Switzerland to vote in June on plan to cap population at 10 mn: Here's why

Swiss voters will decide in June whether to cap the country's population at 10 million, a move that could tighten immigration rules and even may strain Switzerland's key economic ties with the EU

Switzerland is set to hold a major national vote that could reshape its immigration rules and trade ties with Europe. In June, Swiss citizens will decide whether to support a proposal that aims to limit the country’s population growth by imposing strict curbs on immigration once certain thresholds are reached, Bloomberg reported.

 

The proposal comes from Swiss People’s Party (SVP) and has reached the referendum stage after supporters collected enough signatures under Switzerland’s direct democracy system. The government has confirmed that the vote on the initiative, titled “No to a 10 million Switzerland”, will take place in mid-June, The Guardian reported.

 

 

Although the plan is strongly opposed by the government, parliament and much of the business community, opinion polls suggest it still has significant public backing.

 

Why does Switzerland want to cap its population?

 

The proposal seeks to force government action if Switzerland’s permanent population -- currently around 9.1 million -- crosses 9.5 million. Under the plan, authorities would have to restrict immigration, including limiting entry for asylum seekers and family reunifications of foreign residents, The Guardian report said.

 

If the population reaches 10 million, even tougher controls would automatically come into effect. Supporters argue that the country is experiencing what they describe as a “population explosion” that is putting pressure on housing, infrastructure and public services.

 

Switzerland has seen rapid population growth over the past decade, expanding about five times faster than nearby EU countries. This increase has been driven largely by strong economic performance, high wages, and demand for both skilled professionals and lower-paid workers.

 

Currently, about 27 per cent of residents in Switzerland are foreign nationals -- a relatively high share compared with many other European countries.

 

Campaigners backing the proposal say that immigration has pushed up rents, worsened housing shortages and strained transport and public facilities.   

 

What are the implications on its economy?

 

The initiative has raised serious concerns among businesses and economists, who warn that tighter immigration rules could hurt Switzerland’s economy.

 

For decades, the country has relied on foreign workers to fill jobs across sectors, from finance and technology to healthcare and construction. Companies argue that restricting access to international talent could make it harder to sustain economic growth.

 

Economic pressures have also played a role in shaping public opinion. Some voters are feeling financially squeezed, which has fuelled support for stricter immigration measures.

 

GDP per capita has remained stagnant over the past three years, while real wages have fallen, according to Stefan Legge, a professor at the University of St Gallen. He said many people are financially worse off than they were three years ago, which often leads them to look for someone to hold responsible, Bloomberg reported.

 

How it threatens its crucial deal with the EU?

 

One of the most controversial aspects of the proposal is its potential impact on Switzerland’s relationship with the European Union.

 

If the population continues to rise despite restrictions, the initiative would require the Swiss government to withdraw from its free-movement agreement with the EU. This pact allows people to live and work freely between Switzerland and EU countries.

 

Ending the agreement could have wide-ranging consequences. Businesses warn it would reduce access to foreign talent and risk triggering the collapse of other linked treaties that allow Swiss companies to trade easily with the EU -- the country’s largest export market.