Switzerland during the World Wars
During World War I and World War II, Switzerland maintained armed neutrality, and was not invaded by its neighbors, in part because of its topography, much of which is mountainous. Germany was a threat and Switzerland built a powerful defense. It served as a "protecting power" for the belligerents of both sides, with a special role in helping prisoners of war. The belligerent states made it the scene for diplomacy, espionage, and commerce, as well as being a safe haven for 300,000 refugees.
Swiss independence during the interwar period[edit]
One potential result of World War I was an expansion of Switzerland itself during the interwar period. In a referendum held in the Austrian state of Vorarlberg on 11 May 1920, over 80% of those voting supported a proposal that the state join the Swiss Confederation. However, this was prevented by the opposition of the Austrian Government, the Allies, Swiss liberals, the Swiss-Italians and the Swiss-French.[9]
However, the Principality of Liechtenstein managed to exclude itself from Austria in 1918 and signed a monetary and customs union with Switzerland that effectively guaranteed its independence. In 1920, Switzerland joined the League of Nations.
In 1934 the Swiss Banking Act was passed. This allowed for anonymous numbered bank accounts, in part to allow Germans (including Jews) to hide or protect their assets from seizure by the newly established Third Reich.
In 1936 Wilhelm Gustloff was assassinated at Davos; he was the head of the Nazi Party's "Auslands-Organisation" in Switzerland. The Swiss government refused to extradite the alleged assassin David Frankfurter to Germany. Frankfurter was sentenced to 18 years in prison but was pardoned in 1945.
As European tension grew in the 1930s, the Swiss began to rethink their political and military situation. The Social Democratic party abandoned their revolutionary and anti-military stances, and soon the country began to rearm for war.[10] BGB Federal Councillor Rudolf Minger, predicting war would come in 1939, led the rebuilding of the Swiss Army. Starting in 1936, he secured a larger defence budget and started a war bond system. The army was restructured into smaller, better equipped divisions and boot camp for conscripts was extended to 3 months of instruction. In 1937 a war economy cell was established. Households were encouraged to keep a two-month supply of food and basic necessities.[10] In 1938 Foreign Minister Giuseppe Motta withdrew Switzerland from the League of Nations, returning the country to its traditional form of neutrality.
Actions were also taken to prove Switzerland's independent national identity and unique culture from the surrounding Fascist powers. This policy was known as Geistige Landesverteidigung, or "spiritual national defence". In 1937, the government opened the Museum of Federal Charters. Increased use of Swiss German coincided with a national referendum that made Romansh a national language in 1938, a move designed to counter Benito Mussolini's attempts to incite Italian nationalism in the southern Grisons and Ticino cantons.[10] In December of that year in a government address, Catholic-Conservative Councillor Philipp Etter urged a defence of Swiss culture. Geistige Landesverteidigung subsequently exploded, being featured on stamps, in children's books, and through official publications.[10]