Downside: Sometimes laws can be delayed for 1+ years due to a referendum. The political process is slower and big reforms are much harder.
Upside: Lawmakers need to write balanced laws or they face threats of referendum signature collection from other parties or civil organizations. Often in political discussions you hear that "position X won't stand a chance in a referendum". That is a good thing.
Upside: Lawmakers need to write balanced laws or they face threats of referendum signature collection from other parties or civil organizations. Often in political discussions you hear that "position X won't stand a chance in a referendum". That is a good thing.