Monetary Agreement Andorra Eu

Unlike the other three European states outside the EU, Monaco, San Marino and Vatican City, which adopted the euro when it was adopted, Andorra did not enter into a monetary agreement with the EU, but used it unilaterally. These agreements have given the three micro-states the right to issue their own euro coins, which have a common design on one side, and one national side on the other. As with coins minted in other euro area countries, micro-state coins are valid throughout the euro area; however, they will not be represented in the federations of the Euro Council, the European Central Bank (ECB) and the Eurogroup. In 2003, Andorra asked the EU to enter into a monetary agreement with it that would give it the right to mark its own coins. The relevant national authorities ensure that, in accordance with the signed agreements, national information on counterfeiting cases is passed on to national and foreign authorities. There are two other agreements signed between Andorra and the European Union in 2003 and 2004. One of them was a cooperation agreement in the fields of environment, communication, information, culture, transport, regional and cross-border cooperation and social issues, but produced few results. The other was an agreement on the taxation of savings, signed because of the pressure exerted by the EU on offshore financial centres to comply with EU rules. Andorra has entered into a monetary agreement with the EU allowing it to make the euro its official currency and allowing it to issue euro coins from 1 July 2013.

They planned to issue their first coins on January 1, 2014. [2] [3] However, the EU authorisation was postponed until December 2013[4] and Andorra`s first euro coins were put into circulation in January 2015. [5] A customs union is the main area of a strong formal agreement between the Principality of Andorra and the European Union (EU). Andorra borders two EU member states: France and Spain. This agreement does not require the ECB and national central banks to include the financial instruments of the Principality of Andorra in the list of securities eligible for eurosystem monetary policy operations. Since the Principality of Andorra had neither an official currency nor an agreement signed with a state for the adoption of its currency and that the peseta and the French franc were de facto circulating in Andorra before being replaced by the euro from 1 January 2002, the government of Andorra made a formal appeal to the European Union on 5 July 2003. to negotiate a monetary agreement that would allow Andorra to officially adopt the euro as a currency of law and, therefore, in Andorra, the issuance of its own coins for circulation and collection.