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Liechtenstein

 
Dictionary: Liech·ten·stein   (lĭk'tən-stīn', lĭKH'tən-shtīn') pronunciation
Liechtenstein
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Liechtenstein
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A small Alpine principality in central Europe between Austria and Switzerland. It was created as a principality within the Holy Roman Empire in 1719 and became independent in 1866. Vaduz is the capital. Population: 34,200.

Liechtensteiner Liech'ten·stein'er n.

 

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Principality, western Europe. It is located between Switzerland and Austria. Area: 62 sq mi (160 sq km). Population (2005 est.): 34,800. Capital: Vaduz. The Liechtensteiners are descended from the Alemanni tribe that came into the region after AD 500. Languages: German (official), Alemanni dialect, Walser dialect. Religions: Christianity (predominantly Roman Catholic; also Protestant); also Islam. Currency: Swiss franc. The eastern two-thirds of Liechtenstein's small territory is composed of the foothills of the Rhätikon Massif, part of the central Alps. The western section of the country is occupied by the Rhine River floodplain. Liechtenstein has no natural resources of commercial value, and virtually all raw materials, including wood, have to be imported. Manufacturing includes metalworking, pharmaceuticals, optical lenses, electronics, and food processing. A tourist centre, Liechtenstein is also a centre of banking because of its stable political situation and its absolute bank secrecy. It is a constitutional monarchy with one legislative house; its chief of state is the prince, and the head of government is the prime minister. The Rhine plain was occupied for centuries by two independent lordships of the Holy Roman Empire, Vaduz and Schellenberg. The principality of Liechtenstein, consisting of these two lordships, was founded in 1719 and remained part of the Holy Roman Empire. It was included in the German Confederation (1815 – 66). In 1866 it became independent, recognizing Vaduz and Schellenberg as unique regions forming separate electoral districts. In 1921 it adopted Swiss currency, and in 1923 it joined the Swiss customs union. A coalition that ruled Liechtenstein for almost 60 years dissolved in 1997. Into the early 21st century Prince Hans Adam II continued his long-standing battle for constitutional changes that would increase his powers.

For more information on Liechtenstein, visit Britannica.com.

German Literature Companion: Liechtenstein
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Liechtenstein, a remote Alpine principality (Fürstentum) with only 21, 000 inhabitants in the upper Rhine valley between Switzerland and Austria. It is a possession of the Liechtenstein family. It was given its present status by the Emperor Karl VI in 1719. After the dissolution of the Holy Roman Empire it was included in the French-sponsored Confederation of the Rhine (1806-14, see Rheinbund), and in 1815 became one of the member states of the German Confederation (see Deutscher Bund). With the collapse of the Confederation after the War of 1866 (see Deutscher Krieg), Liechtenstein entered into tariff and other relationships with Austria-Hungary. When the Dual Monarchy disintegrated in 1918, the little state, long wisely ruled (1858-1929) by Johann II (b. 1840), prudently put itself under the wing of Switzerland, remaining nominally independent, but entering into monetary, postal, and economic union with the Swiss, who also represent its interests abroad.

Many of the princes of Liechtenstein held high office under the Habsburgs, and the family owned a baroque palace in the Herrengasse, Vienna, and a summer palace (Sommerpalais, 1701-12) in the Rossau, IX. Bezirk. This long housed what was probably the finest private collection of pictures in the world (Liechtensteinsche Gemäldesammlung). Though some of the pictures have been sold, the bulk of the collection is now in Vaduz, capital of Liechtenstein.

The medieval poet Ulrich von Liechtenstein was not connected with this region but belonged to a collateral branch of the family in Styria which became extinct in 1619.

 
Columbia Encyclopedia: Liechtenstein
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Liechtenstein (lĭkh'tənshtīn'), officially Principality of Liechtenstein, principality (2005 est. pop. 33,700), 62 sq mi (160 sq km), W central Europe. It is situated in the Alps between Austria and Switzerland and is bounded in the west by the Rhine River. Vaduz is the capital.

Land, People, Economy, and Government

The country is mainly mountainous, with the Rhine valley in its western third. The population is largely Roman Catholic, with a Protestant minority. German is the national language; Alemannic, a High German dialect, is also spoken. There is a large component of foreign workers.

Historically agricultural, Liechtenstein has been increasingly industrialized, with industry and services now employing most of the workforce. Only a small fraction of the population still engages in agriculture, producing wheat, barley, corn, potatoes, livestock, and dairy products. The leading manufactures include electronics, metals, dental products, ceramics, pharmaceuticals, and precision and optical instruments. A large part of the production is exported. Tourism is an increasingly important industry. About a third of state revenues are derived from the many international corporations that are headquartered in Liechtenstein because of the low business taxes. The stable political environment and the secrecy of its financial institutions contribute to Liechtenstein's reputation as a banking center and tax haven. Agricultural products, raw materials, fuels, machinery, metal goods, foodstuffs, textiles, and motor vehicles are imported. The main trading partners are the European Union countries and Switzerland.

Liechtenstein is a constitutional monarchy governed under the constitution of 1921 as amended. The hereditary monarch is the head of state. The head of government is appointed by the monarch, and the cabinet is elected by the legislature. Members of the 25-seat unicameral Parliament or Landtag are elected by popular vote for four-year terms. Liechtenstein uses Swiss currency and is represented abroad through Switzerland. Administratively, Liechtenstein is divided into 11 communes.

History

The Liechtenstein ruling house is an old Austrian family. The principality was created in 1719 by uniting the county of Vaduz with the barony of Schellenburg. The princes, vassals of the Holy Roman emperors, also owned huge estates (many times larger than their principality) in Austria and adjacent territories; they rarely visited their country but were active in the service of the Hapsburg monarchy. Liechtenstein became independent in 1866, after having been a member of the German Confederation from 1815 to 1866.

