Swiss Federal Council adopts draft law to deepen ties with EU

ZURICH, March 13 (Reuters) - The Swiss government on Friday adopted a draft law containing a raft of measures aimed at deepening the Alpine country's economic ties with the European Union, which now passes to parliament.

If lawmakers pass the bill, it is poised to face a national referendum, where it is likely to face stiff resistance from nationalists who argue that further integration with the EU will compromise Swiss sovereignty and hold the country back.

The governing Federal Council said the package is in Switzerland's interest and would ensure continuity of relations with the EU, the landlocked country's most important trading partner.

"In view of the tense geopolitical situation, stable and reliable relations with neighbouring European countries are of strategic importance," the Federal Council said.

The council said the deal that was initially agreed between Switzerland and the EU in December 2024 would create certainty for its export-led economy and secure prosperity.