|queen =
|monarch-raw =
|president =Alain Berset (2018)Karin Keller-Sutter
|president-raw =
|chancellor =
|pm-raw =
|area =41,285 sq mi
|pop =8,121700,830 000 (July 2015 est.2020)<ref name="CIA">[https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html Switzerland - The World Factbook]. ''CIA''. Retrieved August 16, 2016.</ref>
|pop-basis =
|gdp =$482.3 billion 700,000,000,000 (2015 est.2020)<ref name="CIA"/>
|gdp-year =
|gdp-pc =$5880,600 460 (2015 est.2020)<ref name="CIA"/>
|currency =Swiss franc
|idd =
}}
'''Switzerland''' is a one of the wealthiest country in the world, located in [[Central Europe]] between [[Germany]], [[Italy]], [[France]], and [[Austria]]. Its capital is [[Bern]], and its largest city is [[Zurich]]. Four languages have been designated as official: [[German language|German]], [[French language|French]], [[Italian language|Italian]], and [[Romansh language|Romansh]] (a dialect spoken by a small minority, closely related to [[Latin]]). Switzerland was traditionally founded on [[Swiss National Day|August 1, 1291]], and it gained independence from the [[Holy Roman Empire]] in 1499. It is a confederation of 26 cantons with elements of direct democracy in that all laws passed by Parliament can be overturned by arranging a [[referendum]]. Switzerland is also well known for having strict [[Political neutrality|neutrality]]. In April 2023, Switzerland rescinded all recommendations for the [[COVID vaccine|Covid vaccine]].<ref>https://www.medicaldaily.com/switzerland-no-longer-recommends-covid-19-vaccination-heres-why-469321</ref>
Among [[Western Europe]]an countries, Switzerland has a relatively low level of belief in the [[theory of evolution]], and a relatively higher level of [[prayer]] and church attendance.<ref>https://www.swissinfo.ch/eng/god-continues-to-lose-believers-in-switzerland/46223632</ref>
==People==
Switzerland sits at the crossroads of several major European cultures, which have heavily influenced the country's languages and cultural practices. Switzerland has four official languages—German, French, Italian, and Romansch (based on Latin and spoken by a small minority in the Canton Graubunden). The [[German]] spoken is predominantly a Swiss dialect, but newspapers and some broadcasts use [[High German]]. Many Swiss speak more than one language. [[English]] is widely known, especially among professionals.
According to the Swiss Federal Office of Statistics, the population in Switzerland increased to an estimated 7,523,934 by July 2006. Three-quarters of this growth was attributed to migration. Switzerland naturalized 22% more people in 2006 compared to 2005, totaling 46,700 persons. By the end of 2006, there were 850,000 foreigners working legally in Switzerland. The rise of German immigrants, as confirmed in earlier reports, increased by 10.6% (+10,000). Portuguese workers also increased by 7.4% (+7000). On the other hand, the number of the Italians continued to drop by –3.2% (-5000). The major ethnic groups are: German 65%, French 10%, and Italians 6%.
Almost all Swiss are literate. Switzerland's 13 university institutes enrolled 111,100 students in the academic year of 2004-052004–05. About 25% of the adult population holds a diploma of higher learning.
The Constitution guarantees freedom of worship, and the different religious communities co-exist peacefully. While the majority of the Swiss population is still nominally Christian, like much of Europe, the country is quickly becoming secular. Despite this trend, [[Evangelical Christianity]] has seen rapid growth in Switzerland recently.<ref>Kumar, Anugrah (December 5, 2011). [http://www.christianpost.com/news/evangelical-churches-growing-fast-in-switzerland-63962/ Evangelical Churches Growing Fast in Switzerland]. ''The Christian Post''. Retrieved October 6, 2016.</ref>
====Federal Council Membership====
The Swiss Federal Council, as of 20182020:
*Environment, Transport, Energy and Communications — Doris Leuthard (CVP)*Finance — Ueli Maurer (SVP) — Vice President for 2018*Justice Environment, Transport, Energy and Police Communications — Simonetta Sommaruga (SP)*Economic Affairs, Education and Research — Johann Schneider-Ammann (FDP)President for 2020*Home Affairs — Alain Berset (SP) — President for 2018*DefenceEconomic Affairs, Civil Protection Education and Sports Research — Guy Parmelin (SVP)— Vice President for 2020
*Foreign affairs — Ignazio Cassis (FDP)
*Defence, Civil Protection and Sports — Viola Amherd (CVP)
*Justice and Police — Karin Keller-Sutter (FDP)
*Federal Chancellor — Walter Thurnherr (Ex Officio, CVP)
===Judiciary===
[[File:Lausanne, Switzerland.jpg|thumb|The Federal Tribunal of Switzerland is based in Lausanne (pictured), in the Canton of Vaud.]]
