d in any war in almost two centuries. An armed neutrality
was preserved in both World Wars. Sweden's long-successful economic
formula of a capitalist system interlarded with substantial welfare
elements was challenged in the 1990s by high unemployment and in
2000-02 by the global economic downturn, but fiscal discipline over
the past several years has allowed the country to weather economic
vagaries. Sweden joined the EU in 1995, but the public rejected the
introduction of the euro in a 2003 referendum.

Switzerland
The Swiss Confederation was founded in 1291 as a
defensive alliance among three cantons. In succeeding years, other
localities joined the original three. The Swiss Confederation
secured its independence from the Holy Roman Empire in 1499.
Switzerland's sovereignty and neutrality have long been honored by
the major European powers, and the country was not involved in
either of the two World Wars. The political and economic integration
of Europe over the past half century, as well as Switzerland's role
in many UN and international organizations, has strengthened
Switzerland's ties with its neighbors. However, the country did not
officially become a UN member until 2002. Switzerland remains active
in many UN and international organizations, but retains a strong
commitment to neutrality.

Syria
Following the breakup of the Ottoman Empire during World War
I, France administered Syria until its independence in 1946. The
country lacked political stability, however, and experienced a
series of military coups during its first decades. Syria united with
Egypt in February 1958 to form the United Arab Republic, but in
September 1961 the two entities separated and the Syrian Arab
Republic was reestablished. In November 1970, Hafiz al-ASAD, a
member of the Socialist Ba'th Party and the minority Alawite sect,
seized power in a bloodless coup and brought political stability to
the country. In the 1967 Arab-Israeli War, Syria lost the Golan
Heights to Israel, and during the 1990s Syria and Israel held
occasional peace talks over its return. Following the death of
President al-ASAD, his son, Bashar al-ASAD, was approved as
president by popular referendum in July 2000. Syrian troops -
stationed in Lebanon since 1976 in an ostensible peacekeeping role -
were withdrawn in April 2005. During the July-August 2006 conflict
between Israel and Hizballah, Sy