History of Switzerland

Swiss History

Switzerland followed a much different history from that of its European neighbors, mostly because no ruler since the 14th century was able to claim more than a theoretical lordship over the small, yet well organized group of cantons that comprised Switzerland. Between the years 1315 an 1388, the Swiss military inflicted a series of crushing defeats on the army of the Dukes of Austria, resulting in the growth of Switzerland from three to six cantons. This location left the Confederacy of Switzerland well placed to interfere in the continual power struggles of the period, and the reputation of their army – probably the most powerful in Europe at the end of the 15th century brought fear to their enemies.

A Reformation started by Zwingli (later, Calvin) led to a division in Swiss society between the followers of the reformer and the Catholics. The dividing controversy significantly reduced the Swiss influence in Europe and the Confederation was fortunate to survive a series of defeats. Swiss independence from the Holy Roman Empire was one of the results of the Peace of Westphalia (1648) that brought closure to the Thirty Years’ War, in which Switzerland had suffered greatly. During the next century, very little progress was made towards a formal union of the cantons, allowing religious controversy to disrupt their progress. The Protestants established a dominant influence after the Second Villmergen War in 1712.

The French Revolution and the drama of the Napoleonic Empire resulted in a confusing period for Switzerland, with much of the land annexed by France. Independence was once again restored by the Congress of Vienna in 1815 (establishing the principle of the perpetual neutrality of Switzerland) but the lack of any central power continued to work against political unity and economic growth of the cantons. Finally by the end of the 19th century the federal government began to be truly effective, although the cantons continued to enjoy wide powers and do so to this day. Domestic politics have been dominated by four political parties since 1945 – the Social Democrats, Radical Democrats, the Swiss People’s Party and the Christian Democratic People’s Party.

The most recent general election in October 2003 was notable for the substantial gains made by the Swiss People’s Party (SPP), which continued to move sharply to the right by building its electoral position by exploiting fears about the level of immigration into Switzerland. The outcome of this election - in which the nationalist People's Party won the highest share of the vote - could alter the make-up and tone of the country's Federal Council for the first time since 1959. The SPP, originally a relatively small party based in eastern Switzerland, has held a single seat in Switzerland's cabinet since a power-sharing deal was agreed upon 44 years ago. It is seeking to increase its representation in the country's seven-member power-sharing cabinet. The Social Democrats, along with the centrist Free Democrats and centre-right Christian Democrats, have two seats each. But support for the SPP has grown in recent years because of its anti-immigrant stance.

The four parties have governed the country in various coalition combinations. The principal long-term question in Swiss politics has been relations with the European Union, which accounts for 50 per cent of Switzerland’s trade. The erosion of cantonal power – a central feature of the Swiss political system – immigration levels and, most of all, the loss of the country’s cherished neutrality were the most voiced concerns. The division was also apparent from the result of the referendum on Swiss membership of the European Economic Area, a free-trade agreement between the EU and EFTA (of which Switzerland is a member), held in December 1992. Opponents of the pact narrowly won.

There is a clear cut age division among the people: younger people tend to favor closer links with Europe; the older tend to place more value on neutrality. Given Switzerland’s continuing prosperity, economic arguments are rarely heard, although there is a broad acceptance – especially in the financial community – that the Euro will become a standard feature of commercial life in the near future. In 2001, two years after the inauguration of the Euro, the Swiss people voted – again in a referendum – to enhance links with the EU while endorsing a promise by the major parties that they would never sanction to join the EU. This appears to have put an end to the debate for the time being.

Banking is the country's most famous industry but the world economic slowdown has had an impact. The tight bank secrecy laws have led to accusations from foreign countries that Swiss banks are used by wealthy individuals wishing to keep their riches away from domestic tax authorities. There are also fears that they could provide a haven for tax dodgers and money launderers. These factors have led to calls for reform of the laws.

Government

The constitution dates back to 1874. There are 26 cantons (three of which are subdivided) and more than 3000 communes. The Federal Assembly is bicameral, comprising a Council of State (upper house) with 46 members and a 200-strong National Council (lower house) whose members are elected every four years. Executive power is vested in the seven-member Federal Council, elected by the Assembly and headed by an annually elected president. Whatever the legislators decide, however, the Swiss people are aware that they can take the issue to referendum by raising 100,000 signatures. Popular referenda are a routine feature of Swiss political life.

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