The individual bilateral agreements by Switzerland with the ten EU member states which joined in 2004 follow the Memorandum of Understanding (MoU) signed between Switzerland and the Council of the European Union in February 2006.

This MoU contained the overall conditions and modalities agreed between Switzerland and the EU for a financial contribution by Switzerland as a compensatory measure to the latter’s participation in the economic and social dimensions of the EU internal market.

In an official ceremony in Berne, attended by Ministers from the 'new' EU Member States, Maltese Foreign Minister Michael Frendo signed a Bilateral Framework Agreement with the Swiss Federal Council through which Malta will receive the sum of 2,994,000 Swiss Francs, equivalent to EUR1.8 million, to be used for projects in the health sector.

Frendo announced of the agreement that:

“These funds, coming from Switzerland, which has a special relationship with the European Union, are an expression of solidarity and partnership and of a commitment to greater cohesion in Europe."

The Swiss government obtained approval to disburse these funds in a referendum held in accordance with that country’s tradition of direct democracy.

Malta proposed the area of Human and Social Development covering the Health sector, namely the modernisation of hospitals, reform of health insurance systems and preventive measures, to be aided through the Swiss contribution.

Other EU countries that have benefited from the Swiss contribution, together with Malta, are Poland, Hungary, the Czech Republic, Lithuania, Slovakia, Latvia, Estonia, Slovenia, and Cyprus.