Liechtenstein, officially the Principality of Liechtenstein  was established in 1719. Occupied by both French and Russian divisions during the Napoleonic wars, it became a sovereign state in 1806 and ascended the Germanic Confederation in 1815. In 1866 while the Confederation dissolved Liechtenstein became completely independent. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict compelled Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained  neutral), the country's low taxes have spurred noted economic growth. The country has a potent  financial area located in the capital, Vaduz.. It is a member of the European Free Trade Association and part of the European Economic Area and the Schengen Area, but not of the European Union.