Swiss set to reintroduce immigration quota with EU

Swiss voters have narrowly backed proposals to reintroduce immigration quotas with the EU, Swiss television reported — a result that calls into question bilateral accords with the EU and could irk multinational companies.

While neutral Switzerland is not a member of the EU, its immigration policy is based on free movement of people to and from the EU, as well as allowing in a restricted number of non-EU citizens.

The vote, which comes 12 years after an agreement with the EU on free movement of people, could hurt an economy dependent on foreign professionals by increasing red tape and jeopardising bilateral accords.

In a nail-biting vote, 50.3% backed the so-called Stop mass immigration initiative, which also won the required majority approval in more than half of Swiss cantons or regions, Swiss television said.

The outcome obliges the government to make the initiative, spearheaded by the right-wing Swiss People’s Party, into law.

It reflects growing concern among the Swiss population that immigrants are eroding the nation’s distinctive Alpine culture and contributing to rising rents, crowded transport, and more crime.

Opponents of the move say it could exacerbate a shortage of skilled workers in Switzerland, the home of Roche, Novartis, UBS, Nestle, and other multinationals.

“Explanatory and constructive talks with the EU are needed urgently,” the Swiss Banking Association tweeted after the result.

Two years ago Switzerland introduced quotas for immigrants from eight central and eastern European nations, a move that drew heavy criticism from the EU. Ahead of Sunday’s referendum, business groups warned that many of the 80,000 people who moved to Switzerland last year are vital for the country’s economy, and curtailing immigration further could cost Swiss citizens’ jobs too.