Proposal for a COUNCIL DECISION on the signature and conclusion of the monetary agreement between the European Unionand the French Republic on keeping the euro in Saint-Barthélemy following the amendment of its status with regard to the European Union
Date: 2011-06-22
Institutions: European Commission
Subjects: France, French overseas department and region, agreement (EU), monetary agreement, overseas countries and territories

EUROPEAN COMMISSION 

Brussels, 22.6.2011 
COM(2011) 360 final 

2011/0157 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the signature and conclusion of the monetary agreement between the European 
Union 
and the French Republic on keeping the euro in Saint-Barthélemy following the 
amendment of its status with regard to the European Union  

 
 
  
 
EXPLANATORY MEMORANDUM 

Following a request from the President of the French Republic, the European Council agreed 
in October 2010 to amend the status of the island of Saint-Barthélemy, currently an outermost 
region of the EU, so that it has the status of an overseas country or territory, as referred to in 
Part Four of the Treaty on the Functioning of the European Union, as from 1 January 2012. 

The French Republic has informed the institutions of the European Union of its intention to 
retain the euro as the currency of Saint-Barthélemy even though the island will no longer be 
part of the territory of the European Union. 

In its decision of 13 April 2011, the Council gave the Commission a mandate to negotiate a 
monetary  agreement  with  the  French  Republic,  acting  on  behalf  of  the  French  overseas 
collectivity of Saint-Barthélemy, in cooperation with the European Central Bank. 

The  draft  agreement  attached  to  this  Decision  was  negotiated  by  the  parties  concerned  and 
initialled on 30 May 2011. 

In accordance with Article 4 of the mandate, the Council is requested to adopt the decision on 
the signature and conclusion of the agreement. 

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2011/0157 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the signature and conclusion of the monetary agreement between the European 
Union 
and the French Republic on keeping the euro in Saint-Barthélemy following the 
amendment of its status with regard to the European Union  

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 219(3) thereof, 

to 

regard 

the  negotiation  of 

arrangements 
Having 
for 
the  French  Republic, 
acting  on  behalf  of  the  French  overseas  collectivity  of  Saint-Barthélemy1,  and  in  particular 
Article 4 thereof,  

Decision 
agreement  with 

the 
a  monetary 

Council 

the 

on 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

Under  European  Council  Decision  2010/718/EU  of  29  October  2010  amending  the 
status with regard to the European Union of the island of Saint-Barthélemy2, the island 
of  Saint-Barthélemy  shall  cease  to  be  an  outermost  region  of  the  Union  with  effect 
from 1 January 2012 and shall have the status of an overseas country or territory, as 
referred  to  in  Part  Four  of  the  Treaty  on  the  Functioning  of  the  European  Union,  as 
from  that  date.  The  French  Republic  has  undertaken  to  conclude  the  agreements 
necessary to ensure that the interests of the Union are preserved when this amendment 
takes place. 

The  French  Republic  has  informed  the  institutions  of  the  Union  of  its  intention  to 
retain the euro as the sole currency in Saint-Barthélemy. A monetary agreement should 
therefore be concluded. 

On 13 April 2011 the Council authorised the Commission, acting in cooperation with 
the  European  Central  Bank  and  with  its  consent  in  issues  falling  within  its  field  of 
competence,  to  negotiate  with  the  French  Republic,  acting  on  behalf  of  the  French 
overseas  collectivity  of  Saint-Barthélemy,  with  a  view  to  concluding  a  monetary 
agreement. Such an agreement was initialled on 30 May 2011. 

1 
2 

The Decision was adopted on 13 April 2011. 
OJ L 325, 9.12.2010, p. 4. 

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(4) 

The agreement should be signed and concluded, 

HAS ADOPTED THIS DECISION:  

Article 1 

1. 
The signature of the monetary agreement between the European Union and the French 
Republic on keeping the euro in Saint-Barthélemy following the amendment of its status with 
regard to the European Union (hereinafter 'the Agreement') is hereby approved on behalf of 
the Union, subject to the conclusion of the Agreement.  

2. 

The text of the Agreement is attached to this Decision. 

3. 
The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s) 
empowered  to  sign  the  Agreement  on  behalf  of  the  Union,  subject  to  the  conclusion  of  the 
Agreement. 

1. 

The Agreement is hereby approved on behalf of the Union. 

Article 2 

The  President  of  the  Council  is  authorised  to  designate  the  person  empowered,  on 

2. 
behalf of the Union, to make the notification provided for in Article 11 of the Agreement. 

Article 3 

This Decision shall enter into force on the date of its adoption. 

