CUSTOMS AND MONETARY RELATIONS BETWEEN THE EUROPEAN UNION AND NEIGHBORING MICROSTATES
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Abstract
European Union has several neighboring “microstates”, i.e., states with an area of up to 1,000 square kilometers. Those are Andorra, Liechtenstein, Monaco, San Marino, and Vatican City. Liechtenstein is a contracting state to the Agreement on the European Economic Area. The others have with the EU a particular regime of international treaties. The present article deals with a system of such treaties in customs and monetary matters as well as with interpretation of some of their provisions by the Court of Justice of the European Union. The prospect of EU membership of Andorra, Monaco, San Marino, or Vatican City seems to be not realistic. On the EU side, there is a view that whilst all the “microstates” are historically unique, many do in fact have similarities when it comes to their legal relation with the EU. There is a broad acceptance within the EU institutions that the “microstates” have to continue to be treated according to their sui generis nature, but at the same time, the maintenance of a legal relationship between the parties has been very important to the EU. “Microstates” have a keen interest in diversifying small economies. This is imaginable on various levels. The minimal framework was created for relations with Vatican City including a customs regime and the circulation of the euro after 2002. Andorra and San Marino have negotiated their Association Agreements permitting their partial integration into the EU single market without any perspective for EU membership. The legal relationship between the EU and Monaco remains fragmented and it seems that more integration through major international agreements could be more wise.
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