A national referendum in Switzerland this weekend could decide the fate of the country’s relationship with the European Union over freedom of people to live and work in the two jurisdictions. The government says extending an accord with the EU to its newest member countries – Bulgaria and Romania – is crucial, but opponents launching a popular appeal against the deal say it threatens the Swiss economy. The outcome of the vote is also critical to the future of Britons living in this country, a point not lost on the British-Swiss Chamber of Commerce.
This weekend marks the latest round of Swiss referendums, but this time round expats have more at stake than usual in the outcome. There’s only one issue to be determined federally, a question that is crucial for the future of many foreigners living in Switzerland, including Anglophones from the UK.
Swiss citizens will decide whether to extend the bilateral deal between Switzerland and the European Union over the free movement of people to include the EU’s newest members – Bulgaria and Romania.
The government approved the agreement and the two houses of parliament endorsed the measure by wide margins last year.
But a group of opponents gathered enough signatures to force a public referendum, arguing that the accord threatens Switzerland’s prosperity by attracting more foreigners who would raise the level of unemployment, put downward pressure on Swiss wages and increase social tensions.
The government and Swiss businesses favour the agreement because rejecting it would jeopordize the existing bilateral accord with the EU that covers 25 countries. Supporters argue that Switzerland – with about 1.5 million foreigners living in the country – needs workers, particularly highly skilled ones, to sustain its economy.
The British-Swiss Chamber of Commerce (BSCC) issued a statement strongly supporting the extension of the freedom of movement accord. “A no vote would send a very clear protectionist signal,” the chamber’s managing director Carolyn Helbling told Swisster.
Britain and Switzerland have seen trade grow since the initial accord with the EU was initialled in 2002, said Helbling who runs an office for the organization which has chapters throughout the Confederation and more than 700 business members. Total trade between the two nations amounted to 18 billion francs in 2007, which compares with 28 billion francs between Switzerland and the US in the same year, she said.
The free-movement accord allows Britons and other EU residents the right to live and work in Switzerland while giving Swiss citizens the same right in Britain and the other 24 EU countries currently covered by the deal. Certain conditions must be fulfilled, however. To obtain a residency permit in either jurisdiction it is necessary to have a job contract or prove financial independence without government aid.
Helbling said a no vote “could be the thin end of the wedge” with regard to Switzerland’s relationship with the EU. “It’s not just about companies doing business, it’s about shaping the future,” she said. Although the vote specifically refers to extending an agreement with Bulgaria and Romania, rejection would endanger all other bilateral agreements with the EU, Helbling said.
Switzerland has signed seven bilateral deals with the EU, covering issues that include agriculture, transport, research and lower barriers to trade. “All of these would be subject to renegotiation,” said Helbling who also stressed that the BSCC excercised a policy of not commenting on Swiss referenda but felt this issue was an exception.
She noted that the UK is Switzerland’s fifth largest export market, while British exports account for the seventh largest source of Swiss imports. Add in the impact of trade with other countries such as France and Germany and the issue becomes an “enormous” one for the Swiss economy, she said.
The downturn in the Swiss economy, however, is giving popular support to protectionism. Opponents of the accord with Bulgaria and Romania are raising fears of immigration from gypsies and other poor people living in those countries.
Government politicians have been lobbying to ensure the yes side wins. This week a conference of cantonal governments from western Switzerland issued a communiqué underlining the importance of the supporting the bilateral accords. “To say yes on February 8 is to maintain access to primordial markets for Switzerland,” a statement released by representatives of the seven cantons said.
