GENEVA: Switzerland's knife-edge decision to curb immigration from the EU raises major problems, heavyweight Germany warned on Monday (Tuesday in Manila), as Swiss authorities moved to limit the damage to ties with the 28-nation bloc.

As both sides mulled the fallout from Sunday's referendum in which 50.3 percent of voters decided to void a pact giving equal footing to European Union citizens in the Swiss labor market, Germany said resolving the issue would be an uphill task.

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