Legal provisions of SEC(2004)204 - EC position regarding an agreement concerning the monetary relations with Andorra

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dossier SEC(2004)204 - EC position regarding an agreement concerning the monetary relations with Andorra.
document SEC(2004)204
date May 11, 2004

Contents

Article 1

The Commission shall inform Andorra of the Community's preparedness to conclude an agreement on monetary matters with Andorra at the earliest possible date and shall propose negotiations for such an agreement.

Article 2

The position to be taken by the Community in the negotiations with Andorra for an agreement on the matters referred to below shall be based on the principles laid down in Articles 3 to 6.

Article 3

1. Andorra shall be entitled to use the euro as its official currency.

2. Andorra shall be entitled to grant legal tender status to euro banknotes and coins.

Article 4

1. Andorra 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.

2. However, the possibility of Andorra continuing to issue gold and silver collector coins denominated in diner will be examined.

Article 5

1. Andorra shall undertake to conform to Community rules on euro banknotes and coins.

2. Andorra shall undertake to cooperate closely with the Community with regard to the protection of euro banknotes and coins against fraud and counterfeiting and to adopt rules implementing the Community acts in this domain.

Article 6

1. Andorra shall undertake to adopt all appropriate measures, through equivalent actions or direct transpositions, for the application of all relevant Community banking and financial legislation, in particular legislation relating to the activity and supervision of the institutions concerned, and also for the application of all relevant Community legislation on the prevention of money laundering, on the prevention of fraud and counterfeiting of non-cash means of payment and on statistical reporting requirements.

2. Financial institutions located in the territory of Andorra may have access to the payment and settlement systems within the euro area under appropriate conditions to be laid down in the agreement on monetary matters and to be determined in agreement with the ECB.

Article 7

The Commission shall, on behalf of the Community, conduct the negotiations with Andorra on the matters referred to in Articles 3 to 6. Spain and France shall be fully associated with the negotiations. The ECB shall be fully associated with those negotiations falling within its field of competence.

Article 8

The negotiations on an agreement on monetary matters shall be opened as soon as the Council has agreed, acting by a qualified majority on a recommendation from the Commission, that the necessary conditions for the opening of such negotiations have been fulfilled.

The prior initialling by both parties of the agreement on the taxation of income from savings, as well as the undertaking by Andorra to conclude such agreement before a date to be agreed with the Community, shall form part of those conditions.

If the agreement on the taxation of savings has not been concluded by Andorra before the agreed date, the negotiations on the monetary agreement shall be suspended until such conclusion has taken place.

Article 9

The Commission shall submit the draft agreement to the Economic and Financial Committee for opinion.

The Commission shall be entitled to conclude the agreement on behalf of the Community unless Spain or France, or the ECB, or the Economic and Financial Committee, is of the opinion that the agreement should be submitted to the Council.

Article 10

This Decision is addressed to the Commission.