Swiss president says deal with EU possible this year despite immigration hurdle

BERN (Reuters) - The Swiss president voiced optimism on Monday that a deal with the European Union could still be reached by year-end on updating their relationship, despite a lack of agreement on issues like immigration.

"We have already made very good progress in certain areas, particularly on institutional issues and state aid," Viola Amherd told reporters in Bern. "In other areas, especially immigration, positions need to converge further."

Amherd has previously said that Switzerland is looking to wrap up a deal with the EU this year, when her one-year term also comes to an end. "Personally, I remain optimistic that we will manage," she added.

Previous attempts to reach a deal foundered over concerns about Swiss sovereignty. One of the remaining challenges is domestic opposition from the leading right-wing Swiss People's Party (SVP), and Amherd admitted talks with them were "almost impossible".

"We have other possibilities inside Switzerland to guarantee that we don't want to reduce salaries and that we don’t want immigration without control. I am persuaded we will find a solution," she said.

(Reporting by Emma Farge; editing by Matthias Williams and Miranda Murray)