Liechtenstein (officially the Principality of Liechtenstein) is a
landlocked country in the Alpine region of Central Europe and the
sixth smallest country in the world. According to its constitution,
it is a principality organized as a constitutional hereditary
monarchy on a democratic-parliamentary basis. The House of
Liechtenstein provides the sovereign; sovereignty is shared equally
between prince and people.
In the west, the Alpine Rhine
forms the border between the Alpine countries of Liechtenstein and
Switzerland; In the east the principality borders on Austria. The
state is divided into two constituencies and eleven municipalities.
The capital and princely seat is Vaduz. The largest town in terms of
area is Triesenberg, the most populous town is Schaan. The towns of
Schaan, Vaduz and Triesen, which have grown together, form an
agglomeration with around 17,300 inhabitants. The heavily cultivated
north (lower country) and the less cultivated south (upperland)
characterize the landscape of the principality.
With 39,680
inhabitants, Liechtenstein is the smallest state in the
German-speaking area. The official language is German, which in
Liechtenstein corresponds to Swiss Standard German; The
Liechtenstein dialects spoken in everyday life belong to Alemannic.
The proportion of foreigners is around 34 percent.
The
principality, which was created in 1719, was an imperial territory
of the Holy Roman Empire until 1806. It then became a member of the
Confederation of the Rhine and, from 1815, of the German
Confederation and thus gained sovereignty. Because of the
sovereign's connections to the Habsburg Monarchy, Liechtenstein
leaned on Austria until 1919. Since 1923, the country has been
closely linked administratively and economically with neighboring
Switzerland through a customs agreement. At that time, the Swiss
franc was also introduced as a Liechtenstein currency. These steps
had a very positive economic effect, but Liechtenstein did not
experience a strong upswing until after the Second World War.
Liechtenstein has one of the highest industrial quotas in the
world, with around 41 percent of gross value added coming from
industry and the goods-producing sector.
Like Switzerland,
Liechtenstein is a member of the United Nations (UNO) and the
European Free Trade Association (EFTA), but not of the European
Union (EU); In contrast to Switzerland, Liechtenstein belongs to the
European Economic Area (EEA).
Oberland
Balzers - is a picturesque community known for its
historic center. Particularly worth seeing is Gutenberg Castle, a
medieval fortress that sits on a hill above the city. From there you
have a breathtaking view over the valley.
Triesen
Triesenberg -
This idyllic community lies at a height above Vaduz and offers a
wonderful mountain landscape. It is a popular hiking destination and
offers many vantage points from which to overlook the Rhine Valley.
Vaduz - Vaduz Castle, the country's landmark, is located here. It is the
residence of the Prince of Liechtenstein and offers impressive views
over the city and the Rhine Valley.
Schaan - is the largest
municipality in Liechtenstein and offers a beautiful mix of traditional
and modern architecture. Here you can take beautiful walks along the
Rhine and visit the pretty St. Laurentius Church.
Planks
Underland
Gamprin with the district of Bendern
Eschen with the
district of Nendeln
Mauren with the district of Schaanwald
Schellenberg
Ruggell
Entry requirements
There has been a customs agreement between
Switzerland and Liechtenstein since 1924, which is why guarding the
border crossings between these two countries was dismantled soon
afterwards. The border crossings have been monitored with cameras since
2008. You only need a valid passport or identity card when traveling
from Austria. The borders between Liechtenstein and Austria are
regulated by both the Austrian and Swiss border guard corps.
For
EU citizens, the national identity card (identity card) or passport is
sufficient for visa-free entry as a tourist. The principality has been
part of the Schengen area since November 1, 2008. This means that entry
is usually possible without showing ID, despite customs controls.
Airplane
Liechtenstein does not have its own airport and can
therefore only be reached by plane to nearby countries:
Zurich
Airport (Switzerland) - distance by car approx. 100 minutes
St.
Gallen-Altenrhein Airport (Switzerland) - distance by car approx. 35
minutes
Hohenems-Dornbirn Airport (Austria) - Distance by car approx.
35 minutes
Friedrichshafen Airport (Germany) - distance by car
approx. 70 minutes
Train
The almost 8 kilometer long railway
line in Liechtenstein, operated by the Austrian Federal Railways (ÖBB),
is passed by international long-distance trains on the route Vienna -
Linz - Salzburg - Innsbruck - Feldkirch - Buchs SG - Zurich without
stopping. It is possible to arrive with long-distance trains via Buchs
SG or Feldkirch or, with an additional longer journey with S-Bahn or
regional train, also via Bregenz.
Buchs SG in Switzerland is only
3km from Schaan and 6km from Vaduz. From there there is a good bus
connection with bicycles to Liechtenstein (please check in individual
cases). Buchs is particularly suitable if you want to continue your
journey by bike or on foot, due to the short distance to the places in
the Liechtenstein Rhine Valley.
Feldkirch in Austria is 10km from
Schaan and 15km from Vaduz. There are direct bus connections to the
Liechtenstein lowlands and to Schaan on the Feldkirch - Buchs SG line,
with bicycles available (please check in individual cases). Feldkirch
may be cheaper for travelers from Austria and Germany to travel to
Liechtenstein than Buchs SG, especially since the train route is
shorter.
Traveling by local train to one of the three
Liechtenstein train stops Nendeln, Forst Hilti (Schaan) and Schaan-Vaduz
(Schaan) is possible with a change in Buchs SG or Feldkirch. However,
the train service is limited to commuter times (→ Mobility).
The
ÖBB domestic tariff applies to journeys from/to an Austrian train
station or an ÖBB border station to a Liechtenstein train station and
Buchs SG.
For journeys from abroad to a train station in
Liechtenstein, the same ÖBB international tariff applies as for journeys
to an Austrian train station. Sparschiene tickets to a station in
Liechtenstein from abroad or in the opposite direction are also
available; for transport with Switzerland, for example. B. the savings
rail for the Nendeln–Zurich route from €14 (as of December 2018).
The
Swiss Federal Railways (SBB) do not offer direct tickets from
Switzerland to Liechtenstein stops; The ticket is only issued to Buchs
SG; for the remaining route from Buchs SG, an additional ticket from the
Eastern Switzerland Tariff Association (OTV, also: “Ostwind”) must be
purchased.
InterRail and Eurail passes that are valid in Austria
are also valid on the railway line in Liechtenstein.
Tariff
details for “internal traffic” within the cross-border region of Eastern
Switzerland/Liechtenstein/Vorarlberg: → Mobility
Bus
The
nearest option for arriving by long-distance bus is the long-distance
bus station in Feldkirch, Austria. From there it is possible to travel
by train or regional buses to Schaan-Vaduz and some other places in the
principality. Lines 11 and 14 run approximately half an hour during the
day between Feldkirch and the bus station in Schaan.
Car/motorcycle/bicycle
If you come from the north, you can drive via
Feldkirch in Austria. You can then reach Liechtenstein via a country
road. If you come from Germany, it's best to buy a vignette for the
Austrian motorways at a gas station in Germany so that you can get
around Vorarlberg more quickly. There is a cheap vignette for 10 days.
The other, faster route is via the Swiss motorway A 13. It travels
west along the Rhine and past Liechtenstein. You can easily get to
Liechtenstein via one of several bridges. The only disadvantage is the
higher price for the Swiss vignette, which is unfortunately only
available for a whole year. There are the motorway exits: Balzers,
Vaduz, Schaan, Gamprin-Bendern or Ruggell. Liechtenstein itself does not
have a motorway.
The alcohol limit on Liechtenstein roads is 0.8.
Drugs are generally forbidden.
Liechtenstein offers many
opportunities for cyclists. The Rhine Dam in particular, which stretches
along the entire country near the Swiss border, offers a unique
experience for cyclists. Further information: Swiss regional route 35:
Liechtenstein Rhine Valley route Sargans–Altstätten - map
By boat
The Rhine near Liechtenstein is not navigable and is only suitable for
small boats to a limited extent (white water travel). In summer,
however, it is sometimes possible to linger on the sandbanks in the
Rhine and have a barbecue. Swimming is clearly not recommended as the
current of the Rhine is very strong here.
The most important public transport is the bus; local rail transport
is limited to commuters. Located as a small buffer state between Austria
and Switzerland, the principality is well connected to neighboring
regions by public transport, with tariff cooperation between
Liechtenstein, Vorarlberg and eastern Switzerland.
By train
The railway line in Liechtenstein covers almost eight kilometers and is
part of the Feldkirch (Austria) – Buchs SG (Switzerland) railway line,
which is wholly owned by the Austrian Federal Railways (ÖBB) and
operated exclusively by ÖBB. The Liechtenstein stops are Nendeln, Forst
Hilti (Schaan) and Schaan-Vaduz (Schaan), where only local trains stop.
Buchs SG is also the ÖBB border station.
The train service is
aimed at commuters. There are currently four local trains running on
weekdays in the morning and four in the late afternoon in each direction
on the Feldkirch (Austria) – Buchs SG (Switzerland) route. The trains
are listed in the ÖBB timetable image 401 and are also included in the
timetable book of the LIECHTENSTEINmobil transport association
(LIEmobil). The S-Bahn FL.A.CH project for S-Bahn-like operation has not
yet been implemented.
There is a connection to Vorarlberg local
transport and long-distance transport to Austria and Germany in
Feldkirch, and to Swiss local and long-distance transport in Buchs SG.
By bus
Liechtenstein has an extensive bus network. Most lines run
every 30 minutes until around midnight. Only the higher-lying
communities (such as Triesenberg, Planken and Schellenberg) are somewhat
less accessible.
Train and bus fares
Transport associations:
Tickets (travel tickets) can be purchased in Liechtenstein, Austria and
Switzerland.
LIECHTENSTEINmobil (LIEmobil) is the name of the
principality's transport association and is also the operator of the bus
routes.
Tariff cooperation exists with the Vorarlberg transport
association (VVV, logo Vmobil) and the Ostwind tariff association
(Ostwind logo) (also OTV for "Eastern Swiss tariff association"), which
is why continuous tickets are available in all three countries. With
regard to VVV, combined tickets are issued (addition of the two prices),
while for cross-border journeys to Eastern Switzerland, the Ostwind
tariff applies for the entire route, as the Liechtenstein tariff zones
are integrated into the OTV as an extension area.
Special rail
regulations: In principle, the combined tickets (LIEmobil, Ostwind,
combined tariffs) also apply to the Buchs SG – Nendeln route on regional
trains (regulations since December 15, 2019).
LIEmobil and Vmobil:
Tickets that are valid in the entire LIEmobil or Vmobil network area
(i.e. in the case of Vmobil ticket category "maximo") are also valid on
all trains - local and long-distance trains (!) - on the entire
Feldkirch (Austria) route. – Buchs SG (Switzerland) (Note: the LIEmobil
tickets for the entire Liechtenstein network area are also valid on the
cross-border bus line Schaan–Feldkirch–Rankweil–Klaus to Feldkirch).
Freedom of choice for train tickets:
For the Feldkirch – Buchs SG
railway line, there is only partial network exclusivity for journeys
within Liechtenstein up to and including Buchs SG and for journeys to
Vorarlberg. This means that either composite or combined composite
tickets or, optionally, ÖBB tickets can be used for train journeys. The
ÖBB domestic tariff of ÖBB-Personenverkehr AG applies. ÖBB tickets can
generally be purchased via the usual sales channels (in Liechtenstein,
however, only in the ÖBB online ticket shop or via the ÖBB mobile phone
app, as there are no ÖBB sales offices or ticket machines in the
Principality): ÖBB standard tickets (normal price) as well ÖBB advantage
tickets (for holders of an ÖBB advantage card with the usual advantage
card discount). Of course, the ÖSTERREICHcard is also valid on the
Liechtenstein section of the route up to and including Buchs SG.
However, ÖBB weekly/monthly tickets are not available for internal
journeys or for cross-border journeys to Vorarlberg. The easy-out ticket
is no longer valid in Vorarlberg since the 2018/2019 timetable change,
making it unprofitable for Liechtenstein due to the short railway route.
Swiss passport
General subscriptions and all Swiss Travel passes
are recognized, so holders do not need to buy tickets for trips in
Liechtenstein. On the railway line operated by ÖBB, these passes are
only valid on the regional trains between Buchs SG and Nendeln.
Half-fare subscription and Swiss Half Fare Card entitle you to purchase
reduced-price LIE-mobile and OTV tickets as well as reduced-price
LIEmobil-VVV combination tickets (VVV portion according to saver
tariff).
German (official), Alemannic dialect
The currency used is the Swiss franc (CHF).
In terms of architecture, it is one of the dullest countries in Europe. There is something interesting in Vaduz, however, Vaduz Castle is not just a castle, but the residence of the prince, and therefore tourists are simply not allowed there.
In Liechtenstein you can find a wide selection of both local and
international cuisine. So there is e.g. B. Restaurants with Italian,
French, Japanese, Chinese cuisine as well as a branch of an American
fast food chain.
Since Liechtenstein is very expensive by
international standards, the food is not cheap either. Even a doner
kebab can easily cost 12 CHF.
Nightlife in Liechtenstein is relatively sparsely populated. However, there are some bars and discos. The most activity is generally in the capital Vaduz, although the options are limited and some pubs and restaurants have a smoking ban.
There is a campsite in Triesen. You have to calculate around 15 francs per person per night.
The country has a university with more technical subjects. It is located in Vaduz. Most locals do a vocational apprenticeship, although the respective vocational schools are usually located in the neighboring canton of St. Gallen, as Liechtenstein itself does not have a vocational school.
Liechtenstein is a very safe country. This is clear from the fact
that locals rarely lock their bikes, even if they leave them in the
middle of the capital for several hours. The perceived security is
higher than the actual one. Violent crime is almost unknown in
Liechtenstein, but there have been recent cases of blackmail victims
being attacked and beaten on the street. Statistically, a murder case
only occurs every three years, which is why there is a very low police
presence in Liechtenstein.
On normal days, there are only two
police cars on the road throughout the country. Unfortunately, this is
not enough to prevent car and home break-ins, which are now
unfortunately part of the daily news in the newspapers. Nevertheless,
everyday crime cannot be compared with larger cities in German-speaking
countries.
There are no special diseases in Liechtenstein and no vaccinations are necessary. The medical care is excellent and the state hospital is in Vaduz. The European Health Insurance Card applies. Additional payments in Liechtenstein are high; in 2019 it was a flat rate of 115 sfr per month. It may therefore make sense to travel to nearby Austria or Germany.
The climate in Liechtenstein is mild and characterized by foehn-like gusts. The annual rainfall measurements show around 900 to 1,200 millimeters. In winter the thermometer rarely drops below minus 15 degrees, while in summer the average temperatures are between 20 and 28 degrees. There is often snow in Liechtenstein in winter, but foehn breakthroughs from the south can lead to temperatures above +10 or even +15 °C. Warm clothing should be worn in winter.
Liechtenstein is a very enlightened, tolerant and educated country.
Although the High German polite formula Sie exists, people greet each
other with Hoi in the Allemannic dialect. This is also done with
strangers and is in no way to be understood as disrespect.
The
residents are proud of their country and the prince is very popular.
This is definitely something to keep in mind when discussing politics.
Liechtenstein has its own telephone network with the country code
+423. Since Liechtenstein is part of the EEA, the EU roaming rules have
also applied here since June 2017, so that your own tariff from D or A
can be used without additional costs. However, bookings are often made
into a Swiss mobile network, which can lead to additional costs
depending on the local provider.
The independent
Liechtensteinische Post AG works closely with the Swiss Post through the
postal contract with Switzerland. This is clear from the fact that
Liechtenstein and Switzerland treat each other as domestic and therefore
the same tariffs apply. Liechtenstein is also known worldwide for its
postage stamps. There is a postal museum in Vaduz, and you can have a
note stamped in your passport at the Tourist Office (for 3 francs or
euros).
The state name is derived from the House of Liechtenstein, which has
been the head of state since the principality was founded in 1719. The
name of the noble family, in turn, is often traced back to a light
(light-colored) stone. For example, it is said that the family's
ancestral castle, Liechtenstein Castle in Lower Austria, was built on a
light-colored rock in the 12th century.
The state name is
pronounced in Standard High German with a short i. In the Liechtenstein
dialects, however, the digraph ie is realized as a double sound
(diphthong), something like “Liacht”. That was probably the original
pronunciation of the noble name. The German word “licht”, originally
also spelled “lieht” or “liecht” and pronounced with a double sound, was
subject to early New High German monophthongization and has therefore
been written and spoken as “licht” for a long time, a process that the
Upper German dialects did not take part in . Only the spelling “liecht”
was common until the 17th century, but then gradually disappeared.
However, the old spelling was retained in the noble name and state name
Liechtenstein because the princely family preserved it as a
distinguishing feature from other noble families.
The nickname
“principality” also goes back to its founding. The House of
Liechtenstein needed an imperial territory in order to be admitted to
the Imperial Council of Princes of the Holy Roman Empire. This was
achieved with the purchase of the Schellenberg and Vaduz dominions,
which have since formed the Principality of Liechtenstein. After the end
of the Holy Roman Empire in 1806, the nickname remained and the head of
state still bears the title of sovereign as enshrined in the
constitution.
The history of Liechtenstein includes the history of the area of today's Principality of Liechtenstein. The current state of Liechtenstein was created in 1719 from the County of Vaduz and the Lordship of Schellenberg, which had been under joint administration since 1434. Since 1719, the Princes of Liechtenstein have ruled over the 160 km² area on the Alpine Rhine.
Archaeological finds on the Gutenberg and on the Eschnerberg (Borscht
site) show that the area of today's Liechtenstein has been inhabited
since the Neolithic period (5th millennium BC). Bronze cult figures have
been discovered on the Gutenberg. Since the valley was frequently
flooded by the Rhine and was therefore swampy, only the higher areas
were inhabited.
The area was inhabited by Raetians (Vennons)
since the 8th century BC. Celtic influences from the Vindelici can also
be detected. However, the Celts settled west of the Alpine Rhine.
In 15 BC, the area of today's principality became part of the new
Roman province of Raetia. In the 1st century AD, a military road was
built that led from Italy over the Splügen and Chur through what is now
Liechtenstein to Bregenz. Roman rest houses (mansio) were built along
this road in Liechtenstein. However, it is not yet clear whether the
settlement or road station Magia recorded on the Tabula Peutingeriana
was in what is now the municipality of Balzers. Over time, the Roman
language, Latin, prevailed and the Romansh language developed. The old
Raetic language, on the other hand, died out.
