The Principality of Liechtenstein –
Encounter with a Small State
The Principality of Liechtenstein –
Encounter with a Small State
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Editor
Government Spokesperson’s Office
Press and Information Office
Conzept, realization, documentation
Dr. Gerlinde Manz-Christ
Text
Günther Meier
Dr. Gerlinde Manz-Christ
Statistical Data
Office of Economic Affairs
Liechtenstein Chamber of Commerce and Industry
Liechtenstein Bankers Association
Design
Adverta AG, Vaduz
Photos
Close up AG, Triesen
Photographs courtesy of:
Liechtenstein Press and Information Office
Liechtenstein Tourism
Liechtenstein Chamber of Commerce and Industry
various Liechtenstein enterprises, organizations and individuals
Print
BVD Druck+Verlag AG, Schaan
© Government Spokesperson’s Office, Vaduz, 2009
The Principality of Liechtenstein –
Encounter with a Small State
CONTENTS
WHAT YOU SHOULD REMEMBER
ABOUT LIECHTENSTEIN
4
DID YOU KNOW THAT…
6
FACTS AND FIGURES
10
History
12
Geography
19
People
22
PRINCELY HOUSE
26
SYSTEM OF STATE
32
Structure of the state
34
Municipalities
36
NETWORKED SMALL STATE
42
Foreign policy
44
Diplomatic representations
47
EDUCATIONAL LOCATION
48
CONTENTS
BUSINESS LOCATION
52
Regulatory environment
54
State budget
55
Industry
57
Financial center
58
Trades
60
Agriculture and forestry
62
VACATION, RECREATION, SPORTS
64
Landscape
66
Dining
68
Culture
71
Sports
77
NATIONAL IDENTITY
84
«Liechtensteinisch»
84
Coats of arms and colors
86
The Liechtenstein brand
88
National anthem
90
INDEX
92
WHAT YOU SHOULD REMEMBER ABOUT LIECHTENSTEIN
4 |
FL – «Fürstentum Liechtenstein» (Principality of Liechtenstein)
has traditionally been the abbreviation for the country. Modern
times are unseating this short form as well. The «Liechtenstein
brand» has introduced the abbreviation LI, and international
sporting events use LIE. On the Internet, the .li domain has prevailed.
You can pay in euros and dollars in Liechtenstein. The official
currency, however, is the Swiss franc Liechtenstein already introduced Swiss currency as the official means of payment in
1924. But only in 1981 did Liechtenstein and Switzerland sign
a Currency Treaty.
Liechtenstein is a true landlocked country, with neither an
airport nor a seaport. It borders Switzerland and Austria. The
Principality has a total of 76 kilometers (47.2 miles) of borders,
41.1 kilometers (25.5 miles) of which are with Switzerland and
34.9 kilometers (21.7 miles) of which are with Austria.
Over 30 large industrial enterprises employ about 8,000 people
in Liechtenstein. But Liechtenstein industry is considerably larger abroad: At the end of 2007, 178 establishments abroad employed 33,580 people. Liechtensteins industry maintains 111
establishments in Europe, 25 in the Americas, 37 in Asia, four
in Australia, and one in Africa.
The people of Liechtenstein love Tüarka-Rebel as their national
dish and like to eat Käsknöpfle. But they are also not averse to
gourmet dining. The Gault Millau 2008 restaurant guide
awarded a high number of points to no fewer than five restaurants on the 160 square kilometers (62 square miles) of
Liechtenstein territory.
The Romans
brought wine to
the Liechtenstein
region
Liechtenstein is a competent financial center and an interesting
educational location. Four institutions of higher learning offer
education, training, and research to students from Liechtenstein
and abroad.
The people of Liechtenstein love their clubs and associations.
Clubs and associations belong to a village the way trees belong
to a forest. Countless clubs and associations have been founded since the right of association was enshrined in the Constitution in 1862. One of the first was the Vaduz Readers' Club,
followed by drama associations and the Agricultural Association
in 1885, which for many years had the most members. Approximately 600 clubs and associations exist today. The Historical
Society for the Principality of Liechtenstein has demonstrated
its iron discipline since 1901, issuing its highly readable
Yearbook each year without fail.
The Romans brought wine to the Liechtenstein region. At the
end of the 19th century, wine was one of the main export products. Grape diseases and economic and social changes diminished the winegrowing areas. In the last third
of the 20th century, several smaller vineyards
have popped up around the Hofkellerei of the
Reigning Prince of Liechtenstein. Hardly any
village is without a vineyard. Even in the Walser
village of Triesenberg, 800 meters (2,625 feet)
above sea level, a winegrowing trial has been
initiated successfully.
| 5
DID YOU KNOW THAT…
…15,000 people in Liechtenstein are members of a sports
club?
That corresponds to 45% of the population. The Liechtenstein
Soccer Association and the Liechtenstein Ski Association are the
largest sports associations in Liechtenstein with 2,700 and 2,500
members, respectively. The people of Liechtenstein love sports.
The state and the municipalities make generous sports facilities
available to the public. The many sports clubs are joined together into a total of 42 sports federations, which in turn are under
the umbrella of the Olympic Sports Federation.
…the industrial member companies of the Liechtenstein
Chamber of Commerce and Industry invested 316 million
Swiss francs in staff and material expenditures for research
and development in 2007?
That corresponds to a share of more than 7% of Liechtenstein's
gross domestic product. Or in other words: 8,770 Swiss francs
per capita are spent on research and development in Liechtenstein each year. This quota exceeds the quotas of all OECD
countries, which average approximately 2.3%. The main export
product of Liechtenstein is therefore research-intensive, innovative high technology. Many Liechtenstein companies are world
market leaders in their respective niches.
…the consolidated balance sheet total of the 15 Liechtenstein
banks amounted to approximately 50 billion Swiss francs as
of the end of 2007?
That corresponds to a medium-size Swiss bank. Roughly 14%
of all employees in Liechtenstein work in the financial services
sector. This sector generates about 30% of GDP.
| 7
DID YOU KNOW THAT...
8 |
…there is a Liechtenstein Institute at renowned Princeton
University?
The Liechtenstein Institute at Princeton University promotes
research, publishing, teaching, and private diplomacy in the
areas of state, sovereignty, and self-determination. The Liechtenstein Colloquium on European and International Affairs has
hosted private diplomatic conferences on Southeast Europe,
Kosovo, and Afghanistan since 1980. Some of the outcomes of
the Liechtenstein Colloquium are taken up by the UN General
Assembly and Security Council and regularly result in various
publications.
…the art museum in Liechtenstein was funded by private
donors and given to the state?
Since the late 1960's, the State Art Collection was housed on
the premises of the English Building in Vaduz. In December
1996, Parliament approved a proposal to build a new art
museum in Liechtenstein. To a large extent, the museum was
funded by private donors in Liechtenstein. Development of the
building was under the patronage of the Foundation for the
Construction of an Art Museum, domiciled in Vaduz, which gave
the museum to the state in 2000, ready to use. The Kunstmuseum
Liechtenstein presents exhibitions from the Collections of the
Reigning Prince of Liechtenstein and rotating exhibits showcasing the art of the 19th and 20th centuries. Rooms are also
available for appropriate presentation of works from the State
Art Collection.
Principality of Liechtenstein, short and sweet
Area
160 square kilometers (62 square miles)
Population
35,356 (2007)
Currency
Swiss franc
Official language
German
Colloquial language various local dialects
The Kunstmuseum
Liechtenstein shows
exhibitions from the
Princely Collections
and rotating exhibits
of art from the 19th
and 20th centuries
National Day
15 August
System of state
constitutional hereditary monarchy on a
democratic and parliamentary basis
Head of State
Reigning Prince Hans-Adam II
In 2004, Reigning Prince Hans-Adam II delegated
government affairs to Hereditary Prince Alois as his
Representative
Government
Collegial Government with five Ministers
Parliament
25 Members with four-year legislative terms
Capital
Vaduz
Municipalities
11
Upper Country
Oberland: Vaduz, Schaan, Triesen,
Triesenberg, Balzers, Planken
Lower Country
Unterland: Eschen, Mauren, Gamprin, Ruggell,
Schellenberg
| 9
FACTS AND FIGURES
10 |
In 2006, the Principality of Liechtenstein is celebrating
«200 Years of Sovereignty». In 1806, Liechtenstein became
a member of the Confederation of the Rhine and obtained
sovereignty, which it has kept until today. The Principality
of Liechtenstein was founded much earlier. The Princes
of Liechtenstein acquired the Lordship of Schellenberg in
1699 and the County of Vaduz in 1712. Emperor Karl VI
united the two territories and elevated them to an Imperial
Principality by the name of Liechtenstein in 1719.
Napoleon was the
protector of the
Confederation, which
was signed by 16 princes
from southwestern
Germany on 12 July 1806
FACTS AND FIGURES
12 |
History
The history of Liechtenstein as a principality dates back to
23 January 1719, when Emperor Karl VI united the Lordship of
Schellenberg and the County of Vaduz. The Emperor elevated
the united territory to an Imperial Principality. The country
received the name of Liechtenstein, the name of the Princely
House. The Principality of Liechtenstein became one of the 350
states of the Holy Roman Empire of the German Nation.
Reigning Prince Johann Adam I had acquired the Lordship
of Schellenberg, which enjoyed imperial immediacy, from the
indebted Counts of Hohenems in 1699. The purpose of the
purchase was to obtain a seat and voting rights in the Imperial
Council of Princes. Possession of territory with imperial
immediacy was a prerequisite for admission to this princely
body. In 1712, Johann Adam I also acquired the County of Vaduz,
since the territory of the Lordship of Schellenberg was too small
for admission to the Council of Princes. Thanks to their stature
and the elevation of the two territories to an Imperial Principality,
the Princes of Liechtenstein attained the admission to the Council
of Princes to which they had long aspired.
The history of the country extends even further back, however. Excavations show that the territory was inhabited during
the Neolithic Age. The country is situated at the
intersection of the north-south axis through the
Alps and the east-west migrations. The freestanding mountains in the Rhine Valley, such
as the fortress hill of Balzers in the south and
the Eschnerberg in the north, have been inhabited continuously since the Neolithic Age. Various village names indicate that the Celts settled
in what is now Liechtenstein, followed by the
Rhaetians. When the Romans subjugated the
The fortress ruin in
Schellenberg
| 13
Rhaetians in 15 B.C.E., the territory became part of the Province
of Rhaetia. The valley area took on particular importance, since
the Romans built their military and trading road there. A Roman
fortress built as a fortification against the Alemanni in the 4th
century and other finds such as the ruins of Roman villas and
coins testify to the relatively high population density at the time.
After the Romans had pulled back in the 5th century, the
Alemanni took over as settlers.
Pursuant to the imperial reform undertaken by Charlemagne,
counties were established in Rhaetia. The division of an estate
resulted in the County of Vaduz in 1342. The new lord Count
Hartmann III moved into Vaduz Castle, which became the resiVaduz Castle
originated as a
medieval fortress
and has been
expanded several
times
dence of the lords. The granting of imperial immediacy, deeded by King Wenceslas in 1379, was of crucial importance to the
subsequent history of the territory. The northern region of the
country, now called Unterland (Lower Country), was owned in
part by the Lords of Schellenberg. In the first half of the 15th
century, the Barons of Brandis, who had come from the Bernese
Oberland, acquired both territories. Three wars in the 15th
century – the Appenzell War, the Old Zurich War, and the
Swabian War – plunged the two territories into misery.
FACTS AND FIGURES
14 |
The Barons of Brandis were succeeded by the Counts of Sulz in
the 16th century and the Counts of Hohenems in the 17th
century, whose debts finally forced them to sell Vaduz and
Schellenberg to the Princes of Liechtenstein.
