, showing numerous exclaves
Politics Liechtenstein has a distinctive political system within Europe, combining elements of
absolute monarchy,
representative democracy, and
direct democracy. The
reigning prince retains extensive executive and legislative powers, and exercises considerable influence over the daily conduct of politics and across all three
branches of government. Representative and direct democratic mechanisms operate concurrently: an elected parliament enacts
legislation, while citizens can propose and adopt laws and constitutional changes independently of the legislature. The Prince serves as the head of state and represents Liechtenstein in its international relations, although Switzerland assumes responsibility for much of the country's diplomatic relations. in 1974 In March 2003, a
constitutional referendum approved amendments that expanded the prince's prerogatives, granting him broad veto authority, the power to dismiss the government, and the capacity to rule by emergency decree. The
BBC characterised the resulting institutional framework as making Liechtenstein "Europe's only
absolute monarchy". The
Venice commission of the
Council of Europe issued an extensive report concluding that several provisions were incompatible with prevailing European democratic standards. A further
constitutional referendum in 2012 reaffirmed the prince's powers, with 76% of voters rejecting a proposal to limit the princely veto over legislation approved by referendum. In 2025,
Freedom House's
Freedom in the World survey ranked Liechtenstein 64th out of 194 countries for political rights and 20th for civil liberties, noting that despite the prince's significant political role, human rights and civil liberties are generally well protected. Legislative authority is vested in the unicameral
Landtag, made up of 25 members elected for maximum four-year terms according to a proportional representation formula. Fifteen members are elected from the
Oberland (Upper Country or region) and ten from the
Unterland (Lower Country or region). Parties must receive at least 8% of the national vote to win seats in parliament, i.e., enough for two seats in the 25-seat legislature. Parliament proposes and approves a government, which the Prince formally appoints. Parliament may also pass votes of no confidence in the entire government or individual members. The
government comprises the head of government (
prime minister) and four government councillors (ministers), who are appointed by the Prince upon the proposal of parliament and with its concurrence, and reflect the balance of parties in parliament. The constitution stipulates that at least two government members be chosen from each of the two regions. The members of the government are collectively and individually responsible to parliament; parliament may ask the Prince to remove an individual minister or the entire government, or the Prince may do so unilaterally. Parliament elects from among its members a "Landesausschuss" (National Committee) made up of the president of the parliament and four additional members. The National Committee is charged with performing functions of parliamentary supervision. Parliament shares the authority to propose new legislation with the Prince, and with the citizenry, as both parliament and the citizenry may initiate referendums.
Judicial authority is vested in the ordinary courts (the Regional Court at Vaduz in the first instance, the Princely High Court of Appeal at Vaduz in the second instance, and the Princely Supreme Court as a court of last resort), the Administrative Court, and the Constitutional Court. The Constitutional Court rules on the conformity of laws with the constitution and has five members (and five alternates) appointed by the Reigning Prince.
Foreign relations In the absence of political or military power, Liechtenstein has sought to preserve its
sovereignty over the past 300 years through membership in legal communities.
International cooperation and European integration are therefore constants of Liechtenstein's foreign policy, aimed at continuing to safeguard the country's sovereignty as recognized under international law. Decisive for the domestic legitimacy and sustainability of this foreign policy were and are strong direct-democratic and citizen-oriented decision-making mechanisms, which are anchored in Liechtenstein in the Constitution of 1921. Important historical stages in Liechtenstein's integration and cooperation policy were its accession to the
Confederation of the Rhine in 1806, to the German Confederation in 1815, the conclusion of bilateral customs and currency agreements with the
Habsburg monarchy in 1852, and finally the Customs Treaty with Switzerland in 1923, which was followed by a range of other important bilateral treaties. Post-war economic reconstruction was followed by accession to the Statute of the
International Court of Justice in 1950, Liechtenstein signed the CSCE Helsinki Final Act (today's OSCE) together with 34 other states in 1975, Liechtenstein joined the
Council of Europe in 1978, and Liechtenstein was admitted to the United Nations (UN) on September 18, 1990. In 1991, Liechtenstein joined the European Free Trade Association (EFTA) as a full member, and since 1995 Liechtenstein has been a member of the
European Economic Area (EEA) and the
