The path of San Marino towards a greater integration with Europe

The economic policy strategies of small European states have always been shaped by the understanding that their limited domestic resources necessitate finding adequate outlets for their economies. Attracting investors, capital, and consumers on one hand, and expanding the target market for domestic enterprises on the other, are key factors driving economic development in countries like San Marino. The inherent "structural" limitations of small states make them particularly susceptible to the need for internationalization. However, this need must be balanced with the desire to preserve sovereignty, identities, and the unique characteristics that form the foundation of their existence. In other words, it is precisely this balance between the need to open up to the world and the desire to preserve themselves that has led countries like San Marino, Monaco, Andorra, and Liechtenstein, although "European states" in their own right, to refrain from following the same path as the nations that created the European Union. However, they have not given up on establishing stable and effective relations that would allow them to overcome the physical barriers to trade with EU countries.

In an increasingly globalized and turbulent international economic context, small European states now face more complex challenges. This has highlighted the need for a new framework of relations with the EU to overcome the limitations posed by their "third country" status, which has become more of an obstacle to development than ever before. For these reasons, San Marino, Andorra, and Monaco, with different timelines and starting points, have embarked on independent paths to overcome this situation and achieve agreements with the EU that would allow for greater integration into the single market.

The European Union has positively assessed these expressions of interest. After a period of evaluation and discussion, the EU reached a conclusion that addresses the needs of all three states: "The Council reiterates that a closer association of Andorra, Monaco, and San Marino with the EU is also in the interest of the EU itself. It should help fill gaps and resolve inconsistencies in relations that are currently fragmented and diverge from one country to another. Moreover, the enhanced participation of the three countries in the internal market could have a positive, albeit limited, economic impact on the EU, particularly in terms of employment in neighboring regions and cross-border economic activities." (Council Conclusions on the EU's relations with Andorra, San Marino, and Monaco, December 16, 2013).

These Council Conclusions represent a crucial turning point in San Marino-EU relations, consolidating the political will to begin negotiations on an association agreement that will enable San Marino to integrate more fully into the European single market.