History & Government
Although both the Rhaetians and the Romans held ancient rule over the territory, Liechtenstein’s current monarchy began in 1699, when Prince Johann Adam bought from the local population the Lordship of Schellenberg and later, in 1712, the County of Vaduz. The wily count thereby earned himself a vote in the Diet of Princes, and Liechtenstein was inaugurated as a principality of the Roman Empire in 1719. It’s since been both overrun by Napoleon and absorbed by the German Confederation, but finally gained its independence in 1866.
The fledgling state dissolved its army in 1868, adopted a constitution in 1921, and has been moseying along under its current monarchy ever since. Although it has long political and social ties with Austria, Liechtenstein today aligns itself more closely with Switzerland. (It wasn’t until 1872 that a bridge was built over the Rhine into Switzerland.) The countries partnered up in 1923 to jointly use the Swiss Franc (CHF) as currency, and no border regulations exist between the two.
Prince Franz Josef II died in 1989, officially passing the monarchy to his son, Prince Hans Adam II. Today’s nation operates as a constitutional hereditary monarchy with a democratic and parliamentary foundation. In theory, the monarch and the people govern together. An elected parliament represents the people, but the prince can issue Princely Orders – and thereby disband parliament if need be. The prince also represents the people as Head of State, entering into international agreements as he sees fit.
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