title: RECOMMENDATION FOR A COUNCIL DECISION ON THE CONCLUSION OF AN AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF INDIA ON TRADE AND COMMERCIAL COOPERATION IN JUTE PRODUCTS (presented by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 195
Vol. 1980/0059
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---                                                                   C0M(80 ) 195 final
      COMMISSION                                                  BrusseU , 21 st April 1980
         OF THE
EUROPEAN COMMUNITIES                                              FOR OFFICIAL USE ONLY
    General Secretariat
                                RECOMMENDATION FOR A COUNCIL DECISION
                        ON THE CONCLUSION OF AN AGREEMENT IN THE FORM OF AN
                  EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
                                  AND THE REPUBLIC OF INDIA ON TRADE.
                            AND COMMERCIAL COOPERATION IN JUTE PRODUCTS
                            ( presented by the Commission to the Council )
   COM ( 80 ) 195 final
 ---pagebreak---                           EXPLANATORY MEMORANDUM
 1.     By a decision of 23 November 1979 the Council authorized the Commission
 to open negotiations with India for the conclusion of an Agreement on trade
 in jute products .   Pursuant to this decision and in consultation with the
Article 113 Committee , the Commission held negotiations with India in
January 1980 .
 Following these negotiations , a draft Agreement was drawn up and initialled
on 30 January 1980 .    The Commission considers that this draft Agreement ,
which has been approved by the Article 113 Committee , constitutes an acceptable
outcome for the Community .
2.      The Commission has submitted to the Council a recommendation for a
                                               (1)
Council Regulation concluding that Agreement       . Exchanges of Letters
of a confidential nature form part of that Agreement .
In view of the special nature of these texts , it is proposed that they
be concluded by a separate act .
The Commission thus recommends that the Council adopt for that purpose
the annexed draft decision .
  Doc .  COM
 ---pagebreak---                  RECOMMENDATION FOR A COUNCIL DECISION
      on the conclusion of    an Agreement in the form of an Exchange
 of Letters between the European Economic Community and the Republic
 of India on Trade and Commercial Cooperation in Jute Products
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty Establishing the European Economic Community ,
 and in particular Article 113 thereof ,
Having regard to the Recommendation from the Commission ,
Whereas an Agreement in the form of an Exchange of Letters on Trade and
Commercial Cooperation in Jute Products negotiated between the European
Economic Community and the Republic of India should be concluded ,
HAS    DECIDED AS  FOLLOWS :
                             Article 1
The Agreement in the form of an Exchange of Letters between the European
Economic Community and the Republic of India on Trade and Commercial
Cooperation in Jute Products       is hereby approved on behalf of the European
Economic Community .
    •   The text of the Agreement in the form of an Exchange of Letters is
annexed to this Decision .
                             Article 2
The President of the Council shall notify the other Contracting Party of the
completion by the Community of the procedures necessary for the entry into
force of the Agreement .
Done at Brussels                                               For the Council
                                                                The President
 ---pagebreak---                                                                                Conf luential letter No „ i
 Mr. Chairman-
         Concluding the negotiations conducted between the Government of India
 and the European Economic Community which have led , this day to the sinning
 of the Agreement concerning the trade in jute products , I have the honour ,
 with reference to Article 3 of the Agreement , to confirm that the quantitative
 restrictions in force in France for products of Categories 1 -2 -3 will be
 applied in the period of the agreement at the levels indicated below :
                                        1980                1981               1982               1983 ( metric tons )
Fabrics ( 1 )                            826                 892                 963              1 040
Sacks and bags ( 2 )                 5 200                5 720              6 292                6 921
        The competent authorities in the Community will endeavour to open the
import possibilities for products originating in and coming from India ,
as soon as possible in each Calendar year, and will inform the Indian authorities
when such possibilities have been opened .
        If additional .demand should arise, the Community will not object to these
limits being increased on the understanding that the additional quantities
shall be determined on the basis of mutual agreement between both Parties .
        The quantitative restrictions confirmed by this letter will be eliminated
as from the date of 1 January 1984 .
        I should be grateful if you would kindly confirm your agreement to the
contents of this letter .
        Please accept , Mr. Chairman, the assurances of my highest consideration .
   ( D,
          MMtXE
                       1       ,fCr       SufitliCAl
                                                                           Dncripriofi o4 modi
             « uJc
                     |       rcimiwi     ftubdmtiCMi
                                      ι
                         57.10                         Woven fabrics of jute or of other textile bast fibres
                                                       of heading No 57.03 s
                         A                               Of a width of not more than 150 cm and weighing per
                                                         •quare metre :
                           i                               Lets than 310 g :
         57.10-21                       s                    l Inbltàfhtd                                     I
                     i
         5MO-2* l                       b                    Other , .
                     I II                                  Not Irii than 310 | but not more ilun 500 g :
         5 - . 10-31                    S            !       VnbUached
         57.10-39                       *                    Other .
        57.10-50                                           More than 500 g                                   I
                                                                   Footnote 2 overleaf
 ---pagebreak--- (2)
NIMEXE    CCT
Code      Reference                       Description of goods
          62.03     Sacks and bags , of a kind used for the packing of goods :
          A          Of jute or of other textile bast fibres of heading
                     No . 57.03 :
            II       Other than used :
 62.03-13      a         Of fabric weighing less than 310 g / m2
 62.03-15      b         Of fabric weighing not less than 310 g / m2 but not more
                          than 500 g / m2
 62.03-17      c         Of fabric weighing more than 500 g / m2
 ---pagebreak--- Mr. Chairman ,
      I have the honour to acknowledge receipt of your letter of today,
worded as follows :
      " Concluding the negotiations conducted between the Government of India
  and the European Economic Community which have led, this day to the signing
  of the Agreement concerning the trade in jute products , I have the honour,                                            ,
  with reference to Article 3 of the Agreement , to confirm that the quantitative i
   restrictions in force in France for products of Categories 1 -2 -3 will be                                           i
  applied 1n the period of the agreement at the levels indicated below :
                                                                           ;                                          i
                                       1980                  1981                1982           1983 Cmetrlc ton »)  !
                                                                                I
  Fabrics ( 1 )                           826                  892                963           1 040
  Sacks and bags ( 2 )                5 200              . 5 720               6 292            6 921
        The competent authorities 1n the Community will endeavour to open the
  inport possibilities for products originating 1n and coming from India ,
  as soon as possible 1n each fc Calendar year , and will Inform the Indian authorities
  when such possibilities have been opened.
        If additional demand should arise , the Community will not object to these
  limits being increased on the understanding that the additional quantities
  shall be determined on the basis of mutual agreement between both Parties .
        The quantitative restrictions confirmed by this letter will be eliminated
  as from the date of 1 January 1984 .
        I should be grateful If you would kindly confirm your agreement to the
  contents of this letter . "
        I have the honour to confirm to you my agreement to the contents
                                                                               •                                   •
  of that letter .
        Please accent .            Mr. Chairman ,             the assurance of my highest consideration.
                  • ι
          KIMtXE    II         CCT           ScAtiatH'al                       Dwffiwwn M
                            rrlcrciM    J   luNlTIMOA
                       57.10    .                         Woven fabrics of jute or of other textile batt fibre*
                                                          oC heaJînc No 57.03 1
                       A                                    Of a wijth «>f not more thin 150 cm and weighing per I
                                                            •quare metre :                                       I
                         1                                    Lett than 310 g:                                   I
          J7.10-21                         S                    Vnblfjfhfd
          57.10-2»                                              Othtr                 .                          I
                         II                                   Not lets than 310 c but aoc more than 500 g:       I
          5 . 10-11
          J7.10-J»                         b                    Other
          57.10-50    I in              |                     More than 500 g                                '.j
                                                                     Footnote 2 overleaf
 ---pagebreak--- (2)
NT'EXE    OCT
C^'ie     Référencé                         Description of aoods
          62.03     Sacks and bags , of a kind used for the packim cf ioodo :
          A          Of jute or of other textile bast fibres of headirn
                     No .  57.03 :
            II       Other than used :
 62.03-13      a          Of fabric weighinq less than 310 g / m2
 62.03-15      b          Of fabric weiqhing not less than 310 g / n2 but not more
                           than 500 g / r.2
 62.03-17      c          Of fabric weighing more than 500 g / n2
 ---pagebreak---          Mr. Chairman /
                 Concluding the negotiations conducted between the Government of India
         and the European Economic Community which have led/ this day to the signing
         of the Agreement concerning the trade in jute products/ I have the honour/
         with reference to Article 3 of the Agreement / to confirm that the quantitative
         restrictions in force in the Federal Republic of Germany for products of
         Categories 2 and 3 ( 1 ) will be applied in the period of the Agreement at the
         levels indicated below :
                                           1980          1981      1982      1983 ( metric tons )
                  Fabrics ( 1 >           2 370         2 607       2 868     3 155
                 The competent authorities in the Community will endeavour to open the import
         possibilities for products originating in and cominq from India / as soon as s
          in each calendar year / and will inform the Indian authorities when such possib ...
          ties have been opened .
                  If additional demand should arise/ the Community will not object to
          these limits being increased on the understanding that the additional quantities
          shall be determined on the basis of mutual agreement between both Parties.
                 The quantitative restrictions confirmed by this letter will be eliminated
         as from the date of 1 January 1984 .
                   I should be grateful 1f you would kindly confirm your agreement
          to the contents of this letter .
                  Please accept/ Mr. Chairman/ the assurances of my highest consideration.
            CCT
 . ode
            Reference                             Description of ooods
            57.10            Woven fabrics of jute or of other textile bast fibres of heading
                             No . 57.03 :
            A                Of a width of not more than 150 cm and weighing per square metre
              I                 Less than 310 g :
57.10-21         a               Unbleached
              II                Not less than 310 g but not more than 500 g :
57.10-31        -a               Unbleached
 ---pagebreak---                                                                      Confjd?ntjal let t
           Mr. Chairman ,
                    I have the honour to acknowledge receipt of your letter of today , worded
           as fol lows :
                    'Concluding the negotiations conducted between the Government of India
            and the Furope.m Economic Community which have led, this day to the signing
            of the Aqreement concerning the trade in jute products, I have the honour,
            with reference to Article 3 of the Agreement , to confirm that the quantitative
            restrictions in force in the Federal Republic of Germany for products of
           Categories 2 and 3 ( 1 ) will be applied in the period of the Agreement at the
           levels indicated below :
                                                1980         1981      1982      1983 ( metric tons )
                     Fabrics ( 1 )             2 370        2 607       2 86ft    3 15*.
                    The competent authorities in the Community will endeavour to onen the import
           possibilities for products originating in and coming from India , as soon as possibl
            in each calendar year , and will inform the Indian authorities when such possibili
            ties have been ODened .
                     If additional demand should arise, the Community will not object to
            these limits being increased on the understanding that the addition.il quantities
            shall be determined on the basis of mutual agreement between both Pirties .
                   The quantitative restrictions confirmed by this letter will bo eliminated
           as from the date of 1 January 1984 .
                     I should be grateful if you would kindly confirm your agreement
           to the contents of this letter . "                                               i
                    I have the honour to confirm to you my agreement to the contents
           of that letter .
                   Please accept , Mr. Chairman,       the assurance of my highest consideration.
             CCT
             Reference                               Description of qoods
             57.10            Woven fabrics of jute or of other textile bast fibres of heading
                              No . 57.03 :
             A                Of a width of not more than 150 cm and weighing per square metre
               I                   Less than 310 g :
>7 . 10–21        a                  Unbleached
               II                  Not less than 310 g but not more tha»500 g :
'7.10-31          «.               . Unbleached
 ---pagebreak---                                                            Çonf^dent^a_L_^etter_Noi _3
 Mr. Chairman ,
          Concluding the negotiations conducted between the Government of India
  and the European Economic Community which have led , this day to the signing
 of the Aqreement concerning the trade in jute products , I have the honour with
  reference to Article 3 of the Agreement , to confirm that the quantitative
  restrictions in force ti the United Kingdom for products of Categories 1 -2 - 3 < 1 )
 will be applied in the period of the Agreement at the level indicated below :
                                1980         1981     1982       1983 ( metric tons)
 Fabrics and sacks ^            650          715       786       865
         The competent authorities in the Community will endeavour to open the
 import possibilities as soon as possible in each calendar year , and will
inform the Indian authorities when such possibilities have been opened .
         If additional demand should arise, the Community will not object
 to this limit being increased on the understanding that the additional quantities
 shall be determined on the basis of mutual agreement between both Parties .
        The quantitative restrictions confirmed by this letter will be eliminated
as from the date of 1 January 1984 . ,
         I should be grateful if you would kindly confi.-m your agreement to
the contents of this letter .
        Please accept , Mr. Chairman , the assurances of my highest consideration .
(1)
   ( a ) Woven fabrics falling within tariff heading 57.10 wholly or mainly
          of jute or any weight or weave exceeding 46 centimetres in width up
          to and including 150 centimetres in width other than those common sacking
          and plain weave fabrics not more than 150 centimetres in width as defined
          in the U.K.  notice to importers .
   ( b ) New sacks and bags and woolpacks , falling within tariff heading 62.03
          wholly or mainly of jute other than heavy bags and woolpacks as defined
          in the U.K. notice to importers .
 ---pagebreak--- Mr. Chairman ,
         I have the honour to acknowledge receipt of your letter of today ,
 worded as follows :
       •• Concluding the negotiations conducted between the Government of India
  and the European Economic Community which have led , this day to the signing
  of the Aoreerrent concerning the trade in jute products , I have the honour with
  reference to Article 3 of the Agreement , to confirm that the quantitative .,
  restrictions in force t> the United Kingdom for products of Categories 1 - 2 - 3 < 1 )
 will be applied in the period of the Agreement at the level indicated below :
                                   1930        1981     1982      1983 ( metric tons)
  r w •          ^
  Fabrics and sacks
                      L C1 >       650          715 ,    786      865
          The competent authorities irr the Community will endeavour to open the
  import possibilities as soon as possible in each calendar year , and will
 inform the Indian authorities when such possibilities have been opened .
          If additional demand should arise , the Community will not object
  to this limit being increased on the understanding that the additional quantities
  shall be determined on the basis of mutual agreement between both Parties .
         The quantitative restrictions confirmed by this letter will be eliminated
 as from the date of 1 January 1984 .
          I should be grateful if you would kindly confirm your agreement to
 the contents of this letter . "
          I have the honour to confirm to you my acceptance to the contents
of that      letter .
         Please accept , . Mr. Chairman ,   the assurance of my highest consideration .
 (1)
    Ca ) Woven fabrics falling within tariff heading 57.10 wholly or mainly
           of jute or any weiaht or weave exceeding 46 centimetres in width up
           to and includinq 150 centimetres in width other than those comron sacking
           and plain weave fabrics not more than 150 centimetres in width as defined
           in the U.K.    notice to importers .
    ( b ) New sacks and bags and woolpacks , falling within tariff heading 62:03
           wholly or mainly of jute other than heavy bags and woolpacks as defined
           in the U.K. notice to importers .


