The EU has suspended trade talks with Monaco after the bloc’s financial watchdogs warned of “deep concerns” that closer ties with the tiny country would create risks for European consumers and open a backdoor into Europe for illegal money.
In a statement on Friday, the European Commission said the two sides had agreed to suspend negotiations aimed at reaching an association agreement by the end of the year, without detailing any reasoning. The statement followed a meeting on Thursday between Commission Executive Vice-President Maroš Šefčovič and Isabelle Berro-Amadei, Monaco’s minister of foreign affairs.
“The European Union is and will remain a privileged partner of the Principality. The European Commission remains available and ready to continue negotiations for an association agreement in the future.”
The decision comes after POLITICO revealed the EU’s banking, markets and insurance regulators had warned in a letter that a deeper relationship with Monaco, Andorra and San Marino could make it easier for predatory financial firms to target people in the EU due to a history of lax financial regulations.
While negotiations have been suspended with Monaco, the Commission said it would continue work to reach an agreement with Andorra and San Marino, which would allow them access to the EU’s financial-services market.
