Basel-Mulhouse airport: statement on Franco-Swiss step towards agreement by end of 2015

Bern, 14.04.2015 - Negotiations on Basel-Mulhouse airport are progressing. Federal Councillor Didier Burkhalter and French Foreign Minister Laurent Fabius adopted a statement on Tuesday confirming the progress made in recent weeks as part of the Franco-Swiss negotiations. The goal of both parties is to finalise an overall agreement by the end of the year.

Three components of an overall agreement have now been reached, according to the "Franco-Swiss declaration on the progress of work on fiscal matters and the financial compensation system for costs incurred by the Direction générale de l’aviation civile (DGAC) (French civil aviation authority) in the Swiss customs area of Basel-Mulhouse airport" adopted by Mr Burkhalter and Mr Fabius. These three components relate to VAT (application of Swiss VAT in the Swiss customs area of the airport), direct taxation of the airport premises and compensation for the costs of the DGAC. France has thus agreed not to levy Taxe d’aviation civile (civil aviation tax) on passengers departing from Basel. The DGAC's services will be reimbursed in the amount of EUR 6 million per year, a third of the original claims.  

A fourth component – direct business taxation – has yet to be discussed. An overall agreement can be reached when the four components have been approved. France and Switzerland aim to conclude such an agreement by the end of 2015. The Canton of Basel-Stadt and the companies of the Swiss sector of the airport are closely involved in the process. 

Having reached an agreement on methodology in March 2012, which provided a solution for the labour law applicable in the Swiss sector of Basel-Mulhouse airport, since May 2013 Switzerland and France's discussions have centred mainly on fiscal issues concerning the airport.

During his visit to Paris on 30 October 2014 in his capacity as President of the Swiss Confederation, Mr Burkhalter had raised the issue of the airport with the French president. Both had noted the importance of the site as transport hub and employer for the whole Upper Rhine region, expressing the wish to find joint solutions between Switzerland and France to secure the future of the only binational airport in the world.
On 22 January 2015 in Davos, Mr Burkhalter and Mr Fabius had adopted a joint statement containing the guiding principles for the four components mentioned above. More than 60 Swiss companies are active in the Swiss sector of the airport.  The airport as a whole employs some 6,000 people – including more than 4,500 in the Swiss sector.


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