The administration of justice is primarily a cantonal function. The Federal Tribunal is limited in its jurisdiction. Its principal function is to hear appeals of civil and criminal cases. It also hears complaints of violations of the constitutional rights of citizens and has authority to review cantonal court decisions involving federal law as well as certain administrative rulings of federal departments. However, it has no power to review federal legislation for constitutionality. The Tribunal's 30 full-time and 30 part-time judges are elected by the Federal Assembly for 6-year terms. The Federal Criminal Court is the court of first instance for criminal cases involving organized and white-collar crime, money laundering, and corruption, which are under federal jurisdiction. The Court’s Court's 11 judges are elected by the Federal Assembly for 6-year terms.
===Local Government===
In recent years, Switzerland has seen a gradual shift in the party landscape. The rightist Swiss People's Party (SVP), traditionally the junior partner in the four-party coalition government, more than doubled its voting share from 11% in 1987 to 22.5% in 1999, and finally to 26.6% in 2003, thus overtaking its three coalition partners. This shift in voting shares ended the 44-year old "magic formula," the power-broking agreement of the four coalition parties, and gave a second seat in the 7-person Swiss cabinet to the Swiss People's Party at the expense of the Christian Democrats, now the weakest of the four major parties. For the first time in Swiss history, the SVP has two seats in the government, reflecting its new status as Switzerland's most popular party. As of the 2015 federal elections, the SVP received 29.4% of the popular vote and has 65 seats in the national council, records for the party.<ref>{{cite news|title=Anti-immigration party wins Swiss election in 'slide to the Right'|url=https://www.telegraph.co.uk/news/worldnews/europe/switzerland/11939953/Anti-immigration-party-wins-Swiss-election-in-slide-to-the-Right.html|accessdate=19 October 2015|work=The Daily Telegraph|agency=Reuters|date=19 October 2015}}</ref>
On December 10, 2003, [[Christoph Blocher]]—a self-made industrialist and main figure of the right-populist Swiss People's Party known for his strong opinions on asylum and migration and law and order issues—was elected to the cabinet by parliament, replacing the incumbent Christian Democrat Justice and Police Minister Ruth Metzler. The parliament also elected the Free Democrat Hans-Rudolf Merz to replace retiring Finance Minister Kaspar Villiger. Both Blocher and Merz were strong advocates of drastic public spending cuts in order to reduce the country's mounting $102 billion francs state deficit and staunch opponents to Switzerland's entering the European Union. On June 14, 2006, the Federal Council elected Doris Leuthard of the Christian Democratic Party. Leuthard replaced the retiring Joseph Deiss and has assumed the Economics and Trade portfolio that Deiss managed. Leuthard’s Leuthard's election and Deiss’ resignation did not change the dynamics of the Federal Council. Blocher was not re-elected in 2007.
The Constitution limits federal influence in the formulation of domestic policy and emphasizes the roles of private enterprise and cantonal government. However, the Confederation has been compelled to enlarge its policymaking powers in recent years to cope with national problems such as education, agriculture, energy, environment, organized crime, and narcotics.
Despite not being a member of the EU, Switzerland contributes to the EU budget.<ref>[https://www.swissinfo.ch/eng/business/cohesion-fund_swiss-government-wants-to-pledge-more-funding-to-eu-budget/44006944 Swiss government wants to pledge more funding to EU budget]. ''Swissinfo''. March 28, 2018. Retrieved April 21, 2018.</ref> Switzerland continued [[War on Sovereignty|surrendering its sovereignty]] and caving to the EU when it approved stricter [[gun control]] laws to align with the EU's [[open borders]] [[Schengen Area]].<ref>Multiple references:
*Hawkins, Awr (May 19, 2019). [https://www.breitbart.com/politics/2019/05/19/swiss-voters-trade-rich-gun-history-eu-gun-controls/ Swiss Voters Trade Rich Gun History for EU Gun Controls]. ''Breitbart News''. Retrieved May 20, 2019.
