Recommendation for a Council Decision on the approval of certain amendments to be made to Articles 3 and 7 of the Monetary Agreement between the Italian Republic, on behalf of the European Community, and the Vatican City State and, on its behalf, the Holy See and authorising the Italian Republic to give effect to these amendments
Date: 2003-07-02
Institutions: European Commission
Subjects: Economic and Monetary Union, Holy See, Italy, euro, issuing of currency, monetary relations

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.7.2003
COM(2003) 387 final

2003/0142 (CNB)

Recommendation for a

COUNCIL DECISION

on the approval of certain amendments to be made to Articles 3 and 7 of the Monetary
Agreement between the Italian Republic, on behalf of the European Community, and
the Vatican City State and, on its behalf, the Holy See  and authorising the Italian
Republic to give effect to these amendments

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Vatican City State concluded a Monetary Convention1 with the Italian Republic prior to
the Maastricht Treaty of 1992, in particular allowing it to mint certain volumes of Italian lira
coins.  On  29  December  2000,  in  the  framework  of  the  introduction  of  the  euro,  the  Italian
Republic  concluded,  on  behalf  of  the  Community,  a  new  monetary  agreement2  with  the
Vatican  City  State,  and,  on  its  behalf,  the  Holy  See  ("the  Monetary  Agreement"),  aimed  at
replacing the Monetary Convention.

The  Monetary  Agreement  reflects  most  of  the  elements  of  the  Monetary  Convention.
However,  the  maximum  number  of  coins  which  can  be  minted  by  the  Vatican  City  State
under  the  new  ceilings  is  lower  than  the  maximum  number  of  coins  which  was  explicitly
authorised  by  the  Monetary  Convention,  both  under  normal  and  special  circumstances.
Accordingly, on 23 January 2003, Mr Tremonti, Minister of Economy and Finance of  Italy,
informed the Council Presidency that, in line with a request from the  Holy  See,  his  country
proposed that the Monetary Agreement be modified with a view to increasing the total value
of euro coins which the Vatican City State is authorised to issue each year.

The amendments to be made to Articles 3 and 7 of the Monetary Agreement provide for  an
increase in the total issue ceiling for euro coins which the Vatican City State may issue from
EUR 670,000 to EUR 1 million per year. The additional amounts of  euro  coins  the Vatican
City  State  may  issue  under  three  special  circumstances  -  in  the  year  when  the  Holy  See
becomes vacant, in each Holy Jubilee Year and in the year of the opening of an Ecumenical
Council  -  is  also  to  be  increased  from  EUR  201,000  to  EUR  300,000.  These  new  ceilings
fully  correspond  to  the  maximum  numbers  of  coins  which  were  explicitly  authorised  under
the Monetary Convention. The total face value of euro coins issued by the Vatican City State
each year forms part of the annual ceiling of euro coins issued by the Italian Republic which
is submitted to the ECB for prior approval under Article 106(2) of the EC Treaty.

The negotiating mandate given in Council Decision 1999/98/EC3 of 31 December 1998 to the
Italian  Republic  ended  with  the  conclusion  of  the  Monetary  Agreement.  Pursuant  to  Art.
111(3) EC, a recommendation from the Commission, specifying the amendments to be made
to  the  Monetary  Agreement  is,  therefore,  necessary.  The  ECB  is  to  be  consulted.  The
amendments to be made to the Monetary Agreement by the Italian Republic, on behalf of the
Community, will follow the adoption of the Council Decision.

1 

2 
3 

Convenzione monetaria tra la Repubblica Italiana e lo Stato della Città del Vaticano il 3 dicembre 1991
- Aggiornamento alla GU 06/05/97. Monetary Convention between Italy and the Vatican City ratified
by  Italy  under  Law  119/1994.  Published  in  the  Official  Journal  of  the  Italian  Republic  n°  43  of  22
February 1994.
OJ C 299, 25.10.2001, p. 1.
OJ L 30, 04/02/1999, pp. 35-36.

