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LIECHTENSTEIN
Compiled from the October 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes. Official Name: PROFILEGeographyArea: 61.7 sq. miles. (160 sq km.); about the size of Washington, DC. Cities: Capital—Vaduz. Terrain: 66% mountains, the remainder hills and plateau situated next to the Rhine. Climate: continental; cold, cloudy winters with frequent snow or rain; cool to moderately warm, cloudy, humid summers. PeopleNationality: Noun – Liechtensteiner(s), adjective—Liechtenstein. Population: (2001) 33,525 of which 34.3% foreigners, mainly Swiss, Austrians and Germans. Annual population growth rate: 2.1%. Ethnic groups: Liechtensteiners, Swiss, Austrians and Germans. Religions: Roman Catholic 80.4%, Protestant 7.1%, Others 12.5%. Languages: German (official), Alemannic dialect. GovernmentType: Hereditary constitutional monarchy. Independence: 23 January 1719 Imperial Principality of Liechtenstein established; 12 July 1806 established independence from the Holy Roman Empire. Constitution: 5 October 1921. Branches: Executive—chief of state: Prince Hans Adam II (since 13 November 1989, but already assumed executive powers since 26 August 1984); Heir Apparent Prince Alois, son of the monarch, was born on June 11, 1968. Alois was appointed the permanent representative of the Prince on August 15, 2004. Head of government: Otmar Hasler (since 5 April 2001). Cabinet: Five cabinet members. The cabinet is elected by the Diet, and approved by the Prince. Legislative—Unicameral Diet or Landtag (25 seats; members are elected by direct popular vote under proportional representation to serve four-year terms). Judicial—District Court (low), Superior Court (medium), Supreme Court (high). Administrative subdivisions: The country is subdivided into 11 districts. Political parties: Fatherland Union (VU), Progressive Citizens' Party (FBP), and the Free List (FL). Currency: Swiss Franc. National holiday: Assumption Day, 15 August. EconomyGDP: (2002) __BODY__.8 billion, down from $2.6 billion in 1999. Annual growth rate: N/A. Unemployment: 1.68% (617 persons). Avg. inflation rate: (2003) 0.7%—Same as in Switzerland because of the customs union. Agriculture: wheat, barley, corn, potatoes, livestock, dairy products. Industry: electronics, metal manufacturing, textiles, ceramics, pharmaceuticals, food products, precision instruments, tourism. Trade: (2002) Exports—__BODY__.8 billion, main products—small specialty machinery, dental products, stamps, hardware, pottery, major markets – U.S., Germany, Switzerland, France, Italy, Taiwan, Japan, Austria and Great Britain. Imports—$877 million, main products—machinery, metal goods, textiles, foodstuffs, motor vehicles, major suppliers—EU countries, Switzerland. HISTORYThe Austrian Liechtenstein family acquired the fiefs of Vaduz and Schellenberg in 1699 and 1713 respectively, and they became an independent principality under the Holy Roman Empire in 1719 under the name Liechtenstein. The French, under Napoleon, occupied the country for a few years, but Liechtenstein regained its independence in 1815 within the new German Confederation. In 1868, after the Confederation In 1919, Liechtenstein entrusted its external relations to neutral Switzerland. After World War II, Liechtenstein became increasingly important as a financial center, and the country became more prosperous. In 1989, Prince Hans Adam II succeeded his father to the throne and in 1996 settled a long-running dispute with Russia over the Liechtenstein family's archives, which had been confiscated during the Soviet occupation of Vienna in 1945 and later moved to Moscow. In 1978, Liechtenstein became a member of the Council of Europe and then joined the UN in 1990, the European Free Trade Association (EFTA) in 1991, and both the European Economic Area (EEA) and World Trade Organization (WTO) in 1995. GOVERNMENTAccording to the Constitution, the government is a collegiate body and consists of the head of government and four governmental councilors. The head of government and ministers are appointed by the Prince, following the proposals of the