Swiss vote to curb EU migrants, Brussels to review ties

Google – AFP, Jonathan Fowler (AFP), 9 February 2014

Photo taken on February 6, 2014 in Zurich shows a man walking past an electoral

 poster against the "Stop Mass Immigration" referendum by the Swiss People's Party

(AFP/File, Michael Buholzer)

GENEVA — Switzerland voted Sunday to impose curbs on European Union immigrants, in a nail-bitingly close referendum that sparked warnings from Brussels that it would review EU ties with the Alpine country.

Final results showed that 50.3 percent of voters backed the "Stop Mass Immigration" plan pushed by right-wing populists.

The fall-out from the result could sink a raft of deals, including on the economic front.

Switzerland is ringed by EU member countries and does the bulk of its trade with the 28-nation bloc, but has remained steadfast about not becoming a member.

The government had battled the immigration curb plan.

"Today, we can't say what the impact of this vote will be on relations with the EU," said Justice Minister Simonetta Sommaruga.

She acknowledged that it was a slap in the face for the authorities and the broad swathe of economic lobby groups that opposed the plan.

The European Commission said it would assess its ties with Switzerland.

"The EU will examine the implications of this initiative on EU-Swiss relations as a whole," said a statement.

Under Switzerland's system of direct democracy, voters have the last word on a huge range of issues, and the government said it would "without delay" begin work to implement the people's will.

It added that it would examine over coming weeks how to "recast relations between Switzerland and the EU," but stressed that current rules would remain in force until a new version was drawn up.

The measure obliges the government to renegotiate within three years a deal with Brussels that since 2007 has given most EU citizens free access to the Swiss labour market.

It was one of a series of deals reached in 1999 after five years of talks, and seen as a way for Switzerland and the EU to enjoy access to each other's markets without Switzerland having to opt for full EU membership.

- Much at risk from vote -

Brussels has warned that Switzerland cannot cherrypick from the binding package of deals, approved in a 2000 referendum and phased in.

Besides free movement of labour, they also include areas including equal access for Swiss and EU firms to public procurement tenders, smooth trade in farm goods, air transport and other sectors.

There have been warnings that ripping up those deals could also affect Switzerland's membership of Europe's Schengen travel zone, allowing free movement.

It could also hit talks aimed at giving Swiss financial players more access to EU markets, and to prise open Switzerland's banking secrecy, a hot topic as EU countries try to crack down on tax dodgers.

Such fears failed to faze the Swiss People's Party (SVP), which piloted the referendum.

Hawkish about Swiss sovereignty, it claims the country has been swamped by migrants.

"This is a turning point in our immigration policy," said SVP leader Toni Brunner.

It says that with 80,000 EU citizens arriving per year -- more than the 8,000 predicted before the rules were liberalised -- the nation of eight million people needs to apply the brakes.

It claims that EU migrants undercut Swiss workers' salaries, and that overpopulation has driven up rents, stretched the health and education systems, and overloaded the road and rail networks.

Immigration and national identity are traditional political themes in a country with a long history of drawing foreign workers and some of Europe's toughest rules for obtaining citizenship.

But over recent years, the proportion of foreigners has risen from around one-fifth of the population to roughly a quarter.

There are around a million EU citizens in Switzerland, while some 430,000 Swiss live in EU member states.

The majority of recent immigrants are from neighbouring Germany, Italy and France, as well as Portugal.

The new measure will leave it up to authorities to set quotas for foreigners' work permits per sector. Critics say this is ironic given SVP opposition to bureaucracy.

They also say restricting the hiring of EU citizens will hamper the wealthy Swiss economy, which enjoys virtually full employment but has an ageing population, and could also hurt trade with a disgruntled EU.

"This is a bad result. Switzerland needs good relations with the EU," said Paul Rechsteiner, a Socialist lawmaker and trade union official.

The national employers' federation warned that "period of uncertainty has begun for the Swiss economy, and that is not a good thing".

- Eurosceptics in EU rejoice -

The vote was watched closely by eurosceptics within the EU who want to rein in immigration among its member states, notably from eastern to western Europe.

"This is wonderful news for national sovereignty and freedom lovers throughout Europe. A wise and strong Switzerland has stood up to the bullying and threats of the unelected bureaucrats of Brussels," said Nigel Farage, leader of the UK Independence Party.

France's extreme right National Front party hailed "the Swiss people's lucidity" in a statement, calling for France to likewise "stop en masse immigration".