EU leaders slam Swiss curb on immigration

European leaders and Swiss captains of industry on Monday condemned the results of a referendum held over the weekend in which voters narrowly passed a proposal limiting the number of foreigners – from war refugees to EU citizens – allowed to live and work in Switzerland.

The vote on Sunday was initiated by the right-wing Swiss People's Party (SVP), which has tapped into fears by some that Swiss culture is being eroded by foreigners, who account for nearly a quarter of the country's 8 million people.

"Switzerland has rather damaged itself with this result," German Foreign Minister Frank-Walter Steinmeier told reporters on arrival in Brussels for a meeting with his EU colleagues.

"Switzerland must realize that cherry picking with the EU is not a long-term strategy."

"There will be consequences, that's clear," added Luxembourg Foreign Minister Jean Asselborn. "You can't have privileged access to the European internal market and on the other hand, dilute free circulation."

Free movement of people and jobs within its borders is one of the fundamental policies of the European Union, and Switzerland, while not a member of the 28-nation bloc, has participated under a pact with Brussels. Since 2002, Swiss and EU citizens have been able to cross the border freely and work on either side as long as they have a contract or are self-employed.

EU officials noted on Monday that the free movement treaty is part of a package of seven agreements that stand or fall together. The accords also cover economic and technological cooperation, public procurement, mutual acceptance of diplomas and licenses, agricultural trade, aviation and road and rail traffic.

In an interview with RTL radio, French Foreign Minister Laurent Fabius described the EU's 1999 agreement with Switzerland as a "guillotine clause," saying that if one element is challenged "then everything falls apart."

"We simply can't accept these kinds of restrictions, the ones that were approved yesterday," said European Commission spokeswoman Pia Ahrenkilde. "This will clearly have implications for the rest of the agreements we have with Switzerland."

Immigration limits are also vigorously opposed by Swiss industry as well as the government in Bern, which is now in the uncomfortable position of having to write the referendum result into law while limiting the backlash from Brussels and big neighbors like Germany and France.

Businesses say the vote to reintroduce immigration quotas, backed by a margin of just under 20,000 votes, threatens a Swiss economy that relies on the EU for nearly a fifth of its workers.

Switzerland is home to food and beverage giant Nestle, drug makers Novartis and Roche, as well as a host of major commodities dealers such as Glencore Xtrata and Louis Dreyfus Commodities.

Valentin Vogt, president of the Swiss Employers Association, told the NZZ newspaper that the vote created a toxic uncertainty for Swiss business, already under pressure from a crackdown on bank secrecy and outcry over favorable tax rates some Swiss cantons offer multinational companies.

"What's the point of investing in Switzerland, when in the end it's not certain whether you can get qualified staff to carry out your plans?," Vogt asked.

Under the initiative, refugees and asylum seekers would be subject to the same quotas as other immigrants.

Some see a growing intolerance towards immigrants in Switzerland, which they blame on right-wing forces they say are using deep-seated fear of foreigners among some Swiss to win votes and garner support for restrictive policies.

The SVP, which has grown rapidly since the 1980s and is now the biggest party in parliament, has made opposition to immigration a key message.

A similar right-wing backlash against immigration across the European Union has targeted the bloc’s newest members, Romania and Bulgaria, whose expatriate citizens have alleged discrimination in countries such as the United Kingdom.

British Prime Minister David Cameron has indicated he might support similar curbs on immigration, due largely to “benefits tourism” – an alleged phenomenon whereby immigrants from poorer EU member states relocate to the United Kingdom and burden welfare programs.

On Monday, EU Employment Commissioner Laszlo Andor criticized proposed limits on immigration in EU member states, though he did not name any one country.

"These workers are of considerable economic benefit to the economies, and to the welfare systems, of the receiving country," he said at a lecture in Bristol. "Politicians should be responsible enough to talk about facts, rather than to pander to prejudice, or in the worst cases, xenophobia."

Al Jazeera and wire services