Christianization
began in the province of Churrätien in the 4th century. Saint Lucius was
venerated as the first messenger of faith. The remains of a small fort
in Schaan, whose garrison was supposed to secure the Roman road against
the northern Alemanni, are a reminder of the time of the late Roman
Empire. The area around the former fort later formed the medieval
settlement core of Schaan.
After the Roman Empire had collapsed, immigration of the Alemanni could be observed in what is now Liechtenstein. In the 8th century, Raetia was incorporated into the Frankish Empire. Under Charlemagne, the Frankish Gaugrafschaft constitution was introduced in 806. In 842, places and people from today's principality were listed for the first time, including Balzers, Schaan and Eschen (Raetian Urbar, where all royal estates were recorded).
Between the 10th century and 1152, Raetia belonged to the Count of
Bregenz. After the Counts of Bregenz died out, the former Raetia was
split up by inheritance.
Lower Raetia therefore went to the
Counts of Montfort, who later split into the Montfort and Werdenberg
lines. The County of Werdenberg was itself divided, and the County of
Vaduz was created in 1342 through a division of inheritance. Hartmann
III of Werdenberg-Sargans is considered the first Count of Vaduz. Some
scientists see this treaty as the actual founding act of today's
Principality of Liechtenstein. The partition treaty was signed on May 3,
1342 by Hartmann III and his brother Rudolf IV of Werdenberg-Sargans.
In 1379, King Wenceslas granted jurisdiction to Count Heinrich of
Werdenberg. In 1396, the County of Vaduz became imperially subordinate,
confirmed by King Wenceslas, and was thus directly subordinate to the
Emperor. This made it possible to build up sovereignty. In the centuries
that followed, the rulers of Vaduz were repeatedly confirmed as
imperially subordinate. Imperial immediacy was granted because the area
of Liechtenstein today was located on an important highway over the
Alps. Since the Rhine valley was swampy and often flooded, the St.
Luzisteig between Balzers and Maienfeld, which belonged to the Free
State of the Three Leagues, was the only safe transport connection on
the right bank of the Rhine. The only safe connection on the left bank
of the Rhine was the Schollbergstrasse, which was controlled by the
Swiss Confederation.
The Counts of Vaduz died out in 1416. The Barons of Brandis, who came
from the Emmental, took over as rulers. In 1399, Wolfhart IV of Brandis
had already received the County of Vaduz from the Counts of Vaduz as a
pledge. Then, in 1416, he received the Lordship of Schellenberg. The
Counts of Vaduz, Heinrich V of Werdenberg-Sargans and Rudolf VI of
Werdenberg-Sargans, were Wolfhart IV's stepbrothers. Between 1430 and
1437, his son Wolfhart V of Brandis also acquired the northern part of
the Lordship of Schellenberg, the Eschnerberg. He was married to Verena
of Werdenberg-Heiligenberg-Bludenz, a descendant of the last Count of
Toggenburg, Friedrich VII of Toggenburg. Thus, in 1437, the Upper Land
(of the Barons of Brandis) and the Lower Land (of the Lordship of
Schellenberg) were united. The borders of these two dominions form the
current border of the Principality of Liechtenstein.
One should
not imagine the Rhine in the Middle Ages as it does today. Today it
flows in a canal with meter-high dikes. In the Middle Ages, the Rhine
took up almost the entire width of the Rhine Valley. Today it is
canalized and the border is clearly visible. In the Middle Ages, it
consisted of side arms of various sizes, in which islands lay. It was a
floodplain landscape, i.e. areas that were flooded during high water.
This usually happened during the snow melt in spring. During these
times, the picture and flow behavior could change completely. In 1480,
it is reported that the Rhine had broken through the watershed between
the Rhine and Lake Walen and flooded Lake Walen. Parts of the Rhine thus
flowed into the Aare. In any case, the valley became a large lake.
Between Trübbach near Schollberg and Balzers it was 1200 meters wide. At
low water, the Rhine could be waded through without any problem. The
Rhine valley was used by the neighboring communities primarily for
grazing cattle. But fields were also created. Liechtenstein and Swiss
communities used the Rhine floodplains and drove their cattle through
the shallow water into the floodplain landscape. Both sides also tried
to gain solid ground from the Rhine. Protective structures were built to
push the Rhine to the other side of the river. Such protective
structures were called "Wuhren" and often led to disputes between the
villages on both sides of the Rhine. The disputes had to be settled by
arbitration courts. There are a large number of documents dealing with
these arbitration courts. The sovereigns were usually only marginally
involved in these disputes. It was the village cooperatives that pushed
ahead with the construction of the "Wuhren", usually in an uncoordinated
manner and without a plan. The chairmen of the arbitration courts were
called foremen. The chairman of the arbitration courts was appointed by
the Swiss cantons, i.e. Zurich, Lucerne, Uri or Schwyz if the sovereigns
of Vaduz or Schellenberg or their subjects were the plaintiffs. If the
Swiss or Graubünden side filed suit, e.g. the canton of Glarus (which
owned the county of Werdenberg), then the chairman was to come from the
cities of Constance, Radolfzell, Feldkirch or Bregenz. There were dozens
of arbitration proceedings in the late Middle Ages and early modern
times. Disputes over "weirs" were commonplace.
There were no
permanent bridges over the Rhine between what is now Liechtenstein and
the Swiss Confederation. Until the 19th century there was only one
bridge over the Rhine, the Tardis Bridge near Malans, built in 1529.
This was controlled by the Three Confederations. There were, however,
ferry connections: one between Trübbach and Balzers, one between Bendern
and Haag and one between Ruggell and Salez. These were of great economic
and transport importance. Even at low water, the Rhine valley could not
be crossed by wagons. The ground was too wet and not strong enough.
Temporary bridges were also built, but these were usually washed away
again by the floods in spring. Various communities owned areas on both
sides of the Rhine, or on both sides of the strongest arm of the Rhine,
which officially served as a reference point for the border. For
example, the villages of Sennwald, Salez and Haag on the left bank of
the Rhine belonged to the parish in Benders. To the north of this, the
imperial courts of Lustenau and Kriessern included areas on both sides
of the Rhine. Many people did not see the Rhine as a border.
The
parish of Benders played a special role. As already mentioned, the area
of the parish also included areas on the left bank of the Rhine.
However, these belonged to the dominion of the Barons von Sax as the
Forstegg dominion. The parish of Benders was part of the St. Luzi
monastery in Chur. Tithes had to be delivered to this monastery. When
the Reformation was introduced in the Church Association, the abbot of
the monastery brought the monastery treasure to safety in Feldkirch.
Abbot Theodul Schlegel was accused of high treason by the Church
Association and executed. The monastery was placed under compulsory
administration by the city of Chur. But the monks of St. Luzi continued
to be active in Benders and collected tithes from the areas on the left
bank of the Rhine. In 1529, Count Ulrich Philipp von Hohensax also
introduced the Reformation in his area. He was a citizen of the city of
Zurich and a military leader of the Swiss Confederation. While the
villages of Sennwald and Salez adopted the new faith, the church people
of Haag refused to accept it and remained faithful to the old faith. One
factor that played a role here was that the people of Hague felt more
like they belonged to the "rich parish of Benders" than to the "poor
parish of Salez or Sennwald". But who was entitled to the tithe, which
was intended for the spiritual care of the church? The Church
Association as the new ruler of the St. Luzi monastery? The parish of
Benders, which was under the control of the monastery's conventuals who
had fled into exile in Feldkirch, or the churches of Sennwald and Salez,
which had joined the Reformation? On May 2, 1542, this question was
decided in court. Count Ulrich Philipp von Hohensax presided as the
highest lord of the court and the court decided that the church in
Benders was still entitled to the tithe. This made the situation complex
for the people of Hague. On the one hand, there was a church obligation
in Benders, and on the other, in Salez. A compromise was worked out. The
affected families were supposed to send relatives to the Reformed
service in Salez on Friday and to the Catholic mass in Benders across
the Rhine on Sunday. The situation in Haag led to decades of disputes.
It was not until 1637 that the Reformation finally prevailed in Haag,
after the area had already been definitively transferred to the Reformed
canton of Zurich in 1615. The Rhine now also formed a denominational
border between the Reformed areas on the left bank of the Rhine and the
areas of the principality on the right bank of the Rhine that remained
Catholic.
An important question was territorial clarification.
Who owned the Rhine, regardless of usage rights? This question was
clarified by arbitration courts and purchase contracts. In the purchase
contract of the canton of Zurich from the Sax-Forstegg dominion in 1615,
the eastern bank of the Rhine is specified as the border. When the
canton of Glarus purchased the area from the Counts of Werdenberg, the
eastern bank was also specified as the border. The Werdenberg bailiwick
had the right of transport on the Rhine. The Sargans bailiwick, which
operated the ferry between Schollberg and Balzers, also insisted on a
border on the right bank of the Rhine. The Sargans bailiwick was a
common dominion of the Old Swiss Confederacy. This view was not revised
until 1848. Since then, the middle of the Rhine has formed the border
between Liechtenstein and Switzerland.
The 15th century was marked by wars in Liechtenstein: the Appenzell
War (1401–1429), the Old Zurich War (1444–1446) and the Swabian War
(1498–1500). These wars brought much destruction, looting and fires to
the rulers and their subjects. The Swabian War was of greatest
importance, since the Rhine had been the state border between the Swiss
Confederation and the Holy Roman Empire of the German Nation since then.
This meant that the later Principality of Liechtenstein was marginalized
for many centuries.
The Swabian War in particular brought great
distress to the rulers of Vaduz and Schellenberg. They were captured by
the Confederates and only released after the end of the war. The first
clashes of the war between Confederate and Habsburg troops took place in
Balzers and Maienfeld to the south. The Barons of Brandis had controlled
both areas since 1438. However, Maienfeld had also belonged to the Ten
Courts League since 1436 and was thus a member of the Three Leagues. At
the beginning of February 1499, the troops of the Swiss Confederation
were camped in Sargans, and the troops of the Swabian League in Balzers.
On February 6, troops of the Uri captain Heini Wolleb briefly crossed
the Rhine and set fire to several houses in Balzers. The following day,
the mercenaries of the Swabian League attacked the positions of the
Grisons on St. Luzisteig and occupied Maienfeld. But the Grisons did not
give up and attacked Maienfeld on the same day. They put the Swabian
troops to flight and took the lord of the castle, Sigmund II of Brandis,
prisoner, who, unlike his brother Ludwig of Brandis, refused to flee.
After recapturing Maienfeld, the Grisons stormed the fortifications of
St. Luzisteig and conquered Balzers. On February 12, the Swiss
Confederates camped near Sargans intervened in the fighting and defeated
the imperial Swabian troops in the battle near Triesen. On February 13,
the allied Grisons and Swiss Confederate troops captured Vaduz and also
took Ludwig von Brandis prisoner. In negotiations, Ludwig von Brandis
offered 20,000 guilders for his release and for the integrity of his
county of Vaduz. But the allies did not accept such a deal and took him
on the night of February 13-14, first to Werdenberg, then via Rapperswil
to Lucerne. His brother was imprisoned in Chur. For the Lords of
Brandis, the war was over, but not for their subjects. The Swabian and
Swiss troops devastated and plundered the dominions of Vaduz and
Schellenberg. On July 8, the Diet in Lucerne dealt with the captured
lords. The situation was difficult. After all, they were also citizens
of the canton of Bern, and Bern had to ensure their safety. The Diet
wanted to release them, but Ulrich von Sax, who was in the service of
the Swiss Confederation, demanded that Ludwig von Brandis be exchanged
for the Ammann of Appenzell, Rudolf von Rappenstein, an ally of Count
von Sax, who had been captured by the imperial troops. In the meantime,
the subjects of Schellenberg and Vaduz had to swear allegiance to the
Swiss Confederation. After the Peace of Basel, the Diet decided to
release the two brothers and reinstate them in their dominions of Vaduz
and Schellenberg. On December 13, the subjects in Schellenberg and Vaduz
had to swear allegiance to the lords of Brandis again. The country was
devastated by the fighting and just a few years later, in 1512, the
estates were sold to the Counts of Sulz from Rottweil. Ludwig's sister
Verena von Brandis had married into the southern German noble family.
The seller was the last male descendant of the Brandis family, Johannes
von Brandis. Shortly after the sale, the Barons of Brandis died out. The
purchase price was 15,000 guilders and all debts were assumed. The
situation of the Barons of Brandis was a difficult one. On the one hand,
they were members of the Holy Roman Empire, and on the other, members of
the Three Leagues through their rule over Maienfeld. The Three Leagues
were an allied "affiliated place" of the Old Swiss Confederacy. They
were caught between the fronts.
On May 2, 1505, Ludwig von
Brandis signed the so-called "opening treaty" with King Maximilian I. In
it, the Habsburgs committed themselves to occupying the fortress of
Vaduz in the event of war for an annual fee of 200 guilders. It was a
defensive alliance. The Habsburgs took over the defense of the small
regions on the Alpine Rhine.
In 1510, the last Baron von Brandis sold the lordships of Vaduz and
Schellenberg to the Counts of Sulz (see Karl Ludwig zu Sulz), who ruled
Liechtenstein from the associated Landgraviate of Klettgau until 1613.
The Catholic county ensured that the two lordships did not come into
contact with the Reformation. The times under the Counts of Sulz were
considered peaceful. The locals of both lordships were granted rights,
courts and could appoint a Landammann and twelve judges.
In 1613,
the Counts of Sulz sold the lordships of Vaduz and Schellenberg to the
Counts of Hohenems, who were in the process of establishing a buffer
state between Austria and Switzerland. From 1646 to 1654, the brothers
Karl Friedrich von Hohenems and Franz Wilhelm I von Hohenems jointly
ruled the County of Hohenems, the Lordship of Schellenberg and the
County of Vaduz. In 1654, however, they decided to divide the land. Karl
Friedrich was given sole rule over Hohenems, Franz Wilhelm I sole rule
over Schellenberg and Vaduz. This division of land led to the border
between Austria and Liechtenstein that still exists today. Franz Wilhelm
I died unexpectedly in 1662. This led to Karl Friedrich once again
administering the two Hohenems territories together with Franziska
Katharina von Hohenzollern-Hechingen, the wife of Franz Wilhelm I. On
October 20, 1675, Ferdinand Karl von Hohenems took sole rule over
Schellenberg and Vaduz.
In the 17th century, the plague raged in the dominions. The Thirty Years' War also claimed victims, although the two dominions were not directly involved in the war. The Counts of Hohenems also got into debt and had to sell Vaduz and Schellenberg, among other things.
All residents of the two territories were serfs of the sovereigns.
They were subject to their jurisdiction in civil and criminal matters,
had to pay taxes and duties, and had to perform compulsory labor and
military service. The sovereigns secured a large part of the land for
themselves. There were also other landowners such as the monastery in
Pfäfers and the St. Nicolai monastery in Chur. The residents had to pay
tithes to them. Serfdom lasted until 1808. Emigration remained
prohibited until 1843. Unpaid compulsory labor was not abolished until
1848.
The subjects were not completely without rights, however.
In the 15th century, regions were formed in both territories. Such
regions were also widespread in southwest Germany. They represented the
subjects collectively to the sovereign. They collected taxes and carried
out organizational and financial tasks. They also organized the military
in the form of militias. And they also controlled the judicial system.
The head of a region was the Landammann. He was elected by the male
citizens every two years. The sovereign had the right to propose
candidates. However, he had to propose at least three subjects. In
addition, the residents could elect 12 court officials.
The
regions held Landsgemeinden, i.e. meetings at which important points
could be voted on. The regions represented the subjects to the sovereign
and also concluded contracts with the sovereign. In the event of
conflict, they also offered resistance. In 1679, the regions threatened
to revolt. In 1684, the regions, represented by Christoph Anger and Adam
Müssner, sued the sovereign Ferdinand Karl von Hohenems at the Imperial
Court Council in Vienna, and they were successful: the sovereign was
deposed by the emperor, and the dominions were placed under the external
administration of the Prince Abbot of Kempten. Normally, the sovereign
had to come to terms with his subjects.
The regalia were of
particular importance. King Wenceslas had granted this to the Counts of
Vaduz. Regalia were rights that only the sovereign had. In Vaduz, this
included the right to hunt and fish, customs, mines, forests, inns and
the operation of mills. The sovereigns granted temporary concessions and
collected fees and taxes for them.
In addition to the regions,
there were village cooperatives. These were the predecessors of the
political communities. The village cooperatives regulated the management
of the jointly used land. In principle, all families belonging to the
village cooperative could use the common land. The families had to have
their own house and run their own household. You had to buy into a
village cooperative. The cooperative assembly decided on admission. The
head of the family had the right to vote. This could also be women, for
example widows. If a member married a woman from another cooperative or
from abroad, he also had to pay for it. The rights in the village
cooperative were inheritable.
In the villages, private land
ownership was usually very small. It included the house and a small
garden. From the 17th century onwards, smaller areas were allocated to
families for private use and given over to their ownership. These were
often areas close to the Rhine, in areas at risk of flooding. But even
near villages, plots of land were given to families who could manage
them alone. As a rule, however, the cooperative idea took priority. At
first there were no clearly defined boundaries between the village
cooperatives. In the late Middle Ages, these had to be set down in
writing because there had been disputes between the expanding villages.
The alpine cooperatives are to be distinguished from the community
cooperatives. You had to buy into these too. The shares in these were
also inheritable. The alpine cooperatives owned the pastures high in the
Alps, which could only be used in summer. In the late Middle Ages, the
village cooperatives bought almost all of the high alpine pastures from
the sovereigns. However, they continued to hold the ownership. The
Liechtenstein Alpine cooperatives still exist today.
There were
also logging cooperatives. These did not own any land, but rather
regulated the transport business. Since Liechtenstein was on the
international trade route from Lindau to Milan, the farmers who had a
wagon and a draft animal took over the transport of goods between
Feldkirch and Maienfeld. Originally there was only one cooperative. In
the 18th century, three were created. Schellenberg was responsible for
transport between Feldkirch and Schaan, Vaduz between Schaan and
Balzers, Balzers for transport to Maienfeld. The cooperatives regulated
the awarding of contracts to the individual farmers. With the expansion
of the road network, professional hauliers from Feldkirch took over the
transport of goods, often illegally. The logging cooperatives became
insignificant.
The Liechtenstein princely house is one of the oldest noble families in Europe. Around 1136, the first person to bear this name was Hugo von Liechtenstein. He named himself after Liechtenstein Castle, which is located south of Vienna. The Liechtenstein family subsequently owned many properties in Lower Austria, Bohemia and Moravia. There is also evidence of Ulrich von Liechtenstein, a Middle High German poet in the 13th century.
