4.2.1999 Official Journal of the European Communities L 30/31 COUNCIL DECISION of 31 December 1998 on the position to be taken by the Community regarding an agreement concerning the monetary relations with the Principality of Monaco (1999/96/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; (2) Whereas the Community will have competence for monetary and exchange rate matters in the Member States adopting the euro as from that date; (3) Whereas the Council is to determine the arrange- ments for the negotiation and conclusion of agree- ments concerning monetary or foreign exchange regime matters; (4) Whereas France has particular monetary links with the Principality of Monaco which are based on various legal instruments (?); whereas financial insti- tutions located in the Principality of Monaco have the potential right to access the refinancing facil- ities of 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 renego- tiations of existing arrangements with the Princi- pality 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 () OJ L 139, 11. 5. 1998, p. 1. () Ordonnance monégasque fixant le cours légal et le cours forcé des monnaies et billets du 2 janvier 1925; Convention franco- monégasque relative au contréle des changes, 14 avril 1945; Echange de lettres entre la France et Monaco du 18 mai 1963 relatif a la réglementation bancaire dans la Princi- pauté, as amended by the Echange de lettres du 27 novembre 1987. (10) (1) 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; 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; 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; Whereas it is important that the Principality of Monaco ensures that Community rules on bank- notes and coins denominated in euro are applicable in the Principality of Monaco; whereas euro bank- notes 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 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 Principality of Monaco shall not impose any obligations on the ECB or on any national central bank;