Swiss Government Rejects Population Cap Proposal Backed by Largest Party

On 21 March 2025, the Swiss Federal Council officially rejected a controversial proposal by the Swiss People’s Party (SVP) to impose a national population cap. The proposal, which aims to limit the Swiss population to a maximum of 10 million people, was criticised by the government for posing a threat to the country’s economic growth, prosperity, and international commitments.

Background to the Proposal

The initiative, spearheaded by the SVP — Switzerland’s largest political party, known for its anti-immigration stance — is rooted in concerns about “uncontrolled immigration.” The party argues that continued population growth is overwhelming infrastructure and driving up housing costs. With more than 114,000 signatures collected, the initiative met the threshold for a public vote under Switzerland’s system of direct democracy.

Switzerland’s population stood at approximately 9.03 million as of September 2024. The SVP fears that surpassing the 10 million mark would endanger the country’s social and economic balance, and it proposes curbing immigration, particularly by restricting entry for asylum seekers.

Government Response

In a statement released on Friday, the Federal Council urged lawmakers and citizens to reject the proposal, warning of serious economic and diplomatic consequences:

• The proposed population cap would undermine prosperity, security, and economic development.

• Limiting immigration would impede access to foreign talent, threatening Swiss competitiveness and innovation.

• The initiative risks breaching Switzerland’s international obligations, notably the free movement agreement with the European Union.

The Federal Council stressed that Swiss employers continue to depend on skilled foreign workers to address domestic labour shortages, especially in high-demand sectors. It also noted that the recently renegotiated agreement with the EU already includes a safeguard mechanism that allows Switzerland to limit immigration in exceptional circumstances.

Reaction from Business and Political Circles

The business lobby economiesuisse also voiced strong opposition, highlighting the negative impact the cap would have on the labour market. Employers fear that if hiring from abroad becomes more difficult, economic growth and productivity could falter.

Despite acknowledging the challenges of immigration and population growth, the Federal Council maintained that broad-based restrictions would be counterproductive and detrimental to Switzerland’s long-term interests.

What Happens Next?

The initiative will now move to the Swiss Parliament, where lawmakers have more than a year to deliberate. While no date has been set for a national vote, the debate is expected to be a significant flashpoint in Swiss political discourse in the months ahead.

For now, the government’s firm rejection signals its commitment to maintaining Switzerland’s openness to foreign talent and upholding its international agreements.

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