Relations between the

Principality of Liechtenstein Liechtenstein (), officially the Principality of Liechtenstein (german: link=no, Fürstentum Liechtenstein), is a German-speaking microstate located in the Alps between Austria and Switzerland. Liechtenstein is a semi-constitutional monarch ...

(german: Fürstentum Liechtenstein) and the

European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...

(EU) are shaped heavily by Liechtenstein's participation in the

European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade As ...

(EEA).

Comparison

Market access

Liechtenstein is the only microstate (not counting

Iceland Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its s ...

by population) that is part of the EEA. Liechtenstein joined the EEA on 1 May 1995 after becoming a full member of the European Free Trade Association (EFTA) in 1991 (previously, it had participated in EFTA through Switzerland's membership). All EFTA states bar Switzerland are in the EEA, which gives them access to the EU single market. It also obliges Liechtenstein to apply European Union laws considered EEA-relevant. As of June 2016, around 5,000 of 23,000 EU legal acts in total were in force in the EEA. There is some further cooperation with the EU via Switzerland as Liechtenstein is highly integrated with the Swiss economy (including using the Swiss franc).Principality of Liechtenstein
European External Action Service

Schengen

On 28 February 2008, Liechtenstein signed the

Schengen Agreement The Schengen Agreement ( , ) is a treaty which led to the creation of Europe's Schengen Area, in which internal border checks have largely been abolished. It was signed on 14 June 1985, near the town of Schengen, Luxembourg, by five of the t ...

and became part of the Schengen Area on 19 December 2011. Before this, Switzerland shared an open border with Liechtenstein and was already a full Schengen Area member. This open border was not considered a threat to European security because it would be highly difficult to enter Liechtenstein without first landing in or entering a Schengen state. The border with Austria was not open, and it was treated as an external border post by Austria and Liechtenstein, making it necessary to pass through customs and passport control before crossing. Liechtenstein signed a Schengen association agreement with the European Union on 28 February 2008, and originally planned to join the Schengen Area on 1 November 2009. However, ratification was initially delayed at the behest of Sweden and Germany who felt that Liechtenstein had not done enough to fight tax evasion; the Council of Ministers eventually consented to the ratification of the protocol on 7 March 2011, with the protocol entering into force a month later. Liechtenstein was due to join the Schengen Area by the end of 2011 and did so on 19 December.

Free Movement of Labour

Although a member of the

Liechtenstein does not adhere to the free movement of labour unlike every other member of the European Union and EFTA because its small size and relative prosperity mean that it is vulnerable to high immigration.https://publications.parliament.uk/pa/cm201719/cmselect/cmhaff/857/85707.htm

Other agreements

There are further bilateral agreements between the two parties on matters such as taxation of savings. There are also ongoing talks on combating fraud and exchanging information on tax matters.

Diplomatic relations between Liechtenstein and EU member states

References

{{DEFAULTSORT:Liechtenstein-European Union relations Contemplated enlargements of the European Union Third-country relations of the European Union