The country suffered during the Napoleonic Wars. Revolutionary France wanted to spread its ideals of freedom, equality, and brotherhood throughout all of Europe. The German
princes, whose absolutism was under threat, fought the French.
Liechtenstein was occupied by imperial troops in 1794, and in
1799 the French invaded and occupied the city of Feldkirch; in
the same year, remainders of the Russian army
under General Suvorov also passed through
the country. The population, which was poor
anyway, suffered every time. After the Peace
of Pressburg in 1805, Napoleon compelled
several German princes to withdraw from the
German Empire and to found the Confederation of the Rhine. On 12 July 1806, 15 princes
signed the Treaty of the Confederation, bringing the old German Empire to an end. The
founding members of the Confederation of the
Rhine included Reigning Prince Johann I of
Liechtenstein. With their acceptance into the
Confederation, the princes received sovereignty
for their territory. Although Reigning Prince
Johann I – as an Austrian general – did not
sign the Treaty of the Confederation, Liechtenstein formally received state sovereignty, which
has remained unchanged until today.
At the Congress of Vienna in 1815, the sovereignty of the German princes was recognized.
The newly created German Confederation encompassed 39 autonomous states, including
the Principality of Liechtenstein. When the
| 15
Liechtenstein's military
As a small country, Liechtenstein was never able to defend itself militarily.
In the old German Empire, Liechtenstein was however required to maintain a troop contingent. A contingent of 40 men had to be supplied
during the time of Napoleon's Confederation of the Rhine. In the German
Confederation, the troops were increased to 80 soldiers. War broke out
in 1866 due to the rivalry between Prussia and Austria for dominance in
the German Confederation. Reigning Prince Johann II supplied soldiers
to the Austrian Emperor in his fight against Italy. The Reigning Prince
wanted to prevent Liechtenstein soldiers from fighting «German brothers».
On 18 July 1866, the Liechtenstein military moved out for guard duty on
the Stilfser Joch and returned on 4 September without any contact with
the enemy. In 1868, after dissolution of the German Confederation, the
Liechtenstein military was abolished. The military had always been an
unpopular institution in Liechtenstein. Nevertheless, about 1,000
Liechtenstein men had served as mercenaries in the service of foreign
states between 1650 and 1850. Generally, they served in the regiments
of Graubünden and fought for France, Austria, and the Netherlands.
Many died on foreign battlefields: 176 men are listed in the parish records
who died in the service of foreign wars between 1674 and 1857.
Reigning Prince
Johann I of Liechtenstein
(1760 – 1836)
German Confederation collapsed in 1866 due to the war between
Prussia and Austria, Liechtenstein maintained its independence
Napoleon in
conversation with
Johann I
thanks to its marginal geographical location.
The Confederation of the Rhine had given the Reigning
Prince all rights of sovereignty, so that absolutism also established itself in the Principality. Reigning Prince Johann I believed
that the political structure and the economic development of
Liechtenstein was no longer in keeping with the times. Without
taking into account the opinion and the opposition of the people,
he initiated reforms. In 1805, general compulsory schooling was
introduced. The Reigning Prince suspended the Constitution in
1808 by means of a decree. He launched a finance reform and
FACTS AND FIGURES
16 |
a land reform. As part of modernization, new laws such as the
General Civil Code and the land register were established after
1808, and serfdom was abolished. Admission to the German
Confederation entailed the obligation to issue an «estate
constitution». Reigning Prince Johann I instituted an estate
Peter Kaiser
(1793 – 1864)
constitution in 1818. Since Liechtenstein had no nobility or
urban bourgeoisie, however, the «estates» only consisted of the
clergy and the mayors and treasurers of the townships. The
assembly, which as a rule only met once a year, was called
Landtag – a term that is still used today for Parliament.
Important dates in the history of Liechtenstein
1699
Reigning Prince Johann Adam I acquires the
Lordship of Schellenberg
1712
he also purchases the County of Vaduz from the
Counts of Hohenems
1719
Emperor Karl VI unites both territories and
elevates them to an Imperial Principality
1806
admission to the Confederation of the Rhine:
Liechtenstein obtains sovereignty
1815
membership in the German Confederation
1852
Customs Treaty with Austria
1862
Constitution
1868
abolition of the Liechtenstein military
1919
cancellation of the Customs Treaty with Austria,
negotiations with Switzerland
1921
new Constitution
1923
Customs Treaty with Switzerland
1924
introduction of the Swiss franc as official currency
1975
participating state in the CSCE
1978
accession to the Council of Europe
1990
accession to the United Nations
1991
accession to EFTA
1995
accession to the EEA and the WTO
«The Rhine near Vaduz»,
watercolor from 1833
by Johann Jakob
Schmidt (Collections of
the Reigning Prince of
Liechtenstein)
The revolutionary year of 1848 also left its mark
on Liechtenstein. The representatives of the
estates and the townships petitioned the Reigning Prince for a new constitution, free election
of the popular representatives, and the right
to participate in legislation. The people, who
did not have any political rights, called for the
abolition of feudal duties and the introduction
of democratic rights. Reigning Prince Alois II
made far-reaching concessions, but did not
fully meet the expectations of the people. The
popular movement ultimately resulted in the
abolition of compulsory labor and feudal
tributes. The term Landvogt for the highest
Princely official was changed to Landesverweser. A constitutional commission with the
mandate to elaborate a new constitution was
founded. When the German National Assembly
convened in Frankfurt in May 1848 to draft a
constitution, the people of Liechtenstein also
hoped for more freedom and basic rights. The historian Peter
Kaiser also took part in the Frankfurt Assembly as the
representative of Liechtenstein. The efforts by the National
Assembly to establish a unified German national state failed. The
return to absolutism in Austria also had an impact on
Liechtenstein. Reigning Prince Alois II rescinded the concessions
he had made in the «temporary constitution» of 1849 and reinstated the absolutist constitution of 1818. This return to absolutism paralyzed development.
| 17
FACTS AND FIGURES
18 |
Economically, Liechtenstein was isolated, since customs barriers
everywhere impeded economic exchange. The Austrian origins
of the Princes governing Liechtenstein from Vienna made it
expedient to conclude a Customs Treaty with Austria in 1852.
The provisions of the treaty, which went beyond a pure free trade
agreement, secured income for the state. Liechtenstein joined
the Austrian currency system. The agreement also laid the
cornerstone for further economic development in the second half
of the 19th century. Trades evolved, the first industrial companies were established, and the Spar- and Leihkasse was chartered as the first bank in 1861.
Liechtenstein joined international transit routes
thanks to the Feldkirch-Buchs railway line,
which was inaugurated by the Austrian Federal
Railways in 1872. Austrian postal authorities
had already organized postal services since
1817. In 1911, a postal agreement was concluded that expressly allowed Liechtenstein to
issue its own stamps.
The First World War had a significant impact on the history of the small Principality.
The Austro-Hungarian double monarchy collapsed in 1918, and the smaller customs, economic, and currency partner lost its economic
support. Liechtenstein adjusted course and turned to its neighbor to the west, Switzerland. Already in 1919, an agreement on
diplomatic and consular representation abroad was concluded,
and the Postal Treaty followed in 1920. The most important
treaty with Switzerland, the Customs Treaty, was signed in 1923
and entered into force on 1 January 1924. The inclusion of
Liechtenstein in the Swiss economic area was followed in 1924
by the introduction of the Swiss franc as the official currency in
Liechtenstein.
Welcome to the
Principality of
Liechtenstein!
| 19
Geography
The Principality of Liechtenstein is situated in the heart of
Europe. It is a doubly landlocked country, whose inhabitants
must cross through two other countries to reach the sea. Paris
in the west, Vienna in the east, Hamburg in the north, and Rome
in the south are approximately equidistant from Vaduz, Liechtenstein's capital without a train station or airport.
Liechtenstein is
situated entirely in
the Alpine massif
Liechtenstein is one of the four smallest countries in Europe.
The area of Liechtenstein is 160 square kilometers (62 square
miles). Liechtenstein borders Switzerland to the south and the
west and Austria to the east and the north. The total length of
the borders is 76 kilometers (47.2 miles). The length of the
country along the Rhine is 24.5 kilometers (15.2 miles), and the
width is 12.3 kilometers (7.6 miles).
Liechtenstein is the only country that is situated entirely in
the Alpine massif. Its area constitutes approximately 1% of the
total Alpine region.
The country is geologically unique, since the Western and
Eastern Alps meet here. Researchers encounter a rich palette
The Pfälzer Cabin
is a popular hiking
destination
FACTS AND FIGURES
20 |
of types of rock, the distribution of which varies considerably
despite the short distances: The Three Sisters Massif consists
of different layers of rock than the Falknis Range. The Fläscherberg in the south and the Eschnerberg in the north jut out of
the Rhine Valley as part of the Helvetic nappe.
Today, the glacier moraines constitute the substratum of the
valley area and the areas of the mountain region used for alp
cultivation. The special stratification of the steep slopes and the
easy erodibility of the rock are the reasons for the detritus that
is washed from the mountains into the valley. Most of the 11
municipalities of the country are situated on this detritic cone.
Liechtenstein at a glance
Area
160 km2
(62 sq mi)
Length
24.5 km
(15.2 mi)
Width
12.3 km
(7.6 mi)
Lowest point
Ruggeller Riet
430 m (1,411 ft) above sea level
Highest point
Grauspitze
2,599 m (8,527 ft) above sea level
160 km2
(62 sq mi)
100 %
Forest areas
67 km2
26 sq mi)
42 %
Agricultural areas
55 km2
(21 sq mi)
34 %
Settlement areas
14 km2
(5 sq mi)
9%
Unproductive areas
24 km2
(9 sq mi)
15 %
Total area
Total length of border
76.0 km
(47.2 mi)
Border with Switzerland 41.1 km
(25.5 mi)
Border with Austria
(21.7 mi)
34.9 km
These rockslides characterize the landscape of
the Rhine Valley side of the mountains. For
many centuries, they represented a constant
threat for the settlements. Only in the 19th
century were the first barriers established to
reduce the steepness of the slopes and the
transport of glacial drift. Today, generous catch
basins provide a certain level of safety from
the tree trunks and masses of mud and earth cascading down
during storms or continuous rainfall.
Despite its mountainous location, Liechtenstein's climate is
considered relatively mild. Calculated over many years, the
average annual temperature is 10.6 degrees Celsius (51.1 degrees
Fahrenheit). Annual precipitation is between 1,000 and 1,100 millimeters (39.4 and 43.3 inches). Annual sunshine is between
1,500 and 1,600 hours. As a rule, there are between 150 and 170
The Fürstensteig
is no place for
vertigo
days of rainfall a year.
| 21
22 |
People
During the 20th century, especially after the Second World War,
Liechtenstein developed from a predominantly agricultural
country into a modern industrial and services state. The people
of Liechtenstein are linked with the entire world via their internationally oriented and globally networked economy.
With the exception of the Walser in the township of Triesenberg, Liechtensteiners are of Alemannic origin and, like the
people of Vorarlberg and Southern Germany,
are considered frugal and prudent in economic
affairs.
In 1815, the population of Liechtenstein
was 6,117. Only 808 people lived in Vaduz, the
capital and the largest municipality. The population then increased rapidly, growing to 8,162
by 1852. In the second half of the 19th century,
Liechtenstein also underwent an emigration
wave, lasting until about 1920. One of the main
The Walser Museum
in Triesenberg provides
insight into the traditional
life of the Walser
The Gänglisee
in Steg
reasons for emigration was the poor economic situation. The
country was not able to feed more people.
