Monaco’s budget deficit is set to top half a billion euros this fiscal year due to the Covid-19 crisis.
In a statement released on Tuesday 21st April, the Prince’s Palace said the coronavirus pandemic will have a “major impact on the state budget, with a forecast deficit estimated at nearly 500 million euros for the 2020 financial year.”
The deficit is a result of the financing of exceptional support measures implemented by the government for workers and entrepreneurs in the Principality, money considered “necessary for the actors of the Monegasque economy”.
A massive decline in State revenues is also contributing to the lack of funds.
“The gravity of the situation calls for increased rigorous financial management accompanied by significant efforts, in particular for the purpose of an overall reduction in State expenditure,” said the Palace.
As a result, HSH Prince Albert has decided to reduce the operating expenses of the Palace by almost 40%, dropping from €13.2 million to €8 million.
“The Sovereign Prince has full confidence in the solidity of the economic and social model of the Principality of Monaco to overcome this health crisis with unprecedented economic consequences for His country,” concluded the Palace.
Before the crisis, Monaco had recorded its ninth consecutive budget surplus. The majority of money this year was earmarked for new housing projects – €174 million in total – delivering around 200 more homes by October. Other major recipients of Monaco’s budget are its Smart City programme and digital transition initiatives.
There is an overwhelming feeling of unrest among parents in the Principality who are concerned about sending their children back to school from 11th May. Meanwhile, anticipation is mounting for the government to provide clear direction as to whether a return to school would be mandatory following an announcement by France.
In an effort to gauge how parents are feeling about returning their children to school amid the current Covid-19 health crisis, the Association of Parents of Pupils of Monaco (APEM) sent a letter to families this week to gather their perspective on the matter.
“In this still uncertain period that we are all living, the question of knowing whether our children will return to school or not on 11th May, as announced by France, remains a concern for some parents,” reads the letter by APEM President Martine Ackermann, who added that the organisation has “decided to give you (parents) the floor in order to represent as many parents as possible.”
While Monaco will begin lifting confinement measures from 3rd May, Minister of State Serge Telle has indicated that the Principality would not initiate a return to school until France does so on 11th May.
“It is not imaginable for a second that we can reopen schools before France,” said the minister. “We are completely intertwined in French national territory.” France’s Education Minister Jean-Michel Blanquer on Tuesday gave provisional details of a staggered return. Younger children are to head back to the classroom first, with five to 11-year-olds returning on 12th May. Secondary school pupils are to restart lessons a week later on the 18th. All classes begin on 25th May.
Speaking to a French parliamentary commission, Mr Blanquer said the plan was progressive and did not amount to “going back to normal”. There would be small groups of 15 pupils in each class, with social distancing measures enforced.
The move however has raised criticism from teachers’ unions, who argue it will place an enormous workload on teachers and put their health at risk, because expecting students – particularly young children – to adhere to social distancing measures is unrealistic.
When posed with the question of whether they would be happy to send their children back to school on 11th May, parents responding on social media are overwhelming saying “no”.
“If it is not mandatory, my current thought is I would prefer not to send my children of 11 and 8 back to school. If it is not safe to go out to restaurants, I can’t feel it is safe to be at school!” said one parent.
“I’m not reassured at all! In my case, I have a son in kindergarten. Knowing that it’s impossible for children of their age to respect social-distancing, it seems too early for them,” said another.
However, some parents are supporting a return to school in three weeks’ time.
“I’m happy for my kids to go back now. This is a virus they will inevitably need to get and I’d prefer they go back now versus back in September just before cold and flu season when we’ll have another wave,” responded one mother.
“For the younger ones, I can understand if some parents choose to keep them at home. But for the older ones I think it’s important both from an educational and a mental health view point to get them back to school,” added another.
The all-important “curve” appears to be flattening in Monaco, with only one positive test of Covid-19 recorded in the Principality over the course of about a week.
There are currently 95 confirmed cases of coronavirus in Monaco, seven who remain hospitalised and three of those are in intensive care. There are 23 patients who have been cleared of the virus, while the Home Monitoring Centre is following 81 suspected cases suffering minor symptoms and self-isolating at their homes.
APEM will now compile its responses from parents and present its recommendations to the Monegasque government.
The Monaco Yacht Show is likely to be the first major event to be held in the Principality post confinement, and organisers are keen to promote the fact that planning is full steam ahead.
During this time of endless event cancellations and postponements, it’s heartening to hear that one of Monaco’s biggest yearly events, the Monaco Yacht Show, is still planning to go ahead.
