1999/97/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 Republic of San Marino
Date: 1998-12-31
Institutions: Council of the European Union
Subjects: European Central Bank, San Marino, agreement (EU), euro, monetary relations, monetary union

4. 2. 1999

EN

Official Journal of the European Communities

L 30/33

COUNCIL DECISION

of 31 December 1998

on the position to be taken by the Community regarding an agreement
concerning the monetary relations with the Republic of San Marino

(1999/97/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
euro (1),
the euro will be substituted as from 1
January 1999 for the currency of each participating
Member State at the conversion rate;

(2) Whereas the Community will have competence for
monetary and exchange
in the
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 Italy has concluded several agreements
with the Republic of San Marino which include
provisions on monetary matters (2);

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

Lira 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 Republic
of San Marino as might become necessary as a
result of the introduction of the single currency;

(7) Whereas the agreements between Italy and the
Republic of San Marino in their present form need
to be amended or, as the case may be, replaced at
the earliest possible date, taking into account the
allocation of competence to the Community for

(1) OJ L 139, 11. 5. 1998, p. 1.
(2) Convenzione di amicizia e di buon vicinato fra San Marino
e l’Italia del 31 marzo 1939, as amended, Convenzione mone-
taria tra la Repubblica Italiana e la Repubblica di San
Marino, 21-XII-1991; Convenzione in materia di rapporti
finanziari
la
Repubblica di San Marino con atto aggiuntivo corredato da
Processo Verbale firmato a Roma il 4 marzo 1994.

tra la Repubblica Italiana e

e valutari

monetary and exchange rate matters as laid down
in the Treaty;

(8) Whereas given the

economic

relations
close
between the Republic of San Marino and the
Community, it is appropriate that an agreement
the access to
concerning banknotes and coins,
payment systems and the legal status of the euro in
the Republic of San Marino is concluded between
the Community and the Republic of San Marino;
whereas given the historical links between Italy and
the Republic of San Marino, it is appropriate that
Italy negotiates and may conclude the new agree-
ment on behalf of the Community;

(9) Whereas in order to allow the Republic of San
Marino to have the same currency as Italy, it is
appropriate to agree that
the Republic of San
Marino 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 Republic of San
Marino ensures that Community rules on bank-
notes and coins denominated in euro are applicable
in the Republic of San Marino; whereas euro bank-
notes and coins need appropriate protection against
the
counterfeiting; whereas it
Republic of San Marino takes all the necessary
measures to combat counterfeiting and to co-
operate with the Community in this area;

is important

that

(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 Republic of San Marino shall not impose
any obligations on the ECB or on any national
central bank;

L 30/34

EN

Official Journal of the European Communities

4. 2. 1999

(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
Italy submits the draft agreement to the Economic
and Financial Committee for its 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;

(13) Whereas existing agreements between Italy and the
Republic of San Marino should be amended or, as
the case may be, replaced so as to avoid any incon-
sistencies between such agreements and the agree-
ment between the Community and the Republic of
San Marino concerning their monetary relations,

HAS ADOPTED THIS DECISION:

Article 1

Italy shall notify the Republic of San Marino of the need
to amend the existing agreements between Italy and the
Republic of San Marino at the earliest possible date as far
as monetary matters are concerned and offer negotiations
for a new agreement.

Article 2

The position to be taken by the Community in the nego-
tiations with the Republic of San Marino for an agree-
ment concerning matters referred to below shall be based
on the principles laid down in Articles 3 to 6.

Article 3

The Republic of San Marino shall be entitled to use

1.
the euro as its official currency.

2.
The Republic of San Marino shall be entitled to
grant legal tender status to euro banknotes and coins.

Article 4

The Republic of San Marino 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. This does not prejudge the right of
the Republic of San Marino to continue issuing gold
coins denominated in scudi.

Article 5

1.
The Republic of San Marino shall undertake to
make Community rules on euro banknotes and coins
applicable in the Republic of San Marino.

2.
The Republic of San Marino shall undertake to
cooperate closely with the Community with regard to
measures against counterfeiting of euro banknotes and
coins.

Article 6

Financial
institutions located in the Republic of San
Marino may have access to payment systems within the
euro area under appropriate conditions to be determined
with the agreement of the ECB.

Article 7

Italy shall conduct the negotiations with the Republic of
San Marino 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. Italy shall submit the draft agreement to the
Economic and Financial Committee for opinion.

Article 8

Italy 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

Italy shall ensure that its existing agreements with the
Republic of San Marino are compatible with the agree-
ment between the Community and the Republic of San
Marino concerning their monetary relations.

Article 10

This Decision is addressed to the Italian Republic.

Done at Brussels, 31 December 1998.

For the Council

The President

R. EDLINGER