How compatible is the principle of neutrality with the implementation of economic sanctions? An examination into Switzerland’s use of sanctions

Purpose - The current political situation in Europe has amplified economic sanctions as a retaliatory measure for states not directly involved in the conflict but wanting to influence the political situation. The purpose of this paper is to further understand the interplay of the neutrality principle and employment of economic sanctions. Design/methodology/approach - Through an extensive literature review, heavily based on the publications of the Swiss Confederacy, neutrality as a foreign policy serving to promote Swiss interests is explored. The room for interpretation and freedom of action in the neutrality principle is highlighted above all. Findings - Economic sanctions are compatible with the neutrality principle, but do not necessarily further the same purpose. Political pressure to participate in sanctions does not take into consideration the ways in which the credibility of neutrality can be implicated, as well as the value of protecting Switzerland’s role as an international mediator. Originality/value - The consistency with which the neutrality principle is translated into the modern geopolitical context is crucial for its longevity. The novelty of the current political sanctions, still unfolding, demands a careful examination into the history of neutrality and the use of sanctions. No better insight can be offered than by the development of neutrality in the history of the titan of neutrality, Switzerland.