b'markets do not apply to Switzerland. Would the UK be better in that position or not?Switzerland does not contribute directly to the EU budget. Its contributionsto social and economic cohesion projects are relatively small. However, since 1991 Switzerland has contributed around 2.7 billion to develop and stabilise Eastern Europe and the Balkans.45 This contribution was made legally binding by the 2006 Eastern Europe Cooperation Act, and further approved by Swiss voters in a national referendum. Importantly, the funds are paid to Eastern European countries directly. As a result, and relatively unlike the UK, Switzerland retains a degree of control over how its money is spent.46 Switzerland is now an Associate member of the Schengen Agreement on the free movement of persons. In this context, however, these are restrictions. In 1999, Switzerland signed a Bilateral Agreement so that citizens of Switzerland and the EU had the right to choose their place of employment and/or residence within thoseof 2017, there were over two million legally national territories. For those wishing to liveresident foreigners in Switzerland, in Switzerland, a valid employment contract,representing a massive portion of the or self-employment, or proof of financialcountrys overall population of eight million. independence together with full health insurance coverage were preconditions.Switzerland had insisted on a safeguard The free movement of persons alsoclause when the bilateral agreement on the encompassed the mutual recognition offree movement of persons was drawn up professional qualifications and coordinationwith the EU; this was to allow the opening of national social security systems. 67%of Swiss borders to be phased in. Further, of Swiss voters said Yes in 2000 and thethe safeguard clause could temporarily halt bilateral agreement became effective in 2002.residence and work permits for some EU The bilateral agreement was then extendedcitizens. via further referenda to the new members of the EU from Eastern Europe in 2006 and toSwitzerland has so far invoked the safeguard Bulgaria and Romania in 2009.clause in order to restrict immigration three times. In April 2012, the safeguard clause However, unrestricted immigration provedwas invoked and applied to the 28 EU a problem for Switzerland. The Swissmember states. In April 2013, the restriction population rose by 4.6% in 2013 alone,was extended for a further year, and applied mostly due to immigration.47 At the endto the EU member states also for a year. Switzerland then introduced new quotas and limited long-term work permits available82'