Copenhagen is one of the most livable cities in the world, also thanks to its thriving economy.Image: LightRocket
Like Switzerland, economically thriving EU countries such as Denmark and Ireland are confronted with a shortage of skilled workers. Some of their recipes differ significantly.
May 16, 2026, 06:14May 16, 2026, 06:14
The cliché persists: Switzerland is an island of prosperity in a fractious, over-regulated European Union. It is often spread by EU opponents in the voting campaign for the 10 million initiative and in the debate about Bilateral III. It is true that our immediate neighbors are struggling with high levels of debt and stagnation.
However, the EU consists of 27 member states, some of which are extremely successful economically. Switzerland is neither the richest country in Europe nor the one with the strongest population growth, as is sometimes reported in the local media. As a result, the shortage of skilled workers and personnel is also a major issue in these countries.
Many Portuguese work in the construction industry in Switzerland, but in the last ten years more have left than come.Image: KEYSTONE
What’s interesting is that they deal with it differently. We limit ourselves to countries that are comparable to Switzerland. Mini-states that are not formally part of the EU are not an issue, nor are large countries with robust growth such as Poland and Spain, which are struggling with the transition from a country of emigration to a country of immigration.
Denmark
Like Switzerland, the Scandinavian country occupies top positions in the economic and innovation rankings. At the same time, Denmark is famous and notorious for its harsh migration and, above all, asylum policies. The striking goal of “zero asylum seekers” was continued after the change from a (right-wing) bourgeois government to the Social Democrats.
For a long time, the Danes managed to maintain their economic success with relatively moderate population growth (a year ago exceeded the six million population mark), not least thanks to progressive family and social policy. In Denmark, full-time working parents are the rule and not the exception.
The retirement age will also be increased to 70 by 2040. Nevertheless, Denmark is not spared from demographic change and an acute shortage of personnel. That’s why the government has its migration policy relaxed very discreetlywith a lower minimum wage limit for immigrants from third countries and in “shortage sectors” such as healthcare.
Ireland
The low-cost airline Ryanair is a symbol of Ireland’s economic success.Image: keystone
More than eight million people lived on the Emerald Isle in the Atlantic in the first half of the 19th century. With the devastating famine of the 1840s and mass emigration to England and North America, there was a massive decline. Even afterwards, Ireland remained a poor country of emigration for decades.
In the Republic of Ireland (excluding the British north) the low point was reached in the early 1960s with fewer than three million inhabitants. From the 1990s onwards, thanks to low taxes, Ireland became a “Celtic tiger” and one of the richest countries in the world, with a large part of the economic output coming from foreign corporations (especially US tech companies).
The population is also growing at 1.6 percent annually, faster than in Switzerland (around 1 percent). Around 5.4 million people currently live in the Republic of Ireland. The downside is an acute housing shortage, especially in the greater Dublin area. It came in 2023 This, among other things, led to riotsbut right-wing populists have so far had little support.
Luxembourg
An EU founding member is even wealthier than Ireland and Switzerland: little Luxembourg. This is primarily thanks to the flourishing financial center. The “Tages-Anzeiger” has the Grand Duchy referred to as “Switzerland on steroids”.. The population has grown by 1.5 percent annually, to around 680,000 inhabitants.
Can free public transport work?
Video: srf/Roberto Krone
In addition, there are over 200,000 cross-border commuters who commute from the neighboring countries of Belgium, Germany and, above all, France. Because living in Luxembourg is very expensive, there are many locals among them (a kind of “Zugization” in Letzeburg). The small size of the country makes this easier, but this creates significant traffic problems.
The access roads are notoriously congested, which is why the government took a “drastic” measure in 2020: public transport is free – except in 1st class. It’s primarily about combating symptoms, but growing pains and density stress are hardly an issue in Luxembourg. The right-wing populists are politically – still – almost irrelevant.
Netherlands
The Netherlands was a major trading and colonial power when Switzerland was still a farming country exporting cheese and mercenaries. Today they are still among the wealthy EU countries. This is reflected in the population: twice as many people, around 18 million, live in an area almost the same size as Switzerland.
In principle, the flat topography offers space for this, but there has been intensive discussion in recent years whether the Netherlands is “full”.. An analysis in the “Financial Times” caused a stir, according to which the Netherlands was the first country to do so have reached the limits of growth. The main problem is the severe housing shortage.
Rob Jetten also won last year’s elections with a promise to build ten new cities to combat the housing shortage.Image: keystone
Politically, the country, which has long been known as tolerant, has moved to the right. Various populist groups abound in the fragmented party landscape of the Netherlands. The new left-liberal head of government Rob Jetten therefore made a big promise in last year’s election campaign: He doesn’t want anything less than Build ten new, sustainable cities.
Portugal
Like Ireland, Portugal has long been one of Europe’s poorhouses. Under the regime of the dictator António de Oliveira Salazar – an ascetic, devout Catholic – the economic boom after the Second World War was “overslept”. The result was strong emigration, from which Switzerland benefited not least.
That has changed. Portugal has experienced significant growth in recent years and is now “economically in the fast lane”wrote the NZZ last year. Despite investments, the infrastructure and the housing market can hardly keep pace, especially in the Lisbon area. That gives the right-wing far-right party Chega.
The economic boom led to an interesting phenomenon, especially in Switzerland: from 2017 to 2022 More Portuguese moved away than immigratedmostly to their homeland. Some did this when they were retired, others because of better (job) prospects. Since then there has been a turnaround, but the immigration surplus is relatively small.
The example of Portugal shows that the free movement of people with the EU is not a one-way street. It can definitely go in the opposite direction. Italy is also making greater efforts to recruit medical staff from working in Switzerland. It is an aspect that is discussed far too little in the debate on the 10 million initiative.
It is likely to worsen due to the aging population across Europe. Switzerland may offer high wages, but it is also an expensive country with rising rents and health insurance premiums. There is no guarantee that we will always have the best cards when competing with successful EU countries for sought-after skilled workers.
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