Holy See-European Union relations

European–Vatican relations

EU	Vatican City

Holy See-European Union relations is the relationship between the European Union (EU) and the Holy See (or Vatican City). This is framed by the Holy See's geography (within an EU capital) while being unable to join.

According to the EU's Copenhagen criteria which define what states are eligible to join the EU, a candidate state must be a free market democracy. Given that the Holy See is a theocracy it does not meet the criteria. However, as it is so small, and surrounded by an EU state (Italy), it is intrinsically linked to the EU. Vatican City has an open border with the EU and intends to join the Schengen Information System. It also uses the euro as its sole currency and has an agreement with the EU allowing them to mint their own coins. The EU gave Italy authority to negotiate a deal with the Holy See in 2000 which allowed the Holy See to mint a maximum of €670,000. After a review of the arrangements, a new agreement came into force in 2010 which allowed the Holy See to mint €1 million a year (plus up to an additional €300,000 on special occasions).

Vatican City is not part of the EU's customs union or its VAT area like some other small European states are. However Vatican City is exempt from duties and taxes and the small amount of goods exported from Vatican City are exempt from duty.

The first representative from the Holy See, an Apostolic Nuncio, was accredited to the EU in 1970. The role of the EU's representative to the Holy See is accorded to the EU representative to the UN in Rome: currently Ambassador Yves Gazzo. The first EU representative to the Holy See was Luis Ritto, accredited in 2006. This accreditation followed a visit by Commission President José Manuel Barroso who wished to create open full diplomatic relations between the two.

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