01

01 Political situation
of Liechtenstein

Prepared by Kozachuk Olexandra

 02
Politics of
Liechtenstein
Liechtenstein is a principality governed under a
constitutional monarchy. It has a form of mixed
constitution in which political power is shared by the
monarch and a democratically elected parliament.
There is a two-party system (though there are two
minor parties as well) and a form of representative
democracy in which the prime minister and head of
government is responsible to parliament. However the
Prince of Liechtenstein is head of state and exercises
02
considerable political powers.
03 The Rhine plain has always been the focus of settlement.
For centuries the valley was occupied by two independent
lordships of the Holy Roman Empire, Vaduz and
Schellenberg. The principality of Liechtenstein, consisting
of these two lordships, was founded in 1719 and remained
part of the Holy Roman Empire. In 1866 Liechtenstein
became independent. Throughout most of its history,
Liechtenstein was a quiet, maintaining its neutrality in
both World Wars I and II. After World War II, however,
the country underwent a remarkably rapid period of
industrialization.
History of
United Nations (1990), the European Free Trade
formation and Association (1991), the European Economic Area (1995),

development of the and the World Trade Organization (1995).

country In 2011 Liechtenstein acceded to the Schengen Agreement,

one of the EU’s foundational documents.
03
 04
Social stability
Liechtenstein is an internally
stable micro-state and risks
of civil unrest are likely to
remain very low. There is a
low risk of protests, while
disruption caused by
industrial action is also likely
to remain rare.

04
05

The risk of terrorist attacks is likely to remain

very low as a result of Liechtenstein's policy of
neutrality and the country's minimal impact on
05
international relations as well as conflicts.
Despite Liechtenstein's collaboration with
neighbouring countries on security issues, the
country is unlikely to become a major target for
international terrorist groups. There are no Terrorism
domestic terrorist groups operating in the
micro-state.
 06 War risks

Interstate war risks in Liechtenstein will

remain negligible as the country is
neutral and maintains friendly
relationships with Switzerland, Austria,
and Germany. Due to its small size and
the lack of armed forces, Liechtenstein
is not involved in any international
military missions. The country
collaborates closely with Switzerland on
national security issues. 06
 Crime levels in Liechtenstein are likely to
remain very low. The small country is not
directly affected by terrorism but works
closely with fellow Schengen countries to
limit the room for manoeuvre for militant
organisations operating in Europe. Drug

07
dealing and other offences are
Delinquency comparatively rare, while organised crime
groups mostly use the country to deposit
funds. Liechtenstein has taken steps to shed
its image as a haven for criminal funds. As a
member of the European Economic Area
(EEA), it is subject to the European Union's
laws on countering terrorism financing and
money laundering.
07
08

The Principality of Liechtenstein is a tiny, doubly-

landlocked country tucked away between
Switzerland and Austria and with mountain slopes
08
rising above the Rhine valley.

It owes much of its wealth to its traditional status Some about

as a tax haven, though it has in recent years taken
steps to shake off its image as a tax haven and to politic
reposition itself as a legitimate financial centre.

The country has come through a lengthy political

wrangle over the role and power of the hereditary
monarchy.
 09
https://en.wikipedia.org/wiki/Politics_of_Li
echtenstein
References https://www.bbc.com/news/world-europe-
17535108
https://crisis24.garda.com/insights-
intelligence/intelligence/country-
reports/liechtenstein

09
 10

10

Thank you for attention!