INTERNATIONAL AGREEMENTS OF GREAT CONSEQUENCE AT STAKE IN MONACO

by Ilio Masprone Knight of the Principality of Monaco for cultural merits MONACO. Dear followers, today I am pleased to recall two international agreements of great consequence that are taking place in this month of July 2017 in the Principality of Monaco. First agreement’s background: on September 2016, the French Government announced its decision to privatise Nice Airport. It was purchased by the Franco-Italian consortium Azzurra Aeroporti. Following the selection of Azzurra Aeroporti and the French Government go-ahead with Monaco, contact was stepped up with the Prince’s Government. Intensified contacts with Azzurra Aeroporti, the majority shareholder of Aéroports de la Côte d’Azur, lead to an agreement for the Principality to acquire a stake in Azzurra Aeroporti under the terms of the operation and the same conditions that applied to the initial transaction, amounting to a value of EUR 135 million. Azzurra Aeroporti is Aéroports de la Côte d’Azur (ACA)’s majority shareholder, with a 64% stake held since November 2016 and is owned by the Franco-Italian consortium comprising the Atlantia group (which currently holds a 75% interest together with its subsidiary Aeroporti di Roma) and EDF Invest (about 25%). So, it was a beautiful Summer day in Nice Côte d’Azur Airport when the Minister of State, Serge Telle, accompanied by Jean Castellini, Advisor to the Minister of Finance and the Economy, and the representatives of Azzurra Aeroporti’s associates, Giovanni Castellucci, Managing Director of Atlantia SpA, and Guillaume d’Engremont, Director of EDF Invest, signed the agreement on the acquisition. Aéroports de la Côte d’Azur (ACA), manages Nice Côte d’Azur, Cannes Mandelieu and Saint Tropez airports and the international Sky Valet stop-over assistance network for business aviation. The Aéroports de la Côte d’Azur Group is ranked second in Europe in terms of business air traffic. Europe’s leading group in 2016 for business aviation ground handling through its Sky Valet brand, it also operates at Paris Le Bourget, across Spain and in Portugal. www.skyvalet.com Nice Côte d’Azur is France’s second busiest airport after Paris, with 12.4 million passengers in 2016, 111 direct destinations and 61 scheduled airlines serving 38 countries. Outside Paris, it is also the only French airport to offer daily flights to New York and Dubai. www.nice.aeroport.fr As for Atlantia S.p.A. (formerly Autostrade S.p.A.) is an Italian holding company whose primary asset is Autostrade per l’Italia, the largest concessionaire on the Italian highways network. Atlantia is a global player in the motorway and airport infrastructure sector, operating 5,000 km of toll motorway in Italy, Brazil, Chile, India and Poland and managing Fiumicino and Ciampino airports in Italy. The name Atlantia, which is based on the myth of Atlas, who in Greek mythology was ordered by Zeus to bear the weight of the heavens, is intended to clearly demonstrate the universality, strength, solidity and responsibility that characterise the Company’s operations and the evolution towards an international environment. As Monaco commitment in this last sector is crucial, in his speech Minister Serge Telle stressed that the Prince’s Government was pleased to be investing in Nice Airport and playing a role in its long-term development. On this occasion, I also recall a statement by Prince Albert II in 2014,  announcing the launch of a humanitarian projects to offset damage done by greenhouse gases emitted from his latest private jet, a Dassault Aviation Falcon 7X, a 14-passenger leisure jet worth up to 50 million euros. The Prince says the aircraft is currently stationed in a purpose built hangar at Nice airport, and that it constitues a precious tool for the accomplishment of his role as head of state.

PIC falcon 337337413_B97206300Z.1_20130304230925_000_GCHIVOUE.2-0

The second important Summer news needs a background report as well: in early April 2017 an important taxation agreement between Monaco and Italy came into force and, as a direct result, Monaco now appears on the Italian ‘white list’ of tax compliant jurisdictions. The Agreement gives rise both to opportunities and challenges for those individuals who fall within its scope. In March 2015, Monaco and Italy concluded the terms of the Agreement for the exchange of tax information between the two jurisdictions. However, it was not until earlier this month of June the Agreement completed the formal ratification process by the competent authorities in both Italy and Monaco. With ratification the Italian authorities can request their Monaco counterparts to provide information on individuals who are Italian tax resident and who hold assets in the Principality. Furthermore, both states have the possibility for their respective tax authorities to conduct a tax audit in the counterpart state. The Agreement also seeks to avoid the double taxation of income and also defines the concept of ‘tax residence’ in the two states. The Agreement is an important change for those individuals who are tax residents in Italy and Monaco with economic interests in the other jurisdiction. The Agreement should be seen in the context of the introduction of automatic exchange of information on financial accounts which came into effect on 1 April 2017 between Monaco and the European Union, including Italy.So, the subsequent agreement signed on Friday 30 June 2017 between Monaco and Italy on installing a liaison magistrate is the result of further intensified contacts between the two States.

From left to right: H. E. Mr Philippe Narmino, Secretary of Justice, H.E. Mr Cristiano Gallo, Ambassador of Italy to Monaco, and Gilles Tonelli, Minister of Foreign Affairs and International Cooperation
From left to right: H. E. Mr Philippe Narmino, Secretary of Justice, H.E. Mr Cristiano Gallo, Ambassador of Italy to Monaco, and Gilles Tonelli, Minister of Foreign Affairs and International Cooperation

Gilles Tonelli, Minister of Foreign Affairs and International Cooperation, and H.E. Mr Cristiano Gallo, Italy’s Ambassador to Monaco, signed a bilateral agreement on the installation of a liaison magistrate appointed by the Italian authorities to liaise with the Monegasque authorities. The ceremony was also attended by H.E. Mr Philippe Narmino, Secretary of Justice. The agreement seeks to facilitate judicial cooperation between the two countries and make the procedures’ “iter” faster and more efficient.

 

 

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