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The Principality of Liechtenstein [ˈlɪktənstaɪn] (help·info) (German: Fürstentum Liechtenstein, IPA: [ˈfʏʁstəntuːm ˈlɪçtənʃtaɪn]) is a tiny, doubly landlocked alpine country in Western Europe, bordered by Switzerland to its west and by Austria to its east. Mountainous, it is a winter sports destination, although it is perhaps best known as a tax haven. Despite this, it is not heavily urbanised.
Many cultivated fields and small farms characterise its landscape both
in the north (Unterland) and in the south (Oberland). It is the
smallest German-speaking country in the world.
History
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At one time, the territory of Liechtenstein formed a 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 faraway Lower Austria, which the family possessed from at least 1140
to the thirteenth century, and from 1807 onward. Through the centuries,
the dynasty acquired vast swaths of land, predominantly in Moravia, Lower Austria, Silesia, and Styria, though in all cases, these territories were held in fief under other more senior feudal lords, particularly under various lines of the Habsburg
family, to whom several Liechtenstein princes served as close advisers.
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 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 countship of Vaduz
(in 1699 and 1712 respectively) from the Hohenems. Tiny Schellenberg
and Vaduz possessed 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, Charles VI, Holy Roman Emperor, decreed Vaduz and Schellenberg were united, and raised to the dignity of Fürstentum (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 member state of the Holy Roman Empire.
As a testament to the pure political expediency of the purchases, the
Princes of Liechtenstein did not set foot in their new principality for
over 120 years.
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 owing 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 a constitution, although it was limited in its nature. 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.
Liechtenstein also had many advances in the nineteenth century, as
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.
When the Austro-Prussian War broke out in 1866, new pressure was placed on Liechtenstein, as, when peace was declared, Prussia
accused Liechtenstein of being the cause of the war through a miscount
of the votes for war with Prussia. This led to Liechtenstein refusing
to sign a peace treaty with Prussia and remained at war although no
actual conflict ever occurred. This was one of the arguments that were
suggested to justify a possible invasion of Liechtenstein in the late
1930s.
Until the end of World War I, Liechtenstein first was closely tied to the Austrian Empire and later to Austria-Hungary;
however, the economic devastation caused by WWI 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 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.
The Prince of Liechtenstein owns vineyards in Vaduz (in the foreground).
In the spring of 1938, just after the annexation of Austria into Greater Germany, eighty-four year-old Prince Franz I abdicated, naming his thirty-one 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 that he had no desire to be on
the throne if Germany were to gobble up Liechtenstein. His wife, whom
he married in 1929, was a wealthy Jewish woman from Vienna, and local
Liechtenstein Nazis had already singled her out as their anti-Semitic
"problem". Although Liechtenstein had no official Nazi party, a Nazi
sympathy movement had been simmering for years within its National
Union party.[4]
During World War II, Liechtenstein remained neutral, while family treasures within the war zone were brought 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,
also including several family castles and palaces. Citizens of
Liechtenstein were also forbidden from entering Czechoslovakia during
the Cold War. Liechtenstein gave asylum to approximately five hundred 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 permanently resettle the
asylum seekers. In contrast, the British repatriated the Russians who had fought for Germany to the USSR, and they all perished in the Gulag.
In dire financial straits following the war, the Liechtenstein
dynasty often resorted to selling family artistic treasures, including,
for instance, 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 $4 billion. The country's population enjoys one of the world's highest standards of living.
Government functions
The Government building in Vaduz.
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Liechtenstein's current constitution was adopted in October 1921. It
established in Liechtenstein a constitutional monarchy ruled by the
reigning prince of the Princely House of Liechtenstein. It also
established a parliamentary system, although the reigning prince
retained substantial political authority.
The reigning prince of the Princely House of Liechtenstein is the
head of state and, as such, 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 the parliament. The prince can call referendums, propose new legislation, and dissolve the parliament, although dissolution of parliament may be subjected to a referendum.
Executive authority is vested in a collegial government (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 the
parliament, thus reflecting the partisan balance of the 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 the parliament; the
parliament may ask the prince to remove an individual minister or the
entire government.
Legislative authority is vested in the unicameral "Landtag"
(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 eight percent of the national vote to win seats
in the parliament. The parliament proposes and approves a government,
which is formally appointed by the prince. The parliament may also pass
votes of no confidence against the entire government or against
individual members. Additionally, the 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.
The parliament can call for referendums on proposed legislation. The
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 the parliament.
In March 2003, the results of a national referendum showed that
nearly two-thirds of Liechtenstein's electorate agreed to vote in
support of Hans-Adam II's proposal of a renewed constitution which
replaced the version of 1921. The implications of the referendum, the
actual changes to the governance of Liechtenstein, and the
repercussions of the vote in the wider context of Europe, are yet
unknown.
On 1 July 2007, the Liechtenstein Ruling Prince, H.S.H. Hans-Adam II, and Liechtenstein Prime Minister, Otmar Hasler, appointed Dr. Bruce S. Allen and Mr. Leodis C. Matthews, ESQ., both in the United States of America, as the first two Honorary Consuls in history for the Principality of Liechtenstein.[5]
Municipalities
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The principality of Liechtenstein is divided into 11 municipalities called Gemeinden (singular Gemeinde). The Gemeinden mostly consist only of a single town. Five of them fall within the electoral district Unterland (the lower county), and the remainder within Oberland (the upper county).
Geography
Satellite image faintly delineating Liechtenstein - enlarge to full page for clarity.
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Liechtenstein is situated in the Upper Rhine valley of the European Alps. The entire western border of Liechtenstein is formed by the river. Measured north to south, the country is only about 24 km (15 mi) long. In its eastern portion, 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 160.475 km² (61.960 sq mi), with borders of 77.9 km (48.4 mi).[6] Thus, Liechtenstein discovered in 2006 that its borders are 1.9 km (1.2 mi) longer than previously thought.[7]
Liechtenstein is one of only two doubly landlocked countries in the world[8]—being a landlocked country wholly surrounded by other landlocked countries; the other is Uzbekistan. It is the only country with a predominantly German-speaking population that does not share a border with the Federal Republic of Germany. Liechtenstein is the
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