Thematic block: Andorra and Monaco. Characteristics of the economy of the dwarf states of Western Europe Andorra and Monaco

Hemmed in by the borders of large countries, these states are barely visible on the world map. The largest of them, Andorra(468 km²), almost five and a half times the territory of today's Moscow. The smallest of the dwarfs, Vatican(0.44 km²), - 5707 times. It would seem, how can one take seriously government entities of such ridiculous (from the point of view of Russians) sizes? But the outside world looks at these countries with respect and... envy.

Financial oasis

Klaus Koppe, a venerable Latin teacher, moved from Munich to the capital Liechtenstein more than ten years ago. Vaduz, with a population of five thousand, is not the largest city in the country - almost seven hundred more people live in neighboring Shan.

Klaus doesn't feel like an outsider. Everyone here speaks his native German and is in no hurry. Klaus lives in the city center, in a two-story old mansion with a fireplace and a garden, which overlooks the main attraction of the city - Vaduz Castle, rising on a hill. If it gets boring, the teacher gets behind the wheel and drives 200 kilometers to visit his native land. It happens that a German, following the example of other residents, does not lock the front door: there is no need to worry that someone will want to visit in the absence of the owners.

Klaus, like most residents of Vaduz, knows almost everyone by name. He more than once encountered members of the royal dynasty of Liechtenstein in the forest, picking mushrooms. What no one knows is those people who hold millions of dollars in deposits in state banks. Liechtenstein keeps secret the names of investors who are happy to hide money in the principality from taxes on income and profits adopted in their countries. This is very attractive to foreign businessmen, as is the absence of taxes on gifts and inheritance, as well as the law according to which organizations of any type can be created on the territory of the state.

Thanks to foreign companies, Liechtenstein citizens do not experience unemployment, because every company registered here must have a local representative. And if you consider that there are more companies registered in the principality than citizens, then it becomes clear where such a high standard of living in the country comes from. The average annual income per capita is 57,100 euros (for comparison: in Russia - 15,100 euros).

Monaco also provides for its citizens at the expense of foreigners. The Principality provides tax benefits to foreign companies and entrepreneurs in response to the fact that they undertake to hire Monegasques - subjects of the Monegasque crown. At any enterprise, half of the employees must be citizens of the country. The average salary in Monaco is 5,500 euros per month. The principality exempted its residents from most taxes, but left an inheritance tax (up to 16%) and a high VAT (about 20%), which confirms the country’s reputation for luxurious living. Life is much cheaper in Andorra. There are no taxes there, including inheritance taxes. The income of an Andorran is on average 10% higher than that of residents of EU countries. The state treasury is replenished by import duties, tourism and banking services. Foreigners can easily open accounts in local banks and avoid paying taxes on deposit income. The country charges each client 400–500 euros per year for banking services.

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In the north, Andorra is literally pressed by France, in the south - by Spain. Being surrounded by such giants, it is easy to get lost. And it’s not easy to get people to come to a highland country that has neither an airport nor railways. Squeezed by serious competitors, Andorra did not compete with them, but invited them to visit them for shopping. I was interested in year-round discounts and the absence of customs duties. Prices here are a third lower than in Europe. Visiting a duty free country has become a pleasant habit for the French and Spaniards.

Whenever family of 35-year-old TV producer Santiago Rodriguez wants to make a valuable purchase, she travels by car from Valencia to Andorra. " There are shopping buses from my city, despite the long distance (more than 400 kilometers), says Santiago. - Many friends from Catalonia visit Andorra regularly. Barcelona is an expensive city, so residents prefer to buy cigarettes, alcohol and even sugar in the neighboring country. I stop in Andorra every time I go to France to refuel. Until recently, gasoline here was a third cheaper. Now the price has risen, but nevertheless the difference is noticeable: in Andorra 1.24 euros per liter, in France - 1.47" (For comparison: in Russia - about 0.76 euros. - Note "Around the World".)

Santiago claims that, surprisingly, the majority of buyers in Andorra are Spanish. The French visit it more to go skiing. Because of this, customs police at the borders of these countries behave differently. “At the Spanish border, every sixth car is checked, but at the French border they don’t pay any attention to what you take out,” says Santiago. “Knowing this, many Catalans leave Andorra from the French side, especially if the purchased goods exceed the allowed limit of 900 euros.”.

If every one of the 10 million tourists who visit the mini-country every year makes a mini-shopping, Andorra's economy will continue to prosper. So are its stores, which sell jewelry, luxury clothing, electronics and cars. Santiago believes that if it weren't for duty-free goods, no one would climb so high into Andorra (the city of Andorra la Vella is located at 1079 meters). And since the traveler has climbed here, the country will take care of his comfort. Andorra's reputation as Europe's cheapest market makes it a great draw for ski tourism. Income from tourists, by the way, accounts for 80% of the country's GDP.

Liechtenstein has also learned the rule that there is no point in competing with neighbors. It is necessary either to offer similar services, but at a lower price, as is the case with the ski sector, or to create an exclusive one. Stamps that can be used to decorate anyone’s passport for just 2.5 euros at the Vaduz tourist office are so exclusive. An entry stamp into the country was not required before, since tourists came here with a Swiss visa, and when the principality joined the Schengen Union, it was no longer necessary. But not demand. Souvenir check-in has become one of the main “purchases” in the country. Just like postage stamps, which began to be issued in 1912. They are highly valued by philatelists around the world. The sale of stamps brings the principality 12% of all income.

