ABSTRACT
The chapter introduces a question that has played a crucial role in shaping Swiss–EU relations: immigration. As a highly developed economy, Switzerland is very attractive to immigrants but, as a small country, it often feels threatened by immigration. The chapter shows how the bilateral agreement on free circulation has enabled Switzerland to retain measures of protection of its labour force. Coupled with the fact that the skill profile of EU immigrants is complementary to that of the Swiss citizens, it has meant that free circulation has not had a generally negative impact on the labour market. Particular pressures, however, have emerged in some border areas and have triggered strong political reactions. Drawing parallels with the role immigration has played in the Brexit debate, the chapter highlights the importance of economic and social consequences of how immigration flows are distributed across a country.
