request for dismissal. 4. If, within 15 days of the date of the notification of the request for dismissal, the other party does not accept the request for dismissal or the arbitrator in question does not step aside, the party requesting the dismissal may ask the Secretary-General of the Permanent Court of Arbitration to take a decision on the dismissal. 5. Unless the parties agree otherwise, the decision referred to in paragraph 4 shall indicate the reasons for that decision. & /en 9  ARTICLE II.5 Replacement of an arbitrator 1. Subject to paragraph 2 of this Article, if it is necessary to replace an arbitrator during the arbitration proceedings, a replacement shall be appointed or selected in accordance with the procedure laid down in Article II.2 applicable to the appointment or selection of the arbitrator to be replaced. That procedure shall apply even if one party had not exercised its right to appoint or to participate in the appointment of the arbitrator to be replaced. 2. In the event of replacement of an arbitrator, the procedure shall resume at the stage where the replaced arbitrator ceased to perform his or her functions, unless the arbitral tribunal decides otherwise. ARTICLE II.6 Exclusion of liability Except in cases of intentional wrongdoing or gross negligence, the parties renounce, to the maximum extent permitted by the applicable law, any action against the arbitrators for any act or omission related to the arbitration. & /en 10  CHAPTER III ARBITRATION PROCEEDINGS ARTICLE III.1 General provisions 1. The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator has accepted his or her appointment. 2. The arbitral tribunal shall ensure that the parties are treated equally and that, at an appropriate stage of the proceedings, each of them has sufficient possibility to assert their rights and present their case. The arbitral tribunal shall conduct the proceedings in such a way as to avoid delays and unnecessary expenditure and to ensure the dispute between the parties is settled. 3. A hearing shall be organised, unless the arbitral tribunal decides otherwise, having heard the parties. 4. When a party sends a communication to the arbitral tribunal, it shall do so through the International Bureau and shall send a copy to the other party at the same time. The International Bureau shall send a copy of that communication to each of the arbitrators. & /en 11  ARTICLE III.2 Place of arbitration The place of arbitration is The Hague. The arbitral tribunal may, if exceptional circumstances so require, meet at any other place that it considers appropriate for its deliberations. ARTICLE III.3 Language 1. The languages of the proceedings shall be French and English. 2. The arbitral tribunal may order all documents enclosed with the statement of claim or the statement of defence and all further documents produced during the proceedings, submitted in their original language, to be accompanied by a translation in one of the languages of the proceedings. ARTICLE III.4 Statement of claim 1. The applicant shall send its statement of claim in writing to the defendant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The applicant may decide to deem its notice of arbitration referred to in Article I.4 a statement of claim, provided that it also meets the conditions in paragraphs 2 and 3 of this Article. & /en 12 2. The statement of claim shall include the following information: (a) the information set out in points (b) to (f) of Article I.4(3); (b) a statement of facts submitted in support of the claim; and (c) the legal arguments put forward in support of the claim. 3. The statement of claim shall, as far as possible, be accompanied by any documents and other evidence mentioned by the applicant or should refer to them. ARTICLE III.5 Statement of defence 1. The defendant shall send the statement of defence in writing to the applicant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The defendant may decide to deem the response to the notice of arbitration referred to in Article I.5 a statement of defence, provided that the response to the notice of arbitration also meets the conditions in paragraph 2 of this Article. 2. The statement of defence shall respond to the points in the statement of claim indicated in accordance with points (a) to (c) of Article III.4(2) of this Protocol. It shall, as far as possible, be accompanied by any documents and other evidence mentioned by the defendant or should refer to them. & /en 13 3. In the statement of defence, or at a later stage in the arbitration proceedings if the arbitral tribunal decides that a delay is justified by circumstances, the defendant may make a counterclaim provided that the arbitral tribunal has jurisdiction in respect of it. 4. Article III.4(2) and (3) shall apply to a counterclaim. ARTICLE III.6 Arbitral jurisdiction 1. The arbitral tribunal shall rule on whether it has jurisdiction on the basis of Articles 16(2) or 17(2) of the Agreement. 2. In the cases referred to in Article 16(2) of the Agreement, the arbitral tribunal shall have a mandate to examine the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 16(1) of the Agreement. 3. In the cases referred to in Article 17(2) of the Agreement, the arbitral tribunal that heard the main case shall have a mandate to examine the proportionality of the disputed compensatory measures, including where those measures have in whole or in part been taken in any bilateral agreement that is part of the List of Agreements defined in point (a) of Article 3 of the Agreement. & /en 14 4. A preliminary objection of lack of jurisdiction of the arbitral tribunal shall be made at the latest in the statement of defence or, in the case of a counterclaim, in the reply. The fact that a party has appointed an arbitrator or has taken part in their appointment shall not deprive it of the right to make such a preliminary objection. The preliminary objection that the dispute would exceed the arbitral tribunal's powers shall be made as soon as the question alleged to exceed its powers is raised during the arbitration proceedings. In any event, the arbitral tribunal may allow a preliminary objection made after the time limit laid down has elapsed if it believes that the delay was for a valid reason. 5. The arbitral tribunal may rule on the preliminary objection referred to in paragraph 4 either by treating it as a preliminary question or in the decision on the substance of the case. ARTICLE III.7 Other written submissions The arbitral tribunal shall, after having consulted the parties, decide what other written submissions, in addition to the statement of claim and statement of defence, the parties shall or may submit and shall set the time limit for their submission. & /en 15  ARTICLE III.8 Time limits 1. The time limits set by the arbitral tribunal for the communication of the written documents, including the statement of claim and the statement of defence, shall not exceed 90 days, unless the parties agree otherwise. 2. The arbitral tribunal shall take its final decision within 12 months of the date of its establishment. In exceptional circumstances of particular difficulty, the arbitral tribunal may extend that period by up to three additional months. 3. The time limits laid down in paragraphs 1 and 2 shall be halved: (a) upon request by the applicant or the defendant, if, within 30 days of that request, the arbitral tribunal rules, after hearing the other party, that the case is urgent; (b) in the cases referred to in point (c) of Article 4(2) and Article 18(6) of the Agreement; (c) in the cases referred to in Article 5(6) and Article 18(7) of the Agreement, where no country-specific agreements have been concluded by Switzerland; or (d) if the parties so agree. & /en 16 4. In the cases referred to in Article 17(2) of the Agreement, the arbitral tribunal shall take its final decision within six months of the date on which the compensatory measures have been notified in accordance with Article 17(1) of the Agreement. ARTICLE III.9 Interim measures 1. In the cases referred to in Article 17(2) of the Agreement, either party may, at any stage of the arbitration procedure, apply for interim measures consisting of the suspension of the compensatory measures. 2. An application pursuant to paragraph 1 shall state the subject matter of the proceedings, the circumstances giving rise to urgency and the pleas of fact and law establishing a prima facie case for the interim measures applied for. It shall contain all the evidence and offers of evidence available to justify the grant of the interim measures. 3. The party requesting the interim measures shall send its application in writing to the other party and to the arbitral tribunal through the International Bureau. The arbitral tribunal shall set a short time limit within which that other party may submit written or oral observations. & /en 17 4. The arbitral tribunal shall, within one month of the submission of the application referred to in paragraph 1, adopt a decision on the suspension of the contested compensatory measures if the following conditions are met: (a) the arbitral tribunal is prima facie satisfied of the merit of the case submitted by the party requesting the interim measures in its application; (b) the arbitral tribunal considers that, pending its final decision, the party requesting the interim measures would suffer serious and irreparable harm absent the suspension of the compensatory measures; and (c) the harm caused to the party requesting the interim measures by the immediate application of the contested compensatory measures outweighs the interest in the immediate and effective application of those measures. 5. A decision taken by the arbitral tribunal in accordance with paragraph 4 shall have only an interim effect and shall be without prejudice to the decision of the arbitral tribunal on the substance of the case. 6. Unless the decision taken by the arbitral tribunal in accordance with paragraph 4 of this Article sets an earlier date for the end of the suspension, the suspension shall lapse when the final decision pursuant to Article 17(2) of the Agreement is taken. & /en 18 7. For the avoidance of doubt, for the purposes of this Article, it is understood that, in considering the respective interests of the party requesting the interim measures and the other party, the arbitral tribunal shall take into account those of the individuals and economic operators of the parties, but that consideration shall not amount to granting any standing to such individuals or economic operators before the arbitral tribunal. ARTICLE III.10 Evidence 1. Each party shall provide evidence of the facts forming the grounds of its claim or its defence. 2. On request of a party, or on its own initiative, the arbitral tribunal may seek from the parties relevant information it considers necessary and appropriate. The arbitral tribunal shall set a time limit for the parties to respond to its request. 3. On request of a party, or on its own initiative, the arbitral tribunal may seek from any source any information it considers appropriate. The arbitral tribunal may also seek the opinion of experts as it considers appropriate and subject to any terms and conditions agreed by the parties, where applicable. 4. Any information obtained by the arbitral tribunal under this Article shall be made available to the parties, and the parties may submit comments on that information to the arbitral tribunal. & /en 19 5. After seeking the views of the other party, the arbitral tribunal shall adopt appropriate measures to address any questions raised by a party with regard to the protection of personal data, professional secrecy and the legitimate interests of confidentiality. 6. The arbitral tribunal shall be the judge of the admissibility, relevance and strength of the evidence submitted. ARTICLE III.11 Hearings 1. When a hearing must take place, the arbitral tribunal, having consulted the parties, shall notify the parties sufficiently far in advance of the date, time and place of the hearing. 2. The hearing shall be public, unless the arbitral tribunal, of its own motion or on application by the parties, decides otherwise for serious reasons. 3. Minutes of each hearing shall be drawn up and signed by the chair of the arbitral tribunal. Only those minutes shall be authentic. 4. The arbitral tribunal may decide to hold the hearing virtually in accordance with the practice of the International Bureau. The parties shall be informed of this practice in a timely manner. In such cases, paragraph 1, mutatis mutandis, and paragraph 3 shall apply. & /en 20  ARTICLE III.12 Default 1. If, within the time limit set by this Protocol or by the arbitral tribunal, without showing sufficient cause, the applicant has not submitted its statement of claim, the arbitral tribunal shall order the closure of the arbitration proceedings, unless there are outstanding questions on which a ruling may be necessary and if the arbitral tribunal considers it appropriate to do so. If, within the time limit set by this Protocol or by the arbitral tribunal, without showing sufficient cause, the defendant has not submitted its response to the notice of arbitration or its statement of defence, the arbitral tribunal shall order the continuation of the proceedings, without considering that default of itself to constitute acceptance of the applicant's allegations. The second subparagraph also applies where the applicant fails to submit a reply to a counterclaim. 2. If a party, duly convened in accordance with Article III.11(1), does not appear at a hearing and does not demonstrate sufficient cause for its failure to do so, the arbitral tribunal may continue the arbitration. 3. If a party, duly invited by the arbitral tribunal to produce further evidence, fails to do so within the time limits set without showing sufficient cause for its failure to do so, the arbitral tribunal may rule on the basis of the evidence it has available. & /en 21  ARTICLE III.13 Closure of the procedure 1. Where it is demonstrated that the parties have reasonably had the possibility of presenting their arguments, the arbitral tribunal may declare the closure of the proceedings. 2. The arbitral tribunal may, if it considers it necessary because of exceptional circumstances, decide on its own initiative or at the request of a party to reopen the proceedings at any time before it has taken its decision. CHAPTER IV DECISION ARTICLE IV.1 Decisions The arbitral tribunal shall strive to take its decisions by consensus. If, however, it proves impossible to take a decision by consensus, the arbitral tribunal's decision shall be taken by a majority of the arbitrators. & /en 22  ARTICLE IV.2 Form and effect of the decision of the arbitral tribunal 1. The arbitral tribunal may take separate decisions on different questions at different times. 2. All decisions shall be issued in writing and shall state the reasons on which they are based. They shall be final and binding on the parties. 3. The decision of the arbitral tribunal shall be signed by the arbitrators, shall contain the date on which it was taken and state the place of arbitration. A copy of the decision signed by the arbitrators shall be communicated to the parties by the International Bureau. 4. The International Bureau shall make the decision of the arbitral tribunal public. When making the decision of the arbitral tribunal public, the International Bureau shall respect the relevant rules on the protection of personal data, professional secrecy and the legitimate interests of confidentiality. The rules referred to in the second subparagraph shall be identical for all bilateral agreements in the fields of the internal market in which Switzerland participates as well as for the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution. The Joint Committee shall adopt and update those rules by a decision for the purposes of the Agreement. 5. The parties shall comply with all decisions of the arbitral tribunal without delay. & /en 23 6. In the cases referred to in Article 16(2) of the Agreement, having obtained the opinion of the parties, the arbitral tribunal shall set a reasonable time limit in the decision on the substance of the case to comply with its decision in accordance with Article 16(5) of the Agreement taking account of the parties' internal procedures. ARTICLE IV.3 Applicable law, rules of interpretation, mediator 1. The applicable law consists of the Agreement as well as the rules and principles of international law applicable between the parties on the interpretation of treaties. 2. Prior decisions taken by a dispute settlement body with regard to the proportionality of compensatory measures under another bilateral agreement among those referred to in Article 17(1) of the Agreement shall be binding upon the arbitral tribunal. 3. The arbitral tribunal shall not be permitted to decide as mediator or ex aequo et bono. & /en 24  ARTICLE IV.4 Mutually agreed solution or other reasons for closure of the proceedings 1. The parties may, at any time, mutually agree a solution to their dispute. They shall jointly communicate any such solution to the arbitral tribunal. If the solution requires approval pursuant to the relevant domestic procedures of either party, the notification shall refer to that requirement, and the arbitration procedure shall be suspended. If such approval is not required, or upon notification of the completion of any such domestic procedures, the arbitration procedure shall be closed. 2. If, in the course of proceedings, the applicant informs the arbitral tribunal in writing that it does not wish to further pursue the proceedings, and if, at the date on which that communication is received by the arbitral tribunal, the defendant has not yet taken any step in the proceedings, the arbitral tribunal shall issue an order officially recording the closure of the proceedings. The arbitral tribunal shall decide on the costs, which shall be borne by the applicant, if this appears justified by the conduct of that party. 3. If, before the decision of the arbitral tribunal is taken, the arbitral tribunal concludes that the continuation of the proceedings has become pointless or impossible for any reason other than those referred to in paragraphs 1 and 2, the arbitral tribunal shall inform the parties of its intention to issue an order closing the proceedings. The first subparagraph does not apply where there are outstanding questions on which it may be necessary to rule and if the arbitral tribunal judges it appropriate to do so. & /en 25 4. The arbitral tribunal shall communicate to the parties a copy of the order closing the arbitration proceedings or of the decision taken by agreement between the parties, signed by the arbitrators. Article IV.2(2) to (5) shall apply to arbitration decisions taken by agreement between the parties. ARTICLE IV.5 Correction of the decision of the arbitral tribunal 1. Within 30 days of receiving the decision of the arbitral tribunal, a party may, by giving notice to the other party and to the arbitral tribunal through the International Bureau, ask the arbitral tribunal to correct in the text of the decision of the arbitral tribunal any errors in computation, any clerical or typographical errors, or any errors or omissions of a similar nature. If it considers the request to be justified, the arbitral tribunal shall make the correction within 45 days of receiving the request. The request shall not have a suspensive effect on the time limit provided for in Article IV.2(6). 2. The arbitral tribunal may, within 30 days of communicating its decision, make the corrections referred to in paragraph 1 on its own initiative. 3. The corrections referred to in paragraph 1 of this Article shall be done in writing and form an integral part of the decision. Article IV.2(2) to (5) shall apply. & /en 26  ARTICLE IV.6 Arbitrators' fees 1. The fees referred to in Article IV.7 shall be reasonable, taking account of the complexity of the case, the time spent on it by the arbitrators and all other relevant circumstances. 2. A list of daily compensation and maximum and minimum hours, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution, shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. ARTICLE IV.7 Costs 1. Each party shall bear its own costs and half of the costs of the arbitral tribunal. 2. The arbitral tribunal shall set its costs in its decision on the substance of the case. Those costs shall include only: (a) the arbitrators' fees, to be stated separately for each arbitrator and to be set by the arbitral tribunal itself in accordance with Article IV.6; & /en 27 (b) the travel and other expenses incurred by the arbitrators; and (c) the fees and expenses of the International Bureau. 3. The costs referred to in paragraph 2 shall be reasonable, taking account of the amount in dispute, the complexity of the dispute, the time that the arbitrators and any experts appointed by the arbitral tribunal have spent on it and any other relevant circumstances. ARTICLE IV.8 Deposit of costs 1. At the start of the arbitration, the International Bureau may ask the parties to deposit an equal amount as an advance for the costs referred to in Article IV.7(2). 2. During the arbitration proceedings, the International Bureau may request from the parties deposits supplementary to those referred to in paragraph 1. 3. All amounts deposited by the parties in application of this Article shall be paid to the International Bureau and paid out by it to cover the costs actually incurred, including, in particular, the fees paid to the arbitrators and to the International Bureau. & /en 28  CHAPTER V FINAL PROVISIONS ARTICLE V.1 Amendments The Joint Committee may adopt, by decision, amendments to this Protocol. & /en 29 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 9 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  AGREEMENT BETWEEN THE EUROPEAN UNION AND THE SWISS CONFEDERATION ON THE TERMS AND CONDITIONS FOR THE PARTICIPATION OF THE SWISS CONFEDERATION IN THE EUROPEAN UNION AGENCY FOR THE SPACE PROGRAMME & /en THE EUROPEAN UNION, hereinafter referred to as the "Union", of the one part, and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland", of the other part, hereinafter referred to as the "Contracting Parties", CONSIDERING Regulation (EU) 2021/696 of the European Parliament and of the Council1 establishing the Union Space Programme and the European Union Agency for the Space Programme (hereinafter referred to as the "Regulation"), CONSIDERING that pursuant to Article 98 of the Regulation, the European Union Agency for the Space Programme (hereinafter referred to as the "Agency") should be open to the participation of third countries and international organisations and that such participation and the conditions therefore should be established in an agreement concluded to that effect with the European Union, 1 Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 establishing the Union Space Programme and the European Union Agency for the Space Programme and repealing Regulations (EU) No 912/2010, (EU) No 1285/2013 and (EU) No 377/2014 and Decision No 541/2014/EU (OJ L 170, 12.5.2021, p. 69, ELI: http://data.europa.eu/eli/reg/2021/696/oj). & /en 1 RECOGNISING that Switzerland participates and contributes financially to the European Global Navigation Satellite System (hereinafter referred to as "GNSS") programmes pursuant to the Cooperation Agreement between the European Union and its Member States, of the one part, and the Swiss Confederation, of the other, on the European Satellite Navigation Programmes, done at Brussels on 18 December 2013 (hereinafter referred to as the "Cooperation Agreement") that applies provisionally as of 1 January 2014, RECALLING that Article 16 of the Cooperation Agreement states that Switzerland should have the right to participate in the Agency under the conditions to be laid down in an Agreement between the Union and Switzerland, RECOGNISING that the Union and Switzerland have concluded an agreement on the security procedures for the exchange of classified information, done at Brussels on 28 April 2008, CONSIDERING Switzerland's request to participate in the work of the Agency, CONSIDERING the common interest in the participation of Switzerland in the work of the Agency, DESIRING to reinforce the close cooperation between the Union and Switzerland in the area of satellite navigation, HAVE AGREED AS FOLLOWS: & /en 2  ARTICLE 1 Extent of participation 1. Switzerland shall participate in and contribute to the work of the Agency in relation to the Galileo and EGNOS components of the Union Space Programme, in accordance with the terms and conditions set out in the Regulation, in the Cooperation Agreement and in this Agreement. 2. Switzerland shall participate in and contribute to the work of the Agency in relation to other components of the Union Space Programme if the Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes (hereinafter referred to as the "Agreement on Switzerland's participation in Union programmes"), done at … on … provides for the participation of Switzerland in those components of that programme and for the participation of Switzerland in the work of the Agency in relation to those components, in accordance with the terms and conditions set out in the Regulation, in the Agreement on the participation in Union programmes and in this Agreement. ARTICLE 2 Administrative Board One representative of Switzerland shall participate as an observer in the Administrative Board of the Agency without the right to vote and in accordance with the conditions laid down in the Rules of Procedure of the Administrative Board. & /en 3  ARTICLE 3 Security Accreditation Board One representative of Switzerland shall participate as an observer in the Security Accreditation Board, on matters directly relating to Switzerland only, without the right to vote and in accordance with the conditions laid down in the Rules of Procedure of the Security Accreditation Board. The matters directly relating to Switzerland shall be specified in the agenda drawn up by the Chairperson of the Security Accreditation Board prior to each meeting and communicated to Switzerland ahead of the meeting. ARTICLE 4 Financial contribution Switzerland shall contribute to the revenue of the Agency an annual sum calculated in accordance with the formula described in Annex I. & /en 4  ARTICLE 5 Data protection 1. Switzerland shall apply its national rules concerning the protection of individuals with regard to the processing of personal data and concerning on the free movement of such data1. 2. For the purpose of this Agreement, Regulation (EU) 2018/1725 of the European Parliament and of the Council2 shall apply to the processing of personal data carried out by the Agency. 3. Switzerland shall respect the rules on confidentiality of documents held by the Agency, as set out in the Rules of Procedure of the Administrative Board and the Security Accreditation Board of the Agency 1 In view of Commission Decision 2000/518/EC of 26 July 2000 pursuant to Directive 95/46/EC of the European Parliament and of the Council on the adequate protection of personal data provided in Switzerland, (OJ L 215, 25.8.2000, p. 1, ELI: http://data.europa.eu/eli/dec/2000/518/oj). 2 Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC, (OJ L 295, 21.11.2018, p. 39, ELI: http://data.europa.eu/eli/reg/2018/1725/oj). & /en 5  ARTICLE 6 Legal status Switzerland recognises the legal personality of the Agency. It shall enjoy in Switzerland the most extensive legal capacity accorded to legal persons under the law of Switzerland. It may, in particular, acquire or dispose of movable and immovable property and be party to legal proceedings. ARTICLE 7 Liability The liability of the Agency shall be governed by Article 97(1), (3) and (5) of the Regulation. ARTICLE 8 Court of Justice of the European Union Switzerland shall recognise the jurisdiction of the Court of Justice of the European Union over the Agency, as provided for in Article 97(2) and (4) of the Regulation. & /en 6  ARTICLE 9 Privileges and immunities Switzerland shall grant to the Agency and its staff, within the framework of their official functions for the Agency, the privileges and immunities provided for in Annex II, which are based on Articles 1 to 6, 10 to 15, and 17 and 18 of the Protocol (No 7) on the privileges and immunities of the European Union, annexed to the Treaty on the Functioning of the European Union (hereinafter referred to as "Protocol (No 7)"). References to the corresponding articles of that Protocol are indicated between brackets for information. ARTICLE 10 Temporary staff and seconded officials and experts By way of derogation from Article 12(2)(a) of the Conditions of Employment of Other Servants of the European Union, laid down in Regulation No 31 (EEC), 11 (EAEC), laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community1, the Agency may, if it so decides, engage under contract Swiss nationals that enjoy their full rights as citizens. The Agency may accept the secondment of experts by Switzerland. 1 OJ 45, 14.6.1962, p. 1385, including any subsequent amendments. & /en 7  ARTICLE 11 Prevention of fraud The provisions with regard to Article 95 of the Regulation relating to financial control by the Union in Switzerland concerning the participants in the activities of the Agency are set out in Annex III. ARTICLE 12 Committee 1. A Committee, composed of representatives of the European Commission and Switzerland, shall monitor the proper implementation of this Agreement and ensure a continuous process of information provision and exchange of views in this respect. It shall meet upon request by either Switzerland or the European Commission. The Administrative Board of the Agency shall be informed about the work of the Committee. The representatives of the European Commission may be accompanied by representatives of the Agency. 2. Information about planned Union legislation, which either directly affects or amends the Regulation or which is expected to have implications for the financial contribution laid down in Article 4 of this Agreement, shall be shared and an exchange of views thereon shall take place in the Committee. & /en 8 3. In conformity with the respective internal procedures of the Contracting Parties, the Committee may adopt a decision amending the Annexes to this Agreement. 4. In the event of an amendment to Articles 1 to 6, Articles10 to 15, or Articles 17 or 18 of the Protocol (No 7), the Committee shall amend Annex II accordingly. ARTICLE 13 Settlement of disputes Any dispute concerning the interpretation or application of this Agreement shall be settled through consultations within the Committee referred to in Article 12. ARTICLE 14 Annexes The Annexes to this Agreement shall form an integral part of this Agreement. & /en 9  ARTICLE 15 Entry into force 1. This Agreement shall be ratified or approved by the Contracting Parties in accordance with their own procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary to the entry into force of this Agreement. 2. This Agreement shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; & /en 10 (f) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (i) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (j) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (l) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; (m) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation on Switzerland, of the other part, on the participation of the Swiss Confederation in Union programmes. & /en 11 3. Notwithstanding paragraph 1, the Contracting Parties agree to apply this Agreement provisionally, in accordance with their respective internal procedures and legislation, as from 1 January 2026, if the date of signature of this Agreement is before 1 July 2026, or as from 1 January of the year following its signature, if the date of signature of this Agreement is after 30 June 2026. ARTICLE 16 Revision This Agreement may be amended at any time by mutual agreement of the Contracting Parties. ARTICLE 17 Termination and validity 1. This Agreement shall be concluded for an unlimited period. 2. Each Contracting Party may, after consultations within the Committee referred to in Article 12, terminate this Agreement by notifying the other Contracting Party. The Agreement shall cease to apply six months after the date of receipt of such notification. & /en 12 3. This Agreement shall cease to be in force on the date on which the Cooperation Agreement ceases to be in force, and a Protocol to the Agreement on Switzerland's participation in Union programmes does not provide for Switzerland's participation in the Agency. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Agreement. (Signature Block, to the effect of, in all 24 EU languages: “For the European Union” and “For the Swiss Confederation“) & /en 13  ANNEX I FINANCIAL CONTRIBUTION OF SWITZERLAND TO THE EUROPEAN UNION AGENCY FOR THE SPACE PROGRAMME 1. The financial contribution of Switzerland to the revenue of the Agency for year N, as referred to in the Regulation, shall take the form of the sum of: (a) an operational contribution; and (b) a participation fee. The operational contribution shall be based on a contribution key defined as the ratio of the gross domestic product (hereinafter referred to as "GDP") of Switzerland at market prices to the GDP of the Union at market prices. For that purpose, the figures for GDPs at market prices of the Contracting Parties shall be the latest such figures available as of 1 January of the year in which the annual payment is made, as provided by the Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics, done at Luxembourg on 26 October 2004. If that Agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development (OECD). & /en 1  The operational contribution shall be calculated by applying the contribution key to the parts of the authorised Agency's budget relevant for Switzerland's participation, as referred to in the Regulation, for year N. The annual participation fee shall be a percentage of the annual operational contribution as calculated in accordance with the previous subparagraph. The annual participation fee shall have the following values: – in 2026: 2 % – in 2027: 3 % – in 2028 and subsequent years: 4 %. As of 2028 the level of the participation fee may be adjusted by the Committee, in accordance with Article 12(3) of this Agreement. 2. The financial contribution shall be made in Euro. 3. The travel and subsistence expenses of representatives and experts from Switzerland in connection with their participation in meetings organised by the Agency in conjunction with the implementation of the Agency's works shall be reimbursed by the Agency on the same basis and in accordance with the procedures currently in force for experts from the Member States of the Union. & /en 2 4. In accordance with this Agreement, the European Commission shall issue to Switzerland requests for funds corresponding to the Swiss contribution to the budget of the Agency. Switzerland shall pay its financial contribution no later than 45 days after receipt of the request for funds. 5. Any delay in the payment of the contribution of Switzerland shall give rise to the payment of default interest by Switzerland on the outstanding amount from the due date. The interest rate shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first day of the month in which the deadline falls, increased by 3,5 percentage points. ________________ & /en 3  ANNEX II PRIVILEGES AND IMMUNITIES1 ARTICLE 1 (corresponding to Article 1 of Protocol (No 7)) The premises and buildings of the Agency shall be inviolable. They shall be exempt from search, requisition, confiscation or expropriation. The property and assets of the Agency shall not be the subject of any administrative or legal measure of constraint without the authorisation of the Court of Justice of the European Union. ARTICLE 2 (corresponding to Article 2 of Protocol (No 7)) The archives of the Agency shall be inviolable. 1 References to the corresponding articles of the Protocol are indicated between brackets for information. & /en 1  ARTICLE 3 (corresponding to Articles 3 and 4 of Protocol (No 7)) 1. The Agency, its assets, revenues and other property shall be exempt from all direct taxes. 2. Goods and services exported to the Agency for its official use from Switzerland or provided to the Agency in Switzerland shall not be subject to any indirect duties and taxes. 3. Exemption from VAT shall be granted if the actual purchase price of the goods and services mentioned in the invoice or corresponding document totals at least one hundred Swiss francs (inclusive of tax). The Agency shall be exempt from all customs duties, prohibitions and restrictions on imports and exports in respect of articles intended for its official use; articles so imported shall not be disposed of, whether or not in return for payment, in Switzerland, except under conditions approved by the government of Switzerland. 4. The exemption from VAT, excise duty and any other indirect taxes shall be granted by way of remit on presentation to the goods or services supplier of the Swiss forms provided for the purpose. 5. No exemption shall be granted in respect of taxes and dues, which amount merely to charges for public utility services. & /en 2  ARTICLE 4 (corresponding to Article 5 of Protocol (No 7)) For its official communications and the transmission of all its documents, the Agency shall enjoy in Switzerland the treatment accorded by that State to diplomatic missions. Official correspondence and other official communications of the Agency shall not be subject to censorship. ARTICLE 5 (corresponding to Article 6 of Protocol (No 7)) The laissez-passer of the Union issued to members and servants of the Agency shall be recognised as valid travel documents within the territory of Switzerland. Those laissez-passer shall be issued to officials and other servants under conditions laid down in the Staff Regulations of Officials and the Conditions of Employment of other servants of the Union (Regulation No 31 (EEC), 11 (EAEC), laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community (OJ 45, 14.6.1962, p. 1385), including any subsequent amendments). & /en 3  ARTICLE 6 (corresponding to Article 10 of Protocol (No 7)) Representatives of Member States of the Union taking part in the work of the Agency, their advisers and technical experts shall, in the performance of their duties and during their travel to and from the place of meeting in Switzerland, enjoy the customary privileges, immunities and facilities. ARTICLE 7 (corresponding to Article 11 of Protocol (No 7)) In the territory of Switzerland and whatever their nationality, officials and other servants of the Agency shall: (a) subject to the provisions of the Treaties relating, on the one hand, to the rules on the liability of officials and other servants towards the Union and, on the other hand, to the jurisdiction of the Court of Justice of the European Union in disputes between the Union and its officials and other servants, be immune from legal proceedings in respect of acts performed by them in their official capacity, including their words spoken or written. They shall continue to enjoy this immunity after they have ceased to hold office; (b) together with their spouses and dependent members of their families, not be subject to immigration restrictions or to formalities for the registration of aliens; & /en 4 (c) in respect of currency or exchange regulations, be accorded the same facilities as are customarily accorded to officials of international organisations; (d) enjoy the right to import free of duty their furniture and effects at the time of first taking up their post in Switzerland, and the right to re-export free of duty their furniture and effects, on termination of their duties in that country, subject in either case to the conditions considered to be necessary by the government of Switzerland; (e) have the right to import free of duty a motor car for their personal use, acquired either in the country of their last residence or in the country of which they are nationals on the terms ruling in the home market in that country, and to re-export it free of duty, subject in either case to the conditions considered to be necessary by the government of Switzerland. ARTICLE 8 (corresponding to Article 12 of Protocol (No 7)) Officials and other servants of the Agency shall be liable to a tax for the benefit of the Union on salaries, wages and emoluments paid to them by the Agency, in accordance with the conditions and procedure laid down by Union law. They shall be exempt from Swiss federal, cantonal and communal taxes on salaries, wages and emoluments paid by the Agency. & /en 5  ARTICLE 9 (corresponding to Article 13 of Protocol (No 7)) In the application of income tax, wealth tax and death duties and in the application of conventions on the avoidance of double taxation concluded between Switzerland and Member States of the Union, officials and other servants of the Agency who, solely by reason of the performance of their duties in the service of the Agency, establish their residence in the territory of Switzerland for tax purposes at the time of entering the service of the Agency, shall be considered, both in Switzerland and in the country of domicile for tax purposes, as having maintained their domicile in the latter country provided that it is a Member State of the Union. This provision shall also apply to a spouse, to the extent that the latter is not separately engaged in a gainful occupation, and to children dependent on and in the care of the persons referred to in this Article. Movable property belonging to persons referred to in the first paragraph and situated in Switzerland shall be exempt from death duties in Switzerland; such property shall, for the assessment of such duty, be considered as being in the country of domicile for tax purposes, subject to the rights of third countries and to the possible application of provisions of international conventions on double taxation. Any domicile acquired solely by reason of the performance of duties in the service of other international organisations shall not be taken into consideration in applying the provisions of this Article. & /en 6  ARTICLE 10 (corresponding to Article 14 of Protocol (No 7)) Union law shall lay down the scheme of social security benefits for officials and other servants of the Union. Officials and other servants of the Agency shall therefore not be obliged to be members of the Swiss social security system provided they are already covered by the scheme of social security benefits for officials and other servants of the Union. Family members of members of staff of the Agency, forming part of their households, shall be covered by the scheme of social security benefits for officials and other servants of the Union provided that they are not employed by an employer other than the Agency and provided that they do not receive social security benefits from a Member State of the Union or from Switzerland. ARTICLE 11 (corresponding to Article 15 of Protocol (No 7)) Union law shall determine the categories of officials and other servants of the Agency to whom the provisions of Article 7, Article 8 and Article 9 shall apply, in whole or in part. The names, grades and addresses of officials and other servants included in such categories shall be communicated periodically to Switzerland. & /en 7  ARTICLE 12 (corresponding to Article 17 of Protocol (No 7)) Privileges, immunities and facilities shall be accorded to officials and other servants of the Agency solely in the interests of the Agency. The Agency shall be required to waive the immunity accorded to an official or other servant wherever that Agency considers that the waiver of such immunity is not contrary to the interests of the Agency. ARTICLE 13 (corresponding to Article 18 of Protocol (No 7)) The Agency shall, for the purpose of applying this Annex, cooperate with the responsible authorities of Switzerland or of the Member States of the Union concerned. ________________ & /en 8  ANNEX III FINANCIAL CONTROL AS REGARDS SWISS PARTICIPANTS IN ACTIVITIES OF THE AGENCY ARTICLE 1 Direct communication The Agency and the European Commission shall communicate directly with all persons or entities established in Switzerland and participating in activities of the Agency as contractors, as participants in Agency programmes, as recipients of payments from the Agency or from the Union budget, or as subcontractors. Such persons may send directly to the European Commission and to the Agency all relevant information and documentation which they are required to submit on the basis of the instruments referred to in this Agreement and of contracts or agreements concluded and any decisions taken pursuant to them. & /en 1  ARTICLE 2 Audits 1. In accordance with Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council1, with Commission Delegated Regulation (EU) 2019/7152 and with the other instruments referred to in this Agreement, contracts or agreements concluded and decisions taken with beneficiaries established in Switzerland may provide for scientific, financial, technological or other audits to be conducted at any time on the premises of the beneficiaries and of their subcontractors by the Agency and European Commission officials or by other persons authorised by the Agency and the European Commission. 2. The Agency and European Commission officials and other persons mandated by the Agency and the European Commission shall have appropriate access to sites, works and documents and to all the information required in order to carry out such audits, including in electronic form. That right of access shall be stated explicitly in the contracts or agreements concluded to implement the instruments referred to in this Agreement. 3. The European Court of Auditors shall have the same rights as the European Commission. 1 Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast) (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj). 2 Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (OJ L 122, 10.5.2019, p. 1). & /en 2 4. Audits may continue to take place for five years after the expiry of this Agreement or under the terms of the contracts or agreements concluded and the decisions taken. 5. The competent Swiss audit authority shall be informed in advance of audits conducted on Swiss territory. The provision of this information shall not be a legal condition for the carrying out of such audits. ARTICLE 3 On-the-spot checks 1. Under this Agreement, the European Commission and the European Anti-Fraud Office (OLAF) shall be authorised to carry out on-the-spot checks and inspections on Swiss territory, under the terms and conditions set out in Council Regulation (Euratom, EC) No 2185/961. 2. On-the-spot checks and inspections shall be prepared and conducted by the European Commission in close cooperation with the competent Swiss audit authority or with other competent Swiss authorities appointed by the competent Swiss audit authority, which shall be notified in good time of the object, purpose and legal basis of those checks and inspections, in order that they can provide all requisite help. To that end, officials of the competent Swiss authorities may participate in the on-the-spot checks and inspections. 