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Liechtenstein Museum Displays Prince’s Private Art Collection

Valentine’s Day is Liechtenstein ruling Prince Hans Adam II’s 65th birthday. To honor his milestone, the Liechtenstein Museum is exhibiting about 140 works of art from the Prince’s personal collection. He owns one of the largest and most expensive private art collections in the world, and it includes works from the Renaissance and Baroque periods. This is the first time some of these pieces of art are being put on display.

AP Photo/Keystone, Eddy Risch/FILE

The collection began during the 17th century by Prince Karl I von Liechtenstein. One of the pieces he acquired were two sculptures done by Adrian de Fries, Christ in Distress and Saint Sebastian.

Karl’s son Prince Karl Eusebius I and later Prince Johann Adam Andreas I continued to add to the princely family’s collection. They quickly gathered one of the leading collections of Flemish painting. By the time Johann Adam Andreas died in 1712, he compiled about more than 50 original paintings by Peter Paul Rubens.

Not all the Liechtenstein rulers shared the same tastes. Prince Johann II (1840 – 1929) had a disgust for nudity and violence, and sold several artworks that depicted such. Those pieces were Rubens’ Samson and Delilah and his “Slaughter of the Innocents.”

In 1808, some of the artwork were shown at the Liechtenstein Summer Palace in Rossau. But that exhibited ended 130 years later when the princely family relocated to Vaduz and took their art objects with them. A year later, World War II broke out. To secure their wealth, the family sold some pieces of their collection.

After the war, the family acquired other pieces of art. In 2004, Prince Hans Adam II reopened the Liechtenstein Museum in Rossau, setting up for this year’s exhibit.

Liechtenstein Cancels London Art Exhibit

Prince Hans Adam II of Liechtenstein called off a much anticipated art exhibit at London’s Royal Academy of Arts Thursday, due to a row over a painting taken hold of in Britain.

FILE

The Spanish Renaissance artwork at the center of this dispute, “The Infante Don Diego” by Sanchez Coello, was purchased by the Prince in 2006, but due to the British customs, it has been impounded since 2007. Because this problem has not yet been resolved, Hans Adam pulled out of the exhibition which would have shown pieces of art owned by Liechtenstein’s ruling family.

“After many months of planning… we are, of course, very disappointed that the Prince of Liechtenstein has decided to cancel the exhibition,” said the Royal Academy in a statement.

“This is owing to an unrelated criminal inquiry into the export of a group of pictures bought in London by the Prince over three years ago.”

The exhibition was supposed to run from September to December of 2010. The Royal Academy was looking forward to the event, and had hoped for a major success.

“The Prince does not think it is appropriate to proceed with the planned exhibition until the matter of a painting by Sanchez Coello is resolved,” said Johann Kraeftner, director of the Prince of Liechtenstein collections.

“When that happens we will reconsider the idea of a show at the Royal Academy at some future date,” he added.

Dmitry Medvedev Receives Liechtenstein’s Prince Alois

Earlier today, Liechtenstein’s Prince Alois was welcomed to Russia by President Dmitry Medvedev at the Barvikha presidential residence outside Moscow. This was the first visit to Russia by Liechtenstein’s heir apparent.

ALEXANDER NEMENOV/AFP/Getty Images

Medvedev told Prince Alois his appreciation for ties with the principality.

“Our cooperation acquired greater dynamics during the past 15 years, and special credit for that goes to you father, the ruling Prince of Liechtenstein,” Medvedev said. “Our cooperation is developing in various spheres, including the cultural and humanitarian sphere.”

The two leaders also discussed their interest in Europe, and how both are interested in the continent’s development and prosperity.

“I believe our stands on the issue are very close, especially at the time when we are all living through the stage of crisis development,” the President said.

Prince Alois mentioned that he was impressed with Moscow’s landmarks, particularly the Kremlin. Even he praised the Russia-Liechtenstein relations.

“Russia and Liechtenstein have formed very close relations during the past 15 years, and its is especially interesting in view of the fact that Russia is the largest country, while Liechtenstein is one of the smallest countries,” Prince Alois said. “Despite that difference, really close relations have been created between our countries. My father turned over to Russia the so-called Sokolov’s archive. I was told it was extremely important for the Russian history. At the same time, we received from Russia part of our family archive, which is important both for our family and the country.”

As a gift, the Prince gave to Medvedev a brooch once owned by a Russian who lived in his country.

Liechtenstein Prince Offends German Jews

Liechtenstein’s sovereign Prince Hans Adam II has outraged German Jews yet again. He did so by saying the Holocaust is the reason for his tiny country’s banking secrecy during an interview with a Liechtenstein newspaper.

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“We and Switzerland saved many people, especially Jews, with banking secrecy,” The Prince said to the Liechtensteiner Volksblatt. “Germany should clean up its own act, and think about its past.” The latter was in reference to Germany criticizing the principality for tax evasion.

Hans Adam went on to explain that Jewish people were able to store their finances in this micro-state’s banks during the Nazi period.

“The comments are a mockery of the Holocaust and its survivors,” Stephan Kramer, general secretary of the German Central Council of Jews, told Bild newspaper. “It is historically incorrect for him to portray Liechtenstein as a merciful helper of the Jews. It is an attempt to use the Holocaust as a defense for the prince’s political failures. His highness would be better off retiring.”