In 1608, the Liechtenstein family was elevated to the status of
princes. In order to be admitted to the Imperial Council of Princes,
however, they needed direct imperial property.
On April 3, 1691,
Aloisia Josepha von Liechtenstein, the daughter of Maximilian II of
Liechtenstein, married Franz Wilhelm II of Hohenems, an imperial
chamberlain, first lieutenant and regimental commander of Emperor
Leopold I. This is how Prince Johann Adam Andreas von Liechtenstein
became aware of the dominions of Schellenberg and Vaduz. The Counts of
Hohenems were in a difficult financial and political situation at the
time. Imperial execution had been initiated against Count Ferdinand Karl
of Hohenems in 1681 and Prince Abbot Rupert of Kempten had been
commissioned to carry it out. The Lordship of Schellenberg and the
County of Vaduz were therefore under imperial administration after the
Count was deposed on June 22, 1684. The brother of Count Jakob Hannibal
III of Hohenems, who died in 1686, tried in vain to assert his claims
and take over the administration. After a long and unsuccessful fight
against the imperial administrators, he sold the Lordship of
Schellenberg to the Prince of Liechtenstein in 1699 for 115,000 guilders
and exchanged the County of Vaduz in 1712 for Bystré u Poličky, a town
in what is now the Czech Republic. Since the county of Vaduz was
directly under the empire, but the area around Bystré u Poličky was not,
he received 56,000 guilders from the Liechtensteiners. The purchase
price for the county of Vaduz was set at 290,000 guilders. Ferdinand
Karl von Hohenems was particularly unpopular with the population. He had
squandered the wealth of the counts of Hohenems-Vaduz and enriched
himself personally through witch trials.
On September 5, 1718,
the population had to pay homage to Prince Anton Florian in Bendern. The
prince was represented by court councilor Stephan Christoph Harpprecht.
On January 23, 1719, Emperor Charles VI elevated the two dominions of
Vaduz and Schellenberg to an imperial principality called Liechtenstein
for his servant Prince Anton Florian of Liechtenstein. This day is still
considered Liechtenstein's birthday. It is also a rarity in history that
the name of a state comes from a ruling family. The Principality of
Liechtenstein became the 343rd member state of the Holy Roman Empire of
the German Nation. Liechtenstein was subsequently the southernmost
member of the Swabian Imperial Circle.
Although the Prince of
Liechtenstein ruled the country, he did not know it. He continued to
live in Vienna and had Liechtenstein administered by governors - in the
spirit of absolutism, which led to conflicts with the population.
Liechtenstein was a theatre of war for the last time when the French
under Napoleon Bonaparte passed through Liechtenstein in 1799 to besiege
nearby Feldkirch. In March of that year, 3,000 infantry, 278 officers
and 1,613 cavalry of the French army under General André Masséna crossed
the Rhine and quartered themselves in Balzers. On March 5, they
successfully attacked the nearby Graubünden fortress of St. Luzisteig
from Liechtenstein territory, which had been held by Austrian troops
under General Franz Xaver von Auffenberg since October 1798. On May 14,
1799, the Swiss general in Austrian service Friedrich von Hotze managed
to recapture the fortress, also from Liechtenstein territory.
Liechtenstein and especially Balzers suffered greatly from the
quartering of Austrian, French and Russian troops. In October 1799, the
defeated army of the Russian general Alexander Suvorov passed through
the country. The situation worsened in 1800 due to the spread of
foot-and-mouth disease and periods of drought.
On July 12, 1806,
the principality gained its sovereignty by being admitted to the
Confederation of the Rhine, shortly before the Holy Roman Empire of the
German Nation was dissolved. It was a political gesture by Napoleon to
the ruling Prince Johann I Josef, who was not consulted about the
admission.
From February 1815, Liechtenstein was represented at
the Congress of Vienna by the Reuss Vice-Chancellor Georg Walter Vincent
von Wiese. The Congress admitted Liechtenstein into the German
Confederation as an independent small state. Liechtenstein thus became
the only small German state, alongside Luxembourg, to have been able to
maintain its sovereignty to this day.
At the beginning of the
19th century, Liechtenstein's economic isolation became a disadvantage,
while its neighboring states gradually industrialized. The high tax
burden on the state also had a detrimental effect. Progressive reforms
were rejected by the prince. In the European revolutionary year of 1848,
Liechtenstein also threatened to be revolutionized, but ultimately
absolutism remained.
Nevertheless, there was progress at the
beginning of the 19th century. In 1803, the first smallpox vaccination
was carried out in Liechtenstein, in 1805 compulsory schooling was
introduced, and in 1807 a tax code was passed. In 1808, political
communities in the modern sense were created in Liechtenstein and
serfdom was finally abolished. In 1809, a land register was introduced,
and in 1811, much of the communal land was privatized. In 1812, the
General Civil Code of Austria was adopted. On September 1, 1817, the
first letter collection point was finally opened by the Imperial and
Royal Austrian Postal Administration in Balzers. Liechtenstein was thus
connected to the Austrian postal network. A letter collection point
followed in Vaduz in 1845.
On the other hand, many
Liechtensteiners emigrated overseas in the 19th century. Others left the
country temporarily as guest workers. They work as seasonal workers and
construction workers throughout Europe and in North Africa. Many
children were brought to southern Germany as Swabian children in spring
and autumn, where they were employed by farmers. Their labor was offered
at "children's markets" in Upper Swabia and the Swabian Alb. Often the
woman had to take care of the farming alone, which served to provide for
herself. At the beginning of the 19th century, Liechtenstein was
considered a poorhouse. In 1848, unrest also broke out in Liechtenstein
during the German Revolution. As part of these events, Liechtenstein
sent representatives to the Frankfurt National Assembly, including
Ludwig Grass and Karl Schädler, later president of Liechtenstein's first
state parliament.
A customs treaty with Austria-Hungary in 1852 improved the economy,
with the textile industry being the main focus. In 1858, Johann II
became Prince of Liechtenstein. He ruled the principality for 71 years
until his death in 1929. In 1861, Liechtenstein received its first bank.
In 1862, a new constitution came into force, which provided for the
Landtag to represent the people. The prince continued to rule the
country, but the Landtag could no longer be bypassed in legislation. The
first newspaper was also published in the same year. After
Liechtenstein's vote in the Federal Assembly of the German Confederation
was cast in favor of mobilizing the federal army against Prussia, Prince
Johann II placed the Liechtenstein troops of around 80 men under
Austrian command on June 28, 1866. The government in Vaduz, however,
only wanted the Liechtenstein contingent to be used by federal decree
and sent the head of government, Karl Haus von Hausen, to Frankfurt to
clarify the issue. On July 1st, Austria ordered the Liechtenstein troops
to depart on July 7th, which sparked a heated debate in the state
parliament and a protest by the deputies against the departure. After
discussions between the state parliament and the prince, during which
Johann II finally agreed on July 25th that the Liechtenstein soldiers
would not be "forced to actually take part in an unspeakable civil war"
but would secure the Emperor of Austria's border against Italy, the
contingent marched off on July 26th. However, the battles with Italian
troops near Bormio expected for August 11th did not take place. After
six weeks of deployment, the soldiers returned home without fighting.
After the dissolution of the German Confederation in 1866, the
military, which had been a major financial burden until then, was
abolished in 1868. Tourism began at the end of the 19th century. The
textile industry mainly provided jobs for women, but hardly for men. As
a result, many emigrated to America. In 1870, the ferry connection
between Balzers and Wartau was replaced by a wooden bridge. On October
24, 1872, Liechtenstein was finally connected to the railway network,
after a treaty was signed on August 27, 1870 between Switzerland,
Austria-Hungary, Bavaria and Liechtenstein to build a railway line
between Feldkirch and Buchs. In 1864, the Samina Valley was opened up to
traffic by a road, and in 1867, the first tunnel was built at an
altitude of 1,430 meters as a summit tunnel. This made Steg, the Samina
Valley and Malbun accessible to tourists.
Liechtenstein remained neutral during the First World War, but was hit hard by the economic sanctions against Austria. Textile factories were shut down and the population suffered from hunger. Savings became worthless due to inflation. The call for a democratic constitution grew ever stronger, most recently thanks to the Christian Social People's Party and the Progressive Citizens' Party founded in 1918. The constitution with direct democratic elements such as popular initiatives and referendums came into force in 1921 after negotiations between the Prince and the Diet.
After the collapse of the Austrian monarchy, the customs agreement
was terminated in 1919. In 1923, Liechtenstein concluded a customs
agreement with Switzerland. The Liechtenstein emergency currency
introduced in 1919 was replaced in 1924 in favor of the Swiss franc. The
Swiss border guard corps took over the tasks of the Liechtenstein border
guard, securing the borders. In the following decades, further
agreements were concluded with Switzerland and its cantons. As a result,
there is now a close partnership between Liechtenstein and Switzerland.
Since 1923, the border between Switzerland and Liechtenstein can be
crossed freely (except during the Second World War).
In 1929,
Prince Franz I of Liechtenstein came to power after the death of his
predecessor. After his death in 1938, Prince Franz Josef II of
Liechtenstein, a godchild of Emperor Franz Josef I, took over the
sceptre. Born in Styria, the prince ruled the country for 51 years until
his death in 1989. He was the first prince of the Liechtenstein family
to no longer live in Vienna, but in Vaduz Castle in Liechtenstein. Until
1938, the princes lived in Vienna and Moravia. They held important
positions in the military and diplomatic affairs under the Habsburg
monarchy and managed their extensive properties in Lower Austria,
Bohemia, Silesia and Moravia. On May 29, 1939, Franz Josef II was
venerated by the people. As part of this veneration, the new head of
state vowed to govern the country according to the laws and the
constitution. Franz Josef II also announced that he would permanently
move his residence to Vaduz. Over 10,000 Liechtensteiners took part in
the celebrations in Vaduz.
Additional Swiss border guards were
deployed on the border with Austria after Liechtenstein requested them
on March 11, 1938, when Austria was annexed, while Switzerland deployed
several border guard companies to protect the Rhine border. From 1939 to
1948, the border was guarded and controlled by Swiss army units. It was
no longer possible to cross it freely. Liechtensteiners and Swiss
required a valid ID, foreigners a valid visa. In the event of an attack
on Liechtenstein, the Swiss border guard corps, which secured the border
between Liechtenstein and Austria, would have withdrawn behind the
Liechtenstein-Swiss border. They had no mandate from Bern to defend
Liechtenstein.
The relationship between Switzerland and
Liechtenstein was not without tension. As early as 1934, Switzerland
showed interest in purchasing the Ellhorn, which belongs to the
municipality of Balzers. The Swiss army described the Ellhorn as its
biggest problem. It planned to fortify the Ellhorn with bunkers as part
of the Sarganser Fortification Belt and to equip it with anti-tank
weapons. In 1938, an exchange of territory failed due to an unofficial
veto by Germany. On behalf of Foreign Minister Joachim von Ribbentrop,
the German Foreign Office informed the Swiss Political Department in
April that "Germany would regard the inclusion of Liechtenstein in Swiss
national defense as a measure directed against the Reich and would not
agree to the neutralization of the principality." The Swiss government
rejected an offer to lease the area to Switzerland. Leasing would be
contrary to Switzerland's neutrality. After the Second World War,
Switzerland made a new attempt to gain control of the strategically
important area. In doing so, it threatened to unilaterally terminate the
customs agreement. Although the people of Balzers had rejected an
exchange of territory in a non-binding vote on November 21, 1948 by 304
votes to 4, the Liechtenstein Parliament approved an agreement with
Switzerland on the Ellhorn by 10 votes to 5. On August 15, 1949, the
municipality of Balzers was awarded 450,000 square meters of land from
the municipality of Fläsch in the area of the Mälsner Allmein and in
the Fläscher Riet as part of the land exchange. In addition, Switzerland
forgave Liechtenstein debts amounting to 1,800,000 francs and paid the
municipality of Balzers an additional compensation of 412,000 francs. In
return, Switzerland received the Ellhorn, which was immediately
fortified with an infantry bunker (A 6229)♁⊙ and a combat cavern (A
6224)♁⊙. From 1940 to 1985, the Swiss Army maintained the Tschingel
artillery works east of the Ellhorn, which tactically belonged to the
Magletsch fortress near Sargans.
The Swiss Army's training
operations at the St. Luzisteig Fortress military training area also
caused problems. The nearby Liechtenstein municipality of Balzers
repeatedly complained about the noise pollution. Large forest fires
occurred again and again, particularly in the forests of the
municipality of Balzers on Swiss territory. Balzers has large forest
areas west of the training area on the territory of the Graubünden
municipality of Fläsch. During forest fires in 1960 and 1985, large
parts of Balzers' forest property went up in flames as a result of
shooting exercises because those responsible had misjudged the wind. On
December 5, 1985, 1,000 firefighters had to fight the forest fires that
had been fanned by the foehn. The fire reached within 30 meters of the
village of Balzers. 100 hectares of spruce and pine forest were
destroyed. The forest was completely reforested at the expense of the
Swiss Army. However, Balzers was never able to push through its demand
for a complete shooting ban on the military training ground.
On
March 2, 2007, a noteworthy incident occurred. 170 heavily armed Swiss
soldiers (other sources report 400 soldiers) marched several kilometers
into Liechtenstein territory. The Swiss simply got lost in the darkness.
A more serious incident occurred in the autumn of 1968. At that time,
artillery units from the Sarganser Fortress Belt fired five practice
grenades into Liechtenstein territory due to a technical malfunction.
The grenades exploded in the Malbun district of the Liechtenstein
municipality of Triesenberg. On the other hand, the Swiss Army is
helping the Liechtenstein authorities. A large-scale exercise by the
Swiss Army took place in Liechtenstein in June 2013. In the "Kombi 13"
exercise, a once-in-a-century flood was simulated in the municipality of
Ruggell. Over 1,000 soldiers from Territorial Region 4 took part in the
exercise. Legally, the "Kombi 13" exercise was based on the agreement on
mutual assistance in the event of disasters or serious accidents that
Liechtenstein had concluded with Switzerland. A similar exercise took
place in 2018.
After the integration of Liechtenstein into the
Swiss national defense failed in 1938 due to a German veto, Switzerland
tried to get ahead of Liechtenstein in other areas. Apart from "ethnic
German-oriented circles", most Liechtensteiners wanted to be closer to
Switzerland. The previous connection was rather one-sided. Swiss
companies, tradespeople and haulage contractors could do business in
Liechtenstein without any problems. But the same did not apply to
Liechtenstein companies. Liechtenstein employees also had little access
to the Swiss labor market. And this access was tightened again at the
beginning of 1938. Many considered Switzerland's restrictions to be one
of the reasons why "ethnic German-oriented circles" were gaining
popularity among Liechtensteiners. On May 9, 1938, the Federal Political
Department announced that the cantons of St. Gallen, Thurgau, Zurich and
Graubünden would give preference to Liechtenstein unemployed people. On
June 28, Switzerland agreed to grant Liechtensteiners living in
Switzerland the same social rights as Swiss employees. In 1939,
Liechtenstein was able to take part in the Swiss National Exhibition for
the first time. July 16, 1939 was declared "Liechtenstein Day."
After the signing of the Swiss-Liechtenstein Postal Treaty, the Swiss
PTT was responsible for issuing radio station licenses. The PTT did not
want private, advertising-financed radio stations. However, the
Liechtenstein government wanted to issue a license for such a station. A
powerful medium wave station would bring the government between 200,000
and 300,000 francs in annual income. After years of fruitless
negotiations, Bern agreed to authorize a Liechtenstein broadcaster after
the annexation of Austria on March 16, 1938. The license was awarded to
an English company, the "Roditi International Cooperation", which
belonged to the British Jew William Kenmore. The station, called "Radio
Liechtenstein", went on air in September 1938 and broadcast until
September 1939. After the outbreak of war, the broadcasts were stopped
due to pressure from Germany. Germany had threatened to bomb the
Jewish-owned station. It was called a "British-Jewish enemy station",
although the broadcasting management made every effort not to provoke
the Germans.
After the Austrian annexation, the Liechtenstein
savings bank got into trouble. Investors withdrew their money and
invested it in Swiss banks instead. On December 12, the Federal Council
granted a loan of 2 million francs to save the Liechtenstein bank. The
Swiss were hesitant to implement further rapprochements and
equalization. The Liechtenstein border was only 2.5 kilometers from
Sargans train station. The Swiss needed leverage to get the Ellhorn.
Liechtenstein's naturalization policy also caused tensions with
Switzerland. Liechtenstein granted citizenship to wealthy foreigners in
return for paying high fees. Although a three-year residency requirement
was made in 1934, exceptions were permitted, and these exceptions became
the rule. Switzerland criticized this and called the process "fraud."
Until 1939, the citizens' assembly of the municipality where the
application was submitted decided on naturalization. After that, the
application had to be submitted to the state parliament and the
government for "preliminary examination." A large proportion of those
naturalized were German and Austrian Jews. In the whole of 1939, 48
people were naturalized. The costs were enormous. At the beginning of
1939, an applicant paid 132,500 francs in fees for himself and his three
children and had to deposit a deposit of 30,000 francs at the savings
bank. On July 5, 1939, the government justified the naturalization
practice in writing to the Federal Political Department. Municipalities
and the government simply needed the income from the fees. After all,
40% of the state government's income was generated through such taxes. A
compromise was agreed. Newly naturalized Jews could be refused entry to
Switzerland, and they were also not entitled to representation by the
Swiss embassies. The naturalized citizens were thus "second-class
citizens."
The visit of Prince Franz Josef II to Berlin on March
2, 1939 also caused tensions with the Swiss Confederation. The visit was
carried out by the Princely House and the Government without the
official participation of the Swiss Embassy in Berlin. According to
treaties, Switzerland represented Liechtenstein abroad. Franz Josef II
wanted to pay an official visit to Berlin as early as April 1938. But
the German side showed little interest in a meeting between the Führer
Adolf Hitler and the Crown Prince. It was only when Franz Josef II had
officially become Prince of Liechtenstein that the German government
could no longer refuse a visit from a head of state. On Wednesday, March
1, 1939, the Prince, the Prime Minister Hoop and his deputy Vogt boarded
a German saloon car in Feldkirch with a few secretaries. They drove to
Berlin via Munich and Prague. At 12.30 p.m. there was an official
reception in the New Reich Chancellery. Little is known about the
meeting. No official documents exist. Hitler did not seem to have shown
much interest in Liechtenstein. Important topics such as the Ellhorn
question, the rapprochement between Liechtenstein and Switzerland and
the Princely House's land holdings in Austria and the Czech Republic
were apparently not discussed. The ethnic German movement in
Liechtenstein and the demand for Liechtenstein to be annexed to the
German Reich were apparently not addressed either. Hitler apparently
only spoke about the "Jewish question". The Liechtenstein delegation
left on March 4, 1939 without any concrete results. Shortly after the
visit, the participating cabinet secretary Rupert Ritter suggested the
creation of a separate Liechtenstein embassy in Berlin. The idea was
quickly rejected, however. Switzerland heard nothing about this idea.
