He is the founder and CEO of Cogemat (industrial equipment provider), as well as heading up the EMT (Monaco construction company) and presiding over the FEDEM (Monaco business federation), which has 2,800 member companies. Philippe Ortelli talks about the future of Monaco and that of its economic growth and “how to leave a prosperous and strong state for the generations to come.”
Tell us about the FEDEM's role in protecting Monaco’s businesses
The FEDEM has been actively involved in this for more than 70 years by representing businesses before the Government, giving detailed advice on their projects and the laws which concern the future of the country, its 2,000 companies and their 52,000 employees. In the social domain, the FEDEM is able to make suggestions and projections and to take part in improving numerous legal aspects. The aim of this is to ensure that developments in employment law take into account the needs of businesses, particularly in terms of restructuring, when some recent decisions have obstructed a company's entrepreneurial freedom. Re-organisation should be the fundamental right of any employer, as is stated in the law. The FEDEM is also involved in major economic matters, such as land settlement to adapt the infrastructure to suit economic development and in the difficulties linked to housing workers and transport. High rents in Monaco, the unreliability of the SNCF and congestion on our roads, which are not equipped to deal with an ever-growing working population – these all hinder the transport of commuters, products and raw materials. Lastly the FEDEM is committed to raising the profile of businesses in order to show that they are both individual and common places of work and human development, where social cohesion and the passing on of knowledge are important. To achieve this, we work closely with 27 affiliated trade unions and some 100 separate companies, plus a total of nearly 2,800 member businesses which trust us to protect them and to make their voices heard.
Is Monaco innovative?
To name but a few examples, did you know that luxury car spectrophotometers are made in Monaco, as are professional coffee-makers destined for the Asian market and we also produce mesh fabrics used in high fashion? This is mentioned in the latest edition of our trade paper, Monaco Business News: not only is Monaco a recognised business and production centre but it is also a centre for intelligence and innovation. Some of Monaco's flagship businesses have acquired international renown and are market leaders in their sectors - in the high tech domain, with the launch of the first satellite, as well as in petroleum engineering and cosmetics. This is the case with SBM Offshore, the Principality's biggest private company with around 900 workers, which designs floating, offshore gas and oil deep extraction rigs – 50% of their research is carried out in Monaco. Take also the example of Asepta, which makes world-renowned skincare and cosmetic products such as Akiléine and Ecrinal. New technology and digital companies also have the wind in their sails and should take on a growing importance in Monaco's economy.
How does a forward-thinking approach relate to your work and projects?
By our very name: in May 2014, the FPM (Monaco employers' federation) became the FEDEM (Monaco business federation). As the world changes, so does the business world. In 1945, when the FPM was created, the term “employer” represented an appropriate vision of authority and fitted the historical and socio-economic context of the time. Now, however, it no longer suits the contemporary business world and the new challenges of economic globalisation and the digital revolution. The name was changed in order better to reflect this new era and to support companies as they change, providing them with help (and in particular, legal services), which better meet their needs. The FEDEM strives to evolve with the times, as can be seen in various projects, such as the creation, in conjunction with the USM, of the Complementary Monaco Pension System: this benefits the collective interests of employees, companies and pensioners, in the face of the bad financial state of the French system and the growing disparities in obtaining a pension. The agreement was approved in principle between the social partners at the end of 2013. The FEDEM and the USM met with their French counterparts to discuss different ways of leaving the French system. We are now waiting for the results of the AGIRC and ARRCO study which will form the basis of future negotiations.
“Audacity” and “excellence” are the words you have chosen best to describe entrepreneurship in Monaco...
Audacity, because without that, nothing would be possible; but also because you need audacity in order to create and be enterprising and this defines Monaco and its businesses. Being audacious means to dare to take risks in an uncertain context. It is being open and able to negotiate with the EU, whilst preserving what makes us special and the things that constitute the strengths of our economic and social systems. Audacity is creating innovative ways of attracting the best-skilled people in both traditional and new areas and knowing how to keep them. It also means protecting our companies so they do not become stifled by an over-complex and rigid legislative system. Audacity allows us to attain excellence. Monaco has enjoyed an international reputation for excellence for more than 150 years, because of its political stability, its geographical location and its security but, most of all, because of its first-class expertise in numerous areas. In order to leave future generations a prosperous and strong state, Monaco needs to continue in this direction and continually to re-invent itself, adapting to economic change and pushing forward with sensible and fair structural reform, which is vital for the future.
What are your hopes for the next 25 years in the Principality?
As Albert Camus said, “Real generosity toward the future lies in giving all to the present.” We have to invent the future today. In the years to come, I hope that Monaco remains a peaceful and prosperous haven and that it will still attract investors and workers. In our intelligent economy, Monaco's future will depend more and more upon developing the latest ideas which have strong added-value and which generate essential VAT for Monaco's budget. It will also depend upon our ability to ask ourselves what we want for the Principality of tomorrow. Do we want to keep a diverse economy or to expand further? Do we want to keep the Monaco of yesterday or make a commitment to create more jobs for the future so that in 2050 we will be able to accommodate the 125,000 workers we will need to safeguard our pension system?
