The Swiss public will vote in a nationwide referendum on 10 June on a far-right proposal to cap the country’s population at 10 million.
It is a move that critics warn could threaten key agreements with the European Union and harm the economy.
The referendum was confirmed by the Swiss government on Wednesday.
The proposal, titled “No to a 10 million Switzerland,” has been put forward by the Swiss People’s Party, the country’s largest political party. It is opposed by both chambers of parliament, as well as by major business groups and financial institutions.
Under the initiative, the government and parliament would be required to act if Switzerland’s permanent population, currently about 9.1 million, exceeds 9.5 million. Measures would include restricting the entry of newcomers, including asylum seekers and family members of foreign residents.
If the population reaches 10 million and does not begin to decline, Switzerland would be required to withdraw from its free movement agreement with the EU, its largest export market.
Switzerland’s population has grown much faster than that of neighbouring EU states over the past decade, driven by economic growth and immigration. About 27 percent of residents are non-citizens, according to official data.
The SVP argues that population growth is pushing up rents and overloading infrastructure and public services.
Opponents, including companies such as Roche, UBS, and Nestlé, say the proposal risks undermining bilateral agreements with the EU, on which much of Switzerland’s prosperity depends. Business groups have warned that limiting access to foreign workers could force companies to relocate, reducing tax revenues and weakening public services.