Fighting ESG with ESG? Switzerland Wants Tighter Immigration Policies to Spurr Economic Growth, Fight Climate Change

This weekend, Switzerland will be holding a national referendum that would limit its national population to 10 million residents by introducing a series of stringent immigration policies. The referendum comes after Switzerland experienced a significant influx of immigrants in recent years, with Swiss government reports showing that foreign nationals make up nearly one-third of the population.

According to Central European newspaper Remix News, a national referendum hosted by the Swiss People’s Party (SVP) will be held on January 6 and 7 to decide whether to limit the country’s population to 10 million through stricter immigration policies. The proposal, known as the “Swiss People’s Party’s population initiative,” calls for the termination of a 2014 agreement with the EU that allows for the free movement of people between Switzerland and EU countries. If passed, the measure would also limit the number of work permits granted to non-Swiss citizens and increase the financial penalties for employers who hire undocumented immigrants.

If the initiative passes, it could have significant consequences for Switzerland’s economy and international relationships. The country is heavily reliant on foreign workers, with around a quarter of its workforce consisting of immigrants. Many businesses, particularly in sectors such as tourism and hospitality, rely on seasonal workers from other countries. Restricting immigration and increasing fines for hiring undocumented workers could lead to labor shortages and harm the country’s economic growth.

Indeed, the initiative has sparked debate and controversy within Switzerland, with supporters arguing that it is necessary to protect the country’s resources and cultural identity, and opponents arguing that it is xenophobic and would harm the country’s economy. The Swiss government and most political parties have opposed the initiative, arguing that it would damage Switzerland’s relationships with the EU and hinder the country’s ability to attract skilled workers.

However, the Swiss People’s Party, the largest party in the country’s parliament, has been a vocal advocate for stricter immigration policies and has gained support in recent years by campaigning on issues such as law and order, national sovereignty, and the perceived threat of Islam. The SVP argues that the West’s model of open immigration— which grips the notion that more immigrants means more consumers, more demand for housing construction and more people from third world countries improving their way of life— won’t ultimately lead to unlimited growth in economic output, but rather the opposite.

The sharp influx of migrants into countries such as Switzerland, the UK, and Germany is creating strain on the respective economies’ social welfare constructs. SVP National Councilor Thomas Matter argued that relying merely on quantitative immigration to drive more per capita growth will eventually send the economy into a recession. He points out that although Switzerland’s population grew about 2.5% in 2022, income per capita only increased 2%. “They want us to believe that immigration rhymes with growth. But in reality, we are heading towards a recession,” he added.

Paradoxically, left-leaning governments are calling on European households to have fewer children in the name of reducing carbon emissions, whilst simultaneously pushing for more migration from African and Middle Eastern nations, which are typically known for having very high birth rates. That means, in order for the referendum to gain relevance, the SPV needs to link the success of ESG causes and climate change action on slowing population growth, which can be done via immigration restrictions. “It is urgent to leave the model of quantitative growth for qualitative growth,” said Matter.

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