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Swiss Vote on Population Cap Could Impact Economy and EU Relations

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Swiss voters are preparing to decide on a controversial initiative aimed at capping the national population at 10 million by 2050. Proposed by the right-wing Swiss People’s Party, the measure is framed as a sustainability initiative, citing concerns over immigration’s impact on housing and public services. Currently, Switzerland’s population stands at approximately 9.1 million, with a significant portion being non-citizens.

If the population surpasses 9.5 million, the initiative would compel parliament to impose restrictions on asylum and family reunification. A cap at 10 million would necessitate the termination of free movement agreements with the EU, raising alarms among business leaders and government officials about potential economic repercussions.

Opponents argue that the initiative could harm sectors reliant on foreign labour, such as healthcare and construction, where many workers are from the EU. The hotel industry, for instance, employs over 50% foreign nationals, and leaders warn that this cap could exacerbate existing labour shortages.

Furthermore, the initiative poses risks to Switzerland’s vital trade agreements with the EU, its largest trading partner. With over half of Swiss exports directed to the EU, maintaining access to this market is crucial for economic stability. As polls indicate a narrow rejection of the proposal, the implications for both domestic policy and international relations remain significant.

Source: Euronews

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News Category: Money Tags: economy, eu, immigration, population, switzerland

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