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Economy · Immigration · Referendum · Switzerland
Swiss voters are deciding on a populist Swiss People’s Party initiative to cap the nation's population at 10 million by 2050, a move opposed by the federal government and business leaders who warn of significant economic repercussions and strained ties with the European Union.
The proposal, culminating in a national referendum, aims to curb the influx of expatriates, primarily from the EU, which supporters claim strains Swiss infrastructure and resources. Critics, including EconomieSuisse, argue that Switzerland relies heavily on foreign labor and expertise in critical sectors like healthcare, finance, pharmaceuticals, and technology.
Since easing EU border restrictions in 2002, Switzerland's population has grown by 23% to 9.1 million, while economic output increased by 24% over the same period, according to government data. A "yes" vote mandates government action to enforce the cap, potentially forcing Switzerland to abandon its free movement agreement with the EU, which is its largest trading partner.
Experts like Rene Schwok from the University of Geneva state this will cloud foreign investment prospects.
