Liechtenstein

Abstract

Liechtenstein occupies an area of 160 km2 and has just less than 38,000 inhabitants. It is twice the size of Zurich but with only one-tenth of its population. Since the 1960s, the number of foreigners has increased substantially, and today they represent 34 % of the population and 60 % of the workforce (more than half of them being commuters from neighboring Switzerland and Austria). The Principality of Liechtenstein describes itself as a “constitutional hereditary monarchy based on democratic parliamentary principles.” As a consequence of the Napoleonic wars and the dissolution of the Holy Roman Empire, it gained enlarged sovereignty at first within the new Confederation of the Rhine put together by Napoleon in 1806 and later – after its eclipse – extended it to full sovereign independency. In 1868 Liechtenstein disbanded its army. After World War I, the country abandoned the currency union with Austria and, following a period of transition, replaced it with a currency union with Switzerland. The country has been a full member of the Council of Europe since 1978. In 1991 it joined the European Free Trade Association (EFTA) and in 1995 the European Economic Area, an organization that sees itself as a bridge between EFTA and the European Union (EU). Since that time, Liechtenstein has also participated in programs of the European Union such as Socrates and Leonardo.