Before joining the League of Nations, Switzerland asked the members of the League to confirm its neutrality (History of Switzerland). During WWII, Switzerland obeyed the international rules governing neutrality, but it continued banking and war-productions with Germany (History of Switzerland). In defense of Switzerland, it is landlocked and is without many natural resources (ones needed for raw materials) (History of Switzerland). Thus, the country had to decide between complete surrender to Germany or continued trade with its neighbor (History of Switzerland). After all, Germany had captured or annexed all of the surrounding areas. What choice did Switzerland have?
Even while facing a well established militia, Germany could have taken Switzerland easily (Histrory of Switzerland). And in fact, Hitler did have plans to incorporate all German-speaking regions of Europe. Switzerland was comprised of upward of 74% German-speakers (History of Switzerland). So, Switzerland certainly did have reason to be anxious.
The Railroad systems that travelled through Switzerland where needed by Germans as a link to Italy. In the event of an attack, the Swiss would have simply destroyed the links, tunnels, and bridges that were essential for rail transportation. The Germans also traded gold for Swiss francs. Thus the Swiss provided convertable currency to the Germans. And the Swiss had greatly prepared for invasion. The military was built and a contingency plan was in place. The military knew that it would last long against the Germans, so they planned to retreat into the mountains and continue guerilla warfare from there. Perhaps a combination of the three kept the German army out. But there has been dissent: several people suggest (and even the figures suggest) that the railroad links were not absolutely essential (plus Germany could utilize most of the rail lines of Europe); also, the impact on military production was very small (0.5% (History of Switzerland)) as was the ecomonic trade. Reference
The Neutrality of Switzerland
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Though many have attributed Switzerland's neutrality in WWII to its exellent military, that was not entirely true.
Before joining the League of Nations, Switzerland asked the members of the League to confirm its neutrality (History of Switzerland). During WWII, Switzerland obeyed the international rules governing neutrality, but it continued banking and war-productions with Germany (History of Switzerland). In defense of Switzerland, it is landlocked and is without many natural resources (ones needed for raw materials) (History of Switzerland). Thus, the country had to decide between complete surrender to Germany or continued trade with its neighbor (History of Switzerland). After all, Germany had captured or annexed all of the surrounding areas. What choice did Switzerland have?
Even while facing a well established militia, Germany could have taken Switzerland easily (Histrory of Switzerland). And in fact, Hitler did have plans to incorporate all German-speaking regions of Europe. Switzerland was comprised of upward of 74% German-speakers (History of Switzerland). So, Switzerland certainly did have reason to be anxious.
The Railroad systems that travelled through Switzerland where needed by Germans as a link to Italy. In the event of an attack, the Swiss would have simply destroyed the links, tunnels, and bridges that were essential for rail transportation. The Germans also traded gold for Swiss francs. Thus the Swiss provided convertable currency to the Germans. And the Swiss had greatly prepared for invasion. The military was built and a contingency plan was in place. The military knew that it would last long against the Germans, so they planned to retreat into the mountains and continue guerilla warfare from there. Perhaps a combination of the three kept the German army out. But there has been dissent: several people suggest (and even the figures suggest) that the railroad links were not absolutely essential (plus Germany could utilize most of the rail lines of Europe); also, the impact on military production was very small (0.5% (History of Switzerland)) as was the ecomonic trade.
Reference