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Switzerland will hold a vote on a radical proposal to cap the country’s population at 10mn people, a move that could threaten crucial agreements with the EU and limit companies’ access to skilled foreign workers.
The initiative, which attracted the required 100,000 signatures to force a national poll under the European nation’s direct democracy system, is backed by the powerful right-wing Swiss People’s Party (SVP) and will be voted on in mid-June, the government said on Wednesday.
It seeks to limit Switzerland’s permanent resident population to no more than 10mn people before 2050, and to trigger measures if the population exceeds 9.5mn before then. These would include limiting numbers in the areas of asylum and family reunification.
The country’s current population is 9.1mn people and Switzerland has a high level of immigration, as people are drawn by its high wages and quality of life. It has one of the largest proportions of foreign residents in Europe, at 27 per cent according to official figures, and its population has grown some 25 per cent since 2000, much higher than most neighbouring countries.
The Swiss referendum comes amid a broader surge in public unease over high immigration across Europe, where concerns about pressure on housing, public services and labour markets have fuelled support for far-right parties championing stricter migration controls in multiple countries.
Domestic support for the vote is high, with rising frustration at housing shortages and what proponents have decried as “unchecked immigration”.
The SVP, the country’s largest party, argues the “population explosion” is overwhelming infrastructure, destroying the environment and driving rents even higher.
“After the influx of over 180,000 people in a single year, action must finally be taken,” said the party, which is campaigning actively for the “sustainability initiative”.
A recent poll by research group LeeWas of more than 10,000 people found 48 per cent of respondents were supportive of the measure, indicating a tight vote.
If the population exceeds 10mn, the government would have to use every available policy tool to reduce it under the proposal, including renegotiating or terminating international agreements that drive population growth, such as the free movement of people between Switzerland and the EU.
However, the initiative does not spell out a detailed quota or migration-management system — it only imposes a hard cap, which would translate into a near-complete stop on additional workforce immigration once reached, experts warned.
If the initiative receives a ‘yes’ vote, it could have far-reaching consequences for the country’s globally focused companies, from consumer goods giant Nestlé to pharmaceuticals groups Novartis and Roche, which rely heavily on foreign talent.
Business lobby group Economiesuisse called it a “chaos initiative” and said Swiss companies rely on workers from the EU and Europe Free Trade Association (EFTA) area to fill jobs. Without them, companies might relocate abroad, lose tax revenue, see innovation slow and service levels fall, it warned.
Economiesuisse’s research paper on the proposal highlights that EU/EFTA workers contribute disproportionately to the Swiss pension system relative to benefits drawn, meaning curbing immigration would also strain social insurance finances.
It would also potentially derail a carefully negotiated new deal agreed last year between Bern and Brussels to keep and improve Switzerland’s access to the EU’s single market.
The Swiss federal council — the country’s executive branch — as well as Parliament have both recommended rejecting the vote, warning it would endanger economic growth as well as derail key treaties. There is also the risk that Switzerland might no longer participate in the Schengen and Dublin systems, the council warned.