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10 Feb 2014
Swiss immigration vote may be a sign of things to come int he Eurozone
FXStreet (London) - While not part of the European Union, Switzerland this weekend gave a sign of what may to come by voting for further curbs on immigration into the Schengen Area country.
Switzerland had already imposed some cantonal work visa restrictions but the 50.3 percent vote to restrict immigration at a federal level rescinds the Agreement on the Free Movement of Persons.
While some have been quick to play down the vote as a triumph of populism by the Swiss People's Party, the vote may have serious long-term effects on the Eurozone.
The breakdown of votes saw a market city/country split, with Zurich, Basel as well as the French speaking cantons broadly against the measures while rural German-speaking areas and the Italian region voting in favour of the measures.
Around a fifth of the Swiss population comes from abroad. And while Switzerland has low unemployment rates and a solid economic outlook, there are concerns that immigration, particularly from new Eurozone countries, is putting a strain on housing, health services and education.
The move from Switzerland may be the start of a trend among European voters. While Switzerland has weathered the economic slowdown aided by being separate from the Eurozone and from European politics, less economically robust countries may take a cue from Switzerland and move to initiate damaging immigration controls.
Switzerland had already imposed some cantonal work visa restrictions but the 50.3 percent vote to restrict immigration at a federal level rescinds the Agreement on the Free Movement of Persons.
While some have been quick to play down the vote as a triumph of populism by the Swiss People's Party, the vote may have serious long-term effects on the Eurozone.
The breakdown of votes saw a market city/country split, with Zurich, Basel as well as the French speaking cantons broadly against the measures while rural German-speaking areas and the Italian region voting in favour of the measures.
Around a fifth of the Swiss population comes from abroad. And while Switzerland has low unemployment rates and a solid economic outlook, there are concerns that immigration, particularly from new Eurozone countries, is putting a strain on housing, health services and education.
The move from Switzerland may be the start of a trend among European voters. While Switzerland has weathered the economic slowdown aided by being separate from the Eurozone and from European politics, less economically robust countries may take a cue from Switzerland and move to initiate damaging immigration controls.