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Monaco expansion plans hit by economic slowdown

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Monaco expansion plans hit by economic slowdown

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The economic crisis has had an impact on the French Riviera – the tiny principality of Monaco has abandoned the idea of expanding into the Mediterranean. It had been planning to build a huge artificial peninsula, but Monaco’s ruler, Prince Albert II, said “In the current climate it would be irresponsible to launch a project of this scale.” The proposed peninsula would have increased the size of the tax-haven in Southern France by five percent at a cost of up to 7.7 billion euros. At two square kilometres, Monaco is the most densely populated state in the world. It is also one of the richest from banking and tourism. Prince Albert said the decision to cancel the project does not mean Monaco’s economy is in trouble. He added it was also partly due to concerns about the environmental impact.