Swiss citizens will head to voting booths on June 14 to decide whether their nation should impose a 10 million person population limit in a referendum that business leaders are comparing to Brexit in terms of potential economic damage.
The population restriction proposal, backed by the right-wing Swiss People’s Party (SVP), stems from concerns that Switzerland’s growing population is overwhelming infrastructure, transportation systems, and public services while contributing to higher housing costs and increased crime rates.
Corporate leaders and employers are expressing alarm that approving the measure would restrict Switzerland’s ability to recruit qualified workers and could harm the country’s relationship with the European Union, which represents its largest export destination.
Martin von Moos, who serves as CEO of luxury hotels Belvoir in Ruschlikon and Sedartis in Thalwil near Zurich, expressed deep worry about the proposal’s implications. “As a Swiss citizen, it concerns me very much for the future of our country and its prosperity,” von Moos stated.
He emphasized his business’s dependence on international workers, saying “If we lost all of our foreign staff, the hotel simply wouldn’t function,” while noting that nearly half of his 115 employees come from other countries.
Recent polling data indicates a close contest, with 47% of respondents supporting the cap and 52% opposing it.
Switzerland’s population has expanded to 9.1 million by the end of 2025, representing significant growth from the 7.3 million residents when the country established free movement agreements with the European Union in 2002. Foreign nationals currently represent nearly 28% of the total population.
SVP lawmaker Yvan Pahud defended the proposal to Reuters, stating “Switzerland is a small country with a limited territory, and it has experienced the highest population growth in recent years.”
The referendum reflects a broader European trend of right-wing political movements capitalizing on public concerns about immigration, housing availability, and public services, similar to Britain’s 2016 decision to leave the EU and the growing support for parties like France’s National Rally and Germany’s AfD.
Business opponents warn that the population restriction could seriously harm one of Europe’s strongest economies.
Molecular Partners, a Zurich-based biotech firm where more than half of approximately 120 employees are non-Swiss, already faces challenges recruiting necessary talent.
Daniel Steiner, senior vice president of targeted radio therapeutics at the company, warned that limiting hiring to Swiss workers “would basically be a showstopper.” He added, “We may be forced to move things out of Switzerland.”
Rudolf Minsch, chief economist of business association economiesuisse, characterized the cap as a “populist attempt” to address complicated issues through an oversimplified approach. “It sells the illusion of a free lunch, and will not solve our housing or traffic problems,” Minsch explained.
Switzerland confronts demographic challenges common throughout Europe, with an aging population creating workforce concerns. Government statistics project that by 2055, the working-age population between 20 and 64 will decrease from 60% to 56%, while those over 65 will increase from the current 21% to 27%.
Critics of the population cap point to the economic contributions of immigrants, highlighting major companies like Nestle, Swatch and ABB that were established wholly or partially by foreign entrepreneurs. A 2023 Avenir Suisse study found that 39% of all company founders in Switzerland were foreigners.
Switzerland’s political system relies heavily on direct democracy, with citizens voting on national and regional matters four times annually.
The current proposal would require government action to prevent reaching 10 million people once the population hits 9.5 million, projected for 2031. The 10 million threshold is expected in 2042.
Upon reaching the 10 million limit, the government would be obligated to cancel international agreements that promote population growth, including the EU free movement accord that provides Switzerland access to European single market benefits.
Claude Maurer, chief economist at BAK Economics research institute, calculated that abandoning bilateral agreements with Brussels would reduce Swiss economic growth by 7.1% between 2028 and 2045, equivalent to losing 685 billion Swiss francs ($867 billion). He predicted slower growth and higher inflation driven by wage increases could lead to elevated interest rates.
Thomas Matter, another SVP lawmaker and banker, rejected these economic warnings as fear tactics. He argued that only one in ten immigrants possess sought-after skills and that per-capita GDP growth has declined since immigration increased.
“We are not against immigration, but it has to be moderate and controlled so we bring in the right people,” Matter explained. “Before we had qualitative immigration, now we have quantitative immigration. Switzerland is still the same size as it was in 1848, and more and more people are living in the same space.”
Major Swiss corporations including Roche, Nestle, ABB, UBS and Novartis have publicly opposed the population cap.
Roche stated its rejection of the initiative, warning that approval would “threaten agreements with the EU and exacerbate a shortage of skilled workers.” The company emphasized that “Companies depend on access to qualified workers — especially from the EU.”
Hotelier von Moos, who also leads the Swiss hotels association, predicted that some hotels would close, prices would increase, and non-European visitors would face greater difficulty traveling to Switzerland.
“We call this initiative a wolf in sheep’s clothing. It’s a simple message but it hides serious consequences,” he concluded.