In 1852, when the population reached its largest extent in
the 19th century at 8,162, only 223 foreigners lived in Liechtenstein. The share of foreigners, which was only 2.7% at the
time, has steadily increased since then. Today, the share of
foreigners has stabilized at around one third of the resident
population. At the end of 2007, Liechtenstein had about 35,356
inhabitants, 66.4% of whom were Liechtenstein citizens and
33.6% of whom were foreigners. Several measures have been
Country and people
Population (2007 population statistics)
Total inhabitants
35,356
100.0 %
Liechtenstein citizens
23,494
66.4 %
Foreigners
11,862
33.6 %
Religions (2000 census)
Roman Catholics
78.4 %
Protestants
8.3 %
Muslims
4.8 %
Others or no data
8.5 %
Workforce (2007)
Workers in Liechtenstein
of which foreigners
Cross-border commuters
32,435
21,883
16,242
of which from Switzerland
7,958
of which from Austria
7,590
of which from Germany
of which from other countries
Cross-border commuters from Liechtenstein
645
49
1,382
| 23
FACTS AND FIGURES
24 |
taken to stabilize the share of foreigners at about one third. In
1981, unlimited Swiss immigration was restricted. The EEA
Agreement grants Liechtenstein restrictions on the free movement of persons, so that only 56 new residence permits are
granted each year. On the other hand, naturalization has become
significantly easier: Between 1970 and 2007, 6,410 foreigners
received Liechtenstein citizenship.
Liechtenstein belongs to the Alemannic linguistic region,
with the exception of the mountain village of Triesenberg. The
Walser have preserved their Walser dialect since their immigration in the 13th century. The people in the valley communities
speak an Alemannic dialect. The local dialects can be told apart:
People who speak typical dialect can be classified according to
their home village. Despite all the specific local features, there
are similarities with dialect pronunciation in the neighboring
areas of Switzerland and Vorarlberg. The common paths taken
within the region over the centuries have been preserved in part
in colloquial speech.
The Rhine Valley
floor covers
half the area of
Liechtenstein
| 25
The old Rhine Bridge
in Vaduz
PRINCELY HOUSE
26 |
The history of the House of Liechtenstein extends far
back into the Middle Ages. The Family of Liechtenstein
is one of the oldest Austrian noble families. In 1136, Hugo
of Liechtenstein was the first documented bearer of the
name. A new period of the family history was initiated in
1608 when Karl of Liechtenstein received the hereditary
title of Fürst (Reigning Prince) from the Emperor. Once
the House of Liechtenstein had attained the imperial title
of Reigning Prince, it endeavored to acquire territory with
imperial immediacy. Reigning Prince Johann Adam I
purchased the Lordship of Schellenberg, a territory with
imperial immediacy, in 1699 and added the County of
Vaduz in 1712.
Vaduz Castle is the
residence of the Reigning
Princes of Liechtenstein
PRINCELY HOUSE
28 |
The current Head of State, Reigning Prince Hans-Adam II, is the
13th Reigning Prince in the House of Liechtenstein, which has
governed the country without interruption since the purchase
of Schellenberg and Vaduz. Hans-Adam, born in 1945, is the first
Reigning Prince who grew up in the Principality of Liechtenstein
and also attended primary school here. With the death of his
father Reigning Prince Franz Josef II on 13 November 1989,
Hans-Adam, who was then Hereditary Prince, became the new
Reigning Prince and the Head of State of Liechtenstein in accordance with the hereditary succession rules. Already in 1984,
Reigning Prince Franz Josef II had appointed his successor
Hans-Adam as his Representative, mandating him to exercise
the rights of sovereignty vested in the Reigning Prince.
On 5 December 1989, the new Reigning Prince Hans-Adam
II declared to Parliament that he had assumed the government
of the country and that he would reign in accordance with the
provisions of the Constitution. Parliament
accepted this declaration in a special session.
Parliament also rendered homage at this meeting. Following the example of the homage rendered by the people to his father in 1939,
Reigning Prince Hans-Adam II swore allegiance
to the Constitution at a public homage ceremony on 15 August 1990. Together with his
father, Hereditary Prince Alois declared that
he would champion the welfare of the people
and the country. With this procedure, which
took place for the first time in the history of
Liechtenstein and the Princely House, Reigning
Prince Hans-Adam II symbolically underscored
the continuity of the monarchy as a hereditary
monarchy.
Reigning Prince
Hans-Adam II and
his family
| 29
Although Reigning Prince Franz Josef II had transferred the
exercise of his sovereign rights to Hereditary Prince Hans-Adam,
he had remained Head of State. Shortly after his ascension to
the throne, Hans-Adam II indicated that he would follow the
example of his father and entrust the Hereditary Prince with the
On 15 August 2004,
Reigning Prince
Hans-Adam II appointed
his son, Hereditary
Prince Alois, as his
Representative and
entrusted him with the
exercise of all sovereign
rights vested in the
Reigning Prince by the
Constitution
functions of the Head of State. In 2003, Reigning Prince HansAdam II announced, «My family and I believe that sickness and
death should not decide when the functions of the Head of State
should be transferred to the successor.» On National Day 2004,
the 15th of August, the transfer was effected. The Reigning
Prince declared, «Pursuant to the Constitution and effective
today, I hereby entrust my future successor His Serene Highness
Alois as my Representative with the exercise of all sovereign
rights vested in me, in preparation for his succession to the
throne.» The Reigning Prince remained Reigning Prince, but
since that declaration, Hereditary Prince Alois has administered
the affairs of state as the Head of State.
Reigning Prince Hans-Adam II had scheduled the transfer
of the affairs of state for the time after entry into force of the
revised Constitution of 1921. The people approved the constitutional amendments with a large majority on 16 March 2003.
PRINCELY HOUSE
30 |
The vote had been preceded by years of disputes concerning the
distribution of power between the Reigning Prince and the
people. The Reigning Prince mandated the Hereditary Prince
with the task of addressing questions concerning the future of
Liechtenstein. Hans-Adam II regarded the conclusion of the
constitutional debate as a prerequisite for this task. The era of
Hans-Adam II as Reigning Prince and Head of State was not only
characterized by the constitutional question, but also by foreign
policy. He was significantly involved in Liechtenstein's accession
to the United Nations and its participation in the European
integration process. Liechtenstein joined the
UN in 1990. The people approved Liechtenstein's accession to the EEA, the European
Economic Area, in 1992 and 1995.
The title of Reigning Prince was not sufficient to participate in deciding the affairs of the
Holy Roman Empire. The possession of territory with imperial immediacy was a prerequisite for a seat and voting rights in the imperial
and district councils. In 1699, Reigning Prince
Johann Adam I (1657 – 1712) saw the opportunity to purchase the Lordship of Schellenberg
from the indebted Counts of Hohenems and to
acquire an option for purchasing the County of
Vaduz. In 1712, Vaduz joined the possessions
of the Reigning Prince. Johann Adam I had paid a considerable
amount, 405,000 guilders, to purchase the two territories.
However, he did not survive long enough to see his goal realized of attaining a seat and voting rights for the House of
Liechtenstein in the Imperial Council of Princes. He died on 10
June 1712, the day after his new subjects in the County of Vaduz
rendered homage. Neither Johann Adam I as the founder of the
Principality of Liechtenstein nor some of his successors had
The courtyard of
Vaduz Castle
any first-hand knowledge of their possessions, which were
located far from their residence. Reigning Prince Alois II was
the first ruler to visit the country in 1842.
Reigning Prince Franz Josef II (1906 – 1989) was the first
Reigning Prince to move his permanent residence to Liechtenstein in 1938. Only few of the previous Reigning Princes, who
usually lived in Vienna, had regularly visited the Principality. The
father of Reigning Prince Hans-Adam II assumed the affairs of
state as Head of State on 25 July 1938, after the death of his
great-uncle Reigning Prince Franz I. The people rendered
homage to the new Reigning Prince on 30 May
1939, during a time of threat by the Third Reich.
This ceremony fulfilled a dual purpose: The
people showed an impressive commitment to
the sovereignty of the state, and the Reigning
Prince swore to uphold the Constitution and
placed the fate of the country under the protection of God. In his speeches and messages,
Reigning Prince Franz Josef II strengthened
the cohesion and resistance of the people
during the Second World War. Thanks to the
skillful policies pursued by the Reigning Prince
and the Government, the country was kept out
of the war. After the war, Reigning Prince Franz
Josef II dedicated himself to the economic and
Reigning Prince
Franz Josef II
(1906 – 1989)
social upswing of the country. During his long reign from 1938
to 1989, Liechtenstein developed into a modern industrial and
services state.
| 31
SYSTEM OF STATE
32 |
As its name indicates, the Principality of Liechtenstein is a principality, i.e., a monarchy. The Reigning
Prince is the Head of State and represents the
country vis-à-vis other states. A Government of five
Ministers elected by the Landtag – the Parliament
of Liechtenstein – and appointed by the Reigning
Prince is responsible for government affairs.
Parliament is composed of 25 Members elected by the
people every four years according to proportional
representation. The people themselves may exercise
their right of legislative and constitutional initiative
and their right of referendum to call a popular vote
on bills adopted by Parliament.
The Government
Building in Vaduz
SYSTEM OF STATE
34 |
Structure of the state
Article 2 of the Constitution lays down the special system of state
of Liechtenstein: «The Principality of Liechtenstein is a constitutional hereditary monarchy on a democratic and parliamentary basis.»
Liechtenstein is a hereditary monarchy. The Reigning Prince
as Head of State is not elected by the people, but rather, the Law
of the Princely House of Liechtenstein determines the successor to the throne. A male line of succession applies, and as a
rule, the eldest son of the Reigning Prince becomes his successor.
Liechtenstein is a constitutional hereditary monarchy. The
Reigning Prince is bound by the provisions of the Constitution
and may only exercise his right to the power of the state in
accordance with the Constitution and the laws. As Head of State,
he may conclude international treaties, which enter into force
through ratification by Parliament. The Reigning Prince may,
via the Government, issue ordinances. These include ordinances
issued under emergency powers. Previously, the right of the
Reigning Prince to issue emergency ordinances was unlimited.
Since the constitutional revision in 2003, emergency ordinances
expire after six months. Additionally, emergency ordinances
may no longer suspend the entire Constitution, but rather
the Reigning Prince may only limit individual provisions for a
specific time.
The Constitution also states that the power of the state is vested in the Reigning Prince and the people. Since the state rests
on a democratic foundation, both the people and the Reigning
Prince have specific rights. The people may influence the
conduct of state business through elections and popular votes.
Voters have the right of initiative and referendum. The people
may use an initiative to demand a new law, and they may use a
referendum to demand a popular vote on a law or financial
decision passed by Parliament. Since the constitutional amendments of 2003, the people have the possibility of withdrawing
their confidence from the Reigning Prince and the right to vote
on abolition of the monarchy.
Liechtenstein has a Parliament (Landtag) with 25 Members
Members of Parliament
voting
who are elected by the people for a term of four years. Parliament
is mandated to «represent and assert the rights and interests of
the people in relation to the Government». The main responsibility of Parliament is legislation. For a law to become valid, it
must be approved by Parliament, sanctioned by the Reigning
Prince, and countersigned by the Prime Minister. The powers
of Parliament also include the election of the Government
Ministers, who are appointed by the Reigning Prince on their
recommendation.
The Government is composed of a Prime Minister and four
other Ministers. A Deputy Prime Minister is elected from among
the four other Ministers. The Government works according to
the collegial principle. It is responsible for the National Admin-
| 35
SYSTEM OF STATE
36 |
istration. All important affairs are subject to consultation and
decision-making by the collegial Government.
In addition to Parliament as the legislative power and the
Government as the executive power, there is also a third power,
namely the judiciary. The Court of Justice adjudicates civil and
criminal matters in the first instance, the Court of Appeal in the
second instance, and the Supreme Court in the third and last
instance. The Administrative Court has jurisdiction over
administrative matters and acts as the last instance. The Constitutional Court has jurisdiction over constitutional matters.
