In the feudal kingdom of Germany the County of Vaduz is founded in 1342. When it is acquiered by the Austrian Liechtenstein family in 1712, it merges in 1719 with the Lordship of Schellenberg (acquiered in 1699) as the Principality of Liechtenstein. France occupies the country for a few years, but Liechtenstein regains its independence in 1815 within the new German Confederation. Liechtenstein remains part of Germany until 1868, and becomes after the dissolution of Germany an independent state. Liechtenstein is now a parliamentary democratic monarchy with relative strong power in the hands of the monarch. In 1919 Liechtenstein entrusts its external relations to neutral Switzerland.

Since 1922 prime ministers are representatives of political parties, mainly conservative. Gustav Schädler of the VP is prime minister until 1928, but that year Franz Josef Hoop of the conservative Fortschrittliche Bürgerpartei in Liechtenstein (Progressive Citizens' Party in Liechtenstein, FBPL) takes over. Since 1938 the FBPL governs in a coalition with the conservative Vaterländische Union (Patriotic Union, VU). Hoop is succeeded in 1945 by Alexander Frick and in 1962 by Gerald Baltiner. Inside the coalition Alfred I. Hilbe of the VU takes over in 1970. In 1974 Walter Kieber of the FBP becomes prime minister. Between 1978 and 1993 Hans Brunhart of the VU is prime minster, succeeded in 1993 by Mario Frick. He forms a government without the FBP in 1997. In 2001 Otmar Hasler of the FBP takes responsibility for the government.

The Liechtenstein electorate endorses in 2003 prince Hans-Adam II's proposal for a revision of the Liechtenstein Constitution, giving him the power to dissolve parliament and appoint an interim government, dismiss individual members of government and veto any parliamentary legislation by not signing the bill within 6 months. Without the approval of the reigning prince, no further constitutional amendments can be adopted, except in the case of a referendum abolishing the royal house. Finally, the Prince now has the final say on the appointment of judges, and the State Court loses its key competence to mediate between the government and the Prince on constitutional matters. The opponents of the Prince's proposal announced an appeal against the referendum decision before the Liechtenstein State Court. The Council of Europe has indicated that it may "monitor" the new Constitution.