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Month: June 2020

Wholesale Trade numbers top €4.5 billion

by: Stephanie Horsman
19/06/2020

The wholesale trade sector achieved an astonishing turnover of more than €4.5 billion in the Principality in 2019, according to the latest report from IMSEE.

Large Sector of Activity (GSA) of wholesale trade ranks at the top in terms of turnover in Monaco but is only the eighth biggest employer. The sector represents 5% of employees, 9.3% of GDP and 30% of turnover.

Wholesale trade performance is often linked to international economic and geopolitical situations. Tensions in certain areas have impacted major players in this sector in certain years, particularly in the area of ​petroleum product trade.

The growth of this sector (+17.8%) was nearly three times that of the Principality’s overall GDP (+6.1%). This sharp increase is mainly due to a gross operating surplus. In fact, the latter increased sharply (+31%) in 2018, but it only saw the compensation of employees grow at a modest rate (+0.3%). Wholesale’s sectoral GDP, adjusted for inflation, surpassed its former high point, reached in 2015, to almost €550 million. 

The sectoral GDP represents almost 10% of Monaco’s GDP. However, since wholesale trade is not an activity requiring a large workforce, employees weigh in at only 5.5% in overall GDP while gross operating surplus is 12.3%.

At the end of December 2019, wholesale trade had 1,253 active establishments, i.e. 12.6% of the companies that had been created. 79 were written off, representing a positive balance of 31 for the year. It is the fourth most prolific sector in terms of business creation.

Limited liability companies (SARL) remain the main legal form of these businesses. They include almost half of the establishments in the sector while representing only 28.7% of active companies in Monaco.

The average age of a wholesale trade business in operation is 11.7 years, relatively close to the Principality’s average of 12.8 years.  

 
Photo: Shutterstock
 

Government extends financial aid 

by: Cassandra Tanti
18/06/2020

The Prince’s Government has taken new steps to support businesses in Monaco affected by the Covid-19 crisis and to help save jobs.
The government, in consultation with the National Council, is changing the support system for businesses to adapt to the current situation, initiating a new Policy to Support Economic Recovery.
From 1st July, the government will alter the Guarantee Fund and create a new loan system for businesses struggling to get back on their feet amid the ongoing Covid-19 crisis.
These bank loans, approved by the Monegasque Association of Financial Activities (AMAF), will have a State guarantee of up to 65% of the total loan amount. The borrower will only have to guarantee the remaining 35%. Loans can be anywhere from €35,000 to €500,000, and can be combined with the ‘Covid’ loan if already granted.
To apply, people just need to talk with their normal banking establishment, which will explain the criteria and documents to be provided. That credit institution will then examine the application file together with the Monegasque Guarantee Fund.
Meanwhile, in an effort to protect jobs, the government has decided to extend the ‘Extraordinary Minimum Income’ and ‘Aid to Companies’ initiatives by one month. The payment will be automatically applied to the month of July for those who have requested this aid in previous months.
The ‘Extraordinary Minimum Income’ and ‘Aid to Companies’ financial assistance equates to €2,500 for beneficiaries who have been able to resume their activity since 4th May 2020, or whose activity was not forced to close on 18th March. For those that were forced to remain closed throughout the month of May, the total payment will be €5,000.
The government is also studying the implementation of various support programs for the national economy, set to be announced soon.
 
 

€300 fine for discarding masks in public

by: Cassandra Tanti
18/06/2020

People caught littering masks and other Personal Protection Equipment (PPE) in public face a €300 fine as the Monaco government steps up efforts to combat the latest scourge on the environment.
Since the government began recommending that everyone wear masks to prevent the transmission of Covid-19, Monaco – like the rest of the world – is facing a new problem.
The single-use protective gear is being discarded thoughtlessly in the streets and on roads throughout the Principality, often ending up in the sea, prompting the government to mobilise on the issue.
“For the sake of cleanliness and respect for the population, the Urban Police Division, the Maritime and Airport Police Division and the Living Environment Preservation Unit will henceforth be required to systematically verbalise offenders who will be liable to a contravention fine of a maximum amount of €300,” revealed the government on Thursday.
The Principality ordered some 11.5 million masks at the height of the crisis. While 10 million of those are being stockpiled at the barracks of the Carabinier du Prince, more than 900,000 masks have been distributed throughout the Principality.
In early June, France doubled the fine to €135 for littering after images of masks and gloves floating in the ocean sparked widespread outrage.
The call-out in Monaco also extends to those who illegally discard their cigarette butts and other waste.
 