*Keaten, Jamey (May 19, 2019). [https://www.apnews.com/e957c16f13524bb5aef7769f536c2420 Swiss voters approve tighter gun laws, lining up with the EU]. ''Associated Press''. Retrieved May 19, 2019.
*[https://www.reuters.com/article/us-swiss-eu-guns/swiss-voters-approve-tighter-gun-control-avoid-eu-clash-idUSKCN1SP0AA Swiss voters approve tighter gun control, avoid EU clash]. ''Reuters''. May 19, 2019. Retrieved May 19, 2019.
====Gun politics====
Compared to the rest of the world in general, Switzerland has relatively expansive [[gun rights]] and one of the highest levels of gun-ownership in the world, much due to its system of military conscription.
[[File:Swiss motorist on a Swiss road.jpg|thumbnail|300px|right|Motorist on a road in the Grimselpass of Switzerland]]
In 2015 and 2016, gun sales in the country rose dramatically due to concerns about defense against [[terrorism]] and crime, along with fears that EU regulations (that Switzerland is forced to adopt due to the [[Globalism#Developments towards a one world government|globalistic]] [[Schengen Area]]) would reduce citizens' ability to purchase a weapon.<ref>[http://www.swissinfo.ch/eng/self-defence-_gun-permits-continue-to-rise/42809528 Strong demand seen for gun permits among Swiss]. ''Swissinfo''. January 4, 2017. Retrieved January 8, 2017.</ref> Predictably, leftists voiced worries of this trend, even though they forget that the gun surge is a direct result
to their failed policies concerning terrorism, crime, and European integration.<ref>[http://www.swissinfo.ch/eng/arms-boom-_alarm-over-rising-gun-sales/42813194 Alarm over rising gun sales]. ''Swissinfo''. January 5, 2017. Retrieved January 8, 2017.</ref>
In 2015 and 2016, gun sales in the country rose dramatically due to concerns about defense against ==== Motorways of Switzerland ==== ''See also:'' [[terrorismMotorways of Switzerland]] and crime, along with fears that EU regulations (that Switzerland is forced to adopt due to the [[Globalism#Developments towards a one world government|globalisticEurope]] ’s best roads, those found in the [[Schengen AreaNetherlands]]) would reduce citizensand Switzerland, are also among the world' ability to purchase s finest. The Global Competitiveness Report 2019, published by the World Economic Forum ranked 141 countries based on their performance in a weaponvariety of different categories. Switzerland was ranked as having the second best roads in Eruope.<ref>[httphttps://wwwviborc.swissinfo.chcom/eng/selfroad-defencequality-_gunin-permitseurope-continuethe-tobest-rise/42809528 Strong demand seen for gun permits among Swiss]. ''Swissinfo''. January 4, 2017. Retrieved January 8, 2017.</ref> Predictably, leftists voiced worries of this trend, even though they forget that the gun surge is a direct result to their failed policies concerning terrorism, crime, and European integration.<ref>[http://www.swissinfo.ch/eng/arms-boomworst-_alarmroads-overin-rising-gun-saleseurope/42813194 Alarm over rising gun salesRoad quality in Europe: the best and worst roads in Europe]. ''Swissinfo''. January 5, 2017. Retrieved January 8, 2017.</ref>
==Foreign Relations==
In recent years, the Swiss have broadened the scope of activities in which they feel able to participate without compromising their neutrality. Swiss voters first rejected [[United Nations]] membership by a 3-to-1 margin in 1986 but in March 2002 adopted it, albeit in a very close election, making Switzerland the first country to join the UN based on a popular referendum decision. In similar fashion, the electorate rejected a government proposition to deploy Swiss troops as UN peacekeepers (Blue Helmets) in 1994, but Switzerland joined NATO's Partnership for Peace and the Euro-Atlantic Partnership Council in 1996 and 1997, respectively, and deployed Yellow Berets to support the OSCE in Bosnia. In June 2001, Swiss voters approved new legislation providing for the deployment of armed Swiss troops for international peacekeeping missions under UN or OSCE auspices as well as closer international cooperation in military training.
