Will Swiss immigration vote force out expat executives

Swiss voters last Sunday forced their government to embark on what could be the most dangerous experiment in immigration reform history.

The Swiss government must now cap immigration numbers, excluding many of the large number of expats who wish to work and settle in the wealthy country. Although the referendum’s proposal hasn’t yet been turned into a plan, stricter curbs are certain to threaten the major Swiss pharmaceutical and biotech industries by restricting the number of foreign experts able to be employed.

At the present time, 45 per cent of the country’s skilled professionals are expatriates head-hunted from abroad to take up crucial positions in industry. Although the changes won’t take place until 2018, employers will be forced to scale back their recruitment plans and investments.

It’s not only Swiss industry that will be affected, as 25 per cent of Swiss banks’ executive staff are citizens of other EU member states. The Swiss Bankers’ Association has already expressed fears that the pool of suitable staff will shrink as a result of the ballot.

Academics are suggesting that the vote will result in employment growth shrinking by 50 per cent this year, with economic growth falling to 1.7 per cent from a projected 2 per cent. Switzerland’s real estate market will be hit, as expat executives prefer to rent in new, luxury developments and, worst of all, the result of the ballot is expected to damage the country’s vital relationship with Brussels.