Liechtenstein’s political system comprises a constitutional, hereditary monarchy which is underpinned by a parliamentary and democratic fundament. State authority is anchored coequally in the people and the ruling Prince. As a microstate, Liechtenstein has always been oriented towards the outside world and is a member of many important international organisations. Liechtenstein has an innovative financial centre and is a very stable business location.
Liechtenstein is a debt-free country and has been accorded a triple-A rating by Standard & Poor's. Standard & Poor's assessment underscores that Liechtenstein has:
- a long-standing history of political, economic and legal stability;
- a very progressive tax law, compatible with EU-requirements;
- an internationally competitive economy;
- a high level of productivity;
- a healthy national budget and balance sheet;
- an unusually high standard of living; and
- owing to the Principality’s customs and currency treaty with Switzerland and membership in the European Economic Area (EEA), a solid monetary and commercial foundation.