L I E C H T E N S T E I N

Jun. 3, 2002/Vol. 159 No. 22
Princely Prerogatives

He lives in a castle and, like most of his fellow monarchs, features on his tiny nation's postage stamps. But in some crucial respects Prince Hans-Adam II of Liechtenstein is unique among Europe's sovereigns.


Banking, agriculture and light industry have made the 33,000 residents of the alpine country that bears his family name some of the world's richest people, but they contribute nothing to the reigning family's maintenance. Instead, Hans-Adam, 57, pays for his princely upkeep and finances various state occasions out of his own very deep pockets. He also has more real power than any other European monarch.

Liechtenstein's constitution gives the Prince broad emergency powers as well as the right of veto over all legislation. Though soft-spoken and almost deferential, Hans-Adam has not shied away from flexing his monarchical muscle. A decade-long dispute with parliamentary and judicial representatives over the limits of his powers came to a head in recent years, and the Prince has called for a constitutional referendum. His proposed changes, outlined in a brochure he has sent to every voter, encompass issues such as the appointment of judges, who are currently nominated by parliament in a process the Prince decries as "rather politicized." Hans-Adam would instead preside over a committee that selects candidates for parliament's approval. In the event of a deadlock, the disputed nominee would face a popular vote. And that's not all the Prince would put to a plebiscite. "Let's make it possible for the people to remove the monarchy if they don't want it any more," he says. If voters don't endorse his proposals, Hans-Adam says he will pack his bags and head back to the palace in Vienna that served as his family's base until 1938, when his father Franz Josef II became Liechtenstein's first resident Prince.

Hans-Adam says his reforms represent an attempt to "strengthen the rule of law and democracy." Opponents like former Prime Minister Mario Frick counter that they would only "make the Prince stronger and weaken parliament." Frick, who calls himself "a monarchist and a democrat," says Hans-Adam is motivated by distrust and selfish dynastic interests. "The Prince thinks that [his family] existed before and will exist after Liechtenstein, so he looks for possibilities to make the house stronger." Though he'd differ with Frick's take on his motives, the Prince would agree that Liechtenstein, like all states, is a potentially impermanent entity. "Our vision," he says, "is to turn the state into more of a service organization and open it up to competition. Those states which are competitive and can provide a good service at a reasonable price will grow and survive. Others will disappear."

Whether Liechtenstein disappears or its reigning family chooses to leave, some things, like the Prince's castle in Vaduz, will surely survive. But according to its current resident, that imposing edifice isn't exactly a fairy tale abode. "It's cold, it's not very comfortable, it costs a lot of money," Hans-Adam says. "I would much more prefer to live in a nice modern house."

Modern Monarchy | Counting House | Royal Exiles | Magazine | TIMEeurope.com

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