Parliament. Amendments to the constitution or new law have to be adopted by parliament, signed by both the Prince and the Head of Government, and published in the Principality's Law Gazette. Prince Hans Adam II is the Head of State. He in entitled to exercise his right to state leadership in accordance with the provisions of the constitution and of other laws. He represents the state vis-à-vis foreign states. He signs international treaties either in person or delegates this function to a plenipotentiary. Some treaties under international law only become valid when they have been ratified by parliament. The Prince's involvement in legislation includes the right to take initiatives in the form of government bills and the right to veto parliamentary proposals. The Prince has the power to enact princely decrees. Emergency princely decrees are possible when the security and welfare of the country is at stake. A countersignature by the Head of Government is nevertheless required. The Prince has the right to convene and adjourn parliament and, for serious reasons, to adjourn it for three months or to dissolve it. On the basis of the names put forward by parliament, the Prince nominates the government, district and high court judges, the judges of the Supreme Court, and the presidents and their deputies of the Constitutional Court and of the Administrative Court of Appeal. The Prince's other authorities include exercising the right to mitigate and commute punishments that have been imposed with legal force and the abolition—i.e. the dismissal—of investigations that have been initiated. All judgments are issued in the name of the Prince. Citizens elect the parliament directly under a system of proportional representation. Until 1989, 15 members represented the population of the two constituencies (6 for the lowland area and 9 for the highland area). Since 1989 the lowland constituency has been entitled to have 10 members and the highland area 15 members. The Parliament's main task is to discuss and adopt resolutions on constitutional proposals and draft government bills. It has the additional duties of giving its assent to important international treaties, of electing members of the government, judges and board members of the Principality's institutions, setting the annual budget and approving taxes and other public charges, and supervising the administration of the state. The Parliament observes its rights and duties in the course of sessions of the whole parliament and through the parliamentary commissions that it elects. All members of parliament exercise their mandates in addition to their normal professions or occupations. The President of parliament and his deputy are both elected at the opening meeting for the current year. The President convenes the individual meetings during the session, leads them and represents parliament externally. During the parliamentary recess—normally from January to February/March—a "state committee" assumes parliament's duties, and such a committee must also be elected in the case of any adjournment or dissolution of parliament. A "state committee" consists of the President of parliament and four other members. The duties and working procedures of parliament are laid down in the constitution and in parliament's standing orders. The government of Liechtenstein is based on the principle of collegiality, namely of colleagues collaborating with each other. The government consists of the Head of Government and four Councilors. The members of the government are proposed by the parliament and are appointed by the Prince. Only men or women born in Liechtenstein, and who are eligible to be elected to parliament, may be elected to the government committee. The two electoral areas of the country, the highlands and the lowlands, are entitled to at least two members of the government, and their respective deputies must come from the same area. POLITICAL CONDITIONSThe political parties are the moving forces with regard to the composition of the government and in the parliament. For the 2001 – 2005 legislature period of office one Councilor and three deputies are women.
