Currently, all of the European microstates have some form of relations with the European Union (EU). [1]
Andorra, Liechtenstein, Monaco, San Marino, and the Vatican City remain outside the Union. Andorra is, by population, the largest of the five microstates with around 85,500 citizens according to a 2022 estimate. [2] Two other small countries, Luxembourg and Malta, are full members of the EU and both inhabited by populations over 600,000 and over 500,000 respectively.
Andorra, Monaco, San Marino, and the Vatican City use the euro through monetary agreements with the EU, and have been granted the right to issue a limited number of euro coins. They were allowed to do so as they had used or been tied to the old eurozone currencies. Liechtenstein, on the other hand, uses the Swiss franc.
Liechtenstein is a full member in its own right of the Schengen Agreement, European Free Trade Association (EFTA) and Dublin Regulation on asylum and has signed an agreement to participate in the Prüm Decisions, while Monaco has an open border with France and Schengen laws are administered as if it were a part of France. San Marino and the Vatican City, both enclaves within Italy, have open borders with Italy and are de facto part of the Schengen Area. No systematic border checks are conducted between Andorra and the Schengen Area. No microstates can issue Schengen visas.[ citation needed ] None of them have any airport, but all have heliports. Monaco has the only seaport; the others are landlocked. Arrival from outside the Schengen Area is allowed in Monaco, [3] [4] but not in San Marino and the Vatican City as they have no border controls. [4]
Monaco is a part of the EU customs territory through an agreement with France, and is administered as part of France. San Marino and Andorra are in a customs union with the bloc. Liechtenstein, as a member of the EEA, is within the European Single Market and applies certain EU laws. All of the microstates are also part of other organisations such as the Council of Europe (except Vatican City) and the Organization for Security and Co-operation in Europe.
Iceland and Liechtenstein are members of the European Economic Area (EEA) through the EFTA. San Marino had considered joining the EEA in the past, [5] [6] and held a referendum on submitting an application for EU membership, which was approved by its electorate; however, not enough votes were cast for the result to be considered valid. [7] Iceland was previously an official candidate for accession to the European Union. Had Iceland acceded to the Union, it would have become the EU's smallest state measured by population, but twelfth largest by geographical size. The Icelandic government withdrew its application for membership in 2015. [8]
Andorra, Monaco, and San Marino have all stated their desire to deepen relations with the EU. In November 2012, after the Council of the European Union had called for an evaluation of the EU's relations with these microstates, which they described as "fragmented", [9] the European Commission published a report outlining options for their further integration into the EU. [7] Unlike Liechtenstein, which is a member of the EEA via the EFTA and the Schengen Agreement, relations with these three states are based on a collection of agreements covering specific issues. The report examined four alternatives to the current situation: 1) a Sectoral Approach with separate agreements with each state covering an entire policy area, 2) a comprehensive, multilateral Framework Association Agreement (FAA) with the three states, 3) EEA membership, and 4) EU membership. The Commission argued that the sectoral approach did not address the major issues and was still needlessly complicated, while EU membership was dismissed in the near future because "the EU institutions are currently not adapted to the accession of such small-sized countries." The remaining options, EEA membership and a FAA with the states, were found to be viable and were recommended by the Commission. In response, the Council requested that negotiations with the three microstates on further integration continue, and that a report be prepared by the end of 2013 detailing the implications of the two viable alternatives and recommendations on how to proceed. [10]
As EEA membership is currently only open to EFTA or EU members, the consent of existing EFTA member states is required for the microstates to join the EEA without becoming members of the EU. In 2011, Jonas Gahr Støre, the then Foreign Minister of Norway which is an EFTA member state, said that EFTA/EEA membership for the microstates was not the appropriate mechanism for their integration into the internal market due to their different requirements than large countries such as Norway, and suggested that a simplified association would be better suited for them. [11] Espen Barth Eide, Støre's successor, responded to the Commission's report in late 2012 by questioning whether the microstates have sufficient administrative capabilities to meet the obligations of EEA membership. However, he stated that Norway was open to the possibility of EFTA membership for the microstates if they decide to submit an application, and that the country had not made a final decision on the matter. [12] [13] [14] [15] Pascal Schafhauser, the Counsellor of the Liechtenstein Mission to the EU, said that Liechtenstein, another EFTA member state, was willing to discuss EEA membership for the microstates provided their joining did not impede the functioning of the organization. However, he suggested that the option direct membership in the EEA for the microstates, outside of both the EFTA and the EU, should be given consideration. [14]
On 18 November 2013 the EU Commission published their report which concluded that "the participation of the small-sized countries in the EEA is not judged to be a viable option at present due to the political and institutional reasons", but that Association Agreements were a more feasible mechanism to integrate the microstates into the internal market, preferably via a single multilateral agreement with all three states (Andorra, Monaco & San Marino). [16] In December 2014 the Council of the European Union approved negotiations being launched on such an agreement, [17] and they began in March 2015. [18] Negotiations had been planned to be concluded by 2020. [19] Andorran ambassador to Spain Jaume Gaytán stated in 2015 that he hoped that the agreement would include provisions to make the states associate members of the Schengen Agreement, [20] though the final text did not include such provisions. However, on 30 May 2024 the Council of the European Union authorised the opening of negotiations for separate agreements between the European Union and Andorra and San Marino, respectively, in order to create a legal basis for the absence of border controls between these countries and the Schengen Area. [21] [22]
In December 2023, the European Commission announced the conclusion of negotiations on a new Association Agreement between the EU and Andorra and San Marino; [23] negotiations with Monaco had been suspended in September 2023 due to disputes over financial regulation. [24] The Commission formally put forward a proposal to the Council of the European Union in April 2024 to adopt decisions approving that the agreement be signed and concluded. [25]
This table summarises the various components of EU laws applied in the microstates. Some territories of EU member states also have a special status in regard to EU laws applied as is the case with some European Free Trade Association members and their sovereign territories.
