4.2.1999 Official Journal of the European Communities L 30/33 COUNCIL DECISION of 31 December 1998 on the position to be taken by the Community regarding an agreement concerning the monetary relations with the Republic of San Marino (1999/97/EC) 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 Commis- sion, Having regard to the opinion of the European Central Bank, 1) Whereas according to Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro ('), the euro will be substituted as from 1 January 1999 for the currency of each participating Member State at the conversion rate; Whereas the Community will have competence for monetary and exchange rate matters in the Member States adopting the euro as from that date; Whereas the Council is to determine the arrange- ments for the negotiation and conclusion of agree- ments concerning monetary or foreign exchange regime matters; Whereas Italy has concluded several agreements with the Republic of San Marino which include provisions on monetary matters (%); Whereas the euro will be substituted for the Italian Lira on 1 January 1999; Whereas according to Declaration (No 6) annexed to the Final Act of the Treaty on European Union, the Community undertakes to facilitate the renego- tiations of existing arrangements with the Republic of San Marino as might become necessary as a result of the introduction of the single currency; 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 () OJ L 139, 11. 5. 1998, p. 1. (%) Convenzione di amicizia e di buon vicinato fra San Marino e l'Italia del 31 marzo 1939, as amended, Convenzione mone- taria tra la Repubblica Italiana e la Repubblica di San Marino, 21-XII-1991; Convenzione in materia di rapporti finanziari e wvalutari tra la Repubblica Italiana e la Repubblica di San Marino con atto aggiuntivo corredato da Processo Verbale firmato a Roma il 4 marzo 1994. (10) (1) monetary and exchange rate matters as laid down in the Treaty; 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 agree- ment on behalf of the Community; 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; Whereas it is important that the Republic of San Marino ensures that Community rules on bank- notes and coins denominated in euro are applicable in the Republic of San Marino; whereas euro bank- notes 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 co- operate with the Community in this area; Whereas the European Central Bank (ECB) and the national central banks may engage in all types of banking transactions in relation to financial institu- tions located in third countries; whereas the ECB and the national central banks may, under appro- priate 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 ECB or on any national central bank;