The bit where one is a supranational organization and the other is a federal state, apparently. Despite stressing the importance of spillover in the integration process, even neofunctionalism doesn't suggest market liberalisation is a deliberate federalising project. The word 'union' does not automatically connote something more than deep multilateral ties. I don't understand what you're trying to get at. Do xenophobic people exist in Europe? Yes. Has there been an element of xenophobia in the Swiss vote? I imagine so. But the four freedoms are about a whole lot much more than that, and Europe failing to go full speed ahead towards complete federalisation isn't indicative of anything in that vein.