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IMMIGRATION

Switzerland pledges €1.1 billion over 10 years to EU in ‘cohesion’ funds

The Swiss Federal Council has pledged, as part of continuing negotiations with the EU, funds to revive struggling EU economies and assist with migration flows.

Published: 2 October 2018 15:27 CEST
Switzerland pledges €1.1 billion over 10 years to EU in 'cohesion' funds
File photo: Depositphotos

The new pledge from Switzerland, which is not part of the EU but allows free movement as part of a bilateral package of agreements from 1999, will be used in five specific areas.

“To promote economic growth and social partnership, and reduce unemployment, especially among young people; manage migration flows, promote integration and strengthen public security; protect the environment and address climate change; strengthen health and social security systems and promote civic engagement and transparency,” states a Swiss government summary. 

The 1.3 billion Swiss francs (€1.14 billion), an additional to Switzerland's similar existing contribution to “EU enlargement funds,” will be used to cover the costs of vocational skills training courses but also to allow for “Swiss expertise” to provide assistance in certain situations.

The “contribution will also enable Switzerland to strengthen and deepen its bilateral relations with partner countries and the EU as a whole – an objective whose importance the Federal Council has repeatedly emphasised,” states the Swiss government on September 28th.

Relations between the Swiss government and the EU are governed by an array of bilateral contracts but the partnership turned sour after Swiss voters in 2014 approved a popular initiative calling for quotas on immigration.

The decision to increase the country's funding to the EU comes after the Federal Council and cantons widely agreed to strengthen relations during talks held over the summer of 2018.  

READ ALSO: Swiss-EU deal: Bern may back down over controls on foreign workers

Marginal Swiss political parties have called for Switzerland to renegotiate its current agreement to curb EU migration, although that has not resulted in a 'Swiss exit'. The wider political consensus seems to be for a maintenance of the status quo.

“Following talks held this summer with the social partners and the cantons, the Federal Council concluded that opinions differed widely and there was no consensus in Switzerland which would warrant changing the current negotiating position,” adds the government's statement.

Ideologically, the Swiss government argues that “in order to safeguard its prosperity in the long term, Switzerland depends on a secure, stable and prosperous Europe. It therefore has a vital interest in continuing to use its expertise to strengthen European cohesion and improve the management of migration flows.” 

The Swiss government has also adopted a series of measures that will allow it to bilaterally implement new asylum procedures with several EU member states, adds the communiqué. 

READ MORE: Nearly 70,000 EU/EEA citizens migrated to Switzerland for work in the first half of 2018

 

 

WORKING IN SWITZERLAND

Switzerland sees record high immigration from European countries

Switzerland has seen record immigration from European countries and a new report reveals a correlation with the country's low unemployment rate.

Published: 25 June 2024 11:28 CEST
Switzerland sees record high immigration from European countries

Lots of data indicates that Switzerland needs foreign workers to fill job vacancies.

Now a report from the State Secretariat for Economic Affairs (SECO) confirms the importance that employees from the European Union and EFTA (Norway, Iceland, and Liechtenstein) have had for Switzerland’s labour market and economy in general. 

That is why “demand for foreign labour was strong in Switzerland in 2023,” SECO said in its annual report published on Monday, which assessed the impact that the Free Movement of Persons agreement (FMPA) has had on the country’s employment.

In 2023, 68,000 people from EU and EFTA countries came to work in Switzerland, according to SECO, driven by “employment growth that has significantly exceeded the EU average.”

Why does Switzerland need EU / EFTA workers?

Simply put, they are needed for the country’s economy to function optimally.

As SECO pointed out, while the number of pensioners is growing (due mostly to Switzerland’s exceptionally high life expectancy), “Swiss working-age population has experienced only slow growth over the past 20 years.”

“The country’s economic growth is not possible without immigration,” said Simon Wey, chief economist at the Swiss Employers’ Union. “We need foreign labour if we want to maintain our level of prosperity.”  

READ ALSO: How EU immigrant workers have become ‘essential’ for Switzerland 

In what sectors is the need for these workers the highest?

“A large number of people from the EU coming to work in Switzerland are highly qualified and are employed in demanding activities in high-growth branches of the service sector, such as the branch of special, scientific and technical activities, that of information and communication or the health sector;” SECO’s report said.

But the Swiss economy also recruits EU nationals as low-skilled labour, particularly in the hotel and catering industry, as well as construction and industry.

Why are only people from the EU / EFTA states recruited?

The reason is that, unlike nationals of third countries, people from the EU / EFTA have an almost unlimited access to the Swiss employment market, thanks precisely to the FMPA. 

Also, those coming from the neighbour countries (as most of Switzerland’s foreign labour force does), have the required language skills to easily integrate into the workforce in language-appropriate Swiss regions.
 

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