The principality escaped the major upheavals of the 19th and 20th cent. Prince Hans Adam II succeeded to the throne in 1989 after the death of his father, Francis Joseph II, and has had a number of conflicts with the parliament due to his attempts to have a significant role in running the government, particularly its economic policy. In 2003 voters approved a number of constitutional amendments that the prince had demanded, including giving him the right to dismiss the government and approve judicial nominees.

Bibliography

See P. Raton, Liechtenstein: History and Institutions of the Principality (1970); T. A. Larke, Index and Thesaurus of Liechtenstein (1984).


Geography: Liechtenstein
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(likh?-tuhn-steyen, likh?-tuhn-shteyen) Constitutional monarchy in west-central Europe, located in the Alps between Austria and Switzerland. Its capital and largest city is Vaduz.

  • Not quite as large as Washington, D.C., Liechtenstein is one of the smallest European countries.

Dialing Code: Liechtenstein
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The international dialing code for Liechtenstein is:   423


Local Time: Liechtenstein
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It is 10:50 PM, November 29, in Liechtenstein.

Statistics: Liechtenstein
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Click to enlarge flag of Liechtenstein
Introduction
Background:The Principality of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleanic wars, it became a sovereign state in 1806 and joined the Germanic Confederation in 1815. Liechtenstein became fully independent in 1866 when the Confederation dissolved. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained neutral), the country's low taxes have spurred outstanding economic growth. In 2000, shortcomings in banking regulatory oversight resulted in concerns about the use of financial institutions for money laundering. However, Liechtenstein implemented anti-money-laundering legislation and a Mutual Legal Assistance Treaty with the US that went into effect in 2003.
Geography
Map of Liechtenstein
Location:Central Europe, between Austria and Switzerland
Geographic coordinates:47 16 N, 9 32 E
Map references:Europe
Area:total: 160 sq km
land: 160 sq km
water: 0 sq km
Area - comparative:about 0.9 times the size of Washington, DC
Land boundaries:total: 76 km
border countries: Austria 34.9 km, Switzerland 41.1 km
Coastline:0 km (doubly landlocked)
Maritime claims:none (landlocked)
Climate:continental; cold, cloudy winters with frequent snow or rain; cool to moderately warm, cloudy, humid summers
Terrain:mostly mountainous (Alps) with Rhine Valley in western third
Elevation extremes:lowest point: Ruggeller Riet 430 m
highest point: Vorder-Grauspitz 2,599 m
Natural resources:hydroelectric potential, arable land
Land use:arable land: 25%
permanent crops: 0%
other: 75% (2005)
Irrigated land:NA
Natural hazards:NA
Environment - current issues:NA
Environment - international agreements:party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Wetlands
signed, but not ratified: Law of the Sea
Geography - note:along with Uzbekistan, one of only two doubly landlocked countries in the world; variety of microclimatic variations based on elevation
People
Population:34,761 (July 2009 est.)
Age structure:0-14 years: 16.6% (male 2,877/female 2,901)
15-64 years: 69.4% (male 11,917/female 12,220)
65 years and over: 13.9% (male 2,085/female 2,761) (2009 est.)
Median age:total: 41 years
male: 40.4 years
female: 41.5 years (2009 est.)
Population growth rate:0.702% (2009 est.)
Birth rate:9.75 births/1,000 population (2009 est.)
Death rate:7.42 deaths/1,000 population (2008 est.)
Net migration rate:4.66 migrant(s)/1,000 population (2009 est.)
Urbanization:urban population: 14% of total population (2008)
rate of urbanization: 0.5% annual rate of change (2005-10 est.)
Sex ratio:at birth: 1.01 male(s)/female
under 15 years: 0.99 male(s)/female
15-64 years: 0.98 male(s)/female
65 years and over: 0.76 male(s)/female
total population: 0.94 male(s)/female (2009 est.)
Infant mortality rate:total: 4.25 deaths/1,000 live births
male: 5.54 deaths/1,000 live births
female: 2.95 deaths/1,000 live births (2009 est.)
Life expectancy at birth:total population: 80.06 years
male: 76.59 years
female: 83.53 years (2009 est.)
Total fertility rate:1.52 children born/woman (2009 est.)
HIV/AIDS - adult prevalence rate:NA
HIV/AIDS - people living with HIV/AIDS:NA
HIV/AIDS - deaths:NA
Nationality:noun: Liechtensteiner(s)
adjective: Liechtenstein
Ethnic groups:Liechtensteiner 65.6%, other 34.4% (2000 census)
Religions:Roman Catholic 76.2%, Protestant 7%, unknown 10.6%, other 6.2% (June 2002)
Languages:German (official), Alemannic dialect
Literacy:definition: age 10 and over can read and write
total population: 100%
male: 100%
female: 100%
School life expectancy (primary to tertiary education):total: 15 years
male: 16 years
female: 13 years (2004)
Education expenditures:NA
Government
Country name:conventional long form: Principality of Liechtenstein
conventional short form: Liechtenstein
local long form: Fuerstentum Liechtenstein
local short form: Liechtenstein
Government type:constitutional monarchy
Capital:name: Vaduz
geographic coordinates: 47 08 N, 9 31 E
time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions:11 communes (Gemeinden, singular - Gemeinde); Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, Vaduz
Independence:23 January 1719 (Principality of Liechtenstein established); 12 July 1806 (independence from the Holy Roman Empire)
National holiday:Assumption Day, 15 August
Constitution:5 October 1921; amended 15 September 2003
Legal system:local civil and penal codes based on civil law system; accepts compulsory ICJ jurisdiction with reservations
Suffrage:18 years of age; universal
Executive branch:chief of state: Prince HANS ADAM II (since 13 November 1989, assumed executive powers 26 August 1984); Heir Apparent Prince ALOIS, son of the monarch (born 11 June 1968); note - on 15 August 2004, HANS ADAM transferred the official duties of the ruling prince to ALOIS, but HANS ADAM retains status of chief of state
