The third smallest state in Europe (after the Holy See and Monaco), San Marino also claims to be the world's oldest republic. According to tradition, it was founded by a Christian stonemason named Marinus in A.D. 301. San Marino's foreign policy is aligned with that of the European Union, although it is not a member; social and political trends in the republic track closely with those of its larger neighbor, Italy.

Southern Europe, an enclave in central Italy

about one third times the size of Washington, DC

Mediterranean; mild to cool winters; warm, sunny summers

air pollution; urbanization decreasing rural farmlands

landlocked; smallest independent state in Europe after the Holy See and Monaco; dominated by the Apennines

31,817 (July 2011 est.)

9.02 births/1,000 population (2011 est.)

7.89 deaths/1,000 population (July 2011 est.)

9.3 migrant(s)/1,000 population (2011 est.)

1.47 children born/woman (2011 est.)

Sammarinese, Italian

9 municipalities (castelli, singular - castello); Acquaviva, Borgo Maggiore, Chiesanuova, Domagnano, Faetano, Fiorentino, Montegiardino, San Marino Citta, Serravalle

Founding of the Republic, 3 September (A.D. 301)

8 October 1600; electoral law of 1926 serves some of the functions of a constitution

civil law system with Italian civil law influences

has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction

18 years of age; universal

unicameral Grand and General Council or Consiglio Grande e Generale (60 seats; members elected by popular vote to serve five-year terms)

Council of Twelve or Consiglio dei XII

Christian Democrats or PDCS [Marco GATTI]; Communist Refoundation or RC [Ivan FOSHI]; Democrats of the Center or DdC [Giovanni LONFERNINI]; Freedom List (including NPS and We Sammarinesi) or NS [Gabriele GATTEI]; New Socialist Party or NPS [Augusto CASALI]; Party of Socialists and Democrats or PDS [Paride ANDREOLI]; Popular Alliance or AP [Carlo FRANCIOSI]; Union of Moderates (including National Alliance or ANS [Glauco SANSOVINI] and San Marino Populars or POP [Romeo MORRI and Angela VENTURINI]; United Left or SU [Alessandro ROSSI]

CE, FAO, IBRD, ICAO, ICRM, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM (observer), IPU, ITU, ITUC, LAIA (observer), OPCW, OSCE, Schengen Convention (de facto member), UN, UNCTAD, UNESCO, Union Latina, UNWTO, UPU, WHO, WIPO

the US does not have an embassy in San Marino; the ambassador to Italy is accredited to San Marino

two equal horizontal bands of white (top) and light blue with the national coat of arms superimposed in the center; the main colors derive from the shield of the coat of arms, which features three white towers on three peaks on a blue field; the towers represent three castles built on San Marino's highest feature Mount Titano: Guaita, Cesta, and Montale; the coat of arms is flanked by a wreath, below a crown and above a scroll bearing the word LIBERTAS (Liberty); the white and blue colors are also said to stand for peace and liberty respectively

San Marino's economy relies heavily on its tourism and banking industries, as well as on the manufacture and export of ceramics, clothing, fabrics, furniture, paints, spirits, tiles, and wine. The per capita level of output and standard of living are comparable to those of the most prosperous regions of Italy, which supplies much of its food. San Marino boasts the world's longest life expectancy for men with 80 years. The economy benefits from foreign investment due to its relatively low corporate taxes and low taxes on interest earnings. San Marino has recently faced increased international pressure to improve cooperation with foreign tax authorities and transparency within its own banking sector, which generates about one-fifth of the country's tax revenues. Italy's implementation in October 2009 of a tax amnesty to repatriate untaxed funds held abroad has resulted in financial outflows from San Marino to Italy worth more than $4.5 billion. Such outflows, combined with a money-laundering scandal at San Marino's largest financial institution and the recent global economic downturn, have contributed to a deep recession and growing budget deficit. Industrial production declined sharply in 2010, especially in the textile sector. However, San Marino has little national debt, and an unemployment rate less than half the size of Italy's. The San Marino government has adopted measures to counter the downturn, including subsidized credit to businesses. San Marino also continues to work towards harmonizing its fiscal laws with EU members and international standards. In September 2009, the OECD removed San Marino from its list of tax havens that have yet to fully implement global tax standards, and in 2010 San Marino signed Tax Information Exchange Agreements with most major countries. The future of the country's economy will be heavily influenced by the signing of a financial information exchange agreement with Italy, which many Italian investors see as fundamental for their business operations with San Marino.

$1.137 billion (2009)

$850 million (2004 est.)

$1.535 billion (2009)

3.8% (November 2010)

5.39% (September 2010)

5.35% (31 December 2009 est.)

$NA (31 December 2008)

$1.326 billion (31 December 2007)

$NA (31 December 2008)

$4.584 billion (31 December 2007)

$8.822 billion (30 September 2010)

$8.008 billion (31 December 2009)

wheat, grapes, corn, olives; cattle, pigs, horses, beef, cheese, hides

tourism, banking, textiles, electronics, ceramics, cement, wine

$2.436 billion (2009)

$4.628 billion (2007)

building stone, lime, wood, chestnuts, wheat, wine, baked goods, hides, ceramics

$2.165 billion (2009)

$3.744 billion (2007)

wide variety of consumer manufactures, food

euros (EUR) per US dollar -

state-owned public broadcaster operates 1 TV station and 2 radio stations; receives radio and TV broadcasts from Italy (2008)

no regular military forces; voluntary Military Force (Corpi Militari) performs ceremonial duties and limited police support functions (2010)

16-55 for voluntary service in Voluntary Military Force (2006)

defense is the responsibility of Italy