The next state elections were planned for 1940. In 1938, the two
large Liechtenstein parties, the Progressive Citizens' Party in
Liechtenstein FBP and the Fatherland Union VU, agreed to a party peace.
The politicians of both parties wanted to prevent the National Socialist
Volksdeutsche Movement in Liechtenstein (VDBL) from gaining strength.
They decided to run with a joint list in the next election. The FBP had
8 seats on the list, the VU 7. The list enabled a silent election. If a
list received more than 80% of the votes in the last election, then a
silent election could be held, even if other parties submitted
additional lists for the election, as stipulated by the electoral law at
the time. At the request of the two parties, the Prince dissolved
parliament on March 11, 1939 and ordered new elections. The FBP and the
VU submitted their joint list on March 17, 1939. A referendum against
the silent election was possible within two weeks. 400 signatures were
required for this. However, it was impossible for the VDBL to submit its
own list or to provide the signatures within such a short time. Although
there were around 1,400 ethnic Germans living in the principality and
around 700 sympathized with the VDBL, not all of them had citizenship or
wanted to indicate with their signature that they sympathized with the
National Socialists. The VU was the big winner of this silent election.
After the last election, the pro-German party had 4 state parliament
representatives, and after the silent election, 7. On April 6, the
prince declared the new state parliament elected without an election
having taken place. The silent election was one of the reasons for the
VDBL's attempted coup during this period.
On March 24, 1939, the
VDBL attempted to stage a coup, but it failed. In literature it is
referred to as the "Anschluss putsch" because the putschists demanded
"the separation of our country from the Swiss economic body, which has
become impossible, and the annexation to the German Reich economic area"
and "the complete liberation of our country from the Jews". The leaders
of the attempted coup were the Schaan engineer Theodor Schädler,
operations manager of the Lawena power plants, and Hubert Hoch, the
power plants' accountant. The coup was planned together with the
National Socialists in Feldkirch. A 200-300-strong group of the VDBL was
to create a "riot" in Vaduz with a large demonstration. The aim was to
provoke clashes with Nazi opponents. The members of the VDBL, who would
certainly be in trouble, would then send a "cry for help" to the SA and
the NSKK in Feldkirch, who would then march into the neighboring
country. The SA would detain the government in Vaduz, i.e. arrest them.
The result would have been total annexation to the Greater German Reich.
This was clear to the putschists. It cannot be said with certainty to
what extent higher SA, SS and Gestapo authorities in Austria were
involved in this plan. Franz Hofer, the Gauleiter of Vorarlberg-Tirol,
and the middle leadership of the Gestapo in Vorarlberg may have been
informed of these plans. It can be ruled out with certainty that Adolf
Hitler or the leadership in Berlin knew about this plan.
The coup
was originally planned for Wednesday, March 22, 1939. In Feldkirch, 600
armed SA and NSKK men were ready to march into Liechtenstein. But the
VDBL hesitated to implement the plan. The VDBL activists met in Nendeln,
Schaan and Triesen to discuss the plan and agree on details. The new
date was set for late Friday evening. The date seemed convenient, as the
prince was in hospital in Zurich with a stomach ailment and the head of
the government, Josef Hoop, was on holiday in Lugano in Ticino. The
postponement of the date and the meetings meant that the "element of
surprise" was lost. The arrival of the SA and NSKK in Feldkirch had not
gone unnoticed. Employees of the German Reichsbahn reported the planned
"surprise attack" to Swiss authorities in St. Margrethen. The deputy
head of government, Alois Vogt, who had just returned from another visit
to Germany and Basel, was also informed. On Friday morning, high-ranking
government representatives met in the government building in Vaduz. They
called on Vogt to travel to Feldkirch immediately to meet with the
district captain, Ignaz Tschofen. Tschofen initially pretended not to be
informed. He said he knew nothing about plans to invade Liechtenstein.
Vogt threatened Tschofen with personal consequences. He said he had
received a personal promise from the Führer that Liechtenstein would
remain independent. The Führer had given him his word. Tschofen then
admitted that he knew about plans, but that they were not official. They
were "private arbitrary actions". Vogt extracted a promise from Tschofen
to do everything he could to prevent the NSKK and SA plan. On Friday
evening, the VDBL activists met in further meetings to carry out the
coup. Vogt summoned the leader of the coup, Theodor Schädler, to the
government building and explained to him that the Vorarlbergers would no
longer support the plan. The VDBL would stand alone and he, Vogt, would
not hesitate to order the police and the Swiss border guards to shoot at
the demonstrators. Meanwhile, counter-demonstrators besieged the VDBL
meeting in Schaan. Counter-demonstrators and police prevented the VDBL
demonstrators from leaving. In Triesen and Nendeln, the demonstrators
had marched towards Vaduz, accompanied by angry counter-demonstrators.
In particular, the Liechtenstein government councillor Anton Frommelt of
the FBP tried to persuade the demonstrators to turn back. At 10 p.m.,
parts of the NSKK, HJ and SA units on alert in Feldkirch had also set
off towards the border. At the border, however, they were met by NSDAP
officials who prevented them from crossing the border. Bern had
intervened with the Foreign Office in Berlin. At 10:30 p.m., the VDBL
leaders learned that no support would come from Feldkirch. By midnight,
it was clear that the coup would fail. The VDBL demonstrators dispersed
to pubs. At 4:00 a.m., 18 VDBL leaders were arrested. Berlin had also
made up its mind. The Führer had given a "stop order." Why the Führer
prevented the annexation of Liechtenstein has not been conclusively
clarified. Hitler was certainly already planning war against Poland. It
was about "living space in the east." Liechtenstein and Switzerland were
not important to him. The annexation would only have jeopardized his
great plans if the international community had intervened against the
annexation. The supporters of the VDBL, on the other hand, had fully
expected support from Germany. They were disappointed and after the
coup, they no longer played a major role in Liechtenstein's history.
The VDBL not only aimed at the annexation of Liechtenstein to Nazi
Germany, but was also accused of carrying out bomb attacks against Jews.
On October 31, 1938, a bomb exploded in Eschen in front of the Kreuz
inn. The Jew Josef Strauss lived there. On November 18, 1938, a bomb
exploded in front of the "Rheinische Kleiderfabrik" in Eschen. The owner
was the Jew Richard Graetz. 18 windows were broken. In the night of
November 25-26, a bomb exploded in Schaan. It was aimed at a house in
which two Jewish families lived. On November 28, there was another bomb
explosion in Schaan. The attack was aimed at the "Dux" inn, where Jewish
guests were staying. The following day, a bomb rocked the house of the
Fiori and Goldstaub families. On November 30th, another bomb exploded in
front of the "Rheinische Kleiderfabrik" and another in front of the
Schiftan family's house. The Liechtenstein police set up roadblocks and
searched the homes of the "Volksdeutsche Jugend". After one arrest and
the house searches, no further attacks were carried out. Most of the
bombs were small and caused little material damage. Fortunately, no one
was injured. The government interpreted the attacks as a protest against
the Jewish refugees in the country.
Due to the events at the end
of 1938, 21 men met on January 24th, 1939 in the Schaan restaurant
"Traube" and founded the "Heimattreue Vereinigung Liechtenstein" under
the leadership of Christoph Frommelt. This cross-party association was
intended to unite all groups loyal to Liechtenstein. It quickly
developed great activities and found great popularity among the
population. After the failed coup, they started a signature campaign "to
show the outside world that Liechtenstein's people are willing to
preserve their independence." By signing, they supported an independent
Liechtenstein under the leadership of the Princely House while
maintaining the economic agreements with Switzerland. Participation of
ethnic Germans in power was categorically ruled out. The signature
campaign ended on April 2. 95.4 percent of those eligible to vote had
signed the declaration, or 2492 of 2610 eligible voters. Women also
collected signatures and submitted them to the Prince.
After
Adolf Hitler seized power in Germany in 1933, National Socialist cells
or parties that openly sympathized with the National Socialists were
formed in Liechtenstein. The aforementioned Volksdeutsche Bewegung in
Liechtenstein VDBL was founded in that year, as was the Liechtensteiner
Heimatdienst, which was to become the Vaterländische Union VU in 1936.
There are many reasons for this development. Firstly, the severe
economic crisis that had left many Liechtensteiners unemployed. But
Switzerland's behavior also played a significant role. Many
Liechtensteiners felt disadvantaged by the customs treaty, especially in
the lowlands, which had maintained close economic relations with
neighboring Feldkirch and Austria. The border was now guarded and
controlled by paramilitary Swiss border guard corps. Police units from
St. Gallen and Graubünden patrolled the principality. Swiss
entrepreneurs had the right to offer goods and services in the
principality, while the Swiss canton of St. Gallen in particular refused
to grant these rights to Liechtenstein companies and individuals. A
revision of the Swiss Alien Police Act, which was intended to give
Liechtensteiners unrestricted access to the Swiss labor market, was not
carried out until 1941. Switzerland used the revision of this law as a
means of exerting pressure on the Ellhorn issue. The people of Balzers
in particular were unwilling to give up the Ellhorn. Some
Liechtensteiners also saw no point in the small state of Liechtenstein.
The country was poor, one of the poorest in Europe. In short, the
customs agreement with Switzerland had not led to the hoped-for
prosperity. History also played a role. Since the Swabian War, the Rhine
had formed the border between Switzerland and Austria. The population
saw itself as "German." This was particularly expressed in the
Liechtenstein national anthem, which until 1963 was as follows: "Up on
the German Rhine / Liechtenstein leans / On the Alpine heights. / This
dear homeland / In the German fatherland / God's wise hand / Has seen
for us." For centuries, the Swiss Confederation had been viewed as an
enemy rather than a friend. Foreigners also played a role. Immigrants
built a settlement in Vaduz with magnificent villas above the town.
Anyone with money could buy Liechtenstein citizenship. Liechtenstein
trustees and lawyers made this possible. One case in particular stirred
the emotions of Liechtensteiners in 1933. The case of Alfred Rotter and
his brother Fritz, two Jewish immigrants from Berlin. And then there
were the German immigrants. Of the 1,400 ethnic Germans in the
principality, half sympathized with the Nazis.
After the
construction of an oil pipeline in the Upper Rhine Valley in the 1960s,
the St. Gallen cantonal government had big plans to develop the Rhine
Valley. A large thermal power plant was planned in Rüthi by NOK
Nordostschweizerische Kraftwerke AG, today's Axpo. But the project met
with widespread rejection from residents on both sides of the Rhine. In
1972, another attempt was made. This time it was to be a nuclear power
plant that would supply the growing industry with electricity. But
widespread resistance also formed against the nuclear power plant,
initially on the Vorarlberg side. The "Healthy Living Space Vorarlberg"
action committee was founded there. On February 8, 1973, a society
against the construction of the nuclear power plant was also founded in
Liechtenstein, the "Liechtenstein Society for Environmental Protection",
or LGU for short. In 1974, 15,000 signatures were collected against the
construction of the nuclear power plant. The LGU was also involved in
protests against the planned oil refinery in Sennwald, another major
project of the St. Gallen government. On the Swiss side, there was
initially little resistance to the plans to build the nuclear power
plant. It was not until autumn 1974 that the cantonal initiative against
the irresponsible construction of nuclear power plants was founded. In
November 1974, the Swiss Federal Councilor Willi Ritschard announced
that the Federal Council would approve the construction of the nuclear
power plant. Protests came primarily from Austria and Liechtenstein.
Austria decided to phase out nuclear power on November 5, 1978. In
Switzerland, another alliance, "No to Nuclear Power Plants," was founded
in Altstätten in June 1975, which organized militant protests against
the nuclear power plant. The ongoing protests by residents bore fruit.
The plans for both construction projects were postponed indefinitely.
With the "energy transition" law passed by the Swiss Bundestag in 2011,
the "Rüthi nuclear power plant" issue should be settled.
On
September 25, 1927, the Rhine flooded. Driftwood became wedged in the
Schaan-Buchs railway bridge of the Austrian Federal Railways. The Rhine
then backed up and broke through the dam on the right bank of the Rhine.
Large parts of the lowlands were flooded. Ruggell and parts of Gamprin
and Benders had to be evacuated. Houses, roads and bridges were
destroyed. The land was covered by a layer of gravel. The harvest was
lost.
It was not until December 24, 1927 that the hole in the
dyke could be patched. From 1927 to 1933, 3½ million Swiss francs had to
be invested in flood protection. This was only possible thanks to a loan
from Switzerland. Foreign countries also helped in other ways,
especially Switzerland. From April to October 1928, groups from the
Service Civil International under the leadership of the Swiss Pierre
Cérésole supported the cleanup and repair work. Swiss scouts were also
active. 710 members of the relief service, including 78 women, worked
for at least three weeks for the good cause. Half of those willing to
help came from Switzerland and 18 other countries and worked mainly in
Schaan. The Swiss scouts took turns every two weeks and came from the
various cantons. The scouts mostly worked in Ruggell and a group was
around 100 strong. The Rhine dams were raised over a length of 26.55
kilometers. The torn-away Rhine bridge near Schaan was rebuilt, and
those at Balzers, Vaduz and Bendern were repaired. All Rhine bridges
were raised. Ruggell got its own Rhine bridge in 1929. The Swiss SBB
donated the materials. Prince Johann donated half of the construction
costs. The Rhine disaster developed into a major job creation measure.
And finally the construction of an inland canal was decided upon.
Switzerland was already much further ahead in this respect. They had
already built the Werdenberg inland canal between Trübbach and Rüthi on
their left bank of the Rhine between 1882 and 1886. The Liechtenstein
inland canal was dug between 1931 and 1943.
Liechtenstein remained neutral during the Second World War. The
border with Austria was secured over a length of 14 kilometers by a 2½
meter high fence and Spanish riders. After 1942, only a few people
fleeing National Socialism managed to cross the border from Austria to
Liechtenstein. The Swiss border guard and Liechtenstein auxiliary police
secured the border. Swiss army members were not deployed at the border,
although the Liechtenstein government had asked the Swiss government to
do so. The Swiss government refused due to Switzerland's neutrality.
In 1945, parts of the 1st Russian National Army of the German
Wehrmacht, not to be confused with the Vlasov Army, crossed over into
Liechtenstein territory and were not handed over to the Soviet Union
despite massive pressure from the Soviet Union.
During the Second
World War, new industrial companies were established in Liechtenstein.
The post-war period was also characterized by a sustained economic boom.
Liechtenstein quickly transformed from a poor agricultural state into a
service country. The most important reasons for the upswing were the
customs agreement with Switzerland concluded on March 29, 1923, the
adoption of the Swiss franc and a liberal economic system combined with
low taxation.
From January 1, 1972, a law stipulated that the
number of foreigners living in the principality could not exceed one
third of the country's total population.
In a referendum on
February 9 and 11, 1972, the majority voted against women's suffrage.
After the German-German Basic Treaty came into force, diplomatic
relations with the German Democratic Republic were established on June
28, 1973, with Switzerland assuming responsibility for them.
Liechtenstein became a member of important international organizations,
including:
1978 – Joined the Council of Europe
1990 – Joined the
United Nations as the 160th member
1991 – Joined the EFTA
1995 –
Joined the European Economic Area (EEA)
1995 – Joined the World Trade
Organization (WTO)
On July 1, 1984, the right to vote and stand
for election for women was introduced at the national level on the third
attempt. In the referendum on this, 2,370 men voted in favor and 2,251
against. Liechtenstein thus had just as much difficulty with women's
suffrage as Switzerland. The principality was the last European state to
introduce women's suffrage and stand for election. As early as 1976,
municipalities had been given the right to introduce women's suffrage
and stand for election at the municipal level. In the meantime, the gap
between women's candidacies and their actual electoral success has been
closing more and more. Women's chances of being elected have increased.
After the death of his father Franz Joseph II, HSG graduate Prince
Hans Adam II of Liechtenstein ascended the throne in Vaduz in 1989. On
August 16, 2004, he handed over the office to his son Alois of
Liechtenstein.
In a 2003 referendum, Liechtenstein citizens voted 64.3% in favor of
a revision of the constitution. Prince Hans Adam had declared that if
the vote was rejected, he would leave the country and move to Vienna.
The new constitution gives the prince more power than in other European
monarchies, but the people have new rights, such as the right to depose
the prince.
The new constitution has been criticized both
nationally and internationally (e.g. by the Council of Europe), as those
who lost the referendum believe that democracy is being restricted
thanks to a powerful right of veto for the prince. For this reason, the
Council of Europe is conducting a dialogue with Liechtenstein about the
new constitution at the request of the same groups.
On August 15,
2004, Prince Hans Adam II appointed his son, Hereditary Prince Alois of
Liechtenstein, as his deputy and entrusted him with the exercise of the
sovereign rights to which the prince is entitled. The title of prince
itself, however, only passes to the son after the death of the father.
In 2012, the citizens of Liechtenstein voted on a popular initiative
that would have restricted the right of veto of the prince or his
representative. The change in the law stipulated that they could no
longer veto a decision made by the people through a popular initiative.
The prince would only have been able to veto parliamentary decisions.
The initiative was rejected by 76.1% of the votes. The Swiss newspaper
Blick reported on July 1, 2012: "For Liechtensteiners, an untroubled
relationship with the princely family is more important than a bit more
democracy." Hereditary Prince Alois had already emphasized in his speech
from the throne to parliament in early March 2012 that the princely
house would withdraw from political life if the people accepted the
initiative.
Liechtenstein's main economic sector is now in the tertiary sector: banks, trustees and other financial services. This sector, as some international observers criticize, is promoted by very liberal laws that practically "invite" the grey and black market. Since there are more jobs than can be filled by locals, Liechtenstein has many cross-border commuters from neighboring countries. According to a study by Swissinfo on December 31, 2016, one in two of the 37,453 people employed in Liechtenstein were cross-border commuters. Of these, 55% lived in neighboring Switzerland. This high number of cross-border commuters is due to the very restrictive issuing of residence permits by the Liechtenstein authorities. For example, only five residence permits are issued to Swiss citizens per year.
