Report on a European Parliament recommendation to the Council, the Commission and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy on the EU-Monaco, Andorra and San Marino Association Agreement of 11 February 2019 In November 2013, the Commission adopted a report concluding that the negotiation of one or more Association Agreements is the more viable of the two options. This report also sets out the main principles that should be the basis of the negotiations: respect for common values, the need to ensure homogeneity and the proper functioning of the internal market and taking into account the specificities of countries with a small territorial dimension (report COM (2013) 793). At present, negotiations between the EU and the AMS Member States are not as advanced as expected. Gradually, it became clear that integrating the three countries into an AA with three individual protocols may seem effective in theory, but it also causes many problems. Given that Andorra, Monaco and San Marino have little more in common than being small, it is doubtful that this is sufficient to achieve a structure complex enough to allow these countries to participate in the internal market. The EU`s lack of political and economic interest is also useless. The Principality of Monaco has also concluded sectoral agreements with the European Union. On 4 December 2003, an Agreement was signed with the European Community between the European Community and the Principality of Monaco on the application of certain Community instruments concerning medicinal products for human use, cosmetic products and medical devices in the Principality of Monaco. On 6 May 2011, the Principality also signed an operational and strategic cooperation agreement with the European Police Office (Europol). In addition, the Franco-Monegasque agreements signed on 18 May 1963 and 26 May 2003 provide that VAT is to be levied in Monaco on the same basis and at the same rates as in France and that an account is to be levied on the distribution of the tax levied in France and Monaco. Therefore, Monaco is part of the European VAT system.
Since 18 March 2015, the Principality of Monaco has been officially conducting negotiations with the European Union (EEU) in order to reach a balanced agreement allowing Monaco to participate as widely as possible in the EU`s internal market while ensuring respect for the Principality`s vital interests, taking into account its geographical specificities, demographic and economic. There is also a cooperation agreement between the EU and Andorra in the fields of environment, communication, information, culture, transport, regional and cross-border cooperation and social issues. . . .