Disparities between increasing urban economic power and cities' limited political autonomy have put pressure on intergovernmental relations in many countries. Some authors have claimed that this process leads to a strengthening of the position of cities with respect to higher state levels such as regions or the nation state. The aim of this article is to test this hypothesis for the case of Switzerland. In the first part, we show that, due to the existing intergovernmental framework, the current dynamics of urbanisation (which we describe as "metropolization") have produced specific problems for governance in Swiss urban areas: spillovers in the distribution of costs and benefits, new political cleavages between core cities and surrounding communes, as well as increasing autonomy conflicts between cities and cantons. In the second part, we argue that initiatives taken in order to tackle these issues of urban governance have contributed to transforming Swiss federalism. "Politikverflechtung" is increasing in urban areas. In particular, the new federal urban policy has introduced a new vertical dimension of co-operation between cities, cantons and the Confederation. Although Swiss cities have gained new influence in the process, we conclude that cantons still hold the key position. Therefore, like other federalist countries, Switzerland has not experienced a considerable strengthening of urban governments with respect to higher levels. Nevertheless, current developments in this area can be seen as a move away from the hierarchical pattern of co-operative federalism towards a more heterarchical pattern of multi-level governance in Swiss intergovernmental relations.
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