Municipalities
Liechtenstein has 11 municipalities. These municipalities play
an important constitutional role, since article 1 already mentions
the two regions of Oberland (Upper Country) and Unterland
(Lower Country) and the names of all 11 municipalities. The
municipalities, which evolved out of the previous agricultural
village cooperatives, are not sovereign, unlike the state. However,
the municipalities exercise considerable autonomy within their
own scope of responsibilities. Municipal autonomy encompasses responsibilities such as the election of the municipal organs,
the organization of the municipality, the granting of citizenship,
and the determination of municipal taxes and
surcharges on national taxes.
Each of the 11 municipalities has its own
D
municipal organization. The voters elect a
Mayor and a Municipal Council. Citizens also
have the right of initiative and referendum at
the municipal level: The exercise of these rights
LI
F
A
CH
requires the signature of one sixth of the voters
in the municipality. The highest organ in the
I
municipality is the Municipal Assembly. Because of the growth
of the villages, municipalities have moved from conducting votes
in public at the Municipal Assembly to using secret ballots like
at the national level.
The Mayor – who is called Bürgermeister in Vaduz pursuant
to a Princely decree from the 19th century and Gemeindevorsteher in the other municipalities – is elected by a majority
vote. The Municipal Councilors, on the other hand, the number
of whom is determined by the size of the municipality, are
elected by the citizens according to proportional representation.
The Mayors meet several times a year informally to discuss
municipal affairs.
Individual municipalities have joined together into associations of common interest to realize large projects, such as water
supply and wastewater disposal. The autonomy of the municipalities is not absolute. Financial management and municipal
accounts are subject to supervision by the Government.
The municipalities levy their own taxes only to a very limited
extent, such as the dog tax. Of importance to the municipalities
are the surcharges on the national property and income taxes
and specific shares of other types of tax. A financial equalization
system compensates mountain municipalities for their topographical disadvantages.
Ruggell
Schellenberg
Gamprin Mauren
Eschen
Planken
Schaan
CH
Vaduz
Triesenberg
Triesen
Balzers
A
| 37
SYSTEM OF STATE
38 |
The Oberland region – the former County of Vaduz – encompasses six municipalities: Vaduz, Schaan, Balzers, Triesen, Triesenberg, and Planken. Oberland also constitutes the larger voting
district of Oberland, from which 15 of the 25 Members of
Parliament are elected.
VADUZ (455 meters / 1,493 feet above sea level) is the capital
of the Principality of Liechtenstein and the seat of the Government and Parliament. The Reigning Prince resides in Vaduz
Castle, which looks out over the Städtle of Vaduz. The Kunstmuseum Liechtenstein, the Liechtenstein National Museum, the
Postal Museum, and the Ski Museum are located in Vaduz.
Numerous banks and financial services enterprises are headquartered here.
SCHAAN (450 meters / 1,477 feet above sea level) is the largest
municipality by population and the industrial center of Liechtenstein. The Theater am Kirchplatz and TaKino are two cultural
institutions with regional significance.
BALZERS (472 meters / 1,549 feet above sea level), with the
neighborhoods of Balzers and Mäls, is the southernmost municipality. The townscape is dominated by Gutenberg Castle, which
belongs to the State of Liechtenstein.
TRIESEN (512 meters / 1,680 feet above sea level) is one of the
oldest settlements in Liechtenstein. Ruins of a Roman villa and
fragments of the Roman road were found here. The sunniest
addresses are situated on the slopes, and numerous industrial
enterprises and other businesses have been established on the
valley floor in recent years.
TRIESENBERG (884 meters / 2,900 feet to 2,000 meters / 6,562
The municipal coats of
arms from left to right:
Vaduz, Schaan, Balzers,
Triesen, Triesenberg,
Planken
feet above sea level) is the largest municipality by area and also
the highest. It was settled in the 13th century by Walser
mountain farmers. Even today, Walser dialect is spoken here. The
Walser Museum provides an overview of the Walser culture. The
hamlet of Gaflei is the starting point for hikes and mountain
tours. Steg and Malbun, with well-developed infrastructure for
summer and winter sports, are located behind the hilltop.
PLANKEN, the smallest municipality, is located on a sunny
terrace 786 meters (2,579 feet) above sea level. The municipality
is surrounded on all sides by forest and is predominantly residential.
St. Mamerta Chapel
in Triesen
| 39
SYSTEM OF STATE
40 |
The smaller region of Unterland, corresponding to the old
Lordship of Schellenberg, encompasses five municipalities:
Eschen, Mauren, Gamprin, Ruggell, and Schellenberg.
ESCHEN (453 meters / 1,486 feet above sea level) consists of
the neighborhoods of Eschen and Nendeln. Historical buildings
include the Benefice House and the chapel on Rofenberg, built
on a medieval execution square. The foundations of a Roman
villa have been excavated in Nendeln. Eschen has a generous
industrial and business zone.
MAUREN (472 meters / 1,549 feet above sea level) consists of
the neighborhoods of Mauren and Schaanwald. The memorial
for the historian and educator Peter Kaiser (1793 – 1864), who
represented Liechtenstein at the National Assembly in the Paulskirche in Frankfurt in 1848, is located in Mauren.
GAMPRIN (472 meters / 1,549 feet above sea
level) consists of the two neighborhoods of
Bendern and Gamprin. The church hill of
Bendern was one of the earliest settlement
locations in the Rhine Valley. On 16 March 1699,
the men swore allegiance on the church hill to
the Reigning Prince of Liechtenstein, who had
just purchased the Lordship of Schellenberg.
Today, the Liechtenstein Institute is located
there.
The municipal coats of
arms from left to right:
Eschen, Mauren,
Gamprin, Ruggell,
Schellenberg
| 41
RUGGELL (433 meters / 1,421 feet above sea level) is the northernmost municipality of Liechtenstein. The lowest point of the
country is located here at 430 meters (1,411 feet) above sea
level. Agriculture still plays an important role in Ruggell.
Recently, industrial companies and other businesses have
established themselves outside the center of the village.
SCHELLENBERG (626 meters / 2,054 feet above sea level) is
divided into the three neighborhoods of Vorderer, Mittlerer, and
Hinterer Schellenberg. Excavations on the ridge of the hill
testify to settlements established already during the Neolithic
Era. Two fortresses, Neu and Alt Schellenberg, were built in the
13th century and partially restored by the Historical Society. The
oldest dwelling in Liechtenstein is located in Schellenberg and
is now a museum.
Until the constitutional reform in 2003, the Constitution stated
that Liechtenstein with its 11 municipalities in the two regions
of Oberland and Unterland was «an indivisible and inalienable
whole». Reigning Prince Hans-Adam II included an amendment
Church hill in Bendern
and the Ruggeller Riet
to the revised Constitution in 2003 setting out the right of selfdetermination of the municipalities as follows: «Individual
municipalities shall be entitled to secede from
the union.» However, secession would have to
surmount relatively high obstacles. A majority
of the voters living in the municipality would
first have to decide on initiation of a secession
procedure. If secession would be linked to
joining another state and governed by an international treaty, then the municipality would
have to conduct another popular vote after
conclusion of the treaty negotiations.
NETWORKED SMALL STATE
42 |
Liechtenstein is a sovereign small state with a strong
international network and a cosmopolitan attitude, maintaining excellent relations through numerous international treaties, especially with its two neighboring countries,
Switzerland and Austria. The Principality is networked
globally through its active membership in the UN and the
WTO, the EEA and the Council of Europe, EFTA and the
OSCE. This international network is also established
through the Liechtenstein economy. Liechtenstein has a
highly developed, diversified, and research-intensive
industrial sector, almost all the products of which are
exported worldwide. The financial center has evolved
from a banking center into a financial services center
with globally operating investment undertakings and
insurances, fulfilling the highest standards with respect
to quality of services, competence, security, and diligence.
Prime Minister
Dr. Klaus Tschütscher
and the Luxembourg
Minister of Justice and Finance,
Luc Frieden
NETWORKED SMALL STATE
44 |
Foreign policy
For Liechtenstein, which has been a sovereign state since its
admission to the Confederation of the Rhine in 1806, the preservation of sovereignty is considered an essential element of its
foreign policy. A small state like Liechtenstein lacks the
political and military power to assert its interests. The small state
therefore relies on compliance with international law and the
solidarity of the international community. For this reason, the
focus of Liechtenstein foreign policy is on human rights, the
progressive development of international law, development
cooperation, and international humanitarian assistance. Within
the scope of its possibilities, Liechtenstein is engaged on behalf
of security policy and the promotion of peace.
Liechtenstein maintains close and friendly relations with its
two neighboring countries, Switzerland and Austria. Numerous
bilateral treaties ensure direct cross-border cooperation. The
relations between Liechtenstein and Switzerland are particularly
intensive and governed by a wide range of treaties. Most important among these is the Customs Treaty, which was concluded in 1923. This treaty created the basis for Liechtenstein's
integration into the Swiss economic area and its adoption of the
Swiss franc as its official currency. The Customs Treaty is also
the basis for the harmonization of economic and social law and
for cooperation in the area of security. Liechtenstein has also
concluded several treaties with Austria, especially in the areas
of social law and education. Austria recognizes the Liechtenstein
academic high school degree and years of study, and Liechtenstein students are treated like Austrian citizens at Austrian
universities.
Beyond this, Liechtenstein cultivates an active regional
policy. Liechtenstein holds regular meetings with its two neighboring Swiss cantons of Graubünden and St. Gallen and with
Claudia Fritsche,
Ambassador of the
Principality of Liechtenstein
in Washington,
with US Secretary of State,
Hillary Clinton
the Austrian province of Vorarlberg. Liechtenstein is also engaged in several transregional organizations. The Principality joined
the Alpine Convention in 1995, and the secretariat of the International Commission for the
Protection of the Alps (CIPRA) is headquartered
in Liechtenstein.
As a riparian state of the Alpine Rhine,
Liechtenstein participates in the Government Commission on the
Alpine Rhine, formed in 1995, which deals with water protection, land-use planning, production of energy, and renaturation
of the Rhine. Liechtenstein is a member of the International Lake
Constance Conference (IBK), which has brought together Swiss
cantons, Austrian provinces, and German states since 1972 to
cooperate in the areas of education, science, research, culture,
transportation, the environment, and the economy. Liechtenstein
maintains contacts with ARGE ALP, the association of cantons,
states, and provinces of the Alpine countries, but, as a state, it
is not a member of this working group, which is concerned with
transportation, the environment, land-use planning, culture, and
social and economic policy. Liechtenstein municipalities are
members of the Rhine Valley Border Community, which the
municipalities along the Rhine in St. Gallen and Vorarlberg
formed for purposes of regional cooperation.
History shows that the foreign relations of Liechtenstein
have always also been integration policy. From the German
Confederation via the relationship with the Austro-Hungarian
Empire in the 19th century to the treaties with Switzerland in
the 20th century, Liechtenstein has sought cooperation with
larger states or confederations. The European unification process
is in line with Liechtenstein's tradition of integration. At the
Conference for Security and Cooperation in Europe (CSCE) in
1975, which preceded today's OSCE, the Principality took part
| 45
NETWORKED SMALL STATE
46 |
as an equal partner, which facilitated its admission as the 160th
Member State of the UN in 1990. Both in the UN and the Council
of Europe, which Liechtenstein joined in 1978, the Principality
is actively engaged on behalf of the global implementation of
human rights. In 1993, Liechtenstein submitted a proposal at the
UN for the realization of the right to self-determination, to which
an endowed professorship at an American university is now
also dedicated.
Since 1 May 1995, Liechtenstein has belonged to the European Economic Area (EEA). Unlike Switzerland, the people of
Liechtenstein decided in favor of participation in the EEA.
Experiences with EEA membership so far have been positive.
The economic development after 1995 indicates that EEA membership has helped Liechtenstein preserve or even enhance its
good business environment. The unimpeded access to the
European Single Market has proven to be a location advantage.
