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Campione d'Italia, a tiny Italian enclave on the shores of Switzerland's Lake Lugano, is fighting for its survival after its main source of income.
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The best of our journalism, handpicked each day Sign up to our free daily newsletter, The Economist today Sign up now.{/INSERTKEYS}{/PARAGRAPH} Its casino, owned by the local government, was founded in , reputedly to help tease intelligence out of off-duty diplomats in the first world war. This article appeared in the Europe section of the print edition under the headline "Unhappy recruit". And until this week they were, in effect, part of the Swiss customs area, an arrangement with which they were perfectly happy. Still, by placing it under a customs regime different from that of the country surrounding it, the EU may have opened a potential new source of income for some—smuggling. {PARAGRAPH}{INSERTKEYS}With fewer than 2, residents, the exclave results from a territorial adjustment in the 16th century. Like similar geopolitical oddities, Campione has a colourful past. At the start of Campione was brought into the EU customs area, meaning all sorts of new checks and duties will now be required. Visitors coming from Switzerland encounter a grandiose arch marking the frontier. They drive on Swiss number-plates. Reuse this content The Trust Project.