The European Union and the Principality of Monaco
The European Union and the Principality of Monaco are like-minded close neighbours, sharing history, culture and language and have signed several agreements of cooperation. Since 2015, the EU and Andorra, Monaco, San Marino are negotiating an Association Agreement on their participation in the EU internal market. This would be a far-reaching agreement to be compared only with the European Economic Area Agreement with Norway, Iceland and Liechtenstein.
Priorities: the EU’s main priority is to conclude the Association Agreement negotiations.
Political relations
EU-Monaco relations focus currently on the Association Agreement negotiations. Monaco replies generally positively to the Council’s regular calls for alignment with EU foreign, security and human rights policies.
The EU and Monaco are like-minded on values such as the protection of human rights, democracy, security, multilateralism and a rules-based international order. The Partners also share their interest in implementing the Paris Climate Agreement and the Sustainable Development Goals.
In May 2020, Monaco participated in the launch of the Covid-19 International pledging event for treatment and vaccines, with a video message of HSH Prince Albert II of Monaco; before the event European Commission President von der Leyen had a phone call with the Prince. Monaco pledged € 1 million. As part of the ‘Team Europe’ efforts, France facilitates the supply of vaccines.
In February 2019, Prince Albert II met with (former) European Commission President in Brussels. Regular political exchanges are held on oceans and maritime policy. For example, in In May 2020, Commissioner Sinkevičius for Environment, Oceans and Fisheries, participated (virtually) in the Monaco Blue Initiative that was opened by HSH Prince Albert II.
Through its special relationship with France, Monaco is part of the EU customs territory and located within the external borders of the Schengen area.
Economic relations, trade, investments
An Agreement on the taxation of (private) savings income (2005, updated 2016) contributes to clamping down on tax evasion by ensuring the automatic exchange of financial account information, in line with EU rules and OECD standards.
A Monetary Agreement allows Monaco to use the euro as legal tender and to issue, under conditions, a certain number of euro coins; the agreement provides for the application of EU rules on combating counterfeiting, money laundering and terrorist financing. A 2003 Agreement on the application of certain acts covers medical products (human and veterinary), cosmetics and medical devices.
Monaco cooperates with Europol under a 2011 Agreement on Operational and Strategic Co-operation which supports the fight against international organised crime, especially terrorism, trade in human beings and illegal immigrant smuggling, unlawful drug trafficking.
The Principality cooperates with the European Aviation Safety Agency under a Working Arrangement on the implementation of the EU aviation safety rules.
Monaco has some cooperation with ITER, a key international project on the development of fusion energy. Its Members include the European Union, China, India, Japan, Korea, Russia, United States.
The EU provides, under the EU Partnership Instrument (‘TAIEX’), limited financial support to Monaco through ad-hoc technical cooperation (workshops) on EU legislation.
