Thanks to an extension of the free movement of persons agreement between Bern and Brussels, more than half a million EU nationals could get a C permit after five years of residence – with no strings attached. One Swiss economist is highly critical of the move.
As The Local previously reported, under the terms of the new EU treaty, hundreds of thousands of European Union nationals could be eligible for permanent residence in Switzerland – regardless of whether they hold a job or are financially self-sufficient.
READ ALSO: Why 570,000 foreigners in Switzerland could suddenly get permanent residence
Whilst EU nationals can currently claim permanent residency in Switzerland if they have a job or are financially self-sufficient the new deal with EU would allow them to do so without these conditions – in other words, having a job in Switzerland would no longer be a prerequisite for a EU or EFTA passport holder wanting to settle.
One study commissioned by the federal government, said this new agreement would allow around 570,000 EU/EFTA nationals to claim permanent residency in Switzerland if they chose to claim it. However new reports this week suggest that figure could be as high as 690,000.
But as Swiss news site 20 Minuten pointed out: “the big question is how many will actually exercise this right?”
This perspective has sparked much angst about immigration and EU’s influence on Switzerland’s laws and policies.
More people than expected
According to economist Reiner Eichenberger, the impact on Switzerland of the EU’s Citizens’ Rights Directive – which allows EU and 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 with no strings attached – could be significant.
Eichenberger, from the University of Fribourg, is critical of the effects of the deal on Switzerland and on the “big question” of how many EU/EFTA nationals will claim permanent residency he said: “That depends heavily on the future economic situation.”
“Immigrants will demand the unconditional right to remain in Switzerland when their employment is at risk or their unemployment benefits run out,” he told 20 Minuten news platform.
Consequently, the new EU agreements will lead to more people staying in Switzerland, especially during economically challenging times, he said.
“This increases net immigration and thus the pressure on the housing market,” said the economist, who is critical of freedom of movement.
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Will the new rules primarily benefit the economically disadvantaged?
Since EU/EFTA nationals would not be subjected to rules which don’t also apply to Swiss citizens, another obligation would be imposed on Switzerland as well.
Specifically, Switzerland will have to be more accommodating towards EU migrants needing social assistance.
This means that if EU/EFTA citizens coming to live in Switzerland cannot support themselves, they would be entitled to receive public assistance – without ever having paid taxes or contributed to the country’s social security scheme.
This will likely be the case, Eichenberger said.
“According to federal experts, the new regulation is particularly advantageous for people in low-wage jobs with an increased risk of unemployment,” Eichenberger said. “It weakens their incentive not to claim social assistance.”
The economist says that studies which show lower skilled EU nationals don’t move in high numbers between member states doesn’t take into account that Switzerland is better off than most EU nations and has a more generous welfare system.
“The differences in social welfare benefits between Switzerland and the EU are much greater than the differences within the EU. This will act as a magnet for immigration,” he pointed out.
Family reunification
Eichenberger also argued that the rules allowing family reunification will lead to more people moving to Switzerland, who will end up on welfare benefits.
“Immigration from certain countries of origin and social groups to Switzerland tends to increase with the number of people already here. This is the well-known diaspora effect,” he said.
“The claim that the new regulation will bring only a small amount of additional problematic immigration is therefore naive in the long run.”
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Will social welfare costs explode?
The federal government anticipates 3,000 to 4,000 additional social welfare cases and extra costs of 74 million francs per year.
But in the end, “it doesn’t matter whether the costs are incurred by the federal government, the cantons, municipalities, or social insurance,” Eichenberger said. “Ultimately, they will be borne by the residents – especially those who work.”
READ ALSO: Will more foreign residents be eligible for Swiss welfare benefits?
Astrid Epiney, a legal scholar at the University of Fribourg, believes the new legislation won’t bring about as radical a change as some are claiming.
But she does agree there will be an impact, namely that many unemployed EU nationals will be able to claim permanent residency.
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When will these new rules go into effect?
It may take a while.
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, Swiss voters will likely have the final say on the new agreements – but not before 2027.