On September 10, 2002, Switzerland became a full member of the United Nations. Switzerland had previously been involved as party to the Statute of the International Court of Justice and member of most UN specialized agencies, as well as the [[International Atomic Energy Agency]]. Switzerland has long participated in many UN activities, including the Economic Commission for Europe, UN Environment Program, the UN High Commissioner for Refugees, UN Educational, Scientific and Cultural Organization, UN Conference for Trade and Development, UN Industrial Development Organization, and the Universal Postal Union (UPU). Prior to its formal accession, Switzerland had maintained a permanent observer mission at UN Headquarters since 1948.
Switzerland also is a member of the following international organizations: World Trade Organization, Organization for Economic Cooperation and Development, European Free Trade Association, Bank for International Settlements, Council of Europe, and Organization for Security and Cooperation in Europe (OSCE). In 1992, Swiss voters approved membership in the Bretton Woods organizations but later that year rejected the European Economic Area agreement, which the government viewed as a first step toward EU membership.
Switzerland has furnished military observers and medical teams to several UN operations. Switzerland is an active participant in the OSCE, its foreign minister serving as Chairman-in-Office for 1996. Switzerland also is an active participant in the major nonproliferation and export control regimes.
===[[War on Terror]]===
The Swiss Government on June 25, 2003, eased most of the [[UN sanctions |sanctions]] against the Republic of [[Iraq]] in accord with UN Security Council Resolution (UNSCR) 1483. The government lifted the trade embargo, flight restrictions, and financial sanctions in place since August 1990. The weapons embargo and the asset freeze, the scope of which was extended, remain in force, and restrictions on the trade in Iraqi cultural goods were newly imposed. Though not a member at the time, Switzerland had joined UN sanctions against Iraq after the invasion of Kuwait. Switzerland in recent years joined UN and EU economic sanctions imposed on Sierra Leone, UNITA (Angola), Liberia, Serbia and Montenegro, Burma, Zimbabwe, Sudan, Democratic Republic of the Congo, and Côte d'Ivoire. On October 15, 2003, the Federal Council ended the import restrictions on raw diamonds from Sierra Leone and lifted sanctions against Libya.
Switzerland in October 2000 implemented an ordinance to enforce UN sanctions against the Taliban (UNSCR 1267), which it subsequently amended in April 2001 in accord with tighter UN regulations (UNSCR 1333). On May 2, 2002, the Swiss Government eased the sanctions regime in accord with UNSCR 1388 and 1390, lifting the ban on the sale of acetic acid (used in drug production), Afghani Airlines, and Afghani diplomatic representations. The weapons embargo, travel restrictions, and financial sanctions remain in force. The Swiss Government in November 2001 issued an ordinance declaring illegal the terrorist organization [[al Qaeda]] as well as possible successor or supporting organizations. More than 200 individuals or companies linked to international terrorism have been blacklisted to have their assets frozen. Thus far, Swiss authorities have blocked about 72 accounts totaling 34 million francs.
In August 2017, Switzerland suspended funds to a Palestinian NGO due to its ties to terrorism.<ref>[https://www.breitbart.com/jerusalem/2017/08/23/report-switzerland-halts-funding-palestinian-ngo-alleged-terror-ties/ Report: Switzerland Halts Funding to Palestinian NGO over Alleged Terror Ties]. ''Breitbart News''. August 23, 2017. Retrieved August 26, 2017.</ref>
==DefenseMilitary==[[File:Swiss Army. Leopard 2-2A4 tank-Steel Parade 2006.jpg|thumb|200px|left|A Swiss [[Leopard 2]]-2A4 tank in a 2006 parade in the city of Thun.]]
On May 18, 2003, Swiss voters approved the military reform project "Army XXI" that drastically reduced the size of the Swiss Army. In January 2004, the 524,000-strong militia started paring down to 220,000 conscripts, including 80,000 reservists. The defense budget of SF 4.3 billion ($3.1 billion) would be trimmed by SF 300 million, and some 2,000 jobs were expected to be shed between 2004 and 2011. The mandatory time of service was curtailed from 300 to 260 days. All able-bodied Swiss males aged 20 to 30 must either serve in the military or in a special civil service. Thereafter, most military personnel are assigned to civil protection duties until the age of 37. Each Swiss militaman is required to keep his Sig 550 service rifle at home, properly maintained and in working order. Up until 2007, soldiers also received a sealed box of 50 bullets: they were meant to be used in the journey from home to the reporting station in case of invasion. This requirement has since been abolished and ammunition returned.