RECOMMENDATION FOR A COUNCIL DECISION CONCERNING CLAUSE 2 OF THE VOLUNTARY RESTRAINT AGREEMENT BETWEEN THE COMMUNITY AND NEW ZEALAND ON MUTTON, LAMB AND GOATMEAT


Avis juridique important

|

51998PC0004(02)

Recommendation for a Council Decision authorising the Commission to negotiate with countries having a substantial interest in the supply of bananas in order to reach an Agreement on allocation of the tariff quotas and the traditional ACP quantity  /* COM/98/0004 final */

Official Journal C 075 , 11/03/1998 P. 0009

Recommendation for a Council decision authorising the Commission to negotiate with countries having a substantial interest in the supply of bananas in order to reach an agreement on allocation of the tariff quotas and the traditional ACP quantityFollowing a decision by the World Trade Organisation's Dispute Settlement Appellate Body the Commission has sent the Council a proposal for changes in the import arrangements for bananas introduced by Title IV of Council Regulation (EEC) No 404/93, as last amended by Regulation (EC) No 3290/94.In line with this proposal the Commission recommends that the Council authorise it to open negotiations with countries with a substantial interest in supplying bananas to the Community so that the import tariff quotas and the traditional ACP quantity can be allocated among them, in accord with the attached negotiating instructions and in consultation with the Article 113 Committee.A single criterion for determining the countries with a substantial interest in supplying bananas will be used, based on total imports into the Community.The above proposal includes a provision that, should there be no reasonable possibility of reaching agreement with the countries concerned, the Commission would have authority to make the allocation between them assisted by a committee of Member States' representatives.ANNEX A single criterion for determining the producer countries with a substantial interest in supplying bananas, based on total imports into the Community, shall be used to allocate the tariff quotas and, if the situation arises, the traditional ACP quantity, with the agreement of the countries concerned.The negotiations shall be conducted by the Commission in consultation with the Article 113 Committee and in line with further instructions that the Council may address to it.


               EUROPEAN COMMISSION
            Brussels, 18.10.2017
            COM(2017) 605 final
            Recommendation for a
            COUNCIL DECISION
            authorising the opening of negotiations on an Agreement between the European Union and Canada for the transfer and use of Passenger Name Record (PNR) data to prevent and combat terrorism and other serious transnational crime

               EXPLANATORY MEMORANDUM

               1.PURPOSE

                  In its Opinion of 26 July 2017
                     1
                   the Court of Justice of the EU stated that the Agreement between Canada and the EU for the transfer and use of Passenger name Record (PNR) data signed on 25 June 2014 may not be concluded in its current form. The EU should therefore open new negotiations with Canada with the aim of concluding a PNR Agreement in line with the requirements laid down in the Court's Opinion.

               2.CONTEXT OF THE RECOMMENDATION

                  Canadian legislation requires air carriers operating passenger flights bound for Canada to provide the Canada Border Services Agency (the CBSA) with electronic access to Passenger Name Record (PNR) data prior to the passenger arrival to Canada.

                  This legislation aims at obtaining PNR data in advance of a flight's arrival and therefore significantly enhances the CBSA's ability to conduct efficient and effective advance travel risk assessment of passengers and to facilitate bona fide travel, thereby enhancing the security of Canada. The EU cooperates with Canada in the fight against terrorism and other serious transnational crime and views the transfer of PNR data to Canada as a means to foster international law enforcement cooperation which will be achieved through the provision by Canada of analytical information stemming from PNR data to the competent Member States authorities as well as Europol and Eurojust within their respective mandates.

                  PNR is a record of each passenger's travel requirements which contains all information necessary to enable reservations to be processed by air carriers. As far as the present Recommendation is concerned, PNR data covers data collected from passengers and contained in the air carrier's automated reservation and departure control systems.

                  Air carriers are under an obligation to provide the CBSA with PNR data to the extent it is collected and contained in the air carriers' automated reservation and departure control systems.

                  The transfer of personal data from the EU to a third country may take place only if that country ensures a level of protection of fundamental rights and freedoms that is essentially equivalent to that guaranteed within the European Union. A solution is required that will provide a legal basis at EU level for the transfer of PNR data from the EU to Canada as a recognition of the necessity of PNR data in the fight against terrorism and other forms of serious transnational crime.

                  The European Community signed an Agreement in 2005 with Canada on the transfer and processing of PNR data based on a set of commitments by the CBSA in relation to the application of its PNR programme
                     2
                  .

                  The Agreement entered into force on 22 March 2006 and was based on a series of Commitments that the CBSA gave as to the way it would handle PNR data and an adequacy decision issued by the European Commission that considered the Commitments of the CBSA to provide an adequate protection of personal data.

                  In November 2008 the Commission carried out a joint review on the implementation of the 2006 Agreement where it found that the CBSA implements its Commitments and the conditions spelt out in there to a very large extent.

                  The Commitments of the CBSA and the adequacy decision expired on 22 September 2009. The Commitments of the CBSA provided that one year before their expiry, the CBSA will enter into negotiations with the Commission with the goal of extending the Commitments upon mutually acceptable terms.

                  The government of Canada made a request to the Commission that the two parties enter into negotiations with the aim of either amending the existing framework or concluding a new Agreement.

                  The CBSA also confirmed to Member States, the presidency and the Commission that it would continue implementing its Commitments for such an interim period as it is necessary to negotiate and conclude a long term Agreement between the EU and Canada. As a consequence, Member States assumed the responsibility for ensuring the continuation of transfers of PNR data by air carriers to Canada during this interim period.

                  The EU therefore opened negotiations with Canada in 2010 for the purpose of signing a new bilateral Agreement laying down the conditions and the framework under which air carriers will make available to the CBSA the PNR data of passengers flying between the EU and Canada. The new draft Agreement with Canada was signed on 25 June 2014 and submitted by the Council to the European Parliament in July 2014 for consent. On 30 January 2015, the European Parliament requested the Opinion of the Court of Justice as to whether the envisaged PNR Agreement with Canada is compatible with the Treaties and the Charter of Fundamental Rights of the European Union.

                  Directive (EU) 2016/681 on the use of passenger name record data for the prevention, detection, investigation and prosecution of terrorist offences and serious crime (the EU PNR Directive) was adopted on 27 April 2016
                     3
                  , setting a legal basis for the transfer of PNR data by air carriers to Member States and the safeguards that Member States shall apply to the processing of PNR data.

                  On 26 July 2017, the Court of Justice delivered the above mentioned Opinion and stated that the envisaged PNR Agreement between Canada and the EU cannot be concluded in its current form because several of its provisions are incompatible with the fundamental rights recognised by the EU, in particular the right to data protection and respect for private life. The Court also held that the legal basis of such an Agreement should be the combination of Article 87(2)(a) TFEU and Article 16(2) TFEU.

                  Following the issuance of this Opinion, the CBSA has expressed its wish to enter again into negotiations to find mutually acceptable terms consistent with these findings of the Court.

                  The EU should therefore open negotiations once more with Canada with the purpose of signing a new bilateral Agreement laying down the framework and conditions under which air carriers will transfer to the CBSA the PNR data of passengers flying between the EU and Canada in a manner which is compliant with the Court’s requirements.

                  The negotiations should be limited to the aspects necessary to draw the consequences from the Opinion of the Court. All other elements of the envisaged Agreement signed on 25 June 2014 should not be affected.

               3.LEGAL ELEMENTS OF THE RECOMMENDATION

                  The Court’s Opinion on the previously envisaged EU-Canada PNR Agreement already referred to above sets out the legal requirements for such an Agreement to be compliant with the Charter of Fundamental Rights of the European Union.

                  This Recommendation is based on Article 218 of the Treaty of the Functioning of the European Union. As the Court in its Opinion has already clarified that the envisaged agreement should be based on Articles 16(2) and 87(2)(a) TFEU, these legal bases are also indicated as substantive legal bases. In line with Article 218 of the Treaty on the Functioning of the European Union, the Commission shall be nominated as the Union negotiator.

               Recommendation for a

               COUNCIL DECISION

               authorising the opening of negotiations on an Agreement between the European Union and Canada for the transfer and use of Passenger Name Record (PNR) data to prevent and combat terrorism and other serious transnational crime

               THE COUNCIL OF THE EUROPEAN UNION,

               Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 16(2) and 87(2)(a), in conjunction with Article 218(3) and (4) thereof,

               Having regard to the recommendation from the European Commission,

               Whereas:

               (1)Negotiations should be opened with a view to concluding an Agreement between the European Union and Canada for the transfer and use of Passenger Name Record (PNR) data to prevent and combat terrorism and other serious transnational crime.

               (2)The Agreement should respect fundamental rights and observe the principles recognised by the Charter of Fundamental Rights of the European Union, in particular the right to private and family life recognised in Article 7 of the Charter, the right to the protection of personal data recognised in Article 8 of the Charter and the right to effective remedy and fair trial recognised in Article 47 of the Charter. The Agreement should be applied in accordance with those rights and principles,

               (3)[In accordance with Article 3 of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, those Member States have notified their wish to take part in the adoption and application of this Decision.]

                  OR

                  [In accordance with Articles 1 and 2 of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, and without prejudice to Article 4 of that Protocol, those Member States are not taking part in the adoption of this Decision and are not bound by it or subject to its application.]

                  OR

                  [In accordance with Articles 1 and 2 of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, and without prejudice to Article 4 of that Protocol, the United Kingdom is not taking part in the adoption of this Decision and is not bound by it or subject to its application.]

                  In accordance with Article 3 of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, Ireland has notified (, by letter of ...,) its wish to take part in the adoption and application of this Decision.]

                  OR

                  [In accordance with Article 3 of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, the United Kingdom has notified (, by letter of ...,) its wish to take part in the adoption and application of this Decision.

                  In accordance with Articles 1 and 2 of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, and without prejudice to Article 4 of that Protocol, Ireland is not taking part in the adoption of this Decision and is not bound by it or subject to its application.]

               (4)In accordance with Articles 1 and 2 of Protocol No 22 on the position of Denmark, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, Denmark is not taking part in the adoption of this Decision and is not bound by it or subject to its application,

               HAS ADOPTED THIS DECISION:

               Article 1

               The Commission is hereby authorised to negotiate, on behalf of the Union, an Agreement between the European Union and Canada on the transfer and use of Passenger Name Record (PNR) data to prevent and combat terrorism and other serious transnational crime.

               Article 2

               The negotiating directives are set out in the Annex.

               Article 3

               The negotiations shall be conducted in consultation with a special committee to be appointed by the Council.

               Article 4

               This Decision is addressed to the Commission.

               Done at Brussels,

                     For the Council

                     The President

                     (1)
                  Opinion 1/15 of the Court of Justice of 26 July 2017 (EU:C:2017:592).

                     (2)
                  OJ L 82, 21.3.2006, p. 15 and OJ 91, 29.3.2006, p. 49.

                     (3)
                  OJ L 119, 4.5.2016, p. 132.

