1999/96/EC: Council Decision of 31 December 1998 on the position to be taken by the Community regarding an agreement concerning the monetary relations with the Principality of Monaco
Date: 1998-12-31
Institutions: Council of the European Union
Subjects: European Central Bank, Monaco, agreement (EU), euro, monetary relations, monetary union

4. 2. 1999

EN

Official Journal of the European Communities

L 30/31

COUNCIL DECISION

of 31 December 1998

on the position to be taken by the Community regarding an agreement
concerning the monetary relations with the Principality of Monaco

(1999/96/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 109(3) thereof,

Having regard to the recommendation from the Commis-
sion,

Having regard to the opinion of the European Central
Bank,

(1) Whereas according to Council Regulation (EC) No
974/98 of 3 May 1998 on the introduction of the
the euro will be substituted as from 1
euro (1)
January 1999 for the currency of each participating
Member State at the conversion rate;

(2) Whereas the Community will have competence for
in the
monetary and exchange
Member States adopting the euro as from that date;

rate matters

(3) Whereas the Council is to determine the arrange-
ments for the negotiation and conclusion of agree-
ments concerning monetary or foreign exchange
regime matters;

(4) Whereas France has particular monetary links with
the Principality of Monaco which are based on
various legal instruments (2); whereas financial insti-
tutions located in the Principality of Monaco have
the potential right to access the refinancing facil-
ities of the Banque de France and whereas they
participate in some French payment systems under
the same conditions as French banks;

(5) Whereas the euro will be substituted for the French

Franc on 1 January 1999;

(6) Whereas according to Declaration (No 6) annexed
to the Final Act of the Treaty on European Union,
the Community undertakes to facilitate the renego-
tiations of existing arrangements with the Princi-
pality of Monaco as might become necessary as a
result of the introduction of the single currency;

(7) Whereas the arrangements between France and the
Principality of Monaco in their present form need
to be amended or, as the case may be, replaced at

(1) OJ L 139, 11. 5. 1998, p. 1.
(2) Ordonnance mon(cid:130)gasque fixant le cours l(cid:130)gal et le cours forc(cid:130)
des monnaies et billets du 2 janvier 1925; Convention franco-
mon(cid:130)gasque relative au contr(cid:147)le des changes, 14 avril 1945;
Echange de lettres entre la France et Monaco du 18 mai
1963 relatif (cid:133) la r(cid:130)glementation bancaire dans la Princi-
paut(cid:130), as amended by the Echange de lettres du 27 novembre
1987.

the earliest possible date, taking into account the
allocation of competence to the Community for
monetary and exchange rate matters as laid down
in the Treaty;

(8) Whereas, given the

economic

relations
close
between the Principality of Monaco and the
Community, it is appropriate that an agreement
concerning banknotes and coins,
the access to
payment systems and the legal status of the euro in
the Principality of Monaco is concluded between
the Community and the Principality of Monaco;
whereas, given the historical links between France
and the Principality of Monaco, it is appropriate
that France negotiates and may conclude the new
agreement on behalf of the Community;

(9) Whereas,

in order to allow the Principality of
Monaco to have the same currency as France, it is
the Principality of
appropriate to agree that
Monaco uses the euro as its official currency and
grants legal tender status to euro banknotes and
coins issued by the European System of Central
Banks and the Member States which have adopted
the euro;

(10) Whereas it is important that the Principality of
Monaco ensures that Community rules on bank-
notes and coins denominated in euro are applicable
in the Principality of Monaco; whereas euro bank-
notes and coins need appropriate protection against
the
that
counterfeiting; whereas it
Principality of Monaco takes all
the necessary
measures to combat counterfeiting and to co-
operate with the Community in this area;

is important

(11) Whereas the European Central Bank (ECB) and the
national central banks may engage in all types of
banking transactions in relation to financial institu-
tions located in third countries; whereas the ECB
and the national central banks may, under appro-
priate conditions, allow financial
institutions in
third countries access to their payment systems;
whereas the agreement between the Community
and the Principality of Monaco shall not impose
any obligations on the ECB or on any national
central bank;

L 30/32

EN

Official Journal of the European Communities

4. 2. 1999

submits

(12) Whereas the Commission and the ECB in its field
of competence will have to be fully associated with
these negotiations; whereas it is appropriate that
to the
France
its
for
Economic
opinion; whereas the draft agreement will have to
be submitted to the Council in the case that the
Commission or the ECB or the Economic and
Financial Committee are of the opinion that this is
necessary;

agreement
and Financial Committee

the draft

Article 5

1.
The Principality of Monaco shall undertake to make
Community rules on euro banknotes and coins applicable
in the Principality of Monaco.

2.
The Principality of Monaco shall undertake to co-
operate closely with the Community with regard to meas-
ures against counterfeiting of euro banknotes and coins.

Article 6

(13) Whereas existing arrangements between France
and the Principality of Monaco should be amended
or, as the case may be, replaced so as to avoid any
inconsistencies between such arrangements and the
agreement between the Community and the Prin-
cipality of Monaco concerning their monetary rela-
tions,

institutions

Financial
located in the Principality of
Monaco may have access to the payment systems within
the euro area under appropriate conditions to be deter-
mined with the agreement of the ECB.

They may be subject to minimum reserve and statistical
reporting obligations of the ECB.

HAS ADOPTED THIS DECISION:

Article 1

France shall notify the Principality of Monaco of the need
to amend the existing arrangements between France and
the Principality of Monaco at the earliest possible date as
far as monetary matters are concerned and offer nego-
tiations for a new agreement.

Article 2

The position to be taken by the Community in the nego-
tiations with the Principality of Monaco for an agreement
concerning matters referred to below shall be based on
the principles laid down in Articles 3 to 6.

Article 3

The Principality of Monaco shall be entitled to use

1.
the euro as its official currency.

The Principality of Monaco shall be entitled to grant

2.
legal tender status to euro banknotes and coins.

Article 7

France shall conduct
the negotiations with the Prin-
cipality of Monaco on the matters referred to in Articles 3
to 6 on behalf of the Community. The Commission shall
be fully associated with the negotiations. The ECB shall
be fully associated with the negotiations in its field of
competence. France shall submit the draft agreement to
the Economic and Financial Committee for opinion.

Article 8

France shall be entitled to conclude the agreement on
behalf of the Community unless the Commission or the
ECB or the Economic and Financial Committee are of
the opinion that the agreement should be submitted to
the Council.

Article 9

France shall review its existing arrangements with the
Principality of Monaco in order to make them compatible
with the agreement between the Community and the
Principality of Monaco concerning their monetary rela-
tions.

Article 10

This Decision is addressed to the French Republic.

Article 4

Done at Brussels, 31 December 1998.

The Principality of Monaco shall undertake not to issue
any banknotes, coins or monetary surrogates of any kind
unless the conditions for such issuance have been agreed
with the Community.

For the Council

The President

R. EDLINGER