EEA membership has also led to an internationalization and
diversification of the financial center, without having to give up
bank customer secrecy.
The close relations with Switzerland have also continued to
develop in a positive direction, even though the Swiss Confederation is pursuing the path of bilateral treaties toward
Europe. The two contracting parties agreed on a solution that
allowed the Principality of Liechtenstein to join the EEA while
preserving the Customs Treaty. This «solution platform» has
now already demonstrated its suitability for over ten years. A
series of agreements with Switzerland have been adapted to the
changed circumstances since 1995. As a consequence of EEA
membership, the Postal Treaty with Switzerland, which had
been in force since 1920, was repealed. Since then, the Liechtenstein Postal Services have worked together with their Swiss
partner by way of contracts under private law. The Vaduz
Convention of EFTA, which entered into force on 1 July 2002 at
the same time as the seven bilateral treaties between Switzerland
and the EU, establishes comparable conditions in each of these
seven areas. Since 1 January 2005, Liechtenstein has granted
Swiss citizens the same treatment as EEA citizens, while Switzerland grants Liechtenstein citizens full rights of free movement.
Liechtenstein has been a member of the WTO since 1995 and
is thereby also integrated into the global system of liberalization.
Diplomatic representations
Liechtenstein's personnel resources are limited due to the small
size of the country. In addition to the embassies in Berne,
Washington, Vienna, and Berlin, Liechtenstein has primarily
established diplomatic representations at multilateral organizations and their seats. As of the beginning of 2009, Liechtenstein
was represented at the following locations:
Germany
Embassy in Berlin
Austria
Embassy in Vienna and
Permanent Mission to the OSCE and the UN
Switzerland
Embassy in Berne
United States
Embassy in Washington
Vatican
Embassy to the Holy See
Brussels
Liechtenstein Mission to the EU and
Embassy to Belgium
Geneva
Permanent Mission to the EFTA, the UN, and the WTO
New York
Permanent Mission to the UN
Strasbourg
Permanent Mission to the Council of Europe
| 47
EDUCATIONAL LOCATION
48 |
The educational system of the Principality of Liechtenstein is influenced by the school systems of the Germanspeaking countries. The two neighboring countries of
Switzerland and Austria have a special impact on the
structure and educational contents of Liechtenstein
schools. Liechtenstein is unable to offer its young people
comprehensive education from primary school through a
university degree. Liechtenstein students mainly attend
institutions of higher learning in Switzerland, Austria, and
Germany. Theoretical professional training is also offered
in Swiss professional schools. Nevertheless, Liechtenstein
is a regional educational location. Far more than half of
the students at the Liechtenstein University of Applied
Sciences, which focuses on business sciences and
architecture, are from abroad, especially Switzerland
and Austria.
Liechtenstein's future
builds on well-educated
young people
EDUCATIONAL LOCATION
50 |
Students undergo nine years of compulsory schooling at the fivegrade primary school, followed by the secondary schools. While
each municipality has its own primary school and preschool, secondary school students are brought together in school centers.
The four-grade secondary schools are divided into three tracks:
Oberschule, Realschule, and Gymnasium. Students choosing
vocational training as apprentices may enter a voluntary 10th
year as an orientation phase. Since students may switch tracks,
the path to an academic high school degree (Maturität) is in
principle also open via the Oberschule and the Realschule.
Liechtenstein's schools offer special targeted measures to
promote children with developmental delays and pupils with a
foreign native language. These measures include preschool and
introductory classes between kindergarten and primary school,
as well as supplemental instruction by teachers with therapeutic-pedagogical training. Intensive courses in German prepare
immigrant children for entry into grades corresponding to their
age. Children with speaking difficulties may make use of the
Logopedic Services.
In addition to the public schools, two private schools are also
licensed in Liechtenstein: the Liechtenstein Waldorf School,
which offers anthroposophical education on the basis of Rudolf
Steiner's pedagogy, and formatio, a day school for primary and
secondary students.
In parallel with basic education in primary school and the
secondary schools, special schooling is offered for children with
physical or mental disabilities and for children with developmental disorders. The Therapeutic-Pedagogical Center, which is run
by a private association with support by the state, the municipalities, and Disability Insurance, takes care of these children.
The Liechtenstein
University of Applied
Sciences is housed
in a former cotton mill
Vocational training in Liechtenstein follows a
dual system, with practical training in an apprenticeship and accompanying theoretical
education in the vocational school. While a sufficient number of businesses offer apprenticeships for about 100 career paths in Liechtenstein, apprentices attend vocational school in
Switzerland. The introduction of the vocational
high school degree (Berufsmatura) has enabled
young people to enter universities of applied
sciences by way of an apprenticeship.
Tertiary education offerings are largely
oriented toward the needs of the Liechtenstein
economic location. The Liechtenstein University of Applied Sciences specializes in architecture and, in the field of business, in entrepreneurship, financial services, and business
information systems. The establishment of
institutes has built a bridge between academia
and business. The Institute for Compliance and
Quality Management (ICQM) was established to strengthen the
quality standards for the Liechtenstein financial center and was
converted into a private enterprise in 2006. The Liechtenstein
Business Cycle Research Institute (KOFL) has also been established at the University of Applied Sciences.
In addition to the University of Applied Sciences, there are
three institutions of higher learning in Liechtenstein with
different orientations: The International Academy of Philosophy
(IAP), the Liechtenstein Institute as a scientific research center
for topics specific to Liechtenstein, and the the Private University
in Liechtenstein, which offers courses of study and doctoral
programs in the medical sciences and law.
| 51
BUSINESS LOCATION
52 |
Liechtenstein has a very diversified economic structure.
Not only the financial center is important for the national
economy, but especially also the industrial sector is
internationally competitive with high-quality products.
Local businesses and trades play a significant role in
the regional market. Thanks to the Customs Treaty with
Switzerland, Liechtenstein has had open borders with the
Swiss economic area since 1924. Liechtenstein was able
to join the European Economic Area (EEA) without
having to sacrifice its close relations with its economic
partner Switzerland. The vicinity to the Swiss financial
center was of crucial importance for the development of the
Liechtenstein financial center. Since 1924, all economic
sectors have been able to benefit from the introduction of
the Swiss franc as the legal currency. Liechtenstein is
unable to meet its demand for jobs by itself. About half
of all jobs are filled by cross-border commuters from
Switzerland, Austria, and Germany. The Principality has
developed into an important regional labor market.
High-tech company
in front of Gutenberg
Castle in Balzers
BUSINESS LOCATION
54 |
Regulatory environment
The Constitution stipulates that the supreme responsibility of the
state is to promote the welfare of the people. The Constitution,
which was drafted in 1921 during an era of economic uncertainty, expressly mentions the goals of promoting industry and
trades, agriculture and alp cultivation. Since then, Liechtenstein
has regarded these provisions as an obligation to create the best
possible regulatory environment for the economy.
When the Constitution entered into force in 1921, Liechtenstein primarily subsisted on agriculture. Some of the industrial
enterprises that had been established toward the end of the
19th century had to shut down after the First World War. The
Law on Persons and Companies, which was adopted in 1926,
was of only minor significance to the financial sector until after
the Second World War.
Liechtenstein's economic upswing did not begin until 1945
and – except for short-term business cycle fluctuations – has
continued until today. The establishment and expansion of
industrial enterprises in the 1950's launched the industrial boom,
which was followed by expansion of the financial services sector in the 1970's. Agriculture, which was increasingly displaced
by the growth of the manufacturing and financial sector, no
longer plays a major role as an economic sector. It serves in part to ensure basic food supplies and primarily to preserve the landscape.
One of the most important factors for
Liechtenstein's «small economic miracle» is
the consistent utilization of the conditions
afforded by the location. These include the
stable social, legal, and economic order, and
the high level of political stability. Very liberal
tax legislation creates incentives to establish
The Centrum Bank
was designed by the
Austrian star architect
Hans Hollein and is
an architectural
attraction in Vaduz
and expand commercial, industrial, and financial
services
enterprises.
Of
particular
importance is Liechtenstein's close economic
relationship with Switzerland and the adoption
of the Swiss franc. Accession to the EEA in
1995 has also had a positive impact.
State budget
Liechtenstein has no state debt. The financial reserves in 2008
would have sufficed to cover two annual budgets. The rating
agency Standard & Poor's has accorded the Principality of
Liechtenstein the highest rating, AAA, every year since 1996.
Liechtenstein shares the best marks in the country rating with
its neighboring countries Switzerland and Austria, as well as
Germany and the financial center Luxembourg. In its evaluation,
Standard & Poor's emphasizes Liechtenstein's wealth and the
strong position of its public finances.
The stock market decline after 2000 also had consequences
for the Liechtenstein state budget. The investments of the
financial reserves suffered from the decrease in market prices.
The revenue from the various types of tax no longer flowed as
abundantly into the state treasury as before the stock market
decline. Through cost-cutting measures and additional revenues,
The Liechtenstein
industrial sector
competes internationally
with high-quality
products
the Government has since attempted to balance the revenues and
expenditures in the state budget. A financial strategy with five
benchmarks provides the targets that must be fulfilled in the
medium-term.
Although the misconception is often prevalent abroad that
there are no taxes at all in the «tax haven» of Liechtenstein, the
Principality does in fact levy taxes. Taxes are one of the most
important revenue sources for the state.
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Natural persons are subject to income and property tax.
Progressive surtaxes are levied on top of the simple tax rate.
Municipalities may levy additional surtaxes of up to 250% on
the calculated national tax. Given a municipal surtax of 200%,
which is usual in most municipalities, the minimum property tax
rate is 0.162% and the maximum rate is 0.851%. The income
tax rate is between 3.24% and 17.01%.
The companies operating in Liechtenstein are subject to
capital and profits tax. Holding companies and domiciliary companies as well as investment funds do not pay a profits tax, but
rather a capital tax of 0.1% of the paid-in capital or at least 1,000
francs per year. Other taxes include the real estate profits tax,
estate tax, inheritance tax, and gift tax.
Business conditions
Liechtenstein offers many attractive business conditions:
Stable social, legal, and economic order
Customs and currency union with Switzerland
Membership in the European Economic Area
Political stability and continuity
Central location in Europe
Political neutrality and neutral neighboring countries
Cooperative social partnership
Liberal tax laws and economic policy
Good infrastructure
Swarovski maintains
its worldwide logistics
center in Triesen
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Industry
Liechtenstein, with its 160 square kilometers (62 square miles),
is a small sales market. Nevertheless, Liechtenstein's export
industry has enjoyed an uninterrupted history of success since
the Second World War. Intensive research and development, the
high education level of the employees, the high quality of the
products, and the service performance of the enterprises are
Thanks to flexibility
and innovation, export
enterprises are able
to compete on the
international markets
responsible for this success. Broad diversification has also had
a positive effect, both with respect to the enterprises themselves
and with respect to the individual sectors and their products.
The products of the export industry include
instruments, electronic measurement devices,
precision tools, vacuum technology, heating
and lighting technology, dental and medical
products, and foodstuffs.
Liechtenstein has no mineral resources,
salary levels are comparatively high, there are
no state subsidies for businesses, and the state
only engages in limited research and development at universities and research institutes.
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The manufacturing sector has been able to compensate these
disadvantages by utilizing location advantages such as low
taxes and liberal economic policies. Through flexibility and innovation, export enterprises are able to compete on the international markets.
Membership in the European Economic Area (EEA) has had
a positive impact on industry. In the discussions prior to joining
the EEA, the Liechtenstein industry had emphasized free access
to a large business and sales area as the most significant advantage of membership. The Chamber of Commerce and Industry
rates EEA membership since 1995 as positive. The export quota to EEA countries is approximately 50%. The EEA has become
the largest economic partner of the Liechtenstein industry. EU
enlargement has resulted in additional advantages, since the existing free trade agreements with the new EU countries have been
replaced by the more comprehensive EEA Agreement.