1 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2, ELI: http://data.europa.eu/eli/reg/1996/2185/oj). & /en 3 3. If the Swiss authorities concerned so wish, on-the-spot checks and inspections may be carried out jointly by the European Commission and those authorities. 4. Where participants in the programme resist an on-the-spot check or inspection, the Swiss authorities, acting in accordance with national rules, shall give the European Commission inspectors such assistance as they need to allow them to discharge their duty in carrying out an on-the-spot check or inspection. 5. The European Commission shall report as soon as possible to the competent Swiss audit authority any fact or suspicion relating to an irregularity which has come to its notice in the course of the on-the-spot check or inspection. In any event, the European Commission is required to inform the competent Swiss audit authority of the result of such checks and inspections. ARTICLE 4 Information and consultation 1. For the purposes of the proper implementation of this Annex, the competent Swiss and Union authorities shall exchange information regularly and, at the request of one of the Contracting Parties, shall conduct consultations. 2. The competent Swiss authorities shall inform the Agency and the European Commission without delay of any fact or suspicion which has come to their notice relating to an irregularity in connection with the conclusion and implementation of the contracts or agreements concluded in application of the instruments referred to in this Agreement. & /en 4  ARTICLE 5 Confidentiality Information communicated or acquired in any form whatever pursuant to this Annex shall be covered by professional secrecy and protected in the same way as similar information is protected by Swiss law and by the corresponding provisions applicable to Union institutions. Such information shall not be communicated to persons other than those within the Union institutions concerned, in the Member States, or in Switzerland whose functions require them to know it, nor may it be used for purposes other than to ensure the effective protection of the financial interests of the Contracting Parties. ARTICLE 6 Administrative measures and penalties Without prejudice to the application of Swiss criminal law, the Agency or the European Commission may impose administrative measures and penalties in accordance with Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council and with Council Regulation (EC, Euratom) No 2988/951. 1 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1). & /en 5  ARTICLE 7 Recovery and enforcement A decision taken by the Agency or the European Commission within the scope of this Agreement which imposes a pecuniary obligation on persons other than States shall be enforceable in Switzerland. The order for its enforcement shall be appended to such decision, without any formality other than a verification of the authenticity of that decision by the national authority designated for this purpose by the Government of Switzerland. Enforcement shall take place in accordance with Swiss law and Rules of Procedure. Those enforceable decisions shall be considered enforceable titles in the sense of the Federal Act on Debt Enforcement and Bankruptcy (DEBA), and not subject to review on the merits before Swiss courts. The Government of Switzerland shall make known its designated national authority for the purposes of this Article to the Agency, the European Commission and to the Court of Justice of the European Union. Judgments given by the Court of Justice of the European Union pursuant to an arbitration clause shall be enforceable on the same terms. The legality of an enforcement order shall be subject to control by the Court of Justice of the European Union. However, Swiss Courts shall have jurisdiction over complaints that enforcement is being carried out in an irregular manner. ________________ & /en 6 EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final 2025/0163 (NLE) Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  EXPLANATORY MEMORANDUM 1. CONTEXT OF THE PROPOSAL • Reasons for and objectives of the proposal The European Union and the Swiss Confederation (hereafter also referred to as “Switzerland”) are closely intertwined from an economic, historical, cultural, social and political perspective. The Union is Switzerland’s largest trading partner, while Switzerland is the Union’s fourth largest trading partner. Over 1.5 million Union citizens live in Switzerland and just under 450 000 Swiss nationals live in the Union. Every day several hundred thousand frontier workers cross the EU-Swiss border in both directions. The Union and Switzerland are tied together by multiple bilateral agreements. Through agreements on the free movement of persons, land transport, air transport, trade in agricultural products and mutual recognition in relation to conformity assessment, Switzerland takes part in the Union’s internal market1. Through the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation’s association with the implementation, application and development of the Schengen acquis, Switzerland is also a Schengen associated country. During the COVID-19 pandemic, cooperation between the Union and Switzerland on cross-border health threats increased. Switzerland has also traditionally been a strong partner in research and innovation. The country has collaborated with the Union on numerous Union funding programmes focused notably on research, innovation, and education. While the EU-Switzerland relationship is close, it has also been hampered by several longstanding structural problems. To solve those problems, between 2014 and 2021, the Union and Switzerland conducted negotiations on an Institutional Framework Agreement. The Institutional Framework Agreement would have also provided the governance framework for additional agreements in fields related to the internal market in which Switzerland participates, including agreements for which negotiations had been authorised by the Council, notably on food safety (2003 and 2008) and electricity (2006). In addition, it would have provided the governance framework for the agreement on health, for which negotiations had been authorised by the Council in 2008. Negotiators reached an agreement on a draft Institutional Framework Agreement text at technical level in November 2018. In reaction to the Federal Council’s refusal to endorse the draft text, negotiations on the other agreements came to a halt as both the Council, in its conclusions of 19 February 2019, and the European Parliament, in its recommendation of 26 March 2019, made the conclusion of new internal market access agreements or improved conditions under existing agreements conditional on the conclusion of the Institutional Framework Agreement. On 26 May 2021, despite further attempts to find solutions, the Swiss Federal Council decided to unilaterally terminate the negotiations on the Institutional Framework Agreement. Switzerland’s unilateral decision brought the bilateral cooperation in the areas of research, innovation and education to a temporary halt. 1 Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road, Agreement between the European Community and the Swiss Confederation Air Transport, Agreement between the European Community, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment, Agreement between the European Community and the Swiss Confederation on trade in agricultural products, all signed on 21 June 1999 (OJ L 114, 30.4.2002, p. 1). EN 1 EN  Following the breakdown of the negotiations on the Institutional Framework Agreement, the European Commission and Switzerland initiated exploratory talks in March 2022 to discuss the future of EU-Switzerland relations. These talks led to a Common Understanding that recorded both sides’ political understanding on the way forward for a future negotiation and identified the components and parameters of a broad negotiating package, as well as landing zones and solutions on key institutional and sectoral points. The Common Understanding was endorsed by the Swiss Federal Council and by the European Commission in November 2023. Both sides committed to use it as a basis for seeking their negotiating mandates and recorded their ambition of concluding the negotiations in the course of 2024. Consequently, on 20 December 2023, the Commission adopted a Recommendation for a Council decision to authorise negotiations on the broad package of measures identified and defined during the exploratory talks2. The overall objective of these negotiations was to modernise and strengthen bilateral relations between the Union and Switzerland, ensure fair competition between Union and Swiss companies operating within the internal market, and safeguard the rights of Union citizens in Switzerland, including preventing discrimination between citizens of different Member States. This would allow citizens, businesses, and researchers on both sides to fully benefit from the geographical proximity, shared values, and economic links between the Union and Switzerland. In parallel, the Federal Council undertook the corresponding preparatory work on the Swiss side. Following the completion of the relevant processes in Switzerland, the Council adopted a decision on 12 March 2024, authorising the Commission to launch negotiations on the broad package of measures, along with detailed negotiating directives3. The negotiations on the broad package were launched on 18 March 2024 by the President of the European Commission, Ursula von der Leyen, and the then President of the Swiss Confederation, Viola Amherd. The Commission conducted the negotiations in consultation with the Council, including the General Affairs Council and the EFTA Working Party as the special committee appointed by the Council for the purpose of negotiations with Switzerland. Due regard has been given to the resolution of the European Parliament of 4 October 2023 and the Commission kept the European Parliament fully informed in accordance with Article 218(10) of the Treaty on the Functioning of the European Union (TFEU). After nine months of intense negotiations, Presidents von der Leyen and Amherd announced the successful completion of discussions on all elements of the broad package on 20 December 2024. The broad package includes the update of five agreements that presently give Switzerland access to the Union’s internal market; the update of the dispute settlement mechanism in the Agreement on trade in agricultural products, along the lines of the established practice in the Union’s and Switzerland’s trade agreements with other partners; a new protocol on food safety that will establish a Common Food Safety Area covering all dimensions of the food chain and replacing the sanitary and phytosanitary annexes to the Agreement on trade in agricultural products; a new agreement on electricity that will allow the participation of Switzerland in the Union’s internal electricity market; a new agreement on health that will allow Switzerland to take part in Union mechanisms and bodies addressing 2 COM(2023) 798 final, 20.12.2023. 3 Council Decision (EU, Euratom) 2024/995 of 12 March 2024 authorising the opening of negotiations with the Swiss Confederation on institutional provisions in agreements between the European Union and the Swiss Confederation related to the internal market, on an agreement on the Swiss Confederation’s participation in Union programmes and on an agreement that forms the basis for the Swiss Confederation’s permanent contribution to the Union’s cohesion (OJ L, 2024/995, 26.3.2024). EN 2 EN  serious cross-border threats to health, notably the European Centre for Disease Prevention and Control and the Early Warning and Response System; a new agreement on Switzerland’s permanent and fair financial contribution to economic and social cohesion within the Union, reflecting the level of partnership and cooperation between the parties; and a new agreement that will allow Switzerland to participate in several Union programmes open to association of third countries: Horizon Europe, Euratom Research and Training, ITER/F4E (Fusion for Energy), Digital Europe, Erasmus+, as well as EU4Health, a programme that aims to complement the cooperation established in the health agreement that the two partners negotiated as part of the same broad package. In addition to the elements listed above, the broad package also includes a separate protocol on parliamentary cooperation. This proposal concerns the signature, on behalf of the European Union, of the following agreements and instruments within the broad package: – Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; – Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; – Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; – Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; – State aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport – Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road; – Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road; – State aid Protocol to the Agreement between the European Community and the Swiss confederation on the Carriage of Goods and Passengers by Rail and Road; – Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; – Institutional protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; – Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; – Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area; – Agreement between the European Union and the Swiss Confederation on electricity; – Agreement between the European Union and the Swiss Confederation on health; – Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union; EN 3 EN  – Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme; – Protocol between the European Union and the Swiss Confederation on parliamentary cooperation. This proposal also concerns the provisional application of the agreement on Switzerland’s participation in the European Union Agency for the Space Programme as that agreement foresees its provisional application as from 1 January 2026 or 1 January of the year following its signature, depending on whether or not that signature takes place before 1 July 2026. The abovementioned agreements and protocols are accompanied by a Joint Declaration by the European Union and the Swiss Confederation on the establishment of a high-level dialogue on the broad bilateral package and the possible further development of the bilateral relations between the European Union and Switzerland, which should be approved and signed on behalf of the Union. While the agreement on Switzerland’s participation in Union programmes forms an integral part of the broader package negotiated between the two partners in 2024, the Commission decided to expedite the proposal for its signature with the aim of starting its provisional application from 1 January 2025. The Commission made separate proposals to that effect4. The proposed approach will allow to give effect to the transitional arrangements that the Commission granted to Switzerland during the negotiations of the broad package. At the same time, it does not affect the broad package approach established by the Common Understanding and confirmed by the Council mandate. The agreement on Switzerland’s participation in Union programmes includes a sunset clause, which provides that the provisional application of that agreement will cease if Switzerland does not complete its procedures necessary for the entry into force of the package by the end of 2028. The Commission proposal on the signing of the agreement on Switzerland’s participation in Union programmes therefore provides that it will be concluded as part of the broad package of agreements that were the subject of the negotiations conducted in 2024. • Consistency with existing policy provisions in the policy area The introduction of institutional provisions will ensure a more consistent and uniform application of the Union acquis in the parts of the internal market in which Switzerland participates or in policy areas in which Switzerland has committed to dynamic alignment, to the principle of uniform interpretation and application, and to dispute settlement with a role for the Court of Justice of the European Union for matters of Union law. The principles of non-discrimination of Union citizens and a level playing field between Union and Swiss companies is at the heart of the various agreements. • Consistency with other Union policies The broad package of the EU-Switzerland agreements fully respects the Treaties and preserves the integrity and the autonomy of the Union legal order. It promotes the values, objectives and interests of the Union, and ensures consistency, effectiveness and continuity of its policies and actions. 4 COM(2025) 159 final and COM(2025) 160 final, 9.4.2025. EN 4 EN  The institutional and substantive changes to the existing agreements, as well as, where relevant, the introduction of State aid rules, and the new agreements will help achieve the Union’s policy objectives in the following policy areas: – internal market, – competition, – employment and social affairs, – free movement of persons, – transport, – agriculture, – food safety and quality, – animals and animal products, – plants and plant products, – consumer protection, – energy, – health, – trade. In addition, the agreement associating Switzerland to Union programmes and the agreement on Switzerland’s participation in the European Union Agency for the Space Programme will contribute to furthering the Union’s policy objectives in the following policy areas: – education and training, – research and innovation, – digital economy and society, – health, – space. The Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union will contribute to the achievement of the Union’s policy objectives in relation to its economic and social cohesion. By ensuring that Switzerland makes an adequate financial contribution to the management and operation of the agencies and bodies in which it participates, and the information systems to which it has access, the Union’s financial interests will be protected. The forum for cooperation and dialogue between members of the European Parliament and the Swiss Federal Assembly established by a dedicated protocol is in line with the practice in association and strategic partnership agreements the Union concludes with third countries. While several agreements and protocols covered by this proposal rely on the technical and digital systems for their implementation, the proposal does not introduce any requirements mandating changes with respect to the use or architecture of these systems. The “digital by default” principle remains unaffected by the proposal. EN 5 EN  2. LEGAL BASIS Together, the agreements and protocols that are the subject of the proposed decision are intrinsically linked and constitute a coherent whole and lay down the architecture of a reinforced and comprehensive partnership in a broad range of areas covered by the Treaties, based on an appropriate balance of rights and obligations. Hence, the appropriate substantive legal basis for the proposed Council Decision on the signing of the aforementioned agreements and protocols is Article 217 TFEU. The procedural legal basis is Article 218(5) TFEU, read in conjunction with the second subparagraph of Article 218(8) TFEU. Thus, the legal basis for the proposed Council Decision is Article 217 TFEU, read in conjunction with Article 218(5) TFEU and the second subparagraph of Article 218(8) TFEU. The Commission considers that the Union has competence in all areas covered by the agreements and protocols which are the subject of this proposal and that therefore the agreements and protocols should be signed by the Union alone. 3. BUDGETARY IMPLICATIONS In the agreements in fields related to the internal market in which Switzerland participates, the agreement on health and the agreement on the European Union Agency for the Space Programme, Switzerland has agreed to make financial contributions to the Union budget for the management and operation of the agencies and bodies in which it participates, and the information systems to which it has access, taking into account the scope of each agreement. In most cases, the payment modalities are laid out in dedicated annexes, which follow the same model. A set of standard provisions common to the agreements and protocols concerned require that Switzerland pays an annual financial contribution due at the dates specified in the calls for funds issued by the European Commission. This contribution will be composed of the sum of an operational contribution and a participation fee. Where other financing arrangements already exist for agencies or information systems, these are maintained. The specific financing arrangements for the agencies and information systems are described in the section that details the provisions of the agreements. The Legislative Financial Statement presented with this proposal illustrates the future budgetary implications of these arrangements and their payment modalities. 4. OTHER ELEMENTS • Implementation by bodies established under the agreements and protocols The package of agreements bound together by similar institutional provisions and/or other interlinkages. All agreements covered by the broad package include Joint Committees consisting of representatives of the Union and Switzerland, which largely follow the same model. All agreements in fields related to the internal market, the agreement on trade in agricultural products, the agreement on health and the agreement on Switzerland’s regular financial contribution to the Union’s social and economic cohesion allow for the possibility to set up working groups. Several agreements contain dispute settlement mechanisms, based on the same model, which ensures that breaches of obligations by one of the Parties under the agreement concerned or across the package of agreements can be addressed. Finally, the protocol on parliamentary cooperation sets up a Joint Parliamentary Committee composed of representatives of the European Parliament and of the Swiss Federal Assembly. EN 6 EN  • Detailed explanation of the specific provisions of the proposal Composition of the broad package and nature of the agreements and protocols The broad package consists of several agreements and protocols that have different purposes and setups, even if they share common elements. The package notably includes agreements and a protocol in fields related to the internal market in which Switzerland participates, an agreement on trade in agricultural products, cooperation agreements, and protocol on parliamentary cooperation. Several of these agreements and protocols are accompanied by joint declarations. The package is completed by a joint declaration on the establishment of a high-level dialogue between the Union and Switzerland. Agreements in fields related to the internal market in which Switzerland participates As a result of institutional changes, four out of five existing agreements will be considered as agreements in fields related to the internal market in which Switzerland participates, which has notably implications as regards their interconnection. A new agreement and a new protocol will also have this status. Existing agreements that will be considered as agreements in fields related to the internal market – Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons (hereinafter “Free movement of persons agreement”), – Agreement between the European Community and the Swiss Confederation on air transport (hereinafter “Air transport agreement”), – Agreement between the Swiss Confederation and the European Community on the Carriage of Goods and Passengers by Rail and Road (hereinafter "“Land transport agreement”), – Agreement between the Swiss Confederation and the European Community on mutual recognition in relation to conformity assessment (hereinafter “Mutual recognition agreement”). New agreement and protocol that will be considered as agreements in fields related to the internal market – Agreement between the European Union and the Swiss Confederation on electricity (hereinafter “Electricity agreement”), – Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area (hereinafter “Protocol on the Common Food Safety Area”). Agreement on trade in agricultural products – Agreement between the European Community and the Swiss Confederation on trade in agricultural products (hereinafter “Agreement on trade in agricultural products”). The amended agreement will no longer be considered as an agreement in a field related to the internal market in which Switzerland participates. Cooperation agreements Several agreements can be considered as cooperation agreements and thus they do not constitute agreements in fields related to the internal market in which Switzerland participates. Their setup and content differ depending on their purpose. These agreements are: EN 7 EN  – Agreement between the European Union and the Swiss Confederation on health (hereinafter “Health agreement”), – Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union (hereinafter “Agreement on cohesion”), – Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme (hereinafter “Agreement on the Agency for the Space Programme”), – Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes (hereinafter “Agreement on Union programmes”). The Agreement on Union programmes will not be described in detail as its signing is the subject of separate proposals5. Protocol on parliamentary cooperation The Protocol between the European Union and the Swiss Confederation on parliamentary cooperation (hereinafter “Protocol on parliamentary cooperation”) provides a legal basis and mechanisms for political cooperation between the European Parliament and the Swiss Federal Assembly. High-level dialogue The “Joint Declaration by the European Union and the Swiss Confederation on the establishment of a high-level dialogue on the broad bilateral package and the possible further development of the bilateral relations between the European Union and Switzerland” will provide a framework for political discussions between the European Commissioner and Swiss Federal Councillor in charge of EU-Swiss relations. High-level dialogues are a common tool the Union relies on to provide impulses to cooperation with third countries in a specific field. Agreements in fields related to the internal market in which Switzerland participates Institutional provisions Identical institutional provisions have been included in all agreements in fields related to the internal market in which Switzerland participates, subject to technically justified adaptations, either as part of the new agreements or by means of institutional protocols. The Health agreement applies the same institutional solutions by analogy. The institutional provisions comprise the following elements: (1) uniform interpretation and application: an obligation to interpret and apply the agreements concerned uniformly within the internal market, and, to the extent that they include concepts of Union law, in conformity with the case-law of the Court of Justice of the European Union, both prior or subsequent to the signature of the corresponding agreement; 5 COM(2025) 159 final and COM(2025) 160 final, 9.4.2025. EN 8 EN  (2) dynamic alignment: an obligation, subject to limited exceptions, for the parties to integrate into the agreements concerned all legal acts of the Union that fall under their scope; due to its monist legal order, these acts shall become, by their integration into the agreements, part of the Swiss legal order. In exchange, Switzerland will be involved during the preparation of the acts to be integrated into the agreements concerned, for instance Switzerland will participate in the corresponding committees and groups of experts without the right to vote. For historical reasons, in the case of the agreements on mutual recognition and on land transport, Switzerland is obliged to adopt provisions of national law achieving the result to be attained by those acts; (3) dispute settlement: an effective mechanism for the resolution of disputes based on third-party arbitration; the arbitral tribunal is under an obligation to refer questions regarding provisions of the agreements that involve concepts of Union law to the Court of Justice of the European Union, whose opinions are legally binding on the arbitral tribunal; (4) interconnection between the agreements: the possibility for the parties to take proportionate and effective compensatory measures as part of a procedure to settle disputes in case where a party considers that the other party has not complied with a decision of the arbitral tribunal; these compensatory measures can be taken in either the agreement concerned or in any other agreement related to the internal market, including the suspension in part or in full of such agreement or agreements. State aid provisions In addition, substantive and procedural rules, including surveillance and enforcement mechanisms, equivalent to the ones applied within the Union are included in those agreements in which a level playing for competition on the internal market needs to be ensured, notably the agreements on air transport, land transport and electricity. Such State aid rules are spelled out either in the main body of the agreement, as is the case for the Electricity agreement, or in dedicated protocols, as is the case for the agreements on air transport and land transport. In both cases, general and sectoral State aid rules that complement the above-mentioned framework are spelled out in dedicated annexes. Participation in agencies and information systems Switzerland will gain additional access to agencies and/or information systems under the following agreements in fields related to the internal market in which Switzerland participates: the Free movement of persons agreement, the Mutual recognition agreement, the Protocol on the Common Food Safety Area and the Electricity agreement. Switzerland will also gain additional access to an agency and information systems under the Health agreement. The above-mentioned standard provisions will apply to the financing arrangements linked to the additional access to agencies and information systems Switzerland will gain via the broad package. In principle, these standard provisions should apply to the financing arrangements linked to any further access to agencies, bodies, information systems and other activities to which Switzerland may gain in the future under agreements that are part of the package or under further agreements the Union and Switzerland may conclude. The operational contribution that will be part of Switzerland’s annual financial contribution will be based on a contribution key defined as the ratio of the Gross Domestic Product (GDP) of EN 9 EN  Switzerland at market prices to the GDP of the Union at market prices6. The contribution key will be applied to the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question, subject, where appropriate, to adjustments that take into account the scope of an agreement. The operational contribution for the information systems and other activities will be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget (such as work programmes or contracts). The annual participation fee will amount to 4% of the operational contribution. All reference amounts will be based on commitment appropriations. The agreements that will grant Switzerland access to agencies also include an appendix on the rights, privileges and immunities of those agencies and their staff, which follow a standard model and reflect the provisions of Protocol (No 7) on the privileges and immunities of the European Union. Free movement of persons agreement The updated Free movement of persons agreement will provide for dynamic alignment by Switzerland on current and future Union legal acts in the area of free movement of persons and the posting of workers. The amending protocol to the Free movement of persons agreement makes changes to its structure. In its current version, the agreement includes a significant number of substantive provisions in its Annex I. That annex is replaced by a list of Union legal acts to which Switzerland will dynamically align and that will cover, to a large extent, the substance of those provisions. The replacement of the substantive provisions of the agreement by the integration of the Union acquis will be accompanied by a number of exceptions to dynamic alignment in the following areas: prior notification period and controls, financial guarantees and sanctions on service providers, proof of self-employment, acquisition of permanent residence, purchase of immovable property, identity cards, expulsions and certain matters of cantonal law concerning the coordination of social security schemes. Some of these exceptions are already included in the existing agreement. The existing provision on the rights of students will be revised, so that it is no longer possible for the Parties to discriminate against the other Party’s students as regards tuition fees, as well as associated public support mechanisms, in universities principally funded with public funds. The current level of access of Union students to those universities in Switzerland will be guaranteed. Moreover, a non-regression clause stipulates that Switzerland will not be obliged to integrate new acquis regarding the posting of workers if its effect would be to meaningfully weaken or reduce the level of protection of posted workers with regard to the terms and conditions of employment. Via a protocol attached to the updated agreement, the parties will take a commitment that Union and Swiss rules on the granting of long-term residence permits are applied in a non- 6 The respective GDPs to be applied will be the latest available as of 1 January of the year in which the annual payment is made as provided by Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics (OJ L 90, 28.3.2006, p. 2). EN 10 EN  discriminatory manner, notably regarding the minimum duration of prior residence of five years. The existing safeguard clause will be adapted and aligned with the institutional protocol. It can be activated in case of serious economic or social difficulties triggered by the application of the agreement. If the parties cannot agree on an appropriate, agreed solution to remedy the situation, the party alleging serious economic difficulties may bring the issue to the arbitral tribunal. It will only be able to take safeguard measures if the arbitral tribunal considers that the situation justifies them. Several joint declarations accompanying the agreement clarify the parties’ joint understanding of provisions concerning e.g. the prevention and action against the abuse of rights under the free movement of persons acquis, notification procedures in the context of the taking up of employment, or effective control systems, including Switzerland’s dual enforcement system regarding the provision of services. Under the agreement, Switzerland will have access and will financially contribute in accordance with the standard financial modalities to the following information systems: – the European network of Employment Services (EURES) as established by Regulation (EU) 2016/5897, – the Electronic Exchange of Social Security Information (EESSI) as established by Regulation (EC) No 883/2004 and Regulation (EC) No 987/20098, – the modules of the Internal Market Information system (IMI) as established by Regulation (EU) 1024/20129 relating to the posting of workers, services, professional qualifications, the European Professional Card, Regulated Professions and the Single Digital Gateway. Participation in the EURES platform will promote labour mobility, facilitate the exchange of job vacancies and job seeker profiles and ensure a high-quality matching across languages and national contexts, including through the use of the European Skills, Competences, Qualifications and Occupations classification (ESCO). The existing financing arrangements will continue to apply to Switzerland’s financial contribution to the Mutual Information System on Social Protection (MISSOC), to which it already has access. 7 Regulation (EU) 2016/589 of the European Parliament and of the Council of 13 April 2016 on a European network of employment services (EURES), workers' access to mobility services and the further integration of labour markets, and amending Regulations (EU) No 492/2011 and (EU) No 1296/2013 (OJ L 107, 22.4.2016, p. 1). 8 Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p. 1) and (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems (OJ L 284, 30.10.2009, p. 1). 9 Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (OJ L 316, 14.11.2012, p. 1). EN 11 EN  Air transport agreement The updated Air transport agreement will provide for dynamic alignment by Switzerland on current and future Union legal acts in the area of air transport. The amending protocol to the Air transport agreement does not change the agreement’s objectives and makes limited changes to the main text and the annex to the agreement. Most notable is the mutual exchange of cabotage rights (enabling the respective airlines to fly between two points in a Member State’s or Switzerland’s territory) between the Parties. No additional access to information systems is foreseen. The existing financial modalities regarding Switzerland’s participation in the European Union Aviation Safety Agency (EASA), as established by Regulation (EU) 2018/113910, will continue to apply. The existing arrangements regarding the rights, privileges and immunities of EASA and its staff will be replaced by the above-mentioned model. A protocol on State aid is attached to the agreement and will be accompanied by a joint declaration. Land transport agreement Under the updated Land transport agreement, as in its original version, Switzerland will be obliged to adopt provisions of national law achieving the result to be attained by the Union legal acts listed in the annex to the agreement. The updated agreement will clarify that railway undertakings may operate international passenger rail services between the Union and Switzerland, including international cabotage, under their own responsibility. The amending protocol will integrate relevant Union acquis into the agreement guaranteeing the right to operate international rail freight services in the Union and Switzerland. Switzerland will benefit from certain exceptions. For example, Switzerland will be able to give priority to rail services which are part of the Swiss interval-service timetable. Inversely, the Union or its Member States may give priority on their territories to Union companies operating passenger rail services over a Swiss international passenger rail service that operates a part of the international service under the Swiss interval-service timetable. Switzerland will also have the right to adopt capacity management instruments providing for a minimum number of train paths per hour for defined types of traffic, including freight, regional and long-distance passenger traffic that may also serve an international purpose. It will also have the possibility to oblige passenger transport companies to participate in the Swiss ticketing and price integration system, while guaranteeing pricing freedom to the companies. Swiss competent authorities will also be able to directly award public service contracts in rail transport, subject to specific conditions guaranteeing that the Union’s internal market for the Union’s territory is not affected. 10 Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No 2111/2005, (EC) No 1008/2008, (EU) No 996/2010, (EU) No 376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No 552/2004 and (EC) No 216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No 3922/91 (OJ L 212, 22.8.2018, p. 1). EN 12 EN  While being covered by an exception to dynamic alignment, the existing Swiss system of charges for heavy goods vehicles will be brought closer to the Union’s charging system. Switzerland shall interact with the European Union Agency for Railways as established by Regulation (EU) 2016/79611 as a third country. In line with the applicable Union legislation, and following their approval by its Management Board, the agency shall agree on arrangements with the relevant Swiss authorities detailing the nature and extent of the latter’s participation in the agency’s work. No additional access to information systems is foreseen. The existing financial modalities will continue to apply to Switzerland’s access to TACHOnet, as established by Regulation (EU) No 165/2014 and Commission Implementing Regulation (EU) 2016/6812. A protocol on State aid is attached to the agreement and will be accompanied by a joint declaration. The amending protocol will also be accompanied by a joint declaration. Mutual recognition agreement Under the updated Mutual recognition agreement Switzerland will be obliged to adopt provisions of national law achieving the result to be attained by the Union legal acts listed in the annex to the agreement. Should the scope of the agreement be extended in the future, the additional areas will also be subject to the same approach. The amending protocol to the Mutual recognition agreement only makes limited changes to the main text and the annex to the agreement to better define the agreement’s purpose and scope, the applicable procedures and the role of the parties’ authorities and economic operators, as well as cooperation between the parties. In all areas covered by the agreement’s Annex 1, Switzerland will be obliged to adopt legislation to attain the same result as the Union acquis listed in that annex. The relevant provisions under Swiss law will no longer be listed in the annex. The sole exception to this rule concerns Chapter 11 of Annex 1, where provisions of Swiss law will continue to be listed. This reflects an agreed exception with respect to Directive 2007/45/EC13. In certain areas, Switzerland’s access to decision-shaping will be limited. As a rule, it will not have access to relevant expert groups and comitology committees dealing with medicinal products. Nor shall it have access to the European Medicines Agency. In the area of medical devices, Switzerland’s role in committees and expert groups will be limited to one of observer. 11 Regulation (EU) 2016/796 of the European Parliament and of the Council of 11 May 2016 on the European Union Agency for Railways and repealing Regulation (EC) No 881/2004 (OJ L 138, 26.5.2016, p. 1). 12 Regulation (EU) No 165/2014 of the European Parliament and of the Council of 4 February 2014 on tachographs in road transport, repealing Council Regulation (EEC) No 3821/85 on recording equipment in road transport and amending Regulation (EC) No 561/2006 of the European Parliament and of the Council on the harmonisation of certain social legislation relating to road transport (OJ L 60, 28.2.2014, p. 1) and Commission Implementing Regulation (EU) 2016/68 of 21 January 2016 on common procedures and specifications necessary for the interconnection of electronic registers of driver cards (OJ L 15, 22.1.2016, p. 51), as amended by Commission Implementing Regulation (EU) 2017/1503 of 25 August 2017 (OJ L 221, 26.8.2017, p. 10). 13 Directive 2007/45/EC of the European Parliament and of the Council of 5 September 2007 laying down rules on nominal quantities for prepacked products, repealing Council Directives 75/106/EEC and 80/232/EEC, and amending Council Directive 76/211/EEC (OJ L 247, 21.9.2007, p. 17). EN 13 EN  Under the updated agreement Switzerland will have access and will contribute financially to the EudraGMDP information system on the Community code relating to medicinal products for human use, as established by Directive 2004/27/EC14. Electricity agreement The Electricity agreement will provide for dynamic alignment by Switzerland on current and future Union legal acts in the area of electricity. The purpose of the Electricity agreement is to allow Switzerland’s access to the Union’s internal electricity market. It aims e.g. to foster cross-border electricity trade; to guarantee the integrity and transparency of the electricity market as well as the equal treatment of all market participants therein; to ensure the stability of electricity networks and security of supply; as well as to promote electricity produced from renewable energy sources. The agreement defines the rules and concepts applicable to the internal electricity markets as well as the roles and responsibilities of actors such as transmission system and distribution system operators. It also foresees a transitional arrangement for pre-existing long-term capacity reservations on interconnectors at the Swiss border, which are not compatible with the acquis. With regard to environmental protection in the electricity sector, Switzerland is obliged to adopt or maintain provisions of Swiss law laying down requirements that ensure at least the same level of protection as laid down in the relevant acquis. Such provisions may not constitute an obstacle to the free access to the Swiss market of goods and services from the Union that comply with the requirements laid down in the relevant acquis. An exception to the obligation of dynamic alignment is foreseen that allows Switzerland to take necessary, proportionate and non-distorting measures to ensure security of electricity supply, by establishing and having in place electricity reserves, to the extent they are compatible with the agreement. Under the agreement, Switzerland will be able to participate in and will have to contribute to the financing of the European Union Agency for the Cooperation of Electricity Regulators (ACER), as established by Regulation (EU) 2019/94215. The agreement includes a standard appendix on the rights, privileges and immunities of ACER and its staff. Switzerland will also have access and will financially contribute, in accordance with the standard financial modalities, to the Union Database, as established by Directive (EU) 2018/2001, on the promotion of the use of energy from renewable sources16. The agreement includes provisions on State aid and will be accompanied by a joint declaration. 14 Directive 2004/27/EC of the European Parliament and of the Council of 31 March 2004 amending Directive 2001/83/EC on the Community code relating to medicinal products for human use (OJ L 136, 30.4.2004, p. 34). 15 Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (OJ L 158, 14.6.2019, p. 22). 