The Principality of Liechtenstein is a small, doubly landlocked country in Central Europe bordered by Switzerland to its west and by Austria to its east. Being mountainous, it is a winter sports resort. It is also known as a tax haven .

 

 

Geography

Liechtenstein is situated in the Rhine valley in the Alps . The entire western border of Liechtenstein is formed by this river. The eastern part of the country is located at higher altitude, the highest point being the Grauspitz , at 2,599 m (8,527 ft.). Despite its alpine location, prevailing southerly winds make the climate of Liechtenstein rather mild. In winter, the mountain slopes are well suited to winter sports.

Liechtenstein is one of only two double landlocked countries in the world, i.e. a country that is surrounded by other landlocked countries. The other example is Uzbekistan .

Economy

Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialised, free-enterprise economy with a vital financial service sector and living standards on a par with those of the urban areas of its large European neighbours. Low business taxes – the maximum tax rate is 18% – and easy incorporation rules have induced about 73,700 holding or so-called letter box companies to establish nominal offices in Liechtenstein, providing 30% of state revenues.

The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organisation serving as a bridge between the European Free Trade Association (EFTA) and the European Union ) since May 1995 . The government is working to harmonise its economic policies with those of an integrated Europe. Unemployment has doubled since the year 2000 though it stood at only 2.2% in the third quarter of 2004. This represents the lowest rate in the European Economic Area.

Demographics

Liechtenstein is the fourth smallest country of Europe, after the Vatican City , Monaco , and San Marino . Its resident population is approximately one-third foreigners, mainly Germans , Austrians , and Swiss .

The official language is German , though most speak an Alemannic dialect of German. About 76% of the population is Roman Catholic , 7% is Protestant .

Transport

There are about 250 km of roads in Liechtenstein, and 9.5 km of railway. The railway is operated by the Austrian Federal Railways as part of the route between Feldkirch , Austria , and Buchs SG , Switzerland . Four stations in Liechtenstein, at Schaan-Vaduz, Forst Hilti, Nendeln, and Schaanwald, are served by an irregular stopping-train service between Feldkirch and Buchs. EuroCity and other long distance international trains also use the route, but they do not call at Liechtenstein stations. Liechtenstein Bus is a subsidiary of the Swiss Postbus system, and connects to the Swiss bus network at Buchs SG and Sargans .

Sport

Liechtenstein football teams play in the Swiss football leagues. The Liechtenstein Cup allows access to one Liechtenstein team every year in the UEFA Cup -- FC Vaduz , a team playing in the Swiss Challenge League (i.e. the second level of Swiss football) is the most successful team in the Cup, and scored their greatest success in the European Cup Winners' Cup in 1996 when they defeated the Latvian team FC Universitate Riga by 1:1 and 4:2, to go on to a lucrative fixture against Paris St Germain , which they lost 0:4 and 0:3.

The Liechtenstein national football team has traditionally been regarded as an easy target for any team drawn against them. In the autumn of 2004 , however, in an astonishing week they defeated Luxembourg by 4 goals to 0 in Luxembourg in a qualification match for the 2006 World Cup , and went on four days later to draw 2:2 with Portugal , who had only a few months earlier been the losing finalists in the European Championships .

As an alpine country, the main opportunity for Liechtensteiners to excel is in winter sports such as downhill skiing : Hanni Wenzel won two Olympic titles in 1980 .