Liechtenstein in the context of "European single market"

⭐ In the context of the European single market, Liechtenstein is considered


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⭐ Core Definition: Liechtenstein

Liechtenstein (/ˈlÉȘktənstaÉȘn/ , LIK-tən-styne; pronounced [ˈlÉȘçtn̩ʃtaÉȘn] ; Alemannic German: Liachtaschta), officially the Principality of Liechtenstein (German: FĂŒrstentum Liechtenstein [ˈfʏʁstnÌ©tuːm ˈlÉȘçtn̩ʃtaÉȘn] ), is a doubly landlocked country in the Central European Alps. It is located between Austria to the east and north-east and Switzerland to the north-west, west and south. Formed in 1719, Liechtenstein became fully independent upon the dissolution of the German Confederation in 1866. Liechtenstein is a monarchy headed by the prince of Liechtenstein. Hans-Adam II, Prince of Liechtenstein has reigned over Liechtenstein since 1989. Liechtenstein is Europe's fourth-smallest country, with an area of just over 160 square kilometres (62 square miles) and a population of 41,389. It is the world's smallest country to border two countries, and is one of the few countries with no debt. Its official language is German.

Liechtenstein is divided into 11 municipalities. Its capital is Vaduz, and its largest municipality is Schaan. It is a member of the United Nations, the European Free Trade Association, and the Council of Europe. It is not a member state of the European Union, but it participates in both the Schengen Area and the European Economic Area. It has a customs union and a monetary union with Switzerland, with its usage of the Swiss franc. A constitutional referendum in 2003 granted the monarch greater powers, including the power to dismiss the government, nominate judges and veto legislation.

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In this Dossier

Liechtenstein in the context of European Single Market

The European single market, also known as the European internal market or the European common market, is the single market comprising mainly the 27 member states of the European Union (EU). With certain exceptions, it also comprises Iceland, Liechtenstein, Norway (through the Agreement on the European Economic Area), and Switzerland (through sectoral treaties). The single market seeks to guarantee the free movement of goods, capital, services, and people, known collectively as the four freedoms of the European Union. This is achieved through common rules and standards that all participating states are legally committed to follow.

Any potential EU accession candidates are required to make association agreements with the EU during the negotiation, which must be implemented prior to accession. In addition, through three individual agreements on a Deep and Comprehensive Free Trade Area (DCFTA) with the EU, Georgia, Moldova, and Ukraine have also been granted limited access to the single market in selected sectors. Turkey has access to the free movement of some goods via its membership in the European Union–Turkey Customs Union. The United Kingdom left the European single market on 31 December 2020. An agreement was reached between the UK Government and European Commission to align Northern Ireland on rules for goods with the European single market, to maintain an open border on the island of Ireland.

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Liechtenstein in the context of Microstate

A microstate or ministate is a sovereign state having a very small population or land area, usually both. However, the meanings of "state" and "very small" are not well-defined in international law. Some recent attempts to define microstates have focused on identifying qualitative features that are linked to their size and population, such as partial delegation of their sovereignty to larger states, such as for international defense.

Commonly accepted examples of microstates include five historic European microstates: Andorra, Liechtenstein, Monaco, San Marino, and Vatican City. Malta and Luxembourg are sometimes included in that list but are generally considered too populous to be genuine microstates. Other examples are small, isolated island states in the Pacific Ocean: Nauru, Palau, Niue, Cook Islands and Tuvalu. Some small Caribbean countries such as Saint Kitts and Nevis, Barbados, Antigua and Barbuda, Grenada, Saint Vincent and the Grenadines may be considered microstates by some but are often not included due to them being grouped together as small island countries. Singapore and Bahrain are sometimes considered microstates but some argue are too populous, self reliant or powerful to be considered true microstates and their island status can play an important factor too.The smallest political entity recognized as a sovereign state is Vatican City, with fewer than 1,000 residents and an area of only 49 hectares (120 acres). Some microstates – such as Singapore, Monaco and Vatican City – are city-states consisting of a single municipality.

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Liechtenstein in the context of Landlocked country

A landlocked country is a country that has no territory connected to an ocean or whose coastlines lie solely on endorheic basins. Currently, there are 44 landlocked countries, two of them doubly landlocked due to being surrounded by other landlocked nations (Liechtenstein and Uzbekistan), and three landlocked de facto states in the world. Kazakhstan is the world's largest landlocked country, Kyrgyzstan is the farthest landlocked country from any ocean, and Ethiopia is the world's most populous landlocked country.

Generally, being landlocked creates political and economic disadvantages that having access to international waters would avoid. For this reason, nations large and small throughout history have fought to gain access to open waters, even at great expense in wealth, bloodshed, and political capital.

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Liechtenstein in the context of European Free Trade Association

The European Free Trade Association (EFTA) is a regional trade organisation and free trade area consisting of four European states: Iceland, Liechtenstein, Norway and Switzerland. The organisation operates in parallel with the European Union (EU), and all four member states participate in the European single market and are part of the Schengen Area. They are not, however, party to the European Union Customs Union.