Financial center
Along with the export industry, the financial center is one of the
most important economic sectors in Liechtenstein. The foundations for establishing the financial center were the Customs
Treaty of 1924 with Switzerland, access to the Swiss financial
center with the introduction of the Swiss franc
as Liechtenstein's official currency, and the enactment of the Law on Persons and Companies
in 1926, which made a broad selection of company forms possible. EEA accession in 1995
acted as a catalyst for a series of fundamental
changes in the financial center and facilitated
market access in other countries. While there
were only five banks in Liechtenstein before
accession to the EEA, this figure had increased to 15 banks by
2008. New business opportunities have also opened up with
respect to investment funds and insurances.
The globalization of the world economy has led to a closer
interlinking of the international financial markets, which is
further facilitated by new information technologies. To prevent
abuse of the Liechtenstein financial center for criminal purposes, Liechtenstein has adopted international standards to combat
money laundering and the financing of terrorism. The criminal
law on the prevention of money laundering has been tightened,
and the Law on Professional Due Diligence in Financial Transactions has been adjusted. Due diligence not only applies to
banks and finance companies, but also to lawyers and professional trustees, exchange offices and the Postal Services, as well
as investment and insurance undertakings. An independent
Financial Market Authority meeting international standards has
been established to supervise financial services.
At the international level, Liechtenstein is a state party to all
UN legal instruments for the fight against terrorism and international financing of terrorism. The standards of the UN and the
Along with the export
industry, the financial
center is one of the most
important economic
sectors in Liechtenstein
Council of Europe for the fight against terrorism have also been
adopted into Liechtenstein criminal law.
Bank customers are protected by bank customer secrecy. Bank
customer secrecy is not absolute, however. In
criminal cases, banking secrecy is suspended.
There are also no anonymous bank accounts in
Liechtenstein, since the identity of the account
holder is always known to the bank.
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Trades
Liechtenstein's liberal economic order has led
to a high quantity and quality of trades. Small
and medium-sized enterprises primarily operate in the domestic market, but the surrounding region now also is included in the home
market. Thanks to specialization and niche
offerings, commercial trading also attracts customers from
throughout the region. Most trades engage in traditional crafts
such as construction, construction support, transportation, and
retail. A large group of businesses supplies larger enterprises
and the export industry.
The trades were initially skeptical about the EEA or even
disapproved of joining, but they have adapted flexibly to the
changing business environment with respect to freedom of
movement in the labor market and cross-border crafts. The
number of commercial applications increased after accession to
Liechtenstein craftsmen
are consistently
successful at international professional
championships
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the EEA in 1995, though the increase cannot be attributed
solely to EEA liberalization. The good economic situation and
the increase in self-employment and secondary jobs probably
also contributed to the increase. A relatively large number of EEA
citizens used the possibility to either open up the small Liechtenstein market or to benefit from the good regulatory environment. Since accession to the EEA, about one third of the commercial applications each year have been submitted by EEA
Liechtenstein is a
culinary paradise with
gourmet restaurants,
local spots, alp cabins,
and a sophisticated
wine culture
citizens. Most of the applicants are from the region, especially
from neighboring Vorarlberg, but also from the German Lake
Constance region.
An SME Center was established at the Liechtenstein University of Applied Sciences, with the support of the state, since
there is an increasing demand also in the trades sector for
counseling and services. The SME Center constitutes the hub
between the University of Applied Sciences and the business
community. It offers counseling on the establishment of new
enterprises and coaching in the start-up phase, as well as in the
expansion phase of existing enterprises.
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Agriculture and forestry
About one third of Liechtenstein's area can be used for agriculture. In addition, alp pastures are used to graze livestock in the
summer. Two thirds of the agricultural area of about 55 square
kilometers (21 square miles) are used as pasture, and the rest
is available for farming, horticulture, and fruit and wine growing.
The economic transformation of the Principality of Liechtenstein becomes apparent not least of all in the number of farms.
The number of farms decreased from 1,366 to 128 between
1955 and 2005. The size of the operations has been inversely
proportional to the number: While there were an average of six
animals per farm in 1955, there are already over 50 animals per
farm at the end of the 20th century.
Agriculture after the Second World War primarily supplied
food for domestic consumers; today, ecological concerns such
as preservation of the landscape and environmental services
The focus of
agricultural production
is on dairy, which
contributes more than
two thirds to the added
value of the entire
sector
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are more important. The promotion and preservation of agricultural operations have also undergone significant changes. While the emphasis used to be on premiums for the products,
direct payments to farms now dominate that are
not linked to production volumes. The emphasis is on compensation for ecological and animal-friendly services. Nearly two thirds of the
farms used the model of integrated production
in 2008, and one third had already converted
to organic farming.
In today's Liechtenstein,
only one percent of
the working population
is engaged in
agriculture
The Customs Treaty partially links Liechtenstein agriculture
to Swiss agricultural measures, while other provisions can be
adopted autonomously. The Government has drafted a mission
statement for agriculture. This mission statement calls upon
agriculture to supply the population with food and to ensure supplies during crises. The state has committed itself to promoting
agriculture that is entrepreneurial and in conformity with the
market.
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Despite its small size, Liechtenstein offers a diverse landscape. Whether in the valley or in the mountains, excursions through the nature of Liechtenstein are always
worthwhile, since much of it has retained its original
beauty. The contrasts become rapidly apparent: Hectic
industrial and commercial buildings and the noise of traffic are quickly replaced by untouched nature for recreation
and dreaming. The country is especially suited to sports,
enjoying nature, and recreation. Not only for the locals,
but also for vacation guests.
Liechtenstein offers
generous facilities
for recreation and
sports
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Landscape
Except for the narrow Rhine Valley floor, Liechtenstein's landscape is strikingly mountainous. Of all the countries in the Alpine
arc extending from France to Slovenia, the Principality is the only
country situated entirely in the Alps. The townships in the valley floor, which until the late 20th century were geographically
separated by agricultural areas, are increasingly growing together. The three municipalities of Vaduz, Schaan, and Triesen
now appear as a thin, extended village, since the earlier agricultural buffers have now been taken over by office buildings
and industry. Three types of landscape can be distinguished: The
Rhine Valley, the slopes facing the Rhine Valley, and the Alpine
region.
Each of these three landscapes has its own unique flora and
fauna. Botanists have identified about 1,600 plant species, about
half of which grow in the Alpine region. In 1989, the Alpine
region was declared an integral plant conservation area. Pastures
have been reserved for the cattle that spend the summer on the
alps. Each municipality has also designated part of its area as
a protected agricultural zone. With the exception of agricultural
structures, no buildings may be erected in these
zones. Likewise, conservation areas have been
designated, such as the SchwabbrünnenÄscher nature reserve between Schaan and
Nendeln and the Ruggeller Riet. Rare plants
grow in these nature reserves, such as rare
orchids. The Elltal valley near Balzers is the
largest contiguous wildflower meadow area,
which is also home to rich flora. Botanists
value the banks of the Rhine Dam, which are
also protected, as a treasure trove for colorful
and rare plants.
Many animals use the varied and diverse
landscape in the valley and mountain regions
as their habitat. Over 50 mammal species have
Birds of prey show
in Malbun
found a suitable environment here. Numerous bird species nest
here, and two dozen fish species swim in the rivers, creeks, and
lakes. Reptiles and amphibians and several bat species have been
able to maintain their original habitats despite changes. In the
Alpine region, which has been less affected by modern civilization than the narrow settlement area in the valley, the Alpine
flora is almost completely intact. In addition to deer, chamois,
and ibex, eagles, mountain hares, and Alpine ptarmigans live
Malbun is Liechtenstein's
popular winter sports
area at 1,600 meters
(5,250 feet) elevation
here. Not to forget the marmot, whose shrill whistles draw the
attention of hikers. Liechtenstein's only venomous snake, the
adder, can also be found in the Alpine region.
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The flora reveals itself to the observant hiker on trails leading
through valley and mountains, which are often referred to as
«royal trails». The diversity of nature can be found in the smallest space here. The hike on the Princess Gina Trail to the Pfälzer
Cabin and the mountain hike over the Three Sisters massif and
the Fürstensteig open up perspectives on the beauty of nature
and offer marvelous views of Liechtenstein's mountain world and
the neighboring countries of Switzerland and Austria.
The largely intact landscape in the valley area and the generally untouched nature in the Alpine region make Liechtenstein
a particularly attractive destination for excursions and vacations. In the «heart of Europe», the visitor not only is able to
experience the unique qualities of a Principality. The hiker also
finds a varied landscape in a very small area – from the unobstructed riverside woodland between the Rhine and the canal
to the rugged, jutting rock of the steep mountains.
Dining
Liechtenstein offers a broad spectrum of fine dining. Everything
can be found from simple traditional meals such as Käsknöpfle
(cheese noodle dumplings), which are still a common feature on
the lunch tables of many Liechtenstein homes, to culinary masterpieces in gourmet restaurants. Liechtenstein's position as a
border country has also influenced its food. Regional cuisine is
widespread – known dishes from Switzerland and Austria, as well
as from southern Germany, are often on menus. International
influences have inspired chefs to delight guests with local and
regional products of the highest quality.
Liechtenstein offers
everything from
traditional dishes
like Käsknöpfle and
Riebel to unique
gourmet meals
Some top chefs experiment and give their creativity free rein, while others are more committed to tradition, serving delicacies of classic
cuisine. But neither approach lacks imagination
or innovation. No wonder that the Gault Millau
restaurant guide for gourmets has written of
«princely dining» in Liechtenstein and admired
its «artistic presentation»: «The colors shimmered on the glass plate as if it were a church
window by Chagall.»
But guests are also spoiled outside the awardwinning gourmet restaurants. Seasonal specialty weeks enrich the regular offerings, which
are also of high quality. The culinary delicacies
are accompanied by wine lists with select
offerings: Princely wines from the Hofkellerei
of the Reigning Prince of Liechtenstein or from
other Liechtenstein vineyards need not shy
away from comparison with foreign varietals.
Wine connoisseurs in restaurants have filled
their wine lists with wines from all over the world, leaving no
wish unfulfilled.
Liechtenstein's gastronomic delights have even found their
way onto postage stamps. The 2005 Europe Stamp is dedicated
to fine dining and hospitality. With humor and subtle irony, the
theme of «The guest is king» has been immortalized on the
special-issue stamp.
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Schlosspinsen – bread or cake?
Julie Hahnl was the chef at Vaduz Castle for
decades. She took over the kitchen shortly
after the marriage of Reigning Prince Franz
Josef II and Princess Gina in 1943. Many of her
recipes become popular in a booklet entitled
«Julie's Secrets». One of these recipes was for
Schlosspinsen. «I was often asked whether
Schlosspinsen was cake or bread. I think it
depends on the preparation. But try it yourself
sometime! It is easy to bake, so that even
husbands and bachelors will succeed…»
RECIPE for Schlosspinsen
Take 600 grams of flour, 30 grams of yeast, 70 grams of butter, 80 grams
of sugar, 4 egg yolks, 1 whole egg, 1 coffee spoon of vanilla, 1 tablespoon
of rum (or more, if you like…), grated lemon peel, cold milk, salt, and a
sharp knife…
Knead dough out of the flour, yeast, butter, sugar, vanilla, the 4 egg yolks,
the lemon peel, and the cold milk. Add rum as desired. Knead thoroughly, then let rest for 1/2 hour. Cut into 4 parts, form into buns, place on a
buttered sheet, and let dough rise for 2 hours.
Do not add raisins!
With a sharp knife, cut a «Y» into the surface of the buns, spread buns
several times with a whole, beaten egg, and place in the oven at a temperature that is not too high. Begin baking, then reduce heat to 1/4.
After just about 1/2 hour, you should have attractive, soft bread (or cake?)
with a shiny brown surface. It tastes especially good (also as toast) with
butter or gervais cheese!
