Lesson 10 - Switzerland: World Wars and 20th Century Neutrality
The Matu history syllabus requires us to pay special attention to the question on Swiss neutrality. We are expected to 'trace Switzerland's path from one world war to the next and to situate the debate on neutrality in the light of political positions and economic commitments. To understand the transition from social confrontation (general strike) to social peace (labour peace). '
For some, neutrality is the defining characteristic of Switzerland. As we studied in this course, Switzerland has been officially neutral since the Congress of Vienna in 1815. As a result, Switzerland has been the host of many international conferences to settle peace and has become the home of many international organisations – EFTA, Council of Europe, Red Cross (Henry Dunant) IMP, WTO, Fifa, Uefa, IOC etc.
For some, neutrality is the defining characteristic of Switzerland. As we studied in this course, Switzerland has been officially neutral since the Congress of Vienna in 1815. As a result, Switzerland has been the host of many international conferences to settle peace and has become the home of many international organisations – EFTA, Council of Europe, Red Cross (Henry Dunant) IMP, WTO, Fifa, Uefa, IOC etc.
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As we have seen, the League of Nations was established in Geneva and in 1920 a small majority of Swiss voted in favour of joining. The League of Nations accepted the 'differential neutrality' of Switzerland, which meant that the country was obliged to participate in economic but not military sanctions. Despite this, Switzerland refused to impose economic sanctions on Mussolini's Italy during the Abyssinian crisis (and even refused to allow Abyssinian emperor Haile Selassie to live in his house in Vevey!) Somewhat embarrasingly in 1937 the University of Lausanne awarded Mussolini an honorary doctorate. With the collapse of the League of Nations, Switzerland once again became 'absolutely' neutral.
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Switzerland in the interwar years.
The economic difficulties of the war years, the increasing prominence of the Socialist Party (SP) and rise in industrial unrest and demonstrations created a fear among conservatives that Switzerland might fall to the same forces that had provoked revolutions throughout central Europe. In February 1918 in Olten, leaders of the socialists, trade unions, and the socialist newspapers created the Olten Action Committee (OAK) designed to better organise the workers demands. After the collapse of Germany and the revolutions in 1918, the Federal Government took preemptive action against a potential left-wing rising and ordered the army to occupy Zurich. In response the OAK called for a General Strike, which although ultimately defeated did lead to significant improvements in wages and the introduction of the 48 hour working week. |
(Above - Soldiers guarding the Federal Palace in Berne)
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The early 1920s, as in much of Europe, was marked by an economic crisis and significant industrial unrest. The textiles and watchmaking industries were particularly impacted. In contrast, the traditionally important banking sector benefitted from Swiss neutrality in the First World War and in the interwar years Swiss financial services became the most important in the world. This was further encouraged by the banking law of 1934 which formalised the tradition of banking secrecy which enabled the world's super-rich to hide their assets.
Politically the interwar years saw Switzerland generally the avoid the polarised extremism that characterised the period in much of Europe. A popular initiative in 1918 established a system of proportional representation. The main beneficiaries were the smaller parties such as the Socialists and the newly formed conservative and Protestant Party of Farmers, Traders and Independents (BGB). In 1921 the Swiss socialists became an officially reformist democratic party, rejecting the revolutionary Marxist tradition. The rise of fascism in Europe did encourage the creation of similar extreme rightwing 'frontist' parties in Switzerland but the federal, regional identity of Switzerland inhibited the growth of the movement. An initiative by the frontists, who wanted to impose their political program by constitutional amendment in 1935, was declined by more than 70% of the voters.
Politically the interwar years saw Switzerland generally the avoid the polarised extremism that characterised the period in much of Europe. A popular initiative in 1918 established a system of proportional representation. The main beneficiaries were the smaller parties such as the Socialists and the newly formed conservative and Protestant Party of Farmers, Traders and Independents (BGB). In 1921 the Swiss socialists became an officially reformist democratic party, rejecting the revolutionary Marxist tradition. The rise of fascism in Europe did encourage the creation of similar extreme rightwing 'frontist' parties in Switzerland but the federal, regional identity of Switzerland inhibited the growth of the movement. An initiative by the frontists, who wanted to impose their political program by constitutional amendment in 1935, was declined by more than 70% of the voters.
