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

Sammarinese, Italian

32,140 (July 2012 est.)

8.9 births/1,000 population (2012 est.)

8.06 deaths/1,000 population (July 2012 est.)

8.96 migrant(s)/1,000 population (2012 est.)

1.48 children born/woman (2012 est.)

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

San Marino Common Good Christian Democrats or PDCS [Marco GATTI]; Party of Socialists and Democrats or PSD [Gerardo GIOVAGNOLI]; Popular Alliance or AP [Mario VETURINI]; Entente for the Country Socialist Party or PS [Augusto CASALI]; Union for the Republic or UPR [Giovanni LONFERNINI]; Union of Moderates; note - believed to have been dismantled; Active Citizenship United Left or SU; Civic 10; Civic Movement R.E.T.E. (Network); For San Marino [Emilio DELLA BALDA]; San Marino 3.0 [Simone DELLA VALLE]

CE, FAO, IAEA, IBRD, ICAO, ICC (NGOs), ICRM, IDA, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM (observer), IPU, ITU, ITUC (NGOs), 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

three peaks each displaying a tower

San Marino's economy relies heavily on its banking industry and on the manufacture and export of ceramics, clothing, fabrics, furniture, paints, spirits, tiles, and wine. The manufacturing and financial sectors account for more than half of San Marino's GDP. 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 the food San Marino consumes. The economy benefits from foreign investment due to its relatively low corporate taxes and low taxes on interest earnings. The income tax rate is also very low, about one-third the average EU level. San Marino does not issue public debt securities, and when necessary, finances its deficits by drawing down deposits at its central bank. San Marino's economy encounted setbacks in recent years as a result of weak demand from Italy - which accounts for 90% of its export market - and financial sector consolidation. 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. These outflows have contributed to a consolidation in the financial sector. Bank difficulties, combined with a money-laundering scandal at San Marino's largest financial institution and with the recent global economic downturn, have led to a deep recession, a growing budget deficit, and a higher level of debt. The government has adopted measures to counter the economic 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 adopt global tax standards, and in 2010 San Marino signed Tax Information Exchange Agreements with most major countries. San Marino's government continues to work with Italy to ratify a financial information exchange agreement, seen by businesses and investors as crucial to strengthening the economic relationship between the two countries.

$1.357 billion (2012 est.)

$1.393 billion (2011 est.)

$1.43 billion (2010 est.)

$1.85 billion (2012 est.)

22,050 (December 2011)

3.1% (December 2011)

5.92% (31 December 2011 est.)

5.38% (31 December 2010 est.)

$NA (31 December 2011)

$1.326 billion (31 December 2007)

$NA (31 December 2011)

$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

$2.576 billion (2010 est.)

$2.436 billion (2009)

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

$2.132 billion (2010 est.)

$2.165 billion (2009)

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 Corps (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