head of government: Head of Government Klaus TSCHUTSCHER (since 25 March 2009)
cabinet: Cabinet elected by the Parliament, confirmed by the monarch
elections: the monarch is hereditary; following legislative elections, the leader of the majority party in the Landtag is usually appointed the head of government by the monarch and the leader of the largest minority party in the Landtag is usually appointed the deputy head of government by the monarch if there is a coalition government
Legislative branch:unicameral Parliament or Landtag (25 seats; members are elected by popular vote under proportional representation to serve four-year terms)
elections: last held 8 February 2009 (next to be held February 2013)
election results: percent of vote by party - VU 47.6%, FBP 43.5%, FL 8.9%; seats by party - VU 13, FBP 11, FL 1
Judicial branch:Supreme Court or Oberster Gerichtshof; Court of Appeal or Obergericht
Political parties and leaders:Die Freie Liste (The Free List) or FL [Claudia HEEB-FLECK and Egon MATT]; Fortschrittliche Buergerpartei (Progressive Citizens' Party) or FBP [Marcus VOGT]; Vaterlaendische Union (Fatherland Union) or VU [Adolf HEEB]
Political pressure groups and leaders:NA
International organization participation:CE, EBRD, EFTA, IAEA, ICCt, ICRM, IFRCS, Interpol, IOC, IPU, ITSO, ITU, OPCW, OSCE, PCA, UN, UNCTAD, UPU, WCL, WIPO, WTO
Diplomatic representation in the US:chief of mission: Ambassador Claudia FRITSCHE
chancery: 2900 K Street, NW, Suite 602B, Washington, DC 20007
telephone: [1] (202) 331-0590
FAX: [1] (202) 331-3221
Diplomatic representation from the US:the US does not have an embassy in Liechtenstein; the US Ambassador to Switzerland is accredited to Liechtenstein
Flag description:two equal horizontal bands of blue (top) and red with a gold crown on the hoist side of the blue band
Economy
Economy - overview:Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial service sector and the highest per capita income in the world. The Liechtenstein economy is widely diversified with a large number of small businesses. Low business taxes - the maximum tax rate is 20% - and easy incorporation rules have induced many holding companies to establish nominal offices in Liechtenstein, providing 30% of state revenues. The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association (EFTA) and the EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe. In 2008 Liechtenstein came under renewed international pressure - particularly from Germany - to improve transparency in its banking and tax systems.
GDP (purchasing power parity):$4.16 billion (2007)
$4.035 billion (2006)
GDP (official exchange rate):$4.993 billion (2007)
GDP - real growth rate:3.1% (2007 est.)
GDP - per capita (PPP):$118,000 (2007 est.)
GDP - composition by sector:agriculture: 8%
industry: 39%
services: 54% (2007)
Labor force:31,000 of whom 13,900 commute from Austria, Switzerland, and Germany to work each day (31 December 2006)
Labor force - by occupation:agriculture: 1.7%
industry: 43.5%
services: 55.4% (31 December 2006)
Unemployment rate:1.5% (31 December 2007)
Population below poverty line:NA%
Household income or consumption by percentage share:lowest 10%: NA%
highest 10%: NA%
Budget:revenues: $424.2 million
expenditures: $414.1 million (1998 est.)
Fiscal year:calendar year
Inflation rate (consumer prices):1% (2001)
Market value of publicly traded shares:$NA
Agriculture - products:wheat, barley, corn, potatoes; livestock, dairy products
Industries:electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, tourism, optical instruments
Industrial production growth rate:NA%
Exports:$2.47 billion (1996)
Exports - commodities:small specialty machinery, connectors for audio and video, parts for motor vehicles, dental products, hardware, prepared foodstuffs, electronic equipment, optical products
Imports:$917.3 million (1996)
Imports - commodities:agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs, motor vehicles
Debt - external:$0 (2001)
Currency (code):Swiss franc (CHF)
Currency code:CHF
Exchange rates:Swiss francs (CHF) per US dollar - 1.0774 (2008 est.), 1.1973 (2007), 1.2539 (2006), 1.2452 (2005), 1.2435 (2004)
Communications
Telephones - main lines in use:20,000 (2005)
Telephones - mobile cellular:27,500 (2005)
Telephone system:general assessment: automatic telephone system
domestic: NA
international: country code - 423; linked to Swiss networks by cable and microwave radio relay
Radio broadcast stations:AM 0, FM 4, shortwave 0 (1998)
Radios:21,000 (1997)
Television broadcast stations:NA (linked to Swiss networks) (1997)
Televisions:12,000 (1997)
Internet country code:.li
Internet hosts:7,639 (2008)
Internet Service Providers (ISPs):44 (Liechtenstein and Switzerland) (2000)
Internet users:22,000 (2006)
Transportation
Pipelines:gas 20 km (2008)
Railways:9 km 1.435-m gauge (electrified)
note: belongs to the Austrian Railway System connecting Austria and Switzerland (2006)
Roadways:total: 380 km
paved: 380 km (2007)
Waterways:28 km (2008)
Military
Military branches:no regular military forces (constitutionally prohibited); Principality of Liechtenstein National Police (Landespolizei, LP) (2008)
Manpower available for military service:males age 16-49: 8,102 (2008 est.)
Manpower fit for military service:males age 16-49: 6,584
females age 16-49: 6,801 (2009 est.)
Manpower reaching militarily significant age annually:male: 199
female: 222 (2009 est.)
Military - note:Liechtenstein has no military forces, but is interested in European security policy and is an active member of the Organization for Security and Cooperation in Europe (OSCE)
Transnational Issues
Disputes - international:none
Illicit drugs:has strengthened money laundering controls, but money laundering remains a concern due to Liechtenstein's sophisticated offshore financial services sector


Wikipedia: Liechtenstein
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Principality of Liechtenstein
Fürstentum Liechtenstein
Flag Coat of arms
MottoFür Gott, Fürst und Vaterland
For God, Prince and Fatherland
AnthemOben am jungen Rhein
"Up on the Young Rhine"

