\n\tBy Bastian Benrath-Wright, Levin Stamm and Allegra Catelli<\/p>\n
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\n\tAt its headquarters in Basel, Swiss drugmaker Roche Holding AG employs workers from more than 100 countries. In less than a month, the access to international talent that it\u2019s long enjoyed could come under serious threat.<\/p>\n
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\n\tOn June 14, Switzerland will vote on a plan to cap the population at 10 million, requiring\u00a0 a severe reduction in immigration. That would affect businesses from manufacturers to banks to tech firms, who have in recent decades brought hundreds of thousands of people into the country to fill jobs. Roche\u2019s chairman, Severin Schwan, has called it \u201cdangerous for our society and for the economy.\u201d<\/p>\n
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\n\t\u201cSwitzerland cannot meet the need for bright minds on its own,\u201d he told shareholders earlier this year. \u201cIt\u2019s vital to keep the borders open for top talent.\u201d<\/p>\n
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\n\tRoche\u2019s international workforce is a story repeated across the country. In Zurich, Google employs more than 5,000 people from 85 countries. On the shores of Lake Geneva, Logitech International SA boss Hanneke Faber stresses the importance of international talent from the Swiss Federal Institute of Technology, which she calls the \u201cMIT of Europe.\u201d<\/p>\n
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\n\tBut as Switzerland\u2019s high wages and quality of life make it attractive for foreign workers, the population has surged above 9.1 million people. Right-wing campaigners say the situation is out of control, and voters are getting on board. Polls show the electorate split down the middle, giving the proposal a realistic chance of passing.<\/p>\n
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\n\tUnlike anti-immigration campaigns seen in other European countries, the Swiss push doesn\u2019t just target asylum seekers and refugees. It would also, if needed, bar high-earning bankers, scientists and engineers from entering the country.<\/p>\n
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\tThe extreme idea has alarmed executives in Switzerland’s impressive roster of blue-chip firms. Novartis AG says reliable access to international talent is critical for businesses. For Nestle SA, the \u201cfree movement of skilled professionals from diverse backgrounds helps ensure that the country remains innovative and prosperous.\u201d\u00a0<\/p>\n
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\n\tThe danger is not only a smaller labor pool but a rupture with the European Union, Switzerland\u2019s biggest export market. The bloc\u2019s principle of free movement underpins wider economic accords that ensure Swiss firms\u2019 access to a $21 trillion economy and its 450 million consumers. Under the population proposal, Switzerland could ultimately have to terminate free movement agreements.<\/p>\n
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\n\tHowever, warnings about long-term economic fallout appear to be struggling to get through to voters who see long lines at apartment viewings, expensive rents and crowded trains that are affecting them right now. The cap appears to offer an easy fix, with a message that there\u2019s just no more space for newcomers.\u00a0<\/p>\n
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\n\tIt\u2019s even got traction among those who work for companies which benefit from foreign talent. In private conversations, executives at international banks say they can see some merit in the idea as a response to strains in areas like housing.<\/p>\n
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\n\tThe so-called \u201cSustainability Initiative\u201d is championed by the right-wing Swiss People\u2019s Party, or SVP. Thomas Matter, a Zurich lawmaker leading the campaign, said the problem is immigrants who in his view don\u2019t contribute to the economy.\u00a0<\/p>\n
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\tWith a limit on arrivals, \u201cthere will be competition\u201d over who gets to bring in people, Matter said in an interview. \u201cCompanies will push to ensure that these are actually workers \u2014 who will benefit Switzerland \u2014 and not asylum abusers.\u201d\u00a0<\/p>\n
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\n\tHis argument is resonating in a country where keeping the gates shut has long been popular. Switzerland\u2019s national identity is tied to neutrality\u00a0 and having no limits on its sovereignty. The country never joined the EU, for example, despite being surrounded by the bloc.<\/p>\n
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\n\tAnd becoming a citizen isn\u2019t simple either. The process \u2013 if not married to a Swiss citizen \u2013 only starts after living in Switzerland for 10 years and can then take an additional number of years to complete. It involves language proficiency and tests on history and politics, as well as proving to local and national officials that you are \u201csuccessfully integrated and are familiar with the Swiss way of life.\u201d Many people take citizenship preparation courses.<\/p>\n
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\n\tThe proposal on the ballot says that the population can\u2019t exceed 10 million before 2050. Calculations based on demographic trends suggest that would mean net migration can\u2019t exceed about 30,000 per year. That\u2019s less than half the average over the past decade.<\/p>\n
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\tUnder the plan, the government would need to start limiting immigration once the population reaches 9.5 million, which could happen in just four years.\u00a0<\/p>\n
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\n\tVoter approval would mark another step forward for right-wing causes in Europe after the recent success of Nigel Farage\u2019s Reform UK party in local elections there. In Germany, polls suggest the nationalist Alternative for Germany is on track to take over its first state government later this year.<\/p>\n
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\n\tFor Switzerland\u2019s SVP, whose ascent began in the early 1990s with derailing the government\u2019s bid to join the European Economic Area, it would be a milestone moment in two long-running priorities: limiting ties with the EU and tightening immigration controls.<\/p>\n
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\n\tThe decisive question is whether Swiss voters will be swayed by the risk of a long-term fallout for the economy.<\/p>\n
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\n\tIn a report this month, Switzerland\u2019s Demografik think tank estimated that the population cap will curb output by as much as 12% through the end of the century. It said healthcare, hospitality, IT and construction would be particularly hit with labor shortages.<\/p>\n
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\n\tThe government\u2019s economic agency has said Swiss firms \u201cdepend heavily\u201d on workers from abroad, and the influx of skilled people from the EU helped companies and boosted productivity growth.<\/p>\n
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\n\tPatrik Lang, chief investment strategist at Geneva-based Global Gate Asset Management, said that instead of a short-term catastrophe, effects would \u201cslowly creep in over the next 10, 20 years, deteriorating the attractiveness of the Swiss economy.\u201d<\/p>\n
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\n\t\u201cWith such an initiative, you shoot yourself in the foot,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
By Bastian Benrath-Wright, Levin Stamm and Allegra Catelli \u00a0
At its headquarters in Basel, Swiss drugmaker…\n","protected":false},"author":2,"featured_media":72694,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[38501,38500,38502,38498,38497,19644,199,206,6363,134,6364,5635,38499,32211,17],"class_list":["post-72693","post","type-post","status-publish","format-standard","has-post-thumbnail","category-switzerland","tag-eu-relations","tag-foreign-workers","tag-free-movement","tag-google-zurich","tag-immigration-cap","tag-labour-shortages","tag-nestle","tag-novartis","tag-population-cap","tag-roche","tag-svp","tag-swiss-economy","tag-swiss-peoplersquos-party","tag-swiss-referendum","tag-switzerland"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116645214549534284","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/72693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=72693"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/72693\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/72694"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=72693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=72693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=72693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}