Monaco

Political relations

Political relations between France and Monaco are close and have made major progress in recent year towards strengthening the sovereignty of the Principality, particularly since the signing of the treaty of friendship in 2002, with our Consulate in Monaco becoming an Embassy on1 January 2006. Three events illustrate this: the signing of the treaty of friendship in 2002; the signing of the administrative cooperation convention in 2005; and the establishment of diplomatic relations, with our Consulate in Monaco becoming an Embassy on 1 January 2006. We have strategic economic interests in Monaco because of the Principality’s role as a key employment hub (55,000 jobs), as well as diplomatic interests, as its influence is far greater than its size suggests.

Financial relations

Financial relations with Monaco are based on the customs agreement of 1865, which gave rise to a customs union that was renewed on 18 May 1963 when the two countries signed a tax convention and exchanged official letters in the area of banking regulation. In 1999, Monaco was granted the right to mint euro coins with the Monegasque coat of arms, which are minted by the Hôtel des Monnaies de Paris. In 2001, a monetary convention was signed between Monaco and France (on behalf of the European Commission), introducing the euro in Monaco. French people who took up residence in Monaco after 13 October 1957 are required to pay French income tax.