Liechtenstein is located in the center of the European Alpine arc between Austria and Switzerland. The principality is governed as a constitutional hereditary monarchy. The Reigning Prince has a say in government business.
- Liechtenstein is the sixth smallest country in the world.
- Around 5,700 people live in the capital Vaduz.
- The principality has long been a popular tax haven.
Vaduz – With an area of just 160 square kilometers, Liechtenstein is the fourth smallest country in Europe and is one of the European dwarf states, such as Andorra, Monaco, San Marino and the Vatican State. In 1719, Emperor Charles VI. the county of Vaduz to the principality called Liechtenstein. In the 20th century, the country developed into an important business location and a popular tax haven.
Liechtenstein: First settlers, Rhaetians and Alemanni
Archaeological finds have shown that the first people settled in what is now Liechtenstein as early as the 5th millennium BC. Later, the Celts and the Räter tribe settled here. In 15 BC the area was conquered by the Romans under Emperor Augustus.
After the collapse of the Roman Empire, the Alemanni spread out in the former Roman province of Raetia. Raetia was incorporated into the Frankish Empire in the 8th century and into the Alemannic duchy in the 10th century. In 1180, Emperor Friedrich I handed over the area to the Lords of Schellenberg. In the 14th century, the counties of Vaduz and the Lordship of Schellenberg came into being as a result of division, and these were repeatedly the scene of wars and plundering in the centuries that followed.
Liechtenstein: witch hunts and emergence of the principality
In the 16th and 17th centuries, the County of Vaduz and the Lordship of Schellenberg opened a dark chapter in their history. A series of witch trials ensued. Between 1648 and 1651 alone, around 100 people were accused of witchcraft and executed. The Vaduz witch trials came to an end in 1681 when the Emperor forbade Count Ferdinand Karl von Hohenems to continue the Inquisition. When it came out that the Count had enriched himself from the assets of the convicts, he was banished to Kaufbeuren in Swabia.
After the rulers of Hohenems got into debt, Vaduz and Schellenberg were sold to Prince Hans Adam von Liechtenstein. On January 23, 1719, the county and the lordship were combined to form an imperial principality with the name of Liechtenstein. After Liechtenstein was repeatedly occupied by foreign troops during the coalition wars at the end of the 18th century, Napoleon Bonaparte founded the Confederation of the Rhine, which included the Principality of Liechtenstein as an independent state. Liechtenstein’s independence was finally confirmed at the Congress of Vienna (1814/15). The country became part of the German Confederation.
Liechtenstein: Developments in the 20th Century
Liechtenstein remained neutral during the First World War, but canceled its customs treaty with Austria, which had lost the war, after the end of the war due to the economic losses. There was a rapprochement with Switzerland. In 1923 Liechtenstein became a Swiss customs territory and a year later the Swiss franc was introduced as a currency. Liechtenstein also remained neutral during the Second World War.
In the post-war period, the principality developed into an important business location with great political stability. In 1990 the country joined the United Nations and two years later Liechtenstein took part in the European Economic Area (EEA). In 2004, Prince Hans-Adam II appointed his son, Hereditary Prince Alois von Liechtenstein, as his deputy. However, the title of prince is only inherited after his death. In 2008, a tax affair with some tax evaders from Germany was exposed, which is why the country repositioned itself as a financial center.
Liechtenstein: The Political System
According to the constitution, Liechtenstein has a constitutional hereditary monarchy based on a democratic parliamentary basis. In contrast to other European monarchies, the Prince of Liechtenstein does not only have representative tasks. He has far-reaching powers, has significant influence on the formation of the government and conducts state affairs.
The legislature lies with the Landtag of the Principality of Liechtenstein, which is directly elected by the people and consists of 25 members. The executive is formed by a five-member government, consisting of a head of government and four government councillors. These are appointed by the Reigning Prince at the suggestion of the Landtag. According to a controversial constitutional amendment from 2003, the Reigning Prince himself has the option of dismissing the government without giving reasons.