Microstates | Association Agreement | Eurozone [26] | Schengen Area | EU single market | EU customs territory [27] | EU VAT area [28] | Dublin Regulation | Prüm Decisions |
---|---|---|---|---|---|---|---|---|
![]() | Negotiating [18] | Yes [Note 1] | Open border [Note 2] | No | Partial [Note 3] | No | No | No |
![]() | Yes [Note 4] | No [Note 5] | Yes | Yes [Note 6] | No [Note 7] | No | Yes | Agreement signed [38] |
![]() | Negotiating [18] | Yes [Note 1] | De facto [Note 8] | Partial [Note 9] | Yes [Note 10] | Yes [Note 11] [Note 12] | No | No |
![]() | Negotiating [18] | Yes [Note 1] | Open border [Note 13] | No | Partial [Note 3] | No [Note 14] [Note 15] | No | No |
![]() | No | Yes [Note 1] | Open border [Note 13] | No | No | No | No | No |
This table provides a comparison between major statistics of the microstates to the smallest EU member states.
Microstates | Relationship | Population | Area (km2) | GDP (nom) | HDI |
---|---|---|---|---|---|
![]() | Agreements | 79,877 | 467 | $3.4 billion | 0.845 |
![]() | EEA State | 376,248 [44] | 102,775 [45] | $27.7 billion [46] | 0.959 [47] |
![]() | EEA State | 37,340 | 160 | $5.3 billion | 0.908 |
![]() | EU State | 672,050 | 2,586 | $90.532 billion | 0.892 |
![]() | EU State | 519,562 | 316 | $17.15 billion | 0.839 |
![]() | Agreements | 38,300 | 2 | $7.672 billion | n/a |
![]() | Agreements | 33,600 | 61 | $1.62 billion | n/a |
![]() | Agreements | 453 | 0.44 | n/a | n/a |
The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European states: Iceland, Liechtenstein, Norway and Switzerland. The organization operates in parallel with the European Union (EU), and all four member states participate in the European Single Market and are part of the Schengen Area. They are not, however, party to the European Union Customs Union.
The European Economic Area (EEA) was established via the Agreement on the European Economic Area, an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Association (EFTA). The EEA links the EU member states and three of the four EFTA states into an internal market governed by the same basic rules. These rules aim to enable free movement of persons, goods, services, and capital within the European single market, including the freedom to choose residence in any country within this area. The EEA was established on 1 January 1994 upon entry into force of the EEA Agreement. The contracting parties are the EU, its member states, and Iceland, Liechtenstein, and Norway. New members of EFTA would not automatically become party to the EEA Agreement, as each EFTA State decides on its own whether it applies to be party to the EEA Agreement or not. According to Article 128 of the EEA Agreement, "any European State becoming a member of the Community shall, and the Swiss Confederation or any European State becoming a member of EFTA may, apply to become a party to this Agreement. It shall address its application to the EEA Council." EFTA does not envisage political integration. It does not issue legislation, nor does it establish a customs union. Schengen is not a part of the EEA Agreement. However, all of the four EFTA States participate in Schengen and Dublin through bilateral agreements. They all apply the provisions of the relevant Acquis.
The European Union has a number of relationships with foreign states. According to the European Union's official site, and a statement by Commissioner Günter Verheugen, the aim is to have a ring of countries, sharing EU's democratic ideals and joining them in further integration without necessarily becoming full member states.
A European Union Association Agreement or simply Association Agreement (AA) is a treaty between the European Union (EU), its Member States and a non-EU country that creates a framework for co-operation between them. Areas frequently covered by such agreements include the development of political, trade, social, cultural and security links.
A European microstate or European ministate is a very small sovereign state in Europe. In modern usage, it typically refers to the six smallest states in Europe by area: Andorra, Liechtenstein, Malta, Monaco, San Marino, and Vatican City. Andorra, Liechtenstein, Monaco and Vatican City are monarchies. These states trace their status back to the first millennium or the early second millennium except for Liechtenstein, created in the 17th century.
