Political System
Articles about Switzerland
Switzerland: Political system
This post continues my series of articles about Switzerland.
I hope that if you continue reading these posts, you will eventually gain a solid general understanding of Switzerland, and particularly what it might offer to you. I believe it is worthwhile to take the time to learn and understand this country better.
In this post, I would like to tell you something about Switzerland's political system - but not about politics. I believe it is beneficial to have a basic understanding of the political system, especially if you are considering living, working, or doing business here.
Before we get started, I want to add that in my private discussions with locals, I have found that they are always proud of their country and its system. This proud sentiment is expressed in a healthy way that, in my experience, does not advocate any confrontation.
This pride is perhaps best evidenced by the frequent display of Swiss flags, which you can see almost anywhere and on any day. In some grocery stores, Swiss products are clearly marked on the price tags, with a visible Swiss flag helping you select local quality. In villages, people celebrate together and proudly contribute to the well-being of their community. In Swiss cities, you generally see fewer people who have dropped out of the system, thanks to a strong social safety net and many opportunities for personal and professional development. Overall, the environment in Switzerland supports finding the joy of life.
You may want to study further World Bank data on GDP per capita, various quality of living surveys, World Economic Forum economic competitiveness and innovation reports, or various tax advantage reports—all of which should support the views expressed here.
Who would not be proud of this all?
But to avoid painting too rosy a picture, challenges and inequalities still exist here, as they do everywhere in the world. Some support measures may be less generous compared to other countries, and there may be differences between villages. Please note that I can only speak from my own experience.
When looking at any governance system from a higher level, there is a trade-off between agility and stagnancy. I feel businesses and private individuals eventually prefer more stable systems where they can plan their future better and feel safe - or live a fearless life. Generally speaking, unstable and constantly changing systems are known to generate more stress, which can cause its own problems in the long term. I think Switzerland has found a very nice, golden midway in this regard.
Ok, finally to the topic itself - Switzerland political system
Decentralisation
Switzerland is known for its unique and highly decentralised political system. This country operates under a system of direct democracy and federalism. Federalism binds a group of states or regions into a larger, non-centralised, superior state while allowing them to maintain their own political identities and a certain level of decision-making autonomy.
According to some sources, Switzerland is neither a pure confederation nor a pure federation in the traditional sense, but it operates under a unique system that combines elements of both. Did you know that the Swiss symbol “CH” on cars comes from the Latin words “Confoederatio Helvetica"? Latin is used to avoid favouring any of the four official languages of Switzerland. This perhaps comes from historical origins as a confederation of states; however, now it has been said to operate more like a federal state.
In Switzerland, decentralisation has proven to be both resilient and effective over the years. I would like to pick two important examples of effectiveness: the education system and healthcare. I will write more about these systems later because I believe they deserve their own article.
The Federal Structure
Switzerland is comprised of 26 cantons, each having own constitution, government, and laws. This structure allows significant autonomy at the canton level. The cantons vary greatly in size and population, but each has a strong voice in the national legislative process. The biggest cantons are today:
By population: Zurich, Bern and Vaud,
By area: Graubunden, Bern and Valais, and
By GDP: Zürich, Geneva and Basel-Stadt.
The federal government is the highest governing body in Switzerland. It is responsible for matters that affect the entire country. The federal level structure consists of the Federal Assembly (also known as the Swiss Federal Parliament), the Federal Council, and the Federal Administration. The primary function of the Federal Assembly is to create and pass federal laws. They handle issues such as national defense, foreign policy, federal taxes, national infrastructure, immigration, and national social security systems like pensions and health insurance.
Cantonal governments are responsible for many areas of public policy within their territories. Each canton has its own constitution and the freedom to legislate on matters not reserved for the federal government. Examples include education, where cantons set curricula and manage schools, and healthcare, where cantons oversee hospitals and public health initiatives. Local policing, cantonal roads, and taxes are also managed at this level. Despite variations among cantons, I have the impression that these services are generally managed to high standards across all cantons. For example, local roads exhibit a high level of consistency in quality across the country.
Municipal Governments: are the smallest administrative units and provide the most direct interaction with citizens. From an individual inhabitant's point of view, this is one of the great advantages; many government services are available directly from the local municipal government office, quite often close to you, without queuing. Matters related to practical immigration, registrations, integration programs, residence permits, basic schooling, and more are handled efficiently in your neighbourhood. Some services, like vehicle registrations, may require a visit to the cantonal traffic office. In both cases, according to my experience, things always work smoothly, supportively, and very politely. There may be some practical differences between cantons, though.
