(1)

The Community has the competence for monetary and exchange rate matters as of the date of the introduction of the euro.

(2)

The Council is to determine the arrangements for the negotiation and conclusion of agreements concerning monetary or foreign exchange regime matter.

(3)

The Italian Republic, on behalf of the Community, concluded on 29 November 2000 a Monetary Agreement with the Republic of San Marino.

(4)

In its conclusions on 10 February 2009 the Council invited the Commission to review the functioning of the existing agreements and to consider possible increases in the ceilings for coin issuance.

(5)

The Commission concluded in the Communication on the functioning of the Monetary Agreements with Monaco, San Marino and Vatican that the Monetary Agreement with the Republic of San Marino in its present form needs to be amended with a view to ensuring a more consistent approach in the relations between the Community and the countries having signed a monetary agreement.

(6)

The Monetary Agreement with the Republic of San Marino should therefore be renegotiated as soon as possible so that the new regime enters into force on 1 January 2010, together with the new rules on the modalities of introduction of euro coins set by the Commission Recommendation of 19 December 2008 on common guidelines for the national side and the issuance of euro coins intended for circulation (1), endorsed by the Council in its conclusions of 10 February 2009,

(a)

The Agreement shall be concluded between the Community and the Republic of San Marino. The text of the agreement shall be a codified text of the current agreement with the amendments.

(b)

The Republic of San Marino shall undertake to adopt all appropriate measures, through direct transpositions or possibly equivalent actions:

The Republic of San Marino shall ensure that all relevant Community banking and financial legislation is implemented in its territory before 1 January 2015. The Agreement shall contain an annex detailing the deadlines for the adoption of such measures.

(c)

The method for determining the ceiling of issuance of San Marino euro coins shall be revised. The new ceiling shall be calculated using a method which will combine a fixed part aimed at avoiding excessive numismatic speculation on San Marino coins by satisfying the demand of the collector coin market and a variable part, calculated as the average per capita coin issuance of the Republic of Italy in the year n-1 multiplied by the number of inhabitants of the Republic of San Marino.

(d)

A Joint Committee shall be established in order to monitor the progress in the implementation of the Agreement. It shall be composed of representatives of the Republic of San Marino, the Republic of Italy, the Commission and the ECB. It shall have the possibility to revise each year the fixed part with a view to taking into account inflation and the evolution of the collector market. It shall adopt decisions unanimously. The Joint Committee shall adopt its own rules of procedure.

(e)

The euro coins of the Republic of San Marino shall be minted by the Instituto Poligrafico e Zecca dello Stato. The Republic of San Marino shall however have the possibility to take another contractor among the European Union mints striking euro coins, with the agreement of the Joint Committee. The volume of coins issued by the Republic of San Marino shall be added to the volume of coins issued by the Republic of Italy for the purpose of the ECB approval of the total volume of the issuance.

(f)

The Court of Justice of the European Communities shall be elected as the body in charge of settling disputes which may arise from the application of the Agreement.

If the Community or the Republic of San Marino consider that the other Party has not fulfilled an obligation under the Monetary Agreement, it may bring the matter before the Court of Justice. The judgment of the Court of Justice shall be binding on the Parties, which will take the necessary measures to comply with the judgment within a period to be decided by the Court of Justice in its judgment. In case the Community or the Republic of San Marino fail to take the necessary measures to comply with the judgment within the period, the other Party can terminate immediately the Agreement.