Copyright Marcus Wandinger

The Vatican, covering only 0.44 km² in the heart of Rome, is the smallest state in the world. It is an independent, sovereign state and not a member of the European Union. Nor does it belong to the Community or its customs territory. The Vatican’s customs rules are based on a 1930 agreement with Italy which exempts the Vatican from all Community duties and taxes. The small amount of goods originating in the Vatican and exported to Italy is exempt from duty and subject to a preferential arrangement.

The first Apostolic Nuncio was accredited to the European Communities in 1970. The European Commission appointed the Head of Delegation to the United Nations in Rome as representative to the Holy See in 2006.

In view of the introduction of the Euro, the EU Council of Ministers authorized Italy to negotiate a Monetary Agreement with the Vatican City which was signed in 2000. In 2009, a review of the existing Monetary Agreements resulted into necessary amendments. Therefore a new Monetary Agreement was concluded between the EU and the Vatican City State. It came into force on 1 January 2010.