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Stanford – Vienna Transatlantic Technology Law Forum A joint initiative of Stanford Law School and the University of Vienna School of Law European Union Law Working Papers No. 51 San Marino: Navigating the European Union as a Microstate Thomas W. Lopez 2021 European Union Law Working Papers Editors: Siegfried Fina and Roland Vogl About the European Union Law Working Papers The European Union Law Working Paper Series presents research on the law and policy of the European Union. The objective of the European Union Law Working Paper Series is to share “works in progress”. The authors of the papers are solely responsible for the content of their contributions and may use the citation standards of their home country. The working papers can be found at http://ttlf.stanford.edu. The European Union Law Working Paper Series is a joint initiative of Stanford Law School and the University of Vienna School of Law’s LLM Program in European and International Business Law. If you should have any questions regarding the European Union Law Working Paper Series, please contact Professor Dr. Siegfried Fina, Jean Monnet Professor of European Union Law, or Dr. Roland Vogl, Executive Director of the Stanford Program in Law, Science and Technology, at: Stanford-Vienna Transatlantic Technology Law Forum http://ttlf.stanford.edu Stanford Law School University of Vienna School of Law Crown Quadrangle Department of Business Law 559 Nathan Abbott Way Schottenbastei 10-16 Stanford, CA 94305-8610 1010 Vienna, Austria About the Author Thomas W. Lopez is a J.D. candidate at Stanford Law School. He earned his bachelor’s degree in History from Yale University in 2019. His main areas of interest include public international law and education policy. He is currently working with Stanford’s Afghanistan Legal Education Project to craft a textbook on administrative law in Afghanistan. General Note about the Content The opinions expressed in this student paper are those of the author and not necessarily those of the Transatlantic Technology Law Forum, or any of TTLF’s partner institutions, or the other sponsors of this research project. Suggested Citation This European Union Law Working Paper should be cited as: Thomas W. Lopez, San Marino: Navigating the European Union as a Microstate, Stanford-Vienna European Union Law Working Paper No. 51, http://ttlf.stanford.edu. Copyright © 2021 Thomas William Lopez Abstract This paper explores the legal mechanisms through which European microstate San Marino interacts with the European Union. Although San Marino is not currently a Member State of the European Union, the Italian enclave is afforded certain privileges through bilateral agreements with both the EU and Italy. By tracing the history of these agreements, the paper illustrates the legal shortcomings and benefits of the current system and outlines strategies for future integration. Table of Contents 1. Introduction ............................................................................................................... 1 2. History of San Marino ................................................................................................ 1 3. Early Bilateral Agreements with Italy ....................................................................... 3 4. Early Multilateral Agreements .................................................................................. 4 5. The 1991 Agreement .................................................................................................. 6 6. The Creation of the European Union ......................................................................... 7 7. The Euro .................................................................................................................... 8 8. An Evolving EU .......................................................................................................... 9 9. Current Integration .................................................................................................. 11 10. Future Integration .................................................................................................... 15 11. Conclusion ................................................................................................................ 