Switzerland, a wealthy country that has historically supported free movement of people and foreign investment, will vote on introducing a population cap — and tougher immigration rules.
On Sunday, Switzerland will hold a referendum on limiting its population to 10 million. If the solution gains support, Swiss authorities will have to implement measures to curb population growth by 2050. Entrepreneurs warn that restricting immigration will have a negative impact on Switzerland's economic growth and competitiveness.
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The referendum result could change Switzerland
Sunday's referendum comes after the country's population increased by 10%. within 10 years. At the end of 2025, it amounted to just over 9.1 million.
Relatively low taxes have made Switzerland home to global conglomerates such as the consumer goods giant Nestlepharmaceutical giant Novartis and other international companies from the financial, luxury goods and technology industries. Switzerland has one of the world's highest concentrations of billionaires and a much higher GDP per capita than many other developed economies.
At the end of 2024, 41 percent population had a “migrant background”, a term referring to immigrants and their children born in Switzerland.
It is estimated that 1.4 million EU citizens live in Switzerland, which is approximately 16%. the country's population. Another 340 thousand EU citizens cross the border every day to work there.
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Switzerland votes on population limit
If voters support the population reduction proposal, the Federal Council and the country's parliament will have to implement measures to limit population growth by 2050.
Immigration systems will be tightened if the population exceeds 9.5 million, and asylum and family reunification programs will be restricted first. Switzerland's free movement of people initiative with the European Union could also end if its population exceeds the 10 million threshold.
Switzerland is not part of the EU, but is part of the Schengen areawhich has unlimited passenger traffic. The EU and Switzerland also concluded an agreement allowing the free movement of citizens, allowing them to live and work in each other's territory, provided they have a job or other source of income.
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SVP appeals to voters
Right-wing SVP party in Switzerland calls on voters to “send a clear signal” policymakers to stop what he calls “overwhelming” population growth.
Companies based in Switzerland say introducing significant immigration restrictions would weaken the country's competitiveness and burden its economy, which has struggled with slow growth, deflation and US President Donald Trump's tariff regime.
Economiesuisse – an industry organization that includes, among others: Amazon Web Services, Roche, Google and Johnson & Johnson – opposed the initiative to introduce a demographic limit.
“Migration limits threaten to undermine agreements with the EU”
Chief economist Rudolf Minsch said in a statement to CNBC that Switzerland's prosperity depends on “openness, innovation and strong economic relations with Europe.”
“We understand that concerns about housing, infrastructure and population growth must be taken seriously, and these challenges require pragmatic policy solutions,” he said.
“Hard immigration caps are not the right solution, especially if they threaten to undermine bilateral agreements with the European Union that are crucial to the Swiss economy“.
Companies are sounding the alarm: migration restrictions may weaken competitiveness
Minsch added that Switzerland depends on highly skilled foreign workers, especially in sectors such as pharmaceuticals, technology and health care.
“Severe immigration restrictions would undermine innovation, economic growth and competitiveness, while making it more difficult for companies to attract international talent,” he said.
Source: CNBC
