Monetary Agreement between the Italian Republic, on behalf of the European Community, and the Vatican City State and, on its behalf, the Holy See
Date: 2000-12-29
Institutions: Holy See, Italy
Subjects: Economic and Monetary Union, Holy See, Italy, monetary policy

25.10.2001

EN

Official Journal of the European Communities

C 299/1

I

(Information)

COUNCIL

(TRANSLATION)

MONETARY AGREEMENT

BETWEEN THE ITALIAN REPUBLIC, ON BEHALF OF THE EUROPEAN COMMUNITY, AND THE
VATICAN CITY STATE AND, ON ITS BEHALF, THE HOLY SEE

(2001/C 299/01)

THE ITALIAN REPUBLIC, on behalf of the EUROPEAN COMMUNITY,

and

THE VATICAN CITY STATE, represented by the Holy See within the meaning of Article 3 of the Lateran
Treaty,

Having regard to the Treaty establishing the European Community, and in particular Article 111(3) thereof,

Having regard to the Council Decision of 31 December 1998 on the position to be taken by the
Community regarding an agreement concerning monetary relations with the Vatican City State,

(1) Considering the principles established in the existing Agreements between the Vatican City State and
the Italian Republic and in particular in the Treaty between the Holy See and Italy of 11 February
1929 and amendments thereto.

(2) Considering the provisions of bilateral agreements on monetary matters, and most recently the
Convenzione monetaria tra la Repubblica Italiana e lo Stato della Citt(cid:224) del Vaticano, concluded on
3 December 1991.

(3) Considering that pursuant to Council Regulation (EC) No 974/98 of 3 May 1998, since 1 January
1999 the euro, at the fixed conversion rate, has been substituted for the currency of each Member
State particpating in the third stage of economic and monetary union.

(4) Considering that the Decision of the Council of the European Union, meeting in the composition of
Heads of State or Government, of 3 May 1998 laid down that Italy was one of the Member States of
the European Community that would adopt the euro.

(5) Considering that since 1 January 1999 the European Community has been competent for monetary

matters relating to Member States which adopt the euro.

(6) Considering that under Declaration No 6 annexed to the Final Act of the Treaty on European Union,
the Community undertook to facilitate such renegotiations of existing arrangements with the Vatican
City State as might become necessary as a result of the introduction of the single currency.

(7) Considering that as a result of the introduction of the euro it has become necessary to renegotiate the
current Convenzione monetaria tra la Repubblica Italiana e lo Stato della Citt(cid:224) del Vaticano,
concluded on 3 December 1991.

(8) Considering that in its Decision of 31 December 1998, the Council

laid down arrangements for
negotiating and concluding the agreement concerning monetary relations with the Vatican City State.

C 299/2

EN

Official Journal of the European Communities

25.10.2001

(9) Considering that under that Decision the Italian Republic is to conduct the negotiations with the
Vatican City State on behalf of the European Community, that the Commission is to be fully
associated with the negotiations, and that the European Central Bank is to be fully associated with
the negotiations in its field of competence.

(10) Considering that under that Decision one of the principles on which the Community’s position in the
negotiations is based is that the Vatican City State shall undertake not to issue any banknotes, coins
or monetary surrogates of any kind unless the conditions for such issuance has been agreed with the
Community, and that this does not prejudge the right of the Vatican City State to issue collector
coins.

(11) Considering that the issue of euro collector coins by the Vatican City State must be in accordance
with the guidelines laid down for collector coins issued by the Member States of the European
Community, which inter alia proibit the issue of euro collector coins until 1 January 2002 and
require the adoption of technical characteristics, artistic features and denominations that enable
euro collector coins to be distinguished from coins intended for circulation.

(12) Considering that in its Decision of 31 December 1998 the Council laid down that financial insti-
tutions located in Vatican City may have access to payment systems within the euro area under
appropriate conditions to be determined with the agreement of the European Central Bank.

(13) Considering that, in view of the close ties between the Italian Republic and the Vatican City, that

access should be ensured through Italian payment systems,

HAVE AGREED AS FOLLOWS:

Article 1

As from 1 January 1999 the Vatican City State shall be entitled to use the euro as its official currency in
accordance with Regulations (EC) No 1103/97 and (EC) No 974/98.

The Vatican City State shall grant legal tender status to euro banknotes and coins as from 1 January 2002.

The Vatican City State undertakes to make Community rules on euro banknotes and coins applicable in the
Vatican City State and to align itself on the Italian Republic’s timetable for the introduction of euro
banknotes and coins.

The Vatican City State also undertakes to follow the Italian Republic’s timetable for the withdrawal of
Vatican lira coins.

Article 2

The Vatican City State shall not issue any banknotes, coins or monetary surrogates of any kind unless the
conditions for such issuance have been agreed with the Community. The conditions for issuing a limited
quantity of euro coins as from 1 January 2002 and of lira coins until 31 December 2001 are laid down in
the following Articles.

As from 1 January 2002 the Vatican City State may issue euro coins for a maximum annual face value of
EUR 670 000.

