Monaco Policies

INTRODUCTION:
Monaco is about 3 times the size of the Mall in Washington D.C with only 1,95 square kilometers (0,75 square miles). The population size is about 31,693 in july 2000 with an average growth of rate of 0.48 percent in the same year. the Monegasque population is among the oldest populations in the world. The average life expectancy was 74.88 for men and 83 for women in 2000, indicating an overall life expectancy of 78.84 according to the nation encyclopedia.

Fiscal policy can be defined as the government spending policies that impacting the macroeconomics conditions. These policies influence interest rates, tax rates and government spending, in a goal to control the economy of a country

Over 95 percent of employment in this country is based of services. The third of their GDP is related to the financial sector that produce 16 percent.Tourism and related industries comprise almost a fifth of the GDP. Monaco trades globally and have a large range of product exported to cover the commodities of a citizen. Trade data for Monaco is included in France's external account.Monaco has a particular monetary link with France, before the introduction of the euro, note and coins issued by France were legal in monaco. This one does not have a central bank or a currency on it's own. As a report of the Europa summaries EU legislation they reported that financial institution in Monaco had access to the Banque de la France, but had never used the refinancing facilities under the same conditions as the french banks. They have the same french system of payment on the same terms. They also supervised by the french authorities. The financial industry in Monaco suffered in 2006 a deficit of $200 millions but as many reports show was neutral at the beginning of 2008. Although as a result of a sharp decline in both export and import. When Holande informed to the french population on the increase on the wealth taxes of a 75 percent, a certain number of French business families decided to move to monaco where they have a tax friendly of jurisdiction. This country has no income tax on individuals, no net wealth tax, no capital gains taxes, no property taxes and no general corporate income tax ( don't compromise with french companies). Some statistics are given on the chart of Monaco about the