Opinion of the European Central Bank at the request of the Council of the European Union under Article 109(3) of the Treaty establishing the European Community on three recommendations for three Council Decisions concerning monetary relations with the Principality of Monaco, the Republic of San Marino and the Vatican City
Date: 1998-12-30
Institutions: European Central Bank
Subjects: European Central Bank, Holy See, Monaco, San Marino, monetary relations

C 127/4

EN

Official Journal of the European Communities

7.5.1999

EUROPEAN CENTRAL BANK

OPINION OF THE EUROPEAN CENTRAL BANK

at the request of the Council of the European Union under Article 109(3) of the Treaty estab-
lishing the European Community on three recommendations for three Council Decisions
concerning monetary relations with the Principality of Monaco, the Republic of San Marino
and the Vatican City

(1999/C 127/05)

1. On 21 December 1998 the European Central Bank (ECB)
received a request from the Council of the European Union
for an ECB Opinion on three Recommendations of
the
Commission of
the European Communities (COM(1998)
789 final) for three Council Decisions (EC) on the position
to be taken by the Community regarding an agreement
concerning monetary relations with the Principality of
Monaco, the Republic of San Marino and the Vatican City
respectively.

referred to as

2. The ECB’s competence to deliver an opinion is based on
the Treaty establishing the European
Article 109(3) of
Community (hereinafter
In
accordance with Article 17.5, first sentence, of the Rules
of Procedure, this ECB opinion has been adopted by the
Governing Council of the ECB. It is only in the context of
the exceptional circumstances of the changeover to the euro
that the ECB has agreed to comply with the request of the
Council and adopt its Opinion within the short deadlines
established in the consultation request.

the (cid:145)Treaty(cid:146)).

3. The draft Council Decisions provide for agreements to be
concluded between the Community and the Principality of
Monaco, the Republic of San Marino and the Vatican City
respectively. The agreements concern only the issuance and
use of banknotes and coins, access to payment systems
within the euro area and the legal status of the euro in
the Principality of Monaco, the Republic of San Marino
and the Vatican City. This is to comply with Declaration
the Treaty, which requires the Community to
No 6 of
existing
undertake
to facilitate
arrangements with the
the
Republic of San Marino and the Vatican City, as might
become necessary as a result of the introduction of the
single currency.

renegotiations of
Principality of Monaco,

the

4. The ECB agrees with the scope of monetary links to be
established on the basis of the agreements laid down in
the draft Council Decisions. Given the existing economic
relations between France and the Principality of Monaco
on the one hand, and Italy and the Republic of San
Marino and the Vatican City on the other,
the ECB
considers
concerning
banknotes and coins, access to payment systems and the
legal
the euro to be conclued between the
Community and the Principality of Monaco, the Republic
of San Marino and the Vatican City respectively.

appropriate

agreements

status of

for

it

5. The ECB welcomes the fact that the draft Council Decisions
adequately reflect the transfer of competence for monetary
matters to the Community and the respective distribution of
these competences between the Council of the European
Union, the Commission of the European Communities and
the European System of Central Banks. In particular, the
ECB welcomes the fact that access by financial institutions
located in the Principality o Monaco, in the Republic of San
Marino and in the Vatican City to payment systems within
the euro area needs to be agreed with the ECB; that, within
its field of competence, the ECB will be fully associated with
the ECB is
the negotiations of
empowered to initiate
the draft
agreements to the Council for decision.

the agreement; and that
submission of

the

6. The ECB takes note of the fact that neither the Treaty nor
the draft Council Decision on Monaco provide the legal
basis to allow the ECB, as from the start of Stage Three,
to impose minimum reserve requirements and statistical
reporting obligations on credit
institutions or monetary
financial institutions located in the Principality of Monaco
or to allow a continuation of the current links between the
Principality of Monaco and the Banque de France as an
integral part of
the European System of Central Banks
with regard to minimum reserve requirements and statistical
reporting obligations. A new bilateral arrangement between
the Community and the Principality of Monaco could
supplement the Treaty in this respect, and therefore the
Council may contemplate adding, in Article 6 of the draft
Decision, which already deals with access to French payment
systems, a reference to maintaining minimum reserves and
statistical reporting obligations pertaining to financial insti-
tutions located in the Principality of Monaco.

7. In Article 9 of the three draft Decision the inclusion of
Monaco, San Marino and the Vatican should be deleted,
since decisions addressed to France and Italy cannot
impose obligations on the three other states.

8. This Opinion will be published in the Official Journal of the

European Communities.

Done at Frankfurt am Main on 30 December 1998.

Vice-President
of the ECB

C. NOYER

Member of the Executive Board
of the ECB

T. PADOA-SCHIOPPA