The Gasthaus Linde
in Triesen is renowned
for its Käsknöpfle
Culture
Liechtenstein's culture has many roots. The territory, which
used to be situated on an important north-south axis, was
exposed to many influences over the course of the centuries. The
culture was fundamentally shaped by Christianity, which began
to establish itself in the 5th century. The Romans also left traces.
Finds also testify to the settlement of the area long before the
Common Era.
As a small country, Liechtenstein always has sought out
connections with larger partners. These connections not only
resulted in political orientations and economic advantages, but
also in cultural fertilization.
Liechtenstein views its foreign policy also as cultural policy,
as a Government report on the goals of foreign policy states:
The traditional and
the modern join
together seamlessly in
Liechtenstein.
Here the Kunstmuseum
Liechtenstein in front
of Vaduz Castle
«Liechtenstein's cultural policy strives for both an internal and
an external orientation. Cultural policy is also understood as part
of foreign policy: international and regional.
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VACATION, RECREATION, SPORTS
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This includes participation in international and regional organizations as well as cultural exchange projects.»
Relative to its size, Liechtenstein offers a rich cultural life.
But the Principality does not have any cities in which cultural
institutions, art academies, and music conservatories could
unleash vibrant cultural creation. Its small size prevents the
birth and development of cross-fertilizing and
competing cultural scenes. But Liechtenstein's
small size does offer the opportunity to measure oneself against foreign countries and to
exchange cultural influences. This cultural exchange has become an important structural
element of the small state. People active in
Liechtenstein's cultural sector go abroad for
training or continuing education, and foreign
artists, musicians, and writers are invited to
visit Liechtenstein.
«Liechtenstein must formulate its cultural
policy across borders,» the Government stated
in 1995 with respect to the orientation of cultural policy, «in order to radiate its culture out
into the world. International cultural exchange projects should
be actively shaped and promoted.» The 2007 Cultural Promotion
Act forms the basis for cultural promotion in Liechtenstein. The
previous public institutions responsible for cultural promotion,
such as the Cultural Advisory Board of the Government and the
Pro Liechtenstein Foundation, were consolidated into the
Liechtenstein Cultural Foundation. Since 2008, the Cultural
Foundation has been responsible for promoting culture in
the areas of literature, music, performing and visual arts,
audiovisual media, and preservation of customs and traditions.
Some municipalities also maintain their own local museums.
The people of
Liechtenstein are
enthusiastic about music
The palette of cultural offerings is very rich. Cultural diversity
extends from music and theater to literature, the visual arts, and
customs and traditions. The numerous private associations play
an important role in this regard. The cultural associations are
very active and take on a large part of the responsibility for
preserving culture in Liechtenstein.
Art and the Kunstmuseum Liechtenstein
Visual arts are the part of the culture that has
made Liechtenstein known far beyond its borders. The centerpiece is the Collection of the
Reigning Prince of Liechtenstein, which regularly makes loans available for internationally
noted special exhibitions. The Art Society also
deals with art, and the School of Fine Arts
constitutes the foundation for upcoming artists.
The Kunstmuseum Liechtenstein has stood in
the center of Vaduz since 2000, presenting
works both from the inventory of the State Art
Collection and from domestic and foreign
artists.
The Kunstmuseum
Liechtenstein was
opened in 2000
Music and the Music School
Numerous adult and children's choirs and music associations
enrich the cultural life in the municipalities. They are complemented by the Balzers and Vaduz operetta companies, the Vaduz
Opera, and the Symphonic Orchestra. The Liechtenstein Big
Band should also not be forgotten, which grew out of the
Liechtenstein Music School.
The Music School was opened in 1963 and provides instruction for students and adults in practically all instruments and
voice. Since 1971, the Music School has conducted International
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Master Courses at the tertiary education level,
drawing musicians from all over Europe to
Liechtenstein each year.
Theater and the Theater am Kirchplatz
Amateur theater has a long tradition in Liechtenstein, from the folk theaters at club events
to the operetta companies in Vaduz and Balzers
and minor arts in various cultural centers.
The Liechtensteiner Gabarett has entertained
friends of humorous-ironic cabaret since 1994,
and the Tanzarena Liechtenstein has danced
into the hearts of modern ballet enthusiasts.
The focus of theater and drama in Liechtenstein
is the Theater am Kirchplatz, however, which
was founded in Schaan in 1970. Its program
ranges from plays to large concerts in the
Vaduzer Saal. TaKino, which shows independent and art films, is affiliated with the Theater
am Kirchplatz.
Literature and the National Library
Despite its small size, Liechtenstein is home to
a vibrant literature scene. Until individual
writers began capturing the attention of the
literature world, Liechtenstein was used more
as an idyllic location for literary works or as a residence for
foreign authors. Liechtenstein has regularly been represented
at the Frankfurt Book Fair since 2000, the Liechtenstein
The Ski Museum in
Vaduz was officially
recognized by the
International Ski
Federation in 2005 and
shows the development
of Alpine skiing from
its origins to today
Literature Days take place every two years, and readings are
regularly conducted in various cultural centers. All works by
Liechtenstein writers and all works relating to Liechtenstein are
collected in the Liechtenstein National Library and are lent out
– along with world literature and non-fiction covering all areas
of expertise.
Museums and the National Museum
Liechtenstein is home to several museums, including the Walser
Heritage Museum, the Postal Museum, and various village
museums. The centerpiece is the National Museum, which was
opened in 1954 on the initiative of the Historical Society. The
The National Museum
shows the development
of Liechtenstein
National Museum is located in the old «Princely Tavern», which
was joined together with the old Governor's House to form the
museum building. The National Museum portrays the development of the country from archeological finds to cultural history
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VACATION, RECREATION, SPORTS
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and economic development.
Postage stamps and the Postal Museum
Liechtenstein stamps have thrilled letterwriters and collectors since 1912. For decades,
the sale of postage stamps was an important
revenue source for the state. The portrayal of
Liechtenstein in all its diversity serves as the
principle for postage stamp design. The stamp
designs are usually the product of Liechtenstein
artists, although occasionally foreign artists
are also commissioned. The Postal Museum,
founded in 1930, shows all Liechtenstein postage
stamps and documents the art of postage stamp
design.
Cultural Summer – the summer is
dedicated to culture
When vacation time starts, Liechtenstein's
summer cultural scene awakens. The Open Air
Cinema entertains film fans, the International
Master Courses range from classical music to
jazz, and the International Guitar Days engage
virtuosos and offer hot Latin rhythms. The
International Master Courses launched the
Liechtenstein Cultural Summer in 1971 and
were joined over time by other cultural events.
Again and again, artists and musician have realized new ideas.
Several other cultural institutions enrich Liechtenstein's
cultural life. The Tangente association operates a jazz club in
Eschen and presents work by regional artists in its gallery.
Schichtwechsel is engaged on behalf of communication among
artists. The English Building Art Space is available for contemporary artists from Liechtenstein and the region. The Heritage
Liechtenstein postage
stamps are very
popular all over the
world
Museum in Triesenberg presents the culture and tradition of the
Walser. DoMus – in the Schaan town museum – combines a
gallery and a museum into a meeting place for locals, while the
Benefice House in Eschen and the House of Marti the Cooper
in Ruggell are protected historical buildings used for a wide
range of cultural events. Liechtenstein's museum landscape is
enriched by the Antique Museum in Schaan with historical calculators and typewriters. The Ski Museum in Vaduz is one of the
largest collections of winter sports gear in the world and portrays the history of skiing from its origins to today.
Sports
Liechtenstein is
characterized by
its rich cultural life
Liechtenstein athletes have repeatedly drawn international
attention. Skier Marco Büchel, like Hanni and Andy Wenzel, Willi
and Paul Frommelt, Ursula Konzett, and Birgit Heeb-Batliner
before him, skis among the world elite. The national football team
has grown into a serious opponent in qualification games for the
European and World Championships. In model aerobatics world
championships, Wolfgang Matt has stood at the top of the
pedestal. Athletes carry the name of Liechtenstein out into the
whole world – they are «Liechtenstein's ambassadors» around
the globe.
The people of Liechtenstein are enthusiastic about sports.
Practically every sport can be found somewhere in Liechtenstein.
Even when sporting facilities are lacking, there is always the
possibility of engaging in sports outside the country's narrow
borders. Liechtenstein has no airfield, bobsled run, or golf course
– nevertheless, there are Liechtenstein glider pilots, parachutists,
bobsledders, and golfers. The social trend toward increased
individualization has also expressed itself in sports.
Young people are increasingly turning to trend sports such
as inline skating and snowboarding. All in all, Liechtenstein
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VACATION, RECREATION, SPORTS
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probably ranks on top internationally with respect to the number of active sports club members relative to the population.
Adding the members of all sports clubs together, every third person in Liechtenstein engages in a sport – not counting the many
hobby athletes who participate in marathons without membership in a sports club, who use the well-developed bike paths for cycling, who explore the
beauty of the mountains with their mountain
bikes, or who float like an eagle with their
paragliders.
The beginnings of sport in Liechtenstein
were not as promising as today's enthusiasm
for sport might indicate. Only in 1895 did the
astonished mountain inhabitants come face to
face with a skier. The chief huntsman of the
Reigning Prince had received a few «boards»
from Tyrol so that he would be better able to
master the steep slopes. The painter Friedrich
Kaufmann, who was the first skier to stay in
today's winter sports resort of Malbun in 1910,
remained an isolated episode. Only after the conclusion of the
Customs Treaty with Switzerland in 1923 did winter sports
achieve a breakthrough: Swiss border guards used skis for their
rounds in the mountains, and they encouraged others to try
skiing. Prior to the advent of skiing, only gymnasts and runners
had engaged in sports. The shooting clubs founded before the
gymnastics clubs had already existed since the era of Napoleon.
Idyllic winter
landscape in Malbun
Marco Büchel has
won many medals
for Liechtenstein
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Sports in Liechtenstein now serve to enhance the movement,
work-life balance, well-being, and not least of all the health of
the people of Liechtenstein. The state promotes sporting
activities and sports clubs, which make facilities, equipment,
training opportunities, and coaches available to their members.
Liechtenstein pays particularly close attention to sports in
schools and the regular sporting activities of young people as
part of their compulsory education. The curricula of all levels of
schooling include sports for students. Regular sports education
is intended to enhance the performance of young people,
prevent bad posture, and encourage students to adopt a healthy,
active attitude toward life. Voluntary school sports, sports camps,
and school sports days complement compulsory sports instruction for students enthusiastic about sports.
Popular sports in Liechtenstein encompass active recreation
through sports, which not only fulfills the natural need for
movement, but also serves to improve health. A social aspect also
underlies popular sports: Engaging in sports with others can
serve to break down barriers. Because of the wide range of
popular sports and their far-reaching effectiveness in the
population, sports policy places an emphasis on popular sports.
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80 |
The promotion of sports ranges from financial support for sports
Sports are more popular
in Liechtenstein than
almost anywhere else.
Over 15,000 of the
35,000 inhabitants are
members of a sports
club or association
club to the funding of sports facilities.
The state supports competitive sports, since the name of
Liechtenstein appears throughout the world at international
events such as the Olympics. In addition to this national
concern, the role model character of competitive athletes also
is an important motive of state support: Athletes push the
limits of their performance, even though they pursue a normal
career in addition to their training and competitions.
Even more than other competitive athletes, elite athletes
stand in the international limelight. Athletes who have reached
the world elite are «advertising vehicles» and «ambassadors»
from Liechtenstein, underscoring the existence of the small
state of Liechtenstein around the globe and garnering the
support of fans. Successful elite athletes are idols and motivate
young people to engage in sports themselves, perhaps also
leading to a successful sporting career. The path to becoming
7 pt Bildlegende
CompatilFact 7 pt
Bildlegende CompatilFact
an elite athlete is long and hard, requiring
extraordinary training efforts and significant
financial means for training and competition. In
addition to its support for sports clubs, the state
therefore also contributes financially to competitive sports.
