
The Principality
of Liechtenstein was established within the Holy Roman Empire in
1719; 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. However, shortcomings in banking regulatory
oversight have resulted in concerns about the use of the financial
institutions for money laundering.. LOCATION:
Central Europe, between Austria
and Switzerland CLIMATE: Continental;
cold, cloudy winters with frequent snow or rain; cool to moderately
warm, cloudy, humid
summers BORDERS:
Austria 34.9 km, Switzerland 41.1
km