- In the Principality, the coronavirus crisis notably caused the cancellation of the Formula 1 Grand Prix and the Masters 1000 tennis tournament in Monte-Carlo.
- The economy of the country is very impacted with a budget for 2020 in deficit of almost 500 million euros.
Monday, May 4, a week ahead, a priori, on France, the principality of Monaco should begin its deconfinement. A step that promises to be slow and gradual in the country that will have to manage "unprecedented economic consequences" with the crisis of the new coronavirus, described Prince Albert-II of Monaco.
Le Rocher, forced to do without its Grand Prix, the Monte-Carlo tennis tournament or even part of its very lucrative hotel industry this year, has already budgeted a deficit of 477 million euros for 2020 .
€ 350 million in excess spending over three months
"The gravity of the situation requires increased rigorous financial management," said the prince's office as early as last week. And, to cope, "significant efforts in particular for the purpose of an overall reduction in state spending" were announced with a reduction in operating expenses of the princely palace of almost 40%.
The direct cost of the pandemic has already been estimated at 500 million euros, corresponding "to the financing of the exceptional support measures necessary for the benefit of economic players". An incredibly high cost for Monaco. "In a country where the budget is generally voted in balance, where the last deficit episode dates back to the 2009-2011 period following the global crisis [with 200 million euros spread over three years], we are talking here closely 350 million euros in excess spending over three months, "points out the Minister of Finance and the Economy Jean Castellini.
Cancellations that will weigh on the long term
But the overall impact, still difficult to quantify, will be greater in the long term. The cancellation of the Monaco Grand Prix, traditionally held in May, is for example a real blow to the local economy. According to a study by Imsee, the Monegasque Institute of Statistics and Economic Studies, the event, which represents 1.5% of GDP, usually induces nearly 100 million euros in spinoffs. This cancellation, like that of the Masters 1000 of Monte-Carlo, is "an economic impact which is enormous" judged the sovereign prince in an interview with L'Equipe .
In 2017, the hotel and restaurant sectors each garnered more than 18 million euros during the four days of the F1 festival. A shortfall that will weigh in this industry which represented, still in 2017, a financial windfall of 366.9 million euros. And which will certainly be affected for many months to come.
If the hotels were not obliged to close, their activity is still greatly reduced. For cafes and restaurants, prohibited from entering, it will be necessary to wait at least the beginning of June, according to the deconfinement plan presented this Wednesday by the Monegasque authorities. This same plan also does not provide for the reopening of casinos, cinemas, beaches and swimming pools, sports halls and sports activities before this same date.
"Favor the local economy at the time of recovery"
Shops, on the other hand, will be able to reopen on Monday, provided that a limit of four people per square meter is respected. Construction will also resume, as will the use of private helicopters and day trips. What revive, at least in part, a little activity. But in any case, with this global health crisis, the Principality of Monaco will have to deal with a "new budgetary deal", according to the princely government.
The three stages of deconfinement
PHASE 1: Opening on May 4
- of all shops (one person / 4m²), except cafes, restaurants, hotels
- places of worship (health security distance of 1.5 m + mask)
-Aesthetic salons or treatment room only on appointment pic.twitter.com/dOoaHXBkC3
And, to cope, several avenues have been launched by the Minister of Finance and the Economy. Jean Castellini proposes "to envisage new revenues for the State in the field of the digital economy, in the expected strong recovery of the tourism sector" and also to "favor the local economy at the time of recovery".
Our file on the Covid-19
In total, Monaco has to date counted 94 cases of Covid-19 and only four deaths, of which only one was resident. Prince Albert II has contracted the virus and has since recovered.
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Prince Albert reduces palace lifestyle by 40%, state budget in deficit for 2020
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