The Republic of San Marino uses the euro as its national currency under a monetary agreement with the European Union. The current agreement came into force on 1 September 2012 and replaced the agreement previously signed in 2000. Before the introduction of the euro, San Marino used the lira as a national currency under a monetary agreement with Italy. On 1 January 1999, the euro became the currency of France and Italy. The European Central Bank System (SEBC) is responsible for formulating monetary policy. In their current form, the agreements are not compatible with the distribution of monetary and exchange rate responsibilities under the Maastricht Treaty. It is therefore necessary to conclude new agreements between the Community, Monaco, San Marino and the Vatican. Through a monetary agreement, San Marino uses the euro as the only currency (it previously used the sammarine lira, which was likened to the Italian lira) and is allowed to mark a limited number of coins with their own design.  Between 2001 and 2007, three agreements were concluded between San Marino and the EU to strengthen fiscal integration and, as a result of these agreements, the Republic of San Marino now enjoys greater autonomy and the possibility of hitting its own pieces. On 18 November 2013, the European Commission published its report in which it concluded that “the participation of small countries in the EEA is not currently considered a viable option for political and institutional reasons”, but that association agreements are a more practical mechanism for integrating micro-states into the single market, preferably through a single multilateral agreement with the three states.
 In December 2014, the Council of the European Union approved the opening of negotiations on such an agreement and began in March 2015.  With the introduction of the euro, it was necessary to redefine monetary relations with neighbouring countries that did not have a national currency, but which used the old national currencies of euro area member states such as Monaco, San Marino and the Vatican. Monetary agreements have been concluded to define the conditions under which these countries can use the euro. They were also allowed to mark a number of euro coins, which are now coveted by collectors. In 2003, Andorra also called for such a monetary agreement. In 2013, after much discussion on the evolution of relations between these four entities and taking into account the particular situation of the economies concerned, the European institutions recommended the signing of several association agreements with these three countries.