Swiss households would pay higher taxes if SVP’s bid to cap immigration becomes law, and government says the immigration-capping proposal has some merits— these are among the news that The Local reported this week. You can catch up on everything in this weekly roundup.
Swiss households would pay higher taxes if SVP’s bid to curb immigration becomes law
According to Daniel Lampart, chief economist at the Federation of Trade Unions, if the ‘No to 10 million’ initiative becomes law, Swiss taxpayers could be hit hard in the pockets – to the tune of 635 francs a year.
He pointed out that as Switzerland’s birth rate is record-low, and more workers are approaching retirement, fewer employees will finance pension plans for a growing number of elderly people.
Therefore, the population would have to pay higher taxes to compensate for this loss of revenue.
READ MORE: Swiss households to pay ‘635 francs more a year’ if anti-immigration proposal wins
Swiss government says the immigration-capping proposal has some merits
Switzerland’s government has outlined not only the downsides it sees if the ‘No to 10 million’ initiative passes in a referendum in June, but also some potentially positive aspects of the proposal.
Among the negative effects of the initiative are labout shortages, less contributions to the state pension scheme, and strained relations with the EU.
On the positive side, the report mentions less pressure on the housing market as well as the environment, along with lower spending on social assistance.
READ MORE: Swiss government spells out the good and the bad of the ‘No to 10 million’ proposal
A train between Switzerland and the UK is on the right track
The long-planned direct rail route between Switzerland and London has moved one step closer to becoming reality after two international rail companies signed off on an ‘important milestone”.
Concretely, the SBB and France’s SNCF Voyageurs signed a ‘memorandum of understanding’ with Eurostar to establish a direct connection between Swiss cities and London.
“This marks an important milestone in the long-term planning for establishing a new direct connection to the United Kingdom,” the SBB said
READ MORE: New Switzerland to London rail link moves step closer
Swiss job market could be short of nearly quarter million employees in the future
A new study analysed different scenarios to assess how significant the shortage of qualified employees could be with the approval of the ‘No to 10 million’ initiative in a referendum on June 14th.
Researchers reported that Switzerland’s labour supply “would drop drastically,” especially if the low birth and high retirement rates continue.
But the exact number of job vacancies – ranging from 87,000 to 245,000 – would depend on when the new law would be introduced.
READ MORE: How bad would worker shortages be if Switzerland backs anti-immigration proposal?
Retirees will get higher pensions in 2026
Thanks to sound investments, 2025 was a lucrative year for second-pillar pensions – including for foreign workers employed in Switzerland.
Pensions reached an average coverage rate of 117.1 percent, compared to 114.7 percent the previous year.
As a result, “insured persons benefit [in 2026] from an increase in interest on their assets, with an average rate of 4.33 percent,” the High Supervisory Commission for Occupational Pensions (SCOP)
READ MORE: Why 2026 is a good year for retirees in Switzerland
New book explains the secret of Switzerland’s prosperity
In a book titled ‘Why Switzerland Became Rich: Facts and Myths of an Economic Miracle,’ its author, Swiss historian Markus Somm, outlines the factors that have contributed to the country’s impressive wealth.
He outlines – in the context of Switzerland’s history – factors such as neutrality, geography, and immigration as principal reasons for Switzerland’s wealth, which has grown over centuries.