The MYS, scheduled for 23rd to 26th September, attracts thousands of visitors each year and is the staging ground for many nautically-related companies to show off their wares.
In addition to the spectacular selection of yachts and superyachts to check out, there are also products, services and innovations on offer, making the show a sort of one-stop-shop for boating enthusiasts in the region.
This year’s MYS will be markedly different than those of the past, though, as the Covid-19 epidemic has drastically changed the way large events are held.
As public health is a priority, organisers of the MYS say they will be working closely with the government of the Principality and the World Health Organisation to ensure the safest conditions, taking into consideration the evolution of the pandemic come September.
As such, the Monaco Yacht Show will most likely be one of the first occasions in 2020 to bring together many major players in the luxury yachting community with those in the industry.
Other major yacht shows have been forced to alter their timelines, postponing to dates later in the year in hopes they can still attract visitors. The East Med Yacht Show in Greece and the Singapore Yacht Show have both been curtailed by the health crisis, with the former’s new dates not yet announced and the latter holding off until October. Some have had to cancel outright. The Palma International Boat Show and the Venice Boat Show have both cancelled their events.
The effects of the Covid-19 crisis have hit the yachting industry particularly hard. The drop in sales happened quite literally overnight, with people re-prioritising funds to their personal and business affairs. Many are adopting a “wait and see” approach to determine what the market does once the crisis passes, though yachting industry veterans say this hit will be felt less than during the 2008 financial collapse. They say the industry is better prepared and the circumstances are temporary and not market driven.
For those looking to buy, opportunities may be plentiful in the coming months, making shows like the Monaco Yacht Show a fantastic place to look for deals.
As for owners, they are quick to remind people that a yacht is the ultimate social distancing vehicle, perhaps making them more appealing than ever to those who can afford the luxury.
Achieved diddlysquat in lockdown? You are not alone
Since the start of lockdown, I’ve learnt Mandarin as well as how to play the french horn while doing the formidable and enviable yoga posture of the tripod headstand with lotus legs. What have you achieved?
We are six weeks into the lockdown in Monaco. Many of us entered confinement telling ourselves that we would use the time to do that thing that we have always wanted to do but never had the time to do (fill in the gap for what “that thing” represents to you). Some of us are now despairing that we haven’t quite accomplished our goals.
As a psychotherapist, I am awarded a privileged and unique insight into other people’s lives. Please don’t be fooled that we are all conquering new heights while confined in our homes. It’s just not the case. In fact, the popular mantra that the virus has been sent to us so that we can save ourselves and the planet has left many of us feeling inadequate.
Feeling stuck
What I heard and felt last in my virtual therapy room was “stuckness.” We all have that version of ourselves that inconveniently pops up to remind us that we are not worthy, inadequate and full of shame. Well last week, they seem to have popped up in mass. Here’s what I heard throughout the week:
I should be more productive
I should have achieved more since the confinement began
I should be able to concentrate more and procrastinate less
Note the use of “should.” Our inner critic loves to remind us of all the things we should have done. Please banish this word from your vocabulary or at least during confinement. It supplies oxygen to our inner critic.
I think we may have overestimated what we could achieve in lockdown and underestimated the emotional baggage that would stand in our way. Think about how creative we often feel on holiday. There are fewer distractions. We usually sleep well. We often have more sex. Our minds and bodies are rested. Crucially, we are not overwhelmed with anxiety. Now contrast that with the last six weeks. Are you still confused about why you haven’t learned three new musical instruments while locked in your apartment with children and pets and the prospect of a global economic meltdown?
Redefining productivity
I think we need to redefine what productivity looks like during confinement. For example, many of my clients in Monaco are high achievers. For those emanating from the corporate world, success and productivity are measured using a limited number of metrics such as revenue and/or profits. This is not the time to measure productivity the old way. That’s like drinking soup with a fork. It’s frustrating.
I encourage all of us to redefine productivity and consider a day well spent if we feel grounded, have achieved some emotional connection with ourselves and others, managed to eat well and get some exercise and/or fresh air. We might even sneak in a naughty Netflix. In other words, we need to lower the productivity bar.
We often feel productive because we cling to routines and rituals. We go to the gym, do the school run, go to work etc. These tasks help fill our day and enable us to feel like we are achieving stuff. In confinement, many of us have fewer of those familiar tasks, if any. That adds to the feeling that we have accomplished less. Its more than likely that we have accomplished something but it won’t be the usual stuff that occupied our days before confinement.
