Council Decision
of 25 February 2011
on the arrangements for the renegotiation of the Monetary Agreement between the Government of the French Republic, on behalf of the European Community, and the Government of His Serene Highness the Prince of Monaco
(2011/190/EU)
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,
Having regard to the recommendation from the European Commission,
Having regard to the opinion of the European Central Bank,
Whereas:
(1) The Union has the competence for monetary and exchange rate matters as of the date of the introduction of the euro.
(2) The Council is to determine the arrangements for the negotiation and conclusion of agreements concerning monetary or foreign exchange regime matter.
(3) On 26 December 2001 the Monetary Agreement between the Government of the French Republic, on behalf of the European Community, and the Government of His Serene Highness the Prince of Monaco(1) (hereinafter ‘the Agreement’) was concluded.
(4) France has long standing monetary links with the Principality of Monaco (hereinafter ‘Monaco’), which are reflected in various legal instruments. The financial institutions located in Monaco have the right to access the refinancing facilities of the Banque de France and they participate in some French payment systems under the same conditions as French banks.
(5) In its conclusion of 10 February 2009 the Council invited the Commission to review the functioning of the existing Monetary Agreements and to consider possible increases in the ceilings for coin issuance.
(6) The Commission concluded in the Communication on the functioning of the Monetary Agreements with Monaco, San Marino and Vatican that the Agreement in its present form needs to be amended with a view to ensuring a more consistent approach in the relations between the Union and the countries having signed a monetary agreement.
(7) The Agreement should therefore be renegotiated with a view to adjusting the ceiling for the issuance of coins, electing a jurisdiction for possible dispute settlement, and adjusting the format of the Agreement in order to be brought closer to the new common model for monetary agreements. The Agreement should remain in force until a renegotiated agreement is concluded between the parties,
HAS ADOPTED THIS DECISION: