Switzerland was shocked on Sunday when, for the first time in decades, the election of a new parliament resulted in a turn-around of the status quo and a triumph of the right-wing People's Party.
Quote:ZURICH (Reuters) - The Swiss right wing has raced ahead in general elections in a move which could unsettle the neutral nation's
renowned political stability by rocking the foundations of the 44-year-old coalition government.
A polarisation in voter sentiment saw support swing behind the anti-immigrant Swiss People's Party (SVP), which edged out the
left-leaning Social Democrats (SP) to become the nation's most popular group, a Swiss television projection showed on Sunday.
Proud of its neutrality and impeccable democratic credentials, Switzerland has long played on its strength as a stable political nation,
building up a reputation as a safe haven for offshore wealth in turbulent times.
But strong gains for the SVP point to increasing concerns in the recession-hit nation of rising unemployment and a falling standard of living.
The party also reinforced Switzerland's isolation by campaigning against closer ties with EU neighbours.
Launching a make-or-break bid for more power in the four-party coalition cabinet, the SVP put forward the nation's most controversial
politician for a ministerial seat -- a move observers say could undermine the nation's stable reputation.
"The developments of this evening surely show us that the myth of a stable political Switzerland is probably waning away now," said Julius
Baer Chief Economist Janwillem Acket.
He said that a change to the so-called "magic formula" could block reform.
"The result of the general election is a prelude to more political instability in this country and probably the prelude to the vanishing of another
myth -- the special status that Switzerland has enjoyed since the end of the Second World War."
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Right wingers dominate Swiss election
However, the Alpine republic has a strong tradition of direct democracy, whereby power rests not with parliament but with the people. A referendum, for instance, can be called on any political issue as long as campaigners manage to collect 100,000 signatures. This considerably limits the parties' ability to push through their own agenda.