The history of Liechtenstein's coins began with the Emperor's
elevation of Karl von Liechtenstein to the rank of Count Palatine. This
elevation also included the right to mint coins. Coin minting,
especially groschen, only began in 1614 and ended in 1620. Ducats and
their multiples were only minted in small numbers and were probably
intended mainly for gift and representation purposes. Kreuzers made of
billon were minted with the year 1629, which were also used for daily
circulation. From 1728, under Prince Josef Johann Adam, thalers and
half-thalers (only a few hundred copies each) and ducats were minted in
small numbers. The year 1729 can also be found on Liechtenstein coins.
1½ florins corresponded to one thaler. Then there seems to have been a
longer break in minting, because it was not until 1758 with ½ thaler, 1
thaler and 1 ducat and in 1778 with ½ thaler, 1 thaler and 1 ducat that
coins were minted again in small numbers (again only a few hundred). The
ducats were minted in 986 gold, all other coins in 583 silver. All coins
show the bust of the respective prince facing right on the obverse and
his coat of arms on the reverse. There are numerous imitations of the
ducats. After another break in minting, ducats (125 pieces), thalers
(1500 pieces), half thalers (1250 pieces) and, for the first time, 20
kreuzer coins (2000 pieces) were minted again in 1778.
It was not
until 1862, under Prince Johann II, that another type of coin was
minted, a Vereinstaler, which was designed in the same way as the
previous coins and complied with the provisions of the Vienna Coin
Treaty of 1857, to which Liechtenstein was a party until 1867, when it
had to leave together with Austria under pressure from Prussia. The
Vereinstaler was withdrawn from circulation in 1893 at a value of 3.53
crowns.
On August 26, 1898, a currency reform was carried out. 1
florin was now worth one Liechtenstein crown, and 100 hellers were equal
to one crown. Under Johann II, silver coins worth 1 crown, 2 crowns and
5 crowns were issued in silver. The 10 crown and 20 crown coins were
minted in gold. However, in contrast to the earlier mintings, the
obverse of all coins showed the prince's bust facing left. These coins
were taken out of circulation on August 28, 1920 and replaced by
Liechtenstein emergency money.
Another currency change was
carried out on May 26, 1924. While the crown currency had been based on
the Austrian monetary system, Liechtenstein money was now adapted to the
Swiss monetary system. The new currency was now 100 Rappen in 1 franc,
as in Switzerland. This currency is still valid today. Johann II had
coins minted in silver worth ½ franc, 1 franc, 2 francs and 5 francs.
When Franz I came to power, he did not have any more coins of this value
minted, as there were already enough silver coins in circulation from
his predecessor. During his reign, gold coins worth 10 francs and 20
francs were minted in 1930. They again show the bust of the prince
facing right on the obverse.
From this point on, Liechtenstein
francs were only minted for collection purposes, as the Swiss franc
became the main currency in Liechtenstein. In 1946, Prince Franz Josef
II had two types of coins minted, each worth 10 francs and 20 francs,
and ten years later gold coins worth 25 francs, 50 francs and 100
francs. The front of these coins shows a Liechtenstein prince with his
wife for the first time. For the 100th anniversary of the Liechtenstein
Landesbank, two gold coins worth 25 francs and 50 francs were minted,
and for the 50th anniversary of Franz Josef's accession to power in
1988, a silver coin worth 10 francs and a gold coin worth 50 francs were
minted. In 1990, Hans Adam II had a coin worth 10 francs in silver and
50 francs in gold minted to mark the hereditary homage. For the 200th
anniversary of the sovereignty of the Principality in 2006, two types of
coins of the same value were issued.
Liechtenstein is a small state located on the right bank of the Rhine
in the Alps, surrounded by the Swiss cantons of St. Gallen in the west
(on the opposite side of the Rhine) and Graubünden in the south and the
Austrian state of Vorarlberg in the east and north. Its national border
with Switzerland in the west corresponds to the course of the Rhine,
while the southern and eastern national borders are characterized by the
high Alpine mountains, the Rätikon. The border with Austria runs largely
on the mountain ridge. Along with Uzbekistan, Liechtenstein is the
second of the two landlocked states that are surrounded exclusively by
landlocked states.
The country covers an area of 160,477 square
kilometers, making it the fourth smallest country in Europe and the
sixth smallest in the world. It measures 24.77 kilometers at its longest
point and 12.35 kilometers at its widest.
Liechtenstein borders
Switzerland for 41.2 kilometers, of which 27.2 kilometers are on the
canton of St. Gallen and 14 kilometers on the canton of Graubünden. The
length of the state border with the Republic of Austria (federal state
of Vorarlberg) is 36.7 kilometers. The largest town in terms of
inhabitants is Schaan.
On Alp Bargälla, east of Gaflei, is
approximately 120 m southwest of the Samina Valley alpine hut at 1721 m
above sea level the geographical center of Liechtenstein.
Liechtenstein is divided into two landscapes, the main settlement
area being the Rhine Valley in the west and the Sami Valley with
secondary valleys in the east. The latter changes borders as it
progresses and flows into the lower Walgau of Vorarlberg at Frastanz.
This part of the country is separated from the Rhine Valley by a 1,000
to over 2,000 meter high mountain ridge, is hardly populated and makes
up around a third of the country's area.
The country is further
divided into two regions, the lower country and the upper country. The
Lower Country includes the communities north of Schaan and Planken
(roughly on the line of the Three Sisters), while the Upper Country
includes the southern part of the principality. In terms of natural
space, these two regions differ in that the upper country is more
strongly influenced by the Alpine mountains, while the lower country -
with the exception of the Eschnerberg - extends predominantly to the
Rhine valley.
Of the country's area, 11 percent is settlement
area, 33 percent is agricultural land, 41 percent is forest area and 15
percent is unproductive area.
Liechtenstein lies at the western end of the Rätikon and therefore at
the geological western end of the Eastern Alps. The country occupies a
central position in the east-west Alpine border area.
The
geological structure of Liechtenstein is formed in three regionally
different marine areas, which were formed at different times and in
different facies. The depositional environments form the three-part
geological structure of the principality in storey-like ceilings: below
are the Western Alpine and Helvetic Limestone Alps. The rocks come from
the Jurassic and Cretaceous. The sedimentation occurred in a shallow sea
that gradually became deeper. In addition to lime, sandstone and marl
were also formed.
In the middle, east of the Rhine, on which
Liechtenstein borders in the west, is a thick layered package with
various flysch rocks. They are attributed to the Penninic period. The
formation of the marine deposits is dated to the Upper Cretaceous and
the Early Tertiary. Their composition consists of alternating layers of
claystone, sandstone, marl and sand-limestone. The southern flysch zone
was pushed over by a mass of sediment.
The uppermost geological
level of the Eastern Alps is formed by the Lechtal ceiling, which is
divided into clods in Liechtenstein.
Geomorphologically, Liechtenstein consists of two parts: on one side
there is the plain along the Rhine in the west, while on the other side
there are high mountains in the east. A geological peculiarity is that
the western end of the Rätikon forms the geological end of the Eastern
Alps as part of a microplate that was torn away from Africa. The rocks
of the Liechtenstein mountain and hill landscape consist almost entirely
of marine sediments. The sediments consist of three different layers
that come from different bodies of water: At the top there is the
Lechtal cover, formed from several clods, which lies above a large layer
of flysch rock. Beneath the flysch rock layer are the Western Alpine
Limestone Alps. They were formed through lithogenesis in the Mesozoic
and Tertiary periods in the “primeval Mediterranean” Tethys. Through
tectonic movements that came from the south and east, the African plates
pushed over and under each other with the European nappes of the
Helveticum and the Flysch. Tectogenesis resulted in stretching
processes, folding, metamorphosis, scaling and fracture formation.
Short streams formed on steep valley slopes. This led to the
creation of torn valleys, ditches, gullies and ravines. Due to the
easily weatherable rock of the Flysch and the main dolomite located
there, cones and piles of rubble have formed. At the end of the Würm Ice
Age, in which glaciers up to 1700 m high could be found in what is now
Liechtenstein, ice streams from the Rhine glacier were deposited,
carrying moraine material with them that was transported from the south.
Around 14,500 BC By 400 BC the Rhine glacier had finally withdrawn from
Liechtenstein territory. Drumlins up to 1600 m long appeared on the
southeast flank of the Eschnerberg.
Around half of Liechtenstein's national territory is mountainous.
Liechtenstein lies entirely in the Rätikon region and can therefore be
assigned – depending on the division of the Alps – to the Eastern Alps
(dividing the Alps into two) or the Central Alps (dividing the Alps into
three).
The highest point in Liechtenstein is the Vordere
Grauspitz (Vordergrauspitz) with a height of 2599 m above sea level. M.,
while the lowest point is the Ruggeller Riet at a height of 430 m above
sea level. M. represents.
In total there are 32 mountains in
Liechtenstein with a height of at least 2000 meters. The Falknishorn is
2452 m above sea level. M. is the fifth highest mountain in
Liechtenstein and represents the southernmost point of the country. The
border triangle of Liechtenstein-Graubünden-Vorarlberg is the Naafkopf
(2570 m above sea level).
In addition to the peaks of the Alpine
chain, which belong to the Limestone Alps, two inselbergs rise from the
Rhine valley, the border mountains Fläscherberg (1135 m above sea level)
in the south and the Eschnerberg (698 m above sea level) in the north,
which form part of the Helvetic ceiling or flysch zone of the Alps. The
Eschnerberg is an important settlement area in the Liechtenstein
lowlands.
The Rhine is the most important and largest body of water in
Liechtenstein. At a length of around 27 kilometers, it represents the
natural border with Switzerland and is of great importance for
Liechtenstein's water supply. The Rhine is also an important local
recreation area for the population. At 10 kilometers, the Samina is the
second longest river in the principality. The whitewater river rises in
Triesenberg and flows into the Ill in Austria (near Feldkirch).
The only naturally formed lake in Liechtenstein is the Gampriner
Seelein, which was only formed in 1927 by a flood of the Rhine with
massive erosion. There are also other artificially created lakes that
are primarily used to generate electricity. One of them is the Steg
reservoir, the largest lake in Liechtenstein.
Despite its mountainous location, the country's climate is relatively
mild. It is strongly influenced by the effect of the foehn (warm, dry
downwind), which extends the growing season in spring and autumn and
temperatures of around 15 °C are not uncommon in winter due to strong
foehn winds. The Swiss and Vorarlberg mountain ranges protect against
Atlantic and polar cold air, creating a typical inner-Alpine protective
location. The principality has a fruit culture with meadows and a long
wine-growing tradition. The small spatial extent of Liechtenstein hardly
plays a role in the climate differences, but the vertical division into
different altitudes is of great importance, so that significant climate
differences arise.
In winter the temperature rarely drops below
minus 15 degrees, while in summer the average temperatures fluctuate
between 20 and 28 degrees. The measurements of the annual rainfall show
an average of around 900 to 1,200 millimeters, while in the direct
Alpine area the rainfall is often up to 1,900 millimeters. The average
duration of sunshine is around 1,600 hours per year.
Due to its natural spatial conditions (see above), the natural
vegetation in the Principality of Liechtenstein is potentially very
differentiated. There is a loss of primary biotopes and biodiversity,
particularly in the intense anthropogenically influenced intensive
landscape of the Alpine Rhine Valley. In addition to intensive,
mechanized agriculture, construction activities in the transport and
settlement areas as well as the regulation and construction of water
bodies for flood protection and drainage lead to the loss of natural
habitat. The landscape becomes uniform with a dominance of
anthropogenically influenced, competitive plant communities in a heavily
disturbed cultural landscape. In the valley area, a large number of
different plant communities occur in mostly small areas. Almost half of
these plant communities are degraded, these are mainly ruderal and
segetal communities. This negative situation decreases with increasing
altitude. Since the end of the World War, neophytes and heat-loving
plant species in the climate-favored valley area have been able to keep
up best with the rapid changes and are increasingly spreading in
biotopes such as litter meadows and reedbeds. The original plant
associations only occur sporadically or in protected areas. This is
particularly true for plant communities in water bodies or wetlands that
suffer from changed hydrological conditions due to river obstructions
and drainage. The number of species on the Red List of endangered plants
is by far the highest in these biotopes. The meager meadow areas are
also becoming fallow land in the mountains and are being used more and
more intensively in the valley areas. The mountain area was largely
spared from industrialization and economic changes. Despite the
anthropogenic changes to the higher areas, semi-extensive to
semi-intensive cultivation contributes to the preservation of
biodiversity. The dangers of desertification and the effects of tourism
in mountain areas are to be rated higher than the dangers of
intensification.
There are forest communities and many other
plant communities.
The main occurrences of forest communities are
in the montane stage. A total of 40 forest communities were described
(the special forms, for example Pulmonario-Fagetum caricetosum albae,
were not counted separately). The height distribution of the forest
communities corresponds to 7% in the valley, 70% in the montane level,
3% in the transition area to the subalpine area and 17.5% in the forest
line zone.
There are 185 vegetation units in forest-free areas in
the Principality of Liechtenstein; they are divided into 22 classes.
These are distributed in different frequencies across the four most
important natural areas: 92 associations and plant communities occur in
the valley area, in the montane level of the Rhine Valley mountain
slopes at altitudes of 500 to 1600 meters there are 30, in the mountains
above 1600 meters there are 37 and on the various bodies of water There
are 27 plant communities.
Floods have always threatened Liechtenstein, especially from the
Rhine. The earliest flooding of the Rhine dates back to 1343. There was
evidence of 48 floods on the Alpine Rhine between the 15th and 19th
centuries. The overexploitation of the Graubünden forests in the 18th
and 19th centuries led to more sediment deposits and a gradual elevation
of the river bed due to increased silt formation and landslides. As a
solution, Switzerland and Liechtenstein concluded a treaty in 1837,
which laid the foundation for today's Rhine protection structures. The
numerous floods of the 19th century brought the impoverished country to
the brink of ruin. The last time the Rhine flooded the valley north of
Schaan was in September 1927.
Despite the looming threat of
destruction from Rüfen, settlements were built in the area of the rubble
cones because the Rhine plain was swampy and subject to regular
flooding. Damage caused by shouting is often recorded, e.g. 1666 and
1817 in Vaduz. After the heavy repairs in the summer of 1854, the first
structures were built. Despite the large investments in the Rüfe
structures, a risk remains, as was shown by a devastating event in
Triesenberg and Triesen in 1995.
The foehn sparked village and
forest fires in the Oberland. Avalanches destroyed nine huts in Malbun
in 1951 and 15 holiday homes in 1999. The number of dangerous areas has
been significantly reduced since the 1970s through construction and
reforestation.
The close coexistence of village traditions and intensive international exchange forms the basis for Liechtenstein's cultural life.
Liechtenstein's traditions, which are embedded in the cultural
landscape of Central Europe, are very similar to those of its neighbors.
The tradition of the star singers dates back to 1667 and has continued
on Epiphany to the present day. The start of Carnival begins on Dirty
Thursday, and the masked balls take place after Epiphany. Children paint
their faces black ("Ruassla"), Guggenmusik bands accompany carnival
parades, and carnival newspapers are published. On the Sunday after Ash
Wednesday, Funkensonntag is celebrated.
At Easter, colored and
decorated Easter eggs and Easter bunnies are the most important
decorations. The national holiday on August 15 is celebrated with a
large fireworks display, bonfires, and a torchlight procession on the
Fürstensteig. At the end of the summer, the herdsmen bring the cows
decorated with flowers back to the villages in the Alpabfahrt. In the
Oberland, the most productive of them are decorated with a wooden heart
on their foreheads. On November 11th, the beginning of Carnival is
celebrated with performances by the Guggenmusik. Some of the clubs hold
annual festivals with dancing and entertainment. Plays are often
performed in the local dialect.
Typical Liechtenstein dishes include Käsknöpfle with apple sauce and Ribel with milk, milk coffee, sugar or sour cheese, a speciality from Liechtenstein and the surrounding area. The Ribel is made from Rheintaler Ribelmais, a traditional local type of corn. Kratzete or Tatsch is made from dough heated in a frying pan and is eaten with compote or apple sauce.
In the predominantly Catholic principality, all holidays are
religious holidays - with the exception of May 1st, which was declared a
national holiday in 1970 as Labor Day. On August 15th, the Principality
of Liechtenstein's national holiday and the Feast of the Assumption of
Mary are celebrated simultaneously. The former Prince Franz Josef II
(1906-1989) had his birthday on August 16th. The two holidays were
combined for the first time in 1940 and have been celebrated as a
national holiday ever since. The day was retained after the prince's
death and officially referred to as a national holiday, although people
now refer to it as the so-called Prince's Festival. Since 1990, the
state ceremony has taken place on the castle meadow next to Vaduz
Castle.
Patriotic commemorations and commemorations have been
important for Liechtenstein's national consciousness since the end of
the 19th century, such as the 300th anniversary of the Principality of
Liechtenstein in 2019. The prince's inauguration, anniversaries and
milestone birthdays also provided occasion for celebrations.
The oldest architectural evidence in Liechtenstein is the remains of
the Roman villas in Nendeln and Schaanwald and the Roman fort in Schaan.
The High and Late Middle Ages produced several castles, including Vaduz
Castle. The Romanesque and Gothic churches were replaced in the 19th and
early 20th centuries by new buildings in the classicist and historicist
styles. In addition to individual representative administrative
buildings such as the Verweserhaus in Schaan or the baroque Gamanderhof
in Schaan, Rheintal farmhouses shaped the settlement until around 1850.
The Maria zum Trost chapel on Dux in Schaan has been completely
preserved in the baroque style. This modest architectural heritage
corresponds to the economic conditions of a formerly poor country
without cities.
The clarity of classicism and thus also the
frugality of the construction method suited the limited financial
possibilities of the communities. The parish church of St. Gallus was
built in Triesen and the parish church of St. Peter and Paul in Mauren.
The parish churches in Vaduz, Schaan, Eschen, Ruggell and Balzers as
well as the government building in Vaduz were built in the historicist
style from the middle of the 19th century to the beginning of the 20th
century. Modern buildings include the Engländerbau and the Mühleholz
school center in Vaduz as well as the Schellenberg parish church, all of
which are listed buildings. The Centrum Bank and the state parliament
building, both in Vaduz, are examples of postmodern architecture.
Theater and music are primarily supported by various associations.
The most important representatives of these are the Balzers Operetta
Stage, the Vaduz Operetta Stage, the Liechtenstein Musical Company and
the Vaduz Opera Association. All four of these associations usually put
on a new production every two years. The Liechtenstein Big Band has
existed since 1983.
