Summary: The dynamic adoption of law is the centrepiece of the institutional innovations of the Bilateral Agreements III. Switzerland will in future adopt relevant developments in EU law in the areas covered by the agreements as a matter of principle. An opt-out is possible but may trigger compensatory measures by the EU. This mechanism replaces the previous static model, under which the agreements were "frozen" at the legal status at the time of signature.
The Bilateral Agreements I and II (with the exception of the Schengen association) are static treaties: they reflect the EU's legal status at the time of signature. When the EU develops its legislation further, a growing discrepancy arises between current EU law and the content of the agreements. Updates were only possible through the Joint Committees and required the consent of both sides [1][5].
Under the Bilateral Agreements III, Switzerland adopts developments in EU law in the areas covered by the agreements as a matter of principle ("dynamically"). This mechanism is integrated into each of the updated and new sectoral agreements (-> The Package Approach) [5].
Important: The adoption does not occur automatically. Switzerland must examine each relevant EU legal act in a separate procedure and transpose it into national law. The adoption requires a formal decision by the Swiss authorities [1][5].
When the EU adopts a new legal act affecting an area covered by the Bilateral Agreements III, Switzerland is informed (notification) [5].
Switzerland examines the EU legal act and decides whether to adopt it. The ordinary Swiss legislative procedures apply -- including the participation rights of Parliament and the cantons [1][5].
Deadlines: Switzerland has a reasonable period for adoption. The exact deadlines vary depending on the complexity of the legal act and the necessity of parliamentary deliberation.
In return for the adoption obligation, Switzerland receives a right to participate in the drafting of new EU legal acts affecting the areas covered by the agreements. Swiss experts can participate in relevant EU working groups [1][3].
This "Decision Shaping" (co-determination without voting rights) is intended to ensure that Swiss concerns are already taken into account during the drafting of new EU regulations.
Switzerland may refuse to adopt an EU legal act (opt-out). In this case, the EU may take proportionate compensatory measures [1][5].
If Switzerland refuses to adopt an EU legal act, the EU may take compensatory measures. These must be proportionate -- they may only relate to the affected area of the agreement and must be in reasonable proportion to the non-adoption [5].
Example: If Switzerland refuses a new EU regulation in the area of technical barriers to trade, the EU could suspend the mutual recognition of conformity assessments in that specific area.
The proportionality of compensatory measures can be challenged by Switzerland before the arbitration tribunal [5].
The dynamic adoption of law affects the sovereignty of the Swiss Parliament. Two aspects are central [1][6]:
The dynamic adoption of law is the central point of contention of the Bilateral Agreements III [16]:
Supporters argue:
Critics argue:
An in-depth analysis of the advantages and disadvantages can be found in the chapters Advantages and Disadvantages.
[1] FDFA (2026). Switzerland-EU Package (Bilateral III). Federal Department of Foreign Affairs. [Open Access]
[3] GTAI (2026). Agreements of the Switzerland-EU package signed. Germany Trade & Invest. [Open Access]
[5] FDFA (2026). Fact sheet: Institutional elements. Federal Department of Foreign Affairs. [Open Access]
[6] FDFA (2025). Expert opinion Prof. Hahn: Dynamic adoption of law. Federal Department of Foreign Affairs. [Open Access]
[16] UNSER RECHT (2026). Bilateral III -- what is it about? Information platform. [Open Access]
Last updated: March 2026