16 Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82). EN 14 EN  Protocol on the Common Food Safety Area The Protocol on the Common Food Safety Area will provide for dynamic alignment and simultaneous application by Switzerland across the entire Union acquis linked to the food chain. The current SPS-related annexes to the existing Agreement on trade in agricultural products will be removed from the Agreement on trade in agricultural products and their subject matter will be dealt with in the Protocol on the Common Food Safety Area. It is from those annexes that the Agreement on trade in agricultural products in its current form derives its present qualification as an agreement in a field related to the internal market in which Switzerland participates. The Protocol on the Common Food Safety Area which supplements the Agreement on trade in agricultural products will remain linked to the Agreement on trade in agricultural products in that if either the agreement or protocol is ended, the other instrument will be automatically ended as well. The protocol establishes a Common Food Safety Area that covers all dimensions of the food chain. Its objectives are e.g. to enhance food and feed safety, to ensure a high level of human, animal and plant health, to combat antimicrobial resistance, and to enhance animal protection and promote high standards of animal welfare. In addition to dynamic alignment with regard to all legal acts in the Union acquis related to the entire food chain, the Protocol on the Common Food Safety Area includes an obligation for Switzerland to temporarily apply any non-legislative acts based on the applicable secondary legislation from the date such non-legislative acts become applicable in the Union, and until the date of the Joint Committee’s decision on the act’s incorporation, in order to guarantee their simultaneous application across the entire Common Food Safety Area. Exceptions to the obligation of dynamic alignment will allow Switzerland, under certain conditions, to maintain provisions of national law regarding genetically modified organisms and animal welfare. In addition, Switzerland will also be able to maintain its measures regarding the import of bovine meat from cattle potentially treated with hormonal growth promoters, provided such bovine meat is not moved into the Union. It will be possible to take compensatory measures in case of non-compliance by a party with the decision of an arbitral tribunal in either the Protocol on the Common Food Safety Area or any other agreement in a field related to the internal market in which Switzerland participates, or the Agreement on trade in agricultural products. To allow Switzerland to prepare the change from the current system based on equivalence to a system based on the principle according to which the Union acquis itself applies simultaneously in its territory, the Protocol on the Common Food Safety Area foresees that the current SPS-related annexes to the Agreement on trade in agricultural products will continue to have legal effects for a transitional period of maximum 24 months. After expiry of that period, all provisions of the Protocol on the Common Food Safety Area will fully apply. EN 15 EN  The protocol foresees Switzerland’s access to the European Food Safety Authority (EFSA), as established by Regulation (EC) No 178/200217, and includes the standard appendix on its rights, privileges and immunities as well as those of its staff. The protocol also foresees a financial contribution of Switzerland in accordance with the above-mentioned standard financial modalities to the financing of EFSA as well as the following information systems: – the EUROPHYT Portal, as established by Commission Directive 94/3/EC18, – the Rapid Alert System for Food and Feed (RASFF), as established by Regulation (EC) No 178/200219, – the platform for sanitary and phytosanitary certification (TRACES), as established by Regulation (EU) 2017/62520, and – the Animal Diseases Information System (ADIS), as established by Regulation (EU) 2020/200221. Agreement on trade in agricultural products Once amendments to the Agreement on trade in agricultural products introduced by the specific amending protocol will enter into force, the agreement on trade in agricultural products will no longer be considered as an agreement in a field related to the internal market in which Switzerland participates. After deletion of the SPS-related annexes to the Agreement on trade in agricultural products, the scope of the amended agreement, including its remaining annexes will be limited to trade aspects. Accordingly, the concepts of uniform interpretation and application of the Union acquis, the role of the Court of Justice of the European Union, dynamic alignment and State aid rules are not relevant. The institutional framework foreseen in this agreement therefore differs from the one in the Protocol on the Common Food Safety Area. 17 Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1). 18 Commission Directive 94/3/EC of 21 January 1994 establishing a procedure for the notification of interception of a consignment or a harmful organism from third countries and presenting an imminent phytosanitary danger (OJ L 32, 5.2.1994, p. 37). 19 Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1). 20 Regulation (EU) 2017/625 of the European Parliament and of the Council of 15 March 2017 on official controls and other official activities performed to ensure the application of food and feed law, rules on animal health and welfare, plant health and plant protection products, amending Regulations (EC) No 999/2001, (EC) No 396/2005, (EC) No 1069/2009, (EC) No 1107/2009, (EU) No 1151/2012, (EU) No 652/2014, (EU) 2016/429 and (EU) 2016/2031 of the European Parliament and of the Council, Council Regulations (EC) No 1/2005 and (EC) No 1099/2009 and Council Directives 98/58/EC, 1999/74/EC, 2007/43/EC, 2008/119/EC and 2008/120/EC, and repealing Regulations (EC) No 854/2004 and (EC) No 882/2004 of the European Parliament and of the Council, Council Directives 89/608/EEC, 89/662/EEC, 90/425/EEC, 91/496/EEC, 96/23/EC, 96/93/EC and 97/78/EC and Council Decision 92/438/EEC (OJ L 95, 7.4.2017, p. 1). 21 Commission Implementing Regulation (EU) 2020/2002 of 7 December 2020 laying down rules for the application of Regulation (EU) 2016/429 of the European Parliament and of the Council with regard to Union notification and Union reporting of listed diseases, to formats and procedures for submission and reporting of Union surveillance programmes and of eradication programmes and for application for recognition of disease-free status, and to the computerised information system (OJ L 412, 8.12.2020, p. 1). EN 16 EN  The amending protocol will update the dispute settlement mechanism along the lines of the established practice in the Union’s and Switzerland’s trade agreements. The applicable dispute settlement procedure will be based on the one included in the agreements in fields of the internal market in which Switzerland participates. The agreement also shares with them a set of common provisions regarding the arbitral tribunal. No role is foreseen for the Court of Justice of the European Union in dispute settlement. Compensatory measures in case of non- compliance by a party with the decision of an arbitral tribunal can be taken in either the Agreement on trade in agricultural products or the Protocol on the Common Food Safety Area, but not in other agreements in fields related to the internal market in which Switzerland participates. Cooperation agreements in the areas of health, cohesion and space Health agreement The Health agreement aims at strengthening EU-Switzerland cooperation regarding serious cross-border threats to health by integrating Switzerland in the relevant mechanisms and bodies. It does not constitute an agreement in a field related to the internal market in which Switzerland participates. However, it applies the above-mentioned identical institutional provisions by analogy and includes an obligation of dynamic alignment with the relevant Union acquis. The agreement shares with the agreements in fields related to the internal market in which Switzerland participates a set of common provisions regarding the arbitral tribunal, including a role for the Court of Justice of the European Union. In case of disputes, compensatory measures to remedy a potential imbalance can be taken in either the Health agreement or the health component (EU4Health) of the Agreement on Union programmes. The agreement foresees Switzerland’s access and financial contribution in accordance with the standard financial modalities to the European Centre for Disease Prevention and Control (ECDC), as established by Regulation (EC) No 851/200422. It includes the standard appendix on the rights, immunities and privileges of the ECDC and its staff. In the case of the Early Warning and Response System (EWRS), as established by Regulation (EU) 2022/237123, the Swiss financial contribution under the current Multiannual Financial Framework (MFF) will be part of its contribution to the financing of the ECDC on the one hand and the EU4Health programme on the other. If, under the next MFF, the EWRS would be financed through different sources, the aforementioned modalities will apply to the Switzerland’s contribution to the EWRS. Agreement on cohesion The Agreement on cohesion is not an agreement in a field related to the internal market in which Switzerland participates. 22 Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 establishing a European Centre for disease prevention and control (OJ L 142, 30.4.2004). 23 Regulation (EU) 2022/2371 of the European Parliament and of the Council of 23 November 2022 on serious cross-border threats to health and repealing Decision No 1082/2013/EU (OJ L 314, 6.12.2022, p. 26). EN 17 EN  It establishes the basis for a regular financial contribution of Switzerland to the reduction of economic and social disparities in the Union, in complement to the Union and Member State measures in the area of cohesion. The agreement lays down the parameters and rules for the determination of Switzerland’s financial contribution. Contribution periods will be defined in function of the applicable multiannual financial framework of the Union. The first contribution period is foreseen to run from 1 January 2030 to 31 December 2036. It will be complemented by a one-time additional financial commitment covering the period between the end of 2024 and the end of 2029. At the beginning of every contribution period, the parties will have to conclude a Memorandum of Understanding (MoU) describing the thematic areas in which the Swiss financial contribution may be used during that period, e.g.: inclusive human and social development, sustainable and inclusive economic development, green transition, democracy and participation, or migration. The MoU should also spell out the amount of the financial contribution, determined on the basis of the rules set out in the agreement. Switzerland’s financial contribution will not be transferred to the Union budget. The MoU will form the basis for country-specific implementation agreements between Switzerland and beneficiary Member States. These agreements will specify the country- specific allocation of funds, as well as their distribution between thematic areas, support measures, the structures for management and control and applicable conditions, and competent authorities in the Member State in question. The agreement’s dispute settlement mechanism has commonalities but also differences with the one included in the agreements in fields related to the internal market in which Switzerland participates. It notably shares with them a set of common provisions regarding the arbitral tribunal. However, it does not foresee a role for the Court of Justice of the European Union. In case of disputes, compensatory measures to remedy a potential imbalance can be taken in either the Agreement on cohesion or any of the agreements listed in the Agreement on cohesion. Agreement on the Agency for the Space Programme The Agreement on the Agency for the Space Programme is not an agreement in a field related to the internal market in which Switzerland participates. It spells out the conditions under which Switzerland has a right to participate in the European Union Agency for the Space Programme (EUSPA), as established by Regulation (EU) 2021/69624. It is based on the EU- Switzerland agreement of 2014 on the European Satellite Navigation Programmes25. The Agreement on the Agency for the Space Programme foresees that the Parties will provisionally apply it following its signature. 24 Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 establishing the Union Space Programme and the European Union Agency for the Space Programme and repealing Regulations (EU) No 912/2010, (EU) No 1285/2013 and (EU) No 377/2014 and Decision No 541/2014/EU (OJ L 170, 12.5.2021, p. 69). 25 Cooperation Agreement between the European Union and its Member States, of the one part, and the Swiss Confederation, of the other, on the European Satellite Navigation Programmes (OJ L 15, 20.01.2014, p. 3). EN 18 EN  The agreement establishes the Swiss financial contribution to the EUSPA, using the same contribution key to calculate the operation and participation fees as the one established in the agreements in fields related to the internal market in which Switzerland participates as of 2028. Depending on the date as of when the agreement will be provisionally applied, the percentage of the operational fee on the basis of which the participation fees will be calculated will be 2% and 3% for 2026 and 2027 respectively. As of 2028, the percentage will be the same as the one used in other agreements that foresee the participation of Switzerland in agencies, i.e. 4%. The agreement also allows Switzerland’s participation in activities related to other components of the space programme, beyond Galileo and the European Geostationary Navigation Overlay Service (EGNOS) as established in the 2014 agreement, if a protocol to the Agreement on Union programmes so provides. The agreement includes the standard appendix regarding EUSPA’s rights, immunities and privileges and those of its staff. Protocol on parliamentary cooperation The Protocol on parliamentary cooperation establishes a Joint Parliamentary Committee as forum for dialogue and debate between members of the European Parliament and the Swiss Federal Assembly. Its aim is to further the mutual understanding of and reflection on the broad EU-Switzerland relationship, including its possible further development. The Joint Parliamentary Committee shall be informed on a regular basis of the decisions and recommendations of the Joint Committees established by any of the agreements that form part of the broad package. It may request any relevant information regarding the implementation of any agreement within the broad package and may make recommendations to the Parties. Joint declaration on the establishment of a high-level dialogue between the Union and Switzerland The aims of the high-level dialogue to be established are: – to promote the mutual understanding and cooperation on the negotiated broad bilateral package and the possible further development of their bilateral relations; – to discuss issues of mutual interest, in particular Switzerland’s participation in the internal market and possibilities to strengthen their partnership; and – to evaluate the implementation of the broad bilateral package, the work of the Joint Committees and the possible further development of their bilateral relations. Signing and texts of the agreements The texts of the agreements and protocols are submitted to the Council together with this proposal. The texts of the joint declarations accompanying various agreements or protocols are submitted together with this proposal, together with a joint declaration on the establishment of a high-level dialogue between the Union and Switzerland and two unilateral declarations by Switzerland with regard to respectively the Free movement of persons agreement and the Health agreement. In accordance with the Treaties, it is for the Commission to ensure the signing of the agreements and protocols, subject to their conclusion at a later date. In addition, the text of the joint declaration on the high-level dialogue should be signed by the European Commission on behalf of the Union. EN 19 EN  Table 1: Overview of institutional and other provisions common to the agreements in fields related the internal market in which Switzerland participates and the Health agreement Provisions of the agreement Identical provisions on General provisions – institutional objectives and/ or purpose of the agreement – nature of the agreement and relation of protocols to the agreement (in case of an existing agreement) Alignment of the agreement on – obligation for the Joint Committee to integrate new acts falling within the scope of the agreement into the agreement legal acts of the Union – participation in the drafting of a legal act (“decision shaping”) and the integration of legal acts in the agreement – fulfilment of constitutional obligations by Switzerland Interpretation and application – uniform interpretation, effective and harmonious application, and exclusivity principles of the agreement – procedure in the event of difficulty of interpretation or application, compensatory measures and cooperation between jurisdictions Other provisions – Joint Committee – Switzerland’s financial contribution to the financing of the agencies and information systems to which it has access – handling of information – references in Union legal acts to: territories and nationals of Member States, entry into force and implementation of legal acts, addressees, rights and obligations of Member States Final provisions – entry into force and implementation – modifications and termination Annex on implementation of – list of activities, bodies and information systems Switzerland’s financial – payment modalities contribution – transitional arrangements (where relevant) Annex / appendix on the – registry and secretarial services of the arbitral tribunal arbitral tribunal – initiation of dispute settlement – composition of the arbitral tribunal – arbitration proceedings – decisions of the arbitral tribunal EN 20 EN  Appendix on privileges and – inviolability of premises, building and archives of the agency immunities of agencies – tax exemption of assets, revenues and goods and services for official use – diplomatic status of correspondence and communications – privileges, immunities, taxation and coverage social security of officials covered by the Staff Regulations Table 2: Provisions on State aid common to the Electricity agreement and the State aid protocols to the Agreements on air transport and on land transport Part / chapter of the State aid Identical provisions on protocol or annexes Main text – State aid-related objectives – relation of the protocol to the existing agreement (in case of an existing agreement) – State aid incompatible and compatible with the agreement, and existing aid – surveillance, transparency, modalities of cooperation and consultations – integration of legal acts – ratification and entry into force, modifications and termination Annex on exemptions and – measures compatible with the proper functioning of the internal market clarifications Annex on general and sectoral – general acts applicable to all sectors, complemented with sectoral rules specific to the area covered by the agreement in acts applicable in the Union question EN 21 EN  2025/0163 (NLE) Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 217, in conjunction with Article 218(5) and the second subparagraph of Article 218(8) thereof, Having regard to the proposal from the European Commission, Whereas: (1) On 12 March 2024, the Council authorised the Commission to open negotiations with the Swiss Confederation (hereafter also referred to as “Switzerland”) for a broad package of measures related to bilateral relations with Switzerland, comprising of institutional and State aid provisions in, and, where necessary, specific adaptations to, agreements between the Union and Switzerland in fields related to the internal market1, of an agreement on Switzerland’s participation in Union programmes and an agreement that forms the basis for Switzerland’s permanent contribution towards reducing economic and social disparities between regions 2. The Council had also authorised the Commission to open negotiations with Switzerland on new agreements on electricity, health, food safety, the participation of Switzerland in the European Union Agencies for the Union Space Programme and for Railways, and on the amendment of the Agreement between the European Community and the Swiss Confederation on air transport to allow for cabotage. (2) The Commission has negotiated, on behalf of the Union, a broad package of agreements which includes protocols on institutional, State aid and amending provisions to existing agreements between the European Community and the Swiss 1 Agreement between the European Community and the Swiss Confederation on the Carriage of Goods and Passengers by Rail and Road, Agreement between the European Community and the Swiss Confederation Air Transport, Agreement between the European Community, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment, Agreement between the European Community and the Swiss Confederation on trade in agricultural products, all signed on 21 June 1999 (OJ L 114, 30.4.2002, p. 1). 2 Council Decision (EU, Euratom) 2024/995 of 12 March 2024 authorising the opening of negotiations with the Swiss Confederation on institutional provisions in agreements between the European Union and the Swiss Confederation related to the internal market, on an agreement on the Swiss Confederation’s participation in Union programmes and on an agreement that forms the basis for the Swiss Confederation’s permanent contribution to the Union’s cohesion (OJ L, 2024/995, 26.3.2024). EN 22 EN  Confederation in fields related to the internal market in which Switzerland participates, a Protocol to the existing Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area, an Agreement between the European Union and the Swiss Confederation on electricity, an Agreement between the European Union and the Swiss Confederation on health, an Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union, an Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes, an Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme, as well as a Protocol between the European Union and the Swiss Confederation on parliamentary cooperation. (3) The institutional protocols lay down an obligation for the Joint Committee to integrate all acts of Union law falling within the scope of the agreements as well as provisions to ensure that Switzerland is bound by the rules in question. They ensure the uniform interpretation and application of all agreements in fields related to the internal market in which Switzerland participates and that, where the application of those agreements involves concepts of Union law, these are interpreted and applied in accordance with the case-law of the Court of Justice of the European Union. The institutional protocols lay down an effective mechanism for the resolution of disputes based on arbitration, including the referral to the Court of Justice of the European Union of all questions of Union law arising from the case. In case of non-compliance with the decision of the arbitral tribunal, proportionate compensatory measures may be adopted in the agreement concerned or in any of the agreements in fields related to the internal market in which Switzerland participates. (4) The amending protocols to the existing agreements make the necessary substantive changes consistent with the new institutional framework. In addition, the amending protocol to the agreement on air transport provides for the mutual exchange of cabotage rights. (5) The State aid protocols to the existing agreements on air transport and land transport guarantee a level playing field for Switzerland’s participation in the internal market in the areas covered by those agreements. Switzerland will apply substantive and procedural rules, including surveillance and enforcement mechanisms, equivalent to those which apply within the Union. (6) The amending protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products provides an update of the agreement’s dispute settlement mechanism, along the lines of the established practice in trade agreements of the Union. (7) A separate protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishes a Common Food Safety Area covering all dimensions of the food chain. This protocol includes the institutional provisions which are common to all agreements in fields related to the internal market in which Switzerland participates. (8) The new Agreement between the European Union and the Swiss Confederation on electricity lays down the rules and conditions under which Switzerland can participate EN 23 EN  in the internal electricity market. The agreement includes the institutional provisions which are common to all agreements in fields related to the internal market in which Switzerland participates as well as rules on State aid which are almost identical to those which apply in the areas of air and land transport. (9) The new Agreement between the European Union and the Swiss Confederation on health aims at strengthening cooperation between the Union and Switzerland regarding serious cross-border threats to health and applies, by analogy, the institutional provisions which are common to the agreements in the fields related to the internal market in which Switzerland participates. This agreement is linked to Switzerland’s participation in the Programme for the Union’s action in the field of health (“EU4Health Programme”). (10) The new Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union establishes the legal basis and lays down the parameters for Switzerland’s regular financial contribution, within the framework of the broad package, to the reduction of economic and social disparities in the Union. The agreement includes a dispute settlement mechanism; in case of non-compliance with an arbitral ruling, proportionate compensatory measures may be adopted in any of the agreements to which the package relates. (11) The new Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme lays down the conditions under which Switzerland can participate in the work of the Agency. (12) Identical provisions in the different institutional protocols and new agreements ensure Switzerland’s financial contribution to the costs of the information systems and Agencies in which it participates. (13) The Protocol between the European Union and the Swiss Confederation on parliamentary cooperation establishes a Joint Parliamentary Committee as forum for dialogue and debate between members of the European Parliament and the Swiss Federal Assembly, with a view to furthering the mutual understanding of and reflection on the broad EU-Switzerland relationship, including its possible further development. (14) The agreements and protocols that are the subject of this decision constitute a coherent whole and lay down the architecture of a reinforced and comprehensive partnership in a broad range of areas covered by the Treaties, based on an appropriate balance of rights and obligations. The decision on the signing of these agreements and protocols should thus be based on the substantive legal basis provided in the Treaty on the Functioning of the European Union for the establishment of an association involving reciprocal rights and obligations, common action and special procedure. (15) With the aim to increase the breadth of their cooperation, the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme provides that the Parties shall apply it provisionally, in accordance with their respective internal procedures and legislation, as from 1 January 2026, if the date of signature of that Agreement is before 1 July 2026, or as from 1 January of the year following its signature, if the date of signature of that Agreement is after 30 June 2026. That agreement should therefore be applied provisionally, pending its entry into force. EN 24 EN  (16) The signing of the Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes is the subject of separate procedures. (17) The signing of the Joint Declaration between the European Union and the Swiss Confederation on the establishment of a high-level dialogue on the broad bilateral package and the possible further development of the bilateral relations between the European Union and Switzerland on behalf of the European Union should be approved. (18) The agreements and protocols that are the subject of this decision should be signed on behalf of the Union and the joint declarations accompanying those agreements and protocols should be approved, HAS ADOPTED THIS DECISION: Article 1 The signing, on behalf of the Union, of the following agreements and protocols is hereby authorised subject to their conclusion3: (a) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (c) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (f) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) State Aid Protocol to the Agreement between the European Community and the Swiss confederation on the carriage of goods and passengers by rail and road; (i) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Institutional protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; 3 The texts of the agreements and protocols will be published together with the decision on their conclusion. EN 25 EN  (k) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (l) Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products establishing a Common Food Safety Area; (m) Agreement between the European Union and the Swiss Confederation on electricity; (n) Agreement between the European Union and the Swiss Confederation on health; (o) Agreement between the European Union and the Swiss Confederation on Switzerland’s regular financial contribution towards reducing economic and social disparities in the European Union; (p) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme; (q) Protocol between the European Union and the Swiss Confederation on parliamentary cooperation. Article 2 1. The signing of the Joint Declaration between the European Union and the Swiss Confederation on the establishment of a high-level dialogue on the broad bilateral package and the possible further development of the bilateral relations between the European Union and Switzerland is hereby approved4. 2. The following joint declarations accompanying agreements and protocols referred to in Article 1 of this Decision are hereby approved: (a) the following joint declarations accompanying the amending protocol referred to in Article 1, point (a), of this Decision5: – Joint Declaration on Union citizenship; – Joint Declaration on preventing and acting against abuse of rights conferred by Directive 2004/38/EC; – Joint Declaration on refusing social assistance and terminating residence prior to the acquisition of permanent residence; – Joint Declaration on the notification of the taking up of employment; – Joint Declaration on the Convention of the Recognition of Qualifications; – Joint Declaration on job vacancies; – Joint Declaration on common objectives regarding the freedom to provide services up to 90 working days and ensuring posted workers’ rights; – Joint Declaration on effective control systems including Switzerland’s dual enforcement system; 4 The Declaration is published in OJ L, [XXX]. 5 The Declarations are published in OJ L, [XXX]. EN 26 EN  – Joint Declaration on the principle of “Equal pay for equal work in the same place” and on a proportionate and adequate level of protection of posted workers; – Joint Declaration on the participation of Switzerland in the activities of the European Labour Authority; – Joint Declaration on the declaratory registration system of frontier workers; – Joint Declaration concerning the inclusions of two EU legal acts in Annex I to the Agreement; (b) the joint declaration accompanying the State aid protocol referred to in Article 1, point (e), of this Decision6; (c) the joint declaration accompanying the amending protocol referred to in Article 1, point (f), of this Decision7; (d) the joint declaration accompanying the State aid protocol referred to in Article 1, point (h), of this Decision8; (e) the joint declaration accompanying the agreement referred to in Article 1, point (m), of this Decision9. 3. The Council takes note of the following declarations by Switzerland: (a) Declaration by Switzerland on measures to be taken in respect of self- employed persons in the context of the notification procedure for work-related short-term stays accompanying the amending protocol referred to in Article 1, point (a), of this Decision10; (b) Declaration by the Swiss Confederation regarding the inclusion of the institutional elements by analogy in the Agreement on Health accompanying the agreement referred to in Article 1, point (n), of this Decision11. Article 3 Subject to reciprocity, the agreement referred to in Article 1, point (p), of this Decision shall be applied provisionally in accordance with Article 15(3) of that agreement12. 6 The Declaration is published in OJ L, [XXX]. 7 The Declaration is published in OJ L, [XXX]. 8 The Declaration is published in OJ L, [XXX]. 9 The Declaration is published in OJ L, [XXX]. 10 The Declaration is published in OJ L, [XXX]. 11 The Declaration is published in OJ L, [XXX]. 12 The date from which the Agreement will be provisionally applied will be published in the Official Journal. EN 27 EN  Article 4 This Decision shall enter into force on the day of its adoption. Done at Brussels, For the Council The President EN 28 EN  LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT “REVENUE”- FOR PROPOSALS HAVING BUDGETARY IMPACT ON THE REVENUE SIDE OF THE BUDGET PART I: EUROPEAN UNION AGENCY FOR THE SPACE PROGRAMME 1. NAME OF THE PROPOSAL: Proposal for a Council Decision on the signing of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation. 2. BUDGET LINES: Part I details the financial impact of the Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme (hereafter the “Agreement on the Agency for the Space Programme”). Part II details the financial impact of the other agreements in the broad package that foresee a financial contribution of Switzerland to various agencies and information systems. Revenue line (Chapter/Article/Item): – Article 04 10 01 – European Union Agency for the Space Programme (EUSPA) – external assigned revenue The revenues will be assigned to the following expenditure line (Chapter/Article/Item): – Article 04 10 01 – European Union Agency for the Space Programme (EUSPA) – voted budget. 3. FINANCIAL IMPACT1  Proposal has no financial implications  Proposal has no financial impact on expenditure but has a financial impact on revenue  Proposal has a financial impact on assigned revenue 1 All figures for years 2026 and 2027 which are quoted in this section are indicative and correspond to the latest estimates available. EN 29 EN  The effect is as follows: (EUR million to three decimal place) Revenue line Impact on revenue XX months period starting Year N (2026) dd/mm/yyyy (if applicable) 04 10 01 4 098 115 24 months starting 4 098 115 01/01/2026 Revenue line 2026 2027 04 10 01 4 098 115 4 185 977 Expenditure line 2026 2027 04 10 01 4 098 115 4 185 977 4. ANTI-FRAUD MEASURES Article 325 of the Treaty on the functioning of the European Union (TFEU) requires the Commission to counter fraud and any illegal activities affecting the financial interests of the Union. Preventing and detecting fraud is therefore a general obligation for all Commission Services in the framework of their daily activities involving the use of resources. Any fraud or irregularities involving Union funds has a particularly negative impact on the reputation of the Commission and the implementation of Union policies. The current Commission Anti-Fraud Strategy (CAFS) (COM(2019)196) was adopted on 29 April 2019, to replace the 2011 Strategy. It is a policy document setting out the Commission’s priorities in the fight against fraud in view of the 2021-2027 multiannual financial framework. The 2019 CAFS’ main objectives are to 1) “further improve the understanding of fraud patterns, fraudsters’ profiles and systemic vulnerabilities relating to fraud affecting the EU budget” (data collection and analysis), and 2) “optimise coordination, cooperation and workflows for the fight against fraud, in particular among Commission services and executive agencies” (coordination, cooperation and processes). The strategy is accompanied by an Action Plan which was revised in July 2023 and which, like its predecessor, seeks to strengthen all parts of the anti-fraud cycle: prevention, detection, investigation and correction. The guiding principles and target standards of the 2019 CAFS are: – zero tolerance for fraud; – fight against fraud as an integral part of internal control; – cost-effectiveness of controls; – professional integrity and competence of Union staff; – transparency on how Union funds are used; EN 30 EN  – fraud prevention, notably fraud-proofing of spending programmes; – effective investigation capacity and timely exchange of information; – swift correction (including recovery of defrauded funds and judicial/administrative sanctions); – good cooperation between internal and external players, in particular between the Union and national authorities responsible, and among the departments of all institutions and bodies of the Union concerned; – effective internal and external communication on the fight against fraud. Article 11 of the Agreement on the Agency for the Space Programme and Annex III to the agreement on Switzerland’s participation in EUSPA contain detailed provisions concerning the financial as regards Swiss participants in activities of the Agency for the Space Programme, which also includes anti-fraud measures. Annex III provides the necessary details, processes as well as allow for flawless execution of tasks by the bodies in order to safeguard the financial interests of the Union (the European Commission or by other persons mandated by the European Commission, which includes the European Anti-Fraud Office (OLAF) and the European Court of Auditors. the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irreguralities, including fraud, to the recovery of funds lost, wrongly paid or icorrectly used and, where appropriate, to the imposition of the administrative penalties. In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and ensure that any third parties involved in the implementation of Union funds grant equivalent rights. As expressly provided in Article 11(4) of the Agreement on the Agency for the Space Programme, reviews and audits may be carried out also after the suspension of application of a Protocol, cessation of application or termination of the Agreement. The Agreement on the Agency for the Space Programme ensures the possibility for OLAF may carry out administrative investigations, including on-the-spot checks and inspections, on the territory of the Swiss Confederation of a Swiss entity that is party to a relevant funding agreement or a Swiss entity third party implementing the funding agreement under a contract, in accordance with, and to the extent provided in, the relevant funding agreement and other applicable contract. When exercising their duties in the territory of the Swiss Confederation, the European Commission and OLAF shall act in a manner compatible with Swiss law. Reviews and audits may be carried out by the Union officials, in particular officials of the European Commission and the European Court of Auditors, or by other persons mandated by the European Commission. When exercising their duties in the territory of the Swiss Confederation, the European Commission or other persons mandated by the European Commission shall act in a manner compatible with Swiss law. The Swiss authorities shall cooperate, in accordance with applicable international cooperation instruments with the authorities of the Union or of the Member States competent for the investigation and prosecution of criminal offences affecting the financial interests of the Union, including bringing to judgment alleged perpetrators and accomplices of the said criminal offences. Requests submitted to pursuant to applicable international cooperation instruments may include as applicable requests made in relation to investigations or prosecutions of the EPPO. This allows for a cooperation with the EPPO as provided for in EN 31 EN  Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law. Furthermore the Agreement on the Agency for the Space Programme provides for effective mechanism to ensure enforcement of Commission decisions on the territory of the Swiss Confederation. 5. OTHER REMARKS Switzerland’s annual financial contribution to the financing of EUSPA will take the form of the sum of an operational contribution on the one hand, and a participation fee on the other, as defined in Article 4 of the Agreement on the Agency for the Space Programme and Annex I to that agreement. The operational contribution will be based on a contribution key defined as the ratio of the Gross Domestic Product (GDP) of Switzerland at market prices to the GDP of the Union at market prices. The GDPs to be applied will be the latest available as of 1 January of the year in which the annual payment will be made as provided by Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement on cooperation in the field of statistics2. If this agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development (OECD). The operational contribution will be calculated by applying the contribution key to the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question. All reference amounts will be based on commitment appropriations. The annual participation fee shall be a percentage of the annual operational. The annual participation fee shall have the following values: – in 2026: 2 % – in 2027: 3 % – in 2028 and subsequent years: 4 %. All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received will be made in euro. The European Commission shall issue calls for funds to Switzerland that correspond to the contribution of Switzerland. Switzerland shall pay the amount indicated in the call for funds at the latest 45 days after receipt of the call for funds. Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount from the due date. The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first calendar day of the month in which the due date falls, or 0%, whichever is higher, plus 3.5 percentage points. 2 Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics (OJ L 90, 28.3.2006, p. 2) EN 32 EN  PART II: OTHER AGENCIES AND INFORMATION SYSTEMS 1. NAME OF THE PROPOSAL: Proposal for a Council Decision on the signing of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation. 