Stock market deadline raises tensions between EU and Switzerland

Geneva (dpa) - Switzerland was angered Thursday when the European Union applied pressure on the country‘s stock market to gain leverage in stalled talks over future EU-Swiss trade ties.The European Commission said it would continue treating Switzerland‘s stock regulations as equivalent to EU rules only until the end of 2018.The EU executive body added that it could extend its certification beyond that date, if there is enough progress on a new legal framework that would consolidate the 120 treaties that currently govern relations between the bloc and the non-EU country."We will be assessing progress on that by end of next year," European Commission Vice President Valdis Dombrovskis said.The framework is key for securing smooth trade relations between both sides. Switzerland is the EU‘s third-largest trade partner, while the EU is the biggest partner for Switzerland."We view this temporary recognition as a clear discrimination against Switzerland," Swiss President Doris Leuthard told reporters in Bern, referring to the EU‘s unlimited acceptance of stock exchange regulations in US, Hong Kong and Australia.Leuthard warned that Switzerland might now "reassess" its pledge of 1.3 billion euros (1.5 billion dollars) to support eastern EU countries over the next decade.Switzerland‘s SIX stock exchange could face problems if the dispute is not resolved, as EU investment firms are only allowed to trade in non-EU locations that are certified by Brussels.