Neutral doesn’t mean defenseless. Switzerland is easily defendable and had strong fortifications since the late 1800s. Mountains are hard to invade and there were a bunch of extensive fortifications. Key infrastructure (such as bridges and tunnels) required to move troops and equipment into the country were rigged to explode. In addition, they were prepared to wage a brutal guerrilla war if invaded (militias were told to ignore any potential surrender by the government), with stockpiles of supplies hidden in the mountains. It would have been extremely costly to conquer Switzerland, even if it was possible.
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