EN    EN EN 
EN    EN  EUROPEAN COMMISSION 
Brussels, 2.3.2011 
SEC(2011) 249 final 
  
Recommendation for a 
COUNCIL DECISION 
of 2.3.2011 
on the arrangements for the negotiation of a Monetary Agreement with the French 
Republic, acting for the benefit of the Fren ch overseas collectivity of Saint-Barthélemy 
EN 2   EN EXPLANATORY MEMORANDUM  
• The Island of Saint-Barthélemy – currently listed among the EU outermost regions - has 
expressed the wish to change of legal status, with a view to becoming an overseas territory, 
covered by Part Four of the Treaty on the F unctioning of the European Union. The French 
President has asked in a letter dated 30 June  2010 the European Council to decide such a 
change, which it approved during its meeti ng of 29 October 2010, with effect from 1st 
January 2012.  
• The French authorities have expressed the wish  to maintain the euro in Saint-Barthélemy, 
despite the fact that the island wi ll no longer be part of the te rritory of the Eu ropean Union. 
The use of the euro as an official currency outs ide of the EU with the consent of the latter 
is not unprecedented: the EU has concluded monetary agreem ents on the basis of Article 
219 (3) of the Treaty with th e Principality of Monaco, th e Republic of San Marino, the 
Vatican City State and is about to conclude a fourth agreement with  the Principality of 
Andorra. The euro is the official currency of  Saint-Pierre et Mi quelon et Mayotte, two 
French Overseas countri es and territories. 
• Those agreements acknowledge the official use of the euro and ensure that the legislation 
which is needed for the good functioning of the economic and monetary union is made applicable to the country concerned. The fi elds covered include usually mainly the 
monetary, banking and financial legislations a nd the various texts related to the prevention 
of fraud, counterfeiting and money laundering.  
• None of the above mentioned fields falls unde r the competence of the overseas collectivity 
of Saint-Barthélemy. Though the EU texts requ iring transposition measures by France will 
thus remain applicable to Saint-Barthélemy, an ad hoc solution is nevertheless needed to 
guarantee the continuous applicability to this overseas collectivity of the relevant present 
and future legal acts or legal instruments produc ing direct effects, not ably Regulations and 
ECB decisions.  
• The Commission should therefore be mandated to conclude a monetary agreement to this 
effect between the European Union and the Fr ench Republic, acting for the benefit of the 
overseas collectivity of Saint-Barthélemy. The ECB should be associated to this negotiation.  
EN 3   EN Recommendation for a 
COUNCIL DECISION 
of 2.3.2011 
on the arrangements for the negotiation of a Monetary Agreement with the French 
Republic, acting for the benefit of the Fren ch overseas collectivity of Saint-Barthélemy 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty on the Functioning of the European Union, and in particular 
Article 219(3) thereof, 
Having regard to the recomm endation from the Commission1, 
Having regard to the opinion of  the European Central Bank2, 
Whereas: (1) The Union has the competence for monetary an d exchange rate matte rs as of the date 
of the introduction of the euro. 
(2) The Council is to determine the arrangements for the negotiation and conclusion of 
agreements concerning monetary or foreign exchange regime matter. 
(3) The European Council D ecision of 29 October 2010
3 amending the status with regard 
to the European Union of the island of Saint-Barthélemy foresees that the island of Saint-Barthélemy shall cease to be an outermo st region of the Union with effect from 
1 January 2012 and shall have the status of overseas country or terr itory referred to in 
Part Four of the Treaty on the Func tioning of the European Union (TFUE).  
(4) The French Republic has undertaken to conclude the agreements necessary to ensure 
that the interests of the Union are pres erved when this change takes place.  
(5) France has informed the EU institutions of its  intention to retain the euro as the sole 
currency on Saint-Barthélemy.  
(6) A monetary agreement should therefore be  negotiated between the European Union 
and the French Republic, acting for the benef it of the French overseas collectivity of 
Saint-Barthélemy, with a view to ensuri ng the continuous a pplication to Saint-
Barthélemy of the relevant EU legislations.  
                                                
 
1 OJ C , , p. . 
2 OJ C , , p. . 
3 OJ L 325, 9.12.2010, p. 4. 
EN 4   EN HAS ADOPTED THIS DECISION:  
Article 1 
The European Union shall seek the following elements in the negotiation of a Monetary 
Agreement with the French Republic, acting for th e benefit of the French  overseas collectivity 
of Saint-Barthélemy: 
(a) The French Republic shall be authorised to retain the euro as the sole currency on Saint-
Barthélemy and to grant legal tender status to euro banknotes and coins on the territory of the 
latter.  
(b) The EU legal acts in the following fields sh all remain applicable on the territory of the 
island of Saint-Barthélemy: monetary, banking and financial legislation (including supervision of the institutions concerned), rules laying down th e measures necessary for the 
use of the euro, prevention of money laundering and of fraud and counterfeiting of cash and 
non-cash means of payment, rules on medals  and tokens and on statistical reporting 
requirements. 
(c) This continuous applicability  of the relevant EU legal ac ts shall be ensured either: 
- via the French transposition measures (for the EU directives) and via direct enforcement (for 
the EU legal acts producing direct effects); 
- or via a change in the relevant French law,  with a view to ensuring the full and immediate 
applicability of EU law to Saint-Barthélemy in the fields mentioned in paragraph (b). 
Article 2 
The Commission shall conduct the negotiation w ith the French Republic, acting for the 
benefit of the French overseas collectivity of Saint-Barthélemy. The ECB shall be fully associated with the negotiations and agree on issu es falling within in its field of competence.  
Article 3 
The Council, on a proposal by the Commission, shall adopt th e decision authorising the 
signing and concluding of the agreement. 
This Decision is addressed to the Commission and the ECB. 
Done at Brussels, 2.3.2011 
For the Council 
The President