Relocating businesses to the United States could potentially lead to a decrease in immigration rates in Switzerland.
The Swiss People's Party (SVP) has announced a new initiative, "No to a Switzerland with 10 million people," aimed at capping the permanent resident population to 10 million by 2050. The proposal, which includes stricter asylum and family reunification rules, is more likely to resonate with the right-wing SVP, given their long-standing campaign to limit immigration.
The SVP justifies this proposal with concerns about infrastructure strain in a small country like Switzerland. They argue that sharp population growth will put pressure on areas such as housing, health system, public transportation, and schools.
However, economists have repeatedly negated the SVP's claim that foreigners are taking jobs away from the Swiss. The current permanent resident population in Switzerland exceeds 9 million, and the initiative aims to stop the influx of foreigners when the population reaches 9.5 million.
The outgoing EU Ambassador to Bern, Petros Mavromichalis, has proposed a radical solution to curb foreign worker influx in Switzerland: relocating Swiss companies to the United States. Mavromichalis compared the perceived overcrowding in Switzerland due to immigration to the situation on Greek islands, suggesting that Switzerland creates an appealing environment for immigrants, similar to how Greece attracts tourists.
Mavromichalis also stated that immigration is driven by economic growth, not free movement. However, it is unlikely that all Swiss companies will move production to the US. Some may, but many others are expected to remain in Switzerland.
If implemented, this plan could potentially cause massive unemployment and economic destruction in Switzerland, as it would likely empty the country of foreign workers. On the other hand, it would also mean that Switzerland would no longer be subject to Trump's 39-percent trade tariffs, as all manufacturing activity would move to the US.
As of now, the Swiss government has not yet officially reacted to the SVP's latest initiative. The SVP has collected the required number of signatures to launch a nationwide referendum on this issue, but the date for the vote has not yet been set. It is likely that the government will reject the proposal as unrealistic and discriminatory.
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