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IMMIGRATION

EU immigration drives foreign population rise

The number of foreigners in Switzerland increased 3.4 percent in 2013 from the previous year, government figures released on Thursday show.

EU immigration drives foreign population rise
Residence "B" permit for immigrants from the EU and the EEA.

The country’s non-Swiss population grew by 61,570 to 1,886,630 by the end of December, the federal office of migration said.

Switzerland’s total population is around 8.1 million.

The latest statistics emerge less than two weeks after Swiss citizens voted in favour of an initiative to limit immigration from the European Union by establishing quotas.

Backers of the initiative argued that too many foreigners in the country were contributing to overcrowding in cities, a hike in the cost of housing, crammed trains, increased traffic jams on highways and more competition for jobs.

Close to two-thirds of foreigners in Switzerland (1,248,726) are citizens from the European Union or the European Economic Area (Iceland, Liechtenstein and Norway).

The number of residents from countries in these areas rose 4.5 percent from the previous year.

The population of those from other countries increased 1.2 percent to 637,904.

The report does not identify how many non-Swiss were born in Switzerland to foreign parents.

The total number of immigrants to the country exceeded 155,000 last year, up eight percent, while just over 70,000 foreigners emigrated, an increase of 6.3 percent.

The net immigration of more than 81,000 for 2013 marked a 10.6 percent jump from the previous year.

Italians topped the list of nationalities in the country (301,254), followed by Germans (293, 156), Portuguese (253,769), French (110,190) and Kosovars (95,140).

The number of Britons reached 40,405, according the migration office.

A figure for Americans was not disclosed.
 

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ENERGY

How European countries are spending billions on easing energy crisis

European governments are announcing emergency measures on a near-weekly basis to protect households and businesses from the energy crisis stemming from Russia's war in Ukraine.

How European countries are spending billions on easing energy crisis

Hundreds of billions of euros and counting have been shelled out since Russia invaded its pro-EU neighbour in late February.

Governments have gone all out: from capping gas and electricity prices to rescuing struggling energy companies and providing direct aid to households to fill up their cars.

The public spending has continued, even though European Union countries had accumulated mountains of new debt to save their economies during the Covid pandemic in 2020.

But some leaders have taken pride at their use of the public purse to battle this new crisis, which has sent inflation soaring, raised the cost of living and sparked fears of recession.

After announcing €14billion in new measures last week, Italian Prime Minister Mario Draghi boasted the latest spending put Italy, “among the countries that have spent the most in Europe”.

The Bruegel institute, a Brussels-based think tank that is tracking energy crisis spending by EU governments, ranks Italy as the second-biggest spender in Europe, after Germany.

READ ALSO How EU countries aim to cut energy bills and avoid blackouts this winter

Rome has allocated €59.2billion since September 2021 to shield households and businesses from the rising energy prices, accounting for 3.3 percent of its gross domestic product.

Germany tops the list with €100.2billion, or 2.8 percent of its GDP, as the country was hit hard by its reliance on Russian gas supplies, which have dwindled in suspected retaliation over Western sanctions against Moscow for the war.

On Wednesday, Germany announced the nationalisation of troubled gas giant Uniper.

France, which shielded consumers from gas and electricity price rises early, ranks third with €53.6billion euros allocated so far, representing 2.2 percent of its GDP.

Spending to continue rising
EU countries have now put up €314billion so far since September 2021, according to Bruegel.

“This number is set to increase as energy prices remain elevated,” Simone Tagliapietra, a senior fellow at Bruegel, told AFP.

The energy bills of a typical European family could reach €500 per month early next year, compared to €160 in 2021, according to US investment bank Goldman Sachs.

The measures to help consumers have ranged from a special tax on excess profits in Italy, to the energy price freeze in France, and subsidies public transport in Germany.

But the spending follows a pandemic response that increased public debt, which in the first quarter accounted for 189 percent of Greece’s GDP, 153 percent in Italy, 127 percent in Portugal, 118 percent in Spain and 114 percent in France.

“Initially designed as a temporary response to what was supposed to be a temporary problem, these measures have ballooned and become structural,” Tagliapietra said.

“This is clearly not sustainable from a public finance perspective. It is important that governments make an effort to focus this action on the most vulnerable households and businesses as much as possible.”

Budget reform
The higher spending comes as borrowing costs are rising. The European Central Bank hiked its rate for the first time in more than a decade in July to combat runaway inflation, which has been fuelled by soaring energy prices.

The yield on 10-year French sovereign bonds reached an eight-year high of 2.5 percent on Tuesday, while Germany now pays 1.8 percent interest after boasting a negative rate at the start of the year.

The rate charged to Italy has quadrupled from one percent earlier this year to four percent now, reviving the spectre of the debt crisis that threatened the eurozone a decade ago.

“It is critical to avoid debt crises that could have large destabilising effects and put the EU itself at risk,” the International Monetary Fund warned in a recent blog calling for reforms to budget rules.

The EU has suspended until 2023 rules that limit the public deficit of countries to three percent of GDP and debt to 60 percent.

The European Commission plans to present next month proposals to reform the 27-nation bloc’s budget rules, which have been shattered by the crises.

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