Liechtenstein is a small, doubly landlocked microstate in Central Europe between Austria and Switzerland. Liechtenstein is situated in the Upper Rhine valley of the European Alps. The government system is a constitutional monarchy; the chief of state is the prince, and the head of government is the prime minister. Liechtenstein has a prosperous, highly industrialized, free-enterprise economy in which there is vibrant private activity, and the role of the state in economic activity has been kept low. Liechtenstein is a member of the European Free Trade Association (EFTA).