The move represents a huge step towards closer relations with the EU for Switzerland, and was hailed as "undoubtedly a contribution at some stage in the future to Swiss participation in the EU" by EC President, Romano Prodi.

Although Swiss President, Joseph Deiss was reportedly more guarded on the topic of Switzerland joining the EU at some future point, he also observed that:

"We might not be at the very centre of Europe but we're definitely at the heart of Europe. We're beginning a new era of relations between our two entities."

However, Mr Deiss warned that the Swiss may not be ready to participate in the EU's Savings Tax Directive when it commences in January 2005, as intended, due to the fact that the new laws must go through a number of stages domestically in order to be ratified, which may include a referendum.

According to recent reports in the Swiss media, right wing parties such as the Swiss People's Party are opposed to the plans to cooperate more closely with Brussels on security and other matters, and are likely to attempt to force a referendum on the treaties.

Speaking to Swissinfo earlier this week, Foreign Minister, Micheline Calmy-Rey confirmed that:

"We are very conscious of this problem. The referendum is a weapon - or perhaps I should rephrase that and say an instrument - in the hands of the Swiss people who want to achieve certain objectives."

She went on to add that: "I always have to explain the Swiss referendum process to my EU colleagues and I have to tell them that there is nothing I can do about it. But I will do my utmost to ensure that the cabinet pushes for the right result, and I am sure that we will succeed."