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Introduction: The Principality of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleonic wars, it became a sovereign state in 1806 and joined the Germanic Confederation in 1815. Liechtenstein became fully independent in 1866 when the Confederation dissolved. 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....

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Government: According to the constitution, the government is a collegial body consisting of five ministers, including the prime minister. The prime minister and ministers are appointed by the Prince, following the proposals of the parliament.

Amendments to the constitution and new laws have to be adopted by parliament, signed by both the Prince and the prime minister, and published in the ...

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International Relations: BILATERAL RELATIONS

While the UK has no resident mission in Liechtenstein, UK officials in Berne visit the Principality frequently and relations are very good.

Of particular note is a Tax Information Exchange Arrangement (TIEA) between the UK and Liechtenstein which was signed in Vaduz on 11 August 2009 by Stephen Timms MP, the then Financial Secretary to the Treasury, and Dr Klaus Tschütscher, Prime Minister of Liechtenstein. It came into force in 2010.

The TIEA enables the UK and Liechtenstein to exchange information to OECD and international tax standards to ensure that the ...

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