As from 1 June 2002, the Agreements between the EU Member States and Switzerland will become effective, including the free movement of persons, coordination of social security systems, the mutual recognition of professional qualifications, the liberalization of the acquisition of real estate and the partial liberalization of the free flow of services.

The Agreement in respect of the free movement of persons applies to all Swiss nationals and all nationals of EU member states (not yet applicable at this stage to EEA nationals). The Agreement does not affect nationals of other states, except in the case of family members or workers from other states who are already integrated into the labour markets of the EU or Switzerland and temporarily provide services in another signatory state (i.e. seconded employees).

- The Agreement embodies the principle of equal treatment. This means that the same living, employment and working conditions will apply to Swiss nationals and nationals of EU member states both in Switzerland and the EU.
- The Agreement concerns the right of free access and residence for people, whether they perform an employed or self-employed economic activity. Full freedom of movement will not apply directly, but will be obtained through a gradual process lasting 12 years. This means that, in a transitional period, work and residence permits will still have to be applied for, both for EU nationals entering Switzerland and for Swiss nationals entering the EU. However different transitional regulations (such as quotas, special regulations in respect of extension of the validity of the permits, time frame, etc.) will apply for EU nationals entering Switzerland and for Swiss nationals entering the EU.

- The Agreement provides for the partial liberalization of the provision of services. The total free provision of services is limited to only 90 days in a calendar year.

- As from 1 June 2002, coordination of the social security systems effected through application of the Community Acts on social security (e.g. EC Regulations 1408/71 and 574/72 and EC Directive 98/49) will become applicable to Switzerland (with the exception of certain exceptional regulations). The coming into effect of the Agreement will suspend the bilateral social security treaty between Belgium and Switzerland for matters covered by said Agreement. In this respect, contrary to the current bilateral treaty, salaried workers simultaneously employed in Switzerland and the EU and having their residence in one of the working states will as from 1 June 2002 be subject to the social security scheme of the state of residence for their entire income as a salaried worker. A double social security liability will still exist, however, in case involving self-employed activity in Switzerland and simultaneous employed activity in the EU.

- The double taxation treaties concluded between Switzerland and each of the EU member states will be unaffected.

Given the complex regulations, we suggest you contact Frank Ruelens ((+32) 02 710 78 50), Stefan Nerinckx ((+32) 02 710 78 84) or Jo Antoons ((+32) 02 710 78 95) should you need further detailled information.