Liechtenstein

The Principality of Liechtenstein (German: Fürstentum Liechtenstein) is a small, doubly landlocked country in Central Europe (one of only two such states in the world, the other being Uzbekistan), bordered by Switzerland to its west and by Austria to its east. Being mountainous, it is a winter sports resort. It is also known as a tax haven.

History

Main article: History of Liechtenstein

The modern territory of Liechtenstein was at one time a part, albeit a diminuitive one, of the ancient Roman province of Raetia. For centuries this territory, geographically removed from European strategic interests, made little impact on the tide of European history. Prior to the current dynasty, the region was enfiefed to a junior line of the House of Hapsburg.

The Liechtenstein dynasty, from which the Principality takes its name (rather than vice-versa), takes its name from Castle Liechtenstein in faraway Lower Austria, which it owned from at least 1140 to the 13th century and from 1807 onwards. Over the centuries, it acquired vast swathes of land, mostly in Moravia, Lower Austria and Styria, but all these expansive territories were held in fief under other more senior feudal lords, particularly under various lines of the Hapsburg family, to which many Liechtensteins were close advisors. Thus, and 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 which a seat in the Imperial government would garner, and therefore it searched for a land acquisition which would be "unmittelbar" or held without any feudal personage other than the Emperor having rights on the land. After some time, the family was able to arrange the purchase of the minuscule counties of Schellenberg and Vaduz in 1699 and 1712 respectively from an agnatic line of the Hapsburg dynasty. Tiny Schellenberg and Vaduz possesed exactly the political status required, no feudal lord other than their comital sovereign and the suzerain Emperor.

Thereby, on January 23, 1719 after purchase had been duly made, Emperor Charles VI decreed that the counties of Vaduz and Schellenberg be raised to the dignity of principality with the name Liechtenstein in honor of his 'true servant, Anton Florian of Liechtenstein'. It is on this date that Liechtenstein became a sovereign state of the Holy Roman Empire. Ironically, but as testament to the pure political-expediency of the purchases, the Princes of Liechtenstein did not set foot in their new principality for several decades.

In 1806, the Holy Roman Empire was invaded by France. This event had broad consequences for Liechtenstein. Imperial legal and political mechanisms broke down, while the Holy Roman Emperor abdicated. The Empire itself dissolved. As a result, Liechtenstein ceased having any 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.

Until the end of World War I, Liechtenstein was closely tied to Austria, but the economic devastation caused by that conflict forced the country to conclude a customs and monetary union with Switzerland. During World War II, Liechtenstein remained neutral, while family treasures within the war zone were brought to Liechtenstein (and London) for safe keeping. At the close of the conflict, Czechoslovakia and Poland, acting to seize German possessions, expropriated the entirety of the Liechtenstein dynasty's hereditary lands and possessions in Bohemia, Moravia and Silesia. The Princes of Liechtenstein lived of course in Vienna until 1938 and not in the remote valley. The expropriations (subject to modern legal dispute at the World Court) included over 1,600 km&sup2 of farm and forestland along with several family castles and palaces. It is thus little wonder that during the decades of the Cold War, citizens of Liechtenstein were forbidden by Czechoslovakia from even entering that country.

In financial straits following the war, the Liechtenstein dynasty often resorted to selling family artistic treasures, including for instance Da Vinci's priceless portrait "Ginevra de Benci", which was purchased by the United States government. However, the economic condition of Liechtenstein rapidly improved. During the decades following, Liechtenstein prospered, its economy quickly modernizing with the advantage of low corporate tax rates which drew many companies to the country.

The Prince of Liechtenstein is among the world's wealthiest heads-of-state with an estimated wealth of some 2 billion dollars. The country's population enjoys one of the world's highest standards-of-living.

Politics

Main article: Politics of Liechtenstein

Liechtenstein is a parliamentary democracy, headed by the prince, or Fürst, currently Hans-Adam II of Liechtenstein, who succeeded his father after his death in 1989. The parliament of Liechtenstein, the Landtag, consists of 25 representatives chosen by the people. A cabinet of five men and women is responsible for taking care of daily political matters.

