Liechtenstein holds referendum on prince's powers

The people of Liechtenstein will go to the polls on Sunday in a nationwide referendum aimed at curtailing the political power of the royal family.

The reigning Prince, Hans Adam, and his son, Crown Prince and Regent Alois, have an unusual amount of power for a Western European monarchy in the 21st Century, and their powers were even extended, with the approval of the people, in 2003.

People just felt their votes were worthless”

Nevertheless some Liechtenstein citizens, like pro-democracy spokesman Sigvard Wohlwend, think these powers are simply too great.

"They are certainly the most powerful monarchs in Europe," he said. "The prince of Liechtenstein still has the absolute right to veto any decision taken by the parliament or even the people.

"They have the right to dissolve the government, to dismiss parliament, and no judges can be appointed without the approval of the prince."

Matters were brought to a head last September, ahead of a referendum on whether decriminalise abortion - in certain cases - up to the 12th week of pregnancy.

In Liechtenstein, more than 90% of the population is Roman Catholic, and abortion is strictly illegal. Women wanting to end a pregnancy have to travel to neighbouring Germany or Austria and, if found out, risk imprisonment.

Just a few days before voters were due to cast their votes, Crown Prince Alois, who has been acting as head of state in his father's stead since 2004, and is also Roman Catholic, announced that he would veto any relaxation of the ban on abortion, whatever the voters decided in the referendum.

"As soon as he said that, people just felt their votes were worthless," said Sigvard Wohlwend. "The turnout collapsed, people didn't bother to go to the polls."

From that moment, a small group of Liechtensteiners began collecting signatures for another referendum, this one demanding the removal of the royal veto, and this Sunday the people will decide.

The proposal is, its supporters say, fairly modest: the princely veto would be removed only for nationwide referendum, the prince would still be able to veto parliamentary decisions.

Nevertheless, for many it has become a debate about whether Liechtenstein should have a monarchy or not. The principality is tiny, with a population of just 36,000, does not even have its own currency, using the Swiss franc instead.

Perhaps understandably, some citizens think the royal family is the only thing that gives their country an independent identity.

"The state of Liechtenstein has got an advantage with such a princely family," says member of parliament Renate Wohlwend (no relation to Sigvard), whose Progressive Citizens Party has recommended a "No" vote in Sunday's referendum.

"He represents the country, he is the guarantor of our sovereignty and stability.

"A small country has to have some flag to show and Liechtenstein's flag is the princely house."

And, despite her position as an elected member of parliament, Renate Wohlwend is quite comfortable with the royal powers.

"I don't like to call them powers," she explained. "I think of them as rights and responsibilities, and this mix of monarchy and democracy creates the right kind of balance for a small country like Liechtenstein."

Opinion polls suggest that many - indeed, the majority - support Renate Wohlwend's view. But some suspect the public support for the royal family has more to do with business concerns than any genuine loyalty to the monarchy.

Liechtenstein's royal family owns and runs LGT, the principality's biggest bank and asset-management fund. The bank employs 1,500 people - not an insignificant number in a country of just 36,000 - and many people seem to believe the monarchy is the secret behind Liechtenstein's success as a financial sector.

Others, however, disagree, pointing out that Liechtenstein's banks, with the Swiss franc as their currency, have all the advantages of Zurich or Geneva but rather less international scrutiny.

The royal family itself has not been slow to remind the population of its financial power. When Prince Hans Adam asked for more constitutional powers in 2003, he warned that if he did not get them, he might abdicate and move to Austria, presumably taking his multi-billion dollar enterprise with him. The voters duly backed him.

Nine years later, Crown Prince Alois has also hinted that if his royal veto is removed, he too might withdraw from political life. Pro-democracy campaigners like Sigvard Wohlwend believe that would be a good thing, but agrees that other voters may be worried about "offending" the prince.

"There is a very popular saying here in Liechtenstein that you can't win an election against the prince," he said. "And that is exactly the situation: We have democracy in Liechtenstein, as long as we agree with the prince."

No-one really expects Liechtenstein's voters to disagree on Sunday, but if they do buck tradition and vote to remove the royal veto, Renate Wohlwend knows what will happen.

"Oh I think the prince wouldn't sanction, that," she said. "He would use his veto, of course."