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This lecture explores the impact of direct democracy on Swiss politics, focusing on popular initiatives and referendums. It discusses the innovative dimension of popular initiatives, the veto aspect of referendums, and the evolution from plebiscitary democracy to a negotiation democracy. The lecture also covers the phases of political integration in Switzerland, from religious conflicts in the 19th century to class struggles in the 20th century, leading to political stability through labor peace agreements and the integration of the social-democratic Party in the federal Government.