Another significant problem was the fact that the Principality of Liechtenstein had no lobby,
and in particular no communication department, which would have communicated these
drastic measures by the State to foreign media and other stakeholders and that would have
taken care of reputation management. On the contrary, the motto was "no news is good
news", in order to pursue one's business without interference from the outside world.
In September 2001, the Government Spokesperson's Office (Stabsstelle fiir Kommunikation
und Offentlichkeitsarbeit, SKOE) was established in order to accompany the reform process
with communication efforts, also internationally, and to take long-term measures to improve
the image of the Principality of Liechtenstein in the world (see Chapter 5.1.2).
Liechtenstein as a member of the European single market
With Liechtenstein's accession to the European Economic Area (EEA) in 1995, Liechtenstein
was required to implement all relevant EU directives in the same way as member States of the
European Union (EU). Liechtenstein thus has exactly the same standards as the EU countries.
However, this fact has frequently been overlooked in recent months in the wake of the
emotionally debated tax affair. The Agreement on the European Economic Area (EEA
Agreement) is based on:
» the primary legislation of the European Union, which has developed over the course of the
past forty years (= prohibition of discrimination, four freedoms, common competition
rules, and flanking and horizontal policies), and
> the secondary legislation based thereon, i.e. the acquis communautaire (EU enactments
with EEA relevance continuously adopted by the EU institutions).
Accordingly, the EEA acquis is identical with the EU acquis in the areas covered by the
treaty. Liechtenstein is therefore — like the EU States — required to implement the EU
directives into national law and apply them. By 1 February 2008, a total of 5,156 EU
enactments had been incorporated into the EEA Agreement. Liechtenstein's implementation
rate is currently 99.2% (as of June 2008). Liechtenstein's implementation and application of
EEA law is monitored by the EFTA Surveillance Authority (ESA) in Brussels. For EU States,
this monitoring is the responsibility of the EU Commission.
The EEA acquis is therefore also identical to that of the EU States in the areas of banking,
insurance, and money laundering.
Since Liechtenstein's accession to the EEA in 1995, which opened up market access to other
countries, the number of banks has grown fivefold (from 3 to currently 15). New fields in
funds and insurances also opened up. The financial center generates 30% of GDP, less than
most would expect. Only 15% of all people working in Liechtenstein are employed in this
sector.
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