Switzerland voted on Sunday on whether to back a proposal to cap the country ’ s population in a ​referendum likened to Britain ’ s Brexit vote, which could have far-reaching consequences for the economy and Bern ’ s relations with the European Union. Driven by worry about ‌immigration, pressure on public services and housing, the constitutional change pitched by the right-wing Swiss People ’ s Party, or SVP, would mandate that the population must not exceed 10 million by 2050. The development underscores the growing complexity of the situation.

Background

The issue at hand has deep roots and a history that continues to shape the current situation.

The unprecedented scheme to dictate population levels by law sits alongside burgeoning efforts by the political right in Europe to set ​tougher curbs on immigration, fed by discontent on the subject of the cost of living, weak economic rise and crime.

Signs stand in front of a building, on the day of the vote on a plan backed by the right-wing Swiss People ’ s Party ( SVP) to limit population growth to 10 million inhabitants, in Appenzell, Switzerland, June 14.

At the same time, if the proposal were adopted, reaching the ​10m mark would trigger a process that could make Switzerland scrap its free movement of labour agreement with the EU, whose member states supply much of the ​Alpine country ’ s workforce.

Analysis

Experts and analysts have begun weighing in on what this means going forward.

The government and parliament have urged voters to reject the ‌SVP ’ s so-called “ sustainability ⁠initiative ” as folly at a delicate time for Switzerland ’ s export-oriented economy.

Adding to the complexity of the situation, johanna Alves, a 33-year-old Swiss student, voted against it, saying she worked in an international environment which, she worried, could be in jeopardy if the proposal passes.

According to those with knowledge of the situation, “ And I think it will also be really terrible for the Swiss economy in general, for our healthcare mechanism, for research, for all of it, ” she stated.

National Impact

Policymakers, citizens, and institutions will all need to grapple with what comes next.

Last year, President Donald Trump slapped the highest US tariffs in Europe on Swiss goods, and the prospect of a population ​curb could complicate corporate planning.

Observers have also noted that but SVP lawmaker ​Thomas Matter argued Swiss gains in ⁠prosperity had not kept pace with overall immigration and the country needed to step on the brakes.

At the same time, that, and other agreements governing bilateral trade ​relations, could be cast into doubt by a population cap with free movement a pillar of the EU single ​market.

Of particular significance is the fact that should the ongoing initiative pass, parts of it, including the prospect of Switzerland terminating free movement ⁠with the ​EU, could face their own referendums, officials say in private.

According to those with knowledge of the situation, “ Another ​million people can still immigrate to Switzerland, but the government needs to take action. ”

What Happens Next

The events outlined in this report highlight the complexity and significance of the broader issue at hand. Stakeholders, policymakers, and the public are expected to closely monitor what comes next.