From 1938 to 1997 Liechtenstein had a coalition government and there were only two parties in parliament, the Fatherland Union and the Progressive Citizen's Party. Liechtenstein's distinctive form of coalition government came to an end in April 1997. The Fatherland Union took sole responsibility for the government during the 1997 to 2001 parliament, with its members filling all the positions on the government committee. In 2001 the Progressive Citizen's Party held the majority, and provided all the members of the government. The minority parties, as opposition parties, acted as a check on the government in parliament and on parliamentary commissions.

In March 2003, the Liechtenstein electorate endorsed with a decisive margin Prince Hans-Adam II's proposal for a revision of the Liechtenstein Constitution which granted 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 six 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. The Prince now also has final approval on the appointment of judges, and the State Court loses its key competence to mediate between the Government and the Prince on constitutional matters. In September 2005 an ad-hoc committee of the Parliamentary Assembly of the Council of Europe met with a delegation of the Liechtenstein Parliament in Vaduz for a first round of talks on this change to the constitutional order. The talks are part of a dialogue that the Parliamentary Assembly chose as an alternative to a standard monitoring procedure to assess the constitutional order following the adoption in 2003 of a series of amendments to the Liechtenstein Constitution. A second round of talks in Strasburg and a final report on the results of this dialogue are scheduled for early 2006.

Liechtenstein maintains an embassy in the United States at 1300 Eye Street, NW, Washington, DC 20005, Telephone (202) 216-0460.