[[Tourism]], [[banking]], [[engineering]], and [[insurance]] are significant sectors of the economy and heavily influence the country's economic policies. Swiss trading companies have unique marketing expertise in many parts of the world, including Eastern Europe, the Far East, Africa, and the Middle East. Not only does Switzerland have a highly developed [[tourism]] infrastructure (making it a good market for tourism-related equipment and services), the Swiss also are intrepid travelers. Per capita, more Swiss visit the United States every year than from any other country. Tourism is the most important U.S. export to Switzerland (earning almost $1.5 billion). In 2004, more than 285,000 Swiss came to the United States as tourists.
In 2005, the dollar/Swiss franc exchange rate continued to be shaped by geopolitical tensions. The dollar depreciated further against the Swiss franc from SF 1.49 in October 2002 to SF 1.31 in 2003, to 1.28 in 2005 to 1.23 in July 2006, and 1.22 in January 2007. The strengthening of the Euro, however, helped Switzerland to minimize the pressure from a weakening dollar. The Swiss National Bank raised interest rates on June 15, 2006 , to 1.5%, the third increase since January 2006. The Swiss National Bank also said it expected economic growth to be a robust 2.5% in 2006 and 2007.
While the number of bankruptcies in Switzerland had been on the rise for four years, reaching alarming levels in 2005 (10,800), the rate dropped by 4.7% in 2006. Compared to other European countries, Switzerland's bankruptcy rates ranks fourth (1.35%) among the hardest hit countries, after Luxemburg (2.39%), Austria (1.9%) and France (1.49%).
The Swiss economy expanded by 2.7% in 2006, the fastest rate in six years, thus confirming sustained growth over the last four years. GDP growth was primarily due to the positive evolution of private consumption and expansion of investment in fixed assets and software. For once, all export industries benefited from increased demand from foreign markets. With a surplus of $9.6 billion (SF 11.7 billion), the Swiss trade balance reached unprecedented levels. On the inflation side, import prices increased more rapidly than exports.
Switzerland was ranked as the most competitive economy in the World Economic Forum’s Forum's 2006 Global Competitiveness Report for the first time, reflecting the country’s country's sound institutional environment, excellent infrastructure, efficient markets, competent macroeconomic management, world-class educational attainment, and high levels of technological innovation, which boost Switzerland's competitiveness in the global economy. The country has a well-developed infrastructure for scientific research, companies spend generously on research and development, and intellectual property protection is strong. Business activity benefits from a well-developed institutional framework, characterized by the rule of law, an efficient judicial system, and high levels of transparency and accountability within public institutions. Higher education and training are rapidly growing in importance as engines of productivity growth.
While Switzerland is famous for its banking secrecy, the level of secrecy has significantly declined, and it has ended in several areas, because of international pressure.<ref>Shields, Michael (October 5, 2018). [https://www.reuters.com/article/us-swiss-secrecy/era-of-bank-secrecy-ends-as-swiss-start-sharing-account-data-idUSKCN1MF13O Era of bank secrecy ends as Swiss start sharing account data]. ''Reuters''. Retrieved October 5, 2018.</ref>
*GDP (nominal): $700 billion (2020)
*GDP per capita: $80,460 (2020)
===Global Economic Crisis===
[[File:Aerial view of Zurich.JPG|thumb|200px|A view of Zürich from the air.]]
Being a nation that depends upon exports for economic growth, and due to the fact that it is so closely linked to the economies of Western Europe and the United States, Switzerland was not able to escape recent slowdowns experienced in these countries. During most of the 1990s, the Swiss economy was Western Europe's weakest, with annual GDP growth averaging 0% between 1991 and 1997. Beginning in late 1997, the economy steadily gained momentum until peaking in 2000 with 3% growth in real terms. The economy returned to lackluster growth during 2001-20032001–2003, but has been growing at or above potential since 2004–2.5% per annum. The Swiss Economic Ministry reports that strong global demand, particularly in the U.S. and Asia, and better Euro zone growth has helped Switzerland’s Switzerland's economic recovery. Long-run economic growth, however, is predicated on structural reforms. In order to maximize its economic potential, Switzerland will need to push through difficult agrarian and competition policy reforms. These are essential if the government is to reduce its budget deficits and meet its 3% growth target.
