½ Scudo – San Marino

In 2001, San Marino’s currency situation was intrinsically linked to its unique relationship with Italy and the broader European monetary integration process. As a microstate completely surrounded by Italian territory, San Marino had long operated under a formal monetary agreement with Italy, using the Italian Lira as its de facto domestic currency since 1897. While it minted its own distinctive Sammarinese Lira coins (which circulated at par with the Italian Lira), its monetary policy was entirely determined by the Banca d'Italia. This arrangement meant San Marino’s economy and financial stability were directly tied to the Italian economy, which faced significant challenges in the early 2000s, including slow growth and high public debt.

The pivotal event of 2001 was the imminent introduction of euro banknotes and coins on 1 January 2002 across the Eurozone, which included Italy. San Marino, though not a member of the European Union, sought to maintain its traditional monetary link. Consequently, it negotiated a new agreement with the European Community in 2000, ratified in 2001, which allowed it to adopt the euro as its official currency. This agreement permitted San Marino to issue its own limited quantity of euro coins with a national Sammarinese design, similar to its previous lira arrangement, but it would not have the right to issue euro banknotes.

Therefore, the background of 2001 was one of final transition and legal preparation. The year was marked by the final phase-out of the lira and the logistical and public administrative preparations for the euro changeover. For Sammarinese citizens and businesses, the year represented the end of an era defined by the lira and a cautious step into the euro system, ensuring monetary continuity and stability while safeguarding a symbol of national identity through its future euro coins. The transition was smooth, given the existing deep integration with the Italian financial system.