External borders: recognition by new Member States and Schengen States of residence permits issued by Switzerland and Liechtenstein as equivalent to their national visas for the purpose of transit (Regulation (EC) No 539/2001)

2005/0159(COD)

PURPOSE: To introduce a simplified regime for permits issued by Switzerland and Liechtenstein for the purpose of transit through their territories, based on unilateral recognition of documents.

PROPOSED ACT: Decision of the European Parliament and the Council

CONTENT: Under the terms and conditions of the Schengen Agreement (encapsulated in Regulation 539/2001), visas issued by one Schengen Member State are deemed valid for crossing the external borders of another Schengen Member State, both for short stay and transitory purposes. In addition, the current Schengen provisions foresee a system of mutual recognition of long-term visas and residence permits issued by Member States complying with the Schengen acquis.

Since the accession of the new Member States on 1 May 2004, a number of gaps in applying the provisions outlined above have arisen, which require urgent attention and which equally apply to the issuing of visas by Switzerland and Liechtenstein. It is these gaps, which the Commission is trying to plug, and which explains the Commission’s need to present the attached proposal for a Decision. 

To put it into context, prior to becoming new EU Member States, it was agreed that the acceding countries would apply the so-called ‘Schengen two phase process’. This process, set out in the Act of Accession, states that from the moment of accession, the new Member States shall apply the provisions of the Schengen Agreement as outlined in Regulation 539/2001, - whilst simultaneously issuing their own national visas until such a time that an EU Council Decision authorising their full integration into the Schengen area has been agreed upon. 

The existing, compromise solution, gives rise to a number of legal uncertainties. It does not, for example, foresee the equivalence between residence permits and visas. The result being that new Member States are obliged to issue national visas for entry into and transit through their territory to third country national, even if the persons concerned are holders of a Schengen residence permit or visa – or else are holders of national long term visas issued by a Schengen state. For many new Member States, this places a considerable administrative burden on their embassies and consular services. Further, given that persons holding a Schengen visa, are subject to rigorous controls by the Schengen Member State prior to the issuance of their visa, all relevant security concerns have, effectively, already been addressed.

The complexity of the current situation is particularly pertinent to nationals of both Liechtenstein and Switzerland, who for geographic reasons, are adversely affected by the need for transit visas. The result being that Swiss and Liechtenstein nationals need to apply for a visa when transiting the territories of the new EU Member States. This becomes particularly problematic for holiday makers who often just need to transit the territory of a new Member State, without necessarily wishing to stay in that territory, but who nevertheless need to apply for visas. According to a survey conducted in 2003 by Switzerland’s Central Register of Foreign Nationals, 514 250 persons were affected by the transit visa requirements, at the height of the holiday period.

In order to address this issue, the Swiss authorities are currently adopting a unilateral recognition of resident permits whereby holders of residence permits issued by a European Union Member State are exempted from visa requirements. It covers visas for short stay and transit purposes. Looking to the longer term, the EU and Switzerland are in the process of ratifying an Agreement on the Schengen acquis. The Commission acknowledges, however, that this will take some time to come into force and an interim solution needs to be found. Hence, the presentation of two related Decisions. 

The first proposal concerns this Decision, which is specifically addressed to Switzerland and Liechtenstein.  The second proposal is for a Council Decision (2005/0158 COD), addressed to the new Member States, (here meaning: the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia).

The proposed Decision addressed to Switzerland and Liechtenstein, seeks to simplify procedures for controlling persons at external borders. It aims to do so by setting up a system, for a transitional period only, whereby new Member States agree to adopt common rules, which unilaterally recognise visa documents as equivalent to their national visas. The Commission is also proposing a simplified regime for the control of persons at the external borders based on the principle of unilateral equivalence. Specifically speaking the Decision proposes the following provisions:

-         A simplified regime for the control of persons at the external borders based on unilateral recognition of residence permits issued by Switzerland and Liechtenstein will apply. It will be limited to the issuing of visas for transit purposes only, without affecting the possibility of Member States to issue visas for short-term stay.

-         The new EU Member States may optionally apply the same approach when dealing with nationals from Switzerland and Liechtenstein, until an implementing Decision has been approved, which fully integrates them into the Schengen area.