Between 2003 and 2007, Switzerland passed a set of constitutional and legal amendments following a popular vote that substantially changed fiscal relations between the federation and the cantons (states). The reform objectives were to renew Swiss federalism, giving cantons more autonomy over a number of policy areas, while achieving a better balance between rich and poor cantons and better collaboration in service delivery across cantonal borders. The reform had several elements. It aimed at i) disentangling a number of policy areas that had been jointly funded and regulated by the federal and cantonal level, ii) introducing a horizontal and vertical equalisation fund to equalise taxraising capacity and public service cost across cantons, iii) obliging cantons to collaborate in public service provision, and iv) introducing new management techniques in the remaining joint tasks (Box 11.1).