Switzerland's attempt to reconcile its 2014 referendum vote for EU immigration quotas with its need for single market access has become more complicated following the UK's Brexit vote, according to analysts. The Swiss voted narrowly in favour of limiting EU immigration, but their economy depends on bilateral treaties with Brussels that tie market access to free movement of people.
Two and a half years after the referendum, no quotas have been implemented. Swiss diplomats have struggled to negotiate a deal with the EU that respects the vote while preserving trade ties. Cenni Najy of the Foraus think-tank said the EU has a 'red line' on quotas, which would undermine free movement. He added that Brexit has made Switzerland's position harder, as the European Commission now prioritises a UK settlement.
Switzerland faces a March 2017 constitutional deadline to legislate on immigration limits. President Johann Schneider-Ammann admitted the country is trying to 'square a circle' by keeping free movement while reducing immigration. Business leaders are concerned about uncertainty for investors, according to Jan Atteslander of the Swiss Business Federation.
The federation has proposed a 'safeguard clause' allowing temporary restrictions in sectors with high unemployment, rather than fixed quotas. It is believed the UK government may consider similar options as it negotiates its own EU exit.