    ---documentbreak---

               EUROPEAN COMMISSION
            Brussels, 18.10.2017
            COM(2017) 605 final
            ANNEX
            Directives for the negotiation of an Agreement between the European Union and Canada for the transfer and use of Passenger Name Record (PNR) data to prevent and combat terrorism and other serious transnational crime
            to the
            Recommendation for a Council Decision
            authorising the opening of negotiations on an Agreement between the European Union and Canada for the transfer and use of Passenger Name Record (PNR) data to prevent and combat terrorism and other serious transnational crime

               ANNEX

               Directives for the negotiation of an Agreement between the European Union and Canada for the transfer and use of Passenger Name Record (PNR) data to prevent and combat terrorism and other serious transnational crime

               to the

               Recommendation for a Council Decision

               authorising the opening of negotiations on an Agreement between the European Union and Canada for the transfer and use of Passenger Name Record (PNR) data to prevent and combat terrorism and other serious transnational crime

               The Agreement should contain all the safeguards required in order for it to be compatible with Articles 7, 8, 21 and 52 (1) of the Charter of Fundamental Rights of the European Union, as specified in the Opinion 1/15 of the Court of Justice of the European Union of 26 July 2017
                  1
               .

               All other elements of the Agreement between Canada and the EU for the transfer and use of Passenger name Record (PNR) data signed on 25 June 2014 should not be affected.

                     (1)

                        Opinion 1/15 of the Court of Justice of 26 July 2017: (EU:C:2017:592).


