EU Association Agreement: San Marino Declassifies Plan to Strengthen and Modernise Its Banking System

San Marino has made public the agenda approved by the Finance Committee, which sets out the main guidelines for the future of the country’s banking system as part of negotiations on an association agreement with the European Union.

According to RTV San Marino, the document, which had previously been classified, was declassified following a request from opposition groups.

The text calls on the State Congress to begin a dialogue with the European Central Bank (ECB), European supervisory authorities, the Bank of Italy and the Central Bank of San Marino with the aim of defining the content of the so-called Clarifying Addendum.

The document is intended to clarify several aspects of San Marino’s financial system in the context of its future relationship with the European Union.

Strategy to Strengthen the Banking Sector

The agreement establishes that the Government must submit a comprehensive report on the state of the banking system within six months.

The report will specifically assess the main weaknesses identified by international institutions and propose the measures needed to strengthen, consolidate and modernise the sector.

The objectives also include reviewing the supervisory model of the Central Bank of San Marino, strengthening its oversight role and developing a national strategy to attract new qualified investors.

The plan also seeks to facilitate the entry of international financial operators and increase the banking sector’s ability to finance the real economy.

In addition, the document calls for a debate in the Grand and General Council on the public guarantees granted as part of the securitisation of banking assets.

Opposition Calls for Commitments to Be Fulfilled

Following the publication of the document, opposition party Repubblica Futura welcomed its declassification but called on the governing majority to move from commitments to concrete action.

The party argues that, with the EU association agreement approaching, San Marino cannot afford to maintain a policy of limited transparency in financial matters.

It also believes that the Central Bank of San Marino should adopt a more active role and align its operations more closely with European supervisory authorities.

The declassification of the document comes at a time when Andorra and San Marino are continuing to prepare their financial systems for the changes that could result from the entry into force of their respective association agreements with the European Union.