Liechtenstein

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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 neighbours. 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 38,000, provides roughly 37,000 jobs. 20,000 cross-border commuters are employed.