Currently, immigration from the European Union and EFTA states (Norway, Iceland, and Liechtenstein) is contingent on foreign nationals being employed in Switzerland.
Nationals of these countries have an unlimited access to Switzerland’s labour market – typically, they receive a permit B when they arrive and begin working, which can then be converted into the ‘settlement’ permit C, after five years of continuous employment.
EU/EFTA citizens who don’t work can live in Switzerland under the B permit; they must, however, prove that they have sufficient financial means to support themselves without resorting to public assistance.
This system has been in place since the free movement agreement with the European Union went into effect on June 1st, 2002, but it could change in the future.
How? No conditions would be attached – in other words, having a job in Switzerland would no longer be a prerequisite for a EU or EFTA passport holder wanting to settle.
READ ALSO: Will half a million foreigners get the Swiss 'C' permit with no conditions attached?
How is this possible?
In the new series of treaties that Switzerland concluded with the European Union in December 2024, Bern committed to expanding the agreement on the free movement of people.
Concretely, the Swiss government would have to adopt EU’s Citizens' Rights Directive, which allows EU/EFTA nationals to move freely within all contracting states (of which Switzerland is one) and grants them permanent residency rights after five years of living in the country.
Having a job - or, for that matter, being financially self-sufficient - would no longer be a requirement.
Currently, Switzerland is not bound by the Directive but rather by the agreement on the Free Movement of Persons.
How many people would come to Switzerland under the terms of this agreement?
In an analysis commissioned by the federal government, the research and consulting firm Ecoplan concluded that five years after the new treaty goes into effect, 570,000 people will suddenly receive the right of permanent residence in Switzerland.
An additional 50,000 to 70,000 will be added annually.
But there is more
Under the new treaty, Switzerland would have to adopt other EU directives as well.
According to SRF public broadcaster, “Switzerland would cooperate more closely with the EU in the future. It's not about joining, but the agreements are a step towards integration. Switzerland will no longer be able to make completely independent decisions in the areas where it cooperates with the EU.”
Immigration is one of them, but there are others as well.
For instance, treaties also include the adoption of EU law and the dispute settlement mechanism – which means that European legislation would prevail over Swiss one on a number of key matters.
When will this directive come into effect?
Not immediately.
The consultation process on the new Swiss-EU package, in which political parties and associations could submit their views, wrapped up at the end of October.
The Federal Council is now working on the final draft, which is expected to go to the Parliament in the spring.
Ultimately, the voters will likely have the final say on the new agreements – but not before 2027.
What is likely to happen next?
There are two likely scenarios.
One is that the EU package is approved by Swiss voters, and the government will work on implementing it - in which case the new immigration directive will go into effect.
The other option is that it is not accepted, and nothing will change.
However, even if it does pass, it is very likely that the hard-right Swiss People's Party (SVP) will launch an initiative against what they have called "a EU submission package," and especially against the part concerning the no-conditions-imposed immigration.
This would be in line with their current effort, the 'No to 10 million" initiative, which calls for limiting the influx of foreigners to Switzerland once the country’s population exceeds the 10-million mark.
READ ALSO: What exactly does the Swiss 'no to 10 million' anti immigration proposal aim to do?
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