The Principality of Liechtenstein (German: Fürstentum Liechtenstein; Alemannisch: Förschtatum Liachtaschta) is a dwarf state, situated in the middle of Europe. It is bordered by Switzerland to the west and south and by Austria to the east. The mountainous country is a ski resort and also a tax haven. Like Switzerland, Liechtenstein are not members of the European Union. The country is a member of the European Economic Area (EEA). This is an agreement between the countries of the European Union and the European Free Trade Association, with the exception of Switzerland. The agreement promotes free movement of persons, goods, services and capital between the participating countries. Also, there is cooperation in the economic field. From December 19, 2011 Liechtenstein is a Schengen country.