         COMMISSION OF THE EUROPEAN COMMUNITIES
                                           Brussels,
                                           COM(1998) 789 final
                                           98/0365 (CNB)
                                           98/0366 (CNB)
                                           98/0367 (CNB)
                        Recommendation for a
                        COUNCIL DECISION
on the position to be taken by the Community regarding an agreement
  concerning the monetary relations with the Principality of Monaco
                        Recommendation for a
                        COUNCIL DECISION
on the position to be taken by the Community regarding an agreement
 concerning the monetary relations with the Republic of San Marino
                        Recommendation for a
                        COUNCIL DECISION
on the position to be taken by the Community regarding an agreement
       concerning the monetary relations with the Vatican City
                    (presented by the Commission)
 ---pagebreak---  ---pagebreak---                                Recommendation for a Council Decision
          on the position to be taken by the Community regarding an agreement
             concerning the monetary relations with the Principality of Monaco
                               EXPLANATORY MEMORANDUM
As from 1 January 1999, the Community will have the exclusive competence for
monetary and exchange rate matters in the Member States adopting the euro. Any
agreement with third countries concerning monetary or foreign exchange rate matters
needs to reflect this allocation of competence. Therefore, the Community must decide on
the future of such agreements which exist between Member States adopting the euro and
third countries.
For this purpose, the Commission is presenting a draft Council Decision which is
addressed to France and which defines the position to be taken in the negotiation of a
new agreement between the Community and the Principality of Monaco.
I. General considerations
France has particular monetary links with the Principality of Monaco, which are based on
different legal instruments1 and which ensure that banknotes and coins issued by France
have legal tender status in the Principality of Monaco. Coins issued by the Principality of
Monaco have legal tender status in the Principality of Monaco only. The Principality of
Monaco has neither an own currency nor a central bank.
Financial institutions located in the Principality of Monaco have access to the refinancing
facilities of the Banque de France, which they have not used in the past and to some
French payment systems under the same conditions as French banks. On the other hand
they are subject to the same minimum reserve and statistical reporting requirements as
French banks. Moreover, they are subject to the same conditions with regard to the
granting of a banking license and are supervised by the competent French authorities.
As from 1 January 1999, France will adopt the euro as its currency. In accordance with
the Treaty, the European System of Central Banks will define and implement the
 1
     Ordonnance monégasque fixant le cours légal et le cours forcé des monnaies et billets
     du 2 janvier 1925; Convention franco-monégasque relative au contrôle des changes, 14 avril 1945 ;
     Echange de lettres entre la France et Monaco du 18 mai 1963 relatif à la réglementation bancaire dans
     la Principauté, as amended by the Echange de lettres du 27 novembre 1987
                                                                                ls
 ---pagebreak--- monetary policy of the Community. Therefore a new agreement needs to be concluded
between the Community and the Principality of Monaco.
The draft Council decision determines the principles on which the negotiations with the
Principality of Monaco should be based. The Commission recommends that the
Community allows the Principality of Monaco to use the euro as its official currency and
to grant legal tender status to euro banknotes issued by the European System of Central
Banks and to euro coins issued by the Member States which have adopted the euro.
Moreover, financial institutions located in the Principality of Monaco may be granted
access to the payment systems offered by the ESCB under conditions to be determined by
the ECB.
On the other hand, the Principality of Monaco is expected to undertake not to issue any
banknotes, coins or monetary surrogates of any kind unless the conditions for such
issuance are agreed with the Community. Moreover, the Principality of Monaco is
expected to make Community rules on euro banknotes and coins applicable in the
Principality of Monaco and to cooperate closely with the Community with regard to
measures against counterfeiting of euro banknotes and coins.
The draft Council decision is based on Article 109 (3) of the Treaty, which stipulates that
"By way of derogation from Article 228, where agreements concerning monetary or
foreign exchange regime matters need to be negotiated by the Community with one or
more States or international organizations, the Council, acting by a qualified majority, on
a recommendation from the Commission and after consulting the ECB, shall decide the
arrangements for the negotiations and for the conclusion of such agreements."
Given the close historical links between France and the Principality of Monaco, the
Commission recommends that France negotiates and concludes the new agreement on
behalf of the Community. In accordance with Article 109 (3) of the Treaty, the
Commission will be fully associated with the negotiations. The Commission
recommends that the European Central Bank is fully associated with the negotiations in
 its fields of competence. The draft agreement will have to be submitted to the Economic
and Financial Committee for opinion. The draft agreement will have to be submitted to
the Council in the case that the Commission or the European Central Bank or the
 Economic and Financial Committee are of the opinion that this is necessary.
 II. Comments on the articles
 Article 1
 This article reflects the fact that the agreements between France and the Principality of
 Monaco in their present form are not compatible with the allocation of competence for
 monetary and exchange rate matters as laid down in the Treaty. The arrangements
 therefore need to be amended or replaced at the earliest possible date. France is requested
 to give notice to the Principality of Monaco with a view to amend the agreements at the
 earliest date which is possible under trie existing agreements.
                                                                                3
 ---pagebreak--- Article 2
Article 2 stipulates that the principles laid down in Articles 3 to 6 should form the basis
for the position to be taken by France on behalf of the Community in the negotiations
with the Principality of Monaco on an agreement concerning monetary matters.
Article 3
Article 3 stipulates that the Community may allow the Principality of Monaco to use the
euro as its official currency and to grant legal tender status to euro banknotes issued by
the European System of Central Banks and to euro coins issued by the Member States
which have adopted the euro. This would ensure that the Principality of Monaco and
France could continue to have the same currency, i.e. the euro, and that banknotes and
coins which have legal tender status in France, would have the same status in the
 Principality of Monaco.
 Article 4
 Article 4 stipulates that the Principality of Monaco is expected to undertake not to issue
 any banknotes, coins or monetary surrogates unless the issuance is expressly foreseen in
 the agreement. This applies not only to banknotes, coins or other monetary surrogates
 denominated in euro but to all kind of banknotes, coins and monetary surrogates
 independent of their denomination.
 Article 5
 The purpose of the first paragraph is to ensure that Community rules on euro banknotes
 and coins such as those on the enforcement of copyright, the exchange of damaged
  banknotes z?A the reproduction of banknotes and coins, are respected in the Principality
  of Monaco.
  The second paragraph stipulates that the Principality of Monaco is expected to undertake
  to co-operate closely with the Community in the protection euro banknotes and coins
  against counterfeiting. This concerns, inter alia, the exchange of technical and statistical
  data concerning counterfeited banknotes and coins and the exchange of operational and
  strategic information between the competent authorities.- The Principality of Monaco is
  expected to ensure adequate sanctions against counterfeiting and falsification of euro
  banknotes and coins.
  Article 6
  Article 6 stipulates that, the Community may allow financial institutions located in the
   Principality of Monaco to have access to some or all French national payment systems
  under conditions to be determined with the agreement of the European Central Bank.
  This provisions is not meant to allow the imposition of an obligation on the ESCB to
  grant access ?.o the ESCB payment systems. Such access can only be granted if the ECB
  agrees.
 ---pagebreak--- Article 7 and 8
Article 7 and 8 stipulate that France shall conduct the negotiations with the Principality
of Monaco and conclude the agreement on behalf of the Community. The Council makes
thereby use of it competence to define the arrangements for the negotiations and for the
conclusion of agreements concerning monetary or foreign exchange regime matters. In
accordance with Article 109 (3) of the Treaty, it is recalled that the Commission shall be
fully associated with the negotiations.
Given the relevance of most of the aspects of this agreement for the European Central
Bank, the European Central Bank shall be fully associated with the negotiations in its
fields of competence.
Before the conclusion of the agreement, France shall submit the draft agreement to the
Economic and Financial Committee for opinion. If the Commission or the European
Central Bank, which have been fully associated to the negotiations or the Economic and
Financial Committee are of the opinion that the agreement should be submitted to the
Council, the conclusion of the agreement has to wait for the Council to take a decision in
accordance with Article 109 (3) of the Treaty.
Article 9
Article 9 reflects the requirement that any persisting bilateral agreements between France
and the Principality of Monaco have to be compatible not only with the allocation of
competence for monetary and exchange rate matters as laid down in the Treaty, but also
with the new agreement between the Community and the Principality of Monaco
 concerning their monetary relations.
 Article 10
 This article clarifies that the decision is addressed to France. It will be effective as soon
 as it is notified to France.
                                                                                f
 ---pagebreak---                         Recommendation for a Council Decision [ ] of...
        on the position to be taken by the Community regarding an agreement
           concerning the monetary relations with the Principality of Monaco
                                                                                93/ 0365(CNB)
The Council of the European Union,
Having regard to the Treaty establishing the European Community, and in particular
Article 109 (3) thereof,
Having regard to the recommendation from the Commission,
Having regard to the opinion of the European Central Bank,
(1) Whereas according to Council regulation (EC) No 974/98 of 3 May 19981 the euro
    will be substituted as from 1 January 1999 for the currency of each participating
     Member State at the conversion rate;
(2) Whereas the Community will have the competence for monetary and exchange rate
     matters in the Member States adopting the euro as from the same date;
(3) Whereas the Council is to determine the arrangements for the negotiation and
     conclusion of agreements concerning monetary or foreign exchange regime matters;
(4) Whereas France has particular monetary links with the Principality of Monaco which
     are based on different legal instruments2; whereas financial institutions located in the
     Principality of Monaco have the potential right to access the refinancing facilities of
 1
    OJL 139, 11.5.1993, p.l
 2
    Ordonnance monégasque fixant le cours légal et le cours forcé des monnaies et billets
    du 2 janvier 1925; Convention franco-monégasque relative au contrôle des changes, 14 avril 1945 ;
    Echange de lettres entre la France et Monaco du 18 mai 1963 relatif à la réglementation bancaire dans
    la Principauté, as amended by the Echange de lettres du 27 novembre 1987
                                                                                G
 ---pagebreak---      the Banque de France and whereas they participate in some French payment systems
     under the same conditions as French banks;
(5) Whereas the euro will be substituted for the French Franc on 1 January 1999;
(6) Whereas according to declaration No 6 annexed to the final act of the Treaty on
     European Union, the Community undertakes to facilitate the renegotiations of
     existing arrangements with the Principality of Monaco as might become necessary as
     a result of the introduction of the single currency;
(7) Whereas the arrangements between France and the Principality of Monaco in their
     present form need to be amended or, as the case may be, replaced at the earliest
     possible date, taking into account the allocation of competence to the Community for
     monetary and exchange rate matters as laid down in the Treaty;
(8) Whereas given the close economic relations between the Principality of Monaco and
     the Community, it is appropriate that an agreement concerning banknotes and coins,
     the access to payment systems and the legal status of the euro in the Principality of
      Monaco is concluded between the Community and the Principality of Monaco;
      whereas given the historical links between France and the Principality of Monaco, it