The recent economic upswing had some positive impact on the labor market. Unemployment decreased from 4.1% in December 2003 to 3.1% in March 2007. Swiss in the 15-25 age bracket continue to fight unemployment numbers with a rate of 5.4%, and hotel and restaurant industry workers with 10.4%. One-fourth of the country's full-time workers are unionized. In general, labor/management relations are good, mostly characterized by a willingness on both sides to settle disputes by negotiations rather than by labor action. About 600 collective bargaining agreements exist today in Switzerland and are regularly renewed without major problems. However, the mood is changing. The massive layoffs that resulted from both the global economic slowdown and major management scandals have strained the traditional Swiss "labor peace." Swiss trade unions encouraged strikes against several companies, including the national airline SWISS, Coca-Cola, and Orange (the French telecom operator), but total days lost to strikes remain among the lowest in the OECD. Uncertainties concerning the proper management of pension funds, and the prospect of a potential hike in the retirement age from 65 to 67 have stirred heated political debate.
The Swiss economy earns roughly half of its corporate earnings from the export industry, and 62% of Swiss exports are destined for the [[EU]] market. The EU is Switzerland's largest trading partner, and economic and trade barriers between them are minimal. In the wake of the Swiss voters' rejection of the European Economic Area Agreement in 1992, the Swiss Government set its sights on negotiating bilateral sectoral agreements with the EU. After more than 4 years of negotiations, an agreement covering seven sectors (research, public procurement, technical barriers to trade, agriculture, civil aviation, land transport, and the free movement of persons) was achieved at the end of 1998. Parliament officially endorsed the so-called "Bilaterals I" in 1999, and the Swiss people approved them in a referendum in May 2000. The agreements, which had to be ratified by the European Parliament as well as legislatures in all 15 EU member states, entered into force on June 1, 2002. Switzerland has so far attempted to mitigate possible adverse effects of non-membership by conforming many of its regulations, standards, and practices to EU directives and norms. Full access to the Swiss market for the original 15 EU member states entered into force in June 2004, ending as a result the “national preference”. The Swiss agreed to extend these preferences to the 10 new EU members on September 25, 2005.
The Swiss Government embarked in July 2001 on a second round of bilateral negotiations with the EU known as “Bilaterals II”. Talks focused on customs fraud, environment, statistics, trade in processed agricultural goods, media, the taxation of savings, and police/judicial cooperation (dubbed the Schengen-Dublin accords). Amid a fierce political debate over the essence of Swiss-EU relations and populist warnings against EU workers and criminals entering Switzerland, the Schengen-Dublin package was approved on June 5, 2005 , by a referendum of 54.6%. Fears of cheap labor coming from new EU member states have prompted the government to provide for tripartite surveillance committees to ensure that decent wages are enforced. The EU has still to ratify the extension of Schengen to Switzerland, and implement the bilateral agreements on research and development and media cooperation.
As part of the bilateral agreement on the taxation of savings signed in June 2003, Swiss banks will levy a withholding tax on EU citizens' savings income. The tax, which started on July 1, 2005, will increase gradually to 35% by 2011, with 75% of the funds being transferred to the EU.
