The Economic Aspect of Functioning of Monarchy on the examples of Great Britain, the Netherlands and Liechtenstein

Abstract

The article deals with the financial organization of the Royal houses in the United Kingdom of Great Britain and Northern Ireland, the Kingdom of the Netherlands and the Principality of Liechtenstein. Attention is also paid to the legal side of allocating funds for the existence of monarchical institution. The author reveals the sources of funding,individual items of income and expenses, provides data on the amount of funds allocated for the last financial year andthe current taxation procedures in relation to the reigning monarchs. In addition, the article describes the powers of themonarchs of the countries in question and the level of their political influence. Of interest is the fact that countries adopt completely different approaches to the issue of material support for their rulers. This is due to the different historicalways of forming state institutions in these countries, as well as the significance and functions of the sovereign at thepresent stage. The British monarchy is one of the richest in Europe. The Royal family has both public funds allocated annually and private property and assets. The main source of subsidies from the budget is the Crown Estate, which was actually transferredby the monarch to the executive authorities more than two hundred years ago. At the same time, funds allocated to the Royal family in the Netherlands are strictly regulated. They are distributed among three groups of expenditures, theamount of funding for each of which is strictly limited. Public funds are also allocated to provide for only four members of the Royal family, whose right to public funding is enshrined in the country’s Constitution. The Principality of Liechtenstein is a unique case, since the ruling family does not receive any funds for its existence from the country’s budget. The princely house is completely self-sufficient due to large assets, income from land ownership and its own banking business. The author analyzes and reveals the relationship between the financial situation of the monarchs of the countries under consideration, their level of dependence on state allocations and the political power they exercise.