The last time Hans Adam outraged German Jews was back in 2008, when he called Germany the “Fourth Reich.”

Prince Hans-Adam is Liechtenstein’s head of state, but in 2004, he gave his powers to his son, Prince Alois.

Liechtenstein Prince Optimistic on Financial Sector

NOTE: the following is an article written by the AFP’s Andre Lehmann

Liechstenstein will remain a major financial centre even after the easing of its banking secrecy rules, thanks to its know-how in wealth management, its ruling prince says.

AFP

“For years we have acquired in-depth knowledge in the area of wealth management,” Prince Alois von und zu Liechstenstein told AFP in an interview in his castle overlooking the capital Vaduz.

In March, the principality agreed to conform to standards set by the Organisation for Economic Co-operation and Development regarding fiscal transparency.

That effectively ended decades of banking secrecy upon which Liechstenstein – sandwiched between Austria and Switzerland, with a population of 35,000 – built its financial service industry.

Still on the OECD grey list of tax havens, Liechstenstein has signed a number of bilateral agreements – most recently with Britain – on exchanging tax information.

Wealth under management in Liechstenstein fell 19 per cent last year to €148.4 billion due to the global financial crisis and the fallout over the theft of data from the LGT banking group.

But Prince Alois, 41, was optimistic.

“Liechstenstein is going to remain an attractive place,” given its status as “a paradise of stability from a political and economic point of view,” he said.

He also pointed to foundations, trusts, pension and investment funds, and the insurance sector, which have given a second wind to the principality.

The principality – a member of the European Economic Area since 1995 – is part of the European single market without being inside the European Union.

“It is hard to predict which sector is going to grow in the future,” Prince Alois said, “but I would not be surprised if the financial services sector is going to experience a boom.”

Liechstenstein, where the financial sector accounts for 29 per cent of gross domestic product, nevertheless is playing catch-up.

Historically discreet, it found itself under scrutiny in Europe last year after a former LGT employee sold a compact disc with data about bank clients to the German secret service.

Scandal in Germany ensued, leading to the resignation of the chief executive of Deutsche Post, Klaus Zumwinkel amid suspicions of tax fraud.

Liechstenstein remained in the line of fire, notably from Germany, over banking secrecy, until it revised its policy in March.

“We had already prepared before March 12 a reorientation of the financial market,” the prince said, adding that “it was foreseeable that there would be changes everywhere”.

“Of course, we were irritated by the attitude” of the German authorities, and relations with Berlin were “tense,” he said, but the signing in July of an agreement with Germany on exchanging tax information “has straightened the situation”.

Liechtenstein Vows to Follow Tax Laws

Hereditary Prince Alois of Liechtenstein gave a speech Thursday, promising his tiny Swiss Alps principality would obey international standards on cross-border tax cooperation in an effort to shed its label as a “tax haven” where foreigners can safely hide their money. prince-alois

Liechtenstein is one of three European nations vowing to follow tax rules. The other two are Andorra and Belgium.

“The Liechtenstein government accepts the OECD standards on transparency and information exchange in tax matters and supports the international measures against non-compliance with tax laws,” the principality said.

“We are aware of our responsibility as part of a globally integrated economic area,” said Liechtenstein’s Prime Minister Otmar Hasler, who leaves office later this month.

The announcement came a year after a major tax evasion scandal in Germany uncovered allegedly undeclared accounts held by German taxpayers and other foreigners under the cloak of Liechtenstein’s secretive banking sector.

LGT bank, which is controlled by the royal family, claimed that German tax inspectors were working from a list with the names of 1,400 of its clients — 600 of them German — that had been stolen in 2002.

One European country not ceasing to be a “tax haven” is Monaco. The tiny principality on the French Riviera has been accused by the financial watchdogs of the Organisation of Economic Cooperation and Development as a “non-cooperative tax haven.”

Monaco on Thursday declined to comment.

“The Monegasque government is not making any comment on this question,” said a source close to the government.

Liechtenstein Prince Investigated for Tax Evasion

Prince Max of Liechtenstein, is being targeted by a German tax evasion probe. It is said the brother of the ruler of the principality avoided paying taxes on investment gains while living in Germany. prince-max

Lawyers of the prince, who is CEO of the LGT Group, the royal family’s bank, say Prince Max will pay back all taxes owed, but challenges the accusations.

“I have always fulfilled my tax duties in Germany to the best of my knowledge,” Prince Max said in an e-mailed statement distributed by LGT Group late Thursday. “If, contrary to my conviction, it turns out that I owe taxes to the German state, I will meet my obligations promptly.”

Max, who lived in Germany for a year from January 1999 and then from September 2001, met with German authorities in December and pledged to cooperate, the LGT statement said.

But his brother, Prince Alois, says his brother is being targeted because of the tension between Germany and the micro-state located in the Alps. Germany has recently been tracking down tax cheats.

The Paris-based Organization for Economic Cooperation and Development has Liechtenstein on its list of uncooperative tax havens, along with Andorra and Monaco.

The accusation centers on a foundation set up by the princely family for its members. The prince’s lawyers say Max drew no payments from the account while he lived in Germany, but rather secured credit that wasn’t taxable — and that the assets belonged to the family rather than the prince, LGT said.

The German authorities say the prince owes taxes on the assets of the entire foundation because most of the payments from it went to him, according to the LGT statement.

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