Monaco’s economy is thriving at a pace that defies its neighbouring regions, growing at 5% annually in real terms, while the eurozone barely exceeds 0.5%.
This economic surge was revealed by Finance and Economy Minister Pierre-AndrĂ© Chiappori during the Junior Economic Chamber of Monaco’s breakfast conference at the MĂ©ridien Beach Plaza on Tuesday.
“It is extremely rare for a landlocked economy to grow four times faster than the zone in which it is located,” Chiappori explained, highlighting Monaco’s exceptional performance between 2019 and 2024.
This growth comes from major programmes alongside projects including the Mareterra extension. The remarkable part of the equation is that Monaco achieved this without triggering the budget deficits or inflation that economic textbooks typically predict.
Despite concern of a sharp slowdown after these programmes ended, Chiappori reported: “For the moment, we are not seeing any notable slowdown. The 2025 budget will be in surplus”.
Scrapping rules from 1828
Perhaps the most striking part of his speech concerned Monaco’s administrative overhaul. Chiappori disclosed that some regulations governing economic activity dated from 1828, a fact that prompted a comprehensive modernisation drive.
“I have personally experienced having to download a form, fill it in by hand, bring it to one office, then go and collect it from that office, take it to another office, and so on,” he said. “Obviously, that does not convey an image of particular modernity.”
A law passed in April 2025 created single-person limited liability companies and simplified numerous procedures. Now, creating such companies requires no in-person visits, everything can now be completed online. Within two years, Monaco aims to make all administrative processes digital.
The reforms are already working. Stéphan Bruno, Director of Economic Development, reported over 30% more business applications, with approximately 393 structures created this year. This indicates a clear trend in single-person companies, with four sectors dominating: digital marketing, artificial intelligence, wellness, and construction-related design offices.
When asked about future sectors to prioritise, Chiappori offered a pragmatic response: “Our main constraint is space. Any sector that manages to generate substantial wealth while occupying little space is a sector that interests me.” He specifically mentioned investment funds and private equity as promising activities in Monaco.
Crypto scepticism and token enthusiasm
Monaco has also made dramatic progress on international compliance. Following a critical 2023 Moneyval report, the Principality now meets 39 of 40 recommendations, with only cryptocurrency regulation outstanding. The government aims to pass updated legislation by the end of 2026.
Chiappori expressed personal reservations about cryptocurrencies not backed by real assets, but showed genuine excitement about tokenisation. “It allows a much more flexible version of property rights. You could become owner of a tiny part of a building, for example,” he explained.
“Don’t listen to government advice”
In the conference’s most memorable moment, Chiappori offered unconventional guidance. “The advice I would like to give you is: don’t listen to advice, especially when it comes from the administration.”
He cited Bill Gates developing microcomputers in his garage while France invested massively in mainframe computes. “The problem was that the future was in that garage. Nobody understood that, including American experts at the time.”
His core message to entrepreneurs: “Your value is how you distinguish yourself from others. Cultivate that. There’s one thing that the state cannot do, in that case nobody can, and that’s predict innovation.”
Chiappori concluded by rejecting that the government knows everything. “God knows if there’s one thing I detest, it’s the idea that government has infused knowledge. France did that for years and we know the results were not uniformly positive.”
Instead, he called for collaboration. “We are listening to you. Don’t hesitate to share your suggestions, your criticisms. The creators of wealth are you. The government is not your spouse. We count on you.”
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Main photo of Pierre-André Chiappori: Credit JCI