THE GEOGRAPHY (Foreign Office UK)
Area: 41,293 sq km (16,000 sq mi)
Population: 7,258,000
Capital City: Berne
People: German (65%), French (18%),
Italian (10%), Romansch (1%)
Languages: Swiss German, French,
Italian, Rhaeto-Rumantsch
Religion(s): Roman Catholic (46.1%),
Protestant (40%)
Currency: Swiss franc (SFR)
Major political parties: Radicals (FDP),
Christian Democrats (CVP), Social
Democrats, People's Party (SVP)
Government: Federal republic
GEOGRAPHY
Switzerland covers an area of about
16,000 square miles - roughly twice
that of Wales. One quarter of the land
is unproductive and, with the exception
of water (and hydroelectric
production), there are few natural
resources. Zurich (population 350,000)
is the financial and commercial centre.
The major cities are Basel (198,000),
Geneva (174,000), Berne (128,000),
and Lausanne (123,000).
THE HISTORY (Foreign Office UK)
The Swiss Confederation was originally
founded in 1291, when three cantons
agreed on a defensive alliance. It grew
steadily from 1291 to 1848 (except for
1798-1815 when it became the unified
Helvetic Republic after Napoleon's
invasion) as a loose alliance of
sovereign states (Ger: Staatenbund).
Its existing borders were fixed by the
Congress of Vienna in 1815. At that
time, Switzerland's policy of
permanent armed neutrality became
internationally recognised. Its neutrality
has never been violated, despite the
country's strategic importance. With a
new constitution, brought in after a
short civil war in 1848, it became a
federal state (Ger: Bundesstaat),
although it continued to be called the
Swiss Confederation.
The country is made up of twenty full
cantons and six half-cantons. Each
canton has its own government and
parliament. The Cantons are divided
into communes of which there are
2915. Action rests with the lowest level
of government deemed appropriate.
The communes enjoy wide powers.
They raise taxes, administer
themselves and elect their own
parliaments. The Federal Government
is formally responsible only for
defence, foreign and economic policy.
Although its influence is slowly
growing, it still spends only 30% of total
public expenditure.
All levels of Government are subject to
control by referendum. This is
compulsory in some cases; in others it
is invoked by gathering a set number
of voters' signatures. Swiss
decision-making is based on
consensus-building, and the main
characteristics of Swiss politics are
balance and continuity. Consensus
politicians are preferred to
commanding personalities.
THE ECONOMY (Foreign Office UK)
GDP: US$ 245.9bn (2001)
GDP per head: US$ 33,880 (2001)
Annual Growth: 0.8% (2001)
Inflation: 1% (2001)
Major Industries: Machine and precision
tools, textile machinery, chemicals and
pharmaceuticals, watches, telecoms,
graphic machinery, food processing
and packaging materials, electrical and
mechanical engineering.
Major trading partners: Germany,
France, US, Italy, UK, Japan,
Netherlands, Austria
Exchange rate: ú1 = Swiss Fr. 2.4
The economy has a substantial services
sector (particularly banking, insurance
and tourism) and a diversified
manufacturing base, which is highly
export-oriented, comprising mainly
small to medium-size enterprises but
also large corporations with global
activities. The most important sectors
are machine and precision tools, textile
machinery, chemicals and
pharmaceuticals, watches, telecoms,
graphic machinery, food processing
and packaging machines, electrical and
mechanical engineering.
During the 1990s Switzerland
experienced its longest post-war
recession. Despite strengthening
economic growth from 1997 onwards,
average annual growth for the last
decade was only 0.75%. Unemployment
stands at 2.5%.
Despite the relative weakening of the
economy during the 1990s, Switzerland
remains an important economic power:
8th largest European exporter; 18th in
the world;
17th largest import market in the
world;
world's largest per capita outward
direct investor (8th largest overall);
the EU's third most important trade
partner after the US and Japan;
the world's 6th most competitive
economy.
Further information about
Switzerland's economy can be found at
Trade Partners UK Country Profile:
Switzerland.
INTERNATIONAL RELATIONS
Switzerland did apply to join the EC on
26 May 1992. However, following an
electorial rejection of EEA membership
in a referendum in December 1992, the
Federal Council froze its EC application
and sought instead to negotiate bilateral
agreements with the EU covering a
range of issues. These were eventually
agreed at the end of 1998 and approved
by the people in a referendum in May
2000. The agreements came into force
in 2002.
The debate over EU membership
continues. The Government reaffirmed
its long-term aim of EU membership in
a White Paper published in November
2000. However, in a referendum held
in March 2001 the Swiss electorate
rejected an initiative æYes to Europe'
which had been launched by a group of
pro-EU politicians and members of the
public with the aim of forcing the
Government to immediately open
accession negotiations. The
Government, which had also been
against the initiative, viewed the result
as an endorsement of their methodical
step-by-step approach to membership.
Swiss laws continue to be made
compatible with EU legislation.
On 10 June 2001 the electorate
approved a government proposal to
amend the military law to allow the
arming of military units deployed for
peacekeeping operations.
Switzerland voted to apply for
membership to the UN in a referendum
in March 2002. It was already a
member of many of the specialised
agencies and the second largest
per-capita contributor to the UN
system. It acceded to the UN on 10
September 2002.
SWITZERLAND'S RELATIONS WITH
THE UK
Relations remain excellent. There is
regular contact at ministerial and
official level covering issues from the
Balkans to mutual legal assistance and
cultural affairs. Recent highlights have
been visits to London by the President
of the Swiss Confederation in 2000
and to Switzerland by HRH The Prince
of Wales in November 2000.
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