The Swiss System

Originally a Bilibili video

When you think about Switzerland, what comes to mind? Mountains, lakes, chocolate, Rolex? I’ve lived here for more than three years now. And as I’ve learned more about the country, what I find most fascinating isn’t the scenery — it’s the system.

Three Tiers

Switzerland is structured on three levels. At the top is the federal state — the confederation — responsible for foreign policy, national security, customs, immigration, and currency.

Below that are the cantons. Cantons are almost like independent states. They manage their own taxes, education, police, and healthcare. Different cantons have different tax rates, which is why a lot of high-income earners live in low-tax cantons around Zürich rather than in the city itself.

And below the cantons are the municipalities — more than 2,000 of them. The city of Zürich is one, managing local schools, fire services, and waste management.

Direct Democracy

This is where it gets really interesting. Switzerland has two mechanisms that give citizens direct power over the law.

The optional referendum works like a brake. If the parliament passes a law and people aren’t happy about it, they can collect 50,000 signatures from Swiss citizens within 100 days. Once they have them, a national vote is triggered. If more than half vote no, the law dies.

The popular initiative is the accelerator. If you think an issue is important and the government isn’t addressing it, you can propose the change yourself. Form a committee, draft the proposal, and collect 100,000 signatures within 18 months. That forces a national vote.

What’s interesting is that sometimes the government will respond to an initiative with a counter-proposal — a more moderate version. If their counter-proposal becomes law, the initiative may become unnecessary. Other times, the government simply recommends voting against it and explains why.

For a popular initiative to pass, it needs a double majority: more than 50% of the popular vote, and more than half the cantons voting yes. The cantonal requirement exists so that larger cantons can’t bully smaller ones. Once it passes, the parliament implements it — which can take a long time.

The result is that laws in Switzerland don’t change fast. But this slowness creates stability. For things to change, there has to be a lot of discussion.

Marriage for All

This case shows how slow things move. In 2013, a parliamentary initiative was introduced to legalize same-sex marriage. Years of debate followed — including questions like whether lesbian couples should have access to sperm banks, and concerns about children growing up without knowing their father.

After seven years, the parliament finally passed the law. But opponents gathered 50,000 signatures to force a referendum. In the end, more than 64% voted in favor, and all 26 cantons approved. The law came into effect on July 1st, 2022 — nine years after the initiative was introduced. Slow, but with overwhelming democratic legitimacy by the end.

The E-ID Law

In 2021, the government proposed a digital identity law, but wanted private companies — banks and insurance firms — to manage the digital identities. The Swiss people weren’t happy. A referendum was held, and more than 64% voted against it. The government had to start over and eventually built a state-run system instead. The brake worked exactly as designed.

COVID-19

What happens when something can’t wait? During COVID, the government used emergency powers to pass laws quickly. This really angered some Swiss people — they felt rushed and ignored. But even so, the government still held referendums on the laws after the fact. Three referendums in 2021, 2022, and 2023. Interestingly, each time more than half the people voted to uphold the government’s law. Still, many Swiss remain unhappy about how it was handled.

Immigration

This one is still unfolding. In 2014, a popular initiative to stop mass immigration passed with 50.3% — barely. This caused a huge headache for the government because Switzerland, while not in the EU, has bilateral treaties with it. These treaties are all-or-nothing: you can’t terminate the free movement agreement without losing access to the single market.

The parliament responded with a very light implementation — requiring companies to consider Swiss candidates first when unemployment in a sector is high. This didn’t satisfy the Swiss People’s Party, which launched a new initiative: “No to ten million,” setting a hard population cap. If 9.5 million is reached, family reunification programs would stop. At 10 million, the EU agreements would be terminated.

Studies suggest this would push Switzerland into recession. The initiative already has the required signatures and will likely go to a vote next year. Given that immigration has only increased since the last vote passed, I think it’s very likely to pass again. This will have a very big impact on Switzerland.

I’ll be following this closely.