It could be a meeting of ambassadors to the Uand (Coreper) to try to unravel – tomorrow Friday 29 May – the intricate affair of theAssociation Agreement between San Marino and Andorra and the European Union. Agreement which is undergoing delays caused by the position of the Bulgarian authorities who complain about the action taken by the Bank of San Marino against theBulgarian businessman Assen Christov who months ago had deposited approximately 15 million euros to acquire, through his company Starcom Holding, a majority stake in Banca di San Marino. These funds have remained frozen pending further investigation.
It is not excluded that the Bulgarian president Romanian Radev, who will be in Brussels today to meet with the President of the EU Commission, Ursula von der Leyen, and the President of the EU Council, António Costa, may raise the issue of the Association Agreement between San Marino and the EU as well as the issue of the Bulgarian investment in San Marino.
Bulgaria deploys Passy against the San Marino-EU agreement
Meanwhile, former Bulgarian Foreign Minister, Solomon PassyIn a letter addressed to the Bulgarian authorities, he requested that San Marino's European integration process be halted until the dispute is resolved. Passy calls the decisions "arbitrary and non-transparent," cites the bilateral investment treaty between Bulgaria and San Marino, and maintains that the issue should be resolved before the final signing of the association agreement with the European Union. The former minister suggests: separate San Marino and Andorra on the European path, allowing the Principality to continue and instead subordinating the Sammarinese path to the resolution of the economic dispute.
According to Passy, "it is important to underline that a future Association Agreement with Andorra and San Marino represents a significant step towards a greater economic integration e politics with the EU and is essential for strengthening economic ties. It is designed to enable access to the EU internal market, including in the banking and financial services sectors. Existing agreements will be replaced and repealed upon their entry into force. Given that the aforementioned case is indicative of a failure to comply with fundamental investment protection requirements and arbitrary actions, it is legitimate to question whether San Marino's regulatory framework is compatible with EU standards. Furthermore, Passy observes, given the substantial interests of partners France, Italy, and Spain in a rapid conclusion of the process, it would be regrettable if the signing and ratification of the association agreement were delayed due to unresolved issues.
EU-San Marino and Andorra: Italy opposes "unbundling"
Italy Bulgaria does not favor a "unbundling" of the San Marino and Andorra Association Agreement from the EU. According to Italian diplomatic sources, Bulgaria remains the only Member State to have not yet lifted its scrutiny reservation regarding the legal nature of the Association Agreement between the European Union, on the one hand, and Andorra and San Marino, on the other, specifically regarding whether it is classified as an agreement under the exclusive competence of the EU ("EU-only") or as a mixed agreement. The reservation was previously motivated by the fact that the previous Bulgarian government was in office solely to handle current affairs and was therefore unable to take a position on this foreign policy issue. With the recent installation of the new Executive, the matter is now being examined by the competent authorities. The issue has not yet been brought before Coreper, but it may be discussed by Coreper at its meeting tomorrow, May 29.
