Microstates and the European Union

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The five microstates encompassed by the European Union
The five microstates encompassed by the European Union

There are a number of small microstates in Europe; due to their size they are often closely linked with another larger state and now most European microstates have special relations with the European Union. They remain outside the Union, some due to the cost of membership, the EU not being designed with microstates in mind. However, San Marino, Monaco and the Vatican City use the euro and have been granted the right to mint a limited number of euro coins. They were allowed to do so, having used or been tied to the old eurozone currencies, and all have open borders. Andorra also uses the euro and is currently in negotiations with the EU to be granted the right to mint its own coins. This is scheduled to happen in 2009. All of the microstates are also part of other organisations such as the Council of Europe and the Organisation for Security and Co-operation in Europe.

State EEA Schengen Euro Customs
Flag of Andorra Andorra No Retains controls Without permission Since 1991
Flag of Liechtenstein Liechtenstein Yes Signatory Uses CHF None
Flag of Monaco Monaco No With France Yes, mints own None, part of EU customs
Flag of San Marino San Marino No Open border Yes, mints own Since 2002
Flag of Vatican City Vatican City No Open border & considering Yes, mints own None

Contents

[edit] Andorra

Andorra has had a customs union with the Union since 1991 though is not in the EU's customs territory for agricultural produce. Andorra also maintains its border controls by staying outside of Schengen, though citizens holding a Schengen visa can usually enter.

Andorra is the only microstate to use the euro without an official agreement, having not had one before the euro when it used both the French franc and Spanish peseta. Though Andorra is in talks with the Union over an agreement that would allow it to mint its own coins, these have been stalled recently due to problems over banking rules that Andorra must adopt.

The government has said that "for the time being" there is no need to join the EU;[1] however, the opposition Social Democratic Party are in favour.[2]

[edit] Liechtenstein

Liechtenstein is the only microstate (not counting Iceland by population) that is a part of the European Economic Area (since 1994), thereby being part of the Union's single market with partial application of European law. It is also a signatory of Schengen, since Switzerland signed up and the two countries have an open border with each other. It does not however use the euro, instead using the Swiss franc. It might consider joining the EU if Switzerland joins. If it attained membership it would be by far the smallest member state of the European Union — this might require a significant rearrangement of voting arrangements in the European Parliament.

[edit] Monaco

Monaco currently applies certain policies of the European Union through its special relationship with France, a member state.[3] Monaco is a full part of the EU's customs territory, and applies most EU measures relating to VAT and Excise duties. Monaco is a de facto member of the Schengen area (its borders and customs territory are treated as part of France) and the euro currency zone (minting its own coins, having previously had its currency tied 1:1 with the French franc) and has implemented the EU Directive on the taxation of savings interest.

[edit] San Marino

San Marino has an open border (though not Schengen) and customs union (since 2002, including agriculture) with the Union; it also uses the euro and is allowed to mint its own coins. The left-wing opposition Popular Alliance has been reported to be in favour of joining the EU, which the ruling San Marinese Christian Democratic Party opposes.[4]

[edit] Vatican City

The Vatican City is the smallest State in the world an in the unique position of being a theocracy in the heart of the Union, meaning it is impossible for it to join. It does however have an open border, along with a desire to join Schengen, and it uses and mints the euro officially.

[edit] See also

[edit] References

  1. ^ [1]
  2. ^ http://www.euronews.net/create_html.php?page=europeans&article=357617
  3. ^ The EU's relations with Monaco, European Commission, December 2005
  4. ^ 'Oldest republic' torn by poll-rig claims, The Australian, 2006-06-06
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