Location of  Liechtenstein  (green)

on the European continent  (dark grey)  —  [Legend]

Location of  Liechtenstein  (green)
Capital Vaduz
47°08.5′N 9°31.4′E / 47.1417°N 9.5233°E / 47.1417; 9.5233
Largest city Schaan
Official languages German
Demonym Liechtensteiner (male), Liechtensteinerin (female)
Government Parliamentary democracy under constitutional monarchy
 -  Prince Hans-Adam II
 -  Regent Alois
 -  Prime Minister Klaus Tschütscher
 -  Landtag Speaker Arthur Brunhart
Independence as principality
 -  Treaty of Pressburg 1806 
 -  Independence from the German Confederation 1866 
Area
 -  Total 160 km2 (211th)
62 sq mi 
 -  Water (%) negligible
Population
 -  2008 estimate 35,446[1] (204th)
 -  2000 census 33,307 
 -  Density 221/km2 (52nd)
573/sq mi
GDP (PPP) 2008 estimate
 -  Total $4.993 billion[2] (155th)
 -  Per capita $118,000[2] (1st)
GDP (nominal) 2008 estimate
 -  Total $4.160 billion[2][3] (142nd)
 -  Per capita $147,700[1][2][3] (1st)
HDI (2007) 0.951[4] (very high) (19th)
Currency Swiss franc (CHF)
Time zone CET (UTC+1)
 -  Summer (DST) CEST (UTC+2)
Drives on the right
Internet TLD .li
Calling code 423

The Principality of Liechtenstein en-us-Liechtenstein.ogg /ˈlɪktənstaɪn/ (German: Fürstentum Liechtenstein, correct-German-pronunciation-of-Fuerstentum-Liechtenstein.ogg ˈfʏʁstəntuːm ˈliːçtənʃtaɪn , Principality of Liechtenstein) is a doubly landlocked alpine microstate in Western Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over 160 km² (about 61.7 square miles) and it has an estimated population of 35,000. Its capital is Vaduz, the biggest town is Schaan.

Liechtenstein is the smallest German-speaking country in the world, and the only alpine country to lie entirely within the Alps. It is also the only German-speaking country not to share a common frontier with Germany. It is a constitutional monarchy divided into 11 municipalities. Much of Liechtenstein's terrain is mountainous, making it a winter sports destination. Many cultivated fields and small farms characterize its landscape both in the north (Unterland, lower land) and in the south (Oberland, upper land). The country has a strong financial sector located in the capital, Vaduz, and has been identified as a tax haven. It is a member of the European Free Trade Association. Liechtenstein is not part of the European Union.

Contents

History

At one time, the territory was part of the ancient Roman province of Raetia. For centuries this territory, geographically removed from European strategic interests, had little impact on European history. Prior to the reign of its current dynasty, the region was enfeoffed to a line of the counts of Hohenems.

The Liechtenstein dynasty, from which the principality takes its name, comes from Castle Liechtenstein in Lower Austria, which the family possessed from at least 1140 until the 13th century, and from 1807 onward. Through the centuries, the dynasty acquired vast tracts of land, predominantly in Moravia, Lower Austria, Silesia, and Styria, though these territories were all held in fief under other more senior feudal lords, particularly under various lines of the Habsburg family, whom several Liechtenstein princes served as close advisers. Thus, without any territory held directly under the Imperial throne, the Liechtenstein dynasty was unable to meet a primary requirement to qualify for a seat in the Imperial diet, the Reichstag.

The family yearned for the added power a seat in the Imperial government would bring, and therefore sought to acquire lands that would be unmittelbar, or held without any feudal personage other than the Holy Roman Emperor himself having rights on the land. After some time, the family was able to arrange the purchase of the minuscule Herrschaft ("Lordship") of Schellenberg and county of Vaduz (in 1699 and 1712 respectively) from the Hohenems. Tiny Schellenberg and Vaduz had exactly the political status required: no feudal lord other than their comital sovereign and the suzerain Emperor.

On 23 January 1719, after the lands had been purchased, Charles VI, Holy Roman Emperor, decreed that Vaduz and Schellenberg were united, and elevated the newly-formed territory to the dignity of Fürstentum (principality) with the name "Liechtenstein" in honour of "[his] true servant, Anton Florian of Liechtenstein". It was on this date that Liechtenstein became a sovereign member state of the Holy Roman Empire. It is a testament to the pure political expediency of the purchases that the Princes of Liechtenstein did not set foot in their new principality for over 120 years.

Schloss Vaduz, overlooking the capital, is still home to the Prince of Liechtenstein

As a result of the Napoleonic Wars, by 1806 the Holy Roman Empire was under the control of French emperor Napoleon I. Napoleon dissolved the Empire and this had broad consequences for Liechtenstein: imperial, legal and political mechanisms broke down. The state ceased to owe obligations to any feudal lord beyond its borders. Modern publications generally (although incorrectly) attribute Liechtenstein's sovereignty to these events. In reality, its prince merely became suzerain, as well as remaining sovereign lord. From 25 July 1806 when the Confederation of the Rhine was founded, the Prince of Liechtenstein was a member, in fact a vassal of its hegemon, styled protector, French Emperor Napoleon I, until the dissolution of the Confederation on 19 October 1813.

Soon afterward, Liechtenstein joined the German Confederation (20 June 1815 – 24 August 1866) which was presided over by the Emperor of Austria.

Then, in 1818, Johann I granted the territory a limited constitution. 1818 also saw the first visit of a member of the house of Liechtenstein, Prince Alois; however, the first visit by a sovereign prince would not occur until 1842.

Developments during the 19th century included:

  • In 1836, the first factory was opened, making ceramics.
  • In 1861, the Savings and Loans Bank was founded, as was the first cotton-weaving mill.
  • Two bridges over the Rhine were built in 1868, and in 1872 a railway line across Liechtenstein was constructed.