Josef Rheinberger, one of the most important
composers of the Romantic era, came from Liechtenstein. Other composers
are included in the list of Liechtenstein composers.
The Theater
am Kirchplatz (TaK) in Schaan is the most important theater in
Liechtenstein. Since October 2003, Vaduz has also had the Theater
Schlösslekeller, where the "Liechtensteiner Gabarett" (LiGa) puts on a
new program every year.
In 2010, the International Music Academy
was founded in the Principality, which is also attended by students from
other nations.
The Liechtenstein P.E.N. Club, founded in 1978,
brings together international personalities in what is probably the most
famous international authors' association in the world. The club awards
prizes and scholarships and organizes readings.
The Liechtenstein Museum of Art is the state museum for modern and
contemporary art in Vaduz. The building, designed by the architects
Meinrad Morger, Heinrich Degelo and Christian Kerez, was completed in
2000. The museum's collection includes international modern and
contemporary art from the 19th century to the present day. Special
exhibitions with works from the collections of the Prince of
Liechtenstein are also shown regularly.
The Liechtenstein
National Museum, which reopened in 2003 after extensive renovation and
presents the history as well as the country's and natural history of
Liechtenstein, is also of great importance.
Other museums include
the "Postal Museum" and various local museums, including the Gasometer,
a cultural center of the municipality of Triesen.
Liechtenstein has an Olympic Committee (LOC), a University Sports Association (LHSV), an Alpine Club (LAV) and an Athletics Association (LLV).
Liechtenstein football clubs participate in the Swiss Football
Association's game operations. Liechtenstein runs the national cup under
its own management, so that every year a Liechtenstein team can take
part in the qualification for the Europa League. This honor is usually
given to the cup series winner FC Vaduz, which played in the highest
Swiss league, the Super League, from 2014 to 2017.
The biggest
success to date in Liechtenstein club football was in 1996, when the
amateurs of FC Vaduz, then still in the 1st League of the SFV (third
highest league), defeated their Latvian opponents FC Universitāte Rīga
(1:1, 4:2 penalty shootout) in the European Cup Winners' Cup. They then
failed against prominent opponent Paris Saint-Germain (0:4, 0:3).
Another success was the first qualification for the group stage of the
UEFA Europa Conference League in 2022 and thus the first time a
Liechtenstein representative reached a European group stage.
The
Liechtenstein national football team takes part in World Cup and
European Championship qualifications. The greatest success was a 4:0 win
against Luxembourg in the 2006 World Cup qualification; just four days
earlier, Liechtenstein had achieved a 2:2 draw against European
runners-up Portugal. The Liechtenstein football players also celebrated
a 3:0 home victory against Iceland on October 17, 2007 and a 2:0 home
victory against Lithuania on June 3, 2011 as part of the qualification
for the European Championship in Poland/Ukraine.
The most famous
player in the national team is Mario Frick (FC Basel, Ternana Calcio, AC
Siena, FC Balzers, among others), who was the first Liechtensteiner to
make his debut in the Italian Serie A (26 August 2001) and scored seven
goals for Hellas Verona this season. Mario Frick now works as a football
coach.
FC Vaduz and the national team play their home games at
the Rheinpark Stadium in Vaduz, the principality's national stadium
opened in 1998.
In winter, winter sports are practiced in the mountainous region
around Malbun. Liechtenstein has had some success in alpine skiing. The
highlight – apart from various World Cup victories – was when Hanni
Wenzel from Liechtenstein won two gold medals and a silver medal at the
Olympic Games in Lake Placid in the winter of 1980. She and her brother
Andreas Wenzel also won the overall World Cup in 1980 – the only
siblings in the history of the Alpine Ski World Cup to do so. There is
also a bronze medal from the Winter Olympics in Innsbruck. Andreas
Wenzel won a silver Olympic medal in Lake Placid in 1980 and a bronze in
Sarajevo in 1984.
At the beginning of the 21st century, Marco
Büchel achieved various successes. Currently, Tina Weirather (daughter
of Hanni Wenzel and Harti Weirather) is the most famous and successful
skier in the country. Liechtenstein is the most successful nation in the
unofficial statistics of “Olympic medals per capita”. Successful
cross-country skiers were Markus Hasler and Stephan Kunz.
Special Olympics Liechtenstein was founded in 2001 and has taken part in the Special Olympics World Games several times.
As of December 31, 2022, Liechtenstein had a total of 39,680
inhabitants.
In 2022, population growth was 0.9% (increase of 372
people). The average population density is around 247 people per square
kilometer.
The last child was born in the Liechtenstein State
Hospital in spring 2014. Since April 2014, expectant mothers from
Liechtenstein have had to go abroad for hospital births because the
country's only maternity ward was closed.
There are no reliable figures for the population in what is now
Liechtenstein during the Middle Ages. It was not until 1584 that there
was a first estimate, according to which around 2,500 people lived in
the county of Vaduz and around 1,300 in the Schellenberg estate - i.e.
around 3,800 residents in total.
Although no figures are
available for the period of the Thirty Years' War, it can be assumed
that the population - as in the rest of Central Europe - stagnated or
declined. It then rose sharply until it stagnated again due to a series
of epidemics and food crises between around 1730 and 1760; also during
the Napoleonic Wars of Liberation, where there was even a slight decline
in population after Austrian troops introduced epidemics in 1796. The
population then grew again until 1840, only to stagnate again. However,
population growth at the beginning of the 19th century was so high that
fears of general impoverishment arose, which was politically responded
to with restrictive measures such as marriage restrictions, the success
of which is, however, unknown.
Only at the beginning of the 20th
century did slow growth begin again - interrupted by the departure of
foreign workers during the First World War. After the Second World War,
the population increased rapidly as a result of the economic boom -
primarily due to the influx of foreign workers.
In the early modern period, during the stagnation phases, the death
rate was several times higher than the birth rate. While the birth rate
rose sharply at the end of the 18th century, the death rate declined in
the long term from the beginning of the 19th century due to hygienic and
medical improvements as well as improvements in the food supply.
Epidemics - which have always recurred with a certain regularity
throughout history - now became rarer and, above all, no longer meant
the death of a sick person with such high probability. This can also be
seen in life expectancy, which increased from 29 in the 1830s to 39 in
the early 20th century, 62 in the early 1960s and 76 in 2003.
As
industrialization progressed, the number of children per family
decreased because they were no longer needed to work on the farm and
instead represented a financial burden. Although this trend was briefly
interrupted by the baby boom of the 1940s and 1950s, in the 1960s the
birth rate quickly fell to today's level with the pill break. Various
social factors (such as an increase in single-person households, the
possibility of divorce or strong consumerism) kept the birth rate low
afterwards.
Until the First World War, Liechtenstein was a country of emigration
due to the poor supply situation and its poverty. Salary service for
foreign countries, marriage abroad or entry into foreign monasteries
were common practice early on. From the 18th century onwards, seasonal
work abroad also became more important, only ending with the economic
boom after the Second World War. In order to limit emigration,
emigration restrictions were imposed in 1805, which were completely
lifted in 1848 after previous relaxations. As a destination, North
America was probably just as important as the neighboring countries
Austria and Switzerland, where migration was particularly favored by
free movement agreements (Switzerland) and customs agreements (Austria).
With industrialization, migration patterns changed and foreign
workers and skilled workers came to the country. While the proportion of
foreigners in the population was still 16.2% at the beginning of
industrialization in 1941, it rose to 53.9% by 1970. In order to slow
down this trend, Liechtenstein has been pursuing a very restrictive
immigration policy since 1945, which, however, contradicts international
trade agreements. The principality committed itself to an annual minimum
quota of immigrants both to the EEA states and to Switzerland.
In
2018, 649 people immigrated to Liechtenstein, of whom 26.3% had
Liechtenstein citizenship, 484 people emigrated, including 49.0% with
Liechtenstein citizenship.
In 2019, around two thirds of the residents (66.1%) were Liechtenstein citizens, of whom around 70% have had national citizenship since birth and 30% through naturalization. Almost 60% of the foreign resident population came from the rest of the German-speaking area (28.1% from Switzerland, 17.2% from Austria and 12.7% from Germany), followed by 9.2% from Italy and 5.5% from Portugal. 4.4% of foreigners in Liechtenstein came from Turkey and 23% came from other countries. Overall, Liechtenstein's permanent resident population includes people from around 90 nationalities.
According to Article 37 II of the state constitution, the Roman
Catholic Church is the regional church and as such enjoys the full
protection of the state. However, the separation of church and state is
sought. Since December 20, 2012, every Liechtenstein citizen aged 14 and
over has been able to freely choose their religious belief, even without
the consent of a legal guardian.
According to the results of the
2015 census, 73.4% of Liechtenstein residents were Roman Catholic, 8.2%
were Protestant, and around 5.9% belonged to an Islamic religious
community. 2.3% were members of another Christian denomination or
non-Christian religion, 7% described themselves as non-denominational,
and a further 3.3% of the population did not provide any information
about their religious affiliation.
In a representative survey on
religious affiliation commissioned by the Liechtenstein government in
2008, 78% of domestic and foreign residents stated their religion as
Roman Catholic, 11% were Protestant, around 3% belonged to an Islamic
religious community, and 6% did not provide any information. The
proportion of the population without a religious denomination in
Liechtenstein was 2.8%. The number of Jews in Liechtenstein is around
three dozen people.
Until 1997, Liechtenstein belonged to the
diocese of Chur. On December 2, 1997, the Archdiocese of Vaduz was
established by Pope John Paul II and separated from the Diocese of Chur.
With the establishment of the Archdiocese of Vaduz, the parish church of
St. Florin in Vaduz was elevated to a cathedral church. After the
previous archbishop retired, Feldkirch diocesan bishop Benno Elbs has
been leading the archdiocese of Vaduz as apostolic administrator since
2023.
There are two Protestant churches in the Principality that
are organized as an association: the Evangelical Church in the
Principality of Liechtenstein and the Evangelical Lutheran Church in the
Principality of Liechtenstein, as well as a Christian Orthodox church.
In Liechtenstein, according to Article 6 of the Constitution, German
is the official language. Liechtenstein is the only state with German as
the only recognized official and national language; in the other states
of the German-speaking area, other languages are also recognized as
official or minority languages.
The written and media language is
standard German, which is primarily influenced by Swiss High German, but
also has strong influences from Austrian German, particularly for
historical reasons, and also has some local peculiarities. In
Liechtenstein, like Switzerland, a double s is written instead of the ß.
The Liechtenstein population speaks various Liechtenstein dialects,
the vast majority of which belong to a Middle Alemannic-High Alemannic
transitional dialect, as is spoken across the border in the Rhine
Valley, in the neighboring canton of St. Gallen (Switzerland) and in
neighboring Vorarlberg (Austria). The local dialects sometimes differ
significantly from municipality to municipality.
However, the
highly Alemannic-Walser German dialect of Triesenberg still stands out
from the highly Alemannic dialects of the long-established population.
Its speakers came to the country around 1300 AD during the Walser
migration from the Swiss canton of Valais. During the Middle Ages, the
long-established population here - as in the entire Lower Rhaetian
region - gave up the old Romansh national language in favor of
Alemannic.
According to Article 37 II of the state constitution, the Roman
Catholic Church is the national church and as such enjoys full
protection from the state. The separation of church and state is,
however, being sought. Since December 20, 2012, every Liechtenstein
citizen aged 14 and over can freely choose their religious beliefs
without the consent of a parent or legal guardian.
According to
the results of the 2015 census, 73.4% of Liechtenstein residents were
Roman Catholic, 8.2% Protestant, and around 5.9% belonged to an Islamic
religious community. 2.3% were members of another Christian denomination
or non-Christian religion, 7% described themselves as
non-denominational, and a further 3.3% of the population did not provide
any information about their religious affiliation.
In a
representative survey on religious affiliation commissioned by the
Liechtenstein government in 2008, 78% of domestic and foreign residents
stated that their religion was Roman Catholic, 11% were Protestant,
around 3% belonged to an Islamic religious community, and 6% did not
provide any information. The proportion of the population without a
religious affiliation in Liechtenstein was therefore 2.8%. The number of
Jews in Liechtenstein is around three dozen people.
Until 1997,
Liechtenstein belonged to the diocese of Chur. On December 2, 1997, the
Archdiocese of Vaduz was finally established by Pope John Paul II and
separated from the Diocese of Chur. With the establishment of the
Archdiocese of Vaduz, the parish church of St. Florin in Vaduz was
elevated to a cathedral church. After the retirement of the previous
archbishop, the Feldkirch diocesan bishop Benno Elbs has been leading
the Archdiocese of Vaduz as Apostolic Administrator since 2023.
There are two Protestant churches in the principality that are organized
as an association: the Evangelical Church in the Principality of
Liechtenstein and the Evangelical Lutheran Church in the Principality of
Liechtenstein, as well as a Christian Orthodox church.
Liechtenstein has a compulsory schooling period of nine years.
Compulsory schooling is divided into primary school (five years) and
secondary school (at least four years), although preschool
(kindergarten) can be attended on a voluntary basis beforehand. The
curriculum is based on the Swiss-German curriculum 21. Secondary school
itself is divided into three different levels, into which students are
assigned according to their ability. High school and secondary school
are completed after four years, while high school can be completed after
seven years to obtain the Matura.
Two thirds of Liechtenstein
school leavers complete an apprenticeship. Because of the common
economic area, vocational training corresponds to the system in
Switzerland. The job titles in Liechtenstein are the same as those in
Switzerland. Most young people living in Liechtenstein complete their
apprenticeship in Liechtenstein, while 13 percent do so in Switzerland.
In contrast, 26 percent of apprenticeships in Liechtenstein are filled
by apprentices living in Switzerland and 1 percent by Austrians. The
majority of students attend vocational school in the neighboring canton
of St. Gallen. The voluntary vocational secondary school then enables
students to study at a university of applied sciences.
Liechtenstein has two universities. The University of Liechtenstein is a
state university with a focus on architecture and spatial development as
well as economics. The Private University in the Principality of
Liechtenstein is nationally and internationally recognized and offers
accredited, part-time doctoral programs in medical science and law.
Another private university is the International Academy of Philosophy.
The Liechtenstein Institute in Bendern is a scientific research
institution with a public library. The country is also one of the
sponsors of the Intercantonal University of Special Education in Zurich.
Due to its small size, Liechtenstein is dependent on cooperation with
its neighbors in the medical field. Liechtenstein patients are also
treated in hospitals in its Swiss neighborhood, particularly in the
Grabs Hospital, which opened in 1907. At the beginning of the 1920s, a
hospital and obstetrics ward were set up in the Vaduz Bürgerheim, which
was able to move into a new building in 1981. In 2000, the Vaduz
hospital changed its name to the Liechtenstein State Hospital. The
Liechtenstein Red Cross (LRK), founded in 1945, has been providing the
emergency services since 1971.
The health care system is largely
financed through health and accident insurance as well as through the
state. Since 1972, health insurance has been compulsory for all people
living in the country. Despite revisions to the Health Insurance Act,
health care costs are constantly rising.
According to its constitution, Liechtenstein defines itself as a
“constitutional hereditary monarchy on a democratic-parliamentary
basis”. The democratic-parliamentary basis arises from the legislature
that is elected and voted out by the people and the direct democratic
opportunities for the people to be directly involved in everyday
political life. However, in case of doubt, the constitution gives the
monarch the last word.
According to Article 2 of the
Constitution, state power is “… anchored in the Prince and the people
and is exercised by both in accordance with the provisions of this
Constitution”. In contrast to other European monarchs, the sovereign not
only has representative tasks, but also has extensive powers: as head of
state, he can dissolve, close and adjourn the state parliament, the
popular election of the members of parliament is the responsibility of
the prince's swearing in, the state government is appointed by the state
parliament at the suggestion of the state parliament Princes appointed,
and he can revoke laws passed by parliament and the people based on his
sanction rights. The current head of state of Liechtenstein has been
Prince Hans Adam II of Liechtenstein since 1989. Since August 2004,
Hereditary Prince Alois of Liechtenstein has been in charge of state
affairs.
The legislative power lies with the sovereign and the state
parliament of the Principality of Liechtenstein. The state parliament
consists of 25 representatives who are elected by the people for four
years using proportional representation. The people vote in two
constituencies, with 10 representatives being elected in the lower
region and 15 in the upper region. The legislation is defined by the
65th Article of the Constitution. According to this, no laws may be
passed or changed without the participation of the state parliament.
After a law has been passed by the state parliament, it must be
sanctioned by the prince, countersigned by the head of government and
announced in the state law gazette before it finally comes into force.
If a law is not sanctioned by the sovereign within six months, it is
considered rejected.
Two Christian-oriented people's parties play
the main role in Liechtenstein's political landscape, namely the
Progressive Citizens' Party (FBP) and the Fatherland Union (VU). They
are in a coalition and form the government. The Progressive Citizens'
Party is more strongly represented in the lower region and is seen as
loyal to the prince, economically liberal and conscious of tradition,
while the Fatherland Union predominates in the upper region and is more
committed to socio-political issues. Apart from that, there are no major
ideological differences between the two major parties.
In the
2017 state elections, the FBP lost 4.8 percent of the vote, the VU
gained 0.2 percent. Nevertheless, the FBP remained the party with the
largest number of votes with a total of 35.2 percent, followed by the VU
with 33.7 percent. The electoral group Die Independents (DU), which
first took part in 2013, was able to gain 18.4 percent of the vote. The
green-alternative Free List (FL) also grew by 1.5 percent. Based on this
result, the FBP received 9 representatives in the state parliament, the
VU 8 representatives, DU 5 representatives and the FL 3 representatives.
In 2018, MP Johannes Kaiser left the FBP parliamentary group and has
been a non-party MP ever since. This reduced the FBP's mandate strength
to 8 seats.
The five-member government provides the executive branch. It consists
of the head of government and four government councilors. Since 2013,
the government has been organized into five ministries (Presidential
Affairs and Finance, Foreign Affairs, Society, Interior and
Infrastructure). The business areas of economy, justice, education,
environment, sport and culture are assigned to the individual
ministries. Each member of the government is the head of a ministry and
is called minister. Daniel Risch (VU) has been the head of government
since March 25, 2021. At the suggestion of the state parliament, the
head of government and government councilors are appointed by the
sovereign. With the controversial constitutional change in 2003, the
sovereign was given the opportunity, with the 80th constitutional
article, to dismiss the government or - with the agreement of the state
parliament - individual government councilors at any time and without
giving reasons.
Sabine Monauni (FBP) sits in the government as
deputy to the head of government. Other government members are Manuel
Frick (FBP), Dominique Hasler (VU) and Graziella Marok-Wachter (VU).
