Switzerland is geographically and culturally in the centre of the European continent. It is not however, a member of either the European Union (EU) or the European Economic Area (EEA). Switzerland’s policy on Europe was determined by the 1992 referendum, which rejected joining the EEA. Since then Switzerland has developed a bilateral route, for which the Swiss people have, on many occasions, confirmed their approval. As a result, sector-based, bilateral agreements have been signed between Switzerland and the EU to meet the requirements associated with intense political and economic relations. Both partners, strongly interconnected economically -Switzerland is the EU’s 3rd largest export market after the USA and China, the EU is Switzerland’s largest commercial partner*- have thus granted one another mutual and extensive access to certain sectors of their markets. 

Important subjects such as the free movement of persons, land and air transport, education, statistics and culture are covered by these agreements and collaboration can happen in different ways. As for security and migration, Switzerland is an associate member of the Schengen Area and participates in establishing the rules relating thereto on an equal footing with the EU Member States. In other areas such as research, the environment, education or media, Switzerland contributes to the European project through direct involvement with EU programmes. Finally, though its own voluntary policy, Switzerland contributes to improving the speed and flow of traffic across the continent through the construction of transalpine tunnels. 

Collaboration also extends to foreign policy. Switzerland actively participates in the promotion of stability and prosperity within and outside the EU through its financial support (contribution towards enlargement and aid to the countries of Eastern Europe) and by participating in the peace missions in Kosovo and Bosnia-Herzegovina (EULEX-Kosovo, EUFOR-ALTHEA and civil police mission in Bosnia-Herzegovina).

*European Commission, DG Trade, Switzerland main economic indicators, 2010