Photo: © Communication Department / Michael Alesi
 
 

Planning a trip?

by: Stephanie Horsman
18/06/2020

If you are planning to travel throughout Europe but are unsure about border rules or what will be open for business when you arrive, then this new European Union website will come in very handy.
The new site, called Re-open EU, aims to take the guess work out of summer travel by giving people all current border statuses of the 27 EU member states. Excluded from the site are the United Kingdom and non-EU neighbours Norway, Lichtenstein, Iceland and Switzerland.
The handy tool allows users to choose a country by either clicking on the map or by scrolling down the drop-down list. It then explains the situation regarding border controls in that particular country. It offers useful data such as whether outsiders can enter the country without limitations, if quarantine requirements are in effect, whether air, rail bus or car traffic is allowed, transit rules, internal movement restrictions and whether non-EU Europeans or foreigners will be granted access to the country.
It also gives recent information regarding the services available in the chosen country. Things such as restaurant, café and bar rules, whether beaches, parks, places of worship, museums, or monuments are open, if personal care facilities, such as hairdressers are available and if hotels are available.
Finally, it offers health and safety risks associated with the country, as well as what health measures must be taken on public transport, at restaurants and in public spaces.
The site can be found at https://reopen.europa.eu/en
 
 

 Traffic woes return as life goes back to normal

by: Stephanie Horsman
18/06/2020

As life slowly returns to normal in the Principality after the crisis, unfortunately so too are old traffic patterns.

Road traffic in and around Monaco is progressively creeping back up as businesses reopen and work-as-usual resumes. Despite the fact that over 10,000 employees are reportedly still telecommuting, the number of cars coming and going from the Principality is approaching pre-confinement levels.   

Back-ups in the A500 tunnel of over 100 metres are again common, and are similar to traffic on the same weeks in 2019. 

This may seem curious at first glance, but when coupled with statistics showing travel by train is way down, then the situation begins to make more sense. According to a report by Monaco Matin, only 8,500 passengers arrived into Monaco’s train station earlier this week, most of whom came during morning rush hours. The number of passengers on any given day travelling into Monaco for the same time in previous years sits at around 23,000.

The drop by two-thirds in rail travel seems to point to a permeating fear of being in confined spaces with others for extended periods of time. This concern, despite a vast amount of safety measures put in place by TER and Thello, suggests that the fallout from the last few months has scarred some people, and it is uncertain how long these feelings of uneasiness will continue.

 
 

AS Monaco welcomes new sporting director

by: Stephanie Horsman
18/06/2020

Former Tottenham Hotspurs and Southampton head of recruitment Paul Mitchell has been appointed new sporting director for AS Monaco.
The Red and Whites are welcoming 38-year-old Mitchell as the team’s sporting director, working with players from the Academy and the pro team. He will also be in charge of tasks at their partner club Cercle Brugge.
His time with the Spurs and manager Mauricio Pochettino saw him sign the likes of Dele Alli, Kieran Trippier and Toby Alderweireld, and his knack for spotting talent will be well-received by AS Monaco who have struggled in recent years to gel.
“I am looking forward to coming to AS Monaco. I would like to thank Oleg Petrov and the club for their trust. I would also like to thank Red Bull for the years I spent at their side,” said Mitchell in a statement on the AS Monaco website. “I am looking forward to taking up my position, meeting the teams and starting to work together to develop the project and establish a sustainable philosophy for the club.”
Mitchell is bringing another fresh face, Laurence Stewart, whom he worked with at Red Bull’s football division, as the club’s head of recruitment and development. Stewart is an alumni of Manchester City, Everton, and the English Football Association, as well as Red Bull.
AS Monaco has had a tough past two seasons, finishing 17th in 2018-19 and sitting in 9th place in 2019-20 when the season abruptly ended due to the global health crisis. Mitchell’s arrival may help put the Red and Whites back at the top of the league for 2020-21.