Switzerland is moving closer to the European Union - and they could prove a model for the rest of Europe.

The Swiss have voted by referendum, as they usually do, to move closer to the EU.

he sighs of relief must have created a small storm through the corridors of Switzerland's banks and big companies.

Ever since the Swiss rejected closer economic ties with the European Union (also by referendum in 1993) they have struggled to overcome European barriers.

Within the EU, it is sometimes easy to forget that it's a rather impregnable looking place from the outside.

Success story

But any hope that the Swiss are growing closer to the EU must be excellent news for all European Union members as well. Switzerland has an undeserved reputation for being boring; its critics tend to be using a shorthand for stable, well-managed, wealthy.

The Swiss have also made a huge success of a federal system of government which allowed its people from three different communities - French-speaking, German-speaking and Italian-speaking - to live happily in harmony, even through two World Wars in which the original parent nationalities tore another apart.

It is a major achievement, and so obvious a lesson for Europe, Brussels and all the other capitals, that it is beyond mention.

Inflation fighters

So look instead at Switzerland's economic and financial record.

While most of the rest of Europe was mired in uncontrollable inflation two decades ago, Switzerland's economy was in such excellent shape that it was able to charge holders of its currency, the franc, for the pleasure.

Only the Japanese have come near to the same trick, and that was for different reasons.

So a Switzerland closer to the EU would bring lessons of economic management.

But possibly more important, it would bring the solid Swiss franc even closer to the ever-so troubled euro.

That would be a major advantage, giving a bit of backbone where what's left of the Deutschemark soldiers on almost alone.

Switzerland had a grim few years in the early-mid 1990's while it settled down to its ex-EU status.

But this is one of the world's great economies, and nowadays the Swiss economy looks healthier than ever.

Export-led growth could reach 4% in the fourth quarter this year. The French and the Germans would kill for that.

High capital investment and modest labour cost increases are paying off. There is near full employment. Inflation is running at about 1.3%. Lessons for EU states? What do you think?