Will this Island of Wealth close the door to Foreigners?
The spotless train from Lausanne to Geneva coasts past a glistening Lac Léman and snow-capped mountains in the distance. Anyone looking out at the wooden-beamed houses scattered across the hillside would be puzzled by the recurring debate over population density and immigration.
Inside the train, though, the crowded carriages of rush hour and din of chatter in numerous languages tell a different story.
It is to some a sign that Switzerland is rapidly becoming overpopulated.
“With between 70,000 and 80,000 more people coming into the country every year, that means 56,000 more cars every year and 40,000 more homes to build. That has an impact on the environment,” says Anita Messere, spokeswoman for the Ecopop environmental campaign group.
The group obtained the 100,000 signatures necessary to hold a national referendum to reduce net immigration to just 16,000 people per year.
Last month, 74 per cent voted against the cuts. Even the far-right Swiss People’s Party (SVP), which proposed similar immigration caps 10 months ago, described Ecopop’s proposal as excessive.
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Still, many fear the alpine nation prized for its lakes, rivers and vast green spaces is being swallowed by urban sprawl, and that rising immigration is putting pressure on infrastructure and the environment.
“All of our efforts at saving energy, making car fuel cleaner and housing insulation more efficient — all of that has been wiped out by population growth,” Messere says.
For the federal government — which opposed the initiative — the referendum’s defeat provides only momentary relief.
It has just over two years to implement changes to immigration law proposed by the SVP in the last referendum. In February, 50.3 per cent voted in favour of reintroducing limits to the number of immigrants eligible to live and work in Switzerland. It puts the government in an awkward position.
Though refugees and asylum seekers would not be affected and the exact number allowed into the country is yet to be determined, quotas would violate existing bilateral accords with the European Union, which guarantee the free movement of EU and Swiss citizens. (That is, as long as the workers have contracts or are self-employed.)
“We are at an impasse. We have to honour the decision the people made in February and accept restrictions on the movement of people,” says Marco Taddei of the Swiss Employers Union.
“On the one hand, the Swiss people are demanding that the country close itself off. On the other hand, our bilateral agreements with the EU require we become more open.”
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Swiss businesses fear the coming restrictions will lead to shortages of labour and valuable skills in a bustling economy that depends on foreign workers.
The Swiss population has almost doubled since the 1950s to over eight million, largely due to immigration. Almost a quarter of the population is foreign born — twice the proportions of Britain, France or Germany.
Across Europe, anti-immigrant sentiment is on the rise. Far-right parties won an unprecedented number of seats in last summer’s European Parliament elections, including France’s National Front which also won its first ever Senate seats in September.
Harried by the increasingly popular UK Independence Party, British Prime Minister David Cameron vowed last week to restrict social assistance to European newcomers and deport them if they don’t find work within six months. Even liberal Scandinavian countries have introduced tougher immigration rules, with Norway deporting a record number of immigrants this year.
Switzerland is something of an island of prosperity in the middle of the continent, yet resolutely outside the European Union. Swiss wages are higher and unemployment is lower than in any of its neighbours.
Most of Switzerland’s immigrants are Europeans, either moving in or commuting to well-paying Swiss jobs from nearby French, Italian and German towns.
While residents and conservative groups see open borders as a potential nuisance, others say the country’s wealth, and its financial and academic sectors depend on them.
Universities like École Polytechnique Fédérale de Lausanne, for example, which describes itself as “Europe’s most cosmopolitan technical university,” would be hard hit by immigration restrictions. Its students, staff and faculty hail from more than 120 countries.
Philippe Gillet, its vice-president for academic affairs, says the two referendums and charged debate on immigration have sparked fears among those hoping to stay in the country. “Right now our students are worried, especially our foreign students, because they feel threatened,” he says.
“Take Britain or the United States. You can see the impact of immigration and in particular skilled immigration plays an enormous role in the country’s economic growth and the general well-being of the country.”
An OECD study revealed earlier this year that Switzerland is among the top developed nations benefiting from immigration, adding the equivalent of 2 per cent to GDP.
While businesses feel they’ve dodged a bullet in the failed Ecopop proposal, they are bracing themselves for last February’s immigration caps to come into force.
“Close to 50 per cent of people working in the country’s construction, restaurant and hotel sectors come from the EU,” says Taddei. “And independent of (November’s) vote, we know already that the results of February’s referendum will have dramatic and negative effects on the Swiss economy.”
The Swiss government in Bern hopes to renegotiate its agreements with the EU, Switzerland’s biggest trading partner.
But EU spokeswoman Maja Kocijancic said that with the exception of discussing “practical problems,” the European Union has already rejected the Swiss request for renegotiation.
“It is not only an important economic factor and of important benefit for the personal freedom of citizens, but also one of the cornerstones of EU-Swiss bilateral relations. This position has not changed.”
Until talks resume, it would seem that Bern is caught between the rock of direct democracy and a European hard place.