EU Immigration and Free Movement: Switzerland’s Stance and the Bigger Picture

Switzerland recently voted in favor of ending free movement from the European Union (EU), with 61.7% of voters supporting the resolution. This turn of events is often seen as a response to fears propagated by the media, but it’s essential to understand the implications of this decision and the underlying issues of free movement within the EU.

The Swiss Context and the Referendum

Switzerland has always maintained its neutrality, which means it is not a member of the EU. However, it has a unique arrangement with the EU, allowing for free movement of people between the two entities. The recent referendum was not a Brexit-like severance but rather an attempt to implement certain restrictions on EU migration, namely, to end the free flow of people between Switzerland and the EU.

Many Swiss voters were concerned about the potential economic and social impacts of ending free movement. They feared that doing so could strain relations with the EU and limit the freedom of Swiss citizens to move to other EU nations. Free movement is not one-way traffic; it is bilateral, meaning that Swiss citizens enjoy the same rights as EU citizens to live and work in Switzerland. Therefore, ending free movement could have significant implications for both parties.

EU Immigration and Free Movement: A Closer Look

The principle of free movement within the EU is one of the fundamental freedoms. It was introduced to allow wealthier member states to access cheaper labor markets in less wealthy states, particularly to address the demographic challenges faced by many European nations. For instance, Germany, with its aging population and rising pension costs, has been one of the primary beneficiaries of this policy.

However, the reality of free movement has not been entirely positive. According to the data, countries like Germany, Spain, France, Belgium, Sweden, Ireland, Austria, Czech Republic, and Luxembourg are experiencing significant net-positive migration, benefiting economically from the influx of workers. In contrast, countries like Latvia, Lithuania, Malta, Slovenia, Estonia, and Bulgaria have much lower numbers of EU migrants, often due to the professional skills of these migrants being more sought after, leading to a different kind of labor market dynamics.

Unqualified Free Movement: The Problem

The issue at the heart of the debate is unqualified free movement of labor. This unrestricted flow has led to several challenges, including wage suppression and increased youth unemployment in countries heavily dependent on EU migration. For example, in Spain, youth unemployment stood at around 32.9% in 2019, largely due to wage suppression caused by migrant workers in hospitality and agriculture. This phenomenon is not unique to Spain but is also seen in other EU nations like Greece, Sweden, Italy, Luxembourg, Portugal, Croatia, and France.

However, it’s important to note that the countries benefiting most from free movement often have a higher standard of living and better job opportunities, which naturally attract more workers. At the same time, countries where the migration flows are lower often benefit from the professional skills of the workers who choose to live and work there, leading to a more skill-based labor market.

The Swiss Perspective and Its Benefits

Switzerland, as a highly industrialized nation with a strong economic presence in the EU markets, benefited significantly from free movement. The country hosts around 1.4 million EU citizens, making up about 16% of its population. Despite this, Switzerland’s youth unemployment rate is only around 3%, indicating that EU migrant workers have contributed economically without causing significant wage suppression or job displacement.

Moreover, the Swiss authorities have control over the number of migrant workers in lower-paid sectors by limiting them to non-EU citizens. This selective policy ensures that the benefits of free movement are balanced, with EU migrants often filling professional roles rather than engaging in general labor markets. This strategic approach is why Switzerland decided to maintain its free movement policy, ensuring no real downside to the country’s economy.

In conclusion, the Swiss referendum on free movement highlights the complex and nuanced nature of EU immigration and free movement policies. The decision was based on a careful balancing act between economic and social factors. While free movement has benefits, the unregulated nature of its implementation can lead to detrimental effects in certain regions. Switzerland’s approach provides a model for how these challenges can be managed effectively.