From 1938 to 1997 Liechtenstein had a coalition government. Until a few years ago, there were only two parties in parliament, the Fatherland Union and the Progressive Citizen's Party. Liechtenstein's distinctive form of coalition government came to an end in April 1997. The Fatherland Union took sole responsibility for the government during the 1997 to 2001 parliament, with its members filling all the positions on the government committee. Since 2001, it has been the Progressive Citizen's Party that has provided all the members of the government. The minority parties, as opposition parties, act as a check on the government in parliament and on parliamentary commissions. The Liechtenstein electorate on March 16, 2003 endorsed Prince Hans-Adam II's proposal for a revision of the Liechtenstein Constitution with 64.3 percent of votes. The Prince now has the power to dissolve Parliament and appoint an interim government, dismiss individual members of Government, and veto any parliamentary legislation by not signing the bill within six months. Without the approval of the reigning prince, no further constitutional amendments can be adopted, except in the case of a referendum abolishing the royal house. The Prince now also has final approval on the appointment of judges, and the State Court loses its key competence to mediate between the Government and the Prince on constitutional matters. The Council of Europe decided against introducing a formal monitoring procedure for the new constitutional order but will maintain an open dialogue with the Liechtenstein Parliament. rincipal Government OfficialsLast Updated: 10/27/03 Head of State: Hans, Adam II, Prince Liechtenstein maintains an embassy in the United States at 1300 Eye Street, NW, Washington, DC 20005, Telephone (202) 216-0460. ECONOMYSince the signing of the Customs Treaty in 1924, Liechtenstein and Switzerland have represented one mutual economic area. Therefore, the borders between those states are open. The country also uses the Swiss franc as its national currency, and Swiss customs officers secure its border with Austria. Liechtenstein is a member of EFTA and joined the European Economic Area (EEA) in 1995 in order to benefit from the EU internal market. The liberal economy and tax-system make Liechtenstein a safe, trustworthy and success-oriented place for private and business purposes, especially with its highly modern, internationally laidout infrastructure and nearby connections to the whole world. The Principality of Liechtenstein has gone through economic and cultural development in the last 40 years like no other Western country. In this short period of time Liechtenstein developed from mainly an agricultural state to one of the most highly industrialized countries in the world. Besides its efficient industry, there is also as a strong services sector. Four out of ten employees work in the services sector, a relatively high proportion of whom are foreigners, including those who commute across the border from the neighboring states of Switzerland and Austria. Industrial exports doubled in ten years from __BODY__.4 billion (SFr. 2.2 billion) in 1990 to $2.9 billion (SFr. 4.6 billion) in 2000, but later dropped to __BODY__.8 billion (SFr.2.8 billion) in 2002. 12.7% of Liechtenstein's goods are exported to Switzerland, 42.1% to the EU, and 45.2% to the rest of the world. Liechtenstein imports more than 90% of its energy requirements. The Liechtenstein industry sector contributes to 40% of the country's GDP, followed by banking and finance (30%), services (25%), and agriculture (5%). In 2002, the U.S. was the third most important trading partner for Liechtenstein, with approximately $334 million (SFr. 434 million) worth of imports and $35 million (SFr.44.5 million) for exports. Germany was first with a total trade value of $747 million (SFr. 971 million) and Austria third with $454 million (SFr. 590 million). Although Switzerland is an important trading partner, trade statistics are unavailable because both countries share a customs union. Approximately 5% of the country's revenue is invested in research and development, one of the driving forces of the success of Liechtenstein's economy. Total R&D spending in 2000 rose by 20.7% to approximately $149 million (194 million SFr.). The Principality of Liechtenstein is also known as an important financial center, primarily because it specializes in financial services for foreign entities. The country's low tax rate, loose incorporation and corporate governance rules, and traditions of strict bank secrecy have contributed significantly to the ability of financial intermediaries in Liechtenstein to attract funds from outside the country's borders. The same factors made the country attractive and vulnerable to money launderers, although late 2000 legislation has strengthened regulatory oversight of illicit funds transfers. Liechtenstein has chartered 17 banks, 3 non-bank financial companies, and 71 public investment companies, as well as insurance and reinsurance companies. Its 270 licensed fiduciary companies and 81 lawyers serve as nominees for, or manage, more than 75,000 entities (primarily corporations, institutions, or trusts), mostly for non-Liechten-stein residents. Approximately one-third of these entities hold the controlling interest in other entities, chartered in countries other than Liechtenstein. The Principality's laws permit the corporations it charters to issue bearer shares. Until recently, the Principality's banking laws permitted banks to issue numbered accounts, but new regulations require strict know-your-customer practices for all accounts. DEFENSE AND FOREIGN RELATIONSDefense is the responsibility of Switzerland. In 1978, Liechtenstein became a member of the Council of Europe and then joined the UN in 1990, the European Free Trade Association (EFTA) in 1991, and both the European Economic Area (EEA) and World Trade Organization (WTO) in 1995. U.S.