Swiss companies anticipate the government will weaken the proposed population cap even if voters approve it on Sunday, according to the country's main business lobby group. Economiesuisse Chief Economist Rudolf Minsch told Bloomberg Television that Switzerland's pragmatic approach typically leads to compromises on controversial measures.

The vote concerns limiting residents to 10 million people by 2050, up from 9.1 million currently. Right-wing campaigners initiated the measure to curb immigration, with polls predicting a close outcome. Swiss firms argue that recruiting foreign workers remains essential for their success, particularly in sectors facing labor shortages.

Minsch believes leaders must reassure the European Union about maintaining bilateral cooperation if the measure passes. However, Lombard Odier recently warned that the initiative contains concrete policy triggers that cannot be easily avoided. The government could be forced to abandon the free movement accord with the EU if population exceeds 10 million persistently.

That scenario threatens wider bilateral agreements on market access. The government estimates gross output could be 12% lower by century's end, according to Raiffeisen Switzerland economist Alexander Koch. The plebiscite represents one of the most economically disruptive votes in years, potentially reshaping Switzerland's immigration-dependent economic model.