2. BUDGET LINES: Part II details the financial impact of the other agreements in the broad package that foresee a financial contribution of Switzerland to various agencies and information systems, except for the Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. Part I details the financial impact of the latter agreement. Under the agreements in fields related to the internal market in which Switzerland participates, the Health agreement and the agreement on the Agency for the Space Programme enter into force, Switzerland will financially contribute to the Union budget for the management and operation of the agencies and bodies, the information systems and other activities to which it has access under those agreements. A set of standard financial modalities were negotiated and integrated in the specific agreements. These do not concern the agreements on the participation on Switzerland’s participation in respectively the European Union Agency for the Space Programme and in the Union programmes. A detailed description of the financial modalities is included in section 5 of this document. The information systems to which Switzerland will gain access and will have to financially contribute in accordance with the agreed financial modalities are: – the European network of Employment Services (EURES) as established by Regulation (EU) 2016/589; – the Electronic Exchange of Social Security Information (EESSI) as established by Regulation (EC) 883/2004 and Regulation (EC) 987/2009; – the modules of Internal Market Information system (IMI) as established by Regulation (EU) 1024/20127 relating to the posting of workers, services, professional qualifications, the European Professional Card, Regulated Professions and the Single Digital Gateway; – the EudraGMDP information system on the Community code relating to medicinal products for human use, as established by Directive 2004/27/EC; – the EUROPHYT Portal, as established by Commission Directive 94/3/EC of 21 January 1994; – the Rapid Alert System for Food and Feed (RASFF), as established by Regulation (EC) No 178/2002; – the platform for sanitary and phytosanitary certification (TRACES), as established by Regulation (EU) 2017/625; – the Animal Diseases Information System (ADIS), as established by Regulation (EU) 2020/2002; EN 33 EN  – the Union Database, as established by Directive (EU) 2018/2001, on the promotion of the use of energy from renewable sources. The agencies to which Switzerland will gain access and will have to financially contribute in accordance with the agreed financial modalities are: – the European Centre for Disease Prevention and Control (ECDC), as established by Regulation (EC) No 851/2004; – the European Food Safety Authority (EFSA), as established by Regulation (EC) No 178/2002; – the European Union Agency for the Cooperation of Electricity Regulators (ACER), as established by Regulation (EU) 2019/942. Where alternative funding sources presently exist, these will be maintained. Should this situation change in the course of the lifecycle of the agreements, the standard financial modalities should apply. The following information systems and agencies are concerned: – TACHOnet, as established by Regulation (EU) No 165/2014 and Commission Implementing Regulation (EU) 2016/68; – the Early Warning and Response System (EWRS), as established by Regulation (EU) 2022/2371; – the European Union Aviation Safety Agency (EASA), as established by Regulation (EU) 2018/1139; – the Mutual Information System on Social Protection (MISSOC). To take into account that Switzerland will not have access to the activities of the Agency for the Cooperation of Energy Regulators (ACER) falling outside of the scope of the agreement on electricity, its annual operational contribution to ACER will be calculated on the basis of an annual reference amount corresponding to 85% of the amount of the annual Union voted budget inscribed in the relevant Union budget subsidy line(s). Under the current MFF (2021-2027) no contribution will be required from Switzerland for the financing of the EWRS in accordance with the above-mentioned financial modalities. Instead, its contribution will be covered by its contributions to the financing of the ECDC and the EU4Health programme as these are the EWRS’s two funding sources under the current MFF. The precise impact of Switzerland’s contributions on the budget cannot be determined at the time of drafting this file as Switzerland will only start contributing after the concerned agreements have entered into force and their entry into force depends on Switzerland fulfilling certain constitutional obligations. This process may take several years, which might mean that the agreements will not enter into force during the current Multiannual Financial Framework. As the agreed financing arrangements will generate a recurrent revenue stream for the Union budget and the standard provisions will provide the model for Switzerland’s contributions to the management and operation of any additional agency or information system to which Switzerland will gain access in the future, it is nevertheless relevant to illustrate how the financial modalities could impact the budget. The amounts mentioned apply the financial modalities to the 2024 budget, which served as reference during the negotiations on the financing arrangements and payment modalities. • Information systems European network of employment services (EURES) Revenue line (Chapter/Article/Item): EN 34 EN  – R6 1 2 0 – European Social Fund Plus – Assigned revenue The revenues will be assigned to the following expenditure lines (Chapter/Article/Item): Article 07 02 04 - ESF+ — Employment and Social Innovation (EaSI) strand, and – Article 07 10 09 – European Labour Authority (ELA): expenditure related to the EURES platform Electronic Exchange of Social Security Information (EESSI) Revenue line (Chapter/Article/Item): – 6 1 2 0 – European Social Fund Plus – Assigned revenue – R 6 6 3 0 – Pilot projects, preparatory actions, prerogatives and other actions The revenues will be assigned to the following expenditure lines (Chapter/Article/Item): – Article 07 02 04 – ESF+ — Employment and Social Innovation (EaSI) strand; – Item 07 20 03 01 – Free Movement of workers, coordination of social security schemes and measures for migrants, including migrants from third countries Internal Market Information (IMI) Revenue line (Chapter/Article/Item): – 6 00 03 00 – Single Market Programme – Assigned revenue The revenues will be assigned to the following expenditure line (Chapter/Article/Item): – Item 03 01 01 01 – Support expenditure for the Single Market Programme (03 01 01 01 02) EudraGMDP Revenue line (Chapter/Article/Item): – 662 The revenues will be assigned to the following expenditure line (Chapter/Article/Item): – 6 10 03 01 – Union contribution to the European Medicines Agency EUROPHYT, iRASFF, TRACES, ADIS Revenue line (Chapter/Article/Item): – 60 30 The revenues will be assigned to the following expenditure line (Chapter/Article/Item): – Article 03 02 06 – Contributing to a high level of health and welfare for humans, animals and plants Union Database, as established by Directive (EU) 2018/2001 Revenue line (Chapter/Article/Item): – 6 06 08 – other contributions and refunds – Assigned revenue The revenues will be assigned to the following expenditure line (Chapter/Article/Item): – 02 20 04 02 – Support activities for the European energy policy and internal energy market • Agencies EN 35 EN  European Centre for Disease Prevention and Control (ECDC) and European Food Safety Authority (EFSA) Revenue line (Chapter/Article/Item): – 662 The revenues will be assigned to the following expenditure line (Chapter/Article/Item): – Article 06 10 01 – European Centre for Disease Prevention and Control – Article 06 10 02 – European Food Safety Authority European Union Agency for the Cooperation of Energy Regulators (ACER) Revenue line (Chapter/Article/Item): – 6 06 08 – Decentralised agencies – Assigned revenue The revenues will be assigned to the following expenditure line (Chapter/Article/Item): – Article 02 10 06 – European Union Agency for the Cooperation of Energy Regulators (ACER) 3. FINANCIAL IMPACT  Proposal has no financial implications  Proposal has no financial impact on expenditure but has a financial impact on revenue  Proposal has a financial impact on assigned revenue EN 36 EN  The effect is as follows: • Information systems European network of employment services (EURES) Revenue line Impact on annual revenue (2024 estimate) R6120 999 897 Situation following action Revenue line Estimated annual revenue R6120 999 897 Expenditure line Estimated annual expenditure 07 02 04 999 897 07 10 09 Electronic Exchange of Social Security Information (EESSI) Revenue lines Impact on annual revenue (2024 estimate) R6120 227 136 R6630 Situation following action Revenue line Estimated annual revenue R6 1 2 0 227 136 R6630 Expenditure line Estimated annual expenditure 07 02 04 227 136 07 20 03 01 Internal Market Information (IMI) EN 37 EN  Revenue line Impact on annual revenue (2024 estimate) 6 00 03 00 96 346 Situation following action Revenue line Estimated annual revenue 6 00 03 00 96 346 Expenditure line Estimated annual expenditure Item 03 01 01 01 (03 01 01 01 02) 96 346 EudraGMDP Revenue line Impact on annual revenue (2024 estimate) 662 6 525 Situation following action Revenue line Estimated annual revenue 662 6 525 Expenditure line Estimated annual expenditure 6 10 03 01 6 525 EUROPHYT, iRASFF, TRACES, ADIS Revenue line Impact on annual revenue (2024 estimate) 6030 727 804 Situation following action EN 38 EN  Revenue line Estimated annual revenue 6030 727 804 Expenditure line Estimated annual expenditure Article 03 02 06 727 804 Union Database, as established by Directive (EU) 2018/2001 Revenue line Impact on annual revenue (2024 estimate) 6 06 08 875 000 Situation following action Revenue line Estimated annual revenue 6 06 08 875 000 Expenditure line Estimated annual expenditure 02 20 04 02 875 000 • Agencies European Centre for Disease Prevention and Control (ECDC) Revenue line Impact on annual revenue (2024 estimate) 662 3 670 862 EN 39 EN  Situation following action Revenue line Estimated annual revenue 662 3 670 862 Expenditure line Estimated annual expenditure Article 06 10 01 3 670 862 European Food Safety Authority (EFSA) Revenue line Impact on annual revenue (2024 estimate) 662 7 755 340 Situation following action Revenue line Estimated annual revenue 662 7 755 340 Expenditure line Estimated annual expenditure Article 06 10 02 7 755 340 European Union Agency for the Cooperation of Energy Regulators (ACER)3 Revenue line Impact on annual revenue (2024 estimate) 06 06 08 981 805 3 Based on an annual reference amount corresponding to 85% of the amount of the annual Union voted budget inscribed in the relevant EU budget subsidy line(s). EN 40 EN  Situation following action Revenue line Estimated annual revenue 6 06 08 981 805 Expenditure line Estimated annual expenditure 02 10 06 981 805 4. ANTI-FRAUD MEASURES Article 325 of the Treaty on the functioning of the European Union (TFEU) requires the Commission to counter fraud and any illegal activities affecting the financial interests of the Union. Preventing and detecting fraud is therefore a general obligation for all Commission Services in the framework of their daily activities involving the use of resources. Any fraud or irregularities involving Union funds has a particularly negative impact on the reputation of the Commission and the implementation of Union policies. The current Commission Anti-Fraud Strategy (CAFS) (COM(2019)196) was adopted on 29 April 2019, to replace the 2011 Strategy. It is a policy document setting out the Commission’s priorities in the fight against fraud in view of the 2021-2027 multiannual financial framework. The 2019 CAFS’ main objectives are to 1) “further improve the understanding of fraud patterns, fraudsters’ profiles and systemic vulnerabilities relating to fraud affecting the EU budget” (data collection and analysis), and 2) “optimise coordination, cooperation and workflows for the fight against fraud, in particular among Commission services and executive agencies” (coordination, cooperation and processes). The strategy is accompanied by an Action Plan which was revised in July 2023 and which, like its predecessor, seeks to strengthen all parts of the anti-fraud cycle: prevention, detection, investigation and correction. The guiding principles and target standards of the 2019 CAFS are: – zero tolerance for fraud; – fight against fraud as an integral part of internal control; – cost-effectiveness of controls; – professional integrity and competence of Union staff; – transparency on how Union funds are used; – fraud prevention, notably fraud-proofing of spending programmes; – effective investigation capacity and timely exchange of information; – swift correction (including recovery of defrauded funds and judicial/administrative sanctions); – good cooperation between internal and external players, in particular between the Union and national authorities responsible, and among the departments of all institutions and bodies of the Union concerned; – effective internal and external communication on the fight against fraud. EN 41 EN  5. OTHER REMARKS Switzerland’s annual financial contribution to the financing of information systems and agencies will take the form of the sum of an operational contribution on the one hand, and a participation fee on the other. The operational contribution will be based on a contribution key defined as the ratio of the Gross Domestic Product (GDP) of Switzerland at market prices to the GDP of the Union at market prices. The GDPs to be applied will be the latest available as of 1 January of the year in which the annual payment will be made as provided by Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement on cooperation in the field of statistics4. If this agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development (OECD). The operational contribution for agencies will be calculated by applying the contribution key to the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question. The operational contribution for the information systems and other activities will be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget (such as work programmes or contracts). All reference amounts will be based on commitment appropriations. The annual participation fee shall be 4% of the annual operational contribution. All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received will be made in euro. The European Commission will communicate to Switzerland at the latest on 16 April of the financial year, the following information in relation to Switzerland’s participation: – the amounts in commitment appropriations of the annual Union budget inscribed on the relevant Union subsidy budget line(s) of the year in question for each agency and the amounts in commitment appropriations in relation to the Union voted budget of the year in question for the relevant budget of the information systems; – the amount of the participation fee; – as regards agencies, in year N+1 the amounts in budgetary commitments made on commitment appropriations authorised in year N on the relevant Union budget subsidy line(s) in relation to the annual Union budget inscribed on the relevant Union subsidy budget lines of year N. Based on its draft budget, the European Commission shall provide an estimate of above- mentioned information as soon as possible, and at the latest, by 1 September of the financial year. The European Commission shall issue calls for funds to Switzerland that correspond to the contribution of Switzerland for each of the agencies, information systems and other activities in which Switzerland participates. Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after a call for funds has been issued. In each call for funds, Switzerland may make separate payments for each agency, information system or other activity. 4 Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics (OJ L 90, 28.3.2006, p. 2) EN 42 EN  Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount from the due date. The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first calendar day of the month in which the due date falls, or 0%, whichever is higher, plus 3.5 percentage points. EN 43 EN EUROPEAN COMMISSION Brussels, 13.6.2025 COM(2025) 308 final ANNEX 1 ANNEX to the Proposal for a Council Decision on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme EN EN  AMENDING PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND ITS MEMBER STATES, OF THE ONE PART, AND THE SWISS CONFEDERATION, OF THE OTHER, ON THE FREE MOVEMENT OF PERSONS & /en THE EUROPEAN UNION, hereinafter referred to as "the Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland"; HAVING REGARD to the Agreement between the European Community and its Member States of the one part, and the Swiss Confederation of the other, on the free movement of persons, done at Brussels on 21 June 1999, (hereinafter referred to as the "Agreement"), which entered into force on 1 June 2002; HAVING REGARD to the Protocol to the Agreement of 21 June 1999 between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons regarding the participation, as Contracting Parties, of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic pursuant to their accession to the European Union, done at Brussels on 26 October 2004, which entered into force on 1 April 2006; HAVING REGARD to the Protocol to the Agreement of 21 June 1999 between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons regarding the participation as Contracting Parties of the Republic of Bulgaria and Romania pursuant to their accession to the European Union, done at Brussels on 27 May 2008, which entered into force on 1 June 2009; & /en 1 HAVING REGARD to the Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, regarding the participation of the Republic of Croatia as a Contracting Party, following its accession to the European Union, done at Brussels of 4 March 2016, which entered into force on 1 January 2017; WHEREAS agreements concluded by the Union are binding upon the institutions of the Union and on its Member States; this Protocol therefore applies to the Contracting Parties as set out in the Agreement; HAVE AGREED AS FOLLOWS: ARTICLE 1 Amendments to the Agreement The Agreement is amended as follows: (1) in the preamble, the following recitals are inserted after the second recital: "RECOGNISING that the freedom of movement is an important aspect of the internal market and that securing the right of nationals of the Contracting Parties, as well as their family members, to enter and reside in the respective territories, free of unjustified restrictions and with full respect for the right of equal treatment, serves to strengthen the functioning of the parts of the internal market in which Switzerland participates; & /en 2 CONSCIOUS of ensuring uniformity in the parts of the internal market in which Switzerland participates, it being understood that the Agreement is to be interpreted in accordance with the uniform interpretation principle set out in Article 7 of the Institutional Protocol to this Agreement. The competence of the Swiss Federal Court and all other Swiss courts as well as of the Member States of the European Union's courts and the Court of Justice of the European Union to interpret this Agreement in individual cases is preserved; RECALLING that the freedom of movement and the right to equal treatment extends to nationals of one Contracting Party who exercise or seek to exercise their free-movement rights without having moved or without having yet moved to reside in the territory of another Contracting Party. Equally, certain rights linked to the past exercise of free movement, including the right to equal treatment, may continue to apply after the national of a Contracting Party has ceased residing in the territory of another Contracting Party; FURTHER RECALLING that the free movement of persons encompasses workers, self-employed persons and persons who are economically inactive, provided that such persons comply with the requirements for lawful residence set out in this Agreement, including, where applicable, the possession of sufficient resources and comprehensive sickness insurance, so as not to become an unreasonable burden on the social assistance systems of the Contracting Parties; UNDERLINING the objective of consolidating and developing the Union and Switzerland's comprehensive partnership to its full potential,"; & /en 3 (2) Article 4 is replaced by the following: "ARTICLE 4 Right of residence and access to an economic activity The right of residence and access to an economic activity shall be guaranteed in accordance with Annex I."; (3) the following articles are inserted: "ARTICLE 4a Right of establishment 1. A national of a Contracting Party shall have the right of establishment in the territory of another Contracting Party in order to pursue a self-employed activity. 2. Within the framework of the provisions of this Agreement, restrictions on the freedom of establishment of nationals of a Contracting Party in the territory of another Contracting Party shall be prohibited. Such prohibition shall also apply to restrictions on the setting-up of agencies and branches by nationals of any Contracting Party established in the territory of any Contracting Party. & /en 4  ARTICLE 4b Equal treatment of self-employed persons 1. As regards access to a self-employed activity and the pursuit thereof, a self-employed person shall be afforded no less favourable treatment in the host country than that accorded to its own nationals. 2. The provisions of Articles 7 to 10 of Regulation (EU) No 492/20111 shall apply mutatis mutandis to the self-employed persons referred to in this Agreement."; (4) in Article 5, paragraph 4 is replaced by the following: "4. The rights referred to in this Article shall be guaranteed in accordance with Annexes I, II and III."; (5) the following articles are inserted: "ARTICLE 5a Provision of services With regard to the provision of services, the following shall be prohibited under Article 5 of this Agreement: (a) any restriction on the cross-frontier provision of services in the territory of a Contracting Party not exceeding 90 days of actual work per calendar year; 1 Regulation (EU) No 492/2011 (OJ L 141, 27.05.2011 p. 1), as applicable according to Annex I. & /en 5 (b) any restriction on the right of entry and residence in the cases covered by Article 5(2) of this Agreement concerning employees, who do not have the nationality of one of the Contracting Parties, of persons providing services, who are integrated into one Contracting Party's regular labour market and posted for the provision of a service in the territory of another Contracting Party without prejudice to Article 7i. ARTICLE 5b Companies providing services The provisions of Article 5a shall apply to companies formed in accordance with the law of the Contracting Parties and having their registered office, central administration or principal place of business in the territory of a Contracting Party. ARTICLE 5c Equal treatment of persons providing services A person providing services who has the right or has been authorised to provide a service may, for the purposes of its provision, temporarily pursue his activity in the state in which the service is provided on the same terms as those imposed by that state on its own nationals, in accordance with the provisions of this Agreement and Annexes I, II and III. & /en 6 ARTICLE 5d Rules regarding the residence of persons providing services 1. Persons providing services who are nationals of the Member States of the Union or Switzerland and are established in the territory of a Contracting Party other than that of the person receiving services and employees, irrespective of their nationality, of persons providing services, who are integrated into one Contracting Party's regular labour market and posted for the provision of a service in the territory of another Contracting Party who have the right, or have been authorised, to provide a service for a period exceeding 90 days of actual work per calendar year shall receive, to substantiate that right, a residence permit for a period equal to that of the provision of services exceeding 90 days of actual work per calendar year. 2. For the purposes of issuing such permits, the Contracting Parties may not require of the persons referred to in paragraph 1 more than: (a) a valid identity card or passport, without prejudice to Article 7i; (b) evidence that they are providing, or wish to provide, a service. ARTICLE 5e Duration of provision of services 1. The total duration of provision of services under point (a) of Article 5a, whether continuous or consisting of successive periods of provision, may not exceed 90 days of actual work per calendar year. & /en 7  2. The provisions of paragraph 1 shall be without prejudice to the discharge by the person providing a service of his legal obligations under the guarantee given to the person receiving the service or to causes of force majeure. ARTICLE 5f Rules applicable to the provision of services 1. The provisions of Articles 5a and 5c shall not apply to activities involving, even on an occasional basis, the exercise of public authority in the Contracting Party concerned. 2. The provisions of Articles 5a and 5c and measures adopted by virtue thereof shall not preclude the applicability of laws, regulations and administrative provisions providing for the application of working and employment conditions to employed persons posted for the purposes of providing a service, in accordance with the relevant Union legal acts on the posting of workers referred to in Annex I. 3. The provisions of point (a) of Article 5a, and Article 5c shall be without prejudice to the applicability of the laws, regulations and administrative provisions prevailing in all Contracting Parties at the time of this Agreement's entry into force on 1 June 2002 in respect of: (i) the activities of temporary and interim employment agencies. In particular, Switzerland's dynamic alignment to Regulation (EU) 2016/5891 shall not result in Switzerland no longer being able to apply its national laws, regulations and administrative provisions to these activities; 1 Regulation (EU) 2016/589 (OJ L 107, 22.4.2016, p. 1), as applicable according to Annex I. & /en 8 (ii) financial services where provision is subject to prior authorisation in the territory of a Contracting Party and the provider to prudential supervision by that Contracting Party's authorities. ARTICLE 5g Prior notification period and controls 1. Switzerland shall be able to apply a prior notification period of a maximum of four working days in specific sectors before the beginning of the provision of service for service providers that are self-employed and provide services in its territory as well as before the posting for service providers that post workers on its territory in order to carry out on-site controls. 2. Switzerland shall define autonomously the control quantity and control density, as well as the sectors and areas to be controlled, including sectors and areas not covered by the prior notification period of a maximum of four working days, on the basis of an objective risk analysis, in a proportionate and non-discriminatory manner, taking into account that the Agreement limits the freedom to provide services to 90 days of actual work per calendar year. 3. The determination of the sectors shall be reviewed and updated periodically. & /en 9 ARTICLE 5h Financial guarantees and sanctions In the case of service providers that have failed to meet their financial obligations towards enforcement authorities and bodies referred to in the Joint Declaration on effective control systems including Switzerland's dual enforcement system with regard to a previous provision of services, Switzerland shall be able to require the deposit of a proportionate financial guarantee before they may provide services again in sectors determined on the basis of an autonomous and objective risk analysis. In case of non-payment of the financial guarantee, Switzerland shall be able to impose proportionate sanctions up to the prohibition to provide services until the payment of the guarantee. ARTICLE 5i Proof of self-employment In order to combat the phenomenon of bogus self-employment through efficient and risk-based controls, Switzerland shall be able to require self-employed service providers to provide documents allowing for effective controls within the framework of ex-post controls (at most: confirmation of registration, if applicable; proof of registration with the social security authorities as a self-employed person in the country of residence; proof of the contractual relationship). & /en 10  ARTICLE 5j Non-regression 1. In order to maintain the level of protection of posted workers as agreed between Switzerland and the Union in this Agreement at the time of the entry into force of the Amending Protocol, amendments to Directives 96/71/EC1 and 2014/67/EU2 or new legal acts of the Union in the area of posting of workers shall, notwithstanding Article 5 of the Institutional Protocol to this Agreement, not be integrated into this Agreement to the extent that their effect would be to meaningfully weaken or reduce the level of protection of posted workers with regard to the terms and conditions of employment, notably remuneration and allowances. 2. For the purposes of paragraph 1, any change to the level of protection of posted workers shall be assessed in its globality, taking into account all relevant provisions of this Agreement. ARTICLE 5k Persons receiving services Nationals of a Member State of the Union or of Switzerland entering the territory of a Contracting Party solely to receive services may be required to register in accordance with the acts referred to in Annex I."; 1 Directive 96/71/EC (OJ L 18, 21.1.1997, p. 1), as applicable according to Annex I at the time of the entry into force of the Amending Protocol. 2 Directive 2014/67/EU (OJ L 159, 28.5.2014, p. 11), as applicable according to Annex I at the time of the entry into force of the Amending Protocol. & /en 11 (6) the following articles are inserted: "ARTICLE 7a Frontier worker A frontier worker is a national of a Contracting Party who pursues an activity as an employed or self-employed person in a Contracting Party and who resides in the other Contracting Party to which he returns, as a rule, daily or at least once a week. The competent authorities of the Contracting Party where the frontier worker pursues the activity for periods of work longer than three months per calendar year may register the frontier worker for declaratory purposes. The competent authorities shall issue a declaratory registration certificate to the frontier worker free of charge or for a charge not exceeding that imposed on nationals for the issuing of similar documents. Registration pursuant to this Article shall be without prejudice to the rights and obligations of the frontier workers concerned provided for in the acts referred to in the Annexes to this Agreement. For periods of work shorter than or up to three months the Contracting Parties may apply the notification procedure according to the Joint Declaration on the notification of the taking up of employment. & /en 12 ARTICLE 7b Students A student who does not have a right of residence in the territory of the other Contracting Party on the basis of any other provision of this Agreement may be required to register in accordance with the acts referred to in Annex I. This Agreement does not regulate access to vocational training or maintenance assistance given to the students covered by this Article. (a) notwithstanding the foregoing sentence, Article 2 shall apply, regardless of the student's place of residence, to tuition fees and all other fees or charges related to studies, as well as all public support mechanisms related thereto, applicable to students at; (i) universities, university institutes, universities of applied sciences, universities of applied sciences institutes and affiliated higher education institutions to any of these in Switzerland, financed in majority by public funds, and (ii) any corresponding institution in the Union; (b) subject to the preservation of the quality and of the specificities of its respective existing education systems, including its admission systems and organisation of competences, each Contracting Party shall not reduce the overall level of students in its institutions mentioned under point (a) who are nationals of the other Contracting Parties and who did not have a right of residence in its territory before taking up their studies, as of the date of the entry into force of this provision. For the purpose of clarity, the foregoing sentence shall not imply an obligation for the Contracting Parties to modify their respective admission systems nor to increase the aforementioned level of students or to reserve a minimal level of places for students from the other Contracting Parties; & /en 13 (c) the Contracting Parties shall not discriminate amongst nationals of the other Contracting Parties in application of points (a) and (b). ARTICLE 7c Exercise of public authority 1. A national of a Contracting Party pursuing an activity as an employed person may be refused the right to take up employment in the public service which involves the exercise of public power and is intended to protect the general interests of the State or other public bodies. 2. A self-employed person may be denied the right to pursue an activity involving, even on an occasional basis, the exercise of public authority. ARTICLE 7d Public policy The rights granted under the provisions of this Agreement may be restricted only by means of measures which are justified on grounds of public policy, public security or public health. & /en 14  ARTICLE 7e Permanent residence Switzerland and the Member States may decide to grant the right of permanent residence pursuant to Article 16 of Directive 2004/38/EC1 as, respectively, only to Union citizens and Swiss nationals having resided legally for a total of five years in the host State as workers or self-employed persons, including those that retain that status in accordance with that Directive, as well as the family members of such persons. Provided that they are part of a single period of legal residence in the host State, the periods to be taken into account shall not be required to be continuous but may be interrupted by periods of legal residence as economically inactive persons. For the purpose of calculating the periods necessary for the acquisition of the right of permanent residence in accordance with the first subparagraph, Switzerland and the Member States may decide not to take into account periods of six months or more during which the person is fully reliant on social assistance. Subject to the Joint Declaration on refusing social assistance and terminating residence prior to the acquisition of permanent residence and in accordance with Article 10(6) of the Institutional Protocol to this Agreement, the rules on residence in Article 7 of Directive 2004/38/EC2 shall remain applicable to persons who do not qualify for the right of permanent residence. 1 Directive 2004/38/EC (OJ L 158, 30.4.2004, p. 77), as applicable according to Annex I. 2 Directive as applicable according to Annex I. & /en 15 ARTICLE 7f Purchase of immovable property 1. Nationals of a Contracting Party who have a right of residence and their principal residence in the host state shall enjoy the same rights as a national as regards the purchase of immovable property. They may set up their principal residence in the host state at any time in accordance with the relevant national rules irrespective of the duration of their employment. Leaving the host state shall not entail any obligation to dispose of such property. 2. Nationals of a Contracting Party who have a right of residence but do not have their principal residence in the host state shall enjoy the same rights as a national as regards the purchase of immovable property needed for their economic activity. Leaving the host state shall not entail any obligation to dispose of such property. They may also be authorised to purchase a second residence or holiday accommodation. For this category of nationals, this Agreement shall not affect the rules applying to pure capital investment or business of unbuilt land and apartments. 3. Frontier workers, nationals of a Contracting Party, shall enjoy the same rights as a national as regards the purchase of immovable property for their economic activity and as a secondary residence. Leaving the host state shall not entail any obligation to dispose of such property. They may also be authorised to purchase holiday accommodation. For this category of nationals, this Agreement shall not affect the rules applying in the host state to pure capital investment or business of unbuilt land and apartments. & /en 16  ARTICLE 7g Identity cards Switzerland may continue to issue identity cards that do not include a storage medium containing the holder's fingerprints. Such identity cards shall be visually distinguishable from identity cards complying with the requirements of the acts referred to in Annex I concerning such documents. Any such identity cards issued from one year after the entry into force of the Amending Protocol cannot be used by Swiss nationals to exercise free movement. ARTICLE 7h Expulsion As far as restrictions on the right of entry and the right of residence on grounds of public policy or public security of each other's nationals are concerned, the obligations of Switzerland and of the Member States under the Agreement prior to the entry into force of the Amending Protocol shall be maintained. Therefore, the following developments introduced by Chapter VI of Directive 2004/38/EC1 going beyond these obligations, namely enhanced protection against expulsion provided for in Article 28(2) and (3), as well as the case-law of the Court of Justice linked to these provisions, shall not apply. In addition, as regards expulsions referred to in Article 33(2) of the Directive, Switzerland and the Member States may, instead of applying the procedures laid down in that provision, ensure that expulsions are carried out in line with the requirements under the Agreement prior to the entry into force of the Amending Protocol. 1 Directive as applicable according to Annex I. & /en 17  ARTICLE 7i Entry of third-country nationals The Contracting Parties may not require entry visa or equivalent requirements from posted workers who do not have the nationality of a Contracting Party and who enjoy a right of entry without such requirements according to the legal acts of the Union integrated into Annex I or any other instrument in force between the Contracting Parties. For those posted workers who require entry visa or equivalent requirements, the Contracting Party concerned shall grant these persons every facility for obtaining any necessary visas."; (7) Article 10 is replaced by the following: "ARTICLE 10 Changes in European Union membership Any extension of the Agreement to new Member States shall be subject to agreement between the Parties, in accordance with their internal procedures, by means of a protocol. Unless otherwise agreed, such protocol shall include transitional measures, taking into account the specific economic and social situation in the Union, in particular in the new Member States, and Switzerland, having regard to the longstanding practice of past extensions of this Agreement."; & /en 18 (8) Article 14 is replaced by the following: "ARTICLE 14 Joint Committee 1. A Joint Committee is hereby established. The Joint Committee shall be composed of representatives of the Contracting Parties. 2. The Joint Committee shall be co-chaired by a representative of the Union and a representative of Switzerland. 3. The Joint Committee shall: (a) ensure the proper functioning and the effective administration and application of this Agreement; (b) provide a forum for mutual consultation and a continuous exchange of information between the Contracting Parties, in particular with a view to finding a solution to any difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement in accordance with Article 10 of the Institutional Protocol to this Agreement; (c) make recommendations to the Contracting Parties in matters pertaining to this Agreement; & /en 19 (d) adopt decisions where provided for in this Agreement; and (e) exercise any other competence granted to it in this Agreement. 4. The Joint Committee shall act by consensus. Decisions shall be binding on the Contracting Parties, which shall take all necessary measures to implement them. 5. The Joint Committee shall meet at least once a year, in Brussels and Bern alternately, unless the co-chairs decide otherwise. It shall also meet at the request of either Contracting Party. The co-chairs may agree that a meeting of the Joint Committee be held by videoconference or teleconference. 6. The Joint Committee shall adopt its rules of procedure and update them as necessary. 7. The Joint Committee may decide to set up any working party or group of experts that can assist it in carrying out its duties."; & /en 20 (9) the following article is inserted: "ARTICLE 14a Safeguard clause 1. In the event of serious economic or social difficulties caused by the application of this Agreement, the Joint Committee shall meet, at the request of either Contracting Party, to examine appropriate measures to remedy the situation. The Joint Committee may decide what measures to take within 60 days of the date of the request. This period may be extended by the Joint Committee. 2. If the Joint Committee does not adopt a decision within the deadline laid down in paragraph 1 with regard to appropriate measures or extending that deadline, the Contracting Party having made the request may bring the case before an arbitral tribunal in case of serious economic difficulties. The arbitral tribunal shall hand down its final decision within six months of its establishment. 3. If the arbitral tribunal decides that the alleged difficulties have been proven and are caused by the application of this Agreement, the Contracting Party that made the request may adopt appropriate measures in order to remedy those difficulties. If the measures adopted by a Contracting Party in accordance with this paragraph create an imbalance between the respective rights and obligations under this Agreement, the other Contracting Party may take appropriate rebalancing measures to remedy that imbalance within the scope of this Agreement. & /en 21 4. In exceptional circumstances of urgency where a Contracting Party is at risk of very serious economic harm caused by the application of this Agreement, that Contracting Party may bring the case before an arbitral tribunal in accordance with the Appendix if the Joint Committee fails to adopt a decision within 30 days of the request. The arbitral tribunal shall hand down its final decision within six months of its establishment. 5. In circumstances referred to in paragraph 4, if the arbitral tribunal decides that, prima facie, the alleged difficulties are fulfilled, the Contracting Parties may adopt interim measures and, as the case may be, interim rebalancing measures. Article III.10 of the Appendix shall apply, with exception of paragraph 4(c), mutatis mutandis. 6. The measures and rebalancing measures referred to in paragraphs 2 to 5 shall be adopted within the scope of this Agreement. Their scope and duration shall not exceed what is strictly necessary to remedy the difficulties or the imbalance they address. Preference shall be given to measures and rebalancing measures that least disrupt the working of this Agreement. 7. The measures and rebalancing measures shall be the subject of consultations in the Joint Committee every three months from the date of their adoption with a view to their abolition before the date of expiry envisaged or to the limitation of their scope to the strictly necessary. Each Contracting Party may at any time request the Joint Committee to review such measures and rebalancing measures."; & /en 22 (10) Article 18 is replaced by the following: "ARTICLE 18 Revision If a Contracting Party wishes to have this Agreement revised, it shall submit a proposal to that effect to the Joint Committee. Amendments to this Agreement shall enter into force after the Contracting Parties's respective internal procedures have been completed."; (11) Article 21 is replaced by the following: "ARTICLE 21 Relationship with agreements on taxation 1. The provisions of bilateral agreements between Switzerland and the Member States of the Union on double taxation shall be unaffected by the provisions of this Agreement. In particular, the provisions of this Agreement shall not affect the double taxation agreements' definition of 'frontier workers'. & /en 23  2. No provision of this Agreement may be interpreted in such a way as to prevent the Contracting Parties from distinguishing, when applying the relevant provisions of their tax legislation, between taxpayers whose situations are not comparable, especially as regards their place of residence. However, this shall not constitute a means of discrimination or restriction on the rights of persons as defined under this Agreement. 3. No provision of this Agreement shall prevent the Contracting Parties from adopting or applying measures to ensure the imposition, payment and effective recovery of taxes or to forestall tax avoidance or evasion under their national tax legislation or any other international or bilateral agreement or arrangement relating wholly or mainly to taxation that either Switzerland, the Union or any Member State are party to."; (12) the following articles are inserted: "ARTICLE 23a Validity of residence permits and other special permits Residence permits and other special permits issued by the Contracting Parties prior to the entry into force of the Amending Protocol shall maintain their validity and shall be replaced, upon their expiry, by documents provided for in this Agreement, where the conditions for the issuance of those documents are met. & /en 24  ARTICLE 23b Transitional arrangements 1. With regard to matters falling within the scope of Directive 2004/38/EC1 the transitional arrangements laid down in this paragraph shall apply: (a) There shall be a transition period, which shall start on the date of entry into force of the Amending Protocol and end 24 months after its entry into force. (b) Articles 5k, 7a,7d,7e,7h, 7i and, for the purposes of this Agreement, Directive 2004/38/EC2 shall apply from the first day following that of the end of the transition period. (c) The effects of the following provisions of the Agreement in the version prior to the entry into force of the Amending Protocol shall be maintained during the transition period: – Articles 1 to 7 and Article 16, and – Articles 1 to 9, 12 to 15, 17, 19, 20, 23 and Article 24, except the last sentence of Article 24(4), of Annex I. 1 Directive as applicable according to Annex I. 2 Directive as applicable according to Annex I. & /en 25  Those provisions shall not produce any effect with regard to matters falling within the scope of other acts referred to in Annex I, in particular Regulation (EU) No 492/20111 and Regulation (EU) 2016/5892 referred to in Section 2 of Annex I. 2. With regard to matters falling within the scope of Directive 96/71/EC3 and Directive 2014/67/EU4, the transitional arrangements laid down in this paragraph shall apply: (a) There shall be a transition period which shall start on the date of entry into force of the Amending Protocol and end 36 months after its entry into force. (b) Article 5f(2), Articles 5g, 5h, 5i and, for the purposes of this Agreement, Directive 96/71/EC5 and Directive 2014/67/EU6 shall be applicable from the first day following that of the end of the transition period. (c) The effects of the following provisions of the Agreement in the version prior to the entry into force of the Amending Protocol shall be maintained during the transition period: – Article 5(4), and Article 16, and – Article 22(2), of Annex I. Those provisions shall not produce any effect with regard to matters falling within the scope of other acts referred to in Section 2 of Annex I."; 1 Regulation as applicable according to Annex I. 2 Regulation as applicable according to Annex I. 3 Directive as applicable according to Annex I. 4 Directive as applicable according to Annex I. 5 Directive as applicable according to Annex I. 6 Directive as applicable according to Annex I. & /en 26 (13) Article 24 is replaced by the following: "ARTICLE 24 Territorial scope This Agreement shall apply, of the one part, to the territory in which the Treaty on European Union and the Treaty on the Functioning of the European Union (hereinafter referred to as 'TFEU') apply and under the conditions laid down in those Treaties, and, of the other part, to the territory of Switzerland."; (14) Annex I to the Agreement is replaced by the text set out in Annex I attached to this Protocol; (15) Annex II to the Agreement is replaced by the text set out in Annex II attached to this Protocol; (16) Annex III to the Agreement is replaced by the text set out in Annex III attached to this Protocol; (17) the Protocol on secondary residences in Denmark shall be replaced by the text in the Protocol on secondary residences in Denmark attached to this Protocol; (18) Annex I of the Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons regarding the participation, as Contracting Parties, of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic pursuant to their accession to the European Union, done at Brussels on 26 Octobre 2004, is deleted; & /en 27 (19) the text of the Protocol on the acquisition of immovable property in Malta attached to this Protocol, is added as an attachment to the Agreement; (20) the text of the Protocol on Long Term Residence Permits, attached to this Protocol, is added as an attachment to the Agreement; (21) the Joint Declarations and the Unilateral Declaration, attached to this Protocol, are added to the Declarations attached to the Final Act to the Agreement. ARTICLE 2 Entry into force 1. This Protocol shall be ratified or approved by the Union and Switzerland in accordance with their own procedures. The Union and Switzerland shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Institutional Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; & /en 28 (c) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (d) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (f) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) State aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (i) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; & /en 29 (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 30  ANNEX I AMENDMENTS TO ANNEX I TO THE AGREEMENT Annex I to the Agreement is replaced by the following: "ANNEX I FREE MOVEMENT OF PERSONS, RIGHT OF ESTABLISHMENT AND PROVISION OF SERVICES SECTION 1 For the purposes of the application of Articles 2 to 9 of this Agreement, the legal acts of the Union listed in Section 2 of this Annex, shall apply subject to the principle of dynamic alignment referred to in Article 5 of the Institutional Protocol to this Agreement, as well as subject to the exceptions listed in paragraph 7 of that Article. Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland. This shall be applied in full respect of the Institutional Protocol to this Agreement. & /en 1 Without prejudice to Article 16 of the Institutional Protocol, and unless otherwise provided for in technical adaptations, provisions of the acts listed in Section 2 that require the Member States to provide information to other Member States or to the Commission shall apply to Switzerland. When this information relates to surveillance or application, Switzerland shall communicate this information via the Joint Committee. SECTION 2 ACTS REFERRED TO: 1. 31977 L 0486: Council Directive 77/486/EEC of 25 July 1977 on the education of the children of migrant workers (OJ L 199, 6.8.1977, p. 32). 2. 