My View on the Swiss Immigration Initiative

The Swiss electorate's yes vote to the mass immigration initiative should not be understood simply as a vote against Europe. It means now, in fact, that issues surrounding the free movement of persons need to be addressed, unanswered questions must be clarified, and bilateral treaties with the EU have to be rendered sustainable.

I voted against the mass immigration initiative on February 9, although I can certainly understand some of the arguments of its proponents. What is important now is that the whole of Switzerland takes a determined and confident stand without wearing ideological blinkers in order to find a solution that will preserve the nation's competitiveness.
The political community and business leaders like ourselves underestimated the concerns of the population and should not try to lecture the nation now. The people sent a clear signal that the political community did not take the negative implications of immigration and economic growth seriously enough, and that economic arguments alone are insufficient.

Not a vote against Europe

Switzerland is an open economy and should remain so. However, the yes vote to the initiative shows clearly that there is a need to manage immigration more tightly again, and to continue developing the country's relationship with Europe – something which also benefits the EU. Proportionally, the Swiss economy provides more immigrant EU citizens with a livelihood than any comparable country in the EU. Besides this, immigration is an issue in many other European countries too. The difference is that the population density and the proportion of foreign nationals in Switzerland (23 %) are very high compared with other European countries. The EU needs to show understanding, because when foreign nationals make up almost a quarter of the population, political reactions are likely. In a democracy this can simply not be ignored. Moreover, a vote of this type would have had a similar outcome in many other European countries.

The result of the vote should not necessarily be understood as a vote against Europe, but rather as a call for action.

Achieving sustainable and widely accepted European integration requires a great deal of flexibility and pragmatism, and not only regarding the free movement of persons. What should be done? Along with the development of a new migration system, the misgivings of the population must be taken seriously by addressing their implications with accompanying measures and by developing solutions for the most problematic areas. The key terms here are "density stress," "urban sprawl" and "stagnating purchasing power." Secondly, an intelligent solution needs to be found in cooperation with the EU to use existing instruments to preserve the Agreement on the Free Movement of Persons. Portraying the bilateral agreements between Switzerland and the EU as mere "cherry-picking" by Switzerland is unrealistic.

Whether direct or indirect, threats are not helpful in the solution-finding process. The EU benefits from the partnership at least as much as Switzerland. It is a fact that access to the EU market for Swiss companies that is as non-discriminatory as possible is essential: Swiss companies export more than half of their production to the EU, generating sales of CHF 325 million a day. On the other hand, the EU draws even more benefit from reciprocal market access. Each year Switzerland imports goods and services from the EU worth EUR 40 billion more than it exports to that market. More than 1.2 million EU citizens work and live in Switzerland, three times as many as the 400,000 Swiss nationals active in the EU.

About 300,000 cross-border commuters earn their living in Switzerland, and more than a million people are employed in Swiss companies in the EU. For this reason alone, both parties have a vital interest in finding a mutually acceptable solution.

Holistic approach

A future migration system should take the Swiss labor market into account. It should be designed to be as liberal, unbureaucratic and in keeping with the basic principle of personal freedom of movement in the EU as possible. For instance, from my point of view a system with upper limits and protective clauses combined with accompanying measures is conceivable, but I do not wish to get ahead of the political debate.

In my view, discrimination against specific EU countries and professions is neither desirable nor viable. Furthermore, foreigners currently living in Switzerland must have legal and planning security as quickly as possible.

Considering the Agreement on the Free Movement of Persons in isolation would be mistaken. What is needed is a coordinated approach. To seek a solution to the freedom of movement issue without shedding light on how the bilateral agreements with the EU will be adapted and developed in future, and how unanswered questions are to be definitively clarified, is of little benefit. For the economy, it is fundamental that the bilateral route be developed and market access increased. A coordinated approach also includes the taxation issue. A compromise on corporate taxation without clarity on the free movement of persons does not make sense. For that reason, consultations with the EU should be coordinated using a three-pronged approach: free movement of persons, institutional issues and taxation issues.

The acceptance of the initiative should be understood as a stimulus to take a holistic approach to the many outstanding issues that Switzerland has with the EU. This starting point is an opportunity to tackle the required negotiations. I am convinced that this is also in the interests of the EU. Without an attractive regulatory environment and access to foreign specialist and management staff and the latter's know-how, it is impossible to preserve Switzerland's standing as an international economic center in the long term.
It is our responsibility to future generations to do our utmost to secure the future of our country as an open and innovative economy.

(The original version of this article was published first on Neue Zürcher Zeitung in German.)