The implementation of the main federal principles, such as regional autonomy or cantonal participation and collaboration at the federal level, depends on certain institutional arrangements. This chapter covers the most important federal institutions that are codified by the Swiss Federal Constitution originally dating back to 1848. It provides an overview of both vertical and horizontal institutions of Swiss federalism. The chapter addresses the challenges and possible reforms and shows how the main federal principles are implemented. It evaluates to what extent the Council of States comes to meet the major requirements which are imposed on a "federal upper house". Throughout the course of the modern Swiss Federation, the balancing act between the "democratic" and the "federal principle" has been a constituent factor. The chapter concludes by elaborating on the extent to which the vertical and horizontal institutions provide the cantons with access and veto points at the federal level today.