31996 L 0071: Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services (OJ L 18, 21.1.1997, p. 1), as amended by: – 32018 L 0957: Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (OJ L 173, 9.7.2018, p. 16). & /en 2 The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 1(-1a) the words 'the exercise of fundamental rights as recognised in the Member States and at Union level' are replaced by 'the exercise of fundamental rights as recognised in the Member States and at Union level as well as in Switzerland'; (b) in Article 1(3): (i) point (c) shall not apply to Switzerland; (ii) the second and third subparagraphs shall not apply to Switzerland; (c) in Article 3: (i) paragraph 1b shall not apply to Switzerland; (ii) in paragraph 10, the words 'the Treaties' are replaced by the words 'the Agreement'; (d) in Article 4(2): (i) in the first subparagraph, last sentence, the words 'the Commission shall be informed and shall take appropriate measures' are replaced by the words 'the Joint Committee shall be informed with a view to finding a solution.'; & /en 3  (ii) the second subparagraph is replaced by the following: 'The European Union and Switzerland shall cooperate closely within the Joint Committee to examine any difficulties which might arise between the Contracting Parties in the application of Article 3(10)'; (e) for the purposes of this Agreement, the Directive shall be applicable from the first day following that of the end of the transition period set out in Article 23b(2) of the Agreement. 3. 32004 L 0038: Directive 2004/38/EC of the European Parliament and of the Council of 29 April 2004 on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States amending Regulation (EEC) No 1612/68 and repealing Directives 64/221/EEC, 68/360/EEC, 72/194/EEC, 73/148/EEC, 75/34/EEC, 75/35/EEC, 90/364/EEC, 90/365/EEC and 93/96/EEC (OJ L 158, 30.4.2004, p. 77, as corrected by OJ L 229, 29.6.2004, p. 35, OJ L 30, 3.2.2005, p. 27 and OJ L 197, 28.7.2005, p. 34). The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations: (a) this Agreement applies to nationals of the Contracting Parties. However, members of their family within the meaning of the Directive possessing third country nationality shall derive certain rights in accordance with Directive; & /en 4 (b) the terms 'Union citizen' and 'Union citizens' are replaced by the terms 'national of a Member State or Switzerland' and 'nationals of Member States and Switzerland', respectively; (c) Article 16 shall read as follows: '1. Nationals of Member States and Switzerland who have resided legally on the basis Article 7(1), point (a), or (3) for a total of five years in the territory of another Contracting Party shall have the right of permanent residence there. This right shall not be subject to the conditions provided for in Chapter III. 2. Provided that they are part of a single period of legal residence in the host State, the periods to be taken into account for the purpose of calculating the acquisition of permanent residence pursuant to paragraph 1 shall not be required to be continuous but may be interrupted by periods of legal residence not on the basis Article 7(1), point (a), or (3). 3. For the purposes of calculating the periods necessary for the acquisition of the right of permanent residence in accordance with paragraph 1, Switzerland and the Member States may decide not to take into account periods of six months or more during which the person is fully reliant on social assistance. 4. The right of permanent residence shall also be acquired by family members who have legally resided with a national of a Member State or of Switzerland in the host State for a continuous period of five years. & /en 5  5. Continuity of residence shall not be affected by temporary absences not exceeding a total of six months a year, or by absences of a longer duration for compulsory military service, or by one absence of a maximum of twelve consecutive months for important reasons such as pregnancy and childbirth, serious illness, study or vocational training, or a posting in another country. 6. Once acquired, the right of permanent residence shall be lost only through absence from the host State for a period exceeding two consecutive years. 7. By derogation from paragraph 1, Member States and Switzerland may decide that the right of permanent residence is acquired by nationals of Member States and Switzerland who have resided legally for a continuous period of five years in the territory of another Contracting Party.'; (d) in Article 24: (i) in paragraph 1, the words 'Treaty and secondary law' shall read 'Agreement'; (ii) paragraph 2 is replaced by the following: 'By way of derogation from paragraph 1, the host State shall not be obliged to confer entitlement to social assistance during the first three months of residence or, where appropriate, the longer period provided for in Article 14(4), point (b), nor shall it be obliged to grant maintenance aid for studies, including vocational training, consisting in student grants or student loans to persons other than workers, self-employed persons, persons who retain such status and members of their families.'; & /en 6  (e) in Article 28, paragraphs 2 and 3 shall not apply; (f) in Article 33, the following paragraph is added: 'Switzerland and the Member States may, instead of applying the procedures laid down in paragraph 2, ensure that the enforcement of expulsion orders is carried out in line with the requirements set out in Article 3 of Directive 64/221/EEC* _______________ * Council Directive 64/221/EEC of 25 February 1964 on the co-ordination of special measures concerning the movement and residence of foreign nationals which are justified on grounds of public policy, public security or public health (OJ 56, 4.4.1964, p. 850), as applicable at the time of the entry into force of the Agreement on 1 June 2002'; (g) for the purposes of this Agreement, the Directive shall apply from the first day following that of the end of the transition period set out in Article 23b(1) of this Agreement. 4. 32006 R 0635: Commission Regulation (EC) No 635/2006 of 25 April 2006 repealing Regulation (EEC) No 1251/70 on the right of workers to remain in the territory of a Member State after having been employed in that State (OJ L 112, 26.4.2006, p. 9). & /en 7 5. 32011 R 0492: Regulation (EU) No 492/2011 of the European Parliament and of the Council of 5 April 2011 on freedom of movement for workers within the Union (OJ L 141, 27.5.2011, p. 1), as amended by: – 32016 R 0589: Regulation (EU) 2016/589 of the European Parliament and of the Council of 13 April 2016 (OJ L 107, 22.4.2016, p. 1), – 32019 R 1149: Regulation (EU) 2019/1149 of the European Parliament and of the Council of 20 June 2019 (OJ L 186, 11.7.2019, p. 21). The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations: (a) Article 9(1) shall read: 'Without prejudice to Article 7f of the Agreement, a worker who is a national of a Contracting Party and who is employed in the territory of another Contracting Party shall enjoy all the rights and benefits accorded to national workers in matters of housing, including ownership of the housing he needs.'; (b) in Article 36: (i) paragraph 1 shall not apply; (ii) in paragraph 2, the reference to 'measures taken in accordance with Article 48 of the Treaty on the Functioning of the European Union' shall be read as a reference to the legal acts of the European Union in the field of social security integrated into this Agreement. & /en 8 6. 32012 R 1024: Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (OJ L 316, 14.11.2012, p. 1), as amended by: – 32013 L 0055: Directive 2013/55/EU of the European Parliament and of the Council of 20 November 2013 (OJ L 354, 28.12.2013, p. 132), – 32014 L 0060: Directive 2014/60/EU of the European Parliament and of the Council of 15 May 2014 (OJ L 159, 28.5.2014, p. 1), as corrected by OJ L 147, 12.6.2015, p. 24, – 32014 L 0067: Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 (OJ L 159, 28.5.2014, p. 11), – 32016 R 1191: Regulation (EU) 2016/1191 of the European Parliament and of the Council of 6 July 2016 (OJ L 200, 26.7.2016, p. 1), – 32016 R 1628: Regulation (EU) 2016/1628 of the European Parliament and of the Council of 14 September 2016 (OJ L 252, 16.9.2016, p. 53), as corrected by OJ L 231, 6.9.2019, p. 29, – 32018 R 1724: Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 (OJ L 295, 21.11.2018, p. 1), – 32020 L 1057: Directive (EU) 2020/1057 of the European Parliament and of the Council of 15 July 2020 (OJ L 249, 31.7.2020, p. 49), & /en 9  – 32020 R 1055: Regulation (EU) 2020/1055 of the European Parliament and of the Council of 15 July 2020 (OJ L 249, 31.7.2020, p. 17). Switzerland shall use the Internal Market Information System (IMI) as a third country for exchanges of information, including personal data, with IMI actors within the Union to implement administrative cooperation procedures where applicable for the purposes of this Agreement. For the purposes of this Agreement, the Commission continues to consider Switzerland to provide adequate protection of personal data as referred to in Article 23(1)(c) of Regulation (EU) No 1024/2012 as long as Decision 2000/518/EC1 remains in force. For the purposes of this Annex and as defined in Article 4 of Directive 96/71/EC and Articles 6, 7, Article 10(3), and Articles 14 to 18 of Directive 2014/67/EU, Switzerland shall use IMI in accordance with the principles and modalities of exchanges set out in those Articles. For the purposes of this Agreement, the Swiss Commissions Paritaires shall be considered to be competent authorities within the meaning of Article 5, second paragraph, point (f), of Regulation (EU) No 1024/2012 and Article 2, point (a), of Directive 2014/67/EU. They shall use IMI for carrying out cooperation as referred to in Article 4 of Directive 96/71/EC and Articles 6, 7 and Article 10(3) of Directive 2014/67/EU when, as entrusted by Switzerland, they execute the Swiss collective labor agreements and the Swiss law on posted workers, in accordance with Directive 96/71/EC and Directive 2014/67/EU. 1 Commission Decision 2000/518/EC of 26 July 2000 pursuant to Directive 95/46/EC of the European Parliament and of the Council on the adequate protection of personal data provided in Switzerland (OJ L 215, 25.8.2000, p. 1), including any subsequent amendments. & /en 10 The provisions of Regulation (EU) No 1024/2012 shall, for the purposes of the Agreement, be read with the following adaptations: (a) in Article 5, first sentence, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (b) Article 8(1), point (e), shall not apply in respect of Switzerland; (c) in Article 9(5), as regards Switzerland, the words 'Union law' shall be replaced by 'Union law as integrated into this Agreement'; (d) in Article 10(1), as regards Switzerland, the words 'in accordance with national or Union legislation' are replaced by the words 'in accordance with Swiss legislation'; (e) in Article 16(1) and (2), references to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as references to the relevant national legislation; (f) in Article 17(4), the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (g) in Article 18(1), the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (h) in Article 20, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; & /en 11  (i) in Article 21: (i) in paragraph 1, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (ii) paragraph 3 shall not apply; (j) Article 25 shall not apply; (k) Article 26(1) shall be read in line with Article 13 of the Institutional Protocol to this Agreement; (l) Switzerland shall be included in the IMI on the first day of the thirty-seventh month following the entry into force of the Amending Protocol. 7. 32014 L 0054: Directive 2014/54/EU of the European Parliament and of the Council of 16 April 2014 on measures facilitating the exercise of rights conferred on workers in the context of freedom of movement for workers (OJ L 128, 30.4.2014, p. 8). The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations: (a) the words 'Union workers' are replaced by the word 'workers'; (b) in Articles 1 and 3, the words 'Article 45 TFEU' are replaced by the words 'the Agreement'; & /en 12  (c) in Article 4, the words 'Union rules on free movement of workers' are replaced by the words 'the rules on free movement of workers pursuant to the Agreement' and the word 'SOLVIT' shall not apply; (d) in Article 6, the words 'Union law' are replaced by the words 'the Agreement'; (e) in Article 7, the words 'Article 21 TFEU and Directive 2004/38/EC' are replaced by the word 'the Agreement'; (f) for the purposes of this Agreement, the Directive shall be applicable from the first day of the twenty-fifth month following the entry into force of the Amending Protocol. 8. 32014 L 0067: Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services and amending Regulation (EU) No 1024/2012 on administrative cooperation through the Internal Market Information System (the 'IMI Regulation') (OJ L 159, 28.5.2014, p. 11). & /en 13 The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 1: (i) in paragraph 1, second subparagraph, the words 'while facilitating the exercise of the freedom to provide services for service providers and promoting fair competition between service providers, and thus supporting the functioning of the internal market' shall read 'while facilitating, to the extent provided for in the Agreement, the exercise of the freedom to provide services and promoting, to the extent provided for in the Agreement, fair competition between service providers, and thus supporting the functioning of the fields related to the internal market in which Switzerland participates'; (ii) in paragraph 2, the words 'the exercise of fundamental rights as recognised in Member States and at Union level' are replaced by the words 'the exercise of fundamental rights as recognised in Member States and at Union level as well as in Switzerland'; (b) in Article 4(3), point (c), as regards Switzerland, the words 'according to Regulation (EC) No 593/2008 (Rome I) and/or the Rome Convention' are replaced by the words 'according to the Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, done at Lugano on 30 October 2007'; & /en 14 (c) in Article 6: (i) in paragraph 5, second subparagraph, the words 'the Commission being informed, where relevant by means of IMI, shall take the appropriate measures' are replaced by 'the Joint Committee shall be informed with a view to finding a solution.'; (ii) in paragraph 10, the words 'relevant national and Union law' are replaced by the words 'relevant national law and the Agreement'. (d) in Article 7(6), the words 'Union law' are replaced by the words 'the Agreement'. (e) in Article 9: (i) in paragraph 1: – in the first subparagraph, the words 'Union law' are replaced by the words 'the Agreement'; – in the second subparagraph, point (a), the words 'at the latest at the commencement of the service provision' shall read, for Switzerland, 'at the latest at the commencement of the service provision a maximum of four working days in specific sectors before the posting for service providers that post workers on its territory in order to carry out on-site controls (Switzerland shall define autonomously the sectors and areas covered by the prior notification period on the basis of an objective risk analysis, in a proportionate and non-discriminatory manner, taking into account, that the Agreement limits the freedom to provide services to 90 days of actual work per calendar year)': & /en 15  (ii) in paragraph 3, the words 'the Union legislation' are replaced by the words 'the Agreement'; (iii) in paragraph 5, the second and third subparagraphs shall not apply to Switzerland; (f) in Article 10(2), the following sentence is added: 'Switzerland shall define autonomously the control quantity and control density, as well as the sectors and areas to be controlled, on the basis of an objective risk analysis, in a proportionate and non-discriminatory manner, taking into account that the Agreement limits the freedom to provide services to 90 days of actual work per calendar year'; (g) in Article 12: (i) in paragraph 4, the words 'Union law' are replaced by the words 'the Agreement'; (ii) in paragraph 6, the words 'with Union and national law and/or practice' are replaced by the words 'with the Agreement and national law and/or practice'; (iii) paragraph 8 shall not apply to Switzerland; & /en 16  (h) in Article 20, the following sentences are added: 'In the case of service providers that have failed to meet their financial obligations towards enforcement authorities and bodies with regard to a previous provision of services, Switzerland shall be able to require the deposit of a proportionate financial guarantee before they may provide services again in sectors determined on the basis of an autonomous and objective risk analysis. In case of non-payment of the financial guarantee, Switzerland shall be able to impose proportionate sanctions up to the prohibition to provide services until the payment of the guarantee.'; (i) for the purposes of this Agreement, the Directive shall be applicable from the first day following that of the end of the transition period set out in Article 23b(2) of the Agreement. 9. 32016 R 0589: Regulation (EU) 2016/589 of the European Parliament and of the Council of 13 April 2016 on a European network of employment services (EURES), workers' access to mobility services and the further integration of labour markets and amending Regulations (EU) No 492/2011 and (EU) No 1296/2013 (OJ L 107, 22.4.2016, p. 1), as amended by: – 32019 R 1149: Regulation (EU) 2019/1149 of the European Parliament and of the Council of 20 June 2019 (OJ L 186, 11.7.2019, p. 21). & /en 17  The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations: (a) for the purposes of the Agreement, the Commission continues to consider Switzerland to provide adequate protection of personal data as referred to under Article 34 of Regulation (EU) 2016/589 as long as the Decision 2000/518/EC1 remains in force; (b) the words 'Article 45 TFEU' are replaced by the words 'Article 4 of the Agreement'; (c) the words 'citizens of the Union' are replaced by the words 'nationals of Member States and Switzerland'; (d) in Article 6: (i) references to Article 3 of the Treaty on European Union and to Article 145 of the Treaty on the Functioning of the European Union shall not apply; (ii) in point (d), the words 'in the Union' are replaced by 'in the Union and Switzerland' and the words 'in compliance with Union and national law and practice' are replaced by 'in compliance with the Agreement and national law and practice'; (e) in Article 9(4), point (c), the words 'existing Union rules and instruments' are replaced by the words 'existing rules and instruments applicable pursuant to the Agreement'; 1 Commission Decision 2000/518/EC of 26 July 2000 pursuant to Directive 95/46/EC of the European Parliament and of the Council on the adequate protection of personal data provided in Switzerland, including any subsequent amendments. & /en 18  (f) in Article 34, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation. 10. 32017 D 1255: Commission Implementing Decision (EU) 2017/1255 of 11 July 2017 on a template for the description of national systems and procedures to admit organisations to become EURES Members and Partners (OJ L 179, 12.7.2017, p. 18). 11. 32017 D 1256: Commission Implementing Decision (EU) 2017/1256 of 11 July 2017 on templates and procedures for the exchange of information on the EURES network national work programmes at Union level (OJ L 179, 12.7.2017, p. 24). 12. 32017 D 1257: Commission Implementing Decision (EU) 2017/1257 of 11 July 2017 on the technical standards and formats required for a uniform system to enable matching of job vacancies with job applications and CVs on the EURES portal (OJ L 179, 12.7.2017, p. 32). 13. 32018 D 0170: Commission Implementing Decision (EU) 2018/170 of 2 February 2018 on uniform detailed specifications for data collection and analysis to monitor and evaluate the functioning of the EURES network (OJ L 31, 3.2.2018, p. 104). 14. 32018 D 1020: Commission Implementing Decision (EU) 2018/1020 of 18 July 2018 on the adoption and updating of the list of skills, competences and occupations of the European classification for the purpose of automated matching through the EURES common IT platform (OJ L 183, 19.7.2018, p. 17). & /en 19 15. 32018 D 1021: Commission Implementing Decision (EU) 2018/1021 of 18 July 2018 on the adoption of technical standards and formats necessary for the operation of the automated matching through the common IT platform using the European classification and the interoperability between national systems and the European classification (OJ L 183, 19.7.2018, p. 20). 16. 32018 R 1724: Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 1), as amended by: – 32022 R 0868: Regulation (EU) 2022/868 of the European Parliament and of the Council of 30 May 2022 (OJ L 152, 3.6.2022, p. 1), – 32024 R 1252: Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 (OJ L, 2024/1252, 3.5.2024), – 32024 R 1735: Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 (OJ L, 2024/1735, 28.6.2024). Some of the areas referred to in Annex I to Regulation (EU) 2018/1724 and some of the procedures referred to in Annex II to that Regulation fall outside the scope of this Agreement. The integration of that Regulation in this Agreement is without prejudice to the scope of the Agreement. & /en 20 The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 1(1): (i) in point (a), the words 'derived from Union law in the field of the internal market, within the meaning of Article 26(2) TFEU' are replaced by the words 'derived from the Agreement'; (ii) in point (b), the references to Directives 2006/123/EC, 2014/24/EU and 2014/25/EU shall not apply; (b) in Article 13(2), point (c), the reference to Regulation (EU) No 910/2014 shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (c) in Article 14: (i) in paragraph 1, the references to Directives 2006/123/EC, 2014/24/EU and 2014/25/EU shall not apply; (ii) in paragraph 5, the reference to Regulation (EU) 2016/679 shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (d) in Article 30(1), point (b), the reference to Regulation (EU) No 910/2014 shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation. & /en 21 17. 32019 R 1157: Regulation (EU) 2019/1157 of the European Parliament and of the Council of 20 June 2019 on strengthening the security of identity cards of Union citizens and of residence documents issued to Union citizens and their family members exercising their right of free movement (OJ L 188, 12.7.2019, p. 67). The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations: (a) the terms 'Union citizen' and 'Union citizens' are replaced by the terms 'national of a Member State or Switzerland' and 'nationals of Member States and Switzerland', respectively; (b) in Article 3: (i) in paragraph 4, as regards Switzerland, the words 'printed in negative in a blue rectangle and encircled by 12 yellow stars' shall not apply; (ii) in paragraph 5, as regards Switzerland, the following subparagraph is added: 'By derogation from the first subparagraph, where identity cards are issued without a highly secure storage medium containing the two fingerprints of the holder, such identity cards shall not be accepted for the purposes of entry and residence in other Contracting Parties and shall be visually distinguishable from identity cards complying with the requirements of the first subparagraph.'; & /en 22 (c) in Article 5: (i) in paragraph 1, as regards Switzerland, the words 'by 3 August 2031' shall read 'eleven years after the date of entry into force of the Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons ("the Amending Protocol")'; (ii) in paragraph 2, as regards Switzerland, the words 'by 3 August 2026' shall read 'six years after the date of entry into force of the Amending Protocol'; (d) in Article 6, point (h), as regards Switzerland, the words 'printed in negative in a blue rectangle and encircled by twelve yellow stars' shall not apply; (e) in Article 7(2), as regards the Member States, the words 'Family Member EU' shall be replaced by the words 'Family Member CH'; (f) in Article 8: (i) in paragraph 1, as regards Switzerland, the words 'by 3 August 2026' shall read 'six years after the date of entry into force of the Amending Protocol'; (ii) in paragraph 2, as regards Switzerland, the words 'by 3 August 2023' shall read 'three years after the date of entry into force of the Amending Protocol'; (g) in Article 10(2), as regards Switzerland, the words “the Charter” shall not apply; & /en 23  (h) in Article 11: (i) as regards Switzerland, references to Regulation (EU) 2016/679 shall be understood as a reference to the relevant national legislation. (ii) in paragraph 4, as regards Switzerland, the word 'Union' shall read 'the Agreement'; (i) in Article 16, as regards Switzerland, the words '2 August 2021' shall read 'one year after the date of entry into force of the Amending Protocol'; 18. 32020 R 1121: Commission Implementing Regulation (EU) 2020/1121 of 29 July 2020 on the collection and sharing of user statistics and feedback on the services of the single digital gateway in accordance with Regulation (EU) 2018/1724 of the European Parliament and of the Council (OJ L 245, 30.7.2020, p. 3).". ________________ & /en 24  ANNEX II CO-ORDINATION OF SOCIAL SECURITY SCHEMES Amendments to Annex II to the Agreement Annex II to the Agreement is replaced by the following: "ANNEX II CO-ORDINATION OF SOCIAL SECURITY SCHEMES I. INTRODUCTION For the purposes of the application of Articles 2 to 9 of the Agreement, the legal acts of the Union listed in Section II of this Annex shall apply subject to the principle of dynamic alignment referred to in Article 5 of the Institutional Protocol to this Agreement, as well as subject to the exceptions listed in paragraph 7 of that Article. Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland. This shall be applied in full respect of the Institutional Protocol to this Agreement. & /en 1  Without prejudice to Article 16 of the Institutional Protocol to this Agreement, and unless otherwise provided for in technical adaptations, provisions of the acts listed in Section II that require the Member States to provide information to other Member States or to the Commission shall apply to Switzerland. When this information relates to surveillance or application, Switzerland shall communicate this information via the Joint Committee. II. SECTORAL ADAPTATIONS 1. With regard to the acts listed in this Annex, the following exceptions shall apply as regards Switzerland: (a) cantonal legislation concerning the advances of maintenance payments shall be excluded from the coordination rules on social security; (b) supplementary benefits and similar benefits provided for under cantonal legislation shall not be exported; (c) non-contributory mixed benefits in the event of unemployment, as provided for by cantonal legislation, shall not be exported; (d) persons to whom the Agreement applies and residing outside Switzerland and the Union may join the voluntary insurance scheme not later than one year from the date on which they ceased to be covered by old-age, survivors' and invalidity insurance and after a continuous period of insurance of at least five years; & /en 2  (e) persons working outside Switzerland and the Union for an employer in Switzerland and who cease to be insured under Swiss old-age, survivors' and invalidity insurance after a continuous period of insurance of at least five years may continue the insurance, with the consent of the employer, if they submit an application within six months of the date on which they ceased to be insured; (f) the helplessness allowance granted under the Federal Law on invalidity insurance of 19 June 1959 and under the Federal Law on old-age and survivors' insurance of 20 December 1946 shall not be exported. 2. The modalities for the participation of Switzerland in the Administrative Commission for the Coordination of Social Security Systems and in the Technical Commission for Data Processing and in the Audit Board, both attached to the Administrative Commission, shall be the following: Switzerland may send a representative, present in an advisory capacity (observer), to the meetings of the Administrative Commission for the Coordination of Social Security systems, attached to the European Commission, and to the meetings of the Technical Commission for data processing and of the Audit Board. 3. Special provisions concerning the transitory arrangements relating to unemployment insurance for nationals of certain Member States holding a Swiss residence permit valid for less than one year, concerning the Swiss allowances for helpless persons and concerning the transitional period for the application of Regulation (EC) No 883/2004 to the extended pension scheme under the occupational benefit plans are set out in Protocol I, which forms an integral part of this Annex. & /en 3  4. The arrangements relating to the protection of rights acquired by private individuals under this Agreement as a consequence of the United Kingdom's withdrawal from the Union are set out in Protocol II, which forms an integral part of this Annex. A. GENERAL SOCIAL SECURITY COORDINATION A.1 ACTS REFERRED TO 1. 32004 R 0883: Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p. 1), as corrected by OJ L 200, 7.6.2004, p. 1 and OJ L 204, 4.8.2007, p. 30, as amended by: – 32009 R 0988: Regulation (EC) No 988/2009 of the European Parliament and of the Council of 16 September 2009 (OJ L 284, 30.10.2009, p. 43), – 32010 R 1244: Commission Regulation (EU) No 1244/2010 of 9 December 2010 (OJ L 338, 22.12.2010, p. 35), – 32012 R 0465: Regulation (EU) No 465/2012 of the European Parliament and of the Council of 22 May 2012 (OJ L 149, 8.6.2012, p. 4), – 32012 R 1224: Commission Regulation (EU) No 1224/2012 of 18 December 2012 (OJ L 349, 19.12.2012, p. 45), – 32013 R 0517: Council Regulation (EU) No 517/2013 of 13 May 2013 (OJ L 158, 10.6.2013, p. 1), & /en 4 – 32013 R 1372: Commission Regulation (EU) No 1372/2013 of 19 December 2013 (OJ L 346, 20.12.2013, p. 27), as amended by: – 32014 R 1368: Commission Regulation (EU) No 1368/2014 of 17 December 2014 (OJ L 366, 20.12.2014, p. 15), as corrected by OJ L 288, 22.10.2016, p. 58, – 32017 R 0492: Commission Regulation (EU) 2017/492 of 21 March 2017 (OJ L 76, 22.3.2017, p. 13), – 32019 R 1149: Regulation (EU) 2019/1149 of the European Parliament and of the Council of 20 June 2019 (OJ L 186, 11.7.2019, p. 21). For the purposes of this Agreement, Regulation (EC) No 883/2004 shall be adapted as follows: (a) the following text is added to Annex I, Section I: 'Switzerland Cantonal legislation concerning the advances of maintenance payments based on Articles 131a paragraph 1 and 293 paragraph 2 of the Federal Civil Act of 10 December 1907.'; & /en 5 (b) the following text is added to Annex I, Section II: 'Switzerland Birth grants and adoption grants pursuant to the relevant cantonal legislation based on Article 3 paragraph 2 of the Federal Law on Family Allowances of 24 March 2006.'; (c) the following text is added to Annex II: 'Germany-Switzerland (a) Convention on social security of 25 February 1964, as amended by Complementary Conventions No 1 of 9 September 1975 and No 2 of 2 March 1989: (i) point 9b, paragraph 1, Nos 1-4 of the Final Protocol (legislation applicable and entitlement to sickness benefits in kind for residents of the German exclave of Büsingen); (ii) point 9e, paragraph 1(b), first, second and fourth sentences, of the Final Protocol (access to voluntary sickness insurance in Germany by relocation in Germany). & /en 6  (b) Convention on unemployment insurance of 20 October 1982, as amended by the Additional Protocol of 22 December 1992: Article 8(5), Germany (district of Büsingen) shall contribute a sum equivalent to the cantonal contribution under Swiss law towards the cost of actual places on employment-promotion measures for workers subject to this provision. Spain-Switzerland Point 17 of the Final Protocol to the Convention on social security of 13 October 1969, as amended by the Complementary Convention of 11 June 1982; persons insured under the Spanish scheme by virtue of this provision are exempted from the requirement to join the Swiss sickness insurance scheme. Italy-Switzerland Article 9(1) of the Convention on social security of 14 December 1962, as amended by Complementary Convention No 1 of 18 December 1963, the Complementary Agreement of 4 July 1969, the Additional Protocol of 25 February 1974 and Complementary Agreement No 2 of 2 April 1980.'; (d) the following text is added to Annex IV: 'Switzerland'; & /en 7 (e) the following text is added to Annex VIII, part 1: 'Switzerland All claims for old-age, survivors' and invalidity pensions under the basic scheme (Federal Law on old-age and survivors' insurance of 20 December 1946 and Federal Law on invalidity insurance of 19 June 1959) and old-age pensions from the minimum and the extended pension scheme under the statutory occupational benefit plans (Federal Law on occupational benefit plans for old-age, survivors' and invalidity insurance of 25 June 1982).'; (f) the following text is added to Annex VIII, part 2: 'Switzerland Old-age, survivors' and invalidity pensions from the minimum and the extended pension scheme under the statutory occupational benefit plans (Federal Law on occupational benefit plans for old-age, survivors' and invalidity insurance of 25 June 1982).'; (g) the following text is added to Annex IX, part II: 'Switzerland Survivors' and invalidity pensions from the minimum and the extended pension scheme under the statutory occupational benefit plans (Federal Law on occupational benefit plans for old-age, survivors' and invalidity insurance of 25 June 1982).'; & /en 8 (h) the following text is added to Annex X: 'Switzerland 1. Supplementary benefits (Federal Law on Supplementary Benefits of 6 October 2006) and similar benefits provided for under cantonal legislation. 2. Pensions in the case of hardship under invalidity insurance (Article 28 subparagraph 1a of the Federal Law on Invalidity Insurance of 19 June 1959, as amended on 7 October 1994). 3. Non-contributory mixed benefits in the event of unemployment, as provided for under cantonal legislation. 4. Non-contributory extraordinary invalidity pensions for disabled persons (Article 39 of the Federal Law on Invalidity Insurance of 19 June 1959) who have not been subject, before their incapacity for work, to the Swiss legislation on the basis of an activity as an employed or self-employed person.'; & /en 9 (i) the following text is added to Annex XI: 'Switzerland 1. Article 2 of the Federal Law on Old-Age and Survivors' Insurance of 20 December 1946 and Article 1b of the Federal Law on Invalidity Insurance of 19 June 1959, which govern voluntary insurance in those insurance branches for Swiss nationals resident in States not subject to this Agreement, shall be applicable to persons resident outside Switzerland who are nationals of the other States to which this Agreement applies, and to refugees and stateless persons resident in the territory of those States, where those persons join the voluntary insurance scheme not later than one year from the date on which they ceased to be covered by old-age, survivors' and invalidity insurance after a continuous period of insurance of at least five years. 2. Where a person ceases to be insured under Swiss old-age, survivors' and invalidity insurance after a continuous period of insurance of at least five years, he shall continue to be entitled to be insured with the agreement of the employer if he works in a State to which this Agreement does not apply for an employer in Switzerland and if he submits an application to this effect within six months of the date on which he ceases to be insured. & /en 10 3. Compulsory insurance under Swiss sickness insurance and possible exemptions (a) The Swiss legal provisions governing compulsory sickness insurance shall apply to the following persons not resident in Switzerland: (i) persons subject to Swiss legal provisions under Title II of the Regulation; (ii) persons for whom Switzerland shall bear the costs of benefits according to Articles 24, 25, 26 of the Regulation; (iii) persons receiving Swiss unemployment insurance benefits; (iv) family members of persons referred to in points (i) and (iii) or of an employed or self-employed person resident in Switzerland who is insured under the Swiss sickness insurance scheme, unless those family members are resident in one of the following States: Denmark, Spain, Hungary, Portugal or Sweden; (v) family members of persons referred to in point (ii) or of a pensioner resident in Switzerland who is insured under the Swiss sickness insurance scheme, unless those family members are resident in one of the following States: Denmark, Portugal or Sweden. & /en 11  As family members are considered those persons who are defined as family members according to the legislation of the State of residence. (b) Persons referred to in point (a) may, on request, be exempted from compulsory insurance if, and as long as, they are resident in one of the following States and can prove that they are eligible for cover in the event of sickness: Germany, France, Italy, Austria, and, with regard to persons referred to in point (a)(iv) and (v), Finland, and, with regard to persons referred to in point (a)(ii), Portugal. The request referred to in point (b) shall: (a) be submitted within three months of the date on which the obligation to take out insurance in Switzerland comes into effect; where, in justified cases, the request is submitted after this deadline, the exemption shall take effect as from the commencement of the insurance obligation; (b) apply to all family members residing in the same State. & /en 12 4. Where a person subject to Swiss legal provisions under Title II of the Regulation is, in application of point 3(b), subject for the purposes of sickness insurance to the legal provisions of another State covered by this Agreement, the costs of those benefits in kind for non-occupational accidents shall be shared equally between the Swiss insurer against occupational and non-occupational accidents and industrial diseases and the competent sickness insurance institution if an entitlement exists to benefits in kind from both bodies. The Swiss insurer against occupational and non- occupational accidents and industrial diseases shall meet all costs in the event of occupational accidents, accidents on the way to work or industrial diseases, even where there is an entitlement to benefits from a sickness insurance body in the country of residence. 5. Persons who are working, but not residing in Switzerland and who have statutory insurance cover in their State of residence in accordance with point 3(b), as well as their family members, shall benefit from the provisions of Article 19 of the Regulation during a stay in Switzerland. 6. For the purpose of applying Articles 18, 19, 20 and 27 of the Regulation in Switzerland, the competent insurer shall bear all invoiced costs. 7. Periods of daily allowance insurance completed under the insurance scheme of another State to which this Agreement applies shall be taken into account for reducing or lifting a possible reserve in daily allowance insurance in the event of maternity or sickness where the person becomes insured with a Swiss insurer within three months of ceasing to be covered by insurance in another country. & /en 13  8. Where a person who was gainfully employed or self-employed in Switzerland and covering his vital needs has had to cease his activity owing to an accident or illness and is no longer subject to Swiss legislation on invalidity insurance, that person shall be considered to be covered by that insurance for the purposes of eligibility for rehabilitation measures until the payment of an invalidity pension and throughout the period during which the person benefits from those measures, provided that he has not taken up a new activity outside Switzerland.'. For the purposes of this Agreement, Regulation (EC) No 883/2004 shall be read with the following adaptation: In Article 77(2) and 78, the reference to Community provisions on the protection of natural persons with regard to the processing and free movement of personal data shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation. 2. 32019 R 0500: Regulation (EU) 2019/500 of the European Parliament and of the Council of 25 March 2019 establishing contingency measures in the field of social security coordination following the withdrawal of the United Kingdom from the Union (OJ L 85I, 27.3.2019, p. 35). & /en 14 3. 32009 R 0987: Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems (OJ L 284, 30.10.2009, p. 1), as amended by: – 32010 R 1244: Commission Regulation (EU) No 1244/2010 of 9 December 2010 (OJ L 338, 22.12.2010, p. 35), – 32012 R 0465: Regulation (EU) No 465/2012 of the European Parliament and of the Council of 22 May 2012 (OJ L 149, 8.6.2012, p. 4), – 32012 R 1224: Commission Regulation (EU) No 1224/2012 of 18 December 2012 (OJ L 349, 19.12.2012, p. 45), – 32013 R 1372: Commission Regulation (EU) No 1372/2013 of 19 December 2013 (OJ L 346, 20.12.2013, p. 27), – 32014 R 1368: Commission Regulation (EU) No 1368/2014 of 17 December 2014 (OJ L 366, 20.12.2014, p. 15), as corrected by OJ L 288, 22.10.2016.p. 58, – 32017 R 0492: Commission Regulation (EU) 2017/492 of 21 March 2017 (OJ L 76, 22.3.2017, p. 13). & /en 15 For the purposes of this Agreement, Regulation (EC) No 987/2009 shall be adapted as follows: The following text is added to Annex 1: 'Agreement between Switzerland and Portugal of 25 May 2016 on the offsetting of claims Agreement between Switzerland and Greece of 15 November 2017 on the offsetting of claims concerning benefits in kind according to Regulations (ECC) No 1408/71 and (ECC) No 574/72 and Regulations (EC) No 883/2004 and (EC) No 987/2009 Agreement between Switzerland and Italy of 27 February 2023 on the offsetting of claims. For the purposes of this Agreement, Regulation (EC) No 987/2009 shall be read with the following adaptation: In Article 3(3), the reference to Community provisions on the protection of natural persons with regard to the processing and free movement of personal data shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation. & /en 16  4. 31971 R 1408: Council Regulation (EEC) No 1408/71 of 14 June 1971 on the application of social security schemes to employed persons, to self-employed persons and to the members of their families moving within the Community (OJ L 149, 5.7.1971, p. 2), as last amended by Regulation (EC) No 592/2008 of the European Parliament and of the Council (OJ L 177, 4.7.2008, p. 1), as applicable between Switzerland and the Member States before the entry into force of Decision 1/2012 of 31 March 2012 of the Joint Committee1, and when referred to in Regulation (EC) No 883/2004 or (EC) No 987/2009 or when cases are concerned which occurred in the past. 5. 31972 R 0574: Council Regulation (EEC) No 574/72 of 21 March 1972 laying down the procedure for implementing Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to the members of their families moving within the Community (OJ L 74, 27.3.1972, p. 1), as last amended by Commission Regulation (EC) No 120/2009 (OJ L 39, 10.2.2009, p. 2), as applicable between Switzerland and the Member States before the entry into force of Decision 1/2012 of 31 March 20122 of the Joint Committee, and when referred to in Regulation (EC) No 883/2004 or (EC) No 987/2009 or when cases are concerned which occurred in the past. 1 Decision No 1/2012 of the Joint Committee established under the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons of 31 March 2012 replacing Annex II to that Agreement on the coordination of social security schemes (OJ L 103, 13.4.2012, p. 51). 2 Decision No 1/2012 of the Joint Committee established under the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons of 31 March 2012 replacing Annex II to that Agreement on the coordination of social security schemes (OJ L 103, 13.4.2012, p. 51). & /en 17 A.2 ACTS OF WHICH THE CONTRACTING PARTIES SHALL TAKE DUE ACCOUNT 1. 32010 D 0424(01): Decision of the Administrative Commission for the Coordination of Social Security Systems No A1 of 12 June 2009 concerning the establishment of a dialogue and conciliation procedure concerning the validity of documents, the determination of the applicable legislation and the provision of benefits under Regulation (EC) No 883/2004 of the European Parliament and of the Council (OJ C 106, 24.4.2010, p. 1). 2. 32010 D 0424(02): Decision of the Administrative Commission for the Coordination of Social Security Systems No A2 of 12 June 2009 concerning the interpretation of Article 12 of Regulation (EC) No 883/2004 of the European Parliament and of the Council on the legislation applicable to posted workers and self-employed workers temporarily working outside the competent State (OJ C 106, 24.4.2010, p. 5). 3. 32010 D 0608(01): Decision of the Administrative Commission for the Coordination of Social Security Systems No A3 of 17 December 2009 concerning the aggregation of uninterrupted posting periods completed under the Council Regulation (EEC) No 1408/71 and Regulation (EC) No 883/2004 of the European Parliament and of the Council (OJ C 149, 8.6.2010, p. 3). 4. 32014 D 0520(03): Decision No E4 of 13 March 2014 concerning the transitional period as defined in Article 95 of Regulation (EC) No 987/2009 of the European Parliament and of the Council (OJ C 152, 20.5.2014, p. 21). & /en 18 5. 32017 D 0719(01): Decision No E5 of 16 March 2017 concerning the practical arrangements for the transitional period for the data exchange via electronic means referred to in Article 4 of Regulation (EC) No 987/2009 of the European Parliament and of the Council (OJ C 233, 19.7.2017, p. 3). 6. 32018 D 1004 (02): Decision No E6 of 19 October 2017 concerning the determination of when an electronic message is considered legally delivered in the Electronic Exchange of Social Security Information (EESSI) system (OJ C 355, 4.10.2018, p. 5). 7. 32020 D 0306 (01): Decision No E7 of 27 June 2019 concerning practical arrangements for cooperation and data exchange until the Electronic Exchange of Social Security Information (EESSI) is fully implemented in Member States (OJ C 73, 6.3.2020, p. 5). 8. 32024 D 06842: Administrative Commission for the Coordination of Social Security Systems Decision No E8 of 14 March 2024 Concerning the establishment of a change management procedure applying to details of the bodies defined in Article 1 of Regulation (EC) No 883/2004 which are listed in the electronic directory which is an inherent part of EESSI (OJ C, C/2024/6842, 12.11.2024) 9. 32010 D 0424(04): Decision of the Administrative Commission for the Coordination of Social Security Systems No F1 of 12 June 2009 concerning the interpretation of Article 68 of Regulation (EC) No 883/2004 of the European Parliament and of the Council relating to priority rules in the event of overlapping of family benefits (OJ C 106, 24.4.2010, p. 11). & /en 19 10. 32016 D 0211(05): Decision No F2 of 23 June 2015 on the exchange of data between institutions for the purpose of granting family benefits (OJ C 52, 11.2.2016, p. 11). 11. 32019 D 0626(01): Decision No F3 of 19 December 2018 concerning the interpretation of Article 68 of Regulation (EC) No 883/2004 relating to the method for the calculation of the differential supplement (OJ C 215, 26.6.2019, p. 2). 12. 