World Trade Organization (WTO). In 2008, Liechtenstein joined the Schengen/Dublin Agreement together with Switzerland. From an economic and integration policy perspective, relations within the framework of the EEA and the EU occupy a special position in Liechtenstein's foreign policy. The Hereditary Prince of Liechtenstein also participates in the annual
meetings of the heads of state of the German-speaking countries (consisting of EU and non-EU members). Relations with Switzerland are particularly extensive because of the close cooperation in many areas; Switzerland performs tasks in some places that would be difficult for the
Principality to handle on its own because of its small size. Since 2000, Switzerland has appointed an ambassador to Liechtenstein, but he resides in Bern. Liechtenstein's consular representation has been mostly handled by Switzerland since the
Customs Treaty with Switzerland of 1923. Liechtenstein maintains direct diplomatic missions in
Vienna, Bern, Berlin, Brussels, Strasbourg, and
Washington, D.C., as well as Permanent Missions in New York and Geneva to the
United Nations. Currently, diplomatic missions from 78 countries are accredited to Liechtenstein, but mostly reside in Bern. The
Embassy in Brussels coordinates contacts with the European Union, Belgium, and also the
Holy See. For a long time,
diplomatic relations with Germany were maintained through a non-resident ambassador; that is, a contact person who was not permanently resident in Germany. Since 2002, however, Liechtenstein has had a permanent
ambassador in Berlin, while the German embassy in Switzerland is also responsible for the Principality. Liechtenstein's Ministry of Foreign Affairs considers the contacts to be extremely fruitful and important for the country's development, especially on the economic level. Conflicts over the handling of
banking and tax data have repeatedly strained relations with Germany. On 2 September 2009, Liechtenstein and Germany signed an agreement on cooperation and the exchange of information in tax matters. The text of the agreement followed the OECD model agreement and provides for an exchange of information on tax matters upon request as of the 2010 tax year. In addition, Liechtenstein regards Germany as an important partner in safeguarding its interests in European integration. At the cultural level, project sponsorship plays a particularly important role. For example, the Hilti Foundation financed the exhibition "Egypt's Sunken Treasures" in Berlin, and the state donated 20,000 euros following the fire at the Duchess Anna Amalia Library in
Weimar. Liechtenstein is a member of the
Forum of Small States, a group founded in 1992 by Singapore currently containing 108 nations that have fewer than ten million inhabitants at the time of joining. Liechtenstein is a member of the
International Monetary Fund since the annual meeting of
World Bank Group in Washington, D.C. on 21 October 2024.
Security and defence The
Liechtenstein National Police force is responsible for keeping order within the country. It consists of 87 field officers and 38 civilian staff, totaling 125 employees. All officers are equipped with
small arms. The country has one of the world's lowest
crime rates. Liechtenstein's prison holds few, if any, inmates, and those with sentences over two years are transferred to
Austrian jurisdiction. The Liechtenstein National Police maintains a trilateral treaty with Austria and Switzerland that enables close cross-border cooperation among the police forces of the three countries. Liechtenstein follows a policy of
neutrality and is one of the few
countries in the world that maintain no military although its police force maintains a paramilitary force, the Princely Liechtenstein Security Corps, within the organisation that might act as its
de facto army if an invasion of Liechtenstein ever occurred. The corps provides heavy backup for the National Police as well as Honour Guards at the Royal Palace and official functions. However, Liechtenstein can reinstate its military if deemed necessary. The army was abolished for financial reasons soon after the
Austro-Prussian War of 1866, in which Liechtenstein fielded an army of 80 men, although they were not involved in any fighting. No casualties were incurred. The unit numbered 81 upon return due to an Italian military liaison who accompanied the army back home. The demise of the
German Confederation in that war freed Liechtenstein from its international obligation to maintain an army, and parliament seized this opportunity and refused to provide funding for one. The Prince objected, as such a move would leave the country defenceless, but relented on 12 February 1868 and disbanded the force. In 1985, the Swiss Army fired off shells during an exercise and mistakenly burned a patch of forest inside Liechtenstein. The incident was said to have been resolved "over a case of white wine". The Swiss Army later informed Liechtenstein of the incursion and offered official apologies, to which an internal ministry spokesperson responded, "No problem, these things happen." On 20 September 2017, Liechtenstein signed the United Nations
Treaty on the Prohibition of Nuclear Weapons.
Human rights On 1 July 1984, Liechtenstein became the last country in
Europe to grant women the right to vote, following three previous referendums which rejected it in
1968,
1971 and
1973. The
referendum on women's suffrage that year, in which only men were allowed to participate, narrowly passed with 51.3% in favour. In 2024, Liechtenstein passed
same-sex marriage legislation, which entered into force in 2025.
Abortion remains criminalised within Liechtenstein. == Economy ==