Swiss Voters Reject Strict Immigration Limits in Referendum

Dec. 1 (Bloomberg) — Swiss voters rejected a referendum to introduce strict immigration quotas, a step that would have risked choking off economic growth and souring foreign relations.

Voters turned down the initiative known as Ecopop by 74 percent to 26 percent, the government said yesterday. The measure “Halt Overpopulation — Preserve the Natural Environment” would have limited annual immigration to just 0.2 percent of the country’s permanent resident population. Polls had forecast the initiative’s rejection. Voters also opposed a measure requiring the Swiss central bank to hold a fixed portion of its assets in gold and one that would’ve abolished the tax privileges accorded to wealthy foreigners.

“The result is clear and the government takes note of it with satisfaction,” Justice Minister Simonetta Sommaruga said yesterday at a press conference in Bern. “Accepting Ecopop wouldn’t have solved any environmental problems, but would’ve created grave difficulties for our country.”

Nearly a quarter of Switzerland’s 8.1 million people aren’t citizens. The many newcomers, whose numbers ballooned in the decade after Switzerland adopted the European Union’s free movement of persons, have led to complaints about a lack of affordable housing and overcrowded public transport.

Economic Support

The government and all of Switzerland’s major political parties were against the Ecopop measure, which is significantly more stringent than “Stop Mass Immigration” referendum approved by voters in February. Immigration has proved a key support of economic growth, and the political parties argued Ecopop would prevent companies from hiring the skilled foreign workers they need and deal yet another blow to Switzerland’s already testy relations with the EU.

Immigration is a contentious topic in other countries as well. U.S. President Barack Obama last month gave a reprieve to undocumented immigrants, while British Prime Minister David Cameron has been at odds with his EU counterparts over immigration and has promised to hold a referendum on the U.K.’s EU membership by 2017 if he wins the next national election.

Under Ecopop, a net 16,000 newcomers would’ve been permitted to enter Switzerland each year. Asylum-seekers, Swiss citizens’ foreign spouses or adopted children, and specialists in the pharmaceutical or in the banking sector could have been affected by the new restrictions.

‘Some Pragmatism’

While February’s “Mass Immigration” initiative, which isn’t affected by yesterday’s Ecopop defeat, requires the enactment of quotas, it gives a three-year deadline and leaves it up to the government to set their level, taking the needs of businesses into account.

The overwhelming rejection of Ecocop is a sign to the government that “we want some flexibility, some pragmatism, we don’t want to burn our bridges,’” said Patrick Emmenegger, professor of comparative political economy and public policy at the University of St. Gallen.

Currently, there is no numerical upper limit for citizens of EU countries or on the husbands and wives of Swiss citizens. The government sets a quota on highly skilled workers from non- EU countries such as Canada, Japan or Australia each year.

“We’re really disappointed, but not really surprised,” said Andreas Thommen, head of the Ecopop committee, which argued the initiative would’ve preserved the environment and quality of life. “The shock of Feb. 9 also mobilized lots of our opponents.”

Skilled Immigrants

Skilled immigrants have played a prominent role in Swiss business for hundreds of years. Geneva’s tradition of watchmaking traces its origins to the arrival of Huguenots in the 16th century, while in 1839 two Polish immigrants joined forces to form the forerunner of Patek Philippe. Similarly, German immigrant Heinrich Nestle founded Nestle SA, the maker of Nespresso coffee, and Beirut-born Nicolas Hayek was the force behind Swatch Group AG.

More recently, Philipp Hildebrand, once president of central bank and now a vice president at asset manager BlackRock Inc., pointed out that the national soccer team is comprised chiefly of players whose parents came from abroad, including Bayern Munich midfielder Xherdan Shaqiri. “This plurality of backgrounds and footballing cultures has unequivocally strengthened Switzerland’s contribution to world football,” he wrote in June.

Even Christoph Blocher, vice president of the Swiss People’s Party that spearheaded the February immigration vote, said Ecopop went too far. “Ecopop is dangerous and would hurt our country,” the former justice minister told the newspaper Tages-Anzeiger on Oct. 31.

‘Significant Loss’

Had it passed, the initiative would have caused a “significant loss” to potential growth, Credit Suisse economist Sara Carnazzi Weber said.

Landlocked Switzerland has declined to join the EU, and its relations with the 28-country bloc are governed by a series accords covering a range of topics such as border control, electricity markets, scientific research and the free movement of persons. They contain a “guillotine” clause that will nullify all, if one is struck down. The EU said earlier this year it won’t re-negotiate the immigration provision.

“Immigration is high and that has provoked defensive reflexes,” said Michael Hermann, a senior lecturer at the University of Zurich. “It’s true that the country was more homogeneous and self-reflective decades ago — but these are changes that would’ve taken place anyway due to globalization.”

Voter turnout was 49 percent, the government said.

–With assistance from Albertina Torsoli and Giles Broom in Geneva.

To contact the reporter on this story: Catherine Bosley in Zurich at [e-mail] To contact the editors responsible for this story: Fergal O’Brien at [e-mail] Kevin Costelloe, Zoe Schneeweiss