A preliminary tally of a nationwide referendum showed almost 55 percent of Swiss voters came out against the proposal, and 45 percent in favour.
The vote, which was likened to Britain’s 2016 Brexit referendum, had put businesses on edge due to concerns it could end the free movement of labour between Switzerland and the EU, the country’s main trading partner.
Championed by the right-wing Swiss People’s Party, the proposal stipulated that the population must not exceed 10 million before 2050, and that if it did so for two years, Switzerland should end freedom of movement with the EU.
The government had urged voters to reject the cap.
Swiss Justice Minister Beat Jans welcomed the result but pledged to analyse what further steps could be taken to satisfy voter concerns about housing and immigration.
“With today’s decision, the electorate has sent out a signal of stability, openness, and reliability,” Jans told a press conference alongside Swiss President Guy Parmelin.
Urs Bieri from pollster GFS Bern said the cap failed to pass because while concern about population growth is widespread, people were worried it could damage Swiss relations with the EU and make it harder to recruit staff, and find workers like carers.
“Also there’s a feeling that in the current international environment, it’s not sensible for a small country to do this,” Bieri said.
The Swiss population already stands at 9.1 million and has grown far more quickly than in the surrounding EU. Foreigners make up nearly 28 percent of the total, which official projections forecast will reach 10 million by the early 2040s.
Polls had forecast a close outcome. In the end, the ‘no’ camp’s victory was clearer than many analysts had expected.
Zurich schoolteacher Jan Hesselmann, 27, was happy with the result, but concerned by the support the proposal got. “It’s the wrong way to go about it, it fuels xenophobia,” he said.
The cap proposal sits alongside growing support for policies aimed at curbing immigration across Europe. Campaign posters proclaimed only 10 percent of incomers were needed skilled workers and that asylum seekers were more likely to be rapists.
Turnout was about 59 percent, well above the recent average of 48 percent for Swiss referendums.
Marcel Dettling, president of the Swiss People’s Party, said the initiative had been very popular in rural areas, but had been ultimately been defeated by urban voters.
“Not a single problem has been solved,” he said. “We will continue to push for sensible immigration.”
Business groups welcomed the referendum result after warning that a population cap would limit access to foreign workers, damage the economy and sour relations with Brussels.
Business association economiesuisse urged Switzerland to use momentum from the result to ratify a deal it struck with Brussels in late 2024 to deepen bilateral economic ties.
EU Commission President Ursula von der Leyen said Brussels and Bern would keep working together for the good of their citizens and businesses. (Reuters)