In 1991 Switzerland celebrated its 700th year of existence. For its inhabitants this was an occasion to be grateful to be !lying in country that is well-known for its stable democracy, for remaining unscathed and independent through two world wars, and for its wealth. Yet the 700th anniversary of Switzerland was also a time of doubts about Swiss identity. In this updated edition, as opposed to seeing Switzerland as a blueprint for the rest of Europe, Wolf Linder's approach is institutionally oriented. He stresses three institutional features in the political system of Switzerland -- power-sharing, federalism and direct democracy -- which enlighten us about the lessons to be drawn from the Swiss experience about the future of European politics.