Until the end of World War I, Liechtenstein was closely tied first to the Austrian Empire and later to Austria-Hungary; the ruling princes continued to derive much of their wealth from estates in the Habsburg territories, and they spent much of their time at their two palaces in Vienna. The economic devastation caused by this war forced the country to conclude a customs and monetary union with its other neighbour, Switzerland. Liechtenstein's army was disbanded in 1868 for financial reasons. At the time of the dissolution of the Austro-Hungarian Empire, it was argued that Liechtenstein, as a fief of the Holy Roman Empire, was no longer bound to the emerging independent state of Austria, since the latter did not consider itself as the legal successor to the Empire. This is partly contradicted by the coeval Liechtenstein perception that the dethroned Austro-Hungarian Emperor still maintained an abstract heritage of the Holy Roman Empire.

In early 1938, just after the annexation of Austria into Greater Nazi Germany, 84 year old Prince Franz I abdicated, naming his 31 year old third cousin, Prince Franz Joseph, as his successor. While Prince Franz I claimed that old age was his reason for abdicating, it is believed[who?] that he had no desire to be on the throne if Germany were to gobble up Liechtenstein. His wife, whom he had married in 1929, was a wealthy Jewish woman from Vienna, and local Liechtenstein Nazis had already identified her as their Jewish "problem". Although Liechtenstein had no official Nazi party, a Nazi sympathy movement had been simmering for years within its National Union party.[5]

During World War II, Liechtenstein remained officially neutral, looking to neighboring Switzerland for assistance and guidance, while family treasures within the war zone were taken to Liechtenstein (and London) for safekeeping. At the close of the conflict, Czechoslovakia and Poland, acting to seize what they considered to be German possessions, expropriated the entirety of the Liechtenstein dynasty's hereditary lands and possessions in Bohemia, Moravia, and Silesia — the princes of Liechtenstein lived in Vienna until the Anschluss of 1938. The expropriations (subject to modern legal dispute at the World Court) included over 1,600 km2 (618 sq mi) of agricultural and forest land, and several family castles and palaces. Citizens of Liechtenstein were also forbidden to enter Czechoslovakia during the Cold War. More recently the diplomatic conflict revolving around the controversial post-war Beneš decrees has resulted in Liechtenstein not sharing international relations with the Czech Republic or Slovakia. The issue with Slovakia is yet to be resolved, however, Liechtenstein and the Czech Republic established diplomatic relations on 13 July 2009.[6][7][8]. Liechtenstein gave asylum to about 500 soldiers of the First Russian National Army (a collaborationist Russian force within the German Wehrmacht) at the close of World War II; this is commemorated by a monument at the border town of Hinterschellenberg which is marked on the country's tourist map. The act of granting asylum was no small matter as the country was poor and had difficulty feeding and caring for such a large group of refugees. Eventually, Argentina agreed to resettle the asylum seekers permanently. In contrast, the British repatriated the Russians who had fought for Germany to the USSR, and many of them perished in the Gulag.

In dire financial straits following the war, the Liechtenstein dynasty often resorted to selling family artistic treasures, including the priceless portrait "Ginevra de' Benci" by Leonardo da Vinci, which was purchased by the National Gallery of Art of the United States in 1967. Liechtenstein prospered, however, during the decades following, as it used its low corporate tax rates to draw many companies to the country.

The Prince of Liechtenstein is the world's sixth wealthiest leader with an estimated wealth of USD $5 billion.[9] The country's population enjoys one of the world's highest standards of living.

Government functions

The Government building in Vaduz.

Liechtenstein's current constitution was adopted in March 2003, replacing the previous 1921 constitution which had established Liechtenstein as a constitutional monarchy headed by the reigning prince of the Princely House of Liechtenstein. A parliamentary system had been established, although the reigning prince retained substantial political authority.

The reigning prince is the head of state and represents Liechtenstein in its international relations (although Switzerland has taken responsibility for much of Liechtenstein's diplomatic relations). The prince may veto laws adopted by parliament. The prince can call referendums, propose new legislation, and dissolve parliament, although dissolution of parliament may be subject to a referendum.

Executive authority is vested in a collegiate government comprising the head of government (prime minister) and four government councilors (ministers). The head of government and the other ministers are appointed by the prince upon the proposal and concurrence of parliament, thus reflecting the partisan balance of parliament. The constitution stipulates that at least two members of the government be chosen from each of the two regions. The members of the government are collectively and individually responsible to parliament; parliament may ask the prince to remove an individual minister or the entire government.

Legislative authority is vested in the unicameral "Landtag" (Liechtenstein Parliament) made up of 25 members elected for maximum four-year terms according to a proportional representation formula. Fifteen members are elected from the "Oberland" (Upper Country or region) and ten members are elected from the "Unterland" (Lower Country or region). Parties must receive at least 8% of the national vote to win seats in parliament. Parliament proposes and approves a government, which is formally appointed by the prince. Parliament may also pass votes of no confidence in the entire government or individual members. Additionally, parliament elects from among its members a "Landesausschuss" (National Committee) made up of the president of the parliament and four additional members. The National Committee is charged with performing parliamentary oversight functions. Parliament can call for referendums on proposed legislation. Parliament shares the authority to propose new legislation with the prince and with the requisite number of citizens required for an initiative referendum.

Judicial authority is vested in the Regional Court at Vaduz, the Princely High Court of Appeal at Vaduz, the Princely Supreme Court, the Administrative Court, and the State Court. The State Court rules on the conformity of laws with the constitution. The State Court has five members elected by parliament.

New constitution

In a national referendum in March 2003, nearly two-thirds of the electorate voted in support of Hans-Adam II's proposed new constitution to replace the 1921 one. The proposed constitution was criticised by many, including the Council of Europe, as expanding the powers of the monarchy (continuing the power to veto any law, and allowing the Prince to dismiss the Government or any Minister), and the criticisms were accentuated by a threat by the ruling prince that if the constitution failed, he would, among other things, convert some of the royal property for commercial use. However the royal family and the prince enjoy tremendous public support inside the nation and passing the resolution[clarification needed] resulted in a landslide or majority electorate voting in favour.