Done at Brussels, 

For the Council 
The President 

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ANNEX  

MONETARY AGREEMENT 

between the European Union and the French Republic on keeping the euro in Saint-
Barthélemy following the amendment of its status with regard to the European Union  

The European Union, represented by the European Commission, 

and 

The French Republic, acting on behalf of the island of Saint-Barthélemy,  

Whereas: 

(1) Saint-Barthélemy is an integral part of the French Republic but will no longer be part of 
the European Union as from 1 January 2012, in accordance with European Council Decision 
2010/718/EU of 29 October 2010 amending the status of the island of Saint-Barthélemy with 
regard to the European Union; 

(2)  The  French  Republic  would  like  Saint-Barthélemy  to  retain  the  same  currency  as 
metropolitan France and to this end will continue to grant exclusive legal tender status in the 
territory of Saint-Barthélemy to euro banknotes and coins issued by the Eurosystem and the 
Member States that have adopted the euro; 

(3)  It  is  necessary  to  ensure  the  continuing  application  in  Saint-Barthélemy  of  existing  and 
future provisions of European Union law necessary for the functioning of the Economic and 
Monetary  Union,  in  order,  in  particular,  to  ensure  the  unity  of  the  Eurosystem's  monetary 
policy,  equalise  conditions  of  competition  between  financial  institutions  located  in  the  euro 
area and prevent fraud and counterfeiting of cash and non-cash means of payment and money 
laundering; 

(4)  This  monetary  agreement  is  concluded  with  a  Member  State  acting  on  behalf  of  a  non-
sovereign entity and therefore does not provide for the right to mint coinage. Currency issues 
and  banking  and  financial  law  fall  within  the  field  of  competence  of  the  French  State.  In 
matters related to the proper functioning of the Economic and Monetary Union, the legislative 
and statutory provisions of French law apply automatically to Saint-Barthélemy by virtue of 
its status.  

HAVE AGREED ON THE FOLLOWING PROVISIONS: 

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The euro shall remain the currency of Saint-Barthélemy. 

Article 1 

Article 2 

The  French  Republic  shall  continue  to  grant  legal  tender  status  to  euro-denominated 
banknotes and coins in Saint-Barthélemy.  

Article 3 

1.  The  French  Republic  shall  continue  to  apply  in  Saint-Barthélemy  the  EU  legal  acts  and 
rules  necessary  for  the  functioning  of  the  Economic  and  Monetary  Union  in  the  following 
fields: 

(a) euro banknotes and coins; 

(b) preventing fraud and counterfeiting of cash and non-cash means of payment;  

(c) medals and tokens; 

(d)  measures  necessary  for  the  use  of  the  euro  as  a  single  currency  adopted  on  the  basis  of 
Article 133 of the Treaty on the Functioning of the European Union; 

(e) banking and financial legislation, including the legal acts adopted by the European Central 
Bank; 

(f) preventing money laundering; 

(g) statistical reporting requirements established by the Eurosystem. 

2. The French Republic undertakes to cooperate fully with Europol in the territory of Saint-
Barthélemy  as  regards  the  prevention  of  fraud  and  counterfeiting  of  means  of  payment  and 
preventing and combating money laundering.  

Article 4 

The measures taken by the competent French authorities to transpose the acts adopted by the 
European Union - including those of the European Central Bank - in the fields mentioned in 
Article  3(1)  of  this  agreement  shall  apply  automatically  and  under  the  same  conditions  in 
Saint-Barthélemy.  

Article 5 

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Those European Union acts adopted in the fields mentioned in Article 3(1) - including those 
of the European Central Bank – that are directly applicable in the Member States shall apply 
automatically and under the same conditions in Saint-Barthélemy.  

Article 6 

Credit  institutions  and,  as  applicable,  other  financial  institutions  authorised  to  carry  out 
operations in Saint-Barthélemy shall have access to interbank settlement and payment systems 
and  to  securities  settlement  systems  in  the  euro  area  under  the  same  conditions  applied  to 
institutions located in metropolitan France. 

Article 7 

Every  two  years  the  French  Republic  shall  present  a  report  to  the  Commission  and  the 
European Central Bank on the application in Saint-Barthélemy of the EU legal acts and rules 
covered by this agreement. The report includes, in particular, a list of the directly applicable 
EU  acts,  including  those  of  the  European  Central  Bank,  that  apply  automatically  to  Saint-
Barthélemy by virtue of Article 5 of this agreement. The first report will be communicated by 
the end of 2012. 

1. A joint committee shall be convened when needed. It shall be chaired by the Commission 
and composed of representatives of the European Union and of the French Republic.  

Article 8 

2.  The  European  Union  delegation  shall  be  headed  by  the  Commission  and  include 
representatives of the European Central Bank.  

3. The joint committee shall meet at the request of one of the members of the delegation of the 
European  Union  or  of  France  in  order  to  examine  any  problems  that  might  arise  from  the 
application of this agreement. 

Article 9 

The Court of Justice of the European Union shall have exclusive competence for settling any 
dispute between the parties that may arise from the application of this agreement and that has 
not been settled within the joint committee.  

The  European  Union  or  the  French  Republic  may  terminate  this  agreement  subject  to  one 
year's notice.  

Article 10 

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Article 11 

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This agreement shall enter into force on 1 January 2012 after the parties have notified each 
other of the completion of their own ratification procedures.  

This  agreement  is  drawn  up  in  duplicate  in  English  and  French.  Both  texts  are  equally 
authentic.  

Article 12 

For the European Union, 

For the French Republic, 

XXX 

XXX 

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