Liechtenstein
The Principality of Liechtenstein was established within the Holy Roman Empire; it became a sovereign state in 1806. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained neutral), the country’s low taxes have spurred outstanding economic growth.
Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial service sector and living standards on a par with its large European neighbors. The Liechtenstein economy is widely diversified with a large number of small businesses. The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association (EFTA) and the EU) since May 1995.
Liechtenstein, with a population of over 34,000, provides roughly 29,000 jobs. 12,000 cross-border commuters are employed. Liechtenstein’s highly specialized industrial companies are competitive worldwide and mainly export their products. An important employer, the industrial sector provides more than 7000 jobs. The largest branch of industry is metal processing. More than 2000 small and medium-size businesses produce for the domestic market and employ about one third of employees. In the last 20 years, the services of the banks and fiduciaries have gained great international importance. Liechtenstein’s economic life has been characterized by social peace for many years. Employers and employees are committed to the social partnership. Full employment has played an important role in this respect.
Liechtenstein Government Website