European microstates Andorra and San Marino are to get expanded access to the EU’s single market — but their important financial sectors are to be excluded for now.
Once ratified, the “association agreement” will allow the two tiny nations a similar level of participation in the EU’s single market to Norway, Iceland and Liechtenstein. They will be able to benefit from free movement of people, goods, services and capital if they follow many of the bloc’s regulations.
However, due to fears that Andorra and San Marino are too lax on policing of their financial industries, access to the bloc’s financial services market won’t be as comprehensive as once envisaged and will be “progressive,” according to the European Commission.
Nonetheless, the deal is “one of the most far-reaching offered by the EU to outside partners,” Commission vice-president Maroš Šefčovič said.
The deal has been in negotiations since 2015, and originally also included Monaco, which dropped out of talks last year.
The agreement has not yet been formally approved and still needs to be ratified by all sides, including approval by the European Parliament, which will not meet again until July after the EU election on June 6-9. San Marino will hold a general election on June 9.
Read more via Politico
