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Viewing cable 05MARSEILLE103, A NEW ERA FOR MONACO?

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Reference ID Created Released Classification Origin
05MARSEILLE103 2005-11-30 13:22 2011-08-24 00:00 UNCLASSIFIED Consulate Marseille
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 MARSEILLE 000103 
 
SIPDIS 
 
STATE FOR EUR/WE (KATHY ALLEGRONE, SUSAN BALL, JOHN LARREA), 
INL, DRL 
PARIS FOR ECON, POL, PD FOR PAO 
 
E.O. 12958: N/A 
TAGS: PGOV ECON MN
SUBJECT: A NEW ERA FOR MONACO? 
 
 
Summary:  Shortly before his enthronement on November 17, Prince 
Albert II of Monaco signed a new bilateral convention with 
President Jacques Chirac.  This new treaty will permit more 
efficient legal, financial and administrative cooperation 
between the two countries and will also clear up ambiguities 
about the sovereignty of the Principality.  One result will be 
that Monaco will now accredit Ambassadors.    Heir of one of 
Europe's longest reigning royal families which traces its 
origins back to the 12th century, Prince Albert intends to focus 
his modernizing efforts on transforming Monaco into a major 
banking center while combating money-laundering.  End Summary. 
 
1.  Prince Albert II of Monaco was officially enthroned on 
November 17 and the several days of festivities that followed 
coincided with Monaco's National day.  Prince Albert assumed 
royal powers upon his father's death in April and was sworn in 
as Monaco's head of state on July 12.   The solemn investiture 
ceremony of November 17 completed the formal process of 
succession.  Albert is a resolutely modern prince who is focused 
on the future of his tiny principality (which is smaller than 
New York's Central Park).  If he shares his father's vision for 
the future of Monaco, he plans on ruling his country more like a 
manager and will be less conservative.  Prince Albert wants to 
give a modern image of Monaco as a "model country" involved in 
environmental protection and sustainable development.  Another 
of his priorities will be to fight against Monaco's reputation 
as a money-laundering country and non-cooperative tax haven. 
Since his ascension to the throne in July, Prince Albert has 
almost totally restructured his cabinet and gave key positions 
to men of his age, some of whom are childhood friends.  Jean-Luc 
Allavena, a brilliant businessman, recently became his director 
of cabinet, and Franck Biancheri, Finance Minister, became 
ambassador plenipotentiary (i.e., the number two government 
official) on November 10.  Colonel Serge Lamblin, the 
Chamberlain, is also being moved aside for newer blood. 
 
2.  The enthronement was preceded by the signature, on November 
8, of a new convention between France and Monaco.  For his first 
official visit to France as Monaco's head of state, Prince 
Albert met with President Jacques Chirac to sign a revised 
version of the 1930 bilateral Franco-Monegasque convention. 
After a private meeting during which the two men discussed 
environmental issues and global warming, they ratified three 
agreements which provide for greater cooperation on 
administrative, judicial, and financial legislation.  This 
historic treaty will allow Monaco to recover full sovereignty 
and will also call for more balanced bilateral relations between 
the two countries. 
 
3.  These new agreements will deeply transform the Monegasque 
administration as they will allow Monaco to reaffirm its 
independence from France, particularly in the civil service. 
Before the ratification of the new convention, important 
government positions in Monaco could only be held by French 
citizens.  Now they will be held by Monegasques who will be 
appointed by the Prince.  The Prince will be able to choose his 
own Minister of State--the de facto Prime Minister--instead of 
approving a French government official.  These agreements will 
also permit the Monegasques to have access to any position in 
the French civil service.  Moreover, they will increase Monaco's 
ability to conduct its own foreign relations, i.e., other 
countries will be free to open embassies in the Principality, as 
will soon be the case for France.  Monaco will then accredit 
ambassadors instead of consuls. 
 
4.  Judicial cooperation will be more in accordance with 
European standards.  Joint investigation teams, videoconference 
hearings, transfers of prisoners and the speeding up of warrants 
for arrests procedures will constitute the basis of new judicial 
and penal cooperation. 
 
5.  As for financial cooperation, all Monegasque banking centers 
will offer the same guarantees to their investors as in any 
other European country.  This means that these credit 
institutions will follow the same European laws, which implies 
the end of bank secrecy and greater financial openness. 
 
6.  Prince Rainier, known as "the builder Prince", was credited 
with transforming Monaco into an international tourist, banking 
and business services center during 56 years of rule.  Under his 
reign, the economy of the Principality greatly expanded.  With 
more than 60 banks and financial institutions that administer 65 
billion euros in assets, Monaco is a financial center that 
cannot be ignored.  However, its reputation as a tax haven is a 
serious obstacle for Prince Albert who has expressed a 
commitment to financial ethics and openness as one of the themes 
for his new reign.  As his new Finance Minister Franck Biancheri 
recently said, "We have done what was necessary to make Monaco 
one of the most important international financial centers." 
 
7. Comment:  Prince Albert, who is half-American by his mother, 
Princess Grace Kelly, seems to be putting the management 
expertise he learned in the U.S. to use in a deliberate but 
committed fashion as he completes the process of taking power. 
Although until accredited CG Marseille can only observe events 
from afar, it is clear that the Prince has a plan, and his early 
steps have been sure-footed.  Once accredited, CG Marseille will 
seek further details on what the "manager Prince" has in store 
for Monaco.  End Comment. 
BREEDEN