The country, which borders Germany to the north, France to the west, Italy to the south, and Austria and Liechtenstein to the east, was historically a confederation, and has been a federation since 1848. Switzerland has a strong economy in finance and banking, and a long and strong tradition of political and military neutrality. This background allows Switzerland to host various international co-operations and organisations.

Confoederatio Helvetica, the country's official Latin name, means Helvetic Confederation. The use of Latin avoids having to favour one of the four national languages. The abbreviation (CH) is used for the same reason. The titles commonly used in French (Confédération suisse), Italian (Confederazione Svizzera) and Romansh (Confederaziun svizra) translate as "Swiss Confederation", while the German name of Schweizerische Eidgenossenschaft translates literally as "Swiss Oath Fellowship" or "Swiss Commonwealth of the Covenant".

History

Switzerland is a federation of relatively autonomous cantons, some of which have a history of confederacy that goes back more than 700 years, arguably putting them among the world's oldest surviving republics.

Historically, in 1291, representatives of the three forest cantons of Uri, Schwyz, and Unterwalden signed the Federal Charter. The charter united the involved parties in the struggle against the rule by the Habsburgs, the family then holding the Duchy of Austria in the Holy Roman Empire. At the Battle of Morgarten on November 15, 1315, the Swiss defeated the Habsburg army and secured factual independence as the Swiss Confederation.

By 1353, the three original cantons had been joined by the cantons of Glarus and Zug and the city states of Lucerne, Zürich and Berne, forming the "Old Federation" of eight states that persisted during much of the 15th century (although Zürich was expelled from the confederation during the 1440s due to a territorial conflict) and led to a significant increase of power and wealth of the federation, in particular due to the victories over Charles the Bold of Burgundy during the 1470s, and the success of the Swiss mercenaries. The traditional listing order of the cantons of Switzerland reflects this state, listing the eight "Old Cantons" first, with the city states preceding the founding cantons, followed by cantons that joined the federation after 1481, in historical order. The Swiss victory in the Swabian War against the Swabian League of emperor Maximilian I in 1499 amounted to de facto independence from the Holy Roman Empire.

Geography

With an area of 41,285 square kilometres (15,940 sq mi), Switzerland is a relatively small country. The population is about 7.4 million, resulting in a population density of 182 people per square kilometre (472/sq mi).

Switzerland comprises three basic topographical areas: the Swiss Alps, the Swiss plateau, and the Jura mountains.The Alps are a high mountain range running across the central-south of the country. Among the high peaks of the Swiss Alps, the highest of which is the Dufour Peak at 4,634 metres (15,203 ft), are found countless valleys, some with glaciers. From these the headwaters of several major European rivers such as the Rhine, the Rhône, the Inn, the Aare or the Ticino, flow down into lakes such as Lake Geneva, Lake Zürich, Lake Neuchâtel, and Lake Constance.

The northern, more populous part of the country is more open, but can still be mountainous, for example, in the Jura Mountains, a smaller range in the northwest. The Swiss climate is generally temperate, but can vary greatly between the localities, from harsh conditions on the high mountains to the often pleasant Mediterranean climate at Switzerland's southern tip.

Economy

Switzerland is a prosperous and stable modern market economy, with a per capita GDP that is higher than those of the big western European economies. For much of the 20th century, Switzerland was the wealthiest country in Europe by a considerable margin. However, since the early 1990s it has suffered from slow growth and, as of 2005, fell to fourth among European states with populations above one million in terms of Gross Domestic Product per capita at purchasing power parity, behind Ireland, Denmark and Norway (see list). Switzerland is a member of the European Free Trade Association.

In recent years, the Swiss have brought their economic practices largely into conformity with those of the European Union, in an effort to enhance their international competitiveness, but this has not produced strong growth. Full EU membership is a long-term objective of the Swiss government, but there is considerable popular sentiment against this. To this end, it has established an Integration Office under the Department of Foreign and Economic Affairs. To minimise the negative consequences of Switzerland's isolation from the rest of Europe, Bern and Brussels signed seven agreements, called bilateral agreements, to further liberalise trade ties. These agreements were signed in 1999 and took effect in 2001. This first series of bilateral agreements included the free movement of persons. A second series covering nine areas was signed in 2004 and awaits ratification. The second series includes the Schengen treaty and the Dublin Convention. They continue to discuss further areas for cooperation. Preparatory discussions are being opened on four new areas: opening up the electricity market, participation in the European GPS system Galileo, cooperating with the European centre for disease prevention and recognising certificates of origin for food products. Switzerland voted against membership in the European Economic Area in December 1992 and has since maintained and developed its relationships with the European Union and European countries through bilateral agreements. A full report on the potential advantages and inconveniences of full EU membership is expected to be published in June 2006 by the Department of Foreign affairs. EU membership supporters hope this report could help reopen the internal debate, which has been dormant since March 2001, when the Swiss people refused in a popular vote to start accession negotiations with the EU.