Procrastination
We are far more likely to procrastinate when we cannot manage our emotions and feel out of control. Procrastination is partly linked to self-control. It’s hard to focus on saving the planet when I feel emotionally drained or alone. The reality is that staying in the present moment is hard with so much else distracting us. It’s not a surprise to me that so many people have shared that they are struggling to complete some of their daily tasks not to mention the elusive thing that they were going to do in confinement. There is a lot of noise in the background which makes focusing on the foreground difficult.
Aloneness
Let’s not underestimate that many of us are lonelier and more isolated, and not by choice. There is a reason that we invented solitary confinement in prisons. It’s a punishment. It leads to depression and mood disorders. Loneliness/social isolation changes the brain (It can be reversed).
There is more talk now about if/how the lockdown will end. I believe that in itself triggers emotions of loss. Part of the complicated grieving process sets off emotions of depression, anger and denial. There is also such a thing as anticipatory loss. What might we have lost if we didn’t use our lockdown to its fullest?
Standing still
The fear of standing still is overwhelming. It’s why we create busy lives. Well now we are not so busy. We are truly standing still. We are left with more time to experience our emotions. If we have never really been great at dealing with our emotions or have spent a lifetime avoiding painful emotions, this will make confinement that much harder. It will make productivity challenging. Cut yourself some slack. I think we need to practice self-compassion if we have not achieved all our goals in these six weeks.
I often say to my clients that if I spoke to them in the same way that they are speaking to themselves, they would not come back to therapy. So, let me pose these questions. How is your inner critic engaging with you most days? What would it be like to lower your lockdown aspirational bar? Can you redefine your definition of productivity, and if so, what might it look like?
Diddlysquat
Social media is awash with all the potential opportunities that confinement offers and all the achievements that our friends, neighbours and people we have never heard of have accomplished. Good for them. But it’s not a race. Comparisons to others can be a way to reinforce negative beliefs that we are not good enough and keep me frozen. Let’s stop comparing ourselves with the Joneses.
Finally, if you are one of the people who have achieved diddlysquat in confinement, maybe that’s just the way it is. If you haven’t got it all figured out or you haven’t yet mastered the tripod headstand with lotus legs, look on the bright side. There is a strong chance that this won’t be our last lockdown.
Gavin Sharpe Gavin Sharpe is a UK qualified psychotherapist, relationship/psychosexual therapist and executive coach. The thoughts and opinions expressed in this article are his own, and not necessarily those of Monaco Life. Gavin Sharpe can be reached at www.rivierawellbeing.com.
Gavin has started a weekly group on Tuesdays at 12pm to 1pm – an informal gathering which Gavin moderates and where people can share ideas, thoughts and feelings about the lockdown. Note: it is not group therapy. It is intended as a community building initiative.
The thoughts and opinions expressed in this article are those of the author and do not necessarily reflect the thoughts and opinions of Monaco Life.
Belgian professional road racer Philippe Gilbert was recently fined for breaking Monaco’s confinement rules.
The lockdown rules are there for a reason, and no one is excepted. Professional cyclist and Monaco resident Philippe Gilbert learned this the hard way, revealing that he was fined €100 for training outdoors around the Principality.
The cyclist tried to go for an 11km spin “in the immediate vicinity of his home” but was stopped by a police officer who fined him for flouting the regulations. In an interview with Monaco Info, he said he accepted the punishment and has mended his wayward ways, now only training indoors.
“All citizens are equal before the law. Just because I won Paris-Roubaix last year, I don’t have any more rights than anyone else. The fine was €100,” Gilbert said. “As public figures, we need to set an example. I’ve put the bike aside and now I’m only training on the turbo trainer.”
He added, in his defence, “Up to a few days ago, it was tolerated in the Principality for professional riders [to train outside] but that changed not long ago and now we must adapt and train indoors.”
Gilbert owns a bike shop in Monaco, though he has voluntarily shuttered the doors during the epidemic, despite having had the option to remain open. His shop, The Bike Shop by Philippe Gilbert, is available however for those in urgent need.
“Given that bikes are a form of transportation, we have the right to stay open but seeing as everybody is in lockdown, we’ve decided to close the shop itself,” Gilbert explained. “We are still on-call for repairs because people are still riding bikes to go to the shop or make necessary journeys. We’ve helped out a few people that way, so we’ve been fulfilling our role as best we can.”
Photo by Maarten van Maanen
All the headlines and highlights from Monaco, direct to you every morning
