Royal storm brews in Liechtenstein

Prince Hans-Adam II threatens to leave home Keystone Archive

Prince Hans-Adam II of Liechtenstein has threatened to go into self-imposed exile, if the government does not agree to give him more political power.

Parliament in Liechtenstein is due to decide whether controversial constitutional reforms submitted by the monarch will be given a green light.

In an interview with the daily newspaper “Liechtensteiner Vaterland” Hans-Adam said he would leave the country and probably move to Vienna if his reforms were not pushed through.

“I love this country, however, this love cannot be one-sided. If I am no longer wanted, I will go,” he said in the interview.

The vote is too close to call because even though a survey showed that the majority of the population opposes the constitutional reform, most Liechtensteiners would hate to see their monarch go.

Princely powers

In his package of reforms, Hans-Adam is calling for the federal court to give up its authority to arbitrate. He also wants to reign under emergency laws for a period of six months and wants the power to sack the whole cabinet after a vote of no confidence.

The dispute between the monarch and the government of Liechtenstein dates back to 1992, when the two squabbled over setting a date for a referendum for membership in the European Economic Area.

At the time, Hans-Adam tried to dissolve the whole parliament and reign under emergency law.

Switzerland’s role

The development of the future politics in this tiny principality is of interest to Switzerland as the two neighbours are economically entwined.

In 1923 Liechtenstein and Switzerland signed a tariff and trade agreement, which has evolved into a full-blown economic, monetary and postal union over the past years.

However, in addition to their economic union, the two countries have a lot in common when it comes to their respective banking systems.

Switzerland and Liechtenstein have recently been faced with international criticism over banking secrecy. The principality was temporarily put on a blacklist by the Organisation for Economic Cooperation and Development (OECD) for harbouring front companies.

However, despite the occasional dodgy business in Liechtenstein, Switzerland can call itself lucky for having such a neighbour, says Reiner Eichenberger, professor of economics at the University of Fribourg.

“It is very important for Switzerland that the pressure to lift the banking secrecy laws is spread out to other countries. Without an ally such as Liechtenstein, Switzerland would be alone in its role as sinner,” he told swissinfo.

He also thinks that Liechtenstein without a monarch would lose out on tourism quite significantly.

“If he really goes, it will have an immense impact on tourism as the country will no longer be the same without a monarch,” Eichenberger said.

Without its monarchy, Liechtenstein would have to rethink its strategy for tourism and find a new way to market the small “Ländle”, he said.

swissinfo