"Yes" "yes" "yes": at the final referendum of 2004, Swiss voters gave a nod to all three proposals presented at the ballot box. Science and financial issues seemed to win out this time round, with the people overwhelmingly approving laws governing stem-cell research and fiscal reforms.

In a year that saw the Swiss citizenry give thumbs down to several proposals put forth by the federal government, voters resoundingly said "yes" to:

1) the federal law of 19 December 2003 governing embryonic stem-cell research;

2) the federal resolution of 3 October 2003 on reform of financial equalisation and task allocation (RET) between the federal government and the cantons; and

3) the federal resolution of 19 March 2004 on finance restructuring.

Still, in a land where direct democracy rules, overall voter turnout were noticeably low at a mere 36 per cent--a sign of indifference towards the issues on the agenda?

Stem-cell Research 

The majority of voters--1,156,613 or 66.4 per cent--embraced the proposal regulating human embryonic stem-cell research. Hence, the procurement as well as research of excess embryos will now be governed by federal law, and the previous gaps in control thereof will be filled.

Noteworthy is that all (without exception) embryonic stem cells must be taken from excess embryos discarded by in-vitro fertilisation clinics, with the express permission from the parents of those embryos, and cannot be derived from an aborted foetus. The 30-34 cells from a maximum seven-day old embryo, fertilised in the laboratory outside of a mother's womb, are the only possible source for these cells, When a couple decides to undergo invitro fertilisation, they must decide the fate of the excess embryos that will inevitably be created. They may freeze them, which is prohibitively expensive for most couples, discard them or donate them for research. For some, the ethical issues concern the fact that these tiny embryos are, in fact, human beings and deserve more respect than a tissue donation, For many, it is immoral to intervene and accelerate their death--even momentarily--and to use human embryos for research of any kind.

Indeed, the favourable decision by the people sends a significant signal to Switzerland as a centre of global research since the country is already blazing trails in the field of stem-cell analysis. Ultimately, the hope of someday discovering effective treatments of still-incurable diseases is closer to being realised.

RET

The Swiss citizenry clearly approved of the reform of financial equalisation and task allocation (RET) between the federal government and the cantons by a margin of 64.4 per cent to 35.6 per cent. Only three cantons--Zug, Schwyz and Nidwalden--opposed the reforms, with 83.7 per cent of the voters in Zug saying "no" in what will now cost them an extra CHF121 million in financial contributions per year. The RET should reduce disparities in the cantons' financial capacities and to enhance the efficiency of the public ,sector, while altering a variety of transfer payments between the federal government and the cantons, which currently totals some CHF15 billion annually. Six so-called donor cantons will have to shoulder the overall equalisation burden due to transition to the RET: Zurich, Zug, Basle Lind, Schwyz, Nidwalden and Geneva, while 20 recipient cantons will benefit from it, with the highest absolute payments going to Berne, Thurgau, Lucerne, Soluthurn, St. Gallen, Freiburg, Basle City and Vaud. The RET will be introduced in 2008 at the earliest.

Finance Restructuring

By passing the federal resolution on finance restructuring--by an overwhelming majority of 73.8 per cent to 26.2 per cent--Swiss voters have paved the way for carrying out ever-important and urgent fiscal reforms.

The Swiss Constitution stipulates limitations on the power of the government to levy direct federal and value-added rues only until the year 2006 These tax revenues currently account lot 60 per cent of the government's total revenues. The new law on the restructuring of federal finances will now extend the authority of the government in Bern to levy these taxes until the year 2020. With respect to corporate income tax and taxes on families, the Federal Council has asserted that it currently plans to institute reforms swiftly on the heels of the acceptance of government finance restructuring by the people.