The Swiss political system is characterized by a high degree of decentralization, with much authority delegated to the 26
states or cantons. This loose federal structure reflects the evolution of the Swiss state since the middle ages, and is
shaped in part by Switzerland’s high degree of linguistic fragmentation. Frequent referendums concerning major or
contentious political questions are the key elements of Switzerland’s unique and well-established tradition of "direct
democracy." The Swiss system is recognized for its political stability. Since the system of governance is based on
consensus, none of the parties can vehemently pursue a single agenda, and diverse ideologies are therefore combined
in the process of policymaking. In the October 2011 elections, the right-wing SVP lost some of its political ground to the
Green Liberals and the BDP. With the country rooted in a consensus-based political system, having multiple centers of
influence in the political scene will support political stability.
Switzerland’s policy toward Europe is marked mainly by a dense network of international agreements under a bilateral
approach. However, the chances of EU membership in the near future are still remote, with the SVP continuing to
vehemently oppose EU membership and the adoption of EU law. The growing discrimination against Muslims and the
straining of bilateral ties with several countries due to the country’s strong banking secrecy laws are expected to cause
instability on the international front.