Since the administrative reorganization in 2013, the Liechtenstein
state administration now includes 22 official offices and 12 staff
offices as well as 8 diplomatic missions abroad. Liechtenstein's
statehood results in a large administration in relation to the number of
inhabitants. The largest official offices are the Office for
Construction and Infrastructure, the State Police, the Office for
Justice, the Office for Economic Affairs, the Tax Administration and the
School Office. Financial control and the data protection office are
subordinate to Parliament, and the Financial Market Authority (FMA) is a
supervisory authority that is independent of the administration.
According to Article 1 of the Court Organization Act (GOG), the civil
and criminal judiciary has three instances: the Princely Regional Court,
the Princely Higher Court and the Princely Supreme Court, all of which
are based in Vaduz. The Princely Higher Court and the Princely Supreme
Court decide on a Senate basis, while at the Princely Regional Court, in
accordance with Art. 2 GOG, single judges act in civil and, in most
cases, in criminal matters. Referral to the third instance is sometimes
only possible to a limited extent in civil and criminal cases.
The independent administrative judiciary is exercised by the Princely
Administrative Court, which, in accordance with Article 78 Paragraphs 2
and 3 of the State Administrative Maintenance Act, decides on decisions
of the internal administrative appeal authorities (government or
administrative appeal body) in a Senate composition.
Further
downstream from the ordinary courts is the Liechtenstein State Court, to
which final decisions of the last instance can be appealed using the
extraordinary legal remedy of an individual complaint in accordance with
Article 15 of the State Court Act.
Judge positions in the
Principality of Liechtenstein are publicly advertised for applications.
Suitable candidates are proposed for election to the state parliament by
a committee consisting of the sovereign and equal representation of
representatives of the sovereign and the state parliament, which in turn
recommends the elected judges to the sovereign for appointment (Article
96 of the Liechtenstein Constitution).
There is a strong direct democratic element in the Liechtenstein
system. At least 1,000 citizens can convene the state parliament
(Article 48(2) of the Liechtenstein Constitution), and at least 1,500
can request a referendum on its dissolution (Article 48(3) of the
Liechtenstein Constitution). 1,000 citizens can also submit a request to
the state parliament to enact, amend or repeal a law. Every law is
subject to a referendum if the state parliament decides to do so or at
least 1,000 citizens or comparatively three municipalities request it
(Article 64 of the Liechtenstein Constitution). At least 1,500 citizens
or four municipalities are necessary for constitutional changes or state
treaties. The constitution of March 2003 expanded the direct democratic
rights of the country's citizens in fundamental aspects.
In times
of crisis, the prince can invoke emergency law (Article 10 of the
Liechtenstein Constitution).
On July 1, 1984, Liechtenstein was the last country in Europe to introduce women's voting rights. Women's suffrage was rejected in two referendums in 1971 and 1973. A constitutional amendment passed by the state parliament in 1976 enabled communities to introduce women's suffrage at the local level. The reasons for the late introduction include the country's former rural structure and the associated conservative image of women. Women are still significantly underrepresented in the state parliament and local councils.
Liechtenstein is divided into eleven municipalities, which are
divided into the two constituencies Unterland and Oberland. The
country's political division is due to historical reasons; the lower
country goes back to the Schellenberg rule, the upper country to the
county of Vaduz.
The lowlands include the communities of Eschen,
Gamprin, Mauren, Ruggell and Schellenberg; The Oberland, which is much
larger in terms of area, includes the communities of Balzers, Planken,
Schaan, Triesen, Triesenberg and Vaduz. The autonomy of the
Liechtenstein municipalities is at the top compared to the other
countries in Central Europe, along with Switzerland. Despite their small
size, the communities have complex forms in their territorial extent. In
addition to a main part, seven communities also include one or more
exclaves. The citizens' cooperatives, which occur in around half of
Liechtenstein's municipalities, are the owners of collectively used
forests and pastures as well as parceled areas that are left for private
use.
Constitution
The constitution defines Liechtenstein as a
constitutional hereditary monarchy on a democratic and parliamentary
basis. State power is borne by the prince and the people. The
constitution dates from 1921, guarantees citizens extensive basic rights
for the first time and, based on the Swiss model, brought a significant
expansion of people's rights. The right of sanction enables the prince
to influence legislation. He also has the right of pardon and the right
of abolition.
The European Convention on Human Rights came into
force for Liechtenstein in 1982. The convention supplements the catalog
of fundamental rights in the constitution and has substantive
constitutional status.
Liechtenstein family law is based on the Austrian General Civil Code
(ABGB), which was adopted in 1812 and 1846. After the First World War, a
planned new codification based on the example of the Swiss Civil Code
(ZGB) was not carried out. Family law and inheritance law continue to be
based on the General Civil Code, with certain changes.
Marriage
law underwent a significant change with the Marriage Act of 1974, which
introduced compulsory civil marriage and made divorce possible. The
equality between men and women achieved with the marriage and family law
reform of 1993 was primarily modeled on Austrian law.
The
Property Law (SR), which was adopted from the Swiss Civil Code, came
into force in 1923 as the first part of the planned Liechtenstein Civil
Code. It regulates ownership, possession and the land register.
The Persons and Companies Law (PGR) of 1926 and 1928 was a result of
Liechtenstein's reorientation from Austria to Switzerland after the
First World War. It is based on Swiss law – the Civil Code and the Code
of Obligations (OR). The sections on corporate law largely contain
independent Liechtenstein law with the purpose of attracting foreign
investors. These were key factors in the rise of financial services in
the second half of the 20th century.
The General German
Commercial Code (ADHGB) was adopted in 1865, during Liechtenstein's
membership in the German Confederation. It is still in force today with
restrictions, but large parts have been replaced by the PGR.
The Liechtenstein Penal Code StGB from 1989 is based on the
fundamentally reformed Austrian Penal Code from 1975. The death penalty
was abolished and homosexuality was permitted. Deviating from Austrian
law, the time limit solution for abortion was rejected.
The
Liechtenstein Code of Criminal Procedure (StPO) and the Liechtenstein
Code of Civil Procedure (ZPO) are also based on Austrian law.
The most extensive part of the Liechtenstein legal system is administrative law, which includes commercial administrative law, school law, construction law and traffic law. Some of the areas covered must be continually adapted to rapidly changing circumstances. Liechtenstein administrative law is a mixture of Austrian, Swiss and independent Liechtenstein law.
The entire database of Liechtenstein legislation is available online free of charge on the Liechtenstein Law Collection (LILEX).
In 2017, the state budget of the Principality of Liechtenstein included operating expenses of 789 million Swiss francs, compared to income of 800 million Swiss francs. Including the financial result of 160 million Swiss francs, the state budget ended with a surplus of 170 million Swiss francs. Taking into account the budgets of municipalities and social security funds, there was a surplus of 196 million Swiss francs for the state sector in 2016. This corresponds to 3.2 percent of the gross domestic product. At the end of 2016, the state's net assets were valued at around 7.1 billion Swiss francs, and the gross debt ratio was just 0.4 percent. Due to the good economic and financial data and the forward-looking implementation of international standards, the Principality of Liechtenstein was one of the few states to have its “AAA” rating from Standard & Poor’s repeatedly confirmed.
Due to a lack of political or military power, Liechtenstein has sought to maintain its sovereignty over the past 200 years through membership in legal communities. International cooperation and European integration are therefore constants of Liechtenstein's foreign policy, which aim to continue to safeguard the country's sovereignty recognized under international law. Strong direct democratic and citizen-oriented decision-making mechanisms, which are anchored in Liechtenstein's 1921 constitution, were and are crucial for the domestic political legitimacy and sustainability of this foreign policy.
Important historical stages in Liechtenstein's integration and
cooperation policy were its accession to the Confederation of the Rhine
in 1806, the German Confederation in 1815, the conclusion of bilateral
customs and currency agreements with the Danube Monarchy in 1852 and
finally the customs treaty with Switzerland in 1923, which was followed
by a whole series of other important bilateral treaties.
After
the economic reconstruction of the post-war period, Liechtenstein joined
the Statute of the International Court of Justice in 1950. In 1975,
Liechtenstein signed the Helsinki Final Act of the CSCE (today's OSCE)
together with 34 other states. In 1978, Liechtenstein joined the Council
of Europe, and on 18 September 1990, Liechtenstein was admitted to the
United Nations (UN). In 1991, Liechtenstein joined the European Free
Trade Association (EFTA) as a full member, and since 1995 Liechtenstein
has been a member of the European Economic Area (EEA) and the World
Trade Organization (WTO). In 2008, Liechtenstein joined the
Schengen/Dublin Agreement together with Switzerland. Relations within
the EEA and the EU occupy a special place in Liechtenstein's foreign
policy from an economic and integration policy perspective. The
Liechtenstein Crown Prince also takes part in the annual meetings of the
heads of state of the German-speaking countries (consisting of EU and
non-EU members).
Relations with Switzerland are particularly extensive due to the close cooperation in many areas; in some areas, Switzerland carries out tasks that would be difficult for the Principality to manage on its own due to its small size. Since 2000, Switzerland has appointed an ambassador to Liechtenstein, who resides in Bern. Liechtenstein's consular representation has mostly been carried out by Switzerland since the customs treaty with Switzerland in 1923.
Liechtenstein has direct diplomatic representations in Vienna, Bern, Berlin, Brussels, Strasbourg and Washington, D.C., as well as permanent missions in New York and Geneva to the United Nations. Diplomatic representations from 78 countries are currently accredited in Liechtenstein, but mostly reside in Bern. The embassy in Brussels coordinates contacts with the European Union, Belgium and the Holy See.
For a long time, diplomatic relations with Germany were maintained through a non-resident ambassador, i.e. a contact person who was not permanently resident in Germany. Since 2002, however, Liechtenstein has had a permanent ambassador in Berlin, while the German embassy in Switzerland is also responsible for the principality. Liechtenstein's foreign ministry sees the contacts, particularly on an economic level, as extremely productive and important for the country's development. However, conflicts over the handling of bank and tax data have repeatedly strained relations. On September 2, 2009, Liechtenstein and Germany signed an agreement on cooperation and the exchange of information in tax matters. The text of the agreement followed the OECD model agreement and provides for an exchange of information on tax matters upon request from the 2010 tax year. In addition, Liechtenstein sees the Federal Republic as an important partner in the pursuit of its interests in European integration. At the cultural level, project funding plays a particularly important role. For example, the Hilti Foundation financed the exhibition “Egypt’s Sunken Treasures” in Berlin, and the state donated 20,000 euros after the fire at the Duchess Anna Amalia Library in Weimar.
In 2009, the Czech Republic was the last EU member to recognize Liechtenstein as a sovereign state. This was preceded by a decades-long diplomatic dispute between the two countries after the Beneš decrees expropriated and nationalized all of the royal family's properties in Czechoslovakia. The case ended up in the International Court of Justice, but Liechtenstein lost. In the course of 2009, the countries normalized their relations, and Liechtenstein also granted diplomatic recognition to Slovakia for the first time.
Membership of the European Economic Area in principle provided for complete freedom of movement for people. However, because it was foreseeable that many EU citizens would take up residence in the tax-friendly principality, which was not desired in their home countries (which feared tax losses) or in Liechtenstein (where rising property prices were feared), a special agreement was made whereby Liechtenstein would issue 88 new residence permits per year. 72 residence permits are issued to EEA citizens each year, 56 of which are for employed persons and 16 for non-employed persons. Half of the former are awarded by the government according to unclear criteria "according to the needs of the economy", the other half and the permits for non-employed persons are awarded by lottery at the insistence of the EU. In any case, family members can join the country. The requirements are more restrictive for Swiss citizens. They are only granted 17 residence permits each year. These permits are not awarded by lottery, but by the government. On February 28, 2008, the Principality signed its accession to the Schengen area, and the accession took place on December 19, 2011.
With the total revision of the tax law in 2010 (applicable from
January 1, 2011), Liechtenstein's tax law was brought into line with
international and European tax standards, including the regulations on
state aid. The old tax law of 1961, which still contained some
regulations from the tax law of 1923, was abolished together with the
privileged tax regimes for domicile and holding companies and replaced
by a new comprehensive tax system. The new regulations are monitored by
the EFTA Surveillance Authority and the EFTA Court as counterparts to
the European Commission and the European Court of Justice within the
European Economic Area (EEA).
Furthermore, the EU Code of Conduct
Group (corporate taxation) together with the EU Commission examined the
Liechtenstein tax system and came to the conclusion that:
Liechtenstein complies with the international standard regarding the
exchange of information in the tax area;
Liechtenstein has no harmful
tax practices or regimes and applies the regulations against base
erosion and profit shifting (BEPS) (previously missing anti-abuse
provisions for dividends and capital gains as well as for the equity
interest deduction have been implemented and in force since July 13,
2018);
Liechtenstein does not promote artificial tax structures.
Legal entities (such as stock corporations, limited liability
companies, foundations and institutions) are subject to the general
income tax of 12.5% (which is comparable to the corporate tax rate in
other European countries).
Natural persons are subject to both
income tax and wealth tax. The wealth tax is calculated as a
standardized target income of 4% of net assets, which represents a
fictitious acquisition. This fictitious acquisition (4% of net assets)
is then added to the remaining acquisition (income from employment,
etc.). The resulting tax base is subject to a progressive tax rate of up
to 28% (including the municipal tax surcharge).
Liechtenstein
also has a VAT system that corresponds to the Swiss VAT system due to
the customs and monetary union with Switzerland. Since January 1, 2018,
the rates of 7.7% standard rate, 2.5% reduced rate and 3.7% special rate
for accommodation services have applied.
In 2016, Liechtenstein was one of the first non-OECD countries to
join the OECD's Inclusive Framework, thus complying with the
international standards developed in the area of cross-border
corporate taxation (Base Erosion and Profit Shifting; BEPS) in both its
national and international tax law. The 2010 tax law was adjusted
accordingly (adjustments applicable from January 1, 2017). The
adjustments included:
the introduction of the correspondence
principle for dividends within corporate groups to avoid double
non-taxation (see BEPS Action Point 2);
the abolition of the IP box
(see BEPS Action Point 5);
the introduction of standardized transfer
pricing documentation (see BEPS Action Point 13).
The OECD Forum
on Harmful Tax Practices (FHTP) further found that Liechtenstein does
not have any harmful tax regimes. Liechtenstein was also one of the
first signatories to the Multilateral Convention to Implement Tax Treaty
Related Measures to Prevent Base Erosion and Profit Shifting (MLI) and
has also created the necessary legal basis for the exchange of
information upon request as well as automatic and spontaneous exchange
of information, which corresponds to international standards.
Liechtenstein has also ratified the Multilateral Administrative
Assistance Convention (MAK), which has been applicable since January 1,
2017. The MAK serves as the legal basis for comprehensive administrative
assistance in tax matters and enables the exchange of information upon
request. As part of the Phase 2 peer review process of the OECD Global
Forum on Transparency and Exchange of Information for Tax Purposes in
October 2015, Liechtenstein received the rating "Largely Compliant".
Furthermore, based on the MAK, Liechtenstein signed the Multilateral
Authority Agreement on the Automatic Exchange of Financial Account
Information (MCAA-CRS) in October 2014, which creates a multilateral
framework for the automatic exchange of information (AEOI).
Liechtenstein's current AEOI network includes 88 partner states. As part
of the AEOI agreement between Liechtenstein and the EU, which has been
applicable since January 1, 2016, Liechtenstein was one of the first
states to successfully carry out the first automatic exchange of
tax-relevant information with the EU member states in September 2017.
With the introduction of the AEOI in 2015, the provisions on
Liechtenstein's due diligence obligations were also changed.
Liechtenstein's AML/CFT framework is based on the 4th EU Money
Laundering Directive (2015/849), which fully takes into account the
recommendations of the Financial Action Task Force (FATF).
Liechtenstein also signed the Multilateral Authority Agreement on the
Exchange of Country-by-Country Reports (MCAA-CbC) in January 2016. The
peer review report on country-by-country reporting (CbC) shows no
deficiencies. In addition, Liechtenstein has had the necessary national
legal framework for the spontaneous exchange of information (SEI) since
January 1, 2018. On the basis of this legal framework, which complies
with international and European tax standards, Liechtenstein has so far
concluded 18 double taxation agreements (DTAs), including a DTA with
Germany, Austria, Switzerland, the Czech Republic, the United Kingdom
and Hungary.
The Liechtenstein welfare state is modeled on that of Switzerland. There are various compulsory social insurance schemes. The old-age and survivors' insurance (AHV), the pension fund and private pension provision are together referred to as the three-pillar system, as in Switzerland. Since joining the European Economic Area (EEA), AHV regulations have existed with all EEA states.
On February 12, 1868, Prince Johann of Liechtenstein decided that
"given the changed circumstances in the German state system," it was "in
the interest of my principality to refrain from maintaining a military
contingent," and he disbanded the Liechtenstein armed forces. Since
then, the principality has no longer had its own army; however, general
conscription is still anchored in the constitution. The national police
are responsible for internal security and crime prevention. Some
communities maintain their own municipal police.
During the
Second World War, Switzerland wanted to include the territory of the
Principality of Liechtenstein in its national defense, as
Liechtenstein's topography offered favorable conditions for an attack on
the Swiss border in the Rhine Valley. Liechtenstein, however, rejected
this because it feared that this would place excessive strain on its
relations with Nazi Germany. Switzerland continued to push for a
solution to the problem after the end of the war. Finally, Liechtenstein
ceded militarily important points to Switzerland in several stages -
each time in return for financial and territorial compensation - most
recently in 1949 with the Ellhorn.
To date, there is no treaty
that would regulate Switzerland's obligation or right to intervene in
the event of an attack on Liechtenstein territory. However, based on the
agreement of November 2, 2005 between the Principality of Liechtenstein
and the Swiss Confederation on mutual assistance in the event of
disasters or serious accidents, both civilian and military units from
Switzerland can provide assistance in Liechtenstein at the request of
Liechtenstein.
The e-government strategy in Liechtenstein attempts to meet
challenges with the best possible efficiency. The three main goals here
are:
a modern public administration that makes Liechtenstein an
attractive business location
meeting external requirements,
especially those of the EU
implementing the wishes and needs of
customers
In 2010, a draft law on electronic commerce was
presented, which particularly promotes communication with authorities
and electronic administrative action. This will enable authorities to
offer various services electronically, thereby simplifying the
administrative process. An important point here is the creation of an
"electronic identity card" (eIDA), which ensures that the person is
clearly identified by the authority.