EFTA was historically one of the two dominant western European trade blocs, but is now much smaller and closely associated with its historical competitor, the European Union. It was established on 3 May 1960 to serve as an alternative trade bloc for those European states that were unable or unwilling to join the then European Economic Community (EEC), the main predecessor of the EU. The Stockholm Convention (1960), to establish the EFTA, was signed on 4 January 1960 in the Swedish capital by seven countries (known as the "Outer Seven": Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom). A revised Convention, the Vaduz Convention, was signed on 21 June 2001 and entered into force on 1 June 2002.

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Liechtenstein in the context of European Economic Area

The European Economic Area (EEA) was established via the Agreement on the European Economic Area, an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Association (EFTA). The EEA links the EU member states and three of the four EFTA states (Iceland, Liechtenstein, and Norway) into an internal market governed by the same EU laws. These rules aim to enable free movement of persons, goods, services, and capital within the European single market, including the freedom to choose residence in any country within this area. The EEA was established on 1 January 1994 upon entry into force of the EEA Agreement. The contracting parties are the EU, its member states, and Iceland, Liechtenstein, and Norway. New members of EFTA would not automatically become party to the EEA Agreement, as each EFTA State decides on its own whether it applies to be party to the EEA Agreement or not. According to Article 128 of the EEA Agreement, "any European State becoming a member of the Community shall, and the Swiss Confederation or any European State becoming a member of EFTA may, apply to become a party to this Agreement. It shall address its application to the EEA Council." EFTA does not envisage political integration. It does not issue legislation, nor does it establish a customs union. Schengen is not a part of the EEA Agreement. However, all of the four EFTA States participate in Schengen and Dublin through bilateral agreements. They all apply the provisions of the relevant acquis.

The EEA Agreement is a commercial treaty and differs from the EU Treaties in certain key respects. According to Article 1 its purpose is to "promote a continuous and balanced strengthening of trade and economic relation". The EFTA members do not participate in the Common Agricultural Policy or the Common Fisheries Policy.

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Liechtenstein in the context of Switzerland

Switzerland, officially the Swiss Confederation, is a landlocked country located at the intersection of Central, Western, and Southern Europe. It is bordered by Germany to the north, France to the west, Austria and Liechtenstein to the east, and Italy to the south. Switzerland is geographically divided among the Swiss Alps, the Swiss Plateau, and the Jura mountains; the Alps cover most of the country's territory, whereas the majority of its 9 million people are concentrated on the plateau, which hosts many of the largest cities and economic centres, including Zurich, Geneva, Basel, Bern, Lausanne, Winterthur, and Lucerne.

Switzerland is a federal republic composed of 26 cantons, with Bern serving as the federal city and the seat of the national government. The country encompasses four principal linguistic and cultural regions—German, French, Italian, and Romansh—reflecting a long-standing tradition of multilingualism and cultural pluralism. Swiss national identity nonetheless remains fairly cohesive, rooted in a shared historical background, common values such as federalism and direct democracy, and Alpine symbolism. Swiss nationhood transcends language, ethnicity, and religion, leading to Switzerland being described as a Willensnation ("nation of volition") rather than a conventional nation state.

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Liechtenstein in the context of Switzerland–European Union relations

Switzerland is not a member state of the European Union (EU). It is associated with the Union through a series of bilateral treaties in which Switzerland has adopted various provisions of European Union law in order to participate in the Union's single market, without joining as a member state. Among Switzerland's neighbouring countries, all but one (the microstate Liechtenstein) are EU member states.

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Liechtenstein in the context of Deep and Comprehensive Free Trade Area

The Deep and Comprehensive Free Trade Areas (DCFTA) are three free trade areas established between the European Union, and Georgia, Moldova, and Ukraine respectively. The DCFTAs are part of each country's EU Association Agreement. They allow Georgia, Moldova, and Ukraine access to the European Single Market in selected sectors and grant EU investors in those sectors the same regulatory environment in the associated country as in the EU. The agreements with Moldova and Georgia have been ratified and officially entered into force in July 2016, although parts of them were already provisionally applied. The agreement with Ukraine was provisionally applied since 1 January 2016 and formally entered into force on 1 September 2017.

Unlike standard free trade areas, the DCFTA is aimed to offer the associated country the "four freedoms" of the EU Single Market: free movement of goods, services, capital, and people. Movement of people however, is in form of visa-free regime for short stay travel, while movement of workers remains within the remit of the EU Member States. The DCFTA is an "example of the integration of a Non-EEA-Member into the EU Single Market".

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Liechtenstein in the context of Alps

The Alps (/Êlps/) are some of the highest and most extensive mountain ranges in Europe, stretching approximately 1,200 km (750 mi) across eight Alpine countries (from west to east): Monaco, France, Switzerland, Italy, Liechtenstein, Germany, Austria and Slovenia.

The Alpine arch extends from Nice on the western Mediterranean to Trieste on the Adriatic and Vienna at the beginning of the Pannonian Basin. The mountains were formed over tens of millions of years as the African and Eurasian tectonic plates collided. Extreme shortening caused by the event resulted in marine sedimentary rocks rising by thrusting and folding into high mountain peaks such as Mont Blanc and the Matterhorn.

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