Financial activities are one of the five pillars of Monaco's economy, with almost 116 billion euros in deposits and securities as at 31 March 2017. The sector is thus in good health, providing the state with increasing revenues which, in tandem with a sensible spending policy, has led to a balanced budget, and even a surplus.
Like the four previous fiscal years, 2016 saw a surplus. This amounted to €35,866,124, up 22% on 2015. The surplus is due to a sharp rise in revenues, and slower growth in spending, particularly recurring expenditure.
The 2017 Preliminary Budget was voted through by the National Council on 15 December 2016. It was designed to provide continuity with previous budgets, and was based on a cautious forecast. It had a provisional surplus of €6.3 M as opposed to €5.8 M for the 2016 Preliminary Budget. This budget presents provisional revenues of €1,210,318,900, up €67.1 M (or +5.9%) on the 2016 Preliminary Budget.
2016 also saw the implementation of a legal framework to automatically exchange information with partner countries who are members of the OECD and the EU; this is the logical extension of HSH the Sovereign Prince Albert II’s commitment, in 2009, to greater transparency and increased international co-operation in tax-related affairs.
Institutions in the Monaco financial sector will be affected by these changes first and foremost. This year, they will be required to collect information to submit to the Monaco authorities which will transfer the data to the relevant foreign authorities in 2018.
A work group involving AMAF and AMPA industry experts developed a Practical Guide aimed at all of Monaco’s financial institutions and a list of FAQs. Both are available on the Government of Monaco’s online portal.
The new challenge for 2017 is setting up MonacoTech, the first incubator / accelerator for Monaco-based start-ups, which will open in Autumn 2017.
The main objective of this initiative is to provide support to innovative projects via a supportive network and ecosystem. Within an 820 m² space, MonacoTech will host start-ups working in all sorts of sectors, including Fintechs.
With the financial sector a vital hub for the economic life of Monaco, we can only hope that this start-up programme meets with the success the government is hoping for. This will, once again, provide evidence of how dynamic and attractive Monaco and its financial sector are.
