Microstates and the European Union
Encyclopedia
There are a number of microstates in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

; due to their size, they are often closely linked with another larger state. Currently, the European microstates
European microstates
The European microstates or ministates are a set of very small states in Europe. While Andorra, Liechtenstein, Malta, Monaco, San Marino, and Vatican City are usually included, Luxembourg and Cyprus share certain features as well...

 have special relations with the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

.

They remain outside the Union, some due to the cost of membership, the EU not being designed with microstates in mind. Two other smaller countries in Europe, Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...

 and Malta
Malta
Malta , officially known as the Republic of Malta , is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean, south of Sicily, east of Tunisia and north of Libya, with Gibraltar to the west and Alexandria to the east.Malta covers just over in...

, are full members of the Union. Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

 is considered a microstate by some due to its small population; it is a member of the European Economic Area
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...

 (EEA), and has applied for membership in the EU (See: Accession of Iceland to the European Union).

San Marino
San Marino
San Marino, officially the Republic of San Marino , is a state situated on the Italian Peninsula on the eastern side of the Apennine Mountains. It is an enclave surrounded by Italy. Its size is just over with an estimated population of over 30,000. Its capital is the City of San Marino...

, Monaco
Monaco
Monaco , officially the Principality of Monaco , is a sovereign city state on the French Riviera. It is bordered on three sides by its neighbour, France, and its centre is about from Italy. Its area is with a population of 35,986 as of 2011 and is the most densely populated country in the...

, and the Vatican City
Vatican City
Vatican City , or Vatican City State, in Italian officially Stato della Città del Vaticano , which translates literally as State of the City of the Vatican, is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome, Italy. It has an area of...

 use the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

 and have been granted the right to mint a limited number of euro coins
Euro coins
There are eight euro coin denominations, ranging from one cent to two euros . The coins first came into use in 2002. They have a common reverse, portraying a map of Europe, but each country in the eurozone has its own design on the obverse, which means that each coin has a variety of different...

. They were allowed to do so, having used or been tied to the old eurozone currencies, and all have open borders. Andorra
Andorra
Andorra , officially the Principality of Andorra , also called the Principality of the Valleys of Andorra, , is a small landlocked country in southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. It is the sixth smallest nation in Europe having an area of...

 also uses the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

 and is currently in negotiations with the EU to be granted the right to mint its own coins. Liechtenstein on the other hand uses the Swiss franc
Swiss franc
The franc is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave Campione d'Italia. Although not formally legal tender in the German exclave Büsingen , it is in wide daily use there...

.

All but Andorra are part of the Schengen Agreement
Schengen Agreement
The Schengen Agreement is a treaty signed on 14 June 1985 near the town of Schengen in Luxembourg, between five of the ten member states of the European Economic Community. It was supplemented by the Convention implementing the Schengen Agreement 5 years later...

 or have an open border with the Union. San Marino and Andorra are in a customs union with the bloc. Liechtenstein is a member of the EEA so is within the EU internal market
Internal Market (European Union)
The European Union's Internal Market seeks to guarantee the free movement of goods, capital, services, and people – the EU's four freedoms – within the EU's 27 member states.The Internal Market is intended to be conducive to increased competition, increased specialisation, larger...

 and applies certain EU laws. All of the microstates are also part of other organisations such as the Council of Europe
Council of Europe
The Council of Europe is an international organisation promoting co-operation between all countries of Europe in the areas of legal standards, human rights, democratic development, the rule of law and cultural co-operation...

 and the Organisation for Security and Co-operation in Europe (the Vatican is member only of the OSCE).

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 Application of EU law
European Union law
European Union law is a body of treaties and legislation, such as Regulations and Directives, which have direct effect or indirect effect on the laws of European Union member states. The three sources of European Union law are primary law, secondary law and supplementary law...

Enforceable in local courts Schengen Area
Schengen Area
The Schengen Area comprises the territories of twenty-five European countries that have implemented the Schengen Agreement signed in the town of Schengen, Luxembourg, in 1985...

EU VAT area
European Union Value Added Tax Area
The European Union value added tax area is a territory consisting of all European Union member states and certain other countries which follow the European Union's rules on value added tax . The principle is also valid for some special taxes on products like alcohol and tobacco.Goods are only...

EU customs territory
European Union Customs Union
The European Union Customs Union is a customs union which consists of all the Member States of the European Union and a number of surrounding countries....

EU single market Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...

(details) Minimal Unclear Partial Unilaterally adopted. Formal agreement set to be implemented later
(details) Partial Unclear Set to implement later , CHF
Swiss franc
The franc is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave Campione d'Italia. Although not formally legal tender in the German exclave Büsingen , it is in wide daily use there...

(details) With exemptions Unclear Partial
(details) Minimal Unclear Open border Partial Partial
(details) Open border

See also

  • Foreign relations of the European Union
    Foreign relations of the European Union
    Although there has been a large degree of integration between European Union member states, foreign relations is still a largely inter-governmental matter, with the 27 members controlling their own relations to a large degree. However with the Union holding more weight as a single bloc, there are...

  • EU Enlargement and Microstates
  • European microstates
    European microstates
    The European microstates or ministates are a set of very small states in Europe. While Andorra, Liechtenstein, Malta, Monaco, San Marino, and Vatican City are usually included, Luxembourg and Cyprus share certain features as well...

  • Special member state territories and the European Union
  • European Union Value Added Tax Area
    European Union Value Added Tax Area
    The European Union value added tax area is a territory consisting of all European Union member states and certain other countries which follow the European Union's rules on value added tax . The principle is also valid for some special taxes on products like alcohol and tobacco.Goods are only...

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