Vaclav Klaus (March 2018)

Vaclav Klaus observes that classical liberalism is currently on the defensive. The collapse of the Soviet Union did not lead to a wave of liberal policies; rather, it resulted in the dominance of socialist or social-democratic policies. One reason for this is that people feel they have gained a significant increase in freedom thanks to the fall of totalitarian states. Additionally, the material abundance and the “superficiality and convenience of today’s thinking” contribute to people’s underestimation of the importance of freedom. As a result, they are hardly enthusiastic about supporting the liberal cause. Surprisingly, liberalism, as well as the market economy and capitalism, find themselves under constant criticism, with the perception that there is far too little regulation today. But this is incorrect, as regulations are increasing, leaving hardly any room for a truly free market. Tax rates are steadily rising, as are national debts; bureaucracies are expanding, and legal texts are growing longer. These very mistakes of socialist policies are being committed in the EU, which has developed into a bureaucratic project of leveling and standardization.

Beat Gygi demonstrates in his contribution that Switzerland compares well with the EU: regularly ranking at the top in various rankings, relatively few regulations, dynamic economic growth, low unemployment rates, and high competitiveness. Nevertheless, there are strong voices that see advantages in joining the EU, such as the possibility of having a say. Gygi downplays this influence in light of the number of member countries and the power of large states like Germany. However, the most important insight is that the functioning of Switzerland and the EU fundamentally differ. Switzerland practices direct democracy and federalism, while EU countries follow pronounced parliamentarism and standardization within the EU. An EU accession would only be manageable with radical changes to the Swiss decision-making mechanisms, namely by abandoning direct democracy and subsidiarity—precisely what ultimately defines Switzerland.

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