The organization «Youth + Sport» is particularly important for the promotion of young
people; it was established in 1979 in close connection with the organization of the same name
in Switzerland. The goal of «Youth + Sport» is
to promote sports among young people
between the ages of 10 and 20. About 20 sports
from the offerings of the Swiss Federal Office
of Sports in Magglingen are offered in Liechtenstein. Young people engage in these sports
under the supervision of certified coaches. The
success of Liechtenstein elite athletes are not
least of all due to the «Youth + Sport» program,
since athletes are trained in their youth for their
later sports careers. The broad range of sports courses offered
includes traditional sports such as football, gymnastics, tennis,
track and field, swimming, and skiing, as well as trend sports
such as karate, unihockey, snowboarding, speed skating, and
rock'n'roll. The «Youth + Sport» numbers are impressive:
Each year, over 600 certified instructors convey their sporting
knowledge and skills to over 4,000 young people.
The Liechtenstein Sports School has promoted sporting
talents since 2004. The Government launched this «training
center for future world champions and Olympic gold medalists»
because the international demands on elite athletes have increased, and the path to elite sports has become steeper.
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VACATION, RECREATION, SPORTS
82 |
Previously, only the sports high schools in Austria and Switzerland were open to young athletes from Liechtenstein. Now,
talented young people may establish the links between sports
education and elite sports in Liechtenstein itself. The concept
of the Sports School strives to respond to the need of the young
athletes by combining school and sports, along with training and
competition, in a useful way. Sports students are not taught
in separate classes, but rather a reduced and flexible school
schedule provides them with sufficient time for training and
competition. Sports associations play a crucial role in the Sports
School, since they are responsible for the organization and design
of training. To catch up on academic material
they missed during training and competition,
the students receive individual tutoring. In this
way, the school aims to ensure that the requirements of each level of schooling are met. The
sports students not only reap the benefits of
their special schooling, however, but must also
fulfill certain demands. So that the athletic
objectives do not endanger the students'
scholastic career, they commit themselves to
the principle of performance with respect to
school instruction as well: through special
requirements in their learning, social, and
working behavior, including a renunciation of
alcohol, nicotine, drugs, and doping.
Sports in Liechtenstein
are diverse. There are
41 sports associations
with over 120 affiliated
sports clubs
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As a small state, Liechtenstein cannot keep up with large countries and their significantly greater athletic resources at international events such as the Olympics and world championships.
Skiing has so far been the exception. Liechtenstein skiers have
won medals and the overall World Cup. Since all smaller countries have similar difficulties, the idea was launched at the 1984
Summer Olympics in Los Angeles to conduct Olympic-style competitions among small European states. Since then, athletes
from eight small countries have met every two years for the
Games of the Small States of Europe. In this direct comparison
with states of less than one million inhabitants, Liechtenstein has
performed very well so far: Liechtenstein athletes have always
come home with numerous medals. In 1999, athletes from
Andorra, Cyprus, Iceland, Luxembourg, Malta, Monaco, and
San Marino were invited to compete in Liechtenstein. The «LIEGAMES 1999» were a complete success, both for the athletes
and the organizers. The next Small State Games in Liechtenstein
will take place in 2011.
NATIONAL IDENTITY
84 |
«Liechtensteinisch»
The official language of Liechtenstein is German. Liechtensteiners speak dialect with one another, however. When the
various dialects are spoken in their original form, the speakers
can be assigned to their home village with a high degree of
certainty. Strictly speaking, each village has its own characteristic linguistic features. In a broader sense, Liechtenstein can
be divided into three dialect regions: the Unterland (Lower
Country), the Oberland (Upper Country), and Triesenberg. While
the dialects of Unterland and Oberland are distinguished by
their differently enunciated vowels, the Walser village of
Triesenberg constitutes a linguistic island at 800 meters (2,625
feet) elevation and above. The Walser settled here on a sunny
terrace in the 13th century, and their descendents have preserved
the special features of their vocabulary and language melody.
The Walser village
of Triesenberg
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On National Day, the
15th of August, many
Liechtenstein women
wear the traditional
Liechtenstein costume
Fireworks on
National Day
NATIONAL IDENTITY
86 |
Coats of arms and colors
The large national coat of arms
The coat of arms of the Princely House of Liechtenstein also
serves as the large coat of arms of the state. It is the emblem of
sovereignty of the Principality of Liechtenstein and is used on
seals and stamps as well as official signs and documents. The
right of use is reserved to the members of the Princely House
and the state authorities. The Government may also grant
private individuals authorization to use the large coat of arms if
it is in the interest of the country.
The coat of arms is quarterly with chapé in base, charged with
per fess or and gules over all. The individual shields united in
the large coat of arms indicate the history of the Princely House:
• The family shield of the Princely House is per fess or and gules.
• The Silesian shield is or an eagle sable, crowned, armed or,
charged with crescent trefly argent ending in crosses.
• The shield of the Kuenringe is a barry of 8 pieces or and sable
charged with crancelin vert.
• The shield of the Duchy of Troppau is per pale gules and
argent.
• The shield of East Frisia or Rietberg is or a maiden eagle sable
with head argent, crowned, armed or.
• The shield of the Duchy of Jägerndorf is shown chapé azure
a bugle-horn or stringed or.
The shield is surrounded by the Princely cloak (mantle) crowned
with the Princely hat, purpure with ermine lining.
The small national coat of arms
The small national coat of arms is the family shield of the Princely
House per fess or and gules (horizontal bands of gold and red)
under the Princely crown.
The national colors
The national colors are blue and red. The flag consists of a rectangular cloth loosely affixed to a pole, with two equally wide
horizontal bands, blue above, red below. In the blue band near
the pole, the Princely crown is emblazoned in gold.
The colors of the Princely House
The colors of the reigning Princely House of Liechtenstein are
gold and red.
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NATIONAL IDENTITY
88 |
The Liechtenstein brand
In 2004, the Liechtenstein brand was introduced with the goal
of symbolically representing the values and qualities that make
up Liechtenstein's distinctive characteristics in a clearly recognizable brand.
The font
For this purpose, a font was created that symbolizes the development of the country from an agrarian state (flower) into a
financial center (circle) and an industrial location (rhombus):
Liechtenstein – natural, and at the same time highly developed.
The symbols
The following five core messages standing for Liechtenstein
constitute the basis of the Liechtenstein brand:
• internationally networked small state open to the world (the
heart symbolizes dialogue among people and nations),
• successful financial center (the circle represents a coin),
• highly developed industrial location (the rhombus stands for
precision work),
• diverse cultural life (the house as a symbol for customs, tradition, history, and culture),
• hospitable vacation and recreation country (the flower stands
for nature and is composed of hearts – the symbol of dialogue).
The five symbols are joined together into the form of a crown,
representing the monarchic system of state and Liechtenstein's
entrepreneurial Princely House.
Together, the symbols stand for the identity and diversity of the
country of Liechtenstein, united under the Liechtenstein brand.
The short form
Used on the Internet, as a postal code, and to prevent confusion
with other countries.
The color of the brand
The color is a mixture composed of RED and BLUE. Its uniqueness combined with the new LIECHTENSTEIN font commands
attention.
The Liechtenstein brand in brief
• The Liechtenstein brand with its distinctive and unique appearance serves to provide a uniform, recognizable, and consistent
presentation of the country.
• The «Liechtenstein Brand» initiative of the Image Liechtenstein
Foundation is an inter-party project with the goal of repositioning Liechtenstein internationally for the long term.
• The brand does NOT compete with the official presentation of
the State of Liechtenstein. Rather, its primary function is to
serve the presentation of the country for purposes of public
relations and communication.
• The Liechtenstein brand is a powerful aid for all communication measures of the country of Liechtenstein, both at home
and abroad.
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NATIONAL IDENTITY
90 |
National anthem
The archives do not provide exact information on how the
national anthem came into being. According to oral tradition, the
anthem was written by a German priest named Jakob Josef
Jauch. He spoke morning mass in Balzers from 1852 to 1856.
The anthem is sung to the melody of the British national anthem,
«God save the King», by H. Carey.
The lyrics, which originally comprised five verses, was modified
and shortened in 1963 by a resolution of Parliament. It reads:
INDEX
92 |
Agriculture
41, 54, 62, 63
Balzers
9, 12, 38, 67, 73, 74, 90
Bank customer secrecy
46, 59
Banks
7, 38, 59
Bendern
40
Business Cycle Research Institute
Collegial Government
Constitution
Council of Europe
51
9, 36
5, 16, 17, 28, 29, 30, 31, 32, 34, 35, 36, 41, 54
16, 42, 46, 47, 59
Currency Treaty
4
Customs Treaty
16, 18, 44, 46, 52, 58, 63, 78
Dialect
EEA
Eschen
Football
Foreign policy
Forestry
Franc
Fürstensteig
Gamprin
Globalization
9, 24, 39, 84
16, 24, 30, 42, 46, 47, 52, 55, 58, 59, 60, 61
9, 40, 76, 77
7, 77, 81
30, 44, 71
62
4, 7, 9, 16, 18, 44, 52, 55, 56, 58
68
9, 40
59
Hereditary monarchy
9, 28, 34
Hereditary Prince Alois
9, 28, 29
Industry
Kunstmuseum
4, 7, 42, 52, 54, 55, 57, 58, 60
8, 9, 38, 73
Malbun
39, 78
Master Courses
74, 76
Mauren
40
Military
13, 15, 16
Model aerobatics
77
Money laundering
59
Municipalities
7, 9, 17, 20, 24, 36, 45, 50, 51, 56, 66, 72, 73
Music School
73, 74
Napoleon
14, 15, 78
National Library
74
National Museum
38, 75
Nendeln
9, 40, 67
Oberland (Upper Country)
9, 36, 38, 41, 84
Olympic Games
80, 83
Parliament
8, 16, 28, 32, 35, 36
Planken
9, 38, 39
Popular vote
32, 35
Postage stamps
18, 69, 76
Postal Museum
38, 75, 76
Reigning Prince Hans-Adam II
Reigning Prince Johann Adam I
9, 28, 29, 30, 31, 41
12, 16, 26, 30
Ruggell
9, 20, 40, 41, 67, 77
Schaan
9, 38, 66, 67, 74, 76, 77
Schaanwald
40
Schellenberg
9, 10, 12, 13, 14, 16, 26, 28, 30, 40, 41
Schools
48, 50, 51
Skiing
77, 78, 81, 83
SME Center
61
Sovereignty
8, 14, 15, 16, 36, 44
Sports School
81, 82
State budget
55
Taxes
36, 37, 55, 56, 58
Theater am Kirchplatz
38, 74
Three Sisters
20, 68
Trades
52, 54, 55, 60, 61, 66
Triesen
9, 38, 66
Triesenberg
5, 9, 22, 24, 38, 39, 76, 84
United Nations (UN)
16, 30, 42, 46, 47, 59
University of Applied Sciences
Unterland (Lower Country)
Vaduz
Walser
Winegrowing
48, 51, 61
9, 13, 36, 40, 41, 84
8, 9, 10, 16, 19, 26, 30, 37, 38, 66, 73, 74, 77
5, 22, 24, 39, 75, 76, 84
5, 62, 69
| 93
Government
Spokesperson's Office
Press and
Information Office
St. Florinsgasse 3
9490 Vaduz
Liechtenstein
T +423 236 61 80
F +423 236 76 81
[email protected]
St. Florinsgasse 3
9490 Vaduz
Liechtenstein
T +423 236 67 20
F +423 236 64 60
[email protected]
www.skoe.llv.li
www.liechtenstein.li
www.pia.llv.li
www.liechtenstein.li