Liechtenstein's ambassador to the European Union, Prince Nikolaus, was pleased with the negotiations with the EU. The European Union recognized Liechtenstein's architect diplomas and its use of Swiss veterinary law figure amongst the highlights. Ongoing issues included the tobacco control legislation and the European Union recognition of protection certificates in medicine. The new European Economic Area (EEA) new guidelines on money laundering was considered a step forward and good progress was made in negotiations with the USA on an agreement for international judicial assistance.
On the downside, local banks reported losses due to pressure from the E.U. on Liechtenstein to change its bank secrecy laws, the downturn in the stock exchange and loss of investors' confidence. Bank managers, while expressing some confidence in the possible upturn in world economy, felt it could have been a lot worse.
Liechtenstein was blacklisted in 2000 as a center for money laundering, and changed its laws in an effort to clean up its financial practices. In 2002 the country was removed from the OECD's (Organization of Economic Cooperation and Development's) money-laundering blacklist. The Principality also received top marks for its efforts in the fight against terrorism from the USA in Otcober, 2002.
Liechtenstein was repeatedly mentioned in the Initiative & Referendum Institute Europe (IRI Europe) as report "Voices of Europe" as a positive example of democracy because of it's use of national referendums.
The Constitutional Crisis continued to dominate politics in Liechtenstein. Years before the present Prince tried to assert his princely prerogatives. In 1999, he had rejected a nominee for a position in an administrative court who had publicly disagreed with him over who had the final constitutional authority - Liechtenstein's Supreme Court or the Prince. The prince then put forth suugestions for changes to the Constitution that would give him the final authority. Opposition to the Prince's initiative claimed that an absolute right of veto by the Prince violates European Human Rights' Convention. The Prince's changes were block in Parliament and considerable debate ensued. Then both the Princess and his opponents began campaigns to have a plebiscite by voters on the subject and began to collect signatures on petitions. The Prince claimed that if