Article 3

Euro coins issued by the Vatican City State shall be identical to those issued by the Member States of the
European Community which have adopted the euro as far as the face value, legal tender status, technical
characteristics, artistic features of the common side and the shared artistic features of the national side are
concerned.

25.10.2001

EN

Official Journal of the European Communities

C 299/3

The Vatican City State shall notify in advance the artistic features of the national side to the competent
Community authorities.

Article 4

The annual face value of the euro coins issued by the Vatican City State shall be added to the volume of
the coins issued by the Italian Republic for the purposes of European Central Bank approval of the total
volume of the issue by the Italian Republic in accordance with Article 106(2) of the Treaty establishing the
European Community.

No later than 1 September each year the Vatican City State shall notify the Italian Republic of the face
value of the euro coins that it intends to issue during the following year.

Article 5

This Agreement does not prejudge the right of the Vatican City State to mint collector coins. In the event
of the issue of euro collector coins, these shall be included in the annual face value referred to in Article 3.

Collector coins issued by the Vatican City State shall not be legal tender in the European Community.

Article 6

The Italian Republic shall put the Istituto Poligrafico e Zecca dello Stato at the disposal of the Vatican City
State for the minting of Vatican coins and pontifical medals.

The Vatican City State undertakes to use the Istituto Poligrafico e Zecca dello Stato and no other estab-
lishment to mint its coins as long as this Agreement remains in force.

Article 7

When the Holy See is vacant, in the year when such vacancy occurs, the Vatican City State may issue
coins, in addition to the maximum amount laid down in Article 3, totalling EUR 201 000.

In each Holy Jubilee Year the Vatican City State may issue coins, in addition to the maximum amount laid
down in Article 3, totalling EUR 201 000.

In the year of the opening of a Ecumenical Council the Vatican City State may issue coins, in addition to
the maximum amount laid down in Article 3, totalling EUR 201 000.

The Vatican City State may not issue euro coins until 1 January 2002.

Article 8

The Vatican City State may issue lira coins until 31 December 2001. The following provisions shall apply
to such lira issues:

(cid:151) lira coins, in the denominations that the Vatican City State intends to mint, shall be identical to Italian
lira coins as regards the metal, chemical composition, face value, dimensions and intrinsic value of the
individual coins;

(cid:151) Vatican coins and Italian coins shall have identical status as legal tender in Italian territory and in
Vatican City respectively in relations between private individuals and organisations and in relations
with public institutions;

(cid:151) the Vatican City State and the Italian Republic may request that Vatican coins accumulating in the

Italian Treasury vaults be exchanged into Italian currency;

C 299/4

EN

Official Journal of the European Communities

25.10.2001

(cid:151) no limit shall be set on the value of gold coins that may be minted; such coins shall be legal tender in
the territory of the Vatican City State only; the face value of the non-gold coin issue may not exceed a
total of one billion Italian lire each year and, in any case, the quantity may not exceed one hundred
million coins.

(cid:151) when the Holy See is vacant, in the year when such vacancy occurs, in each Holy Jubilee Year and in
the year of the opening of an Ecumenical Council, the Vatican City State may issue coins, in addition to
the maximum amount laid down in the preceding subparagraph, totalling three hundred million Italian
lire and in respect of a quantity not exceeding thirty million coins.

(cid:151) the annual face value of the lira coins issued by the Vatican City State shall be added to the volume of
coins issued by the Italian Republic for the purposes of European Central Bank approval of the total
volume of the issue by the Italian Republic in accordance with Article 106(2) of the Treaty establishing
the European Community.

The Vatican City State shall cooperate closely with the European Community with regard to measures
against counterfeiting of euro banknotes and coins and in order to suppress and punish any counterfeiting
of euro coins and banknotes that may take place in its territory.

Article 9

Financial institutions located in the Vatican City State may have access to payment systems within the euro
area under appropriate terms and conditions determined by the Banca d’Italia with the agreement of the
European Central Bank.

Article 10

The Parties agree that the Convenzione monetaria tra la Repubblica Italiana e lo Stato della Citt(cid:224) del
Vaticano, concluded on 3 December 1991, will expire once this Agreement enters into force.

Article 11

Article 12

This Agreement shall enter into force on the first day of the month following the date on which the Parties
have notified each other that their ratification, conclusion or adoption procedures have been completed in
accordance with the rules applicable to each Party.

Every two years the competent financial bodies of the Italian Republic and of the Vatican City State shall
by common agreement revise by way of administrative procedure the amounts referred to in Articles 3 and
7, on the basis of the ISTAT index of changes in consumer prices over the previous two years. The first
such revision shall be carried out from 1 January 2004.

Each Party and the bodies participating in the procedure leading to the conclusion of this Agreement may
request a review of the provisions thereof. If, following such review, it should prove desirable to amend the
provisions of this Agreement, current procedures and current Community law shall apply.

Either Party may withdraw from this Agreement by giving one year’s notice.

Done in two originals in Rome on 29 December 2000.

For the Government of the Italian Republic, on behalf
of the European Community
. . .

For the Vatican City State and, on its behalf, the Holy
See
. . .