2

                                                
2003/0142 (CNB)

Recommendation for a

COUNCIL DECISION

on the approval of certain amendments to be made to Articles 3 and 7 of the Monetary
Agreement between the Italian Republic, on behalf of the European Community, and
the Vatican City State and, on its behalf, the Holy See  and authorising the Italian
Republic to give effect to these amendments

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the recommendation from the Commission4,

Having regard to the opinion of the European Central Bank5,

Whereas:

(1)

(2)

(3)

4 
5 
6 
7 

Under  a  Monetary  Agreement  signed  on  29  December  2000  between  the  Italian
Republic, on behalf of the European Community, and the Vatican City State and, on
its behalf, the Holy See6  ("the Monetary Agreement"), the Vatican City State has been
entitled  to  use  the  euro  as  its  official  currency  and  has  been  entitled  to  grant  legal
tender status to euro banknotes and coins.

Under the Monetary Agreement, the Vatican City State has also been entitled to issue
euro  coins  for  a  maximum  annual  face  value  of  EUR  670  000  and,  for  additional
amounts of EUR 201 000, under three special circumstances, namely in the year when
the  Holy  See  becomes  vacant,  in  each  Holy  Jubilee  Year  and  in  the  year  of  the
opening of an Ecumenical Council.

An  earlier  Monetary  Convention  between  the  Vatican  City  State  and  the  Italian
Republic allowed the  former to  annually  mint  lira  coins  for  a  maximum  annual  face
value of LIT 1 billion subject to a maximum annual number of 100 million coins7.

OJ C XXX, yy/yy/yy, p. zz.
Opinion delivered on xxxxxx (Official Journal).
OJ C 299, 25/10/2001, pp. 1-4.
Convenzione monetaria tra la Repubblica Italiana e lo Stato della Città del Vaticano il 3 dicembre 1991
- Aggiornamento alla GU 06/05/97. Monetary Convention between the Italian Republic and the Vatican
City ratified by the Italian Republic under Law 119/1994. Published in the Official Journal of the Italian
Republic n° 43 of 22 February 1994.

3

                                                
(4)

(5)

(6)

The Monetary Convention also allowed the Vatican City State to mint additional lira
coins for a total of LIT 300 million and, subject to a maximum number of 30 million
coins, under three special circumstances, i.e. in the year when the Holy See becomes
vacant,  in  each  Holy  Jubilee  Year  and  in  the  year  of  the  opening  of  an  Ecumenical
Council.

The maximum number of coins which can be minted by the Vatican City State under
the new Monetary Agreement is lower than the maximum number of coins which was
explicitly  authorised  by  the  Monetary  Convention,  both  under  normal  and  special
circumstances.  An  increase  in  the  annual  and  exceptional  face  values  of  euro  coins
which the Vatican City State is authorised to issue is therefore desirable. The total face
value of euro coins issued by the Vatican City State each year forms part of the annual
ceiling of euro coins issued by the Italian Republic which is submitted to the ECB for
prior approval under Article 106(2) of the EC Treaty.

On 3 January 2003, the Italian Republic officially requested8 to increase the maximum
annual  face  value  of euro coins the  Vatican  City  State  may  issue  under  both  normal
and  exceptional  circumstances.  The  new  ceilings  proposed  by  the  Italian  Republic
fully correspond to the maximum numbers of coins which were explicitly authorised
under the Monetary Convention.

(7)

The  Italian  Republic  should  be  authorised  to  give  effect  to  the  amendments  to  the
Monetary Agreement.

HAS DECIDED AS FOLLOWS:

Sole Article

1.

The Monetary Agreement shall be modified as follows:

a)

Article 3 shall be replaced by the following:

"As  from  1  January  2004,  the  Vatican  City  State  may  issue  euro  coins  for  a
maximum annual face value of EUR 1,000,000".

b)

Article 7 shall be replaced by the following:

"In  the  year  when  the  Holy  See  becomes  vacant,  the  Vatican  City  State  may
issue  coins,  in  addition  to  the  maximum  amount  laid  down  in  Article  3,
totalling EUR 300,000.

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 300,000.

8

Letter  from  Mr  Tremonti,  Minister  of  Economy  and  Finance  of  the  Italian  Republic,  to  Mr
Christodoulakis, President of the Council, of 3 January 2003.

4

                                                
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  Article  3,
totalling EUR 300,000."

2.

The Italian Republic is hereby authorised to make the necessary amendments to the
Monetary Agreement of behalf of the Community.

Done at Brussels,

For the Council
The President

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