The South African Civil Society Information Service
A nonprofit news agency promoting social justice. Seeking answers to the question:
How do we make democracy work for the poor?
A nonprofit news agency promoting social justice. Seeking answers to the question:
How do we make democracy work for the poor?
7 Jul 2011
This Euronews report contends that the late Prince Rainier III of Monaco started a new chapter in the principality's history: one of glamour and wealth -- but also one of money laundering and tax evasion.
When the global financial crisis highlighted "tax havens" as a major concern, his heir, the current sovereign monarch of Monaco, Prince Albert II (recently wed to South African Charlene Wittstock) signed accords with the OECD promising more transparency. However, it appears that these accords are as flimsy as the paper they were signed on.
Monaco's banking system is controlled by the Bank of France that apparently has co-operated with the OECD to root out tax evasion and money laundering.
However, Roger-Louis Bianchini, journalist and author, contends that current methods used by the bankers to identify the sources of money entering the country are shaky and (more damning), there appears to be no political will to root out the problem.
Although Monaco is the second smallest country in the world, it has more millionaires per head than any other population. Foreigners make up 80% of the country's population. They are lured to its shores because they avoid paying personal income taxes as residents of the principality.
With the global crisis calling for more countries of the European Union to implement public spending cuts and increase taxes, Monaco, like other tax havens, seems out of touch with reality.
Apartments in Monaco sell for as much as 30 million Euros. Residents who are not millionaires face an ongoing housing crisis. Affordable housing for middle class residents has all but disappeared.
Sylvie Ciantelli is a middle class Monaco resident whose husband's family has been in the country since the 1800's. As her husband is considered indigenous, the family is protected by a law which allows for rent control in buildings built prior to 1947. However, most of the old buildings have been sold and torn down.
The Ciantelli's are the last family in the building they currently live in. It too is being sold at millionaire rates. They can't afford to buy their unit and there is no alternative affordable accommodation on offer to them.
Ciantelli wonders if Prince Albert is aware of the plight of Monaco's middle class residents.
Posts by unregistered readers are moderated. Posts by registered readers are published immediately. Why wait? Register now or log in!
