The association of European microstates with the EU: Integration test with model value

The European microstates Andorra, Monaco, and San Marino have only been partially integrated into the European single market. Consequently, there are several regulatory gaps in areas such as financial markets, the free movement of workers, as well as within the Schengen Agreement. Moreover, the smooth adaptation of Community acquis is being hampered. In December 2013, the European Council called for the negotiation of a framework Association Agreement with the three countries. For Brussels, the rapprochement of these countries might also serve as a test run for dealing with other European countries whose full membership is rejected either by the EU or by the state concerned. (SWP Comments)