19 Introduction Nestled eighty miles east of Florence, Italy, near the coast of the Adriatic Sea is the autonomous, land-locked nation of San Marino. For over 1,600 years San Marino has not only retained its miniscule, mountainous territory, but also its republican form of government—one which some believe to be the oldest-surviving republic in the world.1 The Italian-encapsulated microstate has survived the geopolitical dynamism of European state-making over the past 250 years and has successfully navigated partial integration into the European Union. Although San Marino is not officially a Member State of the European Union, the microstate is afforded certain legal privileges. My research seeks to clarify what exactly these privileges entail. History of San Marino The state of San Marino began as a Christian community during the Roman Empire in the early 4th century.2 Fabled stonemason Marinus is said to have found refuge from Roman religious persecution on San Marino’s crown jewel of Mount Titano—the highest peak of the Apennine Mountains.3 Marinus then established a Christian pilgrim community and instituted a republican form of government for the small territory.4 From the decline of the Roman Empire to the Napoleonic Wars, San Marino existed as one of many sovereign regions within the Italian peninsula.5 San Marino faced one of its greatest tests 1 San Marino country profile, BBC (May 18, 2018) https://www.bbc.com/news/world-europe- 17842338. 2 Charles de Bruc, THE REPUBLIC OF SAN MARINO 9-12 (William Warren Tucker trans., Cambridge: Riverside Press, 2nd ed. 1880). 3 Id. at 13-15. 4 Id. 5 William Miller, The Republic of San Marino, 6 AM. HIST. REV. 633, 645-46 (1901). 1 during Napoleon’s massive consolidation of European states in the early 19th century.6 By 1797, the French commander seemed destined to overtake the microstate, yet when asked what his plans were for the small mountainous community, he remarked that he planned to keep San Marino intact due to its rich history as a republic.7 Napoleon respected the political freedom the Sammarinese enjoyed, and he hoped to see the nation continue to thrive.8 San Marino was tested again during the Italian risorgimento of the mid-19th century.9 Leaders like Giuseppe Mazzini and the Count of Cavour had taken advantage of surging nationalism in Southern Italy and sought to unify the northern Italian states.10 In 1849, San Marino provided sanctuary for General Garibaldi’s fallen unification forces.11 Austrian units soon arrived in pursuit of Garibaldi, pinning the small microstate between fierce rivals.12 Through deft diplomacy, the Sammarinese were able to both allow for Garibaldi’s escape and offer housing and food for the Austrians.13 By the end of the 20th century, the strains of the risorgimento had faded, and San Marino had secured a comfortable foothold in the Italian landscape.14 San Marino later avoided tumult by striving for neutrality in World Wars I and II, successfully retaining its sovereignty throughout the rest of the 20th century and up to the present day.15 6 Id. at 646. 7 Id. 8 Id. 9 James Theodore Bent, A FREAK OF FREEDOM; OR, THE REPUBLIC OF SAN MARINO 191 (Kennikat Press, 1970) (1879). 10 Id. at 192-94. 11 Id. at 194-97. 12 Id. at 197-98. 13 Id. at 198-99. 14 Id. at 191, 210. 15 U.S. DEP’T OF STATE, FOREIGN RELATIONS OF THE UNITED STATES DIPLOMATIC PAPERS 290- 96 (1944) http://digicoll.library.wisc.edu/cgi-bin/FRUS/FRUS- idx?type=div&did=FRUS.FRUS1944v04.i0008&isize=M; Thomas R. Brooks, THE WAR NORTH OF ROME: JUNE 1944 - MAY 1945 210-11 (1996). 2 Early Bilateral Agreements with Italy San Marino’s earliest recorded bilateral treaty was signed in 1862 between Luigi Cibrario of San Marino and Domenico Carutti of Italy.16 The treaty both acknowledged the individual sovereignty of each nation and included a multitude of ways the two nations were to be linked.17 One such bond between the two states would be through the judicial system.18 Per Article 1, judicial rulings of each nation would be executable in the other.19 Subsequent articles address extradition, choice of law in criminal matters, and consequences for military desertion.20 These articles reinforced the notion that the citizens and armies of San Marino are legally distinct from those of Italy. Other notable articles include Article 22 which abolishes the need for a passport to travel between Italy and San Marino,21 Article 23 which allows for free movement of goods across the two states’ shared border,22 and Article 29 in which Italy pledges to conserve San Marino’s liberty and independence.23 Subsequent treaties between Italy and San Marino echoed the language and sentiments of the 1862 Agreement. These agreements built upon on the existing base of legislation between the two states and furthered detailed how the two nations’ political, economic, and legal systems 16 Convenziones fra la Repubblica di San Marino e il Regno d’Italia, San Marino-It., Mar. 3, 1862, Segreteria Di Stato Per Gli Affari Esteri, Per La Cooperazione Economica Internazionale E Le Telecomunicazioni. 17 Id. 18 Id. at Art. 1 19 Id. 20 Id. at Art. 2-20. 21 Id. at Art. 22. 22 Id. at Art. 23. 23 Id. at Art. 29. 3 would interact.24 For example, the 1897 renewal agreement included new provisions detailing family and contract law as well