      is appropriate that France negotiates and may conclude the new agreement on behalf
      of the Community;
(9) Whereas in order to allow the Principality of Monaco to have the same currency as
      France, it is appropriate to agree that the Principality of Monaco uses the euro as its
      official currency and grants legal tender status to euro banknotes and coins issued by
      the European System of Central Banks and the Member States which have adopted
      the euro;
 (10) Whereas it is important that the Principality of Monaco ensures that Community
      rules on banknotes and coins denominated in euro are applicable in the Principality
      of Monaco; whereas euro banknotes and coins need appropriate protection against
      counterfeiting; whereas it is important that the Principality of Monaco takes all the
      necessary measures to combat counterfeiting and to cooperate with the Community
      in this area;
 (11) Whereas the European Central Bank and the national central banks may engage in
      all types of banking transactions in relation to financial institutions located in third
      countries; whereas the European Central Bank and the national central banks may
       under appropriate conditions allow financial institutions in third countries access to
      their payment systems; whereas the agreement between the Community and the
                                                                                Ir
 ---pagebreak---       Principality of Monaco shall not impose any obligations on the European Central
      Bank or on any national central bank;
(12) Whereas the Commission and the European Central Bank in its fields of competence
      will have to be fully associated with these negotiations; whereas it is appropriate that
      France submits the draft agreement to the Economic and Financial Committee for its
      opinion; whereas the draft agreement will have to be submitted to the Council in the
      case that the Commission or the European Central Bank or the Economic and
      Financial Committee are of the opinion that this is necessary;
(13) Whereas existing agreements between France and the Principality of Monaco should
      be amended or, as the case may be, replaced so as to avoid any inconsistencies
      between such agreements and the agreement between the Community and the
      Principality of Monaco concerning their monetary relations;
HAS ADOPTED THIS DECISION:
                                           Article 1
France shall notify' the Principality of Monaco of the need to amend the existing
arrangements between France and the Principality of Monaco at the earliest possible date
 as far as monetary' matters are concerned and offer negotiations for a new agreement.
                                           Article 2
 The position to be taken by the Community in the negotiations with the Principality of
 Monaco for an agreement concerning matters referred to below shall be based on the
 principles laid down in Articles 3 to 6.
                                           Article 3
 (1) The Principality of Monaco shall be entitled to use the euro as its official currency.
 (2) The Principality of Monaco shall be entitled to grant legal tender status to euro
 banknotes and coins.
 ---pagebreak---                                           Article 4
The Principality of Monaco.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
European Community.
                                          Article 5
(1) The Principality of Monaco shall undertake to make Community rules on euro
banknotes and coins applicable in the Principality of Monaco.
(2) The Principality of Monaco shall undertake to cooperate closely with the Community
with regard to measures against counterfeiting of euro banknotes and coins.
                                          Article 6
Financial institutions located in the Principality of Monaco may have access to some or
all French payment systems under appropriate conditions to be determined with the
agreement of the European Central Bank.
                                          Article 7
France shall conduct the negotiations with the Principality of Monaco on the above-
mentioned matters on behalf of the Community. The Commission shall be fully
associated with the negotiations. The European Central Bank shall be fully associated
with the negotiations in its fields of competence. France shall submit the draft agreement
to the Economic and Financial Committee for opinion.
                                          Article 8
France shall be entitled to conclude the agreement on behalf of the Community unless the
Commission or the European Central Bank or the Economic and Financial Committee
are of the opinion that the agreement should be submitted to the Council.
                                                                                3
 ---pagebreak---                                        Article 9
France and the Principality of Monaco shall review their existing arrangements in order
to make them compatible with the agreement between the Community and the
Principality of Monaco concerning their monetary relations.
                                      Article 10
This decision is addressed to France.
Done at Brussels,
                                                                    For the Council
                                                                    The President
                                                                                Ao
 ---pagebreak---                               Recommendation for a Council Decision
         on the position to be taken by the Community regarding an agreement
           concerning the monetary relations with the Republic of San Marino
                              EXPLANATORY MEMORANDUM
As from 1 January 1999, the Community will have the exclusive competence for
monetary and exchange rate matters in the Member States adopting the euro. Any
agreement with third countries concerning monetary or foreign exchange rate matters
needs to reflect this allocation of competence. Therefore, the Community must decide on
the future of such agreements which exist between Member States adopting the euro and
third countries.
For this purpose, the Commission is presenting a draft Council Decision which is
addressed to Italy and which defines the position to be taken in the negotiation of a new
agreement between the Community and the Republic of San Marino.
I. General considerations
Italy has concluded several agreements with the Republic of San Marino which include
provisions on monetary matters' and which ensure that banknotes and coins issued by
Italy have legal tender status in the Republic of San, Marino. Coins issued by the
Republic of San Marino, in a material other than gold, are identical in shape, dimension
and composition to those circulating in Italy. The issuing volume of these coins, which
have legal tender status in the Republic of San Marino and in Italy is limited by the
agreements. The Republic of San Marino has undertaken not to issue any other coins,
banknotes or monetary surrogates. The Republic of San Marino has neither an own
currency nor a central bank, even though the Istituto di Credito Sammarinese performs
some functions similar to those of a central bank.
 Financial institutions located in the Republic of San Marino do not have access to the
 refinancing facilities of the Banca d'Italia. On the other hand, one financial institution
 located in the Republic of San Marino has access to the Italian RTGS system. There is no
 formal relationship between the Banca d'Italia and the Istituto di Credito Sammarinese.
 1
      Convenzione di amicizia e di buon vicinato fra San Marino e L'ltalia del 31 marzo 1939, as amended,
     Convenzione monetaria tra la Repubblica Italiana e la Repubblica di San Marino, 21-X1I-1991;
     Convenzione in materia di rapporti finanziari e valutari tra la Repubblica Italiana e la Repubblica di
     San Marino con atto aggiuntivo corredato da Processo Verbale fïrmato a Roma il 4 marzo 1994.
                                                                                M
 ---pagebreak--- As from 1 January 1999, Italy will adopt the euro as its currency. In accordance with the
Treaty, the European System of Central Banks will define and implement the monetary
policy of the Community. Therefore a new agreement needs to be concluded between the
Community and the Republic of San Marino.
The draft Council decision determines the principles on which the negotiations with the
Republic of San Marino should be based. The Commission recommends that the
Community allows the Republic of San Marino to use the euro as its official currency
and to grant legal tender status to euro banknotes issued by the European System of
Central Banks and to euro coins issued by the Member States which have adopted the
euro. Moreover, financial institutions located in the Republic of San Marino may be
granted access to the payment systems offered by the ESCB under conditions to be
determined by the ECB.
On the other hand, the Republic of San Marino is expected to undertake not to issue any
banknotes, coins or monetary surrogates of any kind unless the conditions for such
issuance are agreed with the Community. Moreover, the Republic of San Marino is
expected to make Community rules on euro banknotes and coins applicable in the
Republic of San Marino and to cooperate closely with the Community with regard to
measures against counterfeiting of euro banknotes and coins. It is confirmed that Italy
may choose to issue coins with a specific symbol relating to the Republic of San Marino.
The draft Council decision is based on Article 109 (3) of the Treaty, which stipulates that
"By way of derogation from Article 228, where agreements concerning monetary or
foreign exchange regime matters need to be negotiated by the Community with one or
more States or international organizations, the Council, acting by a qualified majority, on
a recommendation from the Commission and after consulting the ECB, shall decide the
arrangements for the negotiations and for the conclusion of such agreements."
Given the close historical links between Italy and the Republic of San Marino, the
Commission recommends that Italy negotiates and concludes the new agreement on
behalf of the Community. In accordance with Article 109 (3) of the Treaty, the
Commission will be fully associated with the negotiations. The Commission
recommends that the European Central Bank is fully associated with the negotiations in
its fields of competence. The draft agreement will have to be submitted to the Economic
and Financial Committee for opinion. The draft agreement will have to be submitted to
the Economic and Financial Committee for opinion. The draft agreement will have to be
submitted to the Council in the case that the Commission or the European Central Bank
or the Economic and Financial Committee are of the opinion that this is necessary.
II. Comments on the articles
Article 1
This article reflects the fact that the agreements between Italy and the Republic of San
Marino in their present form are not compatible with the allocation of competence for
monetary and exchange rate matters as laid down in the Treaty. The arrangements
therefore need to be amended or replaced at the earliest possible date. Italy is requested to
                                                                                /Il
 ---pagebreak--- give notice to the Republic of San Marino with a view to amend the agreements at the
earliest date which is possible under the existing agreements.
Article 2
Article 2 stipulates that the principles laid down in Articles 3 to 6 should form the basis
for the position to be taken by Italy on behalf of the Community in the negotiations with
the Republic of San Marino on an agreement concerning monetary matters.
Article 3
Article 3 stipulates that the Community may allow the Republic of San Marino to use the
euro as its official currency and to grant legal tender status to euro banknotes issued by
the European System of Central Banks and to euro coins issued by the Member States
which have adopted the euro. This would ensure that the Republic of San Marino and
Italy could continue tc have the same currency, i.e. the euro, and that banknotes and coins
which have legal tender status in Italy, would have the same status in the Republic of San
Marino.
Article 4
Article 4 stipulates that the Republic of San Marino is expected to undertake not to issue
any banknotes, coins or monetary surrogates unless the issuance is expressly foreseen in
the agreement. This applies not only to banknotes, coins or other monetary surrogates
denominated in euro but to all kind of banknotes, coins and monetary surrogates
independent of their denomination.
Article 5
The purpose of the first paragraph is to ensure that Community rules on euro banknotes
and coins such as those on the enforcement of copyright, the exchange of damaged
banknotes and the reproduction of banknotes and coins, are respected in the Republic of
San Marino.
The second paragraph stipulates that the Republic of San Marino is expected to undertake
to co-operate closely with the Community in the protection euro banknotes and coins
against counterfeiting. This concerns, inter alia, the exchange of technical and statistical
data concerning counterfeited banknotes and coins and the exchange of operational and
 strategic information between the competent authorities. The Republic of San Marino is
expected to ensure adequate sanctions against counterfeiting and falsification of euro
 banknotes and coins.
 Article 6
                                                                                ^
 ---pagebreak---  Article 6 stipulates that the Community may allow financial institutions located in the
 Republic of San Marino to have access to the Italian national RTGS system2 under
 conditions to be determined by the European Central Bank. This provisions is not meant
 to allow the imposition of an obligation on the ESCB to grant access to the ESCB
 payment systems. Such access to the Italian national RTGS system can only be granted
  if the ECB agrees and under the conditions specified by the ECB.