32010 D 0424(05): Decision of the Administrative Commission for the Coordination of Social Security Systems No H1 of 12 June 2009 concerning the framework for the transition from Council Regulations (EEC) No 1408/71 and (EEC) No 574/72 to Regulations (EC) No 883/2004 and (EC) No 987/2009 of the European Parliament and of the Council and the application of Decisions and Recommendations of the Administrative Commission for the coordination of social security systems (OJ C 106, 24.4.2010, p. 13). 13. 32010 D 0608(02): Decision of the Administrative Commission for the Coordination of Social Security Systems No H 5 of 18 March 2010 concerning cooperation on combating fraud and error within the framework of Council Regulation (EC) No 883/2004 and Regulation (EC) No 987/2009 of the European Parliament and of the Council on the coordination of social security systems (OJ C 149, 8.6.2010, p. 5). 14. 32011 D 0212(01): Decision No H6 of 16 December 2010 concerning the application of certain principles regarding the aggregation of periods under Article 6 of Regulation (EC) No 883/2004 on the coordination of social security systems (OJ C 45, 12.2.2011, p. 5). & /en 20 15. 32021 D 0506 (01): Decision No H11 of 9 December 2020 regarding the postponement of deadlines mentioned in Articles 67 and 70 of Regulation (EC) No 987/2009 as well as in Decision No S9 due to the COVID-19 Pandemic (OJ C 170, 6.5.2021, p. 4). 16. 32022 D 0228 (01): Decision No H12 of 19 October 2021 concerning the date to be taken into consideration for determining the rates of conversion referred to in Article 90 of Regulation (EC) No 987/2009 of the European Parliament and of the Council (OJ C 93, 28.2.2022, p. 6). 17. 32022 D 0810(01): Decision No H13 of 30 March 2022 concerning the composition and working methods of the Audit Board of the Administrative Commission for the Coordination of Social Security Systems (Text of relevance to the EEA and to the EC/Switzerland Agreement) 2022/C 305/03 (OJ C 305, 10.8.2022, p. 4). 18. 32024 D 00594: Decision No H14 of 21 June 2023 concerning the publication of the Guidance note on COVID-19 pandemic, the note on the interpretation of the application of Title II of Regulation (EC) No 883/2004 and Articles 67 and 70 of Regulation (EC) No 987/2009 during the COVID-19 pandemic, the Guidance note on telework applicable for the period between 1 July 2022 and 30 June 2023 and the Guidance note on telework applicable from 1 July 2023 (OJ C/2024/594, 11.01.2024). 19. 32024 D 06845: Decision No H15 of 27 June 2024 concerning the methods of operation and the composition of the Technical Commission for Data Processing of the Administrative Commission for the Coordination of Social Security Systems (OJ C, C/2024/6845, 14.11.2024). & /en 21 20. 32010 D 0424(07): Decision of the Administrative Commission for the Coordination of Social Security Systems No P1 of 12 June 2009 on the interpretation of Articles 50(4), 58 and 87(5) of Regulation (EC) No 883/2004 of the European Parliament and of the Council for the award of invalidity, old-Age and survivors' benefits (OJ C 106, 24.4.2010, p. 21). 21. 32013 D 0927(01): Decision No R1 of 20 June 2013 concerning the interpretation of Article 85 of Regulation (EC) No 987/2009 (OJ C 279, 27.9.2013, p. 11). 22. 32010 D 0424(08): Decision of the Administrative Commission for the Coordination of Social Security Systems No S1 of 12 June 2009 concerning the European Health Insurance Card (OJ C 106, 24.4.2010, p. 23). 23. 32010 D 0424(09): Decision of the Administrative Commission for the Coordination of Social Security Systems No S2 of 12 June 2009 concerning the technical specifications of the European Health Insurance Card (OJ C 106, 24.4.2010, p. 26). 24. 32010 D 0424(10): Decision of the Administrative Commission for the Coordination of Social Security Systems No S3 of 12 June 2009 defining the benefits covered by Articles 19(1) and 27(1) of Regulation (EC) No 883/2004 of the European Parliament and of the Council and Article 25(A) (3) of Regulation (EC) No 987/2009 of the European Parliament and of the Council (OJ C 106, 24.4.2010, p. 40). & /en 22 25. 32010 D 0424(15): Decision of the Administrative Commission for the Coordination of Social Security Systems No S5 of 2 October 2009 on interpretation of the concept of 'benefits in kind' as defined in Article 1(va) of Regulation (EC) No 883/2004 of the European Parliament and of the Council in the event of sickness or maternity pursuant to Articles 17, 19, 20, 22, 24 (1), 25, 26, 27 (1, 3, 4 and 5), 28, 34 and 36 (1 and 2) of Regulation (EC) No 883/2004 and on calculation of the amounts to be refunded under Articles 62, 63 and 64 of Regulation (EC) No 987/2009 of the European Parliament and of the Council (OJ C 106, 24/04/2010, p. 54). 26. 32010 D 0427(02): Decision of the Administrative Commission for the Coordination of Social Security Systems No S6 of 22 December 2009 concerning the registration in the Member State of residence under Article 24 of Regulation (EC) No 987/2009 and the compilation of the inventories provided for in Article 64(4) of Regulation (EC) No 987/2009 (OJ C 107, 27/04/2010, p. 6). 27. 32011 D 0906(01): Decision No S8 of 15 June 2011 concerning the granting of prostheses, major appliances and other substantial benefits in kind provided for in Article 33 of Regulation (EC) No 883/2004 on the coordination of social security systems (OJ C 262, 6.9.2011, p. 6). 28. 32014 D 0520(02): Decision No S10 of 19 December 2013 concerning the transition from Regulations (EEC) Nos 1408/71 and 574/72 to Regulations (EC) Nos 883/2004 and 987/2009 and the application of reimbursement procedures (OJ C 152, 20.5.2014, p. 16). & /en 23 29. 32021 D 0618(01): Decision No S11 of 9 December 2020 concerning refund procedures for the implementation of Articles 35 and 41 of Regulation (EC) No 883/2004 (OJ C 236, 18.6.2021, p. 4). 30. 32025 D 01598: Decision No S12 of 16 October 2024 concerning the reimbursement of healthcare in connection to patients' transfer to another Member State in case of mass casualties following disasters (OJ C, C/2025/1598, 13.3.2025). 31. 32010 D 0424(11): Decision of the Administrative Commission for the Coordination of Social Security Systems No U1 of 12 June 2009 concerning Article 54(3) of Regulation (EC) No 987/2009 of the European Parliament and of the Council relating to increases in unemployment benefit for dependent members of the family (OJ C 106, 24.4.2010, p. 26). 32. 32010 D 0424(12): Decision of the Administrative Commission for the Coordination of Social Security Systems No U2 of 12 June 2009 concerning the scope of Article 65(2) of Regulation (EC) No 883/2004 of the European Parliament and of the Council on the right to unemployment benefits of wholly unemployed persons other than frontier workers who were resident in the territory of a Member State other than the competent Member State during their last period of employment or self-employment (OJ C 106, 24.4.2010, p. 43). 33. 32010 D 0424(13): Decision of the Administrative Commission for the Coordination of Social Security Systems No U3 of 12 June 2009 concerning the scope of the concept of 'partial unemployment' applicable to the unemployed persons referred to in Article 65(1) of Regulation (EC) No 883/2004 of the European Parliament and of the Council (OJ C 106, 24.4.2010, p. 45). & /en 24 34. 32012 D 0225(01): Decision No U4 of 13 December 2011 concerning the reimbursement procedures under Article 65(6) and (7) of Regulation (EC) No 883/2004 and Article 70 of Regulation (EC) No 987/2009 (OJ C 57, 25.2.2012, p. 4). A.3 ACTS OF WHICH THE CONTRACTING PARTIES SHALL TAKE NOTE 1. 32018 H 0529(01): Recommendation No A1 of 18 October 2017 concerning the issuance of the attestation referred to in Article 19(2) of Regulation (EC) No 987/2009 of the European Parliament and of the Council (OJ C 183, 29.5.2018, p. 5). 2. 32013 H 0927(01): Recommendation No H1 of 19 June 2013 concerning the Gottardo judgment, according to which the advantages enjoyed by a State's own nationals under a bilateral convention on social security with a non-member country must also be granted to workers who are nationals of other Member States (OJ C 279, 27.09.2013, p. 13). 3. 32019 H 0429(01): Recommendation No H2 of 10 October 2018 concerning the inclusion of authentication features to Portable Documents issued by the institution of a Member State and showing the position of a person for the purpose of the application of Regulations (EC) No 883/2004 and (EC) No 987/2009 of the European Parliament and of the Council (OJ C 147, 29.4.2019, p. 6). 4. 32012H0810(01) Recommendation of the Administrative Commission for the Coordination of Social Security Systems No S1 of 15 March 2012 concerning financial aspects of cross-border living organ donations (OJ C 240, 10.8.2012, p. 3). & /en 25  5. 32014 H 0218(01): Recommendation S2 of 22 October 2013 concerning the entitlement to benefits in kind for insured persons and members of their family during a stay in a third country under a bilateral convention between the competent Member State and the third country (OJ C 46, 18.02.2014, p. 8). 6. 32010 H 0424(02): Recommendation of the Administrative Commission for the Coordination of Social Security Systems No U1 of 12 June 2009 concerning the legislation applicable to unemployed persons engaging in part-time professional or trade activity in a Member State other than the State of residence (OJ C 106, 24.4.2010, p. 49). 7. 32010 H 0424(03): Recommendation of the Administrative Commission for the Coordination of Social Security Systems No U2 of 12 June 2009 concerning the application of Article 64(1)(a) of Regulation (EC) No 883/2004 of the European Parliament and of the Council to unemployed persons accompanying their spouses or partners pursuing a professional or trade activity in a Member State other than the competent State (OJ C 106, 24.4.2010, p. 51). B. SAFEGUARDING OF SUPPLEMENTARY PENSION RIGHTS ACTS REFERRED TO 1. 31998 L 0049: Council Directive 98/49/EC of 29 June 1998 on safeguarding the supplementary pension rights of employed and self-employed persons moving within the Community (OJ L 209, 25.7.1998, p. 46). & /en 26 2. 32014 L 0050: Directive 2014/50/EU of the European Parliament and of the Council of 16 April 2014 on minimum requirements for enhancing worker mobility between Member States by improving the acquisition and preservation of supplementary pension rights (OJ L 128, 30.4.2014, p. 1). The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptation: Article 6(5): the reference to Article 11 of Directive 2003/41/EC shall not apply to Switzerland. Switzerland shall take the measures referred to in Article 8 of the Directive 2014/50/EU by the first day of the forty-ninth month following the entry into force of the Amending Protocol. ________________ & /en 27  PROTOCOL I to Annex II to the Agreement I. Unemployment insurance The following arrangements shall apply to workers who are nationals of the Czech Republic, the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Poland, the Republic of Slovenia and the Slovak Republic until 30 April 2011 and to workers who are nationals of the Republic of Bulgaria and Romania until 31 May 2016. It shall apply to workers who are nationals of the Republic of Croatia until the end of the seventh year after the entry into force of the Protocol regarding the participation of the Republic of Croatia. 1. The following rules shall apply with respect to unemployment insurance for workers holding a residence permit with a period of validity of less than one year. 1.1. Only workers who have paid contributions in Switzerland for the minimum period required under the Federal Unemployment Insurance and Insolvency Allowances Act (loi fédérale sur l’assurance-chômage obligatoire et l’indemnité en cas d’insolvabilité – LACI)1 and who also satisfy the other conditions of eligibility for unemployment benefit shall be entitled to such benefit provided by the unemployment insurance under the conditions laid down by law. 1 Currently 12 months. & /en 1  1.2. A portion of the contributions levied for workers whose period of contribution is too short to give entitlement to unemployment benefit in Switzerland under 1.1 shall be refunded to their States of origin in accordance with the provisions of 1.3. in order to contribute towards the cost of benefits provided to these workers in the event of full unemployment; these workers shall then have no entitlement to benefit in the event of their being fully unemployed in Switzerland. They shall, however, be entitled to allowances for bad weather and in the event of the employer becoming insolvent. Benefits in the event of full unemployment shall be paid by the State of origin, provided that the workers concerned make themselves available for work. Periods of insurance completed in Switzerland shall be taken into account in the same way as if they had been completed in the State of origin. 1.3. The portion of the contributions levied for workers referred to in 1.2 shall be refunded on an annual basis in accordance with the following provisions: (a) The total contributions of these workers shall be calculated, by country, on the basis of the annual number of workers employed and the average annual contributions paid for each worker (employer's and employee's contributions). (b) Of the amount calculated in this way, a portion thereof corresponding to the relative share represented by unemployment benefit as a percentage of all the allowances referred to in 1.2 shall be refunded to the workers' States of origin, and a portion shall be retained by Switzerland as a reserve for subsequent benefits1. 1 Refunded contributions for workers who will exercise their right to unemployment benefit in Switzerland after having paid contributions for at least 12 months – over several periods of residence – within the space of two years. & /en 2  (c) Switzerland shall, on an annual basis, provide a statement showing the contributions refunded. If the States of origin so request, it shall indicate the bases for the calculation and the sums refunded. The States of origin shall each year notify Switzerland of the number of recipients of unemployment benefit as referred to in 1.2. 2. If a Member State concerned by this arrangement encounters difficulties with the ending of the arrangements for refunding of contributions, or Switzerland encounters difficulties with the aggregation arrangements, the matter may be referred to the Joint Committee by any of the Contracting Parties. II. Allowances for helpless persons Allowances for helpless persons granted under the Swiss Federal Law on invalidity insurance of 19 June 1959 and under the Federal Law on old-age and survivors' insurance of 20 December 1946 as amended on 8 October 1999 shall be provided exclusively if the person concerned resides in Switzerland. III. Application of Regulation (EC) No 883/2004 to the extended vested benefits Switzerland shall apply Regulation (EC) No 883/2004 to the extended scheme under the Federal Law on free movement among occupational benefit plans concerning old-age, survivors' and invalidity pensions of 17 December 1993 by the first day of the forty-ninth month following the entry into force of the Amending Protocol. & /en 3  PROTOCOL II to Annex II to the Agreement CONSIDERING that Article 33 of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (the 'Withdrawal Agreement') states that Title III of Part Two of the Withdrawal Agreement shall apply to nationals of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation provided that those countries have concluded and apply corresponding agreements with the United Kingdom of Great Britain and Northern Ireland which apply to Union citizens, as well as with the Union which apply to United Kingdom nationals, CONSIDERING that Article 26b of the Agreement between the United Kingdom of Great Britain and Northern Ireland and the Swiss Confederation on citizens' rights following the withdrawal of the United Kingdom from the European Union and the Free Movement of Persons Agreement states that the provisions of Part III of that agreement shall apply to Union citizens, provided that the Union has concluded and applies corresponding agreements with the United Kingdom of Great Britain and Northern Ireland which apply to Swiss nationals, as well as with Switzerland which applies to United Kingdom nationals, RECOGNISING that it is necessary to provide reciprocal protection of social security rights for United Kingdom nationals, as well as their family members and survivors who, by the end of the transition period, are or have been in a cross-border situation involving one or more of the Contracting Parties to the Free Movement of Persons Agreement and the United Kingdom of Great Britain and Northern Ireland at the same time, & /en 1 ARTICLE 1 Definitions and references 1. For the purposes of this Protocol the following definitions shall apply: (a) 'Withdrawal Agreement' means the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community1; (b) 'Citizens' Rights Agreement' means the Agreement between the United Kingdom of Great Britain and Northern Ireland and the Swiss Confederation on citizens' rights following the withdrawal of the United Kingdom from the European Union and the Free Movement of Persons Agreement; (c) 'States covered' means the Member States of the Union and Switzerland; (d) 'transition period' means the transition period referred to in Article 126 of the Withdrawal Agreement; (e) the definitions in Article 1 of Regulation (EC) No 883/2004 of the European Parliament and of the Council2 and Article 1 of Regulation (EC) No 987/2009 of the European Parliament and of the Council3. 1 OJ L 29, 31.1.2020, p. 7. 2 Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p. 1 as corrected in OJ L 200, 7.6.2004, p. 1). 3 Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems (OJ L 284, 30.10.2009, p. 1). & /en 2 2. For the purposes of this Protocol, all references to Member States and competent authorities of Member States in provisions of Union law made applicable by this Protocol shall be understood as including the United Kingdom and its competent authorities. ARTICLE 2 Persons covered 1. This Protocol shall apply to the following persons: (a) United Kingdom nationals who are subject to the legislation of one of the States covered at the end of the transition period, as well as their family members and survivors; (b) United Kingdom nationals who reside in one of the States covered, and are subject to the legislation of the United Kingdom at the end of the transition period, as well as their family members and survivors; (c) persons who do not fall within point (a) or (b) but are United Kingdom nationals who pursue an activity as an employed or self-employed person in one or more of the States covered at the end of the transition period, and who, based on Title II of Regulation (EC) No 883/2004, are subject to the legislation of the United Kingdom, as well as their family members and survivors; (d) stateless persons and refugees, residing in one of the States covered or in the United Kingdom, who are in one of the situations described in points (a) to (c), as well as their family members and survivors. & /en 3 2. The persons referred to in paragraph 1 shall be covered for as long as they continue without interruption to be in one of the situations set out in that paragraph involving both one of the States covered and the United Kingdom at the same time. 3. This Protocol shall also apply to United Kingdom nationals who do not, or who no longer, fall within one of the situations set out in paragraph 1 of this Article but who fall within Article 10 of the Withdrawal Agreement or within Article 10 of the Citizens' Rights Agreement, as well as their family members and survivors. 4. The persons referred to in paragraph 3 shall be covered for as long as they continue to have a right to reside in one of the States covered under Article 13 of the Withdrawal Agreement or Article 12 of the Citizens' Rights Agreement, or a right to work in their State of work under Article 24 or 25 of the Withdrawal Agreement or Article 20 of the Citizens' Rights Agreement. 5. Where this Article refers to family members and survivors, those persons shall be covered by this Protocol only to the extent that they derive rights and obligations in that capacity under Regulation (EC) No 883/2004. ARTICLE 3 Social security coordination rules 1. The rules and objectives set out in Article 8 of the Agreement and in this Annex, Regulations (EC) No 883/2004 and (EC) No 987/2009 shall apply to the persons covered by this Protocol. & /en 4 2. The States covered shall take due account of the Decisions and Recommendations of the Administrative Commission for the Coordination of Social Security Systems attached to the European Commission set up under Regulation (EC) No 883/2004 (the 'Administrative Commission') listed in Section A of this Annex. ARTICLE 4 Special situations covered 1. The following rules shall apply in the following situations to the extent set out in this Article, insofar as they relate to persons not, or no longer, covered by Article 2: (a) United Kingdom nationals, as well as stateless persons and refugees residing in the United Kingdom who have been subject to the legislation of one of the States covered before the end of the transition period, as well as their family members and survivors, shall be covered by this Protocol for the purposes of reliance on, and aggregation of, periods of insurance, employment, self-employment or residence, including rights and obligations deriving from such periods in accordance with Regulation (EC) No 883/2004; for the purposes of the aggregation of periods, periods completed both before and after the end of the transition period shall be taken into account in accordance with Regulation (EC) No 883/2004; & /en 5 (b) the rules set out in Articles 20 and 27 of Regulation (EC) No 883/2004 shall continue to apply to United Kingdom nationals, as well as stateless persons and refugees residing in the United Kingdom who, before the end of the transition period, had requested authorisation to receive a course of planned health care treatment pursuant to Regulation (EC) No 883/2004, until the end of the treatment. The corresponding reimbursement procedures shall also apply even after the treatment ends. Such persons and the accompanying persons shall enjoy the right to enter and exit the State of treatment in accordance with Article 14 of the Withdrawal Agreement mutatis mutandis and with Article 13 of the Citizens' Rights Agreement mutatis mutandis; (c) the rules set out in Articles 19 and 27 of Regulation (EC) No 883/2004 shall continue to apply to United Kingdom nationals, as well as stateless persons and refugees residing in the United Kingdom who are covered by Regulation (EC) No 883/2004 and who are on a stay at the end of the transition period in one of the States covered or the United Kingdom, until the end of their stay. The corresponding reimbursement procedures shall also apply even after the stay or treatment ends; (d) the rules set out in Articles 67, 68 and 69 of Regulation (EC) No 883/2004 shall continue to apply, for as long as the conditions are fulfilled, to awards of family benefits to which there is entitlement at the end of the transition period for United Kingdom nationals, as well as stateless persons and refugees residing in the United Kingdom who are subject to the legislation of the United Kingdom and have family members residing in one of the States covered at the end of the transition period; (e) in the situations set out in point (d) of this paragraph, for any persons who have rights as family members at the end of the transition period under Regulation (EC) No 883/2004, such as derived rights for sickness benefits in kind, that Regulation and the corresponding provisions of Regulation (EC) No 987/2009 shall continue to apply for as long as the conditions provided therein are fulfilled. & /en 6 2. The provisions of Chapter 1 of Title III of Regulation (EC) No 883/2004 as regards sickness benefits shall apply to persons receiving benefits under point (a) of paragraph 1 of this Article. This paragraph shall apply mutatis mutandis as regards family benefits based on Articles 67, 68 and 69 of Regulation (EC) No 883/2004. ARTICLE 5 Reimbursement, recovery and offsetting The provisions of Regulations (EC) No 883/2004 and (EC) No 987/2009 on reimbursement, recovery and offsetting shall continue to apply in relation to events, insofar as they relate to persons not covered by Article 2, that: (a) occurred before the end of the transition period; or (b) occur after the end of the transition period and relate to persons who were covered by Article 2 or 4 when the event occurred. & /en 7 ARTICLE 6 Development of law and adaptations 1. Notwithstanding paragraph 3, references in this Protocol to Regulations (EC) No 883/2004 and (EC) No 987/2009 or provisions thereof, shall be understood as references to the acts or provisions as integrated into the Agreement, as applicable on the last day of the transition period. 2. Where Regulations (EC) No 883/2004 and (EC) No 987/2009 are amended or replaced after the end of the transition period, references to those Regulations in this Protocol shall be understood as referring to those Regulations as amended or replaced, in accordance with the acts listed in Part II of Annex I to the Withdrawal Agreement, as regards the Union, and Part II of Annex I to the Citizens' Rights Agreement, as regards Switzerland. 3. Regulations (EC) No 883/2004 and (EC) No 987/2009 shall, for the purposes of this Protocol, be understood as comprising the adaptations listed in Part III of Annex I to the Withdrawal Agreement, as regards the Union, and Part III of Annex I of the Citizens' Rights Agreement, as regards Switzerland. 4. For the purposes of this Protocol, the amendments and adaptations referred to in paragraphs 2 and 3 shall take effect on the day following the day on which the corresponding amendments and adaptations of Annex I to the Withdrawal Agreement or of Annex I to the Citizens' Rights Agreement take effect, whichever is the latest.". _______________ & /en 8  ANNEX III MUTUAL RECOGNITION OF PROFESSIONAL QUALIFICATIONS Amendments to Annex III to the Agreement Annex III to the Agreement is replaced by the following: "ANNEX III MUTUAL RECOGNITION OF PROFESSIONAL QUALIFICATIONS (Diplomas, certificates and other evidence of formal qualifications) SECTION 1 INTRODUCTION For the purposes of the application of Articles 2 to 9 of the Agreement, the legal acts of the Union listed in Section 2 of this Annex, shall apply subject to the principle of dynamic alignment referred to in Article 5 of the Institutional Protocol to this Agreement, as well as subject to the exceptions listed in paragraph 7 of that Article. & /en 1 Unless otherwise provided for in technical adaptations, rights and obligations provided for in the legal acts of the Union integrated into this Annex for Member States of the Union shall be understood to be provided for for Switzerland. This shall be applied in full respect of the Institutional Protocol to this Agreement. Without prejudice to Article 16 of the Institutional Protocol to this Agreement, and unless otherwise provided for in technical adaptations, provisions in the acts listed in Section 2 that require the Member States to provide information to other Member States or to the Commission shall apply to Switzerland. When this information relates to surveillance or application, Switzerland shall communicate this information via the Joint Committee. SECTION 2 ACTS REFERRED TO 1. 32005 L 0036: Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications (OJ L 255, 30.9.2005, p. 22), as amended by: – Council Directive 2006/100/EC of 20 November 2006 adapting certain Directives in the field of freedom of movement of persons, by reason of the accession of Bulgaria and Romania (OJ L 363, 20.12.2006, p. 141), & /en 2 – Commission Regulation (EU) No 213/2011 of 3 March 2011 amending Annexes II and V to Directive 2005/36/EC of the European Parliament and of the Council on the recognition of professional qualifications (OJ L 59, 4.3.2011, p. 4), – Communication from the Commission – Notification of the professional associations or organisations fulfilling the conditions of Article 3(2) listed under Annex I to Directive 2005/36/EC (OJ C 111, 15.5.2009, p. 1), – Communication from the Commission – Notification of the professional associations or organisations fulfilling the conditions of Article 3(2) listed under Annex I to Directive 2005/36/EC (OJ C 182, 23.6.2011, p. 1), – Act concerning the conditions of accession of the Republic of Croatia and the adjustments to the Treaty on European Union, the Treaty on the Functioning of the European Union and the Treaty establishing the European Atomic Energy Community (OJ L 112, 24.4.2012, p. 10), – Council Directive 2013/25/EU of 13 May 2013 adapting certain directives in the field of right of establishment and freedom to provide services, by reason of the accession of the Republic of Croatia (OJ L 158, 10.6.2013, p. 368), – Directive 2013/55/EU of the European Parliament and of the Council of 20 November 2013 amending Directive 2005/36/EC on the recognition of professional qualifications and Regulation (EU) No 1024/2012 on administrative cooperation through the Internal Market Information System (OJ L 354, 28.12.2013, p. 132), & /en 3 – Commission Delegated Decision (EU) 2016/790 of 13 January 2016 amending Annex V to Directive 2005/36/EC of the European Parliament and of the Council as regards the evidence of formal qualifications and the titles of training courses (OJ L 134, 24.5.2016, p. 135), – Commission Delegated Decision (EU) 2017/2113 of 11 September 2017 amending Annex V to Directive 2005/36/EC of the European Parliament and of the Council as regards evidence of formal qualifications and the titles of training courses (OJ L 317, 1.12.2017, p. 119), – Commission Delegated Decision (EU) 2019/608 of 16 January 2019 amending Annex V to Directive 2005/36/EC of the European Parliament and of the Council as regards the evidence of formal qualifications and titles of training courses (OJ L 104, 15.4.2019, p. 1), – Commission Delegated Decision (EU) 2020/548 of 23 January 2020 amending Annex V to Directive 2005/36/EC of the European Parliament and of the Council as regards the evidence of formal qualifications and titles of training courses (OJ L 131, 24.4.2020, p. 1), – Commission Delegated Decision (EU) 2021/2183 of 25 August 2021 amending Annex V to Directive 2005/36/EC of the European Parliament and of the Council as regards the evidence of formal qualifications and titles of training courses (OJ L 444, 10.12.2021, p. 16), – Commission Delegated Decision (EU) 2023/2383 of 23 May 2023 amending and correcting Directive 2005/36/EC of the European Parliament and of the Council as regards the evidence of formal qualifications and titles of training courses (OJ L 2383, 9.10.2023, p. 1), & /en 4 – Commission Delegated Directive (EU) 2024/782 of 4 March 2024 amending Directive 2005/36/EC of the European Parliament and of the Council as regards the minimum training requirements for the professions of nurse responsible for general care, dental practitioner and pharmacist (OJ L, 2024/782, 31.5.2024), – Commission Delegated Decision (EU) 2024/1395 of 31 May 2024 amending Directive 2005/36/EC of the European Parliament and of the Council as regards the evidence of formal qualifications and titles of training courses (OJ L, 2024/1395, 31.5.2024). corrected by: – Corrigendum to Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications (OJ L 93, 4.4.2008, p. 28), – Corrigendum to Council Directive 2006/100/EC of 20 November 2006 adapting certain Directives in the field of freedom of movement of persons, by reason of the accession of Bulgaria and Romania (OJ L 177, 8.7.2015, p. 60). & /en 5 The provisions of the Directive shall, for the purposes of this Agreement, be read with the following adaptations: (a) the following text is added to point 5.1.1 of Annex V to the Directive: Certificate Evidence of formal Body awarding the Reference 'Country accompanying the qualifications qualifications date qualifications Switzerland Eidgenössisches Eidgenössisches 1 June 2002' Arztdiplom Departement des Innern Diplôme fédéral de médecin Département fédéral de l’intérieur Diploma federale di medico Dipartimento federale dell’interno (b) the following text is added to point 5.1.2 of Annex V to the Directive: Evidence of formal Reference 'Country Body awarding the qualifications qualifications date Switzerland Diplom als Facharzt Eidgenössisches Departement des Innern 1 June 2002' und Verbindung der Schweizer Ärztinnen Diplôme de und Ärzte (FMH) / Schweizerische médecin spécialiste Institut für ärztliche Weiter- und Diploma di medico Fortbildung (SIWF) specialista Département fédéral de l’intérieur et Fédération des médecins suisses (FMH) / Institut suisse pour la formation médicale postgraduée et continue (ISFM) Dipartimento federale dell’interno e Federazione dei medici svizzeri (FMH) / Istituto svizzero per la formazione medica (ISFM) & /en 6 (c) the following text is added to point 5.1.3 of Annex V to the Directive: 'Country Title Anaesthetics Minimum period of training: 3 years Switzerland Anästhesiologie Anesthésiologie Anestesiologia Country Title General surgery Minimum period of training: 5 years Switzerland Chirurgie Chirurgie Chirurgia Country Title Neurological surgery Minimum period of training: 5 years Switzerland Neurochirurgie Neurochirurgie Neurochirurgia Country Title Obstetrics and gynaecology Minimum period of training: 4 years Switzerland Gynäkologie und Geburtshilfe Gynécologie et obstétrique Ginecologia e ostetricia & /en 7 Country Title General (internal) medicine Minimum period of training: 5 years Switzerland Allgemeine Innere Medizin Médecine interne générale Medicina interna generale Country Title Ophthalmology Minimum period of training: 3 years Switzerland Ophthalmologie Ophtalmologie Oftalmologia Country Title Otorhinolaryngology Minimum period of training: 3 years Switzerland Oto-Rhino-Laryngologie Oto-rhino-laryngologie Otorinolaringoiatria Country Title Paediatrics Minimum period of training: 4 years Switzerland Kinder- und Jugendmedizin Pédiatrie Pediatria & /en 8 Country Title Respiratory medicine Minimum period of training: 4 years Switzerland Pneumologie Pneumologie Pneumologia Country Title Urology Minimum period of training: 5 years Switzerland Urologie Urologie Urologia Country Title Orthopaedics Minimum period of training: 5 years Switzerland Orthopädische Chirurgie und Traumatologie des Bewegungsapparates Chirurgie orthopédique et traumatologie de l’appareil locomoteur Chirurgia ortopedica e traumatologia dell’apparato locomotore Country Title Pathological anatomy Minimum period of training: 4 years Switzerland Pathologie Pathologie Patologia & /en 9 Country Title Neurology Minimum period of training: 4 years Switzerland Neurologie Neurologie Neurologia Country Title Psychiatry Minimum period of training: 4 years Switzerland Psychiatrie und Psychotherapie Psychiatrie et psychothérapie Psichiatria e psicoterapia Country Title Diagnostic radiology Minimum period of training: 4 years Switzerland Radiologie Radiologie Radiologia Country Title Radiotherapy Minimum period of training: 4 years Switzerland Radio-Onkologie/Strahlentherapie Radio-oncologie/radiothérapie Radio-oncologia/radioterapia & /en 10  Country Title Plastic surgery Minimum period of training: 5 years Switzerland Plastische, Rekonstruktive und Ästhetische Chirurgie Chirurgie plastique, reconstructive et esthétique Chirurgia plastica, ricostruttiva ed estetica Country Title Thoracic surgery Minimum period of training: 5 years Switzerland Thoraxchirurgie1 Chirurgie thoracique Chirurgia toracica Country Title Cardiac surgery Minimum period of training: 5 years Switzerland Herz- und thorakale Gefässchirurgie; Chirurgie cardiaque et vasculaire thoracique Chirurgia del cuore e dei vasi toracici 1 The training programme of 1 January 2015 was accredited on 31 August 2018. Holders of corresponding specialisation issued before the accreditation date receive a new evidence of formal qualifications as a specialiseds doctor without any further requirements with a current date of issue. & /en 11  Country Title Vascular surgery Minimum period of training: 5 years Switzerland Gefässchirurgie1 Chirurgie vasculaire Chirurgia vascolare Country Title Paediatric surgery Minimum period of training: 5 years Switzerland Kinderchirurgie Chirurgie pédiatrique Chirurgia pediatrica Country Title Cardiology Minimum period of training: 4 years Switzerland Kardiologie Cardiologie Cardiologia Country Title Gastroenterology Minimum period of training: 4 years Switzerland Gastroenterologie Gastroentérologie Gastroenterologia 1 The training programme of 1 January 2015 was accredited on 31 August 2018. Holders of corresponding specialisation issued before the accreditation date receive a new evidence of formal qualifications as a specialiseds doctor without any further requirements with a current date of issue. & /en 12 Country Title Rheumatology Minimum period of training: 4 years Switzerland Rheumatologie Rhumatologie Reumatologia Country Title General haematology Minimum period of training: 3 years Switzerland Hämatologie Hématologie Ematologia Country Title Endocrinology Minimum period of training: 3 years Switzerland Endokrinologie/Diabetologie Endocrinologie/diabétologie Endocrinologia/diabetologia Country Title Physiotherapy Minimum period of training: 3 years Switzerland Physikalische Medizin und Rehabilitation Médecine physique et réadaptation Medicina fisica e riabilitazione & /en 13 Country Title Dermato-venereology Minimum period of training: 3 years Switzerland Dermatologie und Venerologie Dermatologie et vénéréologie Dermatologia e venerologia Country Title Tropical medicine Minimum period of training: 4 years Switzerland Tropen- und Reisemedizin Médecine tropicale et médecine des voyages Medicina tropicale e medicina di viaggio Country Title Child psychiatry Minimum period of training: 4 years Switzerland Kinder- und Jugendpsychiatrie und -psychotherapie Psychiatrie et psychothérapie d’enfants et d’adolescents Psichiatria e psicoterapia infantile e dell’adolescenza Country Title Renal diseases Minimum period of training: 4 years Switzerland Nephrologie Néphrologie Nefrologia & /en 14 Country Title Communicable diseases Minimum period of training: 4 years Switzerland Infektiologie Infectiologie Malattie infettive Country Title Community medicine Minimum period of training: 4 years Switzerland Prävention und Gesundheitswesen Prévention et santé publique Prevenzione e salute pubblica Country Title Pharmacology Minimum period of training: 4 years Switzerland Klinische Pharmakologie und Toxikologie Pharmacologie et toxicologie cliniques Farmacologia e tossicologia clinica Country Title Occupational medicine Minimum period of training: 4 years Switzerland Arbeitsmedizin Médecine du travail Medicina del lavoro & /en 15 Country Title Allergology Minimum period of training: 3 years Switzerland Allergologie und klinische Immunologie Allergologie et immunologie clinique Allergologia e immunologia clinica Country Title Nuclear medicine Minimum period of training: 4 years Switzerland Nuklearmedizin Médecine nucléaire Medicina nucleare Country Title of diploma Dental, oral and maxillo-facial surgery (basic medical and dental training) Minimum period of training: 4 years Switzerland Mund-, Kiefer- und Gesichtschirurgie Chirurgie orale et maxillo-faciale Chirurgia oro-maxillo-facciale Country Title Medical oncology Minimum period of training: 5 years Switzerland Medizinische Onkologie Oncologie médicale Oncologia medica & /en 16  Country Title Medical genetics Minimum period of training: 4 years Switzerland Medizinische Genetik Génétique médicale Genetica medica' (d) the following text is added to point 5.1.4 of Annex V to the Directive: Reference 'Country Evidence of formal qualifications Professional title date Switzerland Diplom als praktischer Praktischer Arzt/Praktische 1 June 2002' Arzt/praktische Ärztin Ärztin Diplôme de médecin praticien Médecin praticien Diploma di medico generico Medico generico (e) the following text is added to point 5.2.2 of Annex V to the Directive: Evidence of Body awarding the Professional Reference 'Country formal evidence of qualifications title date qualifications Switzerland 1. Diplomierte Schulen, die staatlich Pflegefachfrau, 1 June 2002 Pflegefachfrau, anerkannte Pflegefachmann diplomierter Bildungsgänge Infirmière, Pflegefachmann durchführen infirmier Infirmière Écoles qui proposent des Infermiera, diplômée et filières de formation infermiere infirmier diplômé reconnues par l’État Infermiera Scuole che propongono diplomata e dei cicli di formazione infermiere riconosciuti dallo Stato diplomato & /en 17  Evidence of Body awarding the Professional Reference 'Country formal evidence of qualifications title date qualifications 2. Bachelor of Schulen, die staatlich Pflegefachfrau, 30 September Science in anerkannte Pflegefachmann 2011 nursing Bildungsgänge Infirmière, durchführen infirmier Écoles qui proposent des Infermiera, filières de formation infermiere reconnues par l’État Scuole che propongono dei cicli di formazione riconosciuti dallo Stato 3. Diplomierte Höhere Fachschulen, die Pflegefachfrau, 1 June 2002' Pflegefachfrau staatlich anerkannte Pflegefachmann HF, diplomierter Bildungsgänge Infirmière, Pflegefachmann durchführen infirmier HF Écoles supérieures qui Infermiera, Infirmière proposent des filières de infermiere diplômée ES, formation reconnues par infirmier diplômé l'État ES Scuole specializzate Infermiera superiori che propongono diplomata SSS, dei cicli di formazione infermiere riconosciuti dallo Stato diplomato SSS & /en 18 (f) the following text is added to point 5.3.2 of Annex V to the Directive: Certificate Evidence of Body awarding accompanying Professional Reference 'Country formal the evidence of the evidence of title date qualifications qualifications qualifications Switzerland Eidgenössisches Eidgenössisches Zahnarzt 1 June Zahnarztdiplom Departement 2002' Médecin- des Innern Diplôme fédéral dentiste de Département Medico- médecin-dentiste fédéral de dentista l’intérieur Diploma federale di Dipartimento medico-dentista federale dell’interno (g) the following text is added to point 5.3.3 of Annex V to the Directive: 'Orthodontics Evidence of formal Reference Country Body awarding the evidence of qualifications qualifications date Switzerland Diplom für Eidgenössisches Departement des Innern und 1 June 2002 Kieferorthopädie Schweizerische Zahnärzte-Gesellschaft (SSO) / Büro für zahnmedizinische Diplôme fédéral Weiterbildung (BZW) d’orthodontiste Département fédéral de l’intérieur et Société Diploma di suisse d’odonto-stomatologie (SSO) / Bureau ortodontista pour la formation postgrade en médecine dentaire (BZW) Dipartimento federale dell’interno e Società Svizzera di Odontologia e Stomatologia (SSO) / Ufficio per la formazione post-laurea in odontoiatria (BZW) & /en 19  Oral surgery Evidence of formal Reference Country Body awarding the evidence of qualifications qualifications date Switzerland Diplom für Eidgenössisches Departement des Innern und 30 April Oralchirurgie Schweizerische Zahnärzte-Gesellschaft 2004' (SSO) / Büro für zahnmedizinische Diplôme fédéral Weiterbildung (BZW) de chirurgie orale Département fédéral de l’intérieur et Société Diploma di suisse d’odonto-stomatologie (SSO) / Bureau chirurgia orale pour la formation postgrade en médecine dentaire (BZW) Dipartimento federale dell’interno e Società Svizzera di Odontologia e Stomatologia (SSO) / Ufficio per la formazione post-laurea in odontoiatria (BZW) (h) the following text is added to point 5.4.2 of Annex V to the Directive: Certificate Body awarding the Evidence of formal accompanying the Reference 'Country evidence of qualifications evidence of date qualifications qualifications Switzerland Eidgenössisches Eidgenössisches 1 June 2002' Tierarztdiplom Departement des Innern Diplôme fédéral de vétérinaire Département fédéral de l’intérieur Diploma federale di veterinario Dipartimento federale dell’interno & /en 20 (i) the following text is added to point 5.5.2 of Annex V to the Directive: Evidence of formal Body awarding the Professional Reference 'Country qualifications evidence of qualifications title date Switzerland 1. Diplomierte Schulen, die staatlich Hebamme 1 June Hebamme anerkannte 2002 Sage-femme Bildungsgänge Sage-femme diplômée durchführen Levatrice Levatrice diplomata Écoles qui proposent des filières de formation reconnues par l'État Scuole che propongono dei cicli di formazione riconosciuti dallo Stato 2. [Bachelor of Schulen, die staatlich Hebamme 1 June Science [Name of the anerkannte 2002' Sage-femme UAS] in Midwifery] Bildungsgänge durchführen Levatrice "Bachelor of Science HES-SO de Sage- Écoles qui proposent des femme" (Bachelor of filières de formation Science HES-SO in reconnues par l'État Midwifery) Scuole che propongono "Bachelor of Science dei cicli di formazione BFH Hebamme" riconosciuti dallo Stato (Bachelor of Science BFH in Midwifery) "Bachelor of Science ZFH Hebamme" (Bachelor of Science ZHAW in Midwifery) & /en 21 (j) the following text is added to point 5.6.2 of Annex V to the Directive: Certificate Body awarding the Evidence of formal accompanying Reference 'Country evidence of qualifications the evidence of date qualifications qualifications Switzerland Eidgenössisches Eidgenössisches 1 June Apothekerdiplom Departement des 2002' Innern Diplôme fédéral de pharmacien Département fédéral de l’intérieur Diploma federale di farmacista Dipartimento federale dell’interno (k) the following text is added to point 5.7.1 of Annex V to the Directive: Certificate Reference Evidence of formal Body awarding the accompanying 'Country academic qualifications evidence of qualifications the evidence of year qualifications Switzerland Master of Science in Accademia di Architettura 2002-2003 Architecture – dell’Università della Diploma di architetto Svizzera Italiana (Arch. Dipl. USI) Master of Arts Haute école spécialisée de 2007-2008 BFH/HES-SO en Suisse occidentale architecture, Master (HES-SO) together with of Arts Berner Fachhochschule BFH/HES-SO in (BFH) Architecture Master of Arts Haute école spécialisée de 2007-2008 BFH/HES-SO in Suisse occidentale Architektur, Master (HES-SO) together with of Arts Berner Fachhochschule BFH/HES-SO in (BFH) Architecture Master of Arts Fachhochschule 2007-2008 FHNW in Nordwestschweiz FHNW Architektur & /en 22  Certificate Reference Evidence of formal Body awarding the accompanying 'Country academic qualifications evidence of qualifications the evidence of year qualifications Master of Arts FHZ Fachhochschule 2007-2008 in Architektur Zentralschweiz (FHZ) Master of Arts ZFH Zürcher Fachhochschule 2007-2008 in Architektur (ZFH), Zürcher Hochschule für Angewandte Wissenschaften (ZHAW), Departement Architektur, Gestaltung und Bauingenieurwesen Master of Science École Polytechnique 2007-2008 MSc in Architecture, Fédérale de Lausanne Architecte (arch. Dipl). EPF) Master of Science Eidgenössische 2007-2008' ETH in Architektur, Technische Hochschule MSc ETH Arch Zurich (l) the following text is added to Annex VI to the Directive: Reference 'Country Evidence of formal qualifications academic year Switzerland 1. Diploma di Architetto 1996-1997 2. Master of Arts/Science in Architecture – Diploma di Architetto 2000-2001 3. Dipl. Arch. ETH, 2004-2005 arch. dipl. EPF, arch. dipl. PF 4. Architecte diplômé EAUG 2004-2005 5. Architekt REG A 2004-2005' Architecte REG A Architetto REG A & /en 23 2. 