-LIECHTENSTEIN RELATIONSThe relations between the two countries are good. The two countries in 2002 signed a mutual legal assistance treaty focused largely on jointly combating money laundering and other illegal banking activities. The U.S. does not have an embassy in Liechtenstein, but the U.S. Ambassador to Switzerland is also accredited to Liechtenstein. Principal U.S. Embassy OfficialsBERN (E) Address: Jubilaeumsstr. 93, 3005 Bern; APO/FPO: No APO; Phone: 41-31-357-7011; Fax: 41-31-357-7344; Workweek: Mon.-Fri., 8:30-5:30; Website: http://www.usembassy.ch
TRAVELConsular Information Sheet–SwitzerlandOctober 21, 2004 Country Description: Switzerland is a highly developed democracy. Liechtenstein is a democratically run constitutional monarchy. Entry/Exit Requirements: A passport is required for travel to both Switzerland and Liechtenstein. A visa is not required for U.S. citizens for stays of up to 90 days in either country. For more information on entry requirements for both countries, travelers may contact the Embassy of Switzerland at 2900 Cathedral Avenue, N.W., Washington, D.C. 20008, telephone (202) 745-7900, or the nearest Swiss Consulate General in Atlanta, Chicago, Houston, Los Angeles, New York, or San Francisco. Additional information for both countries is available at http://www.swissemb.org. In an effort to prevent international child abduction, many governments have initiated new procedures at entry/exit points. These procedures often include requiring documentary evidence of relationship and permission for a child to travel, if the parent(s) or legal guardian is not present. Having such documentation on hand, even if not required, may facilitate entry/departure. Dual Nationality: U.S. citizens who are also considered by the Swiss Government to have Swiss citizenship may be subject to compulsory military service and other requirements while in Switzerland. Those who might be affected should inquire at a Swiss Embassy or Consulate regarding their status. In some instances, dual nationality may hamper U.S. government efforts to provide protection abroad. In addition to being subject to all Swiss laws affecting U.S. citizens, dual nationals may also be subject to other laws that impose special obligations on Swiss citizens. For additional information, see the Consular Affairs home page on the Internet at http://travel.state.gov for our Dual Nationality flyer. Safety and Security: The potential for specific threats or acts of violence involving American citizens in Switzerland is remote; nonetheless, travelers should always review their security practices and be alert to their surroundings. The Consular Agencies in Zurich and Geneva may close periodically to assess their security situations. Americans are encouraged to check the Consular Affairs home page for updated travel and security information. For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found. Up to date information on security can also be obtained by calling 1-888-407-4747 toll free in the United States, or, for callers outside the United States and Canada, a regular toll line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). Crime: Switzerland has a low rate of violent crime. However, pick-pocketing and purse snatching do occur in the vicinity of train and bus stations, airports, and some public parks, especially during peak tourist periods (such as summer and Christmas) and when conferences, shows, or exhibits are scheduled in major cities. Liechtenstein has a low crime rate. Travelers may wish to exercise caution on trains, especially on overnight trains to neighboring countries. Even locked sleeping compartments can be entered by thieves, who steal from passengers while they sleep. The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. U.S. citizens may refer to the Department of State's pamphlet, A Safe Trip Abroad, to promote a trouble-free journey. The pamphlet is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, and via the Internet at http://www.gpoaccess.gov or via the Bureau of Consular Affairs home page at http://travel.state.gov. If you are the victim of a crime overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of a crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal process and to find an attorney if needed. Medical Facilities and Insurance: Good medical care is widely available. Serious medical problems requiring hospitalization and/or medical evacuation to the United States can cost many thousands of dollars. Doctors and hospitals often expect immediate cash payment for health services. The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Furthermore, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations. When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page. Other Health Information: Information on vaccinations and other health precautions may be obtained from the Centers for Disease Control and Prevention's hotline for International Travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via their Internet site at http://www.cdc.gov. For information about outbreaks of infectious diseases abroad consult the World Health Organization's web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith. Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Switzerland and Liechtenstein is provided for general reference only, and may not be totally accurate in a particular location or circumstance. Safety of public transportation: Excellent Although many roads are mountainous and winding, road safety standards are high. In some mountain areas, vehicle snow chains are required in winter. Road travel can be more dangerous during summer, winter holidays, the Easter break and Whitsunday weekend (late spring) because of increased traffic. Travel on expressways (indicated by green signs with a white expressway symbol) requires purchase of a sticker or "vignette", which must be affixed to the car's windshield. Vignettes can be purchased at most border crossing points, gas stations and at Swiss post offices. Drivers using the highway system without a vignette are subject to hefty fines levied on the spot. Public transportation in Switzerland and Liechtenstein is generally excellent. Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Swiss civil aviation authority's oversight of Switzerland's air carrier operations as category 1—in compliance with international aviation safety standards. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA Internet website at http://www.faa.gov/avr/iasa/index.cfm. Customs Regulations: Switzerland's customs authorities encourage the use of an ATA (Admission Temporaire/Temporary Admission) Carnet for the temporary admission of professional equipment, commercial samples, and/or goods for exhibitions and fair purposes. ATA Carnet Headquarters, located at the U.S. Council for International Business, 1212 Avenue of the Americas, New York, N.Y. 10036, issues and guarantees the ATA Carnet in the United States. For additional information call 212-354-4480, send an email to atacarnet@uscib.org, or visit http://www.uscib.org for details. In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines. A current list of those countries with serious problems in this regard can be found here. Criminal Penalties: U.S. citizens are subject to the laws of the country in which they are traveling. Sometimes these laws can differ significantly from those in the United States and may not afford the protections available to individuals under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. In Switzerland and Liechtenstein, penalties for possession, use, and dealing in illegal drugs are strict, and convicted offenders can expect jail sentences and heavy fines. Under the Protect Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or permanent resident alien, to engage in illicit sexual conduct in a foreign country with a person under the age of 18, whether or not the U.S. citizen or lawful permanent resident alien intended to engage in such illicit sexual conduct prior to going abroad. For purposes of the PROTECT Act, illicit sexual conduct includes any commercial sex act in a foreign country with a person under the age of 18. The law defines a commercial sex act as any sex act, on account of which anything of value is given to or received by a person under the age of 18. Under the Protection of Children from Sexual Predators Act of 1998, it is a crime to use the mail or any facility of interstate or foreign commerce, including the Internet, to transmit information about a minor under the age of 16 for criminal sexual purposes that include, among other things, the Children's Issues: Since July 1988, Switzerland has been party to the Hague Convention on the Civil Aspects of International Child abduction. For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/family/index.html or telephone Overseas Citizens Services at 1-888-407-4747. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except federal holidays). Callers who are unable to use this toll-free number, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328. Registration/Embassy and Consulate Locations: Americans living or traveling in Switzerland are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and obtain updated information on travel and security within Switzerland. Americans without Internet access may register directly with the nearest U.S. Embassy, Consulate or Consular Agent in Geneva and Zurich. The U.S. Embassy in Bern is located at Jubilaeumstrasse 93, 3005 Bern; Tel. (41)(31) 357-7011, fax (41)(31) 357-7280. The Embassy's 24 hour emergency telephone number is (41)(31) 357-7777. The Embassy's e-mail address is bernacs@state.gov. The U.S. Embassy website at http://www.us-embassy.ch answers many questions of interest to Americans visiting and residing in Switzerland. The U.S. Consular Agency in Zurich is located at the American Center of Zurich, Dufourstrasse 101, 8008 Zurich; Tel. (41)(1) 422-2566, fax (41) (1) 383-9814. The U.S. Consular Agency in Geneva is located at the American Center Geneva, 7 Rue Versonnex, 1207 Geneva; Tel. (41)(22) 840-5160, fax (41)(22) 840-5162, e-mail: consulate.us@ties.itu.int There is no U.S. Embassy or Consulate in Liechtenstein. For assistance and information on travel and security in Liechtenstein, U.S. citizens may contact or register at the U.S. Embassy in Bern at the address above. |
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