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IMMIGRATION

EXPLAINED: Why Switzerland’s EU free movement referendum could impact much more than immigration

On Sunday September 27th, the Swiss will vote on whether to curb immigration from the European Union. But if the proposal is given the green light at the polls, it will greatly impact Switzerland’s relations with the EU.

EXPLAINED: Why Switzerland's EU free movement referendum could impact much more than immigration
Swiss-EU relations are at stake in the upcoming referendum. Photo by AFP

The initiative seeks to limit the number of foreigners coming into the country from the EU by allowing Switzerland to regulate its immigration policy autonomously, and not based on treaties with the European Union.

However, there is much more at stake in this referendum than just immigration.

Though surrounded by the EU countries, Switzerland is not a member of the bloc.

However, in the past the government has negotiated a series of bilateral treaties with Brussels, which give Swiss businesses a much-needed direct access to the European market.

What are the treaties that Switzerland has with the EU?

Besides the Free Movement of Persons agreement (AFMP), which allows EU nationals to work in Switzerland, and which the ‘Limitation Initiative’ seeks to nullify, there are also other treaties, which are crucial for the country’s economy. 

Among them are agreements on free trade, exchange of information, agriculture, research, environment, police cooperation and asylum coordination, civil aviation, road transport, tourism, education, and pensions.

What would happen if the immigration proposal passes?

Switzerland would lose out on some of these deals with the EU.

All the agreements signed in the same package as the AFMP, known as Bilaterals I, which include elimination of technical barriers to trade, agriculture, research, air and land transport, as well as the law which sets basis for international competitive bidding for certain public contracts, “would automatically cease to apply”, according to the government. 

This is called a ‘guillotine clause’.

Also, Switzerland would be prohibited from “entering into any new international obligations that grant freedom of movement to foreign citizens”.

READ MORE: How will Switzerland's autumn referendums turn out?

What would be the next step?

If the initiative is accepted, the Federal Council will have to negotiate a way of terminating the AFMP with the EU within 12 months.

If these negotiations fail, the government must unilaterally terminate the AFMP within a further 30 days.

When that happens, the immigration from the EU will be restricted and six bilateral agreements will be cancelled.

Has a similar situation happened before?

In 2019, the Swiss voters had to decide whether the country should tighten its gun laws to comply with stricter rules required by the European Union.

Brussels threatened to exclude Switzerland from the Schengen zone, along with the tourism revenue and police and judicial support that the membership in the open-border zone brings, if the proposal was rejected at the polls.

However, this “worst-case scenario” was averted, as 64 percent of voters accepted EU regulations.


 

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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.

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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