STORY: In a referendum being likened to a "Swiss Brexit" the country heads to the polls on June 14...

to vote on whether to cap its population at 10 million people.

The move is alarming many who fear an economic shock should the proposal succeed.

 "People are being bombarded with this fear of immigrants and immigration, when in reality, we know very well that the Swiss economy can't survive without migration."

But supporters of the cap, which is championed by the right-wing Swiss People's Party...

say the expanding population is testing local infrastructure as well as driving up rents and crime.

  "Well, let's just say that, considering the size of the country itself, we have more than enough. I mean, more than ten million, what are we going to do? 

Companies and employers, however, worry a "yes" vote would limit Switzerland's access to skilled labour...

and damage relations with the European Union, its biggest export market.

Martin von Moos is CEO of luxury hotels Belvoir and Sedartis.

"In Switzerland, for example, over 50% of our hotel staff are foreign nationals. If we no longer have access to these skilled workers, it would be very difficult to continue operating the hotel and restaurant industry in Switzerland at the current level."

The issue has been finely balanced in the polls though, with 47% in favour and 52% against. 

The Swiss population had grown to 9.1 million by the end of 2025.

It was 7.3 million when the free movement of people between Switzerland and the EU was introduced in 2002. 

Foreigners now make up nearly 28% of the population.

The vote is the latest example of right-wing parties tapping into anxiety over immigration, housing and public services. 

This was seen in Britain's 2016 vote to quit the EU...

and in the rising popularity of parties such as France's National Rally and AfD in Germany.

Yvan Pahud is a Swiss National Councillor from the SVP party in favour of the cap.

"Ultimately, what we want is to protect what we love, to ensure that Switzerland remains a wonderful place to live. We're not going to eliminate traffic jams overnight, but this will allow us to adapt road and rail infrastructure and build housing, but not at a pace that would ultimately prevent us from absorbing this massive influx of people."

Swiss National Councillor for the Green Party Delphine Kloppfenstein however, says the referendum comes with risks.

"It is dangerous because, firstly, it is utterly xenophobic. Ultimately, it scapegoats foreigners as the answer to all of society's ills. It is dangerous because it is deceitful. It will not resolve the issue of sustainability, as its title so clearly indicates. On the contrary, it risks impoverishing Switzerland and fundamentally undermining the agreements we currently have with the European Union, which are more important than ever."

Business critics point to the damage they say the population cap could inflict on one of Europe's most resilient economies.

They argue many newcomers have been entrepreneurs who developed the Swiss economy,

And cite companies such as Nestle, Swatch and ABB that were set up either wholly or partially by foreigners.

Swiss corporate giants Roche, Nestle, ABB and Novartis have all criticised the cap.