Strictly speaking, Switzerland exists, but it's not entirely locally-governed. The government did not survive its crisis. In the wake of the government collapse, one thing led to another, and France, Italy, and Germany would up jointly administering the place in order to prevent mass starvation. It wasn't a military invasion -- the official presence was aid workers, and the main supply line was food. Officially, the nation is now a trust territory while the responsible powers work to restore local order and governance.
Now, there is some resentment and tension, because Switzerland. Some Swiss nationalists suspect that the administering countries have little intention to withdraw from Switzerland once it's stable again, but there never was an invasion, and there is no military occupation. The government fell, the people began to starve, and the neighbors sent in people to stop the starving and help the government back to its feet.
That operation collapsed as the neighbors fell into chaos, and the presence and then absence of help set things back for Switzerland quite a bit, but when things restabilized, attempts to resume the operation were met with acceptable levels of warmth, and so food and aid began to flow into the country once again. Currently, they're at the stage where they ensure that the individual cantons are stable and able to stand on their own feet. That stage is nearly done, and the next stage is federal reformation, whereupon the operation is scheduled to come to an end and Switzerland is scheduled to be recognized by all participating powers. Some elements in the administering countries want to nab a slice of land -- but they are minorities, given how hard to occupy and unrewarding to hold Swiss territory is.