San Marino

chief of state:

Co-chiefs of State Captain Regent Teodoro LONFERNINI and Captain Regent Denise GRONZETTI (for the period 1 October 2012-1 April 2013)

head of government:

Secretary of State for Foreign and Political Affairs Antonella MULARONI (since 3 December 2008)

cabinet:

Congress of State elected by the Great and General Council for a five-year term; (For more information visit theWorld Leaders website)

elections:

• co-chiefs of state (captains regent) elected by the Grand and General Council for a six-month term;
• election last held in 17 Septermber 2012 (next to be held in March 2013);
• secretary of state for foreign and political affairs elected by the Grand and General Council for a five-year term;
• election last held on 9 November 2008 (next to be held by 2013)

election results:

• Teodoro LONFERNINI and Denise BRONZETTI elected captains regent;
• percent of legislative vote - NA;
• Antonella MULARONI elected secretary of state for foreign and political affairs;
• percent of legislative vote - NA

note: the popularly elected parliament (Grand and General Council) selects two of its members to serve as the Captains Regent (co-chiefs of state) for a six-month period;

they preside over meetings of the Grand and General Council and its cabinet (Congress of State), which has 10 other members, all are selected by the Grand and General Council; assisting the captains regent are 10 secretaries of state; the secretary of state for Foreign Affairs has assumed some prime ministerial roles

San Marino's economy relies heavily on its banking industry and on the manufacture and export of ceramics, clothing, fabrics, furniture, paints, spirits, tiles, and wine. The manufacturing and financial sectors account for more than half of San Marino's GDP. The per capita level of output and standard of living are comparable to those of the most prosperous regions of Italy, which supplies much of the food San Marino consumes.

The economy benefits from foreign investment due to its relatively low corporate taxes and low taxes on interest earnings. The income tax rate is also very low, about one-third the average EU level. San Marino does not issue public debt securities, and when necessary, finances its deficits by drawing down deposits at its central bank.

San Marino's economy encounted setbacks in recent years as a result of weak demand from Italy - which accounts for 90% of its export market - and financial sector consolidation. Italy's implementation in October 2009 of a tax amnesty to repatriate untaxed funds held abroad has resulted in financial outflows from San Marino to Italy worth more than $4.5 billion.

These outflows have contributed to a consolidation in the financial sector. Bank difficulties, combined with a money-laundering scandal at San Marino's largest financial institution and with the recent global economic downturn, have led to a deep recession, a growing budget deficit, and a higher level of debt.

The government has adopted measures to counter the economic downturn, including subsidized credit to businesses. San Marino also continues to work towards harmonizing its fiscal laws with EU members and international standards. In September 2009, the OECD removed San Marino from its list of tax havens that have yet to fully adopt global tax standards, and in 2010 San Marino signed Tax Information Exchange Agreements with most major countries.

San Marino's government continues to work with Italy to ratify a financial information exchange agreement, seen by businesses and investors as crucial to strengthening the economic relationship between the two countries.