New Laws in San Marino Will Spur Foreign Investment, Ambassador Tells Qorvis' Focus Washington

Fighting terrorism and money laundering are among the country's top priorities.

WASHINGTON, Aug. 1, 2013 /PRNewswire-USNewswire/ -- Laws passed this year by the San Marino government to combat global terrorism and tax evasion will support the growth of foreign investments within the small country's borders, San Marino Ambassador Paolo Rondelli told Qorvis' Focus Washington.

"San Marino changed a lot in the last years," the ambassador told Focus Washington host Chuck Conconi. "We approved a lot of bills to fight terrorism and money laundering and to improve our legislation."

Tax reform to comply with international standards has been a necessary undertaking for the San Marino government. The European financial crisis left the small nation facing a large outflow of deposits in its banking sector. San Marino has been on Italy's "blacklist" of nations it considers to be tax havens, which has also been an impediment to attracting international business and investment.

Although the government has been instituting reforms for several years, Rondelli said major strides were made when San Marino passed a law "for the development of investments" this summer.

San Marino hopes to be removed from Italy's blacklist and improve its standing with the European Union as the government implements the new measures, which include currency and banking controls to combat money laundering and mechanisms to prevent tax evasion by foreign nationals. In light of this progress, Rondelli was optimistic about future investment in San Marino, saying his home nation is now "a perfect place for a new company."

Rondelli also told Conconi that the United States provided critical technical support to his government in developing these new measures.

"The United States helped us," Rondelli said. "The Department of Treasury sent some experts to San Marino to train the financial investigation unit a couple of years ago, so we are on the same line as the United States: to fight terrorism and money laundering.

The welcome mat is out for investors, and benefits for investors include a path to citizenship.

"We have a lot of room and a lot of buildings that can be a perfect place for a new company established there or for a company owned by a foreign company. So if U.S. investors want to invest, we are ready for them."

Inclusion in the EU

Membership in the European Union is currently a subject of national debate in San Marino, and Rondelli said the decision will eventually be up to the people of San Marino.

"The Captains Regent, the heads of state, have to sign the decree," the ambassador said, which he explained would create a referendum allowing the population to vote on whether San Marino should apply for the European Union."

San Marino has made several integration agreements with the European Union to date, including the adoption of the euro, an open borders policy and a customs union, which includes agricultural products.

"There is a big discussion and we are waiting," Rondelli said.

Historic Importance of Liberty

A long-standing tradition of liberty in San Marino drives the country's policies at home and abroad. Rondelli said San Marino maintains a strong stance on promoting liberty. The word libertas – or "liberty" in Latin – is inscribed on San Marino's coat of arms.

"Freedom is the word that guided our policy since centuries," Rondelli said. "So freedom, interreligious dialogue, intercultural dialogue and international cooperation is our main issue."

San Marino is the world's oldest sovereign republic, founded in 301 A.D. It is also one of the world's smallest nations, with its territory of roughly 24 square miles slightly more than one-third the size of the District of Columbia. It is home to about 35,000 people.

Completely surrounded by Italy, San Marino has vigorously defended its freedom and independence for centuries. The ambassador said a group of cardinals within the Catholic Church attempted to conquer San Marino in the 18^th century, but Pope Clement XII eventually gave official recognition to San Marino's independence.

"They tried to enlarge the Stato della Chiesa [Papal States] with San Marino, too," the ambassador said. "And so they came to San Marino and they invaded San Marino for a while, but the Pope stopped them."

San Marino maintained that independence through the unification of Italy, perhaps through the intervention of Giuseppe Garibaldi with Victor Emmanuel II of Savoy, the new nation's first king. Garibaldi had taken refuge in San Marino for a time as the Roman Republic was collapsing, according to the ambassador.

Ambassador Rondelli, who is also a historian, says this is an extraordinary achievement. He said that San Marino's commitment to freedom dates back to the nation's founding by its namesake, Saint Marinus, a Dalmatian stonemason who was fleeing persecution in present-day Croatia.

"He came to the top of the mountain and reached independence with a small community of Christians," said Rondelli.

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SOURCE Qorvis' Focus Washington