The essence of Swiss politics is Direct Democracy.
Direct democracy empowers citizens to have a direct say in political decisions through popular initiatives and referendums. Direct democracy in Switzerland is implemented through these mechanisms, collectively referred to as popular votes. In other words, the voting population is the sovereign power and has the final say at all levels of government and on all matters.
Popular initiatives allow citizens to propose changes to the constitution. They require at least 100,000 signatures to be collected within 18 months to qualify for a nationwide vote. A successful initiative needs a majority of both the popular vote (total votes from all eligible voters) and the cantonal votes (majority support from more than half of the cantons, with each canton’s decision based on its own voters).
Referendums may be mandatory or optional. Mandatory referendums are required for constitutional amendments, significant international treaties, and certain key federal laws. Optional referendums allow citizens to challenge federal laws, as well as cantonal and municipal decisions or laws, by collecting at least 50,000 signatures within 100 days of the law’s publication. A referendum requires only a majority of the popular vote, not the cantonal vote.
For instance, in September 2024, people will vote on the ‘Limitation Initiative’ and the ‘Responsible Business Initiative’. The former aims to impose stricter controls on immigration, while the latter focuses on holding Swiss companies accountable for their business practices abroad, promoting responsible global impact.
Now you may ask, why is Switzerland not part of the EU? In my view the answer is pretty simple: opinion was openly and publicly asked from the people and the majority of the people just did not want it. Key reasons for the resistance are sovereignty concerns, economic concerns, and neutrality. Instead, Switzerland focuses on bilateral relations and agreements.
Generally speaking, I think the Swiss system should keep people highly motivated and engaged in the political process and gives them a strong sense of ownership and responsibility over national and local policies. It encourages them to stay informed about political issues and to actively participate in shaping the direction of their country. Of course, your opinion won’t always prevail, and this may cause some dissatisfaction. Some may consider it a “Tyranny of the majority”. In my opinion, this is not an accurate description due to several safeguards and mechanisms that are in place to protect minority rights and ensure balanced representation. The decentralised system also helps in this sense.
Consensus and Collegiality
Swiss politics is characterised by a strong emphasis on consensus and collegiality. The Federal Council, which includes members from multiple political parties, strives to make decisions through consensus. This approach helps maintain political stability and unity in a country with diverse linguistic and cultural regions. An example of this is the annual rotation of the presidency of the Federal Council. Each year, one of the seven members is chosen to serve as the president, ensuring that all major political parties and regions have a turn at leadership, promoting inclusivity and balanced representation. In Switzerland, the approach is more collaborative and contrasts with the more adversarial government/opposition dynamics seen in Finland, UK and Germany as an example. I think this system should at least on theory serve citizens better, as it lacks of readily built-in opposition structure causing friction and adversarial environment.
Political Stability and Innovation
I feel Switzerland’s political stability is one of its greatest strengths, contributing to its attractiveness as a business hub. The country’s ability to adapt and innovate within its political framework has allowed it to address contemporary challenges effectively. For example, Switzerland has been proactive in integrating digital technology into its political processes, offering e-voting options to facilitate broader participation. The current e-voting system is produced locally by Swiss Post, and they have published the source code for public access and scrutiny. This allows experts worldwide to test and review the system, enhancing transparency and trust in the system.
If you are a software professional, I understood that you might be able to review the code here: https://gitlab.com/swisspost-evoting Please note that I cannot judge if the system is 100% secure against fraud, but it gave me a good impression that there is at least an attempt to achieve high security.
Challenges
While the Swiss political system has many strengths, it also faces challenges. Balancing regional autonomy with national coherence, managing immigration and integration, and addressing environmental concerns are examples of ongoing issues. However, Switzerland’s commitment to direct democracy should ensure that citizens remain actively involved in finding solutions together. As always, time will reveal the deeper truth. Sometimes systems are renewed through the collapse of old systems; other times they are developed proactively and collaboratively. Perhaps Switzerland represents more of the latter option
Conclusion
Switzerland’s political system is a fascinating blend of federalism, direct democracy, and consensus-driven governance. It empowers its citizens, maintains stability, and fosters a high degree of political engagement. No governance system is perfect, but various metrics from multiple sources provide strong evidence of the robustness and health of the Swiss system.
In the next article, I will talk about understanding Switzerland’s tax system