Swiss contributions to EU likely to rise under new deal, reports say

ZURICH (Reuters) - Swiss financial contributions towards the European Union are set to rise significantly under a new deal to deepen bilateral trade relations being hammered out between Brussels and Bern, Swiss national broadcaster SRF reported on Wednesday.

Citing sources, SRF said Switzerland would likely end up paying around 350 million Swiss francs ($396 million) a year to support economic development in Eastern European countries, up from 130 million francs under the current arrangement.

The broadcaster noted the number could still change as the two sides strive to reach agreement before Christmas.

Neither the Swiss foreign ministry nor the European Commission immediately replied to requests for comment.

Diplomatic sources familiar with the matter have told Reuters Swiss contributions would likely rise, but note that negotiations are ongoing.

Last month, Swiss newspaper Neue Zuercher Zeitung said Switzerland's yearly contributions could be as much as 450 million euros ($472.50 million), similar to what Norway pays, citing calculations by CH Media and sources in Bern.

Via so-called "cohesion" payments, Switzerland has financed development projects in EU states since 2007 as part of a program to reduce economic inequality in the bloc.

The Swiss government has portrayed its EU payments as a voluntary act of solidarity rather than a fixed part of its agreements with the bloc.

Under the new deal, the EU wants the cohesion payments to become binding, SRF said.

($1 = 0.8834 Swiss francs)

($1 = 0.9524 euros)

(Reporting by Ariane Luthi; Editing by Dave Graham)