2005 will be a key year for Monaco. Prince Rainier III died on April 6th, 2005, 56 years after his ascent to the throne. His was a long and fruitful rule during which Monaco entered the mainstream of the international community, becoming an official member of the UN in 1993 and of the Council of Europe in 2004. Rainier III was also known as the builder-prince due to the construction fever and ingenious engineering works that took place during his reign. Thanks to his vision the Principality radically changed and modernized itself, both physically and economically. The territory was increased by several acres by reclaiming land from the sea. Two ports, a pier destined for cruises, gardens, industrial buildings and even a heliport were erected where before there was only the sea. The Grimaldi Forum, an impressive new congress center has been one of the latest additions to the lot. Economically, the country bloomed during the Rainier years. His wedding with Academy Award winning actress Grace Kelly brought back the glamour to the land of the world’s most famous casino. Money started pouring in and it has not ceased ever since. Despite the lack of natural resources, the Principality established itself as place where multinational companies as well as the rich and famous could obtain significant tax benefits. Besides, it has been able to diversify its economy with special emphasis on industry, tourism, banking and services. The death of Rainier meant the end of an era. But, what does the future have in store for the Principality?


The Royal Coat of Arms of Monaco.

After 3 months of official mourning, Rainier’s only son Prince Albert II, who rose to the throne on July 12th, will be crowned before the world’s Heads of State and the Royalty on November 19th, 2005, making it coincide with Monaco’s national day. The Principality faces new challenges and transformations, such as a reshuffling of government, including new ministries and functions. The old Ministries of Finance and Economy and Internal Affairs will work hand in hand with newly created ones such as the Ministry of Social Affairs, the Ministry of Public Works, Environment and Urbanism and the Ministry of Foreign Affairs.

The territory of this minuscule country (0.772 sq. miles) located in the French Riviera, will be further expanded and reorganized through spectacular engineering projects and landfills that will reclaim new land from the sea. However, environmental respect is in always in the backdrop, being a major issue of concern for Monaco. International relations will be particularly stressed and stricter banking regulations will be set up to avoid money laundering while complying with European and international fiscal policies. Thus, while keeping the sacred principle of confidentiality, new financial tools will progressively be implemented to continue attracting foreign capital.

On December 7-9th the Monaco World Summit will take place, a world class event launched under the High Patronage of HSH Prince Albert II and organized by the Crans-Montana Forum. Leaders and high level decision makers from European States and the Mediterranean basin will come to meet in an informal way in order to develop their international contacts as well as to improve the progress of their regional and international integration. Guest States from other parts of the world (Africa, the Middle East, the Americas and the Far East) will also be encouraged to join this key event. Some of the topics to be discussed are globalization, sustainability, cooperation, the necessity for reforms and the problems that directly affect the Mediterranean.

The objective of this report is to portray a different image of Monaco, shunning away from the superficial and frivolous information gossip magazines usually offer. Based on interviews with members of the government and top businesspeople of Monaco – both local and foreign – we want to showcase the bustling business life of the Principality. This is a small but exciting and thriving country, concerned about the environment and sustainable development; always changing and amazing the world thanks to the imaginative solutions applied to its territory and the attractiveness that entails its cultural heritage and unbeatable situation.

Our upcoming report will come out at the time of the formal coronation ceremony of Prince Albert II. The following are some of the areas that will be covered:



NEW GOVERNMENT

    * Changes in the government and the challenges it faces.
    * Relations between Monaco and the United States.



ENVIRONMENT

    * Environmental issues.
    * The Principality as a model for environmental sustainability.



POLITICS

    * Monaco as an international agent for world peace.
    * The security issue related to international terrorism.



PUBLIC WORKS

    * Urban plans: the NY syndrome vs. the Garniér inheritance.
    * Port Hércules: Past and future developments.
    * Plans to reclaim new land from the sea to enlarge the territory.
    * Main infrastructure and engineering works in progress.



INDUSTRY

    * Diversification.
    * Challenges: pollution and lack of space.



TOURISM

    * Business tourism: Monaco as an international conference and congress center.
    * New tourist attractions and developments



FINANCE AND BANKING

    * Advantages of Monaco’s banking system.
    * Tax system, private finance and new financial tools.



SPORTS AND LEISURE

    * Monaco as a cultural focus in the Mediterranean.
    * The Principality as a magnet for international sports events



NEW BUSINESS OPPORTUNITIES

    * IT technologies
    * Consulting firms