He was elected to the Swiss Federal Council on 11 March 1998 as a member of the Free Democratic Party of Switzerland from the canton of Valais.

In 1998 he took over the Federal Department of Economic Affairs, in which position he fought against the government contributing any money to the $1.25 billion settlement between Swiss banks and Holocaust survivors.

"[2] On 12 June 2009, Couchepin announced his resignation from the Federal Council effective 31 October 2009.

Pascal Couchepin is a member of the Global Leadership Foundation, an organisation which works to support democratic leadership, prevent and resolve conflict through mediation and promote good governance in the form of democratic institutions, open markets, human rights and the rule of law.

It is a not-for-profit organisation composed of former heads of government, senior governmental and international organisation officials who work closely with heads of government on governance-related issues of concern to them.