Switzerland is known for its isolationism. The country traditionally does not join international unions and blocs; it became a UN member only in 2002 (citizens of the Alpine republic simply did not understand why they needed it). Switzerland has several times rejected the offer to join the EU, nevertheless its labor market was open to the population of "old" Europe. Of Switzerland's 7 million population, 20% are foreigners - citizens of Germany, France, and Italy. The EU countries account for more than 60% of Swiss exports, and the share of imports of neighbors' products is 80%. Since the late 90s, Switzerland has signed several packages of bilateral agreements with the EU, which introduced common trade rules, taxation norms, and agreements on the free movement of labor. In June of this year, the Swiss voted to join the Schengen and Dublin agreements, creating a single space with transparent borders with the European Union. This model of coexistence suits the Swiss quite well: it allows them to avoid isolation and at the same time maintain sovereignty.
In May 2004, 10 countries joined the EU - the Czech Republic, Slovakia, Poland, Estonia, Hungary, Slovenia, Lithuania, Latvia, Cyprus, and Malta - whose standard of living is lower than in Western Europe. Many Swiss politicians demanded that the agreement on the free movement of persons not be extended to citizens of the new EU member states. They argued that this would lead to an influx of cheap labor, raise unemployment, and lower wages. The isolationists were contradicted by people who believed that the same rights should be extended to newcomers as to other Europeans. There was also pressure from Brussels. Officials of united Europe threatened that if the Swiss did not recognize the new EU members, the previously reached agreements would have to be annulled.
And the Swiss made a pragmatic decision: at the latest referendum, the partial opening of the labor market to citizens of the 10 new EU members was supported by 55.95% of voters (1.45 million people), while 44% (1.15 million people) voted against. Mostly in favor of opening the Swiss labor market to citizens of Eastern European and Baltic states were residents of large cities, French- and German-speaking cantons; against were residents of rural areas and Italian-speaking cantons.
"The government is pleased with the results," said Swiss President Samuel Schmid. "This decision is very important for economic growth and the protection of workers' jobs." "I heartily congratulate the Swiss on allowing free movement to all EU residents," commented the President of the European Commission, José Manuel Barroso, on the referendum results. "The vote showed that Switzerland and the EU are successfully cooperating, together strengthening Europe."
The liberalization of the labor market will be gradual. To begin with, Switzerland will set quotas for inviting workers from countries that recently joined the EU. The quotas will be in effect until 2011: next year, 1,300 work permits will be issued for a period of 5 years, and by 2011 their number will increase to 3,000. In 2009, parliament will decide what to do next: extend the agreement or completely remove the quotas.
It should be noted that almost all "old" EU members did the same. To date, only Great Britain, Sweden, and Ireland have fully opened their labor markets to workers from the East.