European Union and Swiss investors will lose direct access to each others’ stock exchanges from July 1 as a result of an argument over a partnership treaty.
European Commission will not opt for extending of the equivalence regime that allows EU investors trade on Swiss stock exchange, effectively ending it as of July 1. according to the European diplomats.
The deadline of June 21 for the Commission to make such a proposal is overdue, and there will be no last-minute fix, because Bern did not endorse a partnership treaty with the EU that had been negotiated for years, a European diplomat said.
The move by the EU, its biggest trading partner, will prompt retaliation from Bern, which last year drew up contingency plans to block by decree trading of Swiss shares on EU-based exchanges.
“Should the EU not extend Swiss exchanges’ access to the EU market Switzerland would activate the protective measures decided on 8 June 2018 with effect from the end of June,” said government spokesperson.