31977 L 0249: Council Directive 77/249/EEC of 22 March 1977 to facilitate the effective exercise by lawyers of freedom to provide services (OJ L 78, 26.3.1977, p. 17), as amended by: – 1 1979 H: Act concerning the Conditions of Accession and Adjustments to the Treaties – Accession of the Hellenic Republic (OJ L 291, 19.11.1979, p. 91), – 1 1985 I: Act concerning the Conditions of Accession and Adjustments to the Treaties – Accession of the Kingdom of Spain and the Portuguese Republic (OJ L 302, 15.11.1985, p. 23), – Decision of the Council of the European Union 95/1/EC, Euratom, ECSC, of 1 January 1995 adjusting the instruments concerning the accession of new Member States to the European Union (OJ L 1, 1.1.1995, p. 1), – 1 2003 T: Act concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the European Union is founded adopted on 16 April 2003 (OJ L 236, 23.9.2003, p. 33), – 32006 L 0100: Council Directive 2006/100/EC of 20 November 2006 adapting certain Directives in the field of freedom of movement of persons, by reason of the accession of Bulgaria and Romania (OJ L 363, 20.12.2006, p. 141), & /en 24  – 32013 L 0025: Council Directive 2013/25/EU of 13 May 2013adapting certain directives in the field of right of establishment and freedom to provide services, by reason of the accession of the Republic of Croatia (OJ L 158, 10.6.2013, p. 368). For the purposes of this Agreement, Directive 77/249/EEC shall be adapted as follows: The following text is added to Article 1(2): 'Switzerland: Advokat, Rechtsanwalt, Anwalt, Fürsprecher, Fürsprech Avocat Avvocato'. 3. 31998 L 0005: Directive 98/5/EC of the European Parliament and of the Council of 16 February 1998 to facilitate practice of the profession of lawyer on a permanent basis in a Member State other than that in which the qualification was obtained (OJ L 77, 14.3.1998, p. 36), as amended by: – 1 2003 T: Act concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the European Union is founded adopted on 16 April 2003 (OJ L 236, 23.9.2003, p. 33), & /en 25  – 32006 L 0100: Council Directive 2006/100/EC of 20 November 2006 adapting certain Directives in the field of freedom of movement of persons, by reason of the accession of Bulgaria and Romania (OJ L 363, 20.12.2006, p. 141), – 32013 L 0025: Council Directive 2013/25/EU of 13 May 2013 adapting certain directives in the field of right of establishment and freedom to provide services, by reason of the accession of the Republic of Croatia (OJ L 158, 10.6.2013, p. 368). For the purposes of this Agreement, Directive 98/5/EC is adapted as follows: The following text is added to point (a) of Article 1(2): 'Switzerland: Advokat, Rechtsanwalt, Anwalt, Fürsprecher, Fürsprech Avocat Avvocato'. 4. 31974 L 0556: Council Directive 74/556/EEC of 4 June 1974 laying down detailed provisions concerning transitional measures relating to activities, trade in and distribution of toxic products and activities entailing the professional use of such products including activities of intermediaries (OJ L 307, 18.11.1974, p. 1). & /en 26 5. 31974 L 0557: Council Directive 74/557/EEC of 4 June 1974 on the attainment of freedom of establishment and freedom to provide services in respect of activities of self-employed persons and of intermediaries engaging in the trade and distribution of toxic products (OJ L 307, 18.11.1974, p. 5), as amended by: – Decision of the Council of the European Union 95/1/EC, Euratom, ECSC, of 1 January 1995 adjusting the instruments concerning the accession of new Member States to the European Union (OJ L 1, 1.1.1995, p. 1), – 1 2003 T: Act concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the European Union is founded adopted on 16 April 2003 (OJ L 236, 23.9.2003, p. 33), – 32006 L 0101: Council Directive 2006/0101/EC of 20 November 2006 adapting Directives 73/239/EEC, 74/557/EEC and 2002/83/EC in the field of freedom to provide services, by reason of the accession of Bulgaria and Romania (OJ L 363, 20.12.2006, p. 238), – 32013 L 0025: Council Directive 2013/25/EU of 13 May 2013 adapting certain directives in the field of right of establishment and freedom to provide services, by reason of the accession of the Republic of Croatia (OJ L 158, 10.6.2013, p. 368). & /en 27  For the purposes of this Agreement, Directive 74/557/EEC is adapted as follows: In Switzerland: All the products and toxic substances set out in the Federal Law on Protection against Dangerous Substances and Preparations (classified compilation of federal law (CC 813.1), and in particular those on the ordinances relating thereto (CC 813) and on the poisonous substances for the environment (CC 814.812.31, 814.812.32 and 814.812.33). 6. 31986 L 0653: Council Directive 86/653/EEC of 18 December 1986 on the coordination of the laws of the Member States relating to self-employed commercial agents (OJ L 382, 31.12.1986, p. 17). 7. 32015 R 0983: Commission Implementing Regulation (EU) 2015/983 of 24 June 2015 on the procedure for issuance of the European Professional Card and the application of the alert mechanism pursuant to Directive 2005/36/EC of the European Parliament and of the Council (OJ L 159, 25.6.2015, p. 27). 8. 32018 L 0958: Directive (EU) 2018/958 of the European Parliament and of the Council of 28 June 2018 on a proportionality test before adoption of new regulation of professions (OJ L 173, 9.7.2018, p. 25) 9. 32019 R 0907: Commission Delegated Regulation (EU) 2019/907 of 14 March 2019 establishing a Common Training Test for ski instructors under Article 49b of Directive 2005/36/EC of the European Parliament and of the Council on the recognition of the professional qualifications (OJ L 145, 4.6.2019, p. 7). & /en 28 10. 32023 D 0423: Commission Implementing Decision (EU) 2023/423 of 24 February 2023 on a pilot project to implement the administrative cooperation provisions relating to regulated professions set out in Directives 2005/36/EC and (EU) 2018/958 of the European Parliament and of the Council by means of the Internal Market Information System and to integrate the database of regulated professions into that system (OJ L 61, 27.2.2023, p. 62). 11. 32012 R 1024: Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (OJ L 316, 14.11.2012, p. 1), as amended by: – 32013 L 0055: Directive 2013/55/EU of the European Parliament and of the Council of 20 November 2013 (OJ L 354, 28.12.2013, p. 132), – 32014 L 0060: Directive 2014/60/EU of the European Parliament and of the Council of 15 May 2014 (OJ L 159, 28.5.2014, p. 1), as corrected by OJ L 147, 12.6.2015, p. 24, – 32014 L 0067: Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 (OJ L 159, 28.5.2014, p. 11), – 32016 R 1191: Regulation (EU) 2016/1191 of the European Parliament and of the Council of 6 July 2016 (OJ L 200, 26.7.2016, p. 1), – 32016 R 1628: Regulation (EU) 2016/1628 of the European Parliament and of the Council of 14 September 2016 (OJ L 252, 16.9.2016, p. 53), as corrected by OJ L 231, 6.9.2019, p. 29, & /en 29  – 32018 R 1724: Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 (OJ L 295, 21.11.2018, p. 1), – 32020 L 1057: Directive (EU) 2020/1057 of the European Parliament and of the Council of 15 July 2020 (OJ L 249, 31.7.2020, p. 49), – 32020 R 1055: Regulation (EU) 2020/1055 of the European Parliament and of the Council of 15 July 2020 (OJ L 249, 31.7.2020, p. 17). Switzerland shall use the Internal Market Information System (IMI) as a third country for exchanges of information, including personal data, with IMI actors within the Union to implement administrative cooperation procedures where applicable for the purposes of this Agreement. For the purposes of this Agreement, the Commission continues to consider Switzerland to provide adequate protection of personal data as referred to in Article 23(1)(c) of Regulation (EU) No 1024/2012 as long as Decision 2000/518/EC1 remains in force. Switzerland shall use the IMI system to implement administrative cooperation procedures as defined in Articles 4a to 4e, Article 8, Article 21a, Article 50, Article 56 and Article 56a of Directive 2005/36/EC, as amended by Directive 2013/55/EU, in accordance with the principles and modalities of exchanges set out in those articles. 1 Commission Decision of 26 July 2000 pursuant to Directive 95/46/EC of the European Parliament and of the Council on the adequate protection of personal data provided in Switzerland, including any subsequent amendments. & /en 30 The provisions of Regulation (EU) No 1024/2012 shall, for the purposes of this Agreement, be read with the following adaptations: (a) in Article 5, first sentence, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (b) Article 8(1), point (e), shall not apply in respect of Switzerland; (c) in Article 9(5), as regards Switzerland, the words 'Union law' are replaced by the words 'Union law as integrated into this Agreement'; (d) in Article 10(1), as regards Switzerland, the words 'in accordance with national or Union legislation' are replaced by the words 'in accordance with Swiss legislation'; (e) in Article 16(1) and (2), references to Directive 95/46/EC shall be understood as far as Switzerland is concerned, as references to the relevant national legislation; (f) in Article 17(4), the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (g) in Article 18(1), the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (h) in Article 20, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; & /en 31 (i) in Article 21: (i) in paragraph 1, the reference to Directive 95/46/EC shall be understood, as far as Switzerland is concerned, as a reference to the relevant national legislation; (ii) paragraph 3 shall not apply; (j) Article 25 shall not apply; (k) Article 26(1) shall be read in line with Article 13 of the Institutional Protocol to this Agreement.". _______________ & /en 32  PROTOCOL ON SECONDARY RESIDENCES IN DENMARK The Contracting Parties agree that Protocol No 32 on the acquisition of property in Denmark, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union also applies to this Agreement concerning Swiss nationals' acquisition of second homes in Denmark. & /en 1  PROTOCOL ON THE ACQUISITION OF IMMOVABLE PROPERTY IN MALTA Purchase of property in the Maltese islands is regulated by the Immovable Property (Acquisition by Non-Residents) Act (Chapter 246 of the Laws of Malta). That Act provides that: (a) A Swiss national may purchase immovable property in Malta: (1) If the property is going to be used as a primary residence or if the applicant has lived in Malta as a resident for a period of over 5 years or if the property is going to be used for business purposes there are no restrictions. (2) If the property is going to be used for secondary residence purposes and applicant did not live in Malta for a period of 5 years, an Acquisition of Immovable Property (AIP) permit is required and is subject to conditions as stipulated in the Immovable Property (Acquisitions by Non-residents) Act, including a minimum price of EUR 174 274 for apartments and EUR 300 619 for houses (minimum prices are adjusted yearly according to the property index as outlined in the Immovable Property Price Index Notice [Subsidiary Legislation 246.08 of the Laws of Malta]). Such purchases do not require the person to have a right of residence in Malta. (b) Swiss nationals may also set up their primary residence in Malta at any time in accordance with the relevant national legislation. Leaving Malta shall not entail any obligation to dispose of any property acquired as a primary residence. & /en 1 (c) Swiss nationals who purchase properties in special designated areas established by the Act (usually areas forming part of urban regeneration projects) do not require a permit for such purchases, neither are they limited in the number, use or value of such properties that they may purchase. & /en 2  PROTOCOL ON LONG-TERM RESIDENCE PERMITS THE EUROPEAN UNION, hereinafter referred to as "the Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland"; have agreed as follows: 1. The granting of long-term residence permits is a question of the law of the Union in accordance with the Treaties and of the law of Switzerland, respectively, and does not fall under the scope of the Agreement on the Free Movement of Persons (hereinafter referred to as the "Agreement"). Thus, the Institutional Protocol to the Agreement shall not apply to this Protocol. 2. Where Switzerland and the Member States of the Union grant each other's nationals long-term residence permits under the respective laws referred to in paragraph 1, those rules shall be applied in a non-discriminatory manner, notably regarding the minimum duration of prior residence of five years required. 3. The applicable rules of the Union and Switzerland shall remain comparable in terms of other conditions and requirements, it being understood that the conditions and requirements lie within the competence of the Union in accordance with the Treaties and of Switzerland, respectively. & /en 1 4. The forementioned shall be without prejudice to (a) the rules on permanent residence provided for in Directive 2004/38/EC1 as well as (b) provisions for third-country nationals contained in bilateral agreements already concluded between a Member State of the Union and Switzerland that are more favourable than the applicable rules of the Union and Switzerland. 5. Notwithstanding paragraph 1, Article 10(1), (2) and (5) of the Institutional Protocol to the Agreement shall apply mutatis mutandis to disputes arising from paragraphs 2 and 3 of this Protocol. In those cases, Article 11 of the Institutional Protocol to the Agreement shall also apply mutatis mutandis, except that proportionate compensatory measures may only be adopted within the framework of the Agreement. The Appendix to the Institutional Protocol to the Agreement on the Arbitral Tribunal shall apply mutatis mutandis, except for Articles I.4 paragraph 4, III.4 paragraph 3 second sentence, III.5 paragraph 2 third sentence, III.9 and III.10 paragraph 5. 1 Directive 2004/38/EC (OJ L 158, 30.4.2004, p 77), as applicable according to Annex I to the Agreement. & /en 2  INSTITUTIONAL PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND ITS MEMBER STATES, OF THE ONE PART, AND THE SWISS CONFEDERATION, OF THE OTHER, ON THE FREE MOVEMENT OF PERSONS & /en THE EUROPEAN UNION, hereinafter referred to as "the Union", and THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland"; HAVING REGARD to the Agreement between the European Community and its Member States of the one part, and the Swiss Confederation of the other, on the free movement of persons, done at Brussels on 21 June 1999, (hereinafter referred to as the "Agreement"), which entered into force on 1 June 2002; HAVING REGARD to the Protocol to the Agreement of 21 June 1999 between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons regarding the participation, as Contracting Parties, of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic pursuant to their accession to the European Union, done at Brussels on 26 October 2004, which entered into force on 1 April 2006; HAVING REGARD to the Protocol to the Agreement of 21 June 1999 between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons regarding the participation as Contracting Parties of the Republic of Bulgaria and Romania pursuant to their accession to the European Union, done at Brussels on 27 May 2008, which entered into force on 1 June 2009; & /en 1 HAVING REGARD to the Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, regarding the participation of the Republic of Croatia as a Contracting Party, following its accession to the European Union, done at Brussels of 4 March 2016, which entered into force on 1 January 2017; WHEREAS agreements concluded by the Union are binding upon the institutions of the Union and on its Member States; this Protocol therefore applies to the Contracting Parties as set out in the Agreement; WHEREAS the Union and Switzerland are bound by numerous bilateral agreements covering various fields, providing for specific rights and obligations similar, in certain respects, to those provided for within the Union; RECALLING that the purpose of those bilateral agreements is to increase Europe's competitiveness and to create closer economic ties between the Contracting Parties, based on equality, reciprocity and the general balance of their advantages, rights and obligations; RESOLVED to strengthen and deepen Switzerland's participation in the internal market of the Union, on the basis of the same rules as those that apply to the internal market, while preserving their independence and that of their institutions and, as regards Switzerland, respect for the principles stemming from direct democracy, federalism and the sectoral nature of its participation in the internal market; & /en 2 REAFFIRMING that the competence of the Swiss Federal Supreme Court and all other Swiss courts as well as that of the Member States' courts and of the Court of Justice of the European Union to interpret the Agreement in individual cases is preserved; CONSCIOUS of ensuring uniformity in the fields related to the internal market in which Switzerland participates, both current and future, HAVE AGREED AS FOLLOWS: CHAPTER 1 GENERAL PROVISIONS ARTICLE 1 Objectives 1. The objective of this Protocol is to guarantee for the Contracting Parties, and for economic operators and individuals, greater legal certainty, equal treatment and a level playing field in the field related to the internal market falling under the scope of the Agreement. & /en 3 2. To this end, this Protocol provides new institutional solutions facilitating a continuous and balanced strengthening of economic relations between the Contracting Parties. Taking account of the principles of international law, this Protocol lays down, in particular, institutional solutions for the Agreement which are common to the bilateral agreements concluded or to be concluded in the fields related to the internal market in which Switzerland participates, without changing the scope or the objectives of the Agreement, notably: (a) the procedure for aligning the Agreement with legal acts of the Union relevant to the Agreement; (b) the uniform interpretation and application of the Agreement and of the legal acts of the Union to which reference is made in the Agreement; (c) the surveillance and application of the Agreement; and (d) the settlement of disputes in the context of the Agreement. ARTICLE 2 Relation to the Agreement 1. This Protocol, its Annex and its Appendix shall form an integral part of the Agreement. 2. The provisions of the Agreement repealed by this Protocol are listed below: (a) Article 16; & /en 4 (b) Article 17; (c) Article 19. 3. References to the "European Community" or to the "Community" in the Agreement shall be construed as references to the Union. ARTICLE 3 Bilateral agreements in the fields related to the internal market in which Switzerland participates 1. Existing and future bilateral agreements between the Union and Switzerland in the fields related to the internal market in which Switzerland participates shall be considered as a coherent whole which ensures a balance of rights and obligations between the Union and Switzerland. 2. The Agreement constitutes a bilateral agreement in a field related to the internal market in which Switzerland participates. & /en 5  CHAPTER 2 ALIGNMENT OF THE AGREEMENT WITH LEGAL ACTS OF THE UNION ARTICLE 4 Participation in the drafting of legal acts of the Union ("decision shaping") 1. When drafting a proposal for a legal act of the Union in accordance with the Treaty on the Functioning of the European Union (hereinafter referred to as "TFEU") in the field covered by the Agreement, the European Commission (hereinafter referred to as the "Commission") shall inform Switzerland thereof and shall informally consult Switzerland's experts in the same way that it asks for the views of experts from the Member States of the Union for the drafting of its proposals. At the request of either Contracting Party, a preliminary exchange of views shall take place within the Joint Committee. The Contracting Parties shall consult each other again, at the request of either of them, within the Joint Committee at important moments of the phase preceding the adoption of the legal act by the Union, in a continuous process of information and consultation. 2. When preparing, in accordance with the TFEU, delegated acts concerning basic acts of Union law in the field covered by the Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts and shall consult Switzerland's experts on the same basis as it consults the experts of the Member States of the Union. & /en 6 3. When preparing, in accordance with the TFEU, implementing acts concerning basic acts of Union law in the field covered by the Agreement, the Commission shall ensure that Switzerland has the widest possible participation in the preparation of the drafts to be submitted later on to the committees assisting the Commission in the exercise of its implementing powers and shall consult Switzerland's experts on the same basis as it consults the experts from the Member States of the Union. 4. Switzerland's experts shall be involved in the work of committees not covered by paragraphs 2 and 3 where this is required for the proper functioning of the Agreement. A list of those committees and, where appropriate, of other committees with similar characteristics, shall be drawn up and updated by the Joint Committee. 5. This Article shall not apply with regard to legal acts of the Union or provisions thereof falling within the scope of an exception referred to in Article 5(7). ARTICLE 5 Integration of legal acts of the Union 1. In order to guarantee legal certainty and the homogeneity of the law in the field related to the internal market in which Switzerland participates by virtue of the Agreement, Switzerland and the Union shall ensure that legal acts of the Union adopted in the field covered by the Agreement are integrated into the Agreement as quickly as possible after their adoption. & /en 7 2. Legal acts of the Union integrated into the Agreement in accordance with paragraph 4 shall be, by their integration into the Agreement, part of the legal order of Switzerland subject, as the case may be, to the adaptations decided upon by the Joint Committee. 3. When it adopts a legal act in the field covered by the Agreement, the Union shall inform Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject. 4. The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as quickly as possible to amend Annexes I to III to the Agreement, including the necessary adaptations. 5. Without prejudice to paragraphs 1 and 2, if necessary in order to ensure coherence of the Agreement with its Annex as amended pursuant to paragraph 4, the Joint Committee may propose, for approval by the Contracting Parties according to their internal procedures, the revision of the Agreement. 6. References in the Agreement to legal acts of the Union that are no longer in force shall be construed as references to the repealing legal act of the Union as integrated into the Annex to the Agreement as from the entry into force of the Joint Committee's decision on the corresponding amendment of the Annex to the Agreement pursuant to paragraph 4, unless otherwise provided in that decision. 7. The obligation set out in paragraph 1 shall not apply to legal acts of the Union or provisions thereof falling within the scope of an exception listed below: – Article 5g [Prior notification period and controls]; & /en 8 – Article 5h [Financial guarantees and sanctions]; – Article 5i [Proof of self-employment]; – Article 5j [Non-regression]; – Article 7b [Students]; – Article 7e [Permanent residence]; – Article 7f [Purchase of immovable property]; – Article 7g [Identity cards]; – Article 7h [Expulsion]. – Annex II Co-ordination of Social Security Schemes, Part II. Sectoral Adaptations, Point 1. a-f. 8. Subject to Article 6, decisions of the Joint Committee pursuant to paragraph 4 shall enter into force immediately, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. 9. The Contracting Parties shall cooperate in good faith throughout the procedure set out in this Article in order to facilitate decision-making. & /en 9 10. The Union and Switzerland shall be mindful of the principle of "equal pay for equal work at the same place" and Switzerland's dual enforcement system. ARTICLE 6 Fulfilment of constitutional obligations by Switzerland 1. During the exchange of views referred to in Article 5(3), Switzerland shall inform the Union whether a decision as referred to in Article 5(4) requires the fulfilment of constitutional obligations by Switzerland in order to become binding. 2. Where the decision referred to in Article 5(4) requires Switzerland to fulfil constitutional obligations in order to become binding, Switzerland shall have a time limit of two years maximum from the date of the information provided for in paragraph 1, except where a referendum procedure is launched, in which case this period shall be extended by one year. 3. Pending the information by Switzerland that it has fulfilled its constitutional obligations, the Contracting Parties shall provisionally apply the decision referred to in Article 5(4), unless Switzerland informs the Union that the provisional application of the decision is not possible and provides the reasons for this. Under no circumstances can the provisional application occur before the date on which the corresponding legal act of the Union becomes applicable in the Union. & /en 10 4. Switzerland shall notify the Union without delay through the Joint Committee once it has fulfilled the constitutional obligations referred to in paragraph 1. 5. The decision shall enter into force on the day on which the notification provided for in paragraph 4 is delivered, but under no circumstances before the date on which the corresponding legal act of the Union becomes applicable in the Union. CHAPTER 3 INTERPRETATION AND APPLICATION OF THE AGREEMENT ARTICLE 7 Uniform interpretation principle 1. For the purpose of achieving the objectives set out in Article 1 and in accordance with the principles of public international law, the bilateral agreements in the fields related to the internal market in which Switzerland participates and the legal acts of the Union to which reference is made in such agreements shall be uniformly interpreted and applied in the fields related to the internal market in which Switzerland participates. 2. The legal acts of the Union to which reference is made in the Agreement and, to the extent that their application involves concepts of Union law, the provisions of the Agreement shall be interpreted and applied in accordance with the case law of the Court of Justice of the European Union, prior or subsequent to the signature of the Agreement. & /en 11  ARTICLE 8 Effective and harmonious application principle 1. The Commission and the competent Swiss authorities shall cooperate and assist each other in ensuring the surveillance of the application of the Agreement. They may exchange information on the activities of surveillance of the application of the Agreement. They may exchange views and discuss issues of mutual interest. 2. Each Contracting Party shall take appropriate measures to ensure the effective and harmonious application of the Agreement on its territory. 3. The surveillance of the application of the Agreement shall be carried out jointly by the Contracting Parties within the Joint Committee. If the Commission or the competent Swiss authorities become aware of a case of incorrect application, the matter may be referred to the Joint Committee with a view to finding an acceptable solution. 4. The Commission and the competent Swiss authorities respectively shall monitor the application of the Agreement by the other Contracting Party. The procedure provided for in Article 10 applies. To the extent that certain surveillance competences of the institutions of the Union as regards one Contracting Party are necessary to ensure the effective and harmonious application of the Agreement, such as investigation and decision powers, the Agreement must foresee them specifically. & /en 12  ARTICLE 9 Exclusivity principle The Contracting Parties undertake not to submit a dispute regarding the interpretation or application of the Agreement and of the legal acts of the Union to which reference is made in the Agreement or, where applicable, regarding the conformity with the Agreement of a decision adopted by the Commission on the basis of the Agreement to any method of settlement other than those provided for in this Protocol. ARTICLE 10 Procedure in the event of difficulty of interpretation or application 1. In the event of difficulty of interpretation or application of the Agreement or of a legal act of the Union to which reference is made in the Agreement, the Contracting Parties shall consult each other within the Joint Committee in order to find a mutually acceptable solution. To this end, all useful elements of information shall be provided to the Joint Committee to enable it to make a detailed examination of the situation. The Joint Committee shall examine all possibilities that allow the proper functioning of the Agreement to be maintained. 2. If the Joint Committee is not able to find a solution to the difficulty referred to in paragraph 1 within three months of the date on which the difficulty was submitted to it, either of the Contracting Parties may request that an arbitral tribunal settle the dispute in accordance with the rules laid down in the Appendix. & /en 13 3. Where the dispute raises a question concerning the interpretation or application of a provision referred to in Article 7(2), and if the interpretation of that provision is relevant to the settlement of the dispute and necessary to enable it to decide, the arbitral tribunal shall refer that question to the Court of Justice of the European Union. Where the dispute raises a question concerning the interpretation or application of a provision that falls within the scope of an exception from the dynamic alignment obligation referred to in Article 5(7), and where the dispute does not involve the interpretation or application of concepts of Union law, the arbitral tribunal shall settle the dispute without referral to the Court of Justice of the European Union. 4. Where the arbitral tribunal refers a question to the Court of Justice of the European Union pursuant to paragraph 3: (a) the ruling of the Court of Justice of the European Union shall be binding on the arbitral tribunal; and (b) Switzerland shall enjoy the same rights as the Member States and the institutions of the Union and shall be subject to the same procedures before the Court of Justice of the European Union, mutatis mutandis. 5. Each Contracting Party shall take all measures necessary to comply in good faith with the arbitral tribunal's decision. The Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement shall inform the other Contracting Party through the Joint Committee of the measures it has taken to comply with the arbitral tribunal's decision. & /en 14 6. The safeguards set out in Joint Declaration on refusing social assistance and terminating residence prior to the acquisition of permanent residence and Joint Declaration on the notification of the taking up of employment, annexed to the Agreement, shall be taken into consideration in good faith in the context of resolving the disputes submitted to the Joint Committee. The first subparagraph shall apply for as long as, and to the extent that, the safeguards remain compatible with the relevant legal acts of the Union as integrated into the Agreement. The safeguards shall not affect the application of Article 5(1) of this Protocol. ARTICLE 11 Compensatory measures 1. If the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement does not inform the other Contracting Party, within a reasonable time period set in accordance with Article IV.2(6) of the Appendix, of the measures it has taken to comply with the arbitral tribunal's decision, or if the other Contracting Party considers that the measures communicated do not comply with the arbitral tribunal's decision, this other Contracting Party may adopt proportionate compensatory measures within the framework of the Agreement or of any other bilateral agreement in the fields related to the internal market in which Switzerland participates (hereinafter referred to as "compensatory measures") in order to remedy a potential imbalance. It shall notify the Contracting Party that has been found by the arbitral tribunal not to have complied with the Agreement of the compensatory measures, which shall be specified in the notification. Those compensatory measures shall take effect three months from the date of this notification. & /en 15 2. If, within one month from the date of the notification of the intended compensatory measures, the Joint Committee has not taken a decision to suspend, amend or annul those compensatory measures, either Contracting Party may submit to arbitration the question of the proportionality of those compensatory measures, in accordance with the Appendix. 3. The arbitral tribunal shall decide within the time limits laid down in Article III.8(4) of the Appendix. 4. Compensatory measures shall not have retroactive effect. In particular, the rights and obligations already acquired by individuals and economic operators before the compensatory measures take effect shall be preserved. ARTICLE 12 Cooperation between jurisdictions 1. To promote the homogeneous interpretation, the Swiss Federal Supreme Court and the Court of Justice of the European Union shall agree on a dialogue and the modalities thereof. 2. Switzerland shall have the right to lodge statements of case or written observations with the Court of Justice of the European Union where a court of a Member State of the Union refers to the Court of Justice of the European Union a question concerning the interpretation of the Agreement or of a provision of a legal act of the Union referred to therein for a preliminary ruling. & /en 16  CHAPTER 4 OTHER PROVISIONS ARTICLE 13 Financial contribution 1. Switzerland shall contribute to the financing of the activities of the Union agencies, information systems and other activities listed in Article 1 of the Annex to which it has access, in accordance with this Article and the Annex. The Joint Committee may adopt a decision to amend the Annex. 2. The Union may suspend the participation of Switzerland in the activities referred to in paragraph 1 of this Article at any time if Switzerland fails to meet the payment deadline in accordance with the terms of payment set out in Article 2 of the Annex. Where Switzerland fails to meet a payment deadline, the Union shall send Switzerland a formal letter of reminder. Where no full payment is made within 30 days of the date of reception of that formal letter of reminder, the Union may suspend the participation of Switzerland in the relevant activity. 3. The financial contribution shall take the form of the sum of: (a) an operational contribution; and & /en 17 (b) a participation fee. 4. The financial contribution shall take the form of an annual financial contribution and shall be due at the dates specified in the calls for funds issued by the Commission. 5. The operational contribution shall be based on a contribution key defined as the ratio of the gross domestic product (hereinafter referred to as "GDP") of Switzerland at market prices to the GDP of the Union at market prices. For that purpose, the figures for GDP at market prices of the Contracting Parties shall be the latest such figures available as of 1 January of the year in which the annual payment is made as provided by the Statistical Office of the European Union (EUROSTAT), with due regard to the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics, done at Luxembourg on 26 October 2004. If that agreement ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided by the Organisation for Economic Co-operation and Development. 6. The operational contribution for each Union agency shall be calculated by applying the contribution key to its annual voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question, taking into account for each agency any adjusted operational contribution as defined in Article 1 of the Annex. The operational contribution for the information systems and other activities shall be calculated by applying the contribution key to the relevant budget of the year in question as set out in documents implementing the budget, such as work programmes or contracts. & /en 18 All reference amounts shall be based on commitment appropriations. 7. The annual participation fee shall be 4 % of the annual operational contribution as calculated in accordance with paragraphs 5 and 6. 8. The Commission shall provide Switzerland with adequate information in relation to the calculation of its financial contribution. That information shall be provided having due regard to the Union's confidentiality and data protection rules. 9. All financial contributions by Switzerland or payments from the Union, and the calculation of amounts due or to be received, shall be made in euro. 10. Where the entry into force of this Protocol does not coincide with the beginning of a calendar year, Switzerland's operational contribution for the year in question shall be subject to adjustment, according to the methodology and terms of payment defined in Article 5 of the Annex. 11. Detailed provisions for the application of this Article are set out in the Annex. 12. Three years following the entry into force of this Protocol, and every three years subsequently, the Joint Committee shall review the conditions of Switzerland's participation as defined in Article 1 of the Annex and, where appropriate, adapt them. & /en 19  ARTICLE 14 References to territories Whenever the legal acts of the Union integrated into the Agreement contain references to the territory of the "European Union", of the "Union", of the " common market" or of the "internal market", the references shall for the purposes of the Agreement be understood to be references to the territories referred to in Article 24 of the Agreement. ARTICLE 15 References to nationals of Member States of the Union Whenever the legal acts of the Union integrated into the Agreement contain references to nationals of Member States of the Union, the references shall, for the purposes of the Agreement, be understood to be references to nationals of the Member States of the Union and of Switzerland. ARTICLE 16 Entry into force and implementation of the legal acts of the Union Provisions of the legal acts of the Union integrated into the Agreement on their entry into force or implementation are not relevant for the purposes of the Agreement. & /en 20 The time limits and dates for Switzerland for bringing into force and implementing the decisions integrating legal acts of the Union into the Agreement follow from Article 5(8) and Article 6(5), as well as from provisions on transitional arrangements. ARTICLE 17 Addressees of the legal acts of the Union Provisions of the legal acts of the Union integrated into the Agreement indicating that they are addressed to the Member States of the Union are not relevant for the purposes of the Agreement. CHAPTER 5 FINAL PROVISIONS ARTICLE 18 Implementation 1. The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from the Agreement and shall refrain from taking any measure which could jeopardise the achievement of its objectives. & /en 21 2. The Contracting Parties shall take all measures necessary to guarantee the intended result of the legal acts of the Union to which reference is made in the Agreement and shall refrain from taking any measure that could jeopardise the achievement of their aims. ARTICLE 19 Entry into force 1. This Protocol shall be ratified or approved by the Union and Switzerland in accordance with their own procedures. The Union and Switzerland shall notify each other of the completion of the internal procedures necessary to the entry into force of this Protocol. 2. This Protocol shall enter into force on the first day of the second month following the last notification regarding the following instruments: (a) Amending Protocol to the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons; (b) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (c) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; & /en 22 (d) State Aid Protocol to the Agreement between the European Community and the Swiss Confederation on air transport; (e) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (f) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (g) State aid Protocol to the Agreement between the European Community and the Swiss Confederation on the carriage of goods and passengers by rail and road; (h) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products; (i) Institutional Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (j) Amending Protocol to the Agreement between the European Community and the Swiss Confederation on mutual recognition in relation to conformity assessment; (k) Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union; & /en 23 (l) Agreement between the European Union and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, on the participation of the Swiss Confederation in Union programmes; (m) Agreement between the European Union and the Swiss Confederation on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme. ARTICLE 20 Amendment and termination 1. This Protocol may be amended at any time by mutual agreement of the Union and Switzerland. 2. Where the Agreement is terminated in accordance with Article 25(3) of the Agreement, this Protocol shall cease to be in force on the date referred to in Article 25(4) of the Agreement. 3. Where the Agreement ceases to be in force, the rights and obligations that individuals and economic operators have already acquired by virtue of the Agreement before the date of the cessation of the Agreement shall be preserved. The Union and Switzerland shall settle by mutual agreement what action is to be taken in respect of rights in the process of being acquired. & /en 24 Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being equally authentic. IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. (Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the Swiss Confederation") & /en 25  ANNEX ANNEX ON THE APPLICATION OF ARTICLE 13 OF THE PROTOCOL ARTICLE 1 List of the activities of the Union agencies, information systems and other activities to which Switzerland is to contribute financially Switzerland shall contribute financially to the following: (a) agencies: none. (b) information systems: European network of Employment Services (EURES) as established by Regulation (EU) 2016/589 of the European Parliament and of the Council of 13 April 2016 on a European network of employment services (EURES), workers' access to mobility services and the further integration of labour markets, and amending Regulations (EU) No 492/2011 and (EU) No 1296/2013 (OJ L 107, 22.4.2016, p. 1), as applicable according to Annex I to the Agreement; & /en 1  Electronic Exchange of Social Security Information (EESSI) as established by Regulation (EC) No 883/2004 (OJ L 166, 30.4.2004, p. 1), as corrected by OJ L 200, 7.6.2004, p. 1 and OJ L 204, 4.8.2007, p. 30) and Regulation (EC) No 987/2009 (OJ L 284, 30.10.2009, p. 1), as applicable according to Annex II to the Agreement; Internal Market Information system (IMI) as established by Regulation (EU) 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (OJ L 316, 14.11.2012, p. 1), as applicable to according to Annex I and III to the Agreement. (c) other activities: none. ARTICLE 2 Terms of payment 1. Payments due pursuant to Article 13 of the Protocol shall be made in accordance with this Article. 2. When issuing the call for funds of the financial year, the Commission shall communicate the following information to Switzerland: (a) the amount of the operational contribution; and & /en 2 (b) the amount of the participation fee. 3. The Commission shall communicate to Switzerland, as soon as possible and at the latest on 16 April of each financial year, the following information in relation to Switzerland's participation: (a) the amounts in commitment appropriations of the annual Union voted budget inscribed on the relevant Union budget subsidy line(s) of the year in question for each Union agency, taking into account for each agency any adjusted operational contribution as defined in Article 1, and the amounts in commitment appropriations in relation to the Union voted budget of the year in question for the relevant budget of the information systems and other activities, covering the participation of Switzerland in accordance with Article 1; (b) the amount of the participation fee referred to in Article 13(7) of the Protocol; and (c) as regards agencies, in year N+1, the amounts in budgetary commitments made on commitment appropriations authorised in year N on the relevant Union budget subsidy line(s) in relation to the annual Union budget inscribed on the relevant Union budget subsidy line(s) of year N. 4. On the basis of its draft budget, the Commission shall provide an estimate of information under points (a) and (b) of paragraph 3 as soon as possible, and at the latest, by 1 September of the financial year. & /en 3 5. The Commission shall issue to Switzerland, at the latest on 16 April and, if applicable to the relevant agency, information system or other activity, at the earliest on 22 October and at the latest on 31 October of each financial year, a call for funds that corresponds to the contribution of Switzerland under the Agreement for each of the agencies, information systems and other activities in which Switzerland participates. 6. The call(s) for funds referred to in paragraph 5 shall be structured in instalments as follows: (a) the first instalment of each year, in relation to the call for funds to be issued by 16 April, shall correspond to an amount up to the equivalent of the estimate of the annual financial contribution of the agency, information system or other activity in question referred to in paragraph 4; Switzerland shall pay the amount indicated in this call for funds at the latest 60 days after the call for funds is issued. (b) where applicable, the second instalment of the year, in relation to the call for funds to be issued at the earliest on 22 October and at the latest on 31 October, shall correspond to the difference between the amount referred to in paragraph 4 and the amount referred to in paragraph 5, where the amount referred to in paragraph 5 is higher. Switzerland shall pay the amount indicated in this call for funds at the latest by 21 December. For each call for funds, Switzerland may make separate payments for each agency, information system or other activity. & /en 4 7. For the first year of implementation of the Protocol, the Commission shall issue a single call for funds, within 90 days of the entry into force of the Protocol. Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after the call for funds is issued. 