Monaco's Fiscal Policies Under Scrutiny: Budget Law in Need of Reform
Christophe Brico outlines the limitations of Monaco's current budget law and the necessity for modernization amid changing financial realities.
Christophe Brico, a member of the Union Monégasque political group and president of the National Council's commission for monitoring the constitutional reserve fund and the modernization of public accounts, has raised concerns about Monaco's budget law during a recent interview.
He emphasized the need for a comprehensive reevaluation of existing budgetary frameworks to better reflect the financial operations of the principality.
Brico pointed out that unlike France, where state expenditures have consistently exceeded revenues over the past forty years, Monaco has reported only one deficit in the past decade.
In 2020, the budget showed a deficit of €103 million, a direct consequence of the COVID-19 pandemic.
However, this figure, he noted, does not provide a complete picture of Monaco's public finances, which include various accounts such as special treasury accounts and public equipment program commitments totaling several billion euros.
The 2025 preliminary budget projects a deficit of €88.6 million, yet budgetary estimates often result in surpluses.
This discrepancy arises from technical aspects of budget preparation, where budgets are drafted well in advance of the fiscal year, complicating accurate economic forecasts.
Notably, Brico highlighted that the state typically spends only 95% of the allocated credits, translating to around €100 million unspent from an annual budget of approximately €2 billion.
Concerned about the outdated nature of the budget law, established in 1968 and minimally revised since, Brico argued for a transformative approach.
He called for an entirely new budget law, one that facilitates the approval of budget closures, a fundamental procedure lacking in the current framework.
He underscored that the law needs to be modernized to effectively address discrepancies in interpretation and to properly define fiscal situations not anticipated in the original legislation.
Brico criticized the executive's practices, such as deposit accounts and end-of-year operations, which bypass legislative debate and approval, violating the principle of legal compliance essential in a state governed by the rule of law.
He asserted that the current state of fiscal affairs poses a direct threat to the authority of the National Council, which alone has the constitutional right to authorize all state expenditures.
He noted that current governance structures prevent the Council from amending the budget, a restriction rooted in the constitutional provisions that would require revising these to allow for greater legislative adequacy in fiscal matters.
Despite calls from his political group for reform and legalizing certain previously prohibited practices, disagreements with the executive's approach persist, as Brico described.
On issues of public procurement, he reiterated the necessity for robust legislative frameworks to replace vague regulations currently in place.
The lack of formal guidelines leads to potential inequities in how public contracts are awarded.
He urged the implementation of clear criteria to ensure transparency and fairness in the awarding of public contracts and concessions.
Additionally, Brico expressed support for public sessions of the National Council, proposing that the government should be held accountable throughout the year rather than exclusively during budgetary periods.
He posited that this initiative would enhance governmental accountability and responsiveness to the populace.
Regarding the ongoing discussions about a potential merger between Monaco Info and TVMonaco, Brico highlighted a lack of communication and consultation with elected officials during the initial planning phases of the new television entity.
He conveyed concerns about inefficiencies from operating multiple public media outlets in a small population context, emphasizing that any significant changes must be approached cautiously to avoid past mistakes.
Brico's position accentuates a critical juncture for Monegasque fiscal policy as he calls for a comprehensive review of the budget law to align it with contemporary needs and expectations.
He emphasized the need for a comprehensive reevaluation of existing budgetary frameworks to better reflect the financial operations of the principality.
Brico pointed out that unlike France, where state expenditures have consistently exceeded revenues over the past forty years, Monaco has reported only one deficit in the past decade.
In 2020, the budget showed a deficit of €103 million, a direct consequence of the COVID-19 pandemic.
However, this figure, he noted, does not provide a complete picture of Monaco's public finances, which include various accounts such as special treasury accounts and public equipment program commitments totaling several billion euros.
The 2025 preliminary budget projects a deficit of €88.6 million, yet budgetary estimates often result in surpluses.
This discrepancy arises from technical aspects of budget preparation, where budgets are drafted well in advance of the fiscal year, complicating accurate economic forecasts.
Notably, Brico highlighted that the state typically spends only 95% of the allocated credits, translating to around €100 million unspent from an annual budget of approximately €2 billion.
Concerned about the outdated nature of the budget law, established in 1968 and minimally revised since, Brico argued for a transformative approach.
He called for an entirely new budget law, one that facilitates the approval of budget closures, a fundamental procedure lacking in the current framework.
He underscored that the law needs to be modernized to effectively address discrepancies in interpretation and to properly define fiscal situations not anticipated in the original legislation.
Brico criticized the executive's practices, such as deposit accounts and end-of-year operations, which bypass legislative debate and approval, violating the principle of legal compliance essential in a state governed by the rule of law.
He asserted that the current state of fiscal affairs poses a direct threat to the authority of the National Council, which alone has the constitutional right to authorize all state expenditures.
He noted that current governance structures prevent the Council from amending the budget, a restriction rooted in the constitutional provisions that would require revising these to allow for greater legislative adequacy in fiscal matters.
Despite calls from his political group for reform and legalizing certain previously prohibited practices, disagreements with the executive's approach persist, as Brico described.
On issues of public procurement, he reiterated the necessity for robust legislative frameworks to replace vague regulations currently in place.
The lack of formal guidelines leads to potential inequities in how public contracts are awarded.
He urged the implementation of clear criteria to ensure transparency and fairness in the awarding of public contracts and concessions.
Additionally, Brico expressed support for public sessions of the National Council, proposing that the government should be held accountable throughout the year rather than exclusively during budgetary periods.
He posited that this initiative would enhance governmental accountability and responsiveness to the populace.
Regarding the ongoing discussions about a potential merger between Monaco Info and TVMonaco, Brico highlighted a lack of communication and consultation with elected officials during the initial planning phases of the new television entity.
He conveyed concerns about inefficiencies from operating multiple public media outlets in a small population context, emphasizing that any significant changes must be approached cautiously to avoid past mistakes.
Brico's position accentuates a critical juncture for Monegasque fiscal policy as he calls for a comprehensive review of the budget law to align it with contemporary needs and expectations.
