History

Recent History

Known as a tax haven, Liechtenstein banned customers from banking money anonymously in 2000, after allegations of money laundering. However, it remains under pressure to introduce more reforms. In 2003, Hans Adam demanded sweeping powers including the power to dismiss the elected government, appoint judges and reject proposed laws. Opponents warned of dictatorship, but the prince threatened to stomp off back to Austria if he didn't get his way, and the population - possibly worried what an empty Schloss Vaduz would do to tourism - backed him in a referendum. The following year, Hans Adam handed the day-to-day running of the country to his son Alois, although he himself remains head of state.

Modern Day History

In 1923, Liechtenstein formed a customs union with Switzerland. Even then, none of the ruling Liechtensteins had bothered to leave their Viennese palace to see the country. It wasn't until 1938 that Prince Franz Josef II became the first monarch to live in the principality, when he and his much-loved wife, Gina, began dramatically transforming a poor rural nation into today's rich banking state. Franz Josef's son, Prince Hans Adam II, ascended the throne on his death in 1989.

Pre 20th Century History

The country's history began when an Austrian prince, Johann Adam Von Liechtenstein, purchased the counties of Schellenberg (1699) and Vaduz (1712) from impoverished German nobles. Soon afterwards, the territory acquired his name and became a principality under the Holy Roman Empire. It finally gained independence in 1866, after its final military engagement in which none of its 80 soldiers was killed. (In fact 81 returned, including a new Italian 'friend'. The army was disbanded soon afterwards.)