The Principality of Liechtenstein is a constitutional hereditary monarchy on a democratic and parliamentary basis. The power of state is shared between the Prince and the people. The Principality is based on the 1921 constitution.
The 1921 constitution was one of the country's most important achievements. The creation of political parties and not least the breakaway from Austria and rapprochement with Switzerland, culminating in the 1923 Customs Treaty made it possible for the 1862 constitution to be replaced with a more democratic one. This new version stripped the Prince of some of his powers. It also made the judicial system independent and opened up the option of bringing legal cases against administrative authorities in front of the Administrative Court. The basic provisions of the 1921 constitution remained in place until 2003, with a few small but important changes made over the course of the years such as the introduction of active and passive voting rights for women (1984) and the establishment of gender equality (1992).
After long discussions, the citizens of Liechtenstein agreed in a referendum held in 2003 to amend the constitution according to a proposal made by the Prince. Since then the Prince has had the power to dissolve parliament "on warrantable grounds" and to rule via emergency decrees. He can also dismiss the government without the approval of parliament and without giving reasons. Since the 2003 amendment, all judges are proposed by a selection board and must receive the approval of parliament. The Prince has the power to veto the decisions of this selection board. However, since 2003 the people have also had the power to deliver a vote of no confidence in the Prince.