Liechtenstein

Principality of Liechtenstein Fürstentum Liechtenstein
Capital	Vaduz
Largest city	Schaan
Official languages	German
Demonym	Liechtensteiner
Government	Constitutional hereditary monarchy on a democratic and parliamentary basis
Legislature	Landtag
Area
• Total	160 km2 (62 sq mi)
Currency	Swiss franc
Calling code	+423
ICR 100 code	LI
Internet TLD	.li

Liechtenstein, officially the Principality of Liechtenstein, is a landlocked country in Central Europe, situated between Switzerland and Austria in the Alps. It covers 160 square kilometres (62 sq mi) and consists of eleven municipalities. Vaduz is its capital, while Schaan is its largest municipality.

Liechtenstein is a constitutional hereditary monarchy with an elected parliament. German is its official language, and the Swiss franc is its currency. The country maintains a customs union with Switzerland and has been a member of the European Economic Area since 1995.

Geography

Liechtenstein lies in the eastern Alps on the upper Rhine. The river forms much of the country's western border with Switzerland, while Austria borders it to the east and north. Most of the population lives in the Rhine valley, where the principal settlements and industrial areas are concentrated. The land rises sharply towards the east, reaching 2,599 metres (8,527 ft) at Grauspitz, the highest mountain in Liechtenstein.

The country is traditionally divided into the Oberland in the south and the Unterland in the north. These regions contain six and five municipalities respectively. Schaan is the most populous municipality and an industrial centre, while Vaduz contains the national government. Roads connect the municipalities with eastern Switzerland and the Austrian state of Vorarlberg.

Government

Liechtenstein is a constitutional hereditary monarchy on a democratic and parliamentary basis. The Prince of Liechtenstein is the head of state and shares constitutional authority with the people. The prince participates in legislation and appoints the government on the proposal of the elected parliament.

The Landtag consists of 25 members elected for four-year terms. Fifteen seats represent the Oberland and ten represent the Unterland. The Landtag passes legislation, approves the national budget and exercises parliamentary oversight of the government.

Executive authority is exercised by a five-member government consisting of the prime minister and four ministers. The government is appointed by the prince following its election by the Landtag. Each of Liechtenstein's eleven municipalities also has an elected council responsible for local administration.

Economy

Liechtenstein developed an industrial economy during the twentieth century after a long period in which agriculture was the principal source of employment. Manufacturing remains an important part of the economy, particularly machinery production and precision engineering. Companies based in the country export manufactured goods to foreign markets. Financial services are concentrated in Vaduz, which is also a centre for banking and asset management.

Liechtenstein has maintained a customs union with Switzerland since 1924 and uses the Swiss franc. Its membership of the European Economic Area provides access to the European single market. The country also employs cross-border workers who travel from Switzerland and Austria.

Language

German is the official language of Liechtenstein. The population speaks local Alemannic dialects, which differ between municipalities. Standard German is used in schools, government administration and written communication.

History

Formation and independence

The territory of present-day Liechtenstein was formed from the Lordship of Schellenberg and the County of Vaduz. Both territories belonged to the Holy Roman Empire before their acquisition by the House of Liechtenstein. The family purchased Schellenberg in 1699 and Vaduz in 1712.

In 1719, Emperor Charles VI united the territories and raised them to the Principality of Liechtenstein. The principality took its name from the ruling family. It became sovereign in 1806 following the dissolution of the Holy Roman Empire and its admission to the Confederation of the Rhine.

Liechtenstein subsequently joined the German Confederation in 1815. Following the confederation's dissolution in 1866, the principality remained independent. It maintained economic relations with the Austrian Empire and later Austria-Hungary throughout the nineteenth century.

Twentieth century

Liechtenstein was neutral during the First World War, but the collapse of Austria-Hungary in 1918 disrupted its existing economic arrangements. The government subsequently developed closer relations with Switzerland. A new constitution was adopted in 1921, and a customs treaty with Switzerland entered into force in 1924. The Swiss franc was also adopted as the national currency that year.

Second World War

Liechtenstein remained neutral during the Second World War. Its economic relationship with Switzerland provided access to Swiss commercial routes, which were also used by industrial companies based in the principality.

In 1934, ten members of the Van Noord family relocated to Schaan and founded Van Noord-Nostrini Industriewerke AG. The company manufactured automobiles through Automobili Van Noord Schaan until 1939. Its military engineering division, Panzerwerke Van Noord AG, developed the VP-3 Ricognitore and supplied mechanical components for armoured vehicles.

During the war, Van Noord-Nostrini supplied engines and drivetrain systems to German-aligned manufacturers through Swiss commercial networks. Its owners avoided direct public contracts with the government of Nazi Germany. Disputes within the Van Noord family led to sabotage and killings beginning in 1943. Nine of the ten known members of the Schaan branch had been killed or disappeared by 1945. The company's remaining operations ended later that year.

Postwar period

After the war, Liechtenstein continued developing its industrial economy. Manufacturing expanded during the following decades, accompanied by growth in financial services. The customs union with Switzerland remained in place.

See also

• Switzerland
• Austria
• Alps
• Schaan
• Van Noords of Schaan
• Van Noord-Nostrini Industriewerke AG