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Geneva fusillade of 9 November 1932
On 9 November 1932, the Swiss Army fired live rounds into a crowd of anti-fascist protesters in Plainpalais in Geneva, killing 13 and wounding 65. The English newspaper, the Guardian wrote at the time: 'it is not doubtful that in any English town the police would have sufficed to settle such a insignificant affair (...) nothing in these events constituted a riot (...) In my long experience, I have never have known of a case in which the crowd was fired upon with such flimsy reasons. Or more to the point, without any reason whatsoever.' This was the last time troops were sent to act against public unrest in Switzerland. For more see this illustrated article at notreHistoire or listen to this RTS special broadcast. |
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In the 1930s, with the support of all major political parties and in response to the aggressive foreign policies of her fascist neighbours, Switzerland significantly increased its federal budget for the military. This was made possible by the movement to the right by the Swiss socialists who broke with their pacifist traditions and supported the need for national defence. This political unity also encouraged an agreement between trade unions and management to establish in July 1937 the Paix du travail, 'labour peace agreement', which initiated a tradition of industrial conciliation and negotiation which made strikes a rarity in Switzerland. This began first with watch making and gradually spread to other industries.
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World War II
Maintaining Swiss neutrality in WWII was altogether more challenging than in WWI and had some consequences that make the historical narrative considerably more contentious. The title of the film opposite sums up the debate: how neutral was Switzerland during WWI? When war broke out on 1 September 1939, Switzerland mobilised 430,000 combat troops and 200,000 reserves. The Federal Assembly appointed Henri Guisan, from Vaud, as General of the Swiss Armed Forces. He was to play an important role in how Switzerland conducted itself during the war. |
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(Above - 25th July 1940, Henri Guisan addresses the most senior officers of the Swiss army at the historic site of Grütli (Rütli) meadow, where the founding three Swiss cantons met in 1291. Here he announced the Swiss war strategy - the Reduit - which rejected any prospect of Swiss accommodation with Nazi Germany '...the meeting had an electrifying effect on the army, whose morale greatly improved' Church and Head, A concise history of Switzerland p.215. The meeting itself has also since become legend.)
With the fall of France in 1940 and completely surrounded by the Axis fascist regimes, some in Switzerland called for an appeasing accommodation with Hitler. The extremist Swiss fascist 'fronts' reappeared and Confederation President Marcel Pilet-Golaz of Cossonay, seemed to be considering the possibility of the creation of an authoritarian government, he was not alone. But the military policy of Henri Guisan - the national redoubt 'Reduit' - which envisaged almost a scorched-earth military retreat into Alps probably did much to deter Hitler and to galvanise Swiss resistance. Eventually, 360,000 soldiers were stationed in the Reduit at a cost of 900m francs.
In 1940 and in order to deal with the harsh reality of being surrounded by poentially hostile powers, the Wahlen Plan was put in place by Friedrich Wahlen, a politician and agronomist. Its aim was to make Switzerland food self-sufficient. It converted parks, meadows and sports fields into farm land. The plan helped alleviate some pressure from food shortages, yet Switzerland still needed to ration bread, dairy and meat as they had reduced breeding in favour of crops. The country's food self sufficiency rose from 40% to 60% by the end of the war.
Unlike in WWI, steps were taken by government to improve standards of social welfare. This time the conscripted soldiers were compensated for their time. The funding of these payments through the deduction of a given percentage of the person's salary would later serve as a model for the Old Age and Survivors Insurance (AHV/AVS). In addition, rents were frozen and tenants protected, improvements were made to family allowances and unemployment insurance. The basis of the modern Swiss social welfare was put in place.
Unlike in WWI, steps were taken by government to improve standards of social welfare. This time the conscripted soldiers were compensated for their time. The funding of these payments through the deduction of a given percentage of the person's salary would later serve as a model for the Old Age and Survivors Insurance (AHV/AVS). In addition, rents were frozen and tenants protected, improvements were made to family allowances and unemployment insurance. The basis of the modern Swiss social welfare was put in place.
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Jews, gold and the Bergier Report
After WWII, the Swiss were generally proud that they had been able to maintain their armed neutrality in the face of overwhelming odds. In the 1990s this positive narrative came under sustained attack internationally. In 1995 the Jewish World Congress made three key criticisms of Switzerland in WWII. Firstly, that Switzerland willing received and hid gold that had been stolen as the Nazis conquered Europe. Secondly, Swiss banks continued to hold the accounts of European Jews who had been killed in the Holocaust - dormant accounts - without having made any effort to return the money to surviving relatives. |
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Finally, Nazi Germany was Switzerland's most important trading partner during WWII, providing the Nazis with essential war supplies and weapons made by state-owned manufacturers which was contrary to the 1907 Hague Convention.
In December 1996, the Swiss Federal Government setup a Committee to investigate Switzerland's role in World War II. The chair was historian Jean-François Bergier from the University of Geneva. When asked why he accepted such an investigative and editing role, Bergier replied, "Above all there's the issue of Switzerland's historical responsibility. You have to be responsible for your past. On that condition you can face the future clearly and calmly." It was a critical and controversial report that confirmed many of the international criticisms that had been made over the previous decade.. |
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In reality, Swiss neutrality was already compromised before the outbreak of the war. In 1938 for example, Switzerland proposed that Germany stamp the passports of Jews with a letter 'J' so as to make it easier to identify them and prevent cross border travel. When the 'Final Solution' was initiated in Nazi Germany, Switzerland announced it was closing it borders. 'Refugees fleeing on racial grounds, such as Jews, are not entitled to political asylum.' In fact, Swiss frontiers were only re-opened to refugees from July 1944.