Honorary Consuls

On 1 July 2007, the Liechtenstein Ruling Prince, H.S.H. Hans-Adam II, and Liechtenstein's Prime Minister, Otmar Hasler, appointed Dr. Bruce S. Allen and Leodis C. Matthews, both in the United States of America, as the first two Honorary Consuls in history for the Principality of Liechtenstein. The U.S. does not maintain an embassy in Liechtenstein, and it is Switzerland's role to conduct and continue good relations between Switzerland, the U.S and the tiny principality.[10]

Geography

Satellite image
Grauspitz, the highest peak in Liechtenstein.

Liechtenstein is situated in the Upper Rhine valley of the European Alps and is bordered to the east by Austria and to the west by Switzerland. The entire western border of Liechtenstein is formed by the river Rhine. Measured north to south, the country is only about 24 km (15 mi) long. In the east, Liechtenstein rises to higher altitudes: its highest point, the Grauspitz, is 2,599 m (8,527 ft). Despite its Alpine location, prevailing southerly winds make the climate of Liechtenstein comparatively mild. In winter, the mountain slopes are well suited to winter sports.

New surveys using more accurate measurements of the country's borders in 2006 have set its area at 160 km2 (61.776 sq mi), with borders of 77.9 km (48.4 mi).[11] Thus, Liechtenstein discovered in 2006 that its borders are 1.9 km (1.2 mi) longer than previously thought.[12]

Liechtenstein is one of only two doubly landlocked countries in the world[2]—being a landlocked country wholly surrounded by other landlocked countries (the other is Uzbekistan). Liechtenstein is the sixth-smallest independent nation in the world by land area.

The principality of Liechtenstein is divided into 11 communes called Gemeinden (singular Gemeinde). The Gemeinden mostly consist only of a single town or village. Five of them (Eschen, Gamprin, Mauren, Ruggell, and Schellenberg) fall within the electoral district Unterland (the lower county), and the remainder (Balzers, Planken, Schaan, Triesen, Triesenberg, and Vaduz) within Oberland (the upper county).

Economy

Looking northward at Vaduz city-centre.
City-centre with Kunstmuseum (Liechtenstein Art Museum).

Despite or perhaps because of its limited natural resources, Liechtenstein is one of the few countries in the world with more registered companies than citizens; it has developed a prosperous, highly industrialized, free-enterprise economy, and boasts a financial service sector as well as a living standard which compares favorably with those of the urban areas of Liechtenstein's large European neighbours. Relatively low business taxes—the maximum tax rate is 20%[13]—as well as easy Rules of Incorporation have induced about 73,700 holding (or so-called 'letter box') companies to establish registered offices in Liechtenstein. This provides about 30% of Liechtenstein's state revenue. Liechtenstein also generates revenue from Stiftungen ("foundations"), which are financial entities created to increase the privacy of nonresident foreigners' financial holdings. The foundation is registered in the name of a Liechtensteiner, often a lawyer.

Recently, Liechtenstein has shown strong determination to prosecute international money-launderers, and worked to promote the country's image as a legitimate finance center. In February 2008, the country's LGT Bank was implicated in a tax-fraud scandal in Germany, which strained the ruling family's relationship with the German government. Crown Prince Alois has accused the German government of trafficking in stolen goods. This refers to its $7.3 million purchase of private banking information illegally offered by a former employee of LGT Group.[14][15] However, the US Senate's subcommittee on tax haven banks said that the LGT bank, which is owned by the royal family, and on whose board they serve, "is a willing partner, and an aider and abettor to clients trying to evade taxes, dodge creditors or defy court orders."[16]

Liechtenstein participates in a customs union with Switzerland and employs the Swiss franc as national currency. The country imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association (EFTA) and the European Union) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe. Since 2002, Liechtenstein's rate of unemployment has doubled, although it stood at only 2.2% in the third quarter of 2004. Currently, there is only one hospital in Liechtenstein, the Liechtensteinisches Landesspital in Vaduz. The GDP (PPP) is $4.16 billion,[2] or $118,000 per person.

Liechtenstein is a large producer of ceramics, and is the world's largest producer of sausage casings and false teeth. Other industries include electronics, textiles, precision instruments, metal manufacturing, power tools, anchors, calculators, pharmaceuticals, and food products. Liechtenstein also produces wheat, barley, corn, potatoes, dairy products, livestock, and wine. Tourism also accounts for a large portion of the country's economy.

Liechtenstein's most recognizable international company and largest employer is Hilti, a manufacturer of direct fastening systems and other high-end power tools. Liechtenstein is also the home of the Curta calculator and the principality produces a large portion of the world's false teeth. (Ivoclar Vivadent, Schaan)

Taxation

The government of Liechtenstein taxes both personal and business income and principal (wealth). The basic rate of personal income tax is 1.2%. When combined with the additional income tax imposed by the communes, the combined income tax rate is 17.82%.[17] An additional income tax of 4.3% is levied on all employees under the country's social security program. This rate is higher for the self-employed, up to a maximum of 11%, making the maximum income tax rate about 29% in total. Tax on income from employment is collected through monthly withholdings by the employer.

The maximum business income tax rate is 18-20%.[2]

Estate duty
Amount (SFr) Rate
The first 200,000 1%
The next 400,000 2%
The next 600,000 3%
The next 800,000 4%
On residue over 2 million 5%

The basic tax rate on wealth is 0.06% per annum and the combined total rate is 0.89%.

Liechtenstein's gifts and estate taxes vary depending on the relationship the recipient has to the giver and the amount of the inheritance. The tax ranges between 0.5% and 0.75% for spouses and children and 18% to 27% for non-related recipients. The estate tax is progressive (see table opposite).

