Switzerland and the European Union have reached a significant compromise on immigration, paving the way for a new bilateral agreement.

This development addresses a major point of contention by introducing a revised safeguard clause, which requires EU approval or arbitration for implementation.

In exchange, Switzerland will treat EU students at its universities as domestic students, maintaining stable tuition fees and student numbers.

Additionally, Switzerland is expected to increase its annual cohesion payments to poorer EU countries from 130 million to 350 million Swiss francs.

These payments, previously voluntary, are now seen as a necessary contribution for Switzerland's partial integration into the EU's single market.

The Swiss Federal Council is set to decide on the agreement before Christmas, with the legal text to be finalized later.

This agreement is seen as a crucial step in continuing Switzerland's unique bilateral relationship with the EU, avoiding the pitfalls of a more isolated approach.