  Article 7 and 8
  Article 7 and 8 stipulate that Italy shall conduct the negotiations with the Republic of San
  Marino and conclude the agreement on behalf of the Community. The Council makes
  thereby use of it competence to define the arrangements for the negotiations and for the
  conclusion of agreements concerning monetary or foreign exchange regime matters. In
  accordance with Article 109 (3) of the Treaty, it is recalled that the Commission shall be
  fully associated with the negotiations.
  Given the relevance of most of the aspects of this agreement for the European Central
  Bank, the European Central Bank shall be fully associated with the negotiations in its
  fields of competence.
   Before the conclusion of the agreement, Italy shall submit the draft agreement to the
   Economic and Financial Committee for opinion. If the Commission or the European
  Central Bank, which have been fully associated to the negotiations or the Economic and
  Financial Committee are of the opinion that the agreement should be submitted to the
  Council, the conclusion of the agreement has to wait for the Council to take a decision in
  accordance with Article 109 (3) of the Treaty.
  Article 9
  Article 9 reflects the requirement that any persisting bilateral agreements between Italy
  and the Republic of San Marino have to be compatible not only with the allocation of
  competence for monetary and exchange rate matters as laid down in the Treaty, but also
  with the new agreement between the Community and the Republic of San Marino
 concerning their monetary relations.
 Article 10
 This article clarifies that the decision is addressed to Italy. It will be effective as soon as
 it is notified to Italy.
2
   Real-Time Gross Settlement System
                                                                                /?y
 ---pagebreak---                       Recommendation for a Council Decision [ ] of...
         on the position to be taken by the Community regarding an agreement
          concerning the monetary relations with the Republic of San Marino
                                                                                9 8 / 0366(CNB)
The Council of the European Union,
Having regard to the Treaty establishing the European Community, and in particular
Article 109 (3) thereof,
Having regard to the recommendation from the Commission,
Having regard to the opinion of the European Central Bank,
(1) Whereas according to Council regulation (EC) No 974/98 of 3 May 19981 the euro
     will be substituted as from 1 January 1999 for the currency of each participating
     Member State at the conversion rate;
(2) Whereas the Community will have the competence for monetary and exchange rate
     matters in the Member States adopting the euro as from the same date;
(3) Whereas the Council is to determine the arrangements for the negotiation and
     conclusion of agreements concerning monetary or foreign exchange regime matters;
(4) Whereas Italy has concluded several agreements with the Republic of San Marino
     which include provisions on monetary matters2;
 (5) Whereas the euro will be substituted for the Italian Lira on 1 January 1999;
  1
     OJ L 139, 11.5.1998, p.l
     Convenzione di amicizia e di buon vicinato fra San Marino e PItalia del 31 marzo 1939, as amended,
     Convenzîcne monetaria tra la Repubblica Italians e la Repubblica ai San Marino, 21-XH-Î99Î;
     Convenzione in materia di rapport! ftnanziari e valutari tra la Repubblica Itaiiana e la Repubblica di
     San Marino con atto aggiuntivo corredato da Processo Verbale ilrmato a Roma ïl 4 marzo 1994.
                                                                                /i
 ---pagebreak--- (6) Whereas according to declaration No 6 annexed to the final act of the Treaty on
     European Union, the Community undertakes to facilitate the renegotiations of
     existing arrangements with the Republic of San Marino as might become necessary
     as a result of the introduction of the single currency;
(7) Whereas the agreements between Italy and the Republic of San Marino in their
     present form need to be amended or, as the case may be, replaced at the earliest
     possible date, taking into account the allocation of competence to the Community for
     monetary and exchange rate matters as laid down in the Treaty;
(8) Whereas given the close economic relations between the Republic of San Marino
     and the Community, it is appropriate that an agreement concerning banknotes and
     coins, the access to payment systems and the legal status of the euro in the Republic
     of San Marino is concluded between the Community and the Republic of San
     Marino; whereas given the historical links between Italy and the Republic of San
     Marino, it is appropriate that Italy negotiates and may conclude the new agreement
     on behalf of the Community;
 (9) Whereas in order to allow the Republic of San Marino to have the same currency as
     Italy, it is appropriate to agree that the Republic of San Marino uses the euro as its
     official currency and grants legal tender status to euro banknotes and coins issued by
     the European System of Central Banks and the Member States which have adopted
     the euro;
 (10) Whereas it is important that the Republic of San Marino ensures that Community
     rules on banknotes and coins denominated in euro are applicable in the Republic of
     San Marino; whereas euro banknotes and coins need appropriate protection against
     counterfeiting; whereas it is important that the Republic of San Marino takes all the
     necessary measures to combat counterfeiting and to cooperate with the Community
     in this area;
 (11) Whereas the European Central Bank and the national central banks may engage in all
      types of banking transactions in relation to financial institutions located in third
      countries; whereas the European Central Bank and the national central banks may
      under appropriate conditions allow financial institutions in third countries access to
      their payment systems; whereas the agreement between the Community and the
      Republic of San Marino shall not impose any obligations on the European Central
      Bank or on any national central bank;
 (12) Whereas the Commission and the European Central Bank in its fields of competence
      will have to be fully associated with these negotiations; whereas it is appropriate that
      Italy submits the draft agreement to the Economie and Financial Committee for its
                                                                                AG
 ---pagebreak---           opinion; whereas the draft agreement will have to be submitted to the Council in the
          case that the Commission or the European Central Bank or the Economic and
          Financial Committee are of the opinion that this is necessary;
     (13) Whereas existing agreements between Italy and the Republic of San Marino should
          be amended or, as the case may be, replaced so as to avoid any inconsistencies
          between such agreements and the agreement between the Community and the
          Republic of San Marino concerning their monetary relations;
   I
il
     HAS ADOPTED THIS DECISION:
                                              Article 1
     Italy shall notify the Republic of San Marino of the need to amend the existing
     agreements between Italy and the Republic of San Marino at the earliest possible date as
     far as monetary matters are concerned and offer negotiations for a new agreement.
                                              Article 2
     The position to be taken by the Community in the negotiations with the Republic of San
     Marino for an agreement concerning matters referred to below shall be based on the
     principles laid down in Articles 3 to 6.
                                              Article 3
      (1) The Republic of San Marino shall be entitled to use the euro as its official currency.
      (2) The Republic of San Marino shall be entitled to grant legal tender status to euro
      banknotes and coins.
                                                                                /
 ---pagebreak---                                          Article 4
The Republic of San Marino 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 European Community.
                                          Article 5
(1) The Republic of San Marino shall undertake to make Community rules on euro
banknotes and coins applicable in the Republic of San Marino.
(2) The Republic of San Marino shall undertake to cooperate closely with the
Community with regard to measures against counterfeiting of euro banknotes and coins.
                                          Article 6
Financial institutions located in the Republic of San Marino may have access to the
Italian national RTGS under appropriate conditions to be determined by the European
Central Bank.
                                          Article 7
Italy shall conduct the negotiations with the Republic of San Marino on the above-
mentioned matters on behalf of the Community. The Commission shall be fully
associated with the negotiations. The European Central Bank shall be fully associated
with the negotiations in its fields of competence. Italy shall submit the draft agreement to
the Economic and Financial Committee for opinion.
                                          Article 8
Italy shall be entitled to conclude the agreement on behalf of the Community unless the
Commission or the European Central Bank or the Economic and Financial Committee
are of the opinion that the agreement should be submitted to the Council.
                                                                                t
 ---pagebreak---                                      Article 9
Italy and the Republic of San Marino shall ensure that existing agreements are
compatible with the agreement between the Community and the Republic of San Marino
concerning their monetary relations.
                                     Article 10
This decision is addressed to Italy.
Done at Brussels,
                                                               For the Council
                                                               The President
                                                                                G
                                                                                /
 ---pagebreak---                            Recommendation for a Council Decision
         on the position to be taken by the Community regarding an agreement
                    concerning the monetary relations with Vatican City
                            EXPLANATORY MEMORANDUM
As from 1 January 1999, the Community will have the exclusive competence for
monetary and exchange rate matters in the Member States adopting the euro. Any
agreement with third countries concerning monetary or foreign exchange rate matters
needs to reflect this allocation of competence. Therefore, the Community must decide on
the future of such agreements which exist between Member States adopting the euro and
third countries.
For this purpose, the Commission is presenting a draft Council Decision which is
addressed to Italy and which defines the position to be taken in the negotiation of a new
agreement between the Community and Vatican City.
I. General considerations
Italy has particular monetary links with the Vatican City, which are based on a monetary
convention1 which ensures that coins issued by Italy have legal tender status in Vatican
City. Banknotes issued by the Banca dTtalia do not have the status of legal tender but
circulate de facto within the territory of Vatican City. Coins issued by Vatican City, in a
material other than gold, are identical in shape, dimension and composition to those
circulating in Italy. The issuing volume of these coins, which have legal tender status in
Vatican City and in Italy, is limited by the monetary convention. Vatican City has neither
an own currency nor a central bank,
Financial institutions located in Vatican City have neither access to the refinancing
facilities of the Banca d'ltalia nor to the Italian RTGS system. They are not subject to
any prudential supervision by Italian authorities.
As from 1 January 1999, Italy will adopt the euro as its currency. In accordance with the
Treaty, the European System of Central Banks will define and implement the monetary
policy of the Community. Therefore a new agreement needs to be concluded between the
 Community and Vatican City.
 1
     Convenzione monetaria tra la Repubblica Italiana e lo Stato délia Città del Vaticano il
     3 dicembre 1991
                                                                                &
 ---pagebreak--- The draft Council decision determines the principles on which the negotiations with
Vatican City should be based. The Commission recommends that the Community allows
Vatican City to use the euro as its official currency and to grant legal tender status to euro
banknotes issued by the European System of Central Banks and to euro coins issued by
the Member States which have adopted the euro. Moreover, financial institutions located
in Vatican City may be granted access to the payment systems offered by the ESCB
under conditions to be determined by the ECB.
On the other hand, Vatican City is expected to undertake not to issue any banknotes,
coins or monetary surrogates of any kind unless the conditions for such issuance are
agreed with the Community. Moreover, Vatican City is expected to make Community
rules on euro banknotes and coins applicable in Vatican City and to cooperate closely
with the Community with regard to measures against counterfeiting of euro banknotes
and coins. It is confirmed that Italy may choose to issue coins with a specific symbol
relating to Vatican City.
The draft Council decision is based on Article 109 (3) of the Treaty, which stipulates that
"By way of derogation from Article 228, where agreements concerning monetary or
foreign exchange regime matters need to be negotiated by the Community with one or
