Switzerland today voted by a clear margin to open its job market to workers from the European Union's 10 new member states, mostly eastern European countries, cementing relations with its European neighbours.
Despite right-wing warnings of floods of cheap labour, 56 per cent of Switzerland's electorate endorsed government plans to extend an agreement with Brussels on the free movement of people to the new states, according to the Swiss state television SF1.
The referendum was a test of Switzerland's relations with the EU. A "no" vote would have unravelled a raft of complex deals with the bloc, aimed at making cross-border trade and law enforcement easier.
But the clear endorsement is seen as a victory for the Swiss government and a vote of confidence for its bilateral relationship with the 25-member EU.
"The majority of the Swiss people have again endorsed the bilateral path," Samuel Schmid, President of the Swiss Confederation, told SF1 after the vote. "We are happy that we can continue on our chosen path," he added.
With 60 per cent of Swiss exports going to EU countries and 80 per cent of its imports originating from there, the bloc is the country's main trading partner by far.
The endorsement of the labour accord was welcomed by Brussels, which had followed the referendum closely.
"This vote demonstrates that Switzerland and the EU work together successfully to promote the integration of our people and our economies and to strengthen the cohesion of Europe," European Commission President Jose Barroso said in a statement.
Voters in the wealthy Alpine state rejected moving toward EU integration in 1992 and the government has since worked out a series of complex deals with the bloc.