Liechtenstein: facts at a glance
- Capital: Vaduz
- Official language: German
- Area: 160.5 square kilometers
- Population: 38,650 (as of 2019)
- Currency: Swiss Francs (CHF)
- Administrative division: 11 municipalities
- Religion: Roman Catholic
Liechtenstein: languages and population
According to the constitution, the official language in Liechtenstein is German. The written and media language is Swiss Standard German. There are also various Liechtenstein dialects that can largely be assigned to the Middle Alemannic-High Alemannic transitional dialect. It is astonishing that the local dialects of the mini-state differ significantly from one municipality to the next. Above all, the High Alemannic-Walser-German dialect of Triesenberg stands out strongly from the other dialects.
Liechtenstein has a population of just under 40,000, with around two-thirds of the residents being native Liechtensteiners and almost 60 percent of the foreign resident population coming from the rest of the German-speaking area. The average population density is around 238 people per square kilometer. A curious circumstance: Since 2014, almost all Liechtensteiners have been born abroad because the maternity ward of the Liechtenstein State Hospital was closed.
Liechtenstein: Geography and Cities
In the west, the Alpine Rhine forms the border between the Alpine countries of Liechtenstein and Switzerland. The dwarf state is surrounded by the Swiss cantons of St. Gallen in the west and Graubünden in the south. In the east, the country borders on the Austrian state of Vorarlberg. Around half of the national territory is mountainous. Liechtenstein lies at the western end of the Rätikon and thus at the geological western end of the Eastern Alps. The highest point in the country is the Vorderer Grauspitz with a height of 2,599 meters. The Rhine not only forms the 27-kilometre-long border river, but is also important for the country’s water supply. However, the country’s largest and most important river has repeatedly caused flooding and devastating flood disasters in the past.
The state itself is divided into eleven municipalities. These are in turn assigned to the heavily cultivated north (Unterland) and the less cultivated south (Oberland).
The municipalities of Liechtenstein at a glance
- 1 Ruggell: 2,354 inhabitants, towns: Ruggell
- 2 Schellenberg: 1,119 inhabitants, places: Schellenberg
- 3 Gamprin: 1,687 inhabitants, towns: Gamprin, Bendern
- 4 Eschen: 4,509 inhabitants, towns: Eschen, Nendeln
- 5 Mauren: 4,395 inhabitants, places: Mauren, Schaanwald
- 6 Schaan: 6,027 inhabitants, places: Schaan
- 7 Planken: 479 inhabitants, places: Planken
- 8th Vaduz: 5,701 inhabitants, towns: Vaduz
- 9 Triesenberg: 2,642 inhabitants, towns: Triesenberg, Masescha, Silum, Gaflei, Steg, Malbun
- 10 Triesen: 5,316 inhabitants, towns: Triesen
- 11 Balzers: 4,667 inhabitants, towns: Balzers, Mäls
Country: Interesting facts about the country
Despite its manageable size, Liechtenstein has a lot to offer on 160 square kilometers. In addition to Gutenberg Castle or the Galina falconry center in Malbun, the main town of Vaduz is particularly attractive with a number of sights. These include Vaduz Castle, the Liechtenstein National Museum, the Treasury, the Old Rhine Bridge, the Red House and the Prince of Liechtenstein’s wine cellars.
In addition, the Alpine Rhine Valley and the Samina Valley are particularly scenic. And the hiking routes such as the Fürstensteig or the Eschnerberg high-altitude trail are also very popular. However, since the country has only a limited range of tourism, it is of little importance from an economic point of view. The country only experienced a tourist boom again on the occasion of the 300th anniversary of the Principality of Liechtenstein in 2019. As part of the celebrations, the 75-kilometer Liechtenstein-Weg hiking route was reopened.
The country’s economy is primarily concentrated in the industrial and service sectors. The gross domestic income per inhabitant was 134,210 Swiss francs in 2016 and is one of the highest of all EU countries in an international comparison. The financial services sector with its fiduciary system also plays a key role in the Liechtenstein economy.
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