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a short history of Liechtenstein

Brief History of Liechtenstein

Liechtenstein has a stable and uninterrupted history, and its borders have never been changed since they were set by the Holy Roman Empire in the year 1434, when the Rhine River was established as the border between the empire and the Swiss cantons. Thanks to the fact that the territory of Liechtenstein is geographically removed from the major strategic interests in Europe, it has little impact upon European history. Before the dynasty that's now reigning, the region was under the rule of the Hohenems. The principality, however, took its name from the Liechtenstein dynasty, which came from Lower Austria.

Throughout the long centuries, the dynasty acquired plots of land in Austria, Moravia, Styria and Silesia, which were under the control of various feudal lords from the Habsburg family, closely advised by several Liechtenstein princes. The Liechtenstein family desired to have a seat in the Imperial government. After a certain period of time, the family managed to purchase the small area of Schellenberg and the countship of Vaduz, which enjoyed the political status required, or in other words there was no other feudal lord than the sovereign and the Emperor. In January 1719, the Holy Roman Emperor Charles VI issued a decree according to which Schellenberg and Vaduz were united under the name of the Principality of Liechtenstein, and thus became a sovereign member state of the Holy Roman Empire. Napoleon I invaded a great part of the Holy Roman Empire in 1806, an event that had great consequences for Lichtenstein, as the legal and political systems broke down as the Empire dissolved. At that moment, Liechtenstein ceased to have obligations to any feudal lord and thus the principality became fully sovereign. In July of the same year, the Confederation of the Rhine was founded and the prince of Liechtenstein became a member, while the protector was French Emperor Napoleon I. This ended in October 1813, with the dissolution of the Confederation. Two years later, in June 1815, Liechtenstein joined the German Confederation presided over by the Emperor of Austria.

Liechtenstein developed significantly, and in 1836 its first factory opened, while in 1861 the Savings and Loans Bank and the first cotton-weaving mill were established. In the years 1868 and 1872, two bridges over the Rhine River were constructed, as well as a railway line which crossed the country. The Austro-Prussian War, which broke out in 1866, brought problems to Liechtenstein, as the state was accused of being the cause of the war. Liechtenstein refused to sign a peace treaty and remained at war with Prussia, though no actual conflict ever took place. Liechtenstein remained closely related to the Austrian Empire, and later to Austria-Hungary until the very end of the First World War. The economic devastation that followed the war forced Liechtenstein to organize a customs and monetary union with its other neighbouring country, Switzerland. In 1868, the army of Liechtenstein was disbanded due to financial reasons. When the Austro-Hungarian Empire dissolved and Austria didn't consider itself as successor of the Empire, Liechtenstein was no longer bound to the independent state of Austria.

In the spring of 1938, Austria was annexed to Germany, which caused the ruling Prince Franz I to abdicate, and his young cousin Prince Franz Joseph was appointed as his successor. The abdicating king had a serious reason to do so, as he did not wish to be on the throne if Germany invaded Liechtenstein. His wife was of Jewish descent. The small state had no Nazi party, but did have a Nazi sympathy movement. Liechtenstein remained neutral during the Second World War, but still the Liechtenstein dynasty's hereditary lands in Moravia, Bohemina and Silesia were seized by Poland and Czechoslovakia. These possessions included forests and agricultural land, as well as several family castles. During the Cold War, Czechoslovakia even forbade the citizens of Liechtenstein to enter the country. When the war ended, Liechtenstein gave asylum for some five hundred soldiers from the First Russian National Army, which was a serious gesture as the country was very poor at that time. In its attempt to alleviate the feeding problems and financial straits after the war, the Liechtenstein dynasty sold many of its artistic treasures, including a portrait by Leonard da Vinci.

In the decades that followed, Liechtenstein prospered and economically modernized itself, enjoying low corporate tax rates. Today, the Prince of Liechtenstein is the sixth-wealthiest leader in the world and the country's population enjoys one of the highest standards of living. The country is proud of the fact that it was never involved in any military conflict, and the people perceive their flag as a banner of peace. In July 2007, the Ruling Prince of Liechtenstein, H.S.H. Hans-Adam II and the Prime Minister of Liechtenstein, Omar Hasler, appointed the first two Honorary Consuls in the history of the Principality, Dr. Bruce S. Allen and Mr. Leodis C. Matthews, both in the United States of America.