Bilateral relations
Germany?Liechtenstein relations
are the
diplomatic relations
between
Germany
and
Liechtenstein
. Both states are members of the
Organization for Security and Cooperation in Europe
(OSCE), the
Council of Europe
and the
European Economic Area
.
Liechtenstein is the only
German-speaking state
in which
German
is the sole official and
national language
. The heads of state of both countries participate in the annual
meeting of German-speaking countries
.
[1]
History
[
edit
]
During
Roman times
, today's Liechtenstein territory was part of the
Roman province
of
Raetia
, just like today's
Grisons
,
Vorarlberg
,
southern Bavaria
and
Upper Swabia
. In the 8th century, Raetia - and thus today's Liechtenstein territory - was incorporated into the
Frankish Empire
. When it was divided, it became part of the
Eastern Frankish Empire
, which in turn became the
Holy Roman Empire
in 962. Until the dissolution of the Empire in 1806, Liechtenstein remained a part of it, which accounts for the historical depth and closeness of German-Liechtenstein relations.
[2]
In 1806 Liechtenstein gained its sovereignty, but as a member of the
Confederation of the Rhine
it maintained intensive contacts with the German states. Relations with
Austria
were particularly close, and a customs treaty was concluded with this neighboring state in 1852. During the
First World War
, Liechtenstein remained neutral but held sympathies to the
Central Powers
.
[3]
In the post-war period, the principality broke away from Austria and concluded a customs treaty with
Switzerland
.
[4]
[5]
In 1939, the
National Socialist
German National Movement in Liechtenstein
attempted to
instigate a coup
in Liechtenstein in order to provoke it's annexation into
Nazi Germany
with unofficial support from German officials in
Feldkirch
, but it failed.
[6]
[7]
[8]
Liechtenstein remained neutral during the
Second World War
. Although there were planning plots by the
German Wehrmacht
to
annex Liechtenstein
, particularly in
Operation Tannenbaum
, these were never implemented.
[9]
During the war,
Franz Joseph II
periodically sent congratulatory letters to Adolf Hitler throughout the war, such as the thwarting of the
20 July plot
, of which he briefly replied.
[10]
In the postwar period, Liechtenstein transformed from a poor agricultural state into a service-providing economy. Today, the main
economic sector
is in the
tertiary sector
:
banks
,
trustees
, and other
financial services
. Liechtenstein levies comparatively low taxes, which is why it is considered a
tax haven
by the German government, among others. In total, funds of hundreds of German residents amounting to several billion
euros
are said to have flowed through Liechtenstein's
LGT Bank
and other banks, primarily into
foundations
set up under local law.
[11]
In the
2008 Liechtenstein tax affair
numerous German
tax evaders
were exposed: Internal bank data had been illegally stolen from LGT Bank by a former bank employee. The purchase of the data by Germany strained diplomatic relations with Liechtenstein. As a result of the Liechtenstein tax affair, loans to German
museums
already promised by the Princely
House of Liechtenstein
were withdrawn by Hereditary Prince
Alois von und zu Liechtenstein
. This act was justified by "questionable basic principles of the
rule of law
",
[12]
but the German media assume that this was an expression of the Princely House's disgruntlement.
[13]
In 2008, the reigning
Prince of Liechtenstein
Hans-Adam II
used the expression of a "
Fourth Reich
" in a letter about German-Liechtenstein relations. In addition, he described the relations between the two countries as a "rollercoaster ride" and commented that they hoped for "better times" in this regard.
[14]
An bilateral tax agreement in accordance with
OECD
standards entered into force in 2010, and a comprehensive
double taxation
agreement in 2012.
[15]
Economic relations
[
edit
]
After Switzerland, Germany is the most important economic partner for Liechtenstein. In 2021, the bilateral trade volume was 1.4 billion
euros
, placing Liechtenstein 74th in the ranking of Germany's trading partners.
[16]
Liechtenstein is a tax haven for some German corporations and individuals.
[13]
Diplomatic missions
[
edit
]
- Germany is accredited to Liechtenstein from its embassy in
Bern, Switzerland
and maintains an honorary consulate in
Vaduz
.
- Liechtenstein has an embassy in
Berlin
.
References
[
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]
External links
[
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]
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