The rate above is halved if the estate passes to the spouse, children, or parents.[18]

The 2008 Liechtenstein tax affair is a series of tax investigations in numerous countries whose governments suspect that some of their citizens may have evaded tax obligations by using banks and trusts in Liechtenstein; the affair broke open with the biggest complex of investigations ever initiated for tax evasion in the Federal Republic of Germany.[19] It was also seen as an attempt to put pressure on Liechtenstein, then one of the remaining uncooperative tax havens – along with Andorra and Monaco – as identified by the Paris-based Organisation for Economic Co-operation and Development in 2007.[20] On 27 May 2009 the OECD removed Liechtenstein from the blacklist of uncooperative countries.[21]

In August 2009, the British Government Department, HM Revenue & Customs, agreed with the Alpine tax haven to start exchanging information. It is believed that up to 5,000 British investors have roughly £3billion stashed in accounts and trusts in the country[22].

Demographics

Liechtenstein is the fourth smallest country of Europe, after the Vatican City, Monaco, and San Marino. Its population is primarily Alemannic-speaking ethnic Germans, although its resident population is approximately one third foreign-born, primarily German speakers from Germany, Austria, and Switzerland, other Swiss, Italians, and Turks. Foreign-born people make up two-thirds of the country's workforce. Nationals are referred to by the plural: Liechtensteiners.

The official language is German; most speak Alemannic, a dialect of German that is highly divergent from Standard German (see Middle High German), but closely related to those dialects spoken in neighbouring regions such as Vorarlberg, Austria. In Triesenberg, a dialect promoted by the municipality is spoken. According to the 2000 census, 87.9% of the population is Christian, of whom 76% adhere to the Roman Catholic faith, while about 7% are Protestant. The religious affiliation of most of the remainder is Islam 4.8%, undeclared 4.1% and no religion 2.8%;[23] around 30 Jews live in Liechtenstein today.

Liechtensteiners have an average life expectancy at birth of 79.68 years (76.1 for males; 83.28 for females). The infant mortality rate is 4.64 deaths per 1,000 live births, according to recent estimates. The literacy rate of Liechtenstein is 100%.[2] The Programme for International Student Assessment, coordinated by the OECD, currently ranks Liechtenstein's education as the 10th best in the world, being significantly higher than the OECD average.[24]

Transport

Map of the Principality of Liechtenstein

Road

There are about 250 km (155 mi) of paved roadway within Liechtenstein.

Rail

9.5 km (5.9 mi) of railway connects Austria and Switzerland through Liechtenstein. The country's railways are administered by the Austrian Federal Railways as part of the route between Feldkirch, Austria, and Buchs, Switzerland. Liechtenstein is nominally within the Austrian Verkehrsverbund Vorarlberg [25] tariff region.

There are four stations in Liechtenstein, namely Schaan-Vaduz, Forst Hilti, Nendeln, and Schaanwald, served by an irregularly-stopping train service that runs between Feldkirch and Buchs provided by the Austrian Federal Rail Service. While EuroCity and other long distance international trains also travel along the route, they do not normally stop at the stations within the borders of Liechtenstein.

Bus

Liechtenstein Bus is a subsidiary of the Swiss Postbus system, but separately run, and connects to the Swiss bus network at Buchs and at Sargans. Buses also run to the Austrian town of Feldkirch.

Bicycle

There are 90 km (56 mi) of marked bicycle paths in the country.

Air

Liechtenstein has no airport; the nearest large airport is Zürich. There is a small heliport at Balzers in Liechtenstein[26][27] available for charter helicopter flights.

Culture

Vineyard on the outskirts of Vaduz.

As a result of its small size, Liechtenstein has been strongly affected by external cultural influences, most notably those originating in the southern German-speaking areas of Europe, including Austria, Bavaria, Switzerland, and specifically Tirol and Vorarlberg. The Historical Society of the Principality of Liechtenstein plays a role in preserving the culture and history of the country.

The largest museum is the Kunstmuseum Liechtenstein, an international museum of modern and contemporary art with an important international art collection. The building by the Swiss architects Morger, Degelo and Kerez is a landmark in Vaduz. It was completed in November 2000 and forms a "black box" of tinted concrete and black basalt stone. The museum collection is also the national art collection of Liechtenstein.

The other important museum is the Liechtenstein National Museum (Liechtensteinisches Landesmuseum) showing permanent exhibition on the cultural and natural history of Liechtenstein as well as special exhibitions. There are also two more museums: a Stamp museum and a Ski museum.

The most famous historical sites are Vaduz Castle, Gutenberg Castle, the Red House and the ruins of Schellenberg.

Music and theatre are an important part of the culture. There are numerous music organizations such as the Liechtenstein Musical Company, the annual Guitar Days and the International Josef Gabriel Rheinberger Society; and two main theatres.

The Private Art Collection of the Prince of Liechtenstein, one of the world's leading private art collections, is shown at the Liechtenstein Museum in Vienna.

Sports

Marco Büchel, skier.

Liechtenstein football teams play in the Swiss football leagues. The Liechtenstein Cup allows access for one Liechtenstein team each year to the UEFA Europa League; FC Vaduz, a team playing in the Swiss Axpo Super League, the first division in Swiss football, is the most successful team in the Cup, and scored their greatest success in the European Cup Winners' Cup in 1996 when they tied and defeated the Latvian team FC Universitate Riga by 1–1 and 4–2, to go on to a lucrative fixture against Paris St Germain, which they lost 0–4 and 0–3.

The Liechtenstein national football team is regarded as an easy target for any team drawn against them; this was the basis for a book about Liechtenstein's unsuccessful qualifying campaign for the 2002 World Cup by British author, Charlie Connelly. In one surprising week during autumn 2004, however, the team managed a 2–2 draw with Portugal, who only a few months earlier had been the losing finalists in the European Championships. Four days later, the Liechtenstein team traveled to Luxembourg, where they defeated the home team 4-0 in a 2006 World Cup qualifying match. In the qualification stage of the European Championship 2008, Liechtenstein beat Latvia 1-0, a result which prompted the resignation of the Latvian coach. They went on to beat Iceland 3-0 on 17 October 2007, which is considered one of the most dramatic losses of the Icelandic national football team.

