Abstract
As the European Union has been spreading to the southeast, that is, in direction toward a cluster of member-states of former Yugoslavia, it is very probable that its institutions, characterized by contrasts and inequality, will prove themselves to be incapable of facing the burden that one efficient and democratic government carries upon. The European Union will have to react quickly in order to solve the issue of inherent democratic deficit in its political institutions. If it wants to get rid of the gap which arose between its institutions and electorate, the European Union (EU) will have to fundamentally reorganize the structure of its existing institutions. As the idea of enlargement of the EU becomes closer to reality, this fundamental demand will become unavoidable if this new enlarged EU wants to avoid the paralysis or possible collapse. Switzerland is an ideal example for the EU on how to solve the problem of reforms of its non-democratic institutions. Parallels between the EU and Switzerland are very obvious as both of them consist of groups speaking multitude of languages and also both of them consist of conglomerates of sovereign entities with their own unique histories and cultures. Federalism in general and the specific Swiss model of federalism (cooperative federalism) are the best solution for solving the issue of democratic deficit which currently causes problems to the EU institutions.