-Caveat Lector-

Vatican Says in Contact with EU on Adopting Euro


Reuters
22-DEC-98

VATICAN CITY, Dec 22 (Reuters) - The Vatican, which has decided to adopt the
euro, said on Tuesday the European Union had agreed to negotiations regarding
financial transactions and the minting of the currency.

Chief Vatican spokesman Joaquin Navarro-Valls, a close aide of Pope John Paul,
said in a statement that all the details of adopting the currency at the
Vatican now had to be worked out.

"The European Union's monetary committee has acknowledged the Vatican's
decision to adopt the euro and has said it is disposed to negotiating all that
this involves, including financial transactions and the minting of the
currency," Navarro-Valls said.

The spokesman made no mention of whether the Pope's image would be stamped on
euro coins.

The European Commission said on Monday the Vatican, the principality of Monaco
and the republic of San Marino could have their designs on the back of some
euro coins when they are issued in 2002.

The Vatican and San Marino have long-standing agreements on monetary and
foreign exchange issues with the Bank of Italy while Monaco has a similar
arrangement with the Bank of France.

The three independent states will from January 1 next year hand competence in
these areas over to the European Central Bank, based in Frankfurt. The
hand-over requires new legislation.

"The Commission recommends the EU allows these countries to use the euro as
their official currency and to grant legal tender status to euro banknotes and
coins," the EU executive said.


Copyright 1998 Reuters Limited.All rights reserved.

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