Why is Switzerland neutral?
because Switzerland is not a part of European union even of it is in the middle of Europe
Switzerland was founded in 1291 as small coalition against any invaders, as the territory was occupied and had lost any protection. Its soldiers were then famous for being the most elite soldiers in Europe... and fighting as mercenaries anywhere a battle was. But during the battle of Marignano in 1515, north of Milano in Italy, the two armies killing each other mainly consisted of Swiss mercenaries...
After this desastrous event, Switzerland kept out of any international conflict... one exeption was when Napoleon conquered Switzerland integrating Swiss soldiers into his troops against Russia. After the Napolean Wars the neutrality of Switzerland was accepted or even imposed by the winning powers (1815). The french-German war around 1870/71 and the first world war passed mainly beside Switzerland, the army was quite mediocre a that time compared to the fighting nations.
A better or more modern army was mobilised just some day before the second world war started - the German preparations for war were obvious. Switzerland simply declared to be neutral - nowadays some industrials and bankers are blaimed for having done deals with Germany getting rich themselves. The country itself was neutral, nevertheless... Swiss army leaders planned for an alpine retirement war against Germany, leaving all cities to the ennemy at once (in theory)! trying to avoid civilian casualties... but occupying any alpine connections north-south. A war-declaration against Germany would probably have been suicide... no allies were available, Germany easily run over Poland and France. England was defending itself during the battle of Britain... Russia stood with Germany that time... and the USA were NEUTRAL, only entering the war after the direct Japanese attacks on the 7th of December 1941, two years after the war had started!! So, Switzerland is referred to as to be neutral. The other thing is, Swiss population refused three times the European Union in public votings and the country didn't join the UNO before 2002, but beeing partner of any UNO-subinstitution for already many years.