By using e-government,
processes are simplified and customers can easily access services
regardless of time or place. In addition, resources are used in a
targeted manner, thereby reducing costs in the long term. Security is
ensured by direct transmission to the responsible authorities, clear
identification and controlled data access.
International awards for environmental policy
In 2013,
Liechtenstein won the 2nd SolarSuperState award in the solar category
for the first time in recognition of the level of photovoltaic use
achieved in the state. The award was justified by the SolarSuperState
Association with the cumulative installed photovoltaic power of around
290 watts per inhabitant achieved on December 31, 2012, which meant
second place worldwide behind Germany. In 2014, Liechtenstein was also
awarded the 2nd SolarSuperState Prize in the Solar category. In 2015 and
2016, Liechtenstein was awarded the 1st SolarSuperState Prize in the
Solar category because the country had the largest cumulative installed
photovoltaic power per population in the world.
The economy in Liechtenstein is mainly concentrated on the secondary
(industry) and tertiary (services) economic sectors, with around 40
percent of the economic output coming from industry and 55 percent from
services. Liechtenstein's gross domestic product (GDP) amounted to 6.6
billion Swiss francs in 2019. The GDP per employee in 2019 was 194,136
Swiss francs calculated on a full-time equivalent basis, or 165,566
Swiss francs per employed person. The gross national income per capita,
adjusted for purchasing power, is very high by international comparison
at around 120,000 Swiss francs (2018) and is the highest of all EU/EFTA
states.
Due to the large proportion of commuters in the total
number of employed people in Liechtenstein, the gross national income is
better suited than the GDP for assessing the income situation of the
population. In 2016, around 54 percent of the 37,453 people employed in
Liechtenstein did not live in Liechtenstein but commuted from abroad.
Most foreign workers came from Switzerland (2016: 54.3 percent) and
Austria (41.6 percent). A further 4.2 percent of foreign workers
commuted from Germany and other countries. The average unemployment rate
in 2017 was around 1.9 percent. The share of employment in the
industrial and manufacturing sector was very high in 2019 at 36.9
percent. 52.5 percent of employees worked in general services, and 9.7
percent of Liechtenstein jobs were in the financial services sector,
which contributed 13.3 percent to Liechtenstein's gross value added in
2019.
Tourism is less important than the other economic sectors.
Nevertheless, Liechtenstein recorded over 80,000 guest arrivals and over
150,000 overnight stays in 2017. The most important holiday resort is
Malbun, which attracts numerous guests in both winter and summer.
As of December 31, 2016, 245 people were employed in the agriculture,
forestry and fishing sector in Liechtenstein, which corresponded to 0.7
percent of all employed people.
Agriculture: In 2016, there were
102 recognized agricultural businesses in Liechtenstein, which
cultivated 3,592 hectares of agricultural land, which corresponded to an
average business size of 32.2 hectares. 24 of the businesses were active
in the mountain zone. 37.3 percent of the agricultural businesses with a
total area of 1,366 hectares produced according to the guidelines of
organic farming. Almost 60 percent of the agricultural land is used as
permanent grassland, the remaining land as arable land and special
crops. The majority of agricultural businesses specialize in animal
husbandry; in 2016, 5,812 cattle were kept in Liechtenstein, including
2,227 dairy cows, 155 horses, 3,633 sheep, 196 goats, 1,789 pigs and
around 12,262 chickens.
Winegrowing: The north-south facing Rhine
Valley has a mild climate due to the influence of the foehn, which
enables the cultivation of high-quality wines. More than 100 part-time
winegrowers produce around 1,000 hectoliters of wine annually on 25
hectares of vineyards. The princely family has owned most of the
vineyards since time immemorial. The preferred varieties include Pinot
Noir and Müller-Thurgau.
Forestry: Liechtenstein has a forest
area of 6,682 hectares with an average wood stock of 409 cubic metres
per hectare. Around 29,000 cubic metres of wood are used in
Liechtenstein's forests every year.
Hunting: Hunting in
Liechtenstein is organised in a hunting district system and is the
responsibility of the state. A referendum in 1961, which was successful
at the ballot box and wanted to link the subjective right to hunt to
land ownership, following the example of Austria and Germany, ultimately
failed due to the refusal of Prince Franz Josef II to sanction the law.
37.9 percent of the people employed in Liechtenstein in 2016 worked
in industry and commerce. Compared to the other Central European
countries (especially Switzerland, Germany and Austria, each with around
25 percent), this proportion is very high. Liechtenstein's industry is
strongly export-oriented due to its small domestic market. In 2016,
products worth around 3,355 million Swiss francs were exported all over
the world. This does not include the considerable exports to
Switzerland, as no official statistical data on trade with Switzerland
is collected due to the customs agreement.
Many companies are
active in mechanical engineering and the food sector and often have
additional locations abroad. Important industrial companies that come
from Liechtenstein include Neutrik, Hilti AG, ThyssenKrupp Presta AG,
Hoval AG, Hilcona AG, the Ospelt Group, Ivoclar Vivadent AG and OC
Oerlikon Balzers. Almost all of the country's milk is processed by
Milchhof AG.
From 1947 to 1970, Contina AG in Mauren, which was
founded specifically for this purpose, produced the then groundbreaking
mechanical calculator Curta in a total of 140,000 units.
Liechtenstein's energy supply is largely dependent on foreign countries. The domestic power plants Lawena and Samina were only able to cover around 20 percent of electricity needs in 2007. Due to electricity imports, more than 50 percent of the electrical energy consumed in Liechtenstein in 2004 came from nuclear power. In 2006, petrol and diesel covered around a quarter and heating oil a fifth of total energy consumption. Deliveries from the Liechtenstein gas supply reached almost 30 percent of total energy consumption in 2006.
Of the people employed in Liechtenstein in 2016, 61.4 percent earned
their living by providing services. A large proportion of the employed
work in public administration, education, health care and the financial
services sector.
In contrast to most developed countries, no
"tertiarization" (service society) can be observed in Liechtenstein:
Even if the share of employment in the industrial and goods-producing
sectors tends to decrease, the average for 2016 was a very high 43
percent, followed by general services with 40 percent, financial
services with 16 percent and agriculture with 1 percent. In absolute
terms, employment in the industrial sector is increasing (13,568
full-time equivalents on average in 2016). The employment dynamics in
the financial services sector have noticeably decreased since 2009, in
contrast to general services.
In 1937, a ban on department stores
was introduced to protect local businesses after it became known that
Migros was planning to open a branch in Vaduz. The ban failed to achieve
its goal because Liechtensteiners went shopping in neighboring
countries. As a result, it was lifted in 1969. Since then, Swiss retail
companies such as Coop and Migros have dominated the Liechtenstein
market.
As part of the financial services sector, Liechtenstein banks are an
important part of the Liechtenstein economy. They specialize primarily
in managing the assets of foreign private customers and institutional
investors and are heavily dependent on the trust sector in this regard.
Liechtenstein's first bank, today's Liechtensteinische Landesbank (LLB),
was founded in 1861 to cover the savings and credit needs of the small
farming and artisan population. The LLB now has the character of a
universal bank and can best be compared to a Swiss cantonal bank. The
LGT Bank in Liechtenstein, founded in 1920 and taken over by the
Princely House of Liechtenstein in 1930, focused from the outset on
managing foreign assets. The Verwaltungs- und Privat-Bank (VP Bank),
founded in 1956, is also closely linked to the trust sector.
Since the 1950s, the banking sector has grown and the number of jobs has
multiplied. The lack of bank clerks was recruited in Austria and
especially in Switzerland. Land prices rose and the industrial sector
suffered from the high wages set by the banks. Critics linked the
Liechtenstein financial center with tax evasion and money laundering.
The banking and financial sector is of great importance for state
revenues and the national economy. The financial crisis of 2007 led to a
decline in client assets from 171 to 121 billion Swiss francs in 2008.
Liechtenstein trustees primarily manage foreign-owned holding and
domiciliary companies, so-called letterbox companies. They work closely
with Liechtenstein and Swiss banks. The trust sector is an important
branch of the Liechtenstein economy and an important employer.
Although travellers passed through Liechtenstein early on, the heyday
of tourism in the principality began in the mid-19th century after
Liechtenstein was connected to the European railway network in 1872 and
the subsequent construction of so-called (air) health resorts.
In
1909, the Liechtenstein section of the German-Austrian Alpine
Association was founded to support the emerging hiking tourism. After
the global economic crisis, the Swiss replaced the Germans as the most
important group of visitors.
As a result of increasing
prosperity, the spread of statutory holiday entitlement and cars, and
the improvement of the general infrastructure, there was a strong
increase in the number of visitors after the Second World War. The
change from summer to winter tourism began in the early 1960s with the
construction of ski lifts and hotels in the Malbuntal.
At that
time, there was mainly recreational, hiking and skiing tourism and the
region also benefited from day trips and business traffic. From the
1950s onwards, the average length of stay fell to less than two nights
due to short trips and business tourism and has stagnated since then.
European tours by bus, especially by Asian travellers, have been
stopping in Liechtenstein more frequently for some time. Tourism has
never been a major factor in the economy due to the limited cultural and
scenic potential; only 3 percent of employees worked in this sector in
2007.
The first tourism association for Liechtenstein, which also
covered Vorarlberg, was founded in 1900 and initiated the promotion of
tourism in the principality. In 1952 Liechtenstein joined the Northeast
Swiss Transport Association and in 1964 the Swiss Transport Office
(later "Switzerland Tourism"). The first "Tourism Act" came into force
in 1944 and was aimed at promoting tourism and collecting taxes. In
2000, tourism promotion was transferred to the public institution
"Liechtenstein Tourism".
In 2017, there was an increase in
arrivals of 14.7 percent and in overnight stays of 16.3 percent compared
to the previous year.
As part of the "300 Years of the
Principality of Liechtenstein" anniversary, the 75-kilometer-long
Liechtenstein Trail hiking route was reopened in May 2019.
Information and telecommunications industry
Although the principality
is linked to Switzerland by post, it has an independent post office
(Liechtensteinische Post AG), launches its own stamps and has its own
telephone area code (+423).
From 1852 to 1921, Liechtenstein's
telecommunications system was provided by Austria as part of the
"Customs and Tax Union" until the principality took over itself. The
Liechtenstein public telephone network was put into operation on
November 15, 1898 and at that time included two connections for the
government and 14 publicly operated telephone stations that enabled
telegrams and phonograms.
The first postal agreement between
Austria and Liechtenstein came into force on October 4, 1911, but was
terminated together with the customs agreement in 1919 and 1920 as part
of the foreign policy shift away from Austria and towards Switzerland.
On October 20, 1951, Liechtenstein was the first country in the
world to put a fully automated telephone network into operation. Mobile
communications were launched in 1978 and the Internet in 1992.
In
1963, the principality joined the International Telecommunication Union
and the Conference of European Postal and Telecommunications
Administrations. Liechtenstein joined Intelsat in 1973 and Eutelsat in
1987.
In 1998, the country had the basic fixed network and a
telecommunications network built by awarding concessions to (partially)
privatized companies and founding LTN Liechtenstein Telenet AG. In 2000,
concessions in the mobile communications sector were awarded to
international companies.
In 2016, there were around 16,600
landline telephone connections in Liechtenstein and around 43,900 mobile
phones. In 2022, 96.8 percent of Liechtenstein's inhabitants used the
Internet.
The most important newspapers are the Liechtensteiner Vaterland and
the Liechtensteiner Volksblatt. The two daily newspapers have been
closely linked to a political group since the parties were founded in
1918. Today's Liechtensteiner Vaterland is the unofficial party organ of
the Fatherland Union (VU), while the Liechtensteiner Volksblatt is
closely linked to the Progressive Citizens' Party (FBP). The two daily
newspapers have a high reach compared to other countries:
The low
diversity of the Liechtenstein media and the press's ties to political
parties lead to a lack of independent reporting. The two daily
newspapers have opened up to a limited extent since the 1990s and print
letters to the editor and forum contributions largely unfiltered. Since
the Media Promotion Act came into force in 2000, the press has benefited
from state funding designed to improve quality.
Several magazines
are dedicated to the culture, customs and history of Liechtenstein. The
magazine EinTracht, published from 1991 to 2012, was dedicated to the
preservation of local traditions and customs, and the Balzner
Neujahrsblätter have been reporting annually since 1995 on the history,
culture, society, nature and economy of Balzers.
The local private broadcaster Radio L became the most listened to radio station in Liechtenstein. The state-funded Liechtenstein Broadcasting Company was founded to replace Radio L, which was struggling with financial problems. It has operated the public broadcaster Radio Liechtenstein since 2004.
Due to the very limited number of Liechtenstein television stations, consumption is concentrated on foreign programs. The small Liechtenstein private broadcaster 1 FL TV has been broadcasting news about Liechtenstein and the neighboring regions since 2008. The national channel and, in most communities, the individual community channels with continuous text also serve to inform the population. The national channel is managed by the Information and Communication Department of the Ministry of Presidential Affairs and Finance.
The Liechtenstein road network comprises 130 kilometers of country
roads (including alpine and freight roads) and around 500 kilometers of
municipal roads. Liechtenstein itself does not have any motorways, but
the Swiss A13 runs along the left bank of the Rhine in the immediate
vicinity of the Liechtenstein border. It has five exits to the
Liechtenstein towns on the Rhine. The road networks of Switzerland,
Austria and Liechtenstein are generally closely linked.
In
general (with a few exceptions), the same road traffic regulations apply
as in Switzerland. The Liechtenstein license plates (vehicle license
plates) have a Swiss design in terms of fonts and layout. Like the Swiss
military license plates, the Liechtenstein plates have white characters
on a black background.
The number of motor vehicles has increased significantly in recent decades. Inadequate spatial planning led to large building zones, which encouraged urban sprawl and private transport in Liechtenstein. The increasing number of commuters from Switzerland and Austria led to further growth in traffic. In 2001, 16,000 vehicles travelled the Nendeln-Bendern route every day and 16,400 passed through Vaduz. The ever-increasing traffic in Liechtenstein led to calls to reduce private motorised transport.
The Rhine Valley is well suited to cycling. To promote environmentally friendly transport, the government subsidised e-bikes from 2002 to 2010 and purchased service bicycles for the state administration in 2008. Liechtenstein is involved in the SchweizMobil project, a network for slow traffic, particularly for leisure and tourism. Cycle route no. 35 leads from Sargans through the principality to Feldkirch and along the Ill towards Altstätten.
Public transport is very well developed in Liechtenstein and all eleven municipalities in the principality can be reached easily. The most important form of public transport are the yellow-green ("lime") buses of the company Verkehrsbetrieb LIECHTENSTEINmobil (LIEmobil for short). 15 lines run through the Liechtenstein communities and also connect the SBB train stations Sargans and Buchs as well as the Swiss community of Sevelen and the Austrian city of Feldkirch with Liechtenstein. In addition, bus line 70 of the Vorarlberg transport association runs between Schaan, Feldkirch and Klaus in the Vorarlberg Vorderland several times a day at times that are adapted to the shift work of the large companies.
The only railway line that runs through Liechtenstein is the
Feldkirch (Austria) – Buchs (Switzerland) railway line, which is
electrified at 15 kV 16.7 Hertz and is owned and operated by the
Austrian Federal Railways (ÖBB). On the 9.5-kilometer-long route within
the country, regional trains stop at the three stations Forst-Hilti,
Nendeln and Schaan-Vaduz. International trains also run from
Vienna/Salzburg to Zurich on this route (e.g. the Railjet) and do not
stop on Liechtenstein territory.
The S-Bahn FL.A.CH project was
intended to expand the range of regional transport on the
Feldkirch–Buchs railway line by the end of 2015. One important goal is
to encourage commuters from Austria to Liechtenstein to switch to the
train. A half-hourly service is planned during peak hours. This in turn
requires a double-track expansion in the Tisis-Nendeln area. During the
negotiations, disagreements with Austria on financial issues arose. In
March 2015, the government took note of the changed starting position
for the financing of the FL.A.CH S-Bahn project. Due to the open
questions, the commitment credit with Liechtenstein's share of the
project costs could not be dealt with in the state parliament as
planned. In April 2020, Liechtenstein, Austria and the ÖBB reached
agreement on the controversial financing key. The population of the
principality refused to finance the project in a referendum on August
30, 2020.
The railway line was - as it is operated by the ÖBB -
in the foreign section of the Swiss timetable on field 5320 until 2011.
The railway line was also included in the ÖBB timetable as long as it
was published.
There are three chairlifts and a drag lift in Malbun.
There is no commercial airport in Liechtenstein itself, but there is
a privately operated helipad in Balzers. As in Austria and Switzerland,
landings in Liechtenstein are only permitted at official landing sites.
The nearest commercial airport with scheduled flights, 50 km north of
Vaduz, is St. Gallen-Altenrhein Airport in Thal SG in Switzerland.
Friedrichshafen Airport is around 90 kilometers and Zurich Airport
around 115 kilometers from Vaduz.
The Airbus 340-300 of Edelweiss
Air (formerly Swiss) with the registration HB-JMF was christened the
Principality of Liechtenstein in 2008.
Until the 19th century, the Alpine Rhine was a winding river that
regularly flooded the Rhine valley. At that time, it had 23 water
outlets on its right bank. Today, the river is almost entirely protected
by flood protection dams and banks secured against block throw. Along
the Liechtenstein border, the width of the bed is a constant 100 metres.
The number of feeder waters on the right bank was reduced to six,
including the Liechtenstein inland canal. The construction led to an
impoverishment of the landscape and a decrease in biodiversity. They
could not prevent the Rhine from flooding in Liechtenstein in 1927 after
the railway bridge over the Rhine was blocked.
Liechtenstein had
a high proportion of natural wetlands due to the reed beds until the
middle of the 20th century. The rise of the Rhine bed since the end of
the 18th century led to additional waterlogging of the reed beds. In
order to gain cultivated land, artificial drainage was used. The
Liechtenstein inland canal was built, the ash trees were regulated and
drains were laid. The drainage, in combination with other factors, led
to the subsidence of the peat soil and the extensive destruction of the
natural reed beds.
In 2019, the Liechtenstein fire brigade was made up of around 600 volunteer firefighters, who work in 15 fire stations and fire houses, which have 13 fire engines and three turntable ladders or telescopic masts. The proportion of women is four percent. 50 children and young people are organized in the youth fire brigades. The Liechtenstein fire brigades were called out to 49 fire operations in the same year. The Liechtenstein Fire Brigade Association represents the fire brigades in the World Fire Brigade Federation CTIF.