Economic Policies and Relationship With The European Union
The European microstates are all of limited size and population, and have limited natural resources. As a result, they have adopted special economic policies, typically involving low levels of taxation and few restrictions on external financial investment. Malta is a full member of the European Union, while the other five European microstates have obtained special relations with the European Union. Many of the microstates have also entered into a customs union with their larger neighbours to improve their economic situation (Vatican City and San Marino with Italy, Liechtenstein with Switzerland, Monaco with France).
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