0200 GMT July 18, 2019
The loss of access granted under a so-called “equivalence” regime would have broad financial repercussions for Switzerland, and for the 28-country European Union itself, Reuters reported.
But the radical step is seen in Brussels as inevitable after years of inconclusive negotiations over new arrangements on future relations with Bern.
The hardening of Brussels’ stance is also partly linked to parallel talks underway with Britain over its departure from the EU. A lenient approach to the Swiss dispute could encourage London to seek softer Brexit terms, an EU diplomat told Reuters.
Reporting the results of the weekly meeting of the EU executive, Commissioner Maros Sefcovic told a news conference that it had noted a lack of progress in the talks, and saw no need to make a decision on EU-Swiss relations.
“If the European Commission does not decide otherwise, the equivalence decision (on Swiss exchanges) will automatically expire on June 30,” Sefcovic said.