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Since World War II
The syllabus does not appear to require that we go beyond World War II but it would be a shame not to bring things up to the present day. In brief, since WWII (and as a result of globalisation) Switzerland has become increasingly tied into international organisations which have inevitably weakened both her neutrality and national sovereignty. For example, in 2002 Switzerland joined the UN. In addition, joining organisations like EFTA and signing a series of bilateral agreements with the EU (between 1999-2004) meant that Switzerland was forced to abide by international treaties and laws that limit her independence. For example, the Schengen agreement which enable the free movement of people across EU states – so essential to the Swiss economy – is an extension of the right to free movement which allows European citizens like me the right to live and work in Switzerland. For example, in 2014 the federal popular initiative "against mass immigration" from the Swiss People's Party and was accepted by a majority of the electorate 50.3%. Theoretically if this law had been enabled, all Switzerland’s agreements with the EU would have been cancelled. In the end the initiative was effectively ignored, and a compromise settlement was reached with the EU. This outcome was decried as a failure to properly implement the referendum by the Swiss SVP party (which had promoted the referendum) as it fails to put any curbs on immigration. A second attempt by the SVP in 2020 to introduce immigration restrictions was rejected by 61.7%.
More recently (May 2021) the failure after seven years of negotiation to reach a trade treaty with the EU is likely once again to put pressure on Switzerland's ability to maintain its sovereignty and independence. The negotiation collapsed due to Switzerland’s rejection of the jurisdiction of the European court of justice, and of a free movement directive that would offer permanent residence to EU citizens, with access to social security granted to non-employed residents such as job-seekers and students. It is likely that Swiss-EU relations will become increasingly strained over the coming months and years.
Finally, two recent events in early 2022 have potentially significant implications for the traditions of Swiss banking and political neutrality. In February 2022 an investigation by international journalists revealed the extent to which Swiss banking continues to fund international corruption. Then in February, the Russian invasion of Ukraine saw the Swiss break with its traditional neutrality by supporting the European Union's imposition of sanctions against Russia.
Extra
Swiss history as illustrated by political posters.
The syllabus does not appear to require that we go beyond World War II but it would be a shame not to bring things up to the present day. In brief, since WWII (and as a result of globalisation) Switzerland has become increasingly tied into international organisations which have inevitably weakened both her neutrality and national sovereignty. For example, in 2002 Switzerland joined the UN. In addition, joining organisations like EFTA and signing a series of bilateral agreements with the EU (between 1999-2004) meant that Switzerland was forced to abide by international treaties and laws that limit her independence. For example, the Schengen agreement which enable the free movement of people across EU states – so essential to the Swiss economy – is an extension of the right to free movement which allows European citizens like me the right to live and work in Switzerland. For example, in 2014 the federal popular initiative "against mass immigration" from the Swiss People's Party and was accepted by a majority of the electorate 50.3%. Theoretically if this law had been enabled, all Switzerland’s agreements with the EU would have been cancelled. In the end the initiative was effectively ignored, and a compromise settlement was reached with the EU. This outcome was decried as a failure to properly implement the referendum by the Swiss SVP party (which had promoted the referendum) as it fails to put any curbs on immigration. A second attempt by the SVP in 2020 to introduce immigration restrictions was rejected by 61.7%.
More recently (May 2021) the failure after seven years of negotiation to reach a trade treaty with the EU is likely once again to put pressure on Switzerland's ability to maintain its sovereignty and independence. The negotiation collapsed due to Switzerland’s rejection of the jurisdiction of the European court of justice, and of a free movement directive that would offer permanent residence to EU citizens, with access to social security granted to non-employed residents such as job-seekers and students. It is likely that Swiss-EU relations will become increasingly strained over the coming months and years.
Finally, two recent events in early 2022 have potentially significant implications for the traditions of Swiss banking and political neutrality. In February 2022 an investigation by international journalists revealed the extent to which Swiss banking continues to fund international corruption. Then in February, the Russian invasion of Ukraine saw the Swiss break with its traditional neutrality by supporting the European Union's imposition of sanctions against Russia.
Extra
Swiss history as illustrated by political posters.
Activities
Explain how Switzerland in general avoided the political extremism that characterised much of Europe in the interwar years.
To what extent was Switzerland able to maintain its neutrality in World War II?
Explain how Switzerland in general avoided the political extremism that characterised much of Europe in the interwar years.
To what extent was Switzerland able to maintain its neutrality in World War II?