Crown prince handed power in Liechtenstein

VADUZ, Liechtenstein – Prince Hans-Adam II formally handed over day-to-day governing powers to his son Crown Prince Alois on Sunday – and then invited all 33,000 of Liechtenstein’s people to a garden party.

Hans-Adam, 59, retains overall authority over Liechtenstein, the tiny nation – one of Europe’s smallest – wedged between Austria and Switzerland.

After an open-air Mass, Alois gave his first speech as head of state.

“Many people might ask … ‘Why should we change something that’s working so well?’ ” said Alois, 36.

But the country, which owes much of its wealth to being a financial center in the heart of Europe, is under pressure to crack down on global money laundering, he said.

“The crisis in the financial center as well as the crisis in many European states show us how dangerous it can be if necessary, but perhaps unpleasant, reforms are not tackled promptly,” Alois said. Like Switzerland, Liechtenstein has kept itself apart from Europe, remaining neutral in World War II and staying out of the European Union.

Under constitutional changes made last year, the powers delegated to Alois include dismissing governments, vetoing new laws and casting the deciding vote on naming judges.

The electorate has some checks on royal prerogative – it can force a referendum on any issue by gathering at least 1,500 signatures. But the Council of Europe, the continent’s top human rights watchdog, has called last year’s constitutional changes “a serious step backward” and says it is monitoring Liechtenstein’s commitment to democracy because the prince has acquired such extensive powers.

Alois’ spokeswoman Edith Schaedler told The Associated Press there were no plans to change Liechtenstein’s foreign policy.