Switzerland will vote this summer on a proposal from the far-right Swiss People’s party (SVP) to limit the country’s population to 10 million, a move that would threaten key agreements with the EU and, opponents say, cripple the economy.
The government said on Wednesday the referendum on the SVP’s “No to a 10 million Switzerland” initiative, which is strongly opposed by both chambers of parliament and the business and financial services community, would be held on 10 June.
The initiative would oblige the Swiss government and parliament to act if the country’s permanent population, currently 9.1 million, exceeds 9.5 million by denying entrance to newcomers, including asylum seekers and the families of foreign residents.
If the population reaches 10 million, further restrictions would come into force, and if numbers do not start to fall the government would be required to pull out of the free-movement agreement it has with the EU, by far its biggest export market.
Switzerland’s population has grown about five times faster than the average in surrounding EU member states over the past decade, as its economic success has attracted both low-skilled workers and highly paid corporate expats.
About 27% of Swiss residents are not citizens, according to government figures. The SVP, the country’s largest political party, says the “population explosion” is inflating rents and straining public infrastructure and services to breaking point.
The party, which has finished first in every election since 1999, has long campaigned against immigration, highlighting crimes committed by foreigners and posting images of bloody knives, hooded criminals, fists and frightened women.
The radical nationalist changes it frequently proposes, such as a 2016 proposal to automatically deport immigrants found guilty of even minor offences, and a 2020 plan to end free movement with the EU, have not generally fared so well.
Switzerland’s system of direct democracy allows citizens to propose so-called popular initiatives that are put to a plebiscite if they get 100,000 backers in 18 months. They are a long-favoured tool of the SVP, but only about 10% of popular initiatives pass.
However, a poll in December revealed broad support from 48% of voters for the “No to a 10 million Switzerland” initiative, reflecting deeply divided sentiment about how open the country wants and needs to be in a fast-changing world.
Opponents, including multinationals such as Roche, UBS and Nestlé, say the proposal would jeopardise the bilateral agreements with the EU, including a deal reached last year over single market access, on which much of Switzerland’s prosperity rests.
Economiesuisse, a leading business lobby, has described it as the “chaos initiative” and warned that many Swiss companies rely on EU and other European workers, without whom they will have to relocate abroad, hitting tax revenue and services.
Rival parties have said a close relationship with Europe is Switzerland’s only option: about half of all the country’s exports go to the EU. Employers’ associations have said the population will increase mainly through natural growth and longer life expectancy.
