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I believe the answer you are looking for is Switzerand. Surrounded by the Alps, Switzerland borders Italy, Germany, and France, yet stayed out of both World Wars. In the Medieval period and beyond, Swiss mercenaries were known as the most elite soldiers in Europe. However, the nation itself always remained neutral. Everyone in the nation, even to this day, is prepared to defend Switzerland in case of invasion, but no forces are sent internationally. Today, the only Swiss merecenaries left are the members of the Pontificial Swiss Guard in the Holy See.

AnswerThe answer isn't bad, but isn't completely correct either. Switzerland was founded in 1291 as small coalition against any invaders (the co-founder states are Uri, Schwyz - giving the name - and Unterwalden), as the territory was occupied and had lost any protection. Its soldiers were then famous - as already said - for being the most elite soldiers in Europe defying any opponent in the past... 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 blamed 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!!

The other thing why Switzerland is usually referred as the neutral one is because to join any supranational institution there has to be held a people's vote... and Switzerland refused three times the EU (European union), it just joined the UNO in about 2002.

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