Freedom in the World 2004 - Monaco

Political Rights: 2
Civil Liberties: 1
Status: Free
Population: 30,000
GNI/Capita: $27,000
Life Expectancy: 0
Religious Groups: Roman Catholic (90 percent), other (10 percent)
Ethnic Groups: French (47 percent), Italian (16 percent), Monegasque (16 percent), other (21 percent)
Capital: Monaco

Overview

National elections in early 2003 led to one of the most significant shifts in postwar Monegasque politics.

The Principality of Monaco is an independent and sovereign state, although it remains closely associated with neighboring France. The royal Grimaldi family has ruled the principality for the past 700 years, except for a brief period of French colonial rule from 1789 to 1814. Under a treaty ratified in 1919, France pledged to protect the territorial integrity, sovereignty, and independence of the principality in return for a guarantee that Monegasque policy would conform to French interests.

Prince Rainier III has led the country since 1949 and is largely responsible for Monaco's impressive economic growth. Since his ascension, the country has ended its dependence on gambling and increased other sources of revenue, principally tourism, financial services, and banking. In August 2002, Monaco added a huge new floating pier to its harbor, which is known as a major port for expensive yachts and fancy cruisers. The pier, the largest in the world, cost almost $250 million and doubles the capacity of the country's port. In February 2002, Monaco adopted the euro despite the fact that it is not a member of the European Union (EU). A new EU directive intended to crack down on tax evasion and fraud that was passed in 2003 threatens Monaco's status as a major tax haven.

Elections in February 2003 led to a major upset for the National and Democratic Union (UND), which lost after dominating national politics in Monaco for the past several decades. The opposition Union of Monaco (UPM) received 58.5 percent of the vote and 21 of the 24 seats in the Conseil National, while the UND received 41.5 percent of the vote. The UPM's victory represented widespread support for Monaco's bid for membership in the 45-member Council of Europe, an issue the party had promoted strongly.

Political Rights and Civil Liberties

Citizens of Monaco can elect their parliamentary representatives democratically. However, the prince has the sole authority to initiate laws and change the government. The 24 members of the Conseil National are elected every five years; 16 are elected by a majority electoral system, and 8 by proportional representation. The head of state is not elected but inherits the position. Prince Rainier III has ruled the country for the past 54 years, and his son, Prince Albert Alexandre Louis Pierre, is his likely successor. The head of government – the Minister of State – is traditionally appointed by the monarch from a list of three candidates who are French nationals presented by the French government. The current Minister of State, Patrick Leclercq, has held the post since 2000. In addition to the Minister of State, the prince also appoints three other ministers (counselors) who collectively make up the government. All legislation and the budget, however, require the assent of parliament.

Because of a lack of available financial information, the level of corruption is difficult to measure in Monaco. As of today, Monaco remains on the OECD's list of uncooperative tax havens. Although it is not a member of the EU, Monaco will have to exchange information or impose a withholding tax to minimize money laundering and prevent capital flows from the EU. As other tax havens have agreed to the EU's directives, it is assumed that Monaco will also fall in line.

The media in Monaco are free and independent. Monaco was one of only 12 of the 55 OSCE member states that had no press freedom violations recorded in 1999-2000. The constitution provides for freedom of speech and the press, although the penal code prohibits denunciations of the ruling family.

The constitution provides for freedom of religion, although Roman Catholicism is the state religion and Catholic ritual plays a role in state festivities. There are free religious institutions and no laws against proselytizing by formally registered religious organizations, although it is strongly discouraged. The government does not restrict academic freedom.

The government does not impose restrictions on the formation of civic and human rights groups. Workers have the legal right to organize and bargain collectively, although they rarely do so. Only 10 percent of the workforce is unionized. All workers except those in the government have the right to strike.

The legal right to a fair public trial and an independent judiciary is generally respected. The constitution requires that the prince delegate his judicial powers to the judiciary.

The constitution also differentiates between the rights of nationals and those of residents. Of the estimated 32,000 residents in the principality, only about 7,000 are actual Monegasques, who alone may participate in the election of the Conseil National. Monegasques also benefit from free education, unemployment assistance, and the right to hold elective office.

A woman can lodge criminal charges against a husband for domestic violence, and women generally receive equal pay for equal work. Although naturalized male citizens in Monaco can transfer citizenship, naturalized women cannot. There were no reports of trafficking in persons into, from, or within Monaco over the year.