In a referendum on July 1, 1984, male voters granted women the right to vote in national (but not local) elections, a victory for Prince Hans-Adam who had supported the legislation. Unlike many other constitutional monarchies, the constitution of Liechtenstein gives many important powers to the Prince, some of which have caused controversy in recent years.

Critics lost their case when a March 2003 popular referendum bolstered the Liechtenstein dynasty's constitutional position. Prior to the referendum, Prince Hans-Adam had announced that he and his family would relocate to Vienna, Austria, leaving Liechtenstein to become a republic if the House's constitutional rights were curbed. The referendum confirmed the broad popularity of the Liechtenstein dynasty and the populace's faith in the Prince Hans-Adam as leader. The Council of Europe either did not take any action.

Communities

Main article: Communities of Liechtenstein

Liechtenstein is divided into eleven communities (Gemeinden - singular Gemeinde), most consisting of only a single town. These are:

Geography

Main article: Geography of Liechtenstein

Liechtenstein is situated in the Rhine valley in the Alps. The entire western border of Liechtenstein is formed by this river. The eastern part of the country is located at higher altitude, the highest point being the Grauspitz, at 2,599 m (8,527 ft.). Despite its alpine location, prevailing southerly winds make the climate of Liechtenstein rather mild. In winter, the mountain slopes are well suited to winter sports.

Liechtenstein is one of only two double landlocked countries in the world, i.e. a country that is surrounded by other landlocked countries. The other example is Uzbekistan.

Economy

Main article: Economy of Liechtenstein

Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialised, free-enterprise economy with a vital financial service sector and living standards on a par with those of the urban areas of its large European neighbours. Low business taxes  the maximum tax rate is 18%  and easy incorporation rules have induced about 73,700 holding or so-called letter box 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 organisation serving as a bridge between the European Free Trade Association (EFTA) and the European Union) since May 1995. The government is working to harmonise its economic policies with those of an integrated Europe. Unemployment has doubled since the year 2000 though it stood at only 2.2% in the third quarter of 2004. This represents the lowest rate in the European Economic Area.

Demographics

Main article: Demographics of Liechtenstein

Liechtenstein is the fourth smallest country of Europe, after the Vatican City, Monaco, and San Marino. Its resident population is approximately one-third foreigners, mainly Germans, Austrians, and Swiss.

The official language is German, though most speak an Alemannic dialect of German. About 76% of the population is Roman Catholic, 7% is Protestant.

Transport

There are about 250 km of roads in Liechtenstein, and 9.5 km of railway. The railway is operated by the Austrian Federal Railways as part of the route between Feldkirch, Austria, and Buchs SG, Switzerland. Four stations in Liechtenstein, at Schaan-Vaduz, Forst Hilti, Nendeln, and Schaanwald, are served by an irregular stopping-train service between Feldkirch and Buchs. EuroCity and other long distance international trains also use the route, but they do not call at Liechtenstein stations. Liechtenstein Bus is a subsidiary of the Swiss Postbus system, and connects to the Swiss bus network at Buchs SG and Sargans.

Sport

Liechtenstein football teams play in the Swiss football leagues. The Liechtenstein Cup allows access to one Liechtenstein team every year in the UEFA Cup -- FC Vaduz, an amateur team normally playing in the Swiss 1st division (i.e. the third level of 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 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 has traditionally been regarded as an easy target for any team drawn against them. In the autumn of 2004, however, in an astonishing week they defeated Luxembourg by 4 goals to 0 in Luxembourg in a qualification match for the 2006 World Cup, and went on four days later to draw 2:2 with Portugal, who had only a few months earlier been the losing finalists in the European Championships.

As an alpine country, the main opportunity for Liechtensteiners to excel is in winter sports such as downhill skiing: Hanni Wenzel won two Olympic titles in 1980.

External links

Principality of Liechtenstein - Official State site
Liechtenstein.Allhere - Portal containing links to Liechtenstein related sites