Wolf Linder

Switzerland and the EU: the puzzling effects of Europeanisation without institutionalisation

Switzerland is not a member of the EU and in 1992 refused to join the European Economic Area (EEA) treaty in a popular vote. A conservative majority preferred to keep utmost national autonomy, and consequently, relations between the EU and Switzerland are regulated by a series of bilateral treaties. This process of Europeanisation without institutionalisation has led to profound changes of Swiss politics over the last two decades. While many effects of economic liberalisation and internationalisation are similar to those found in EU countries, some specific problems like the acceleration of immigration present rising social conflict. Social cleavages between urban and rural regions, and between capital and labour are deepening. The continuous rise of the conservative nationalist Swiss Peoples Party and the growing polarisation between the political Right and Left have put the traditional political culture of accommodation and power sharing at risk. Twenty years after the No-vote on the EEA-treaty, Switzerland is a divided country. Why do Swiss politicians still practice consensus democracy, and what does the divide mean for the future relations between the EU and Switzerland?

Building a Multicultural Society by Political Integration

Switzerland today seems to be one of the most privileged countries in the world. When its direct neighbours were engaged in the destructive conflicts of the First and Second World Wars, Switzerland survived as a successfully neutral and independent small nation in the heart of wartorn Europe. At the beginning of this century its inhabitants are enjoying one of the highest living standards among industrialised countries. Switzerland lacks natural resources, but Swiss industry produces high-quality goods: precision machines and tools, watches, electronic devices, pharmaceutical and chemical products, and services such as banking, insurance and tourism, which are appreciated all over the world. With high import and export rates Switzerland is strongly dependent on the European and world markets yet has maintained its ability to compete in many fields. Although Switzerland’s population is small, the country can compete in exports and foreign investments with the largest of industrialised nations. In exported goods Switzerland ranks tenth in the world and among foreign investors it lies fifth. If we consider bank credits to foreign countries, we find that Switzerland ranks as high as third. Once a poor region of mountain farmers, it has become a rich nation and is seen as a model case of successfully finding a profitable niche in world markets (Boxes 1.1 and 1.2).

Consensus Democracy: The Swiss System of Power-Sharing

In the earlier chapters, we have already mentioned some elements of power-sharing, consociational or consensus democracy which the Swiss call ‘system of concordance’. Its two main characteristics are the following: First, the executive is composed of a grand coalition with the objectives to let participate all important political forces in governmental politics, and to share political responsibilities with all these forces. Secondly, decision-making in a grand coalition implies permanent negotiation and striving for compromise. Power-sharing or consensus democracy is not unique; forms of power-sharing can be found in countries as different as Belgium, the Netherlands, India or South Africa. Power-sharing democracy is a contrasting type to the predominant, Anglo-Saxon model of majoritarian democracy, in which the government is composed of a simple majority, holds all power and imposes its decisions to the minority. I shall come back to this topic in the last chapter. Here, I want to describe the Swiss power-sharing institutions, their development, their functioning, their strong points and weak spots. If you ask the Swiss today why they like power-sharing, a typical answer is: ‘I find it fair that all languages, all regions and political parties are represented in the government. This is better for our country because Switzerland needs political compromise rather than majority decision.’ History tells us, however, that in 1848 the Swiss constitution was partly conceived as a majoritarian democracy.

Direct Democracy and Power-Sharing

On 27 November, 1989 the New York Times reported the following news from Switzerland: Swiss Reject Plan to Scrap Army Geneva. Switzerland today voted to keep its army as the best way of maintaining its neutrality. An initiative to abolish the army was turned down by a margin of almost two to one. “A majority of the states rejected it”, a Government spokesman said. Only in Geneva and Jura did the majority vote in favour of the proposal. The initiative, forced by a petition signed by 111 300 citizens, set off a fierce national debate on the usefulness of an army in a small neutral country.