Liechtenstein consistently implements EU directives into national law. In the September session, Parliament adopted several pieces of legislation, including adjustments to the Data Protection Act, amendments to the Unfair Competition Act, a total revision of the Disclosure Act, and amendments to the laws governing the gas and electricity markets.
According to regularly conducted assessments, Liechtenstein consistently achieves a high rate of implementation of EU directives into national law. The Government submitted several legislative amendments to the four-day September session of Parliament for purposes of adjusting national law to EU directives. Without opposition, Parliament adopted the amendments to the Unfair Competition Act. The act now includes a prohibition of unfair advertising and marketing methods relating to misleading or aggressive advertising practices. Consumers are thus protected from fraudulent business activities, whether in physical stores or when conducting online purchases from a website in another EEA Member State. Parliament voted in favor of incorporating the directive to better protect customers and at the same time to enable businesses to use the same advertising and marketing approach for all consumers throughout the EU as for domestic consumers.
Liechtenstein's accession to the Schengen and Dublin agreements requires Liechtenstein's integration with European databases such as the Schengen Information System (SIS) and Eurodac. The Data Protection Act was totally revised to enable Liechtenstein to join Schengen/Dublin. To underscore the independence of data protection vis-à-vis the executive branch, the Data Protection Unit will henceforth be subordinate to Parliament. The Data Protection Commissioner will be elected by Parliament, entailing a high level of democratic legitimacy and emphasizing the main purpose of data protection, namely the protection of personality and privacy of citizens as well as legal persons.
With the new version of the Disclosure Act and the amendments to the laws governing banks, investment firms, and investment undertakings, Liechtenstein has implemented the EU Transparency Directive. The goal of the Transparency Directive is to harmonize the legal framework and complete the Single Market for securities at the European level. With its incorporation of the directive into national law, Liechtenstein has joined the objectives of creating a transparent single financial market and achieving equal protection of investors on the financial markets. The EU directive on the formation of limited liability companies was also implemented into national law. Pursuant to the EU Action Plan on Modernising Company Law and Enhancing Corporate Governance, the directive aims to simplify and improve the previous EU capital requirements for limited liability companies but at the same time also to achieve effective protective measures for creditors and investors, especially minority shareholders. To strengthen the rights of shareholders, Liechtenstein has also incorporated the EU directive on the exercise of certain rights of shareholders in listed companies. This legally enshrines minimum requirements to ensure that shareholders of companies receive access to relevant information in a timely manner before shareholder meetings and are given simple means to exercise their voting rights even when not physically present. When all shareholders waive their right to an expert during the merger of companies, an EU directive provides that no report by an expert must be prepared. Liechtenstein has now also adopted this provision. Parliament joined the Government's view that there is no reason to insist on an evaluation of the situation by an expert if the shareholders waive their right in this respect.
The EU Internal Market for Electricity Directive aims to create a fully integrated electricity market guaranteeing a competitive market as well as security of supply for the European Economic Area. By incorporating this directive, Liechtenstein has joined the requirements for ensuring smoothly functioning competition. Access to the electricity network is ensured in a non-discriminatory and transparent manner at appropriate prices. The same initial conditions for electricity production should reduce the danger of market dominance and displacement practices. The EU Internal Market in Natural Gas Directive has the same goal and has also been adopted by Liechtenstein. The operators of natural gas networks are required to supply energy through their networks in a non-discriminatory way for eligible clients. The term "natural gas" has also been expanded to include biogas and liquefied petroleum gas.
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