Failed Bulgarian Bid for San Marino Bank Sparks Corruption Probe and EU Tensions

A failed Bulgarian bid to acquire Banca di San Marino has sparked a financial and judicial dispute in the microstate, raising concerns that could impact its joint integration process with the European Union alongside Andorra.

The deal began taking shape late in 2024, when Ente Cassa di Faetano, the bank's main shareholder foundation, sought to sell a significant stake to bolster its capital. Early in 2025, Bulgarian investment group Starcom offered €36.7 million for 51% of the historic institution. However, the transaction collapsed months later.

In October 2025, San Marino's prosecutors launched an investigation into alleged private corruption linked to consultancy contracts tied to the deal. The Central Bank of the Republic of San Marino then withheld the required approval, scuttling the acquisition. Starcom had already injected €15 million in capital, but those funds remain frozen amid the ongoing probe.

San Marino's Foreign Affairs Secretary Luca Beccari described the episode as politically charged, warning of an attempt to "condition San Marino's institutions, the path to the EU, and even judicial activity." Initial judicial findings pointed to a possible "parallel plan" by the Bulgarian side to exert political and institutional pressure for a favorable outcome.

The case, now deemed a matter of state by local media, has drawn mixed reactions. Appeal judge David Brunelli has challenged the "parallel plan" narrative, downplaying the most serious allegations.

The controversy surfaced amid progress on the EU association agreement for Andorra and San Marino. On 11 February 2026, the European Parliament approved a non-binding resolution on the accord, with 552 votes in favour out of 651 and all proposed amendments rejected. Beccari called the result "extremely significant," though nearly 100 MEPs abstained or opposed it—including most Bulgarian representatives.

The resolution advances the procedural timeline, but Bulgaria's stance could prove pivotal if the agreement requires ratification in national parliaments, as now seems likely for a mixed accord. Authorities have not detailed further developments in the San Marino investigation.