Brussels, 15/01/2013 (Agence Europe) - At a meeting with Commission President José Manuel Barroso on Monday 14 January, the minister of state for the Principality of Monaco, Michel Roger, began exploratory discussions with the European Commission on the feasibility of an EU/Monaco association agreement. In December, the European Council called on the Commission to draft a number of proposals in this connection by the end of 2013. These will involve three European micro states that have not signed any specific agreements with the European Union: Monaco, Andorra and San Marino.
The Commission is looking at two possible options for developing cooperation between the Union and these third countries: - following the same path as Liechtenstein, which is part of the European Economic Area (EEA); - the signing of an association agreement with the EU, with a preamble common to the three micro states involved. Accession to the EEA is, at this stage, seen as being too ambitious and the authorities in Monaco are likely to opt for an association agreement but with their own preamble.
An association agreement with the EU would facilitate exports of products from Monaco to the EU. The current implementation of around a dozen sectoral agreements that Monaco has signed with the EU is not proving completely effective. In the pharmaceutical field, for example, Germany requires Monegasque co companies be based in France before they are able to distribute their products in Germany. An association agreement would give Monaco a number of possible options to counter these practices, which the Principality currently does not have at its disposal. Another advantage of signing an EU and Monaco association agreement is that, when the EU signs international agreements, it takes into account the impact of such agreements on the countries with which it is associated.
Savings tax. Monaco is one of the five European third countries to have signed a bilateral agreement with the EU on income and savings tax for natural persons (see EUROPE 10730). In 2009 and 2010, the Principality indicated that it had collected €5.1 million and €6.7 million respectively using at source taxation deduction procedures with regard to a third of all sums deposited by Europeans in its banks. According to the agreement, 75% of this income has been sent back to the countries where the European investors are based. (MB/transl.fl)