As an alpine country, the main sporting opportunity for Liechtensteiners to excel is in winter sports such as downhill skiing: the country's single ski area is Malbun. Hanni Wenzel won two gold medals and one silver medal in the 1980 Winter Olympics (she won bronze in 1976), and her brother Andreas won one silver medal in 1980 and one bronze medal in 1984 in the Giant Slalom event. With nine medals overall (all in alpine skiing), Liechtenstein has won more Olympic medals per capita than any other nation.[28] It is also the smallest nation to win a medal in any Olympics, Winter or Summer, and the only nation to win a medal in the Winter Games but not in the Summer Games. Other notable skiers from Liechtenstein are Marco Büchel, Willi Frommelt, Paul Frommelt and Ursula Konzett.

Amateur radio is a hobby of some nationals and visitors. However, unlike virtually every other sovereign nation, Liechtenstein does not have its own ITU Prefix. It uses Switzerland's callsign prefixes (typically "HB") followed by a zero.

Military

Liechtenstein follows a policy of neutrality and is one of few countries in the world that maintains no military. The army was abolished soon after the Austro-Prussian War in which Liechtenstein fielded an army of 80 men, although they were not involved in any fighting. The demise of the German Confederation in that war freed Liechtenstein from its international obligation to maintain an army, and parliament seized this opportunity and refused to provide funding for an army. The prince objected, as such a move would leave the country defenseless, but relented on 12 February 1868, and disbanded the force. The last soldier to serve under the colours of Liechtenstein died in 1939 at the age of 95.[29] Order within the country is kept by a small police force.

See also

References

  1. ^ a b Population statistics, Landesverwaltung Liechtenstein.
  2. ^ a b c d e f g h CIA World Factbook - Liechtenstein.
  3. ^ a b Key Figures for Liechtenstein, Landesverwaltung Liechtenstein.
  4. ^ Human Development Report 2009. The United Nations. Retrieved 5 October 2009
  5. ^ Nazi Pressure? - TIME, 11 April 1938.
  6. ^ "Liechtenstein and the Czech Republic establish diplomatic relations" (pdf). Government Spokesperson’s Office, the Principality of Liechtenstein. 2009-07-13. http://88.82.102.51/fileadmin/_pm.liechtenstein.li/en/090713_PM_Beziehungen_CzFl_en.pdf. Retrieved 2009-08-06. 
  7. ^ "Navázání diplomatických styků České republiky s Knížectvím Lichtenštejnsko" (in Czech). Ministry of Foreign Affairs of the Czech Republic. 2009-07-13. http://www.mzv.cz/jnp/cz/udalosti_a_media/prohlaseni_a_stanoviska/x2009_07_13_lilchtejnstejnsko_navazani_diplomatickych_vztahu.html. Retrieved 2009-07-13. 
  8. ^ http://macedoniaonline.eu/content/view/7526/1/
  9. ^ D. Pendleton, C. Vorasasun, C. von Zeppelin, T. Serafin(1 September 2008). "The Top 15 Wealthiest Royals". Forbes Magazine.
  10. ^ Portal of the Principality of Liechtenstein - News & Statements
  11. ^ "Tiny Liechtenstein gets a little bigger", 29 December 2006.
  12. ^ Liechtenstein redraws Europe map, BBC News, 28 December 2006.
  13. ^ https://www.cia.gov/library/publications/the-world-factbook/geos/ls.html
  14. ^ Wiesmann, Gerrit. "Lilliput's giant-slayer." The Financial Times, 23 February 2008.
  15. ^ A Parasite's Priorities, 22 February 2008.
  16. ^ http://www.abc.net.au/4corners/content/2008/s2383439.htm
  17. ^ Encyclopedia of the Nations
  18. ^ Liechtenstein Personal Taxation
  19. ^ "Skandal gigantischen Ausmaßes" (in German). Süddeutsche Zeitung. 2008-02-15. http://www.sueddeutsche.de/,tt2m2/wirtschaft/artikel/599/158176/. Retrieved 2008-02-21. 
  20. ^ Esterl, Mike; Simpson, Glenn R., Crawford, David (2008-02-19). "Stolen Data Spur Tax Probes". The Wall Street Journal (Google Groups). http://groups.google.com/group/alt.lawyers/browse_thread/thread/6782128a239af406/67aab034a3fcf850. Retrieved 2008-02-20. 
  21. ^ Removal from OECD List of Unco-operative Tax Havens
  22. ^ British Broadcasting Corporation
  23. ^ Publikationen zur Volkszählung 2000 - Amt für Volkswirtschaft - Landesverwaltung Liechtenstein
  24. ^ Range of rank on the PISA 2006 science scale
  25. ^ Verkehrsverbund Vorarlberg
  26. ^ Heliport Balzers FL LSXB
  27. ^ Heliports - Balzers LSXB - Heli-Website von Matthias Vogt
  28. ^ "Per Capita Olympic Medal Table". http://users.skynet.be/hermandw/olymp/reloly.html. Retrieved 2009-01-24. 
  29. ^ Beattie, David (2004). Liechtenstein: A Modern History. London: I.B. Tauris. p. 30. ISBN 185043459X. 

Sources

External links

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Translations: Liechtenstein
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Dansk (Danish)
n. - Liechtenstein

Français (French)
n. - Liechtenstein

Deutsch (German)
n. - Liechtenstein

Português (Portuguese)
n. - Liechtenstein

Español (Spanish)
n. - Liechtenstein

中文(简体)(Chinese (Simplified))
列支敦士登

中文(繁體)(Chinese (Traditional))
n. - 列支敦斯登

한국어 (Korean)
리히텐슈타인 (오스트리아와 스위스 사이에 있는 입헌 군주국; 수도 Vaduz)

עברית (Hebrew)
n. - ‮ליכטנשטיין‬


 
 
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Tschetter (family name)
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