Switzerland is set to vote on a proposal to cap its population, which has grown by 10% over the past decade, reaching over 9.1 million. This referendum is a response to demographic shifts, including a higher number of residents over 65 than under 20, and declining birth rates and net migration.
If approved, the cap would lead to stricter immigration measures, particularly affecting asylum and family reunification programs, and could jeopardize Switzerland's freedom of movement agreement with the EU. The right-wing Swiss People's Party (SVP) advocates for the cap, citing concerns over public services and the labor market.
However, major companies and trade organizations argue that such restrictions could harm Switzerland's economic competitiveness and innovation, as the country relies heavily on skilled foreign workers.
Economiesuisse's Chief Economist, Rudolf Minsch, emphasized the importance of maintaining strong economic ties with Europe, warning that rigid immigration caps could undermine bilateral agreements crucial for the Swiss economy. Business leaders, including Nestle's CEO, have expressed the need to preserve Switzerland's attractive conditions for investment.
The outcome of this referendum could have far-reaching implications for Switzerland's labor market, economic growth, and its relationship with the EU, echoing lessons learned from the UK's exit from the EU regarding labor market disruptions