Liechtenstein has relied on the Swiss franc for 100 years
Published: Thursday, Apr 4th 2024, 09:50
Updated At: Thursday, Apr 11th 2024, 05:40
Volver a Live Feed
Exactly 100 years ago, on April 11, 1924, the Principality of Liechtenstein introduced the Swiss franc as its legal currency - as a replacement for the Austrian crown. Together with the young customs union with Switzerland, the franc formed the basis for the enormous economic development of the small state. This will be celebrated in Liechtenstein on Thursday (today).
The customs union agreed in 1923 led to the Principality joining the Swiss economic area. One year later, the Swiss franc was also adopted as its currency. Both steps were born out of necessity.
Due to its close ties with Austria, Liechtenstein was hit hard economically by the effects of the First World War. Austria's military defeat caused the value of the crown to plummet from 1918 onwards.
Liechtenstein politicians made a - controversial - attempt to introduce its own currency. However, it became clear that the principality, with fewer than 12,000 inhabitants at the time, was too small to have its own currency. In addition, the Swiss franc had already established itself as a means of payment in everyday life around 1920. To a certain extent, the population had "overtaken politics on the right".
Trade preferred the franc
The driving force was trade, as the Liechtenstein government writes in an anniversary publication. Craftsmen preferred to be paid in the stable Swiss currency rather than the inflationary crown. They also had to pay for materials and raw materials purchased in Switzerland in Swiss francs.
The de facto introduction of the franc by the population and businesses took place a few years before it was legally established. The victims of this circumstance were those groups who received their salaries in crowns but had to pay for their living expenses in francs - civil servants, teachers, clergy, workers.
Taxes, stamps and national accounts
A first decisive step in Liechtenstein's policy towards the introduction of the Swiss currency was the setting of taxes, duties, fees and penalties in francs. Further milestones were the postal treaty with Switzerland in 1920 and the issue of Liechtenstein stamps in Swiss francs a year later.
The national accounts were kept partly in francs from 1919 and exclusively in francs from 1922. The formal introduction of the "franc currency" by the Liechtenstein parliament as the only means of payment in the country finally took place in April 1924 - with the approval of Switzerland.
Currency treaty with Switzerland
The rest is economic history: the prosperous principality developed into an extremely wealthy country. The introduction of the Swiss franc laid an "essential foundation stone" for "today's prosperity and the high stability of Liechtenstein's economy", the Principality's government recently announced.
However, a currency treaty with Switzerland was only concluded in 1980 and Liechtenstein was formally incorporated into the Swiss currency area. "The introduction of the Swiss franc in Liechtenstein remains a success story and it is currently impossible to imagine Liechtenstein without the Swiss franc," the government wrote.
Exactly 100 years later, on April 11, 2024, the historic event will be commemorated in a ceremony. In addition to guests from the Princely House, politics and business, the government is also inviting the public to the town hall in Vaduz. Martin Schlegel, Vice-Chairman of the Governing Board of the Swiss National Bank, will be on the podium.
©Keystone/SDA
Spanish 
English 
German 
French 
Arabic