A bus passes by an election poster, center, from the nationalist Swiss People’s Party, demanding a stop for immigration to Switzerland. Swiss voters passed the proposal in a referendum on Sunday. Anja Niedringhaus/AP

European leaders and Swiss captains of industry on Monday condemned the results of a referendum held over the weekend in which voters narrowly passed a proposal limiting the number of foreigners – from war refugees to EU citizens – allowed to live and work in Switzerland.

The vote on Sunday was initiated by the right-wing Swiss People's Party (SVP), which has tapped into fears by some that Swiss culture is being eroded by foreigners, who account for nearly a quarter of the country's 8 million people.

"Switzerland has rather damaged itself with this result," German Foreign Minister Frank-Walter Steinmeier told reporters on arrival in Brussels for a meeting with his EU colleagues.

"Switzerland must realize that cherry picking with the EU is not a long-term strategy."

"There will be consequences, that's clear," added Luxembourg Foreign Minister Jean Asselborn. "You can't have privileged access to the European internal market and on the other hand, dilute free circulation."

Free movement of people and jobs within its borders is one of the fundamental policies of the European Union, and Switzerland, while not a member of the 28-nation bloc, has participated under a pact with Brussels. Since 2002, Swiss and EU citizens have been able to cross the border freely and work on either side as long as they have a contract or are self-employed.

EU officials noted on Monday that the free movement treaty is part of a package of seven agreements that stand or fall together. The accords also cover economic and technological cooperation, public procurement, mutual acceptance of diplomas and licenses, agricultural trade, aviation and road and rail traffic.

In an interview with RTL radio, French Foreign Minister Laurent Fabius described the EU's 1999 agreement with Switzerland as a "guillotine clause," saying that if one element is challenged "then everything falls apart."

"We simply can't accept these kinds of restrictions, the ones that were approved yesterday," said European Commission spokeswoman Pia Ahrenkilde. "This will clearly have implications for the rest of the agreements we have with Switzerland."