RELATIONS WITH THE EU
The European Union and San Marino
The European Union and the Republic of San Marino established diplomatic relations in 1983. They are like-minded close neighbours sharing history, culture and language and have signed several agreements of cooperation. Since 2015, the EU and San Marino, Andorra and Monaco are negotiating an Association Agreement on their participation in the EU internal market. This would be a far-reaching agreement to be compared only with the European Economic Area Agreement with Norway, Iceland and Liechtenstein.
Priorities: the EU’s main priority is to conclude the Association Agreement negotiations.
Political relations
EU-San Marino relations currently focus on the conclusion of the Association Agreement negotiations.
San Marino replies generally positively to the Council’s regular calls for alignment with EU foreign, security and human rights policies.
The EU and San Marino are like-minded on values such as the protection of human rights, democracy, security, multilateralism and a rules-based international order. The Partners also share their interest in implementing the Paris Climate Agreement and the Sustainable Development Goals.
In January 2018, the first-ever meeting between an EU President (former European Council President Tusk) and San Marino’s Heads of state (two Captains Regent) was held in Brussels.
In the context of the Covid-19 pandemic, the EU and San Marino stepped up cooperation. The EU facilitated the movement of goods (including medical protective equipment) and persons to San Marino. As part of the ‘Team Europe’ efforts, Italy facilitates the supply of vaccines.
Economic relations, trade, investments
A Cooperation and Customs Union Agreement entered into force in 2002, replacing (interim) agreements that were in force since 1992. The agreement establishes a customs union and sets the basis for cooperation in fields such as industry, environment, tourism, culture and information, and academic exchanges.
Under this agreement, the EU-San Marino Cooperation Committee agreed, in 2020, modalities to facilitate the movement of organic products from San Marino into the EU’s Internal Market, with San Marino accepting to apply the relevant EU legislation.
A Monetary Agreement (2001, updated 2012) allows San Marino to use the euro as legal tender and to issue, under conditions, a certain number of euro coins; the agreement also provides for the application of EU rules on combating counterfeiting, money laundering and terrorist financing.
The Taxation of savings income agreement (2004, updated 2015 and applied provisionally pending entry into force) contributes to clamping down on tax evasion by ensuring the automatic exchange of financial account information, in line with EU rules and OECD standards.
The EU provides, under the EU Partnership Instrument (‘TAIEX’), limited financial support to San Marino through ad-hoc technical cooperation (workshops) on EU legislation.