more States or international organizations, the Council, acting by a qualified majority, on
a recommendation from the Commission and after consulting the ECB, shall decide the
arrangements for the negotiations and for the conclusion of such agreements."
Given the close historical links between Italy and Vatican City, the Commission
recommends that Italy negotiates and concludes the new agreement on behalf of the
 Community. In accordance with Article 109 (3) of the Treaty, the Commission will be
 fully associated with the negotiations. The Commission recommends that the European
 Central Bank is associated with the negotiations in its fields of competence. The draft
 agreement will have to be submitted to the Economic and Financial Committee for
opinion. The draft agreement will have to be submitted to the Economic and Financial
 Committee for opinion. The draft agreement will have to be submitted to the Council in
the case that the Commission or the European Central Bank or the Economic and
 Financial Committee are of the opinion that this is necessary.
 II. Comments on the articles
 Article 1
 This article reflects the fact that the agreements between Italy and Vatican City in their
 present form are not compatible with the allocation of competence for monetary and
 exchange rate matters as laid down in the Treaty. The arrangements therefore need to be
  amended or replaced at the earliest possible date. Italy is requested to give notice to
  Vatican City with a view to amend the agreements at the earliest date which is possible
  under the existing agreements.
                                                                                u
 ---pagebreak--- Article 2
Article 2 stipulates that the principles laid down in Articles 3 to 6 should form the basis
for the position to be taken by Italy on behalf of the Community in the negotiations with
Vatican City on an agreement concerning monetary matters.
Article 3
Article 3 stipulates that the Community may allow Vatican City to use the euro as its
official currency and to grant legal tender status to euro banknotes issued by the
European System of Central Banks and to euro coins issued by the Member States which
have adopted the euro. This would ensure that Vatican City and Italy could continue to
have the same currency, i.e. the euro, and that banknotes and coins which have legal
tender status in Italy, would have the same status in Vatican City.
Article 4
Article 4 stipulates that Vatican City is expected to undertake not to issue any banknotes,
coins or monetary surrogates unless the issuance is expressly foreseen in the agreement.
This applies not only to banknotes, coins or other monetary surrogates denominated in
euro but to all kind of banknotes, coins and monetary surrogates independent of their
denomination.
Article 5
The purpose of the first paragraph is to ensure that Community rules on euro banknotes
 and coins such as those on the enforcement of copyright, the exchange of damaged
banknotes and the reproduction of banknotes and coins, are respected in Vatican City.
 The second paragraph stipulates that Vatican City is expected to undertake to co-operate
 closely with the Community in the protection euro banknotes and coins against
 counterfeiting. This concerns, inter alia, the exchange of technical and statistical data
 concerning counterfeited banknotes and coins and the exchange of operational and
 strategic information between the competent authorities. Vatican City is expected to
 ensure adequate sanctions against counterfeiting and falsification of euro banknotes and
 coins.
 Article 6
 Article 6 stipulates that the Community may allow financial institutions located in
 Vatican City to have access to the Italian national RTGS system2 under conditions to be
 determined by the European Central Bank. This provisions is not meant to allow the
 imposition of an obligation on the ESCB to grant access to the ESCB payment systems.
 2
   Real-Time Gross Settlement System
                                                                                It
 ---pagebreak--- Such access to the Italian national RTGS system can only be granted if the ECB agrees
and under the conditions specified by the ECB.
                                                                                I*
 ---pagebreak--- Article 7 and 8
Article 7 and 8 stipulate that Italy shall conduct the negotiations with Vatican City and
conclude the agreement on behalf of the Community. The Council makes thereby use of
it competence to define the arrangements for the negotiations and for the conclusion of
agreements concerning monetary or foreign exchange regime matters. In accordance with
Article 109 (3) of the Treaty, it is recalled that the Commission shall be fully associated
with the negotiations.
Given the relevance of most of the aspects of this agreement for the European Central
Bank, the European Central Bank shall be fully associated with the negotiations in its
fields of competence.
Before the conclusion of the agreement, Italy shall submit the draft agreement to the
Economic and Financial Committee for opinion. If the Commission or the European
Central Bank, which have been fully associated to the negotiations or the Economic and
Financial Committee are of the opinion that the agreement should be submitted to the
Council, the conclusion of the agreement has to wait for the Council to take a decision in
accordance with Article 109 (3) of the Treaty.
Article 9
Article 9 reflects the requirement that any persisting bilateral agreements between Italy
and Vatican City have to be compatible not only with the allocation of competence for
monetary and exchange rate matters as laid down in the Treaty, but also with the new
agreement between the Community and Vatican City concerning their monetary
relations.
Article 10
This article clarifies that the decision is addressed to Italy. It will be effective as soon as
 it is notified to Italy.
                                                                                1\
 ---pagebreak---                        Recommendation for a Council Decision [ ] of...
          on the position to be taken by the Community regarding an agreement
                     concerning the monetary relations with Vatican City
                                                                                9 8 / 0367(CNB)
The Council of the European Union,
Having regard to the Treaty establishing the European Community, and in particular
Article 109 (3) thereof,
Having regard to the recommendation from the Commission,
Having regard to the opinion of the European Central Bank,
(1) Whereas according to Council regulation (EC) No 974/98 of 3 May 19981 the euro
     will be substituted as from 1 January 1999 for the currency of each participating
     Member State at the conversion rate;
(2) Whereas the Community will have the competence for monetary and exchange rate
     matters in the Member States adopting the euro as from the same date;
(3) Whereas the Council is to determine the arrangements for the negotiation and
     conclusion of agreements concerning monetary or foreign exchange regime matters;
(4) Whereas Italy has concluded an agreement with Vatican City which includes
     provisions on monetary matters2;
(5) Whereas the euro will be substituted for the Italian Lira on 1 January 1999;
(6) Whereas according to declaration No 6 annexed to the final act of the Treaty on
     European Union, the Community undertakes to facilitate the renegotiations of
     existing arrangements with Vatican City as might become necessary as a result of the
      introduction of the single currency;
 1
     OJ L 139, 11.5.1998, p.l
 2
     Convenzione monetaria tra la Repubblica Italiana e lo Stato délia Città del Vaticano il
     3dicembre 1991.
                                                                                *V
 ---pagebreak--- (7) Whereas the agreement between Italy and Vatican City in its present form need to
     be amended or, as the case may be, replaced at the earliest possible date, taking into
     account the allocation of competence to the Community for monetary matters as laid
     down in the Treaty;
(8) Whereas given the close economic relations between Vatican City and the
     Community, it is appropriate that an agreement concerning banknotes and coins, the
     access to payment systems and the legal status of the euro in Vatican City is
     concluded between the Community and Vatican City; whereas given the historical
     links between Italy and Vatican City, it is appropriate that Italy negotiates and may
     conclude the new agreement on behalf of the Community;
(9) Whereas in order to allow Vatican City to have the same currency as Italy, it is
     appropriate to agree that Vatican City uses the euro as its official currency and grants
     legal tender status to euro banknotes and coins issued by the European System of
     Central Banks and the Member States which have adopted the euro;
 (10) Whereas it is important that Vatican City ensures that Community rules on
     banknotes and coins denominated in euro are applicable in Vatican City; whereas
     euro banknotes and coins need appropriate protection against counterfeiting; whereas
     it is important that Vatican City takes all the necessary measures to combat
     counterfeiting and to cooperate with the Community in this area;
 (11) Whereas the European Central Bank and the national central banks may engage in
     all types of banking transactions in relation to financial institutions located in third
     countries; whereas the European Central Bank and the national central banks may
     under appropriate conditions allow financial institutions in third countries access to
     their payment systems; whereas the agreement between the Community and Vatican
     City shall not impose any obligations on the European Central Bank or on any
     national central bank;
 (12) Whereas the Commission and the European Central Bank in its fields of competence
     will have to be fully associated with these negotiations; whereas it is appropriate that
      Italy submits the draft agreement to the Economic and Financial Committee for its
      opinion; whereas the draft agreement will have to be submitted to the Council in the
      case that the Commission or the European Central Bank or the Economic and
      Financial Committee are of the opinion that this is necessary;
 (13) Whereas the existing agreement between Italy and Vatican City should be amended
      or, as the case may be, replaced so as to avoid any inconsistencies between this
      agreement and the agreement between the Community and Vatican City concerning
      their monetary relations;
                                                                                K
 ---pagebreak--- HAS ADOPTED THIS DECISION:
                                          Article 1
Italy shall notify Vatican City of the need to amend the existing agreement between Italy
and Vatican City at the earliest possible date as far as monetary matters are concerned
and offer negotiations for a new agreement.
                                          Article 2
The position to be taken by the Community in the negotiations with Vatican City for an
agreement concerning matters referred to below shall be based on the principles laid
down in Articles 3 to 6.
                                          Article 3
(1) Vatican City shall be entitled to use the euro as its official currency.
(2) Vatican City shall be entitled to grant legal tender status to euro banknotes and coins.
                                          Article 4
Vatican City 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 European
Community.
                                          Article 5
(1) Vatican City shall undertake to make Community rules on euro banknotes and coins
applicable in Vatican City.
(2) Vatican City shall undertake to cooperate closely with the Community with regard to
measures against counterfeiting of euro banknotes and coins.
                                                                                ft
 ---pagebreak---                                          Article 6
Financial institutions located in Vatican City may have access to the Italian national
RTGS under appropriate conditions to be determined by the European Central Bank.
                                         Article 7
Italy shall conduct the negotiations with Vatican City on the above-mentioned matters on
behalf of the. Community. The Commission shall be fully associated with the
negotiations. The European Central Bank shall be fully associated with the negotiations
in its fields of competence. Italy shall submit the draft agreement to the Economic and
Financial Committee for opinion.
                                         Article 8
Italy shall be entitled to conclude the agreement on behalf of the Community unless the
Commission or the European Central Bank or the Economic and Financial Committee
are of the opinion that the agreement should be submitted to the Council.
                                         Article 9
Italy and Vatican City shall ensure that any existing agreement is compatible with the
agreement between the Community and Vatican City concerning their monetary
relations.
                                         Article 10
This decision is addressed to Italy. *
Done at Brussels,
                                                                     For the Council
                                                                     The President
                                                                                11
 ---pagebreak---                                                                 ISSN 0254-1475
                                                           COM(98) 789 final
                                             DOCUMENTS
EN                                                           09 10 11 06
                                    Catalogue number : CB-CO-98-789-EN-C
Office for Official Publications of the European Communities
L-2985 Luxembourg
                                                                               Û