On November 26, 2006, the Swiss electorate approved a government bill to contribute 1 billion Swiss francs (about $800 million) to the 10 new EU member states. In a nationwide referendum, 53.4% of voters accepted the “Eastern Europe Cooperation Act,” which entitles the government to spend 1 billion Swiss francs on projects in primarily [[Central Europe]]an states over the next 10 years. Switzerland had pledged this contribution to share the burden of the EU’s EU's eastern expansion in order to facilitate the conclusion of the second set of bilateral negotiations with the EU. The right-populist Swiss People’s People's Party (SVP), which prompted the referendum, was disappointed, but pleased that it mobilized a 47% opposition. The Eastern Europe Cooperation Act gives a new legal basis for Swiss aid to countries in Eastern Europe. The act has a 10-year term and replaces the former federal Law on Aid to Eastern Europe, which came into force in 1995. Since the fall of the Berlin Wall, Switzerland has spent SF 3.5 billion on about 1,000 aid projects in East-[[Central Europe]] to help countries in the region transform into market economies. Sixty percent of the SF 1 billion is to come from the budget of the departments of foreign and economic affairs, mainly from cuts in aid programs to other parts of the world. The remaining 40% will be taken from the regular budget of the federal administration. The funds are to be used on projects chosen by Switzerland and focused on education, trade promotion, environment, and internal security. The money is paid directly to the projects and does not go the EU cohesion fund in Brussels. Switzerland has no formal agreement with the European Union concerning these contributions. Instead, there is a Memorandum of Understanding (MOU) that sets out the general conditions of the Swiss commitment to the ten new EU member states. Under the MOU, almost half of the funding will go to Poland. Hungary's benefit will be SF 131 million, while the Czech Republic will receive SF 110 million.
The Swiss federal government remains deeply divided over whether to eventually join the EU, and in a March 2001 referendum more than 70% of Swiss voters rejected rapid steps toward EU membership. The issue of EU membership is likely to be shelved for several years, if not a decade. In May 2005, the government said it could sign a framework agreement with the European Union, as an alternative to joining the organization, to encourage dialogue and create a platform for closer cooperation.
Switzerland nevertheless expressed interest in reaching a third layer of bilateral agreements that would involve energy, the Galileo satellite navigation system, health, and agriculture. But recent harsh criticism by the European Commission against preferential cantonal tax treatment for foreign holdings cooled the political climate surrounding the EU. [[Unilateral ]] trade retaliation—as threatened by the EU if the Swiss cantons do not change their cantonal tax regimes—has not occurred, but the political damage is done, including greater anti-EU feelings among the population. The pressure to [[negotiate ]] with the EU could turn sour as the EU has already asked Switzerland to pay another SF 300-350 million ($240–280 million, on top of the SF 1 billion cohesion fund) to provide further financial aid to Romania and Bulgaria, which joined the EU on January 1, 2007. Unlike the November 2006 referendum, the newly enacted Eastern Europe Cooperation Act does not provide for an automatic referendum on further payments. The parliament will decide on the additional aid request.
The government also decided in November 2006 to once more consider adoption of the EU “Cassis-de-Dijon” principle for trade after a first setback in 2004. If adopted, EU products could be imported in Switzerland without having to go through the burdensome Swiss certification and Swiss language requirement process. Currently, Swiss retail prices are on average 20-40% higher than in the EU. If parallel imports are allowed under adoption of the Cassis-de-Dijion principle, prices could drop by 10%. Possible exceptions have been reduced from 129 products to 40, but hurdles remain on the labeling of alcohol contained in Alcopops, the Swiss ban of phosphates in washing machine powders, the real origin of “EU meat”, and on the stringent Swiss generic food production requirements. The “Cassis de Dijon principle” will not apply to the many farming and industrial products already covered by mutual recognition agreements (MRAs) under the EU-Swiss Bilaterals I and II; nor will it apply to other products such as pesticides, motor engines, and weapons that require an authorization. The impact, as a result, may not be as large as expected. Another issue is that Swiss and EU MRAs concluded with third countries may also benefit from adoption of the Cassis-de-Dijon principle (these goods would also have to receive WTO [[most favored nation ]] status).
The government has reaffirmed its wish to strengthen ties with other non-EU trading partners in Asia and America. Exploratory talks on a Free Trade Agreement between the U.S. and Switzerland failed to result in negotiations, due to Swiss problems with free trade in agriculture, but the two sides did agree to a new framework for economic, trade, and investment discussions. This new agreement is the Swiss-U.S. Trade and Investment Cooperation Forum (the “Forum”) and is currently assessing areas where the two governments could facilitate greater trade and investment flows.
After the decline of the [[Roman Empire]], Switzerland was invaded by [[Germanic tribe]]s from the north and west. Some tribes, such as the Alemanni in central and northeastern Switzerland, and the [[Burgundian]]s, who ruled western Switzerland, settled there. In 800, the country became part of [[Charlemagne]]'s empire. It later passed under the dominion of the [[Holy Roman Emperor|Holy Roman emperors]] in the form of small ecclesiastic and temporal holdings subject to imperial sovereignty.
