Today's Swiss vote will affect Malta

The Swiss electorate will today decide in a referendum whether to open up their labour market to the citizens of the ten new member states of the EU, including Malta.

Last December the Swiss Parliament approved a gradual extension of its labour market to the citizens of the new member states but opponents have collected the necessary signatures to challenge parliament's decision in a nationwide referendum.

If approved, the accord in the form of a protocol between the EU and Switzerland is very favourable to Malta. In effect, only Maltese and Cypriots will gain immediate rights to enter the Swiss labour market as citizens from the other eight new member states will still have restrictions.

The agreement, which has already been given the EU's go-ahead, will partially open up the labour market to the new EU entrants, however Switzerland retained the right to maintain quantitative limits for workers and self-employed persons from the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia looking for residence of more than one year and residence for periods between four months and one year.

Initially, these quotas will last for three years, until May 31, 2007, but they can be extended for a further two years. In case of "serious disturbances of its labour market or threat thereof" quotas to restrict access can be maintained until April 30, 2011.

In the case of Malta and Cyprus the protocol will not include any restrictions.

The citizens of the old 15 member states already enjoy free movement in Switzerland according to an agreement signed six years ago. It also guarantees access for Swiss citizens to the EU market.

The latest opinion polls only indicate a narrow majority in favour of allowing citizens of the new EU members to travel and work freely in Switzerland, but the result could be close. If the measure is rejected, it could endanger a series of complex bilateral accords with the EU including the key areas of trade and transport.

Relations between Switzerland and the EU are considered to be close as is demonstrated by the large number of bi-lateral agreements which are in place between them. They cover many areas including free movement of persons, overland transport, air transport, agriculture, research, as well as technical barriers to trade and public procurement and entered into force on June 1, 2002. All these agreements will now have to be amended to reflect the accession of 10 new members.