Liechtenstein

Liechtenstein (, LIK-tən-styne; pronounced [ˈlɪçtn̩ʃtaɪn] ; Alemannic German: Liachtaschta), officially the Principality of Liechtenstein (German: Fürstentum Liechtenstein [ˈfʏʁstn̩tuːm ˈlɪçtn̩ʃtaɪn] ), 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. The official language of Liechtenstein 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. Liechtenstein has a strong financial sector centred in Vaduz. It was once known as a billionaire tax haven, culminating in a tax affair in 2008, but the principality has since made significant efforts to shed this reputation. An Alpine country, Liechtenstein is mountainous, making it a winter sport destination.