The Principality of Liechtenstein is a small country in Central Europe, bordered by Austria and Switzerland. Its area is only 160 km², and the population is 35,000 people. Liechtenstein is the richest German-speaking country and enjoys economy with:
- The highest gross domestic product (GDP) in the world;
- The world’s lowest external debt;
- One of the lowest unemployment rates;
- The economic strength is link to its robust financial sector located in the capital, Vaduz, which has been identified as a modern tax haven.
Liechtenstein is a constitutional monarchy; the head of state is the prince. His powers include the right of veto on legislative acts, the right of pardon, the appointment of judges, members of the government, single-handedly pass laws, and represent the country in international relations.
Legislative power belongs to the parliament – the Landtag, consisting of 25 members. Members of the Landtag are elected for a term of 4 years. The executive power is represented by the government, headed by the prime minister, whom the prince appoints. Usually it is the head of the party with the majority in the parliament or the coalition.
The judicial system of Liechtenstein consists of the State Court (the body of constitutional justice), administrative and land courts, the courts of appeal and the highest instance – the Supreme Court of Justice.
The legal system of Liechtenstein was formed under the influence of the Austrian and Swiss. Particularly important was the impact of Swiss trade law on the economic environment of the country.