Monaco is moving cautiously toward greater integration in the EU
Published on: Wednesday, September 11, 2013 //
Economics
Monaco is ready to begin early 2014 negotiations with Brussels to conclude a partnership agreement with the European Union, without sacrificing the "specificities" of the principality.
The head of the Government of Monaco, Michel Roger, expressed Tuesday, September 10 during a visit to Brussels it will " deepen relations [of Monaco] with the European Union " and hopes the negotiations with the Commission begin early 2014.
" We do not consider integration in the EU nor in the European Economic Area. The signing of a special partnership agreement with the EU is the scenario that we favor " , said Minister of State. Preparatory discussions are already underway and also involve two other " micro-states " Europe in the same situation, the Andorra and San Marino .
WHY AN AGREEMENT WITH THE EUROPEAN UNION?
For the Principality of Monaco, European integration ever surge in France, with which it is closely linked " raises some economic difficulties " , including the pharmaceutical industry, a pillar of its growth.
Monaco has already signed a 2003 agreement with the EU to facilitate trade of medical products, cosmetics, and medical devices in the principality within the EU. This trade agreement is, however, insufficient to reveal thin trade. The installation of Monaco in other European countries is also problematic, according to Michel Roger.
The head of the Monaco Government participated on 10 September in Brussels to launch a communication campaign of Monaco, to promote "its uniqueness in Europe" while the EU has expressed its willingness to"formalize its relations with small states " (Monaco, Andorra and San Marino) .
The campaign puts the Principality especially its value job creation. "We have more jobs than people, 50,000 to 37,000, and net job creation is 1 000 per year" said Gilles Tonelli, Monaco's ambassador in Brussels.
Monaco has already signed a 2003 agreement with the EU to facilitate trade of medical products, cosmetics, and medical devices in the principality within the EU. This trade agreement is, however, insufficient to reveal thin trade. The installation of Monaco in other European countries is also problematic, according to Michel Roger.
The head of the Monaco Government participated on 10 September in Brussels to launch a communication campaign of Monaco, to promote "its uniqueness in Europe" while the EU has expressed its willingness to"formalize its relations with small states " (Monaco, Andorra and San Marino) .
The campaign puts the Principality especially its value job creation. "We have more jobs than people, 50,000 to 37,000, and net job creation is 1 000 per year" said Gilles Tonelli, Monaco's ambassador in Brussels.
THE PRINCIPALITY OF MONACO IS IT ALREADY HIGHLY INTEGRATED WITH THE EU?
Yes. Because of its close relations with France, the Principality is, in fact, already highly integrated with the EU. Monaco is part of the customs union, the country adopted the euro in 2002 and implemented in its legislative body several European directives concerning bilateral agreements with France. Nevertheless " the agreements with France no longer enough " , according to the head of Monaco's government.
The job market Monaco is also highly integrated with the EU: 90% of the 45 000 employees of the principality are indeed European nationals, including French and Italian. Also among the 37,000 residents of Monaco, Monaco is only 20%, while 28% of them are French and 19% Italian.
The job market Monaco is also highly integrated with the EU: 90% of the 45 000 employees of the principality are indeed European nationals, including French and Italian. Also among the 37,000 residents of Monaco, Monaco is only 20%, while 28% of them are French and 19% Italian.
WHAT IS THE MAIN ISSUE?
Negotiations to establish a partnership between Monaco and the EU will focus on the cooperation between the tax authorities and the exchange of information, a sensitive issue for the principality like Andorra and San Marino where taxation is particularly advantageous.
"The discussion can not be at the sacrifice of the specificities of Monaco" , warned Michel Roger, citing the principle of freedom of installation in the principality.
Monaco began several years ago approaches tax regulation. It is released in 2009 and the black and gray list of tax havens "uncooperative" OECD.Council of Europe ended in 2009 followed by the Principality regarding compliance with its obligations and commitments, including in tax matters to the Council of Europe, of which it is a member since 2004.
In addition, a deal signed in 2005 between the EU and Monaco enforces within the principality of European rules on the taxation of savings income.Monaco has also signed several agreements to ensure the exchange of tax information when the demands of its partners, including the United States and Europe, on very specific cases.
"The discussion can not be at the sacrifice of the specificities of Monaco" , warned Michel Roger, citing the principle of freedom of installation in the principality.
Monaco began several years ago approaches tax regulation. It is released in 2009 and the black and gray list of tax havens "uncooperative" OECD.Council of Europe ended in 2009 followed by the Principality regarding compliance with its obligations and commitments, including in tax matters to the Council of Europe, of which it is a member since 2004.
In addition, a deal signed in 2005 between the EU and Monaco enforces within the principality of European rules on the taxation of savings income.Monaco has also signed several agreements to ensure the exchange of tax information when the demands of its partners, including the United States and Europe, on very specific cases.
GOING ON TO A GREATER INTEGRATION OF EUROPEAN TAX ENCLAVES?
In 2010, the EU Council had requested an analysis of the possibilities of integrating Andorra, Monaco and San Marino more closely in the single market . This report, published in 2011, highlights the desire these enclaves, stuck in Europe, where people feel European, to strengthen their relationship with the EU.
Unlike Monaco, San Marino and Andorra are ready to consider a broad range of integration, entry into the EU's accession to the European Economic Area.
The report concludes that the idea of a new framework for cooperation between the EU and these tax enclaves must be dug. It must respect the particularities of each and be innovative, traditional collaboration tools can not be used.
Unlike Monaco, San Marino and Andorra are ready to consider a broad range of integration, entry into the EU's accession to the European Economic Area.
The report concludes that the idea of a new framework for cooperation between the EU and these tax enclaves must be dug. It must respect the particularities of each and be innovative, traditional collaboration tools can not be used.
