Swiss voters are deciding on Sunday in a referendum whether to extend a labor treaty with the EU to open their country's labor market to workers from the 10 new EU members.

Latest opinion polls left the referendum on a knife-edge, showing 50 percent in favor, 38 percent against, and 12 percent unsure. And the undecided voters are more likely to side with the "no" camp.

Those supporting free movement of workers from the 10 new EU members say the extension of the treaty can lead to economic growth, while opponents argue it can open the doors to a flood of immigrants.

Under a current set of treats between Switzerland and the EU, citizens from the original 15 EU members have the right to work in Switzerland, which stands steadfastly outside the EU.

In view of the EU's expansion in May 2004, the government favoring closer ties with the EU has recently proposed a initiative to extend the labor treaty to the new EU members.

The parliament approved the initiative, but far-right wingers and some on the left opposed the proposal, arguing cheap workers will flood in and take jobs from locals.

The initiative stipulates that Switzerland and the new EU member countries will give mutual access to their labor markets but only after a period of transition which will include the use of quotas.

Parliament has also endorsed a set of additional measures aimed at preventing a massive influx of cheap laborers.

The government had also warned that a "no" comeout would damage Switzerland's image and seriously hinder the country's export-driven economy.

Source: Xinhua