The on dash Fan position switch (Off-1-2-3-4) provides current to the AC Push Button switch in any position but Off. Once On and AC button is pushed in (ON), the current goes to the Fan Control Module (and ECU) to set in motion a sequence of events that turns on the AC system (Fans out front & AC clutch). There must be a minimum refrigerant charge or the fans will not function nor will the AC clutch kick-on (talking AC function only).
The left Green 30 amp fuse in the panel on the battery, the middle 40 amp strip fuse in that panel and Fuse 16 in the fuse panel on the left of the dash are all part of the mix.
The temp sensor switch on the rad is wired somewhat separately and can be bad (non-functional) and have zero affect on AC function.
I've been through all of this with my 2000 Jetta over the last few days as well as several others recently!