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Job boom creates Swiss immigration headache for EU trade talks

Release Date: 2024-11-26
Media: Reuters
Summary: Switzerland is grappling with a surge in immigration driven by its low-tax business model and economic success, which has become a politically sensitive issue. Since gaining access to the EU single market in 1999, Switzerland’s economy and job market have grown faster than its neighbors, resulting in rapid population growth from 7 million in 1995 to over 9 million today. This has fueled calls, particularly from the right-wing Swiss People's Party, to limit population growth, citing concerns about overwhelmed infrastructure and rising rents. The party aims to cap the population at 10 million by 2050, a figure Switzerland is on track to exceed much sooner.

The Swiss government is seeking to include a "protection clause" in its renewed negotiations with the EU to control immigration, but this clashes with the EU's principle of freedom of movement. While formal restrictions are unlikely, diplomats remain optimistic about reaching a compromise. The deal must still win approval from the Swiss parliament and likely a public referendum.

Switzerland is highly reliant on immigration, with 27% of its population being foreign-born—more than four times the EU average. Many companies relocate to Switzerland for its low taxes, which has been criticized for draining the tax base of neighboring EU countries. Critics argue that reducing immigration would require Switzerland to rethink its policies that attract foreign capital.
Tags: SWITZERLAND

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