Holy See–European Union relations


Holy See–European Union relations is the relationship between the European Union and the Holy See. This is framed by the geography of the Holy See's territory while being unable to join.

Cooperation

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 an elective absolute monarchy, with only one major economic actor it does not meet the criteria. However, as it is so small, and surrounded by an EU state, it is intrinsically linked to the EU. Vatican City has an open border with Italy, and therefore with the entire Schengen Area of which Italy is part, and in 2006 indicated an interest in joining the Schengen Information System. It also uses the euro as its sole currency and has an agreement with the EU allowing it to mint its 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 it to mint €1 million a year.
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.

Representations

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.

Points of tension

Some of the more recent events in the relationship have been;
The Vatican City is an ecclesiastical or sacerdotal-monarchical state, and as such does not have the democratic credentials to join the EU and is unlikely to attain them given its unique status. Additionally its economy is also of a unique non-commercial nature. Overall, the mission of the Vatican City state, which is tied to the mission of the Holy See, has little to do with the objectives of the EU Treaty. Thus EU membership is not discussed, even though it is in the heart of an EU member state.