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The German (and English) country designation "Schweiz" or "Switzerland respectively, along with the Swiss flag, is derived from "Schwyz", one of the founding cantons of Switzerland. A canton is a state of the federal state of Switzerland of which there are 26.
The name Schwyz is first attested in 972 as the village Suittes and is parhaps related to Old High German suedan "to burn", referring to the area of forest that was burned and cleared to build. The name was extended to the area dominated by Schwyz (the Canton of Schwyz), and later to the entire Old Swiss Confederacy: while other cantons tended to resent this in the 15th century, the term Schwyzer was widely adopted as self-designation after 1499, out of spite, as it had been employed as a term of abuse by the Swabian side during the Swabian War, and Eidgenossenschaft and Schwytzerland could be used interchangeably in the 16th century.
taken from How_did_Switzerland_get_its_name
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