Day: 5 December 2024

The French government, led by Prime Minister Michel Barnier, was brought down on 4th December following the adoption of a motion of no confidence by the Assemblée Nationale. This unprecedented event, marking the first time a prime minister has been removed by such a vote under the Fifth Republic, came after Barnier invoked Article 49.3 of the Constitution to pass a controversial bill without a parliamentary vote.

The collapse of the government has plunged France into political uncertainty, with potential risks of legislative deadlock. Under Article 50 of the Constitution, Barnier must now tender his resignation to President Emmanuel Macron. While there is no legal deadline for this step, constitutional experts agree it should occur immediately.

The fall of the government raises questions about the future of pending legislation, including the 2025 budget. Constitutional scholars are divided on whether all bills tabled by Barnier’s government will automatically be nullified. A similar situation in 1962, which saw the government of Georges Pompidou overthrown, led to a dissolution of the Assemblée Nationale, effectively burying all pending legislative work. However, with legislative elections not allowed until July 2025, the current scenario may play out differently.

Concerns over a potential government shutdown are also in focus. While deadlines are tight for passing a new budget by the end of the year, safeguards within French law prevent a complete halt to governmental functions akin to the shutdowns seen in the United States. Emergency measures could enable tax collection and limited expenditure until a new budget is adopted.

President Macron faces the critical task of appointing a new prime minister. While he theoretically has the freedom to choose any candidate, institutional norms suggest he must select someone who can gain majority support in the Assemblée Nationale to avoid another swift no-confidence vote. Macron could also reappoint Barnier, but such a decision would depend on the political climate and the willingness of lawmakers to back the former prime minister.

In the event of prolonged deadlock, a technocratic government, composed of non-partisan ministers to manage current affairs, could emerge as a temporary solution. While this approach has precedence in Italy during political crises, it would lack the long-term legitimacy of an elected government and face challenges in advancing major legislative priorities, including the 2025 budget.

Until a new government is formed, Barnier and his cabinet will continue as a caretaker administration, managing essential state functions but operating under strict limits on their authority. As the situation unfolds, questions about the stability of France’s political institutions and the potential for a summer 2025 election loom large.

The crisis represents a historic moment for the Fifth Republic and a critical test for France’s democratic framework.

Monaco Life is produced by real multi-media journalists writing original content. See more in our free newsletter, follow our Podcasts on Spotify, and check us out on Threads,  Facebook,  Instagram,  LinkedIn and Tik Tok. 

Photo credit: Chris Karidis, Unsplash

The Société des Bains de Mer (SBM) has revealed strong financial results for the first half of fiscal year 2024/2025, with revenue growing by 11% to €495.1 million. The growth has been attributed to a successful summer season, the launch of the Amazónico Monte-Carlo restaurant, and the reopening of the Café de Paris Monte-Carlo brasserie.

Operating profit for the six-month period reached €93.9 million, while net income rose to €119.7 million. SBM Chairman and CEO Stéphane Valeri described the performance as a testament to the group’s diversified strategy.

“The 2024 summer season confirmed that we have a coherent, complementary product offering and demonstrated the overall appeal of our Resort. Our hotel business performed particularly well,” said Valeri in a statement. “Catering also stood up well, carried by the buzz generated around the Amazónico Monte-Carlo’s first summer season, and the ongoing success of the Café de Paris. These half-year figures represent an improvement on the same period last year, and validate our strategy to invest across all our business segments: Gaming, Accommodations, Catering, Real estate, as well as developping international growth drivers.”

The group’s hotel revenue climbed 16% to €289.8 million, supported by increased summer occupancy rates, higher average daily rates, and the popularity of newly opened venues. Amazónico Monte-Carlo, launched in April 2024, enjoyed its first summer season with strong results, while the revamped Café de Paris brasserie, reopened in late 2023, continued to attract significant patronage. Rental revenue reached a record €74 million due to new leases at the Café de Paris complex and indexed rent adjustments.

Gaming revenue remained stable at €127.7 million, with increased activity in table games and slot machines balanced by a slight decline in slot revenue, reflecting the unpredictable nature of gaming operations. Despite this, the group’s other sectors performed well, contributing to an overall increase in profitability.

As of 30th September 2024, SBM reported a substantial improvement in its net cash position, which rose to €192.2 million from €68.9 million at the close of March 2024.

Looking ahead, SBM stated that while the business remains on a positive trajectory, the inherent unpredictability of gaming makes it challenging to provide forecasts for the remainder of the fiscal year.

The half-year financial report and accompanying statements, prepared in compliance with IFRS standards, are available on the SBM corporate website.

Monaco Life is produced by real multi-media journalists writing original content. See more in our free newsletter, follow our Podcasts on Spotify, and check us out on Threads,  Facebook,  Instagram,  LinkedIn and Tik Tok. 

Photo source: Monte-Carlo SBM