With the opening of a new important north-south north–south trade route across the [[Alps]] in the early 13th century, the Empire's rulers began to attach more importance to the remote Swiss mountain valleys, which were granted some degree of autonomy under direct imperial rule. Fearful of the popular disturbances flaring up following the death of the Holy Roman Emperor in 1291, the ruling families from Uri, Schwyz, and Unterwalden signed a charter to keep public peace and pledging mutual support in upholding autonomous administrative and judicial rule. The anniversary of the charter's signature (August 1, 1291) today is celebrated as Switzerland's National Day.
[[File:D aigle Castle Switzerland.jpg|thumb|300px|D'aigle Castle.]]
Between 1315 and 1388 the Swiss Confederates inflicted three crushing defeats on the [[Habsburgs]], whose aspiration to regional dominion clashed with Swiss self-determination. During that period, five other localities (cantons in modern-day parlance) joined the original three in the Swiss Confederation. Buoyed by their feats, the Swiss Confederates continuously expanded their borders by military means and gained formal independence from the [[Holy Roman Empire]] in 1499. Routed by the [[France|French]] and [[Venice|Venetians]] near [[Milan]] in 1515, they renounced expansionist policies. By then the Swiss Confederation had become a union of 13 localities with a regularly convening diet administering the subject territories. Swiss mercenaries continued for centuries to serve in other armies; the Swiss Guard of the Pope is a vestige of this tradition.
The [[Protestant Reformation|Reformation]] led to a division between the [[Protestant]] followers of [[Ulrich Zwingli|Zwingli]] and [[John Calvin|Calvin]] in the German and French parts of the country respectively, and the [[Roman Catholic Church|Catholics]]. Despite two centuries of civil strife, the common interest in the joint subject territories kept the Swiss Confederation from falling apart. The traffic in mercenaries as well as the alienation between the predominantly Protestant Swiss and their Catholic neighbors kept the Swiss Confederation out of the wars of the European powers, which formally recognized Swiss neutrality in the [[Treaty of Westphalia]] in 1648. The Swiss remained neutral during the War of the First Coalition against revolutionary France, but [[Napoleon Bonaparte|Napoleon]], nonetheless, invaded and took control of the country in 1797-981797–98, replacing the loose confederation with a centrally governed unitary [[Satellite nation|satellite state]] under French influence. The Swiss people highly disliked the massive changes that were occurring under Napoleon, and there were at least four coups d'état that occurred between 1800 and 1802.<ref name="Geschichte">[http://history-switzerland.geschichte-schweiz.ch/swiss-revolution-helvetic-republic-1798.html Swiss Revolution and the Helvetic Republic (1798)]. ''geschichte-schweiz.ch''. 2004. Retrieved September 9, 2016.</ref> Napoleon was forced to withdraw his troops in 1802, and after a civil war broke out, the Act of Mediation was signed on February 18, 1803, which restored much of the independence and autonomy of the Swiss Cantons.<ref name="Geschichte"/><ref>[http://www.swissinfo.ch/eng/swiss-celebrate-napoleon-s-historic-act/3174096 Swiss celebrate Napoleon's historic act]. ''Swissinfo''. February 20, 2003. Retrieved September 9, 2016.</ref>
The [[Congress of Vienna]] in 1815 removed all remaining French control and re-established the old confederation of sovereign states and enshrined Switzerland's status of permanent armed neutrality in international law. In 1848, after a brief civil war between Protestant liberals seeking a centralized national state and Catholic conservatives clinging on to the old order, the majority of Swiss Cantons opted for a Federal State, modeled in part on the [[U.S. Constitution]]. The Swiss Constitution established a range of civic liberties and made far-reaching provisions to maintain cantonal autonomy to placate the vanquished Catholic minority. The Swiss amended their Constitution extensively in 1874, establishing federal responsibility for defense, trade, and legal matters, as well as introducing direct democracy by popular referendum. To this day, cantonal autonomy and referendum democracy remain trademarks of the Swiss polity.
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[[Category:European Countries]]