8. Any delay in the payment of the financial contribution shall give rise to the payment of default interest by Switzerland on the outstanding amount as from the due date until the day on which that outstanding amount is paid in full. The interest rate for amounts receivable not paid on the due date shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first day of the month in which the due date falls, or 0 %, whichever is higher, plus 3,5 percentage points. & /en 5  ARTICLE 3 Adjustment of Switzerland's financial contribution to Union agencies in the light of implementation The adjustment of Switzerland's financial contribution to Union agencies shall be made in year N+1, when the initial operational contribution shall be adjusted upwards or downwards by the difference between the initial operational contribution and an adjusted contribution calculated by applying the contribution key of year N to the amount of budgetary commitments made on commitment appropriations authorised in year N under the relevant Union subsidy budget line(s). Where applicable, the difference shall take into account, for each agency, the percentage-based adjusted operational contribution as defined in Article 1. ARTICLE 4 Existing arrangements Article 13 of the Protocol and this Annex shall not apply to specific arrangements between Switzerland and the Union which include financial contributions by Switzerland. The agencies, information systems and other activities covered by such arrangements are the following: – Mutual Information System on Social Protection (MISSOC), according to the respective contractual arrangements of Switzerland and of the Commission with the MISSOC secretariat. & /en 6  ARTICLE 5 Transitional arrangements In the event that the date of entry into force of the Protocol is not 1 January, this Article shall apply by way of derogation from Article 2. For the first year of implementation of the Protocol, in relation to the operational contribution due for the year in question applicable to the relevant agency, information system or other activity, as established in accordance with Article 13 of the Protocol and Articles 1 to 3 of this Annex, the operational contribution shall be reduced on a pro rata temporis basis by multiplying the amount of the annual operational contribution due to the ratio of the following: (a) the number of calendar days from the date of entry into force of the Protocol until 31 December of the year in question; and (b) the total number of calendar days of the year in question. & /en 7  Appendix APPENDIX ON THE ARBITRAL TRIBUNAL CHAPTER I PRELIMINARY PROVISIONS ARTICLE I.1 Scope If one of the Contracting Parties (hereinafter referred to as "parties") submits a dispute for arbitration in accordance with Articles 10(2) or 11(2) of the Protocol or brings a case to arbitration in accordance with Article 14a(2) or (4) of the Agreement, the rules set out in this Appendix shall apply. & /en 8  ARTICLE I.2 Registry and secretarial services The International Bureau of the Permanent Court of Arbitration at the Hague (hereinafter referred to as "International Bureau") shall fulfil the functions of registry and provide the necessary secretarial services. ARTICLE I.3 Notices and calculation of time limits 1. Notices, including communications or proposals, may be sent by any means of communication that certifies their transmission, or enables them to be certified. 2. Such notices may be sent electronically only if an address has been designated or authorised by a party specifically for this purpose. 3. Such notices served on the parties shall be sent, for Switzerland, to Switzerland's Europe Division of the Federal Department of Foreign Affairs and, for the Union, to the Commission's Legal Service. & /en 9 4. Any time limit laid down in this Appendix shall run from the day after an event occurs or an action takes place. If the last day for delivery of a document falls on a non-working day of the institutions of the Union or of the government of Switzerland, the time period for the delivery of the document shall end on the first following working day. Non-working days that fall within the time period shall be counted. ARTICLE I.4 Notice of arbitration 1. The party taking the initiative to use arbitration (hereinafter referred to as "applicant") shall send to the other party (hereinafter referred to as "defendant") and to the International Bureau a notice of arbitration. 2. Arbitration proceedings shall be deemed to commence on the day after that on which the notice of arbitration is received by the defendant. 3. The notice of arbitration shall include the following information: (a) the demand that the dispute be referred to arbitration; (b) the names and contact details of the parties; (c) the name and address of the applicant's agent(s); & /en 10 (d) the legal basis of the proceedings (Article 10(2) or Article 11(2) of the Protocol) and: (i) in the cases referred to in Article 10(2) of the Protocol, the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 10(1) of the Protocol; and (ii) in the cases referred to in Article 11(2) of the Protocol, the decision of the arbitral tribunal, any implementation measures mentioned in Article 10(5) of the Protocol and the disputed compensatory measures; (iii) in the cases referred to in Article 14a (2) and (4) of the Agreement, the alleged difficulties in accordance with Article 14a(2) of the Agreement; (e) the designation of any rule causing the dispute or related to it; (f) a brief description of the dispute; and (g) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. 4. In the cases referred to in Article 10(3) of the Protocol, the notice of arbitration may also contain information concerning the need for a referral to the Court of Justice of the European Union. 5. Any claims on the sufficiency of the notice of arbitration shall not prevent the constitution of the arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. & /en 11  ARTICLE I.5 Response to the notice of arbitration 1. Within 60 days of receiving the notice of arbitration, the defendant shall send a response to the notice of arbitration to the applicant and the International Bureau, which shall include the following information: (a) the names and contact details of the parties; (b) the name and address of the defendant's agent(s); (c) a response to the information given in the notice of arbitration in accordance with points (d) to (f) of Article I.4(3); and (d) the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of two arbitrators. 2. In the cases referred to in Article 10(3) of the Protocol, the response to the notice of arbitration may also contain a response to the information given in the notice of arbitration in accordance with Article I.4(4) of this Appendix and information concerning the need for a referral to the Court of Justice of the European Union. 3. The lack of, or an incomplete or late, response from the defendant to the notice of arbitration shall not prevent the constitution of an arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal. & /en 12 4. If the defendant requests that the arbitral tribunal consist of five arbitrators in its response to the notice of arbitration, the applicant shall designate an additional arbitrator within 30 days of receipt of the response to the notice of arbitration. ARTICLE I.6 Representation and assistance 1. The parties shall be represented before the arbitral tribunal by one or more agents. The agents may be assisted by advisers or lawyers. 2. Any change to the agents or their addresses shall be notified to the other party, the International Bureau and the arbitral tribunal. The arbitral tribunal may, at any time, on its own initiative or at the request of a party, request evidence of the powers conferred on the agents of the parties. & /en 13  CHAPTER II COMPOSITION OF THE ARBITRAL TRIBUNAL ARTICLE II.1 Number of arbitrators The arbitral tribunal shall be composed of three arbitrators. If the applicant in its notice of arbitration or the defendant in its response to the notice of arbitration so request, the arbitral tribunal shall be composed of five arbitrators. ARTICLE II.2 Appointment of arbitrators 1. If three arbitrators are to be appointed, each of the parties shall designate one of them. The two arbitrators appointed by the parties shall select the third arbitrator, who shall be the chair of the arbitral tribunal. 2. If five arbitrators are to be appointed, each of the parties shall designate two of them. The four arbitrators appointed by the parties shall select the fifth arbitrator, who shall be the chair of the arbitral tribunal. & /en 14 3. If, within 30 days of the designation of the last arbitrator appointed by the parties, the arbitrators have not reached agreement on the selection of the chair of the arbitral tribunal, the chair shall be appointed by the Secretary-General of the Permanent Court of Arbitration. 4. To assist in the selection of arbitrators to compose the arbitral tribunal, an indicative list of persons possessing the qualifications referred to in paragraph 6, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement between the European Union and the Swiss Confederation on health, done at […] on […] (hereinafter referred to as "Agreement on health"), the Agreement between the European Community and the Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999 (hereinafter referred to as "Agreement on trade in agricultural products") and the Agreement between the European Union and the Swiss Confederation on Switzerland's regular financial contribution towards reducing economic and social disparities in the European Union, done at […] on […] (hereinafter referred to as "Agreement on Switzerland's regular financial contribution"), shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. 5. Where a party fails to designate an arbitrator, the Secretary-General of the Permanent Court of Arbitration shall appoint that arbitrator from the list referred to in paragraph 4. In the absence of such a list, the arbitrator shall be appointed by lot by the Secretary-General of the Permanent Court of Arbitration from the individuals who have been formally proposed by one party or both parties for the purposes of paragraph 4. & /en 15 6. The persons constituting the arbitral tribunal shall be highly qualified persons, with or without ties to the parties, whose independence and lack of conflicts of interest is guaranteed, along with a wide range of experience. In particular, they shall have demonstrated expertise in law and the matters covered by this Agreement; they shall not take instructions from either party; and they shall serve in their individual capacities and not take instructions from any organisation or government with regard to matters related to the dispute. The chair of the arbitral tribunal shall also have experience in dispute settlement procedures. ARTICLE II.3 Arbitrators' declarations 1. When a person is being considered for appointment as an arbitrator, that person shall report all circumstances likely to give rise to legitimate doubts as to his or her impartiality or independence. From the appointment and throughout the entire arbitration proceedings, an arbitrator shall report such circumstances to the parties and to the other arbitrators without delay, if the arbitrator has not already done so. 2. Any arbitrator may be dismissed if circumstances exist that could give rise to legitimate doubts about his or her impartiality or independence. 3. A party may only request the dismissal of an arbitrator that it has appointed for a reason that becomes known to it after that appointment. 4. If an arbitrator fails to act or if it is impossible de jure or de facto for an arbitrator to fulfil his or her role, the procedure for the dismissal of arbitrators laid down in Article II.4 shall apply. & /en 16  ARTICLE II.4 Dismissal of arbitrators 1. Any party wishing to dismiss an arbitrator shall make a request for dismissal within 30 days of the date on which it is notified of the appointment of that arbitrator or within 30 days of the date on which it becomes aware of the circumstances referred to in Article II.3. 2. The request for dismissal shall be sent to the other party, to the dismissed arbitrator, to the other arbitrators and to the International Bureau. It shall set out the reasons for the request for dismissal. 3. When a request for dismissal has been made, the other party may accept the request for dismissal. The arbitrator in question may also step aside. The acceptance or stepping aside does not imply acknowledgement of the reasons for the request for dismissal. 4. If, within 15 days of the date of the notification of the request for dismissal, the other party does not accept the request for dismissal or the arbitrator in question does not step aside, the party requesting the dismissal may ask the Secretary-General of the Permanent Court of Arbitration to take a decision on the dismissal. 5. Unless the parties agree otherwise, the decision referred to in paragraph 4 shall indicate the reasons for that decision. & /en 17  ARTICLE II.5 Replacement of an arbitrator 1. Subject to paragraph 2 of this Article, if it is necessary to replace an arbitrator during the arbitration proceedings, a replacement shall be appointed or selected in accordance with the procedure laid down in Article II.2 applicable to the appointment or selection of the arbitrator to be replaced. That procedure shall apply even if one party had not exercised its right to appoint or to participate in the appointment of the arbitrator to be replaced. 2. In the event of replacement of an arbitrator, the procedure shall resume at the stage where the replaced arbitrator ceased to perform his or her functions, unless the arbitral tribunal decides otherwise. ARTICLE II.6 Exclusion of liability Except in cases of intentional wrongdoing or gross negligence, the parties renounce, to the maximum extent permitted by the applicable law, any action against the arbitrators for any act or omission related to the arbitration. & /en 18  CHAPTER III ARBITRATION PROCEEDINGS ARTICLE III.1 General provisions 1. The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator has accepted his or her appointment. 2. The arbitral tribunal shall ensure that the parties are treated equally and that, at an appropriate stage of the proceedings, each of them has sufficient possibility to assert their rights and present their case. The arbitral tribunal shall conduct the proceedings in such a way as to avoid delays and unnecessary expenditure and to ensure the dispute between the parties is settled. 3. A hearing shall be organised, unless the arbitral tribunal decides otherwise, having heard the parties. 4. When a party sends a communication to the arbitral tribunal, it shall do so through the International Bureau and shall send a copy to the other party at the same time. The International Bureau shall send a copy of that communication to each of the arbitrators. & /en 19  ARTICLE III.2 Place of arbitration The place of arbitration is The Hague. The arbitral tribunal may, if exceptional circumstances so require, meet at any other place that it considers appropriate for its deliberations. ARTICLE III.3 Language 1. The languages of the proceedings shall be French and English. 2. The arbitral tribunal may order all documents enclosed with the statement of claim or the statement of defence and all further documents produced during the proceedings, submitted in their original language, to be accompanied by a translation in one of the languages of the proceedings. ARTICLE III.4 Statement of claim 1. The applicant shall send its statement of claim in writing to the defendant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The applicant may decide to deem its notice of arbitration referred to in Article I.4 a statement of claim, provided that it also meets the conditions in paragraphs 2 and 3 of this Article. & /en 20 2. The statement of claim shall include the following information: (a) the information set out in points (b) to (f) of Article I.4(3); (b) a statement of facts submitted in support of the claim; and (c) the legal arguments put forward in support of the claim. 3. The statement of claim shall, as far as possible, be accompanied by any documents and other evidence mentioned by the applicant or should refer to them. In the cases referred to in Article 10(3) of the Protocol, the statement of claim shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. ARTICLE III.5 Statement of defence 1. The defendant shall send the statement of defence in writing to the applicant and to the arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The defendant may decide to deem the response to the notice of arbitration referred to in Article I.5 a statement of defence, provided that the response to the notice of arbitration also meets the conditions in paragraph 2 of this Article. & /en 21 2. The statement of defence shall respond to the points in the statement of claim indicated in accordance with points (a) to (c) of Article III.4(2) of this Appendix. It shall, as far as possible, be accompanied by any documents and other evidence mentioned by the defendant or should refer to them. In the cases referred to in Article 10(3) of the Protocol, the statement of defence shall also, as far as possible, contain information concerning the need for a referral to the Court of Justice of the European Union. 3. In the statement of defence, or at a later stage in the arbitration proceedings if the arbitral tribunal decides that a delay is justified by circumstances, the defendant may make a counterclaim provided that the arbitral tribunal has jurisdiction in respect of it. 4. Article III.4(2) and (3) shall apply to a counterclaim. ARTICLE III.6 Arbitral jurisdiction 1. The arbitral tribunal shall rule on whether it has jurisdiction on the basis of Articles 10(2) or 11(2) of the Protocol or of Article 14a(2) or (4) of the Agreement. 2. In the cases referred to in Article 10(2) of the Protocol, the arbitral tribunal shall have a mandate to examine the question causing the dispute as officially entered, for resolution, on the agenda of the Joint Committee in accordance with Article 10(1) of the Protocol. & /en 22 3. In the cases referred to in Article 11(2) of the Protocol, the arbitral tribunal that heard the main case shall have a mandate to examine the proportionality of the disputed compensatory measures, including where those measures have in whole or in part been taken in another bilateral agreement in the fields related to the internal market in which Switzerland participates. 4. In the cases referred to in Article 14a(2) and (4) of the Agreement, the arbitral tribunal shall have a mandate to examine whether the alleged difficulties have been proven and are caused by the application of the Agreement. 5. A preliminary objection of lack of jurisdiction of the arbitral tribunal shall be made at the latest in the statement of defence or, in the case of a counterclaim, in the reply. The fact that a party has appointed an arbitrator or has taken part in their appointment shall not deprive it of the right to make such a preliminary objection. The preliminary objection that the dispute would exceed the arbitral tribunal's powers shall be made as soon as the question alleged to exceed its powers is raised during the arbitration proceedings. In any event, the arbitral tribunal may allow a preliminary objection made after the time limit laid down has elapsed if it believes that the delay was for a valid reason. 6. The arbitral tribunal may rule on the preliminary objection referred to in paragraph 4 either by treating it as a preliminary question or in the decision on the substance of the case. & /en 23  ARTICLE III.7 Other written submissions The arbitral tribunal shall, after having consulted the parties, decide what other written submissions, in addition to the statement of claim and statement of defence, the parties shall or may submit and shall set the time limit for their submission. ARTICLE III.8 Time limits 1. The time limits set by the arbitral tribunal for the communication of the written documents, including the statement of claim and the statement of defence, shall not exceed 90 days, unless the parties agree otherwise. 2. The arbitral tribunal shall take its final decision within 12 months of the date of its establishment. In exceptional circumstances of particular difficulty, the arbitral tribunal may extend that period by up to three additional months. 3. The time limits laid down in paragraphs 1 and 2 shall be halved: (a) upon request by the applicant or the defendant, if, within 30 days of that request, the arbitral tribunal rules, after hearing the other party, that the case is urgent; or (b) if the parties so agree. & /en 24 4. In the cases referred to in Article 11(2) of the Protocol, the arbitral tribunal shall take its final decision within six months of the date on which the compensatory measures have been notified in accordance with Article 11(1) of the Protocol. 5. In the cases referred to in Article 14a(2) and (4) of the Agreement, the arbitral tribunal shall hand down its final decision within 6 months of the date of its establishment. ARTICLE III.9 Referrals to the Court of Justice of the European Union 1. In application of Article 7 and Article 10(3) of the Protocol, the arbitral tribunal shall make a referral to the Court of Justice of the European Union. 2. The arbitral tribunal may make a referral to the Court of Justice of the European Union at any time in the proceedings, provided that the arbitral tribunal is able to define precisely enough the legal and factual background of the case, and the legal questions it raises. The proceedings before the arbitral tribunal shall be suspended until the Court of Justice of the European Union has delivered its ruling. 3. Each party may send a reasoned request to the arbitral tribunal to make a referral to the Court of Justice of the European Union. The arbitral tribunal shall reject such a request if it considers the conditions for a referral to the Court of Justice of the European Union referred to in paragraph 1 not to be met. If the arbitral tribunal rejects a party's request for a referral to the Court of Justice of the European Union, it shall give reasons for its decision in the decision on the substance of the case. & /en 25 4. The arbitral tribunal shall make a referral to the Court of Justice of the European Union by means of a notice. The notice shall contain at least the following information: (a) a brief description of the dispute; (b) the legal act(s) of the Union and/or the provision(s) of the Agreement at issue; and (c) the concept of Union law to be interpreted in accordance with Article 7(2) of the Protocol. The arbitral tribunal shall give notice of the referral to the Court of Justice of the European Union to the parties. 5. The Court of Justice of the European Union shall apply, by analogy, the internal rules of procedure applicable to the exercise of its jurisdiction to make a preliminary ruling on the interpretation of the Treaties and acts made by the Union's institutions, bodies, offices and agencies. 6. The agents and lawyers authorised to represent the parties before the arbitral tribunal pursuant to Articles I.4, I.5, III.4 and III.5 shall be authorised to represent the parties before the Court of Justice of the European Union. & /en 26  ARTICLE III.10 Interim measures 1. In the cases referred to in Article 11(2) of the Protocol, either party may, at any stage of the arbitration procedure, apply for interim measures consisting of the suspension of the compensatory measures. 2. An application pursuant to paragraph 1 shall state the subject matter of the proceedings, the circumstances giving rise to urgency and the pleas of fact and law establishing a prima facie case for the interim measures applied for. It shall contain all the evidence and offers of evidence available to justify the grant of the interim measures. 3. The party requesting the interim measures shall send its application in writing to the other party and to the arbitral tribunal through the International Bureau. The arbitral tribunal shall set a short time limit within which that other party may submit written or oral observations. 4. The arbitral tribunal shall, within one month of the submission of the application referred to in paragraph 1, adopt a decision on the suspension of the contested compensatory measures if the following conditions are met: (a) the arbitral tribunal is prima facie satisfied of the merit of the case submitted by the party requesting the interim measures in its application; (b) the arbitral tribunal considers that, pending its final decision, the party requesting the interim measures would suffer serious and irreparable harm absent the suspension of the compensatory measures; and & /en 27 (c) the harm caused to the party requesting the interim measures by the immediate application of the contested compensatory measures outweighs the interest in the immediate and effective application of those measures. 5. The suspension of proceedings referred to in the second subparagraph of Article III.9(2) shall not apply in proceedings pursuant to this Article. 6. A decision taken by the arbitral tribunal in accordance with paragraph 4 shall have only an interim effect and shall be without prejudice to the decision of the arbitral tribunal on the substance of the case. 7. Unless the decision taken by the arbitral tribunal in accordance with paragraph 4 of this Article sets an earlier date for the end of the suspension, the suspension shall lapse when the final decision pursuant to Article 11(2) of the Protocol is taken. 8. For the avoidance of doubt, for the purposes of this Article, it is understood that, in considering the respective interests of the party requesting the interim measures and the other party, the arbitral tribunal shall take into account those of the individuals and economic operators of the parties, but that consideration shall not amount to granting any standing to such individuals or economic operators before the arbitral tribunal. ARTICLE III.11 Evidence 1. Each party shall provide evidence of the facts forming the grounds of its claim or its defence. & /en 28 2. On request of a party, or on its own initiative, the arbitral tribunal may seek from the parties relevant information it considers necessary and appropriate. The arbitral tribunal shall set a time limit for the parties to respond to its request. 3. On request of a party, or on its own initiative, the arbitral tribunal may seek from any source any information it considers appropriate. The arbitral tribunal may also seek the opinion of experts as it considers appropriate and subject to any terms and conditions agreed by the parties, where applicable. 4. Any information obtained by the arbitral tribunal under this Article shall be made available to the parties, and the parties may submit comments on that information to the arbitral tribunal. 5. After seeking the views of the other party, the arbitral tribunal shall adopt appropriate measures to address any questions raised by a party with regard to the protection of personal data, professional secrecy and the legitimate interests of confidentiality. 6. The arbitral tribunal shall be the judge of the admissibility, relevance and strength of the evidence submitted. ARTICLE III.12 Hearings 1. When a hearing must take place, the arbitral tribunal, having consulted the parties, shall notify the parties sufficiently far in advance of the date, time and place of the hearing. & /en 29 2. The hearing shall be public, unless the arbitral tribunal, of its own motion or on application by the parties, decides otherwise for serious reasons. 3. Minutes of each hearing shall be drawn up and signed by the chair of the arbitral tribunal. Only those minutes shall be authentic. 4. The arbitral tribunal may decide to hold the hearing virtually in accordance with the practice of the International Bureau. The parties shall be informed of this practice in a timely manner. In such cases, paragraph 1, mutatis mutandis, and paragraph 3 shall apply. ARTICLE III.13 Default 1. If, within the time limit set by this Appendix or by the arbitral tribunal, without showing sufficient cause, the applicant has not submitted its statement of claim, the arbitral tribunal shall order the closure of the arbitration proceedings, unless there are outstanding questions on which a ruling may be necessary and if the arbitral tribunal considers it appropriate to do so. If, within the time limit set by this Appendix or by the arbitral tribunal, without showing sufficient cause, the defendant has not submitted its response to the notice of arbitration or its statement of defence, the arbitral tribunal shall order the continuation of the proceedings, without considering that default of itself to constitute acceptance of the applicant's allegations. The second subparagraph also applies where the applicant fails to submit a reply to a counterclaim. & /en 30 2. If a party, duly convened in accordance with Article III.12(1), does not appear at a hearing and does not demonstrate sufficient cause for its failure to do so, the arbitral tribunal may continue the arbitration. 3. If a party, duly invited by the arbitral tribunal to produce further evidence, fails to do so within the time limits set without showing sufficient cause for its failure to do so, the arbitral tribunal may rule on the basis of the evidence it has available. ARTICLE III.14 Closure of the procedure 1. Where it is demonstrated that the parties have reasonably had the possibility of presenting their arguments, the arbitral tribunal may declare the closure of the proceedings. 2. The arbitral tribunal may, if it considers it necessary because of exceptional circumstances, decide on its own initiative or at the request of a party to reopen the proceedings at any time before it has taken its decision. & /en 31  CHAPTER IV DECISION ARTICLE IV.1 Decisions The arbitral tribunal shall strive to take its decisions by consensus. If, however, it proves impossible to take a decision by consensus, the arbitral tribunal's decision shall be taken by a majority of the arbitrators. ARTICLE IV.2 Form and effect of the decision of the arbitral tribunal 1. The arbitral tribunal may take separate decisions on different questions at different times. 2. All decisions shall be issued in writing and shall state the reasons on which they are based. They shall be final and binding on the parties. 3. The decision of the arbitral tribunal shall be signed by the arbitrators, shall contain the date on which it was taken and state the place of arbitration. A copy of the decision signed by the arbitrators shall be communicated to the parties by the International Bureau. & /en 32 4. The International Bureau shall make the decision of the arbitral tribunal public. When making the decision of the arbitral tribunal public, the International Bureau shall respect the relevant rules on the protection of personal data, professional secrecy and the legitimate interests of confidentiality. The rules referred to in the second subparagraph shall be identical for all bilateral agreements in the fields of the internal market in which Switzerland participates as well as for the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution. The Joint Committee shall adopt and update those rules by a decision for the purposes of the Agreement. 5. The parties shall comply with all decisions of the arbitral tribunal without delay. 6. In the cases referred to in Article 10(2) of the Protocol, having obtained the opinion of the parties, the arbitral tribunal shall set a reasonable time limit in the decision on the substance of the case to comply with its decision in accordance with Article 10(5) of the Protocol taking account of the parties' internal procedures. ARTICLE IV.3 Applicable law, rules of interpretation, mediator 1. The applicable law consists of the Agreement, the legal acts of the Union to which reference is made therein, as well as any other rule of international law relevant to the application of those instruments. & /en 33 2. The arbitral tribunal shall decide in accordance with the rules of interpretation referred to in Article 7 of the Protocol. 3. Prior decisions taken by a dispute settlement body with regard to the proportionality of compensatory measures under another bilateral agreement among those referred to in Article 11(1) of the Protocol shall be binding upon the arbitral tribunal. 4. The arbitral tribunal shall not be permitted to decide as mediator or ex aequo et bono. ARTICLE IV.4 Mutually agreed solution or other reasons for closure of the proceedings 1. The parties may, at any time, mutually agree a solution to their dispute. They shall jointly communicate any such solution to the arbitral tribunal. If the solution requires approval pursuant to the relevant domestic procedures of either party, the notification shall refer to that requirement, and the arbitration procedure shall be suspended. If such approval is not required, or upon notification of the completion of any such domestic procedures, the arbitration procedure shall be closed. 2. If, in the course of proceedings, the applicant informs the arbitral tribunal in writing that it does not wish to further pursue the proceedings, and if, at the date on which that communication is received by the arbitral tribunal, the defendant has not yet taken any step in the proceedings, the arbitral tribunal shall issue an order officially recording the closure of the proceedings. The arbitral tribunal shall decide on the costs, which shall be borne by the applicant, if this appears justified by the conduct of that party. & /en 34 3. If, before the decision of the arbitral tribunal is taken, the arbitral tribunal concludes that the continuation of the proceedings has become pointless or impossible for any reason other than those referred to in paragraphs 1 and 2, the arbitral tribunal shall inform the parties of its intention to issue an order closing the proceedings. The first subparagraph does not apply where there are outstanding questions on which it may be necessary to rule and if the arbitral tribunal judges it appropriate to do so. 4. The arbitral tribunal shall communicate to the parties a copy of the order closing the arbitration proceedings or of the decision taken by agreement between the parties, signed by the arbitrators. Article IV.2(2) to (5) shall apply to arbitration decisions taken by agreement between the parties. ARTICLE IV.5 Correction of the decision of the arbitral tribunal 1. Within 30 days of receiving the decision of the arbitral tribunal, a party may, by giving notice to the other party and to the arbitral tribunal through the International Bureau, ask the arbitral tribunal to correct in the text of the decision of the arbitral tribunal any errors in computation, any clerical or typographical errors, or any errors or omissions of a similar nature. If it considers the request to be justified, the arbitral tribunal shall make the correction within 45 days of receiving the request. The request shall not have a suspensive effect on the time limit provided for in Article IV.2(6). & /en 35 2. The arbitral tribunal may, within 30 days of communicating its decision, make the corrections referred to in paragraph 1 on its own initiative. 3. The corrections referred to in paragraph 1 of this Article shall be done in writing and form an integral part of the decision. Article IV.2(2) to (5) shall apply. ARTICLE IV.6 Arbitrators' fees 1. The fees referred to in Article IV.7 shall be reasonable, taking account of the complexity of the case, the time spent on it by the arbitrators and all other relevant circumstances. 2. A list of daily compensation and maximum and minimum hours, which shall be common to all bilateral agreements in the fields related to the internal market in which Switzerland participates as well as the Agreement on health, the Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial contribution, shall be established and updated when necessary. The Joint Committee shall adopt and update that list by a decision for the purposes of the Agreement. ARTICLE IV.7 Costs 1. Each party shall bear its own costs and half of the costs of the arbitral tribunal. & /en 36 2. The arbitral tribunal shall set its costs in its decision on the substance of the case. Those costs shall include only: (a) the arbitrators' fees, to be stated separately for each arbitrator and to be set by the arbitral tribunal itself in accordance with Article IV.6; (b) the travel and other expenses incurred by the arbitrators; and (c) the fees and expenses of the International Bureau. 3. The costs referred to in paragraph 2 shall be reasonable, taking account of the amount in dispute, the complexity of the dispute, the time that the arbitrators and any experts appointed by the arbitral tribunal have spent on it and any other relevant circumstances. ARTICLE IV.8 Deposit of costs 1. At the start of the arbitration, the International Bureau may ask the parties to deposit an equal amount as an advance for the costs referred to in Article IV.7(2). 2. During the arbitration proceedings, the International Bureau may request from the parties deposits supplementary to those referred to in paragraph 1. & /en 37 All amounts deposited by the parties in application of this Article shall be paid to the International Bureau and paid out by it to cover the costs actually incurred, including, in particular, the fees paid to the arbitrators and to the International Bureau. CHAPTER V FINAL PROVISIONS ARTICLE V.1 Amendments The Joint Committee may adopt, by decision, amendments to this Appendix. ________________ & /en 38 03.07.2025 ELi ja Šveitsi vaheline ulatuslik lepingute pakett COM(2025) 308 final ja COM(2025) 309 final Otsuse ettepanek koordinatsioonikogule Kujundada seisukoht KOKi ja VVsse esitamise tähtaeg: Tulenevalt riigisekretäri EL asjade menetlemise juhiste punktidest 14 ja 15: Lepingu eelnõu menetletakse välissuhtlemisseaduse kohaselt. Kui nõukogu otsuse eelnõu lepingu allkirjastamise kohta tuleb nõukogus otsustamisele varem kui lõpeb välissuhtlemisseaduse kohane lepingu eelnõu heakskiitmise riigisisene menetlus, esitada valitsusele arutamiseks ja otsustamiseks seisukohad nimetatud otsuse eelnõu kohta enne otsuse vastuvõtmist nõukogus või ELi liikmesriikide esindajate kohtumisel. Välisministeeriumil tagada kaasvastutavate ministeeriumide õigeaegne kaasamine tagasisideks. Vastutav ministeerium: Välisministeerium Kaasvastutajad: Majandus- ja Kommunikatsiooniministeerium, Sotsiaalministeerium, Regionaal- ja Põllumajandusministeerium, Kliimaministeerium, Haridus- ja Teadusministeerium, Rahandusministeerium, Siseministeerium, Justiits- ja Digiministeerium Seisukoha valitsusse toomise alus ja põhjendus Algatuse reguleerimisala nõuab vastavalt Eesti Vabariigi põhiseadusele seaduse või Riigikogu otsuse vastuvõtmist, muutmist või kehtetuks tunnistamist (RKKTS § 152¹ lg 1 p 1); Algatuse vastuvõtmisega kaasneks oluline majanduslik või sotsiaalne mõju (RKKTS § 152¹ lg 1 p 2); Sisukokkuvõte 13. juunil 2025 esitas Euroopa Komisjon ettepanekud anda luba Šveitsiga ulatusliku lepingute paketi lõpule viimiseks (COM(2025) 309 final koos lisadega) ja allkirjastamiseks (COM(2025) 308 final koos lisadega). Lisaks soovib komisjon ajutiselt kohaldada ühte elementi paketist, mis hõlmab kosmosekoostööd. Ulatusliku paketi eesmärk on kaasajastada, süvendada ja laiendada ELi ja Šveitsi suhteid. Pakett ajakohastab viit kokkulepet, mis annavad Šveitsile ligipääsu ELi siseturule, ning lisab uusi sektoripõhiseid kokkuleppeid (toiduohutus, tervishoid, elekter, rahaline panus ühtekuuluvusse, osalus ELi programmides, kosmosekoostöö). Pakett sisaldab: a) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise inimeste vaba liikumise lepingu muutmise protokoll b) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise inimeste vaba liikumise lepingu institutsionaalne protokoll c) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise õhutranspordi lepingu muutmise protokoll d) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise õhutranspordi lepingu institutsionaalne protokoll e) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise õhutranspordi lepingu riigiabi protokoll f) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise kaupade ja reisijate vedu raudteel ja maanteel käsitleva lepingu institutsionaalne protokoll g) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise kaupade ja reisijate vedu raudteel ja maanteel käsitleva lepingu muutmise protokoll h) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise kaupade ja reisijate vedu raudteel ja maanteel käsitleva lepingu riigiabi protokoll i) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise vastastikust vastavushindamist käsitleva lepingu muutmise protokoll j) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise vastastikust vastavushindamist käsitleva lepingu institutsionaalne protokoll k) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise põllumajandustoodete kaubanduse lepingu muutmise protokoll l) Euroopa Liidu ja Šveitsi Konföderatsiooni vahelise põllumajandustoodete kaubanduse lepingu protokoll ühise toiduohutusalase ala loomise kohta m) tervishoiuleping, mis võimaldab Šveitsil osaleda tõsiste piiriüleste terviseohtudega tegelevates ELi mehhanismides ja organites, eelkõige Haiguste Ennetamise ja Tõrje Euroopa Keskuses ning varajase hoiatamise ja reageerimise süsteemis; n) elektrialane leping, mis võimaldab Šveitsil osaleda ELi elektrienergia siseturul; 2 o) leping Šveitsi alalise ja õiglase rahalise panuse kohta liidu majanduslikku ja sotsiaalsesse ühtekuuluvusse, milles kajastub lepinguosaliste partnerluse ja koostöö tase; p) leping Šveitsi osalemiseks liidu programmides „Euroopa horisont“, Euratomi teadusuuringute ja koolituste programm, tuumaenergia projekt ITER ja ühisettevõte Fusion for Energy, „Digitaalne Euroopa“, Erasmus+, „EL tervise heaks“ (antud osa pakettlahendusest esitas juba 9. aprillil 2025 komisjon ettepaneku nõukogu soovituseks allkirjastada ja ajutiselt kohaldada, et võimaldada Šveitsi osalust ja rahalist panust juba käesoleval aastal; kiidetud heaks 19.06 VV istungil); q) kosmosekoostöö leping, mis võimaldab Šveitsil osaleda Euroopa Liidu Kosmoseagentuuri kaudu ELi kosmoseprogrammi meetmetes, mis on konkreetselt seotud Galileo ja EGNOSe komponentidega (komisjon soovib seda osa paketist samuti ajutiselt kohaldama hakata, et võimaldada Šveitsi osalus ELi kosmoseagentuuri programmis juba 2026. aastast); r) eraldi protokoll parlamentaarse koostöö kohta. Ulatusliku paketi allkirjastamiseni loodetakse jõuda hiljemalt 2026. aasta veebruariks. EL ja Šveits peavad mõlemad leppe ratifitseerima vastavalt oma menetlusprotseduuridele. ELi ja Šveitsi suhted on olnud küll tihedad, kuid on institutsionaalsete suhete loomise vaatest keerukad. EL ja Šveits pidasid aastatel 2014–2021 läbirääkimisi institutsioonilise raamistiku lepingu üle (Institutional Framework Agreement, IFA), mis kahjuks kokkuleppega ei päädinud. Pärast 2021. aastal ELi ja Šveitsi vahelise institutsioonilist raamistikku käsitleva lepingu mittesõlmimist võtsid osapooled 2022. aastal vastu poliitilise kokkuleppe, millega pandi paika tuleviku läbirääkimiste ulatus ning kinnitati mõlemapoolset soovi taaselustada koostöö teadus-, innovatsiooni- ja haridusvaldkonnas, kavandades Šveitsi osalust ELi programmides eraldiseisva õigusliku raamistikuna. Läbirääkimised algasid 2024. aasta märtsis ja lõpetati edukalt 2024. aasta detsembris. Lisaks sisaldab pakettlepe eraldi protokolli parlamendikoostöö kohta. Eesmärgid 1.Tihendada ja ajakohastada ELi poliitilisi ja majanduslikke suhteid Šveitsiga Lai pakett võimaldab edendada ELi ettevõtjate, kodanike ja teadlaste huvisid paljudes poliitikavaldkondades (ühtne turg, konkurents, tööhõive- ja sotsiaalteemad, inimeste vaba liikumine, transport, põllumajandus, toiduohutus ja -kvaliteet, loomad ja loomsed tooted, taimed ja taimsed tooted, tarbijakaitse, energia, tervis, kaubandus, haridus ja teadus, kosmos, digimajandus ja -ühiskond). 2. Tagada aus konkurents ühtsel turul tegutsevate ELi ja Šveitsi ettevõtete vahel 3. Kaitsta ELi kodanike õigusi Šveitsis 3 4. Tagada Šveitsi pikaajalise panuse jätkumine ühtekuuluvusse Mõju ja sihtrühm Haridus Sihtrühm: Teadusasutused Mõju sihtrühmale: Loob uusi võimalusi teaduskoostööks Ettevõtlus Sihtrühm: Ettevõtjad Mõju sihtrühmale: Loob uusi potentsiaalseid võimalusi Šveitsi turul Põllu-, metsa- ja kalamajandus ning toiduainetööstus Sihtrühm: Põllumajandus, toiduainetööstus Mõju sihtrühmale: Lihtsustab põllumajandus- ja toidutoodete jõudmist Šveitsi turule Regionaalareng Sihtrühm: Kohalikud omavalitsused Mõju sihtrühmale: Šveitsi panus ühtekuuluvuspoliitikasse on olnud oluline, uue leppega nähakse ette Šveitsi rahaline panus ühtekuuluvusse aastatel 2030-2036, millega kaasneb täiendav ühekordne panus 2024. a lõpu ja 2029. a lõpu vahelise perioodi katmiseks Kaasamine Kaasata kõik asjassepuutuvad sidusrühmad ja partnerid. 4 Eelnõude infosüsteemis (EIS) on antud täitmiseks ülesanne. Eelnõu toimik: 4.16.1/25-0368 - COM(2025) 308 Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme Teadmiseks: Riigikantselei resolutsioon - ELi ja Šveitsi vaheline ulatuslik lepingute pakett Osapooled: Majandus- ja Kommunikatsiooniministeerium; Haridus- ja Teadusministeerium; Justiits- ja Digiministeerium; Siseministeerium; Regionaal- ja Põllumajandusministeerium; Rahandusministeerium; Sotsiaalministeerium; Kliimaministeerium Tähtaeg: 18.07.2025 23:59 Link eelnõu toimiku vaatele: https://eelnoud.valitsus.ee/main/mount/docList/ae7975b6-709b-4df0-93ee-981d40e0c492 Link menetlusetapile: https://eelnoud.valitsus.ee/main/mount/docList/ae7975b6-709b-4df0-93ee-981d40e0c492?activity=2 Eelnõude infosüsteem (EIS) https://eelnoud.valitsus.ee/main . Resolutsiooni liik: Riigikantselei resolutsioon Viide: Välisministeerium / / ; Riigikantselei / / 2-5/25-01317 Resolutsiooni teema: ELi ja Šveitsi vaheline ulatuslik lepingute pakett Adressaat: Välisministeerium Ülesanne: Tulenevalt riigisekretäri EL asjade menetlemise juhiste punktidest 14 ja 15: Lepingu eelnõu menetletakse välissuhtlemisseaduse kohaselt. Kui nõukogu otsuse eelnõu lepingu allkirjastamise kohta tuleb nõukogus otsustamisele varem kui lõpeb välissuhtlemisseaduse kohane lepingu eelnõu heakskiitmise riigisisene menetlus, esitada valitsusele arutamiseks ja otsustamiseks seisukohad nimetatud otsuse eelnõu kohta enne otsuse vastuvõtmist nõukogus või ELi liikmesriikide esindajate kohtumisel. - Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union, of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and on the provisional application of the Agreement on the terms and conditions for the participation of the Swiss Confederation in the European Union Agency for the Space Programme, COM(2025) 308; - Proposal for a COUNCIL DECISION on the conclusion of a broad package of agreements to consolidate, deepen and expand the bilateral relations with the Swiss Confederation, COM(2025) 309. Välisministeeriumil tagada kaasvastutavate ministeeriumide õigeaegne kaasamine tagasisideks. EISi toimiku nr: 25-0368 Teadmiseks: Majandus- ja Kommunikatsiooniministeerium, Sotsiaalministeerium, Regionaal- ja Põllumajandusministeerium, Kliimaministeerium, Haridus- ja Teadusministeerium, Rahandusministeerium, Siseministeerium, Justiits- ja Digiministeerium Tähtaeg: Kinnitaja: Nele Grünberg, Euroopa Liidu asjade direktori asetäitja Kinnitamise kuupäev: 04.07.2025 Resolutsiooni koostaja: Elen Nurme [email protected], 693 5201