A customs union is the principal area of robust formal agreement between the Principality of Andorra and the European Union (EU). Andorra borders two EU member states: France and Spain.
Switzerland is not a member state of the European Union (EU). It is associated with the Union through a series of bilateral treaties in which Switzerland has adopted various provisions of European Union law in order to participate in the Union's single market, without joining as a member state. Among Switzerland's neighbouring countries, all but one are EU member states.
Liechtenstein passports are issued to nationals of Liechtenstein for the purpose of international travel. Beside serving as proof of Liechtenstein citizenship, they facilitate the process of securing assistance from Liechtenstein consular officials abroad.
The European Union Customs Union (EUCU), formally known as the Community Customs Union, is a customs union which consists of all the member states of the European Union (EU), Monaco, and the British Overseas Territory of Akrotiri and Dhekelia. Some detached territories of EU states do not participate in the customs union, usually as a result of their geographic separation. In addition to the EUCU, the EU is in customs unions with Andorra, San Marino and Turkey, through separate bilateral agreements.
1 These countries are currently not participating in the EU's single market (EEA), but the EU has common external Customs Union agreements with Turkey, Andorra and San Marino. Monaco participates in the EU customs union through its relationship with France; its ports are administered by the French. Vatican City has a customs union in effect with Italy.
2 Monaco, San Marino and Vatican City are not members of Schengen, but act as such via their open borders with France and Italy, respectively.
3 Switzerland is not an official member of EEA but has bilateral agreements largely with same content, making it virtual member.
The Schengen Area is an area encompassing 29 European countries that have officially abolished border controls at their mutual borders. Being an element within the wider area of freedom, security and justice policy of the European Union (EU), it mostly functions as a single jurisdiction under a common visa policy for international travel purposes. The area is named after the 1985 Schengen Agreement and the 1990 Schengen Convention, both signed in Schengen, Luxembourg.
Relations between the Principality of Liechtensteinand the European Union (EU) are shaped heavily by Liechtenstein's participation in the European Economic Area (EEA).
Relations between the Republic of San Marino and the European Union (EU) began in February 1983. San Marino is completely surrounded by one EU member state, Italy.
Relations between the Principality of Monaco and the European Union (EU) are primarily conducted through France. Through that relationship Monaco directly participates in certain EU policies. Monaco is an integral part of the EU customs territory and VAT area, and therefore applies most measures on excise duties and VAT. Monaco borders one EU member state: France. However this relationship does not extend to external trade. Preferential trade agreements between the EU and third countries apply only to goods originating from the customs territory – Monaco may not claim EU origin in this respect.
Monaco does not have a visa policy of its own and the Schengen Visa policy applies. Although Monaco is not part of the European Union, or the Schengen Agreement, its territory is part of the Schengen Area by virtue of its customs Union with France as a result of the "Convention on Good Neighbourly Relations of 18 May 1963 on the entry, stay and establishment of foreigners in Monaco" between France and Monaco. The 1963 convention was adapted to allow Monaco to be administered within the Schengen Area as if it were part of France.
National identity cards are identity documents issued to citizens of most European Union and European Economic Area (EEA) member states, with the exception of Denmark and Ireland. As a new common identity card model replaced the various formats in use from 2 August 2021, recently issued ID cards are harmonized across the EEA, while older ID cards are currently being phased out according to Regulation (EU) 2019/1157.
The United Kingdom (UK) was a member of the European Economic Area (EEA) from 1 January 1994 to 31 December 2020, following the coming into force of the 1992 EEA Agreement. Membership of the EEA is a consequence of membership of the European Union (EU). The UK ceased to be a Contracting Party to the EEA Agreement after its withdrawal from the EU on 31 January 2020, as it was a member of the EEA by virtue of its EU membership, but retained EEA rights during the Brexit transition period, based on Article 126 of the withdrawal agreement between the EU and the UK. During the transition period, which ended on 31 December 2020, the UK and EU negotiated their future relationship.
Passports of the EFTA member states are passports issued by the European Free Trade Association (EFTA) member states Iceland, Liechtenstein, Norway and Switzerland. EFTA is in this article used as a common name for these countries.
In British politics, the "Norway-plus model" was a proposal for a post-Brexit settlement, which the British government did not pursue. Proposed in November 2018 as an alternative to the Chequers plan, it would have consisted of membership of the European Free Trade Association (EFTA) and of membership of the European Economic Area (EEA) as an EFTA member state, combined with a separate customs union with the EU to create a trade relationship similar to that between the EU and its member states today, with the exception of the political representation in the EU's bodies. Michel Barnier, the EU's Chief Negotiator, has always said that a model that combined EEA/EFTA and a customs union was one that he would be happy to consider.