Swiss narrowly vote against harsh immigration law

Switzerland pulled back from the brink of enacting Europe's toughest law on refugees yesterday, rejecting the proposals in the closest referendum vote on record.

The draconian plans called for the rejection of all asylum-seekers entering Switzerland through a country free from political persecution – in other words, anyone attempting to enter overland via any of Switzerland's neighbours.

The proposal was passed by a majority of cantons (states) and by rural and German-speaking parts of the country, and by the city of Zurich. But most urban and French-speaking areas rejected it.

Foreigners exceed 20 per cent of the total population of Switzerland, where the UN refugee convention was drawn up. The populist Swiss People's Party, like other far-right parties across Western Europe, has given a strident voice to growing feelings of xenophobia.

The proposal on which the Swiss voted yesterday would have meant asylum-seekers paid for a plane ticket out of the country and supported themselves until their application was processed. Critics said only wealthy refugees would gain admission.

The People's Party is led by Christoph Blocher, a charismatic multimillionaire businessman who controls a huge chemicals empire. His party is a junior partner in the ruling coalition, but the Swiss penchant for deciding issues by referendums has given the self-made Mr Blocher the opportunity to wield considerable power.

His view on immigrants are of long standing. Three years ago he declared: "Ninety per cent of immigrants arriving here are abusing the asylum system because they find it attractive, much more attractive than Britain. We have to correct this so the abuse of our asylum laws stops."

About 20,000 people apply for asylum in Switzerland every year, of whom about 10 per cent are recognised as refugees. Spending on such people costs the government a billion Swiss francs a year, about £430m.

The People's Party obtained the 100,000 signatures required to call the referendum in 1999, when refugees fleeing the war in Kosovo poured into the country.

The tough proposal was condemned by Ruth Metzler, the Justice Minister, who said it would be expensive to enforce and counter-productive, and would damage Switzerland's humanitarian tradition.