The joint bid from the two countries secured the highest number of votes from UEFA in the final ballot, beating off rival proposals from Hungary and Greece/Turkey for the right to host the soccer tournament.
Austria and Switzerland, the pre-vote favourites to win the race, secured the necessary absolute majority - half plus one vote of the eligible members - to win the race to host the tournament.
Austrian Football Association president Friedrich Stickler said: "I am deeply touched. What I have realised is that the contacts with the other bidders have been fair and born from friendship and for me it is something I will never forget."
The bid from Austria and Switzerland impressed UEFA because of the high standard of hotels, communications, rail links and police facilities. The nations' central European location was also a key factor given their close proximity to a number of the teams potentially competing in the tournament.
The two countries' immediate neighbour Germany is hosting the World Cup two years prior to the 2008 European Championships meaning that that corner of Europe will host the two most prominent soccer tournaments in succession.
Other bids from Russia, Scotland/Ireland, a joint proposal from Bosnia and Croatia, and a Nordic submission from Denmark, Finland, Norway and Sweden were also eliminated from the procedure.
In announcing the result of the vote, UEFA president Lennart Johannson praised the quality of all of the bids.
"I cannot speak highly enough of the effort that has been made," he said. "The process is a tribute to each of the 14 associations involved, and to the political authorities and the fans of football who have given such tremendous backing to their bids."
UEFA representatives have made a number of visits to the bidding countries to study various aspects such as stadiums, security, transport and communications, before the Executive Committee reached its final verdict. A number of bidding countries have already started updating their football infrastructures as a result of their candidatures.
Said Johannson: "New investments are taking place in stadiums and development projects across the bidding countries. I believe the future of European football is in safe hands."
Austria and Switzerland will jointly host the 2008 European Championships following a vote of UEFA members.
