The Principality of Liechtenstein is a dwarf state in Western Europe, associated with Switzerland. The name of the country comes from the ruling dynasty of Liechtenstein. The capital is Vaduz. It borders on Austria in the east and Switzerland in the west, its territory is completely surrounded by the territories of these states. The form of government is a dualistic monarchy. Not a member of the European Union, Liechtenstein is part of the European Economic Area; party to the Schengen Agreement. Liechtenstein is currently one of the three countries in the world having a name given in honor of the ruling dynasty, along with the Hashemite Kingdom of Jordan and the Kingdom of Saudi Arabia.