Liechtenstein's prime minister, Otmar Hasler, resigned Sunday after losing power in an election in the tiny Alpine principality, according to dpa. Hasler, the head of the Progressive Citizens' Party (FBP), quit after his party came second with 43.5 per cent of the vote. His FBP had governed the landlocked micro-state - famous for its secretive banking sector - in coalition with the opposition Fatherland Union (VU). The VU gained 9.4 per cent to score 47.6 per cent of the vote and overtake the FBP. The largest party in the 25-member Landtag parliament in the capital, Vaduz, now has the right to nominate the head of government, and two cabinet ministers. The smaller party nominates the deputy prime minister. There are 18,600 eligible voters in Liechtenstein, which hit the headlines last year after German authorities paid a whistleblower to reveal details of tax avoidance by wealthy citizens from various EU countries. Until Sunday's election, the FBP had been the largest party with 12 seats, the VU had ten and a third party, the Free List had three. Traditionally highly-secretive about its banking sector, the key election issue in Liechtenstein has been tax. With more than twice as many registered companies as citizens, and at least 15 banks, the principality has long been regarded as an centre for tax avoidance - something both US President Barack Obama and EU leaders have vowed to crack down on as part of the global economic crisis.