Monaco took a different path. Having successfully grabbed for itself, albeit a small, piece of the Cote d'Azur between Italy and France, the principality came up with an ingenious hook for the public, accustomed to a luxurious vacation. In the middle of the 19th century, Prince Florestan from the Grimaldi dynasty looked with envy towards Cannes and Nice. He understood that the territory of his state did not allow him to expand, and the rocky coast was not entirely suitable for creating a resort that could compete with French beaches. And then the prince came up with the idea of ​​​​turning Monaco into an attraction for people with great opportunities. With the opening of the casino, rich holidaymakers began to flow into the principality, and with them capital. The casino and Formula 1 Monaco Grand Prix are considered the main reasons to visit the country. By the way, state income from gambling entertainment itself only 4%. This is only a small part of what wealthy tourists bring to the treasury. But Monegasques are prohibited from gambling at home. Why lose what others have lost to the people of this small country? Monaco protects the income of its few citizens. It is a special privilege to be a citizen of an elite state that lives largely at the expense of foreign capital. Becoming a citizen of such a state is an unattainable dream for many.

Special class

Before obtaining Liechtenstein citizenship, the applicant must live in the state for 30 years. But if the members of the commune in which the foreigner lives want to accept him into the narrow circle of Liechtensteiners, they can reduce such a long waiting period by voting.

Only a person who has lived legally in the country for 20 years, spending a total of at least 183 days in it annually, can become an Andorran. There are not many of them. Two thirds of Andorra's population are stateless. These 52,000 people cannot vote and have a number of other rights limited. By the way, having received Andorran citizenship, you will have to renounce your previous citizenship. The country does not recognize binationals, like Monaco. About 36,000 people live in this principality on two square kilometers. Of these, only 24% can proudly call themselves citizens. The rest are, well, foreigners, despite the fact that they have given this country more than a dozen years and more than tens of thousands of euros. It is almost impossible to obtain citizenship, but a residence permit is possible. By becoming a resident of Monaco, a person gains the right to enjoy preferential taxation. However, the carte de sejour (resident card) itself is not cheap, which confirms the thesis: “Monaco is a country for millionaires.” To get it, you need to acquire real estate. Housing on a tiny piece of the Cote d'Azur is one of the most expensive in Europe, from 500,000 euros per apartment (cost per square meter from 20,000 to 70,000 euros). But judging by the actively developing neighborhoods, the demand is huge. Less wealthy foreigners rent housing for 1,000–3,000 euros per month. In addition, those wishing to become a resident must open a bank account in Monaco for at least 100,000 euros - as proof of financial solvency.

A residence permit opens many doors, but not all. Thus, only Monegasques are allowed to own real estate in the Old City and take part in parliamentary voting. You can become a citizen after ten years of official residence here (provided you stay in the country for at least six months a year) or (for women) after five years of marriage to a Monegasque. On rare occasions, this honor is bestowed by the Prince of Monaco for special services to the state.

A graduate of St. Petersburg State University, Alexandra Nemets, who has lived in Monaco for only two years, does not have such merits, but she does have a love for the country. “Over two years of my life, I developed “Monaco syndrome” - dependence on the sun and good weather and intolerance to long distances. Here you can get everywhere on foot, and if you get tired of the monotony, you can take the train and in 10 minutes order lunch in France or Italy. Monaco is an absolutely safe place: there are video cameras and police everywhere. You can leave your premium car unlocked or forget your phone and find it in the same place. In big cities like Paris or St. Petersburg, where I used to live, there are all aspects of life: good and bad. In Monaco there are only good ones.”

Citizens of Monaco, like citizens of Andorra and Liechtenstein, are confident that they live in the best country in the world. In a country where, in a small area, you have everything you need for a happy, comfortable and safe existence. Their country made sure they felt chosen. And she allowed everyone else to touch this ideal world. And support him financially.

There are four states in Europe that together occupy an area smaller than Moscow. Unlike other small states that appeared on the world map relatively recently, they have a centuries-old past. They trace their history back to the times when almost all of Europe consisted of the same small states. Now they are largely dependent on their stronger neighbors. And yet each of them has its own face, its own characteristics.
Little Andorra (its area is 465 km2, population is over 45,000 people) is lost in the Pyrenees mountains, between France and Spain. Officially, it is a principality, in fact it is a republic that has its own government, but its co-rulers are the President of France and the Bishop of Urgell (Spain). The highway connecting Spain and France runs through Andorra. Many foreign tourists come here. Their service is the main source of income for the population. Andorra sells sheep's wool to neighbors. There are small enterprises in the tobacco and food industries here, selling souvenirs for tourists - wooden and metal handicrafts. The population of mountain villages is also engaged in agriculture. French and Spanish are spoken in the country.
The smallest of the tiny states is the Principality of Monaco. Its area is about 2 km 2, its population is 30,000 people. It is under the tutelage of France, and French is spoken here. This picturesque area on the Mediterranean coast with a mild climate and rich subtropical vegetation has turned into a world famous resort, where people come from all over the world.
The main sources of state income are trade, services for foreign tourists, visitors to resorts, gambling houses, and the issue of postage stamps.
Industries such as chemical, electronic, construction, precision engineering, textile, and food have developed here. On the territory of Monaco there is an oceanographic institute and a museum where the inhabitants of the underwater world live in a magnificent aquarium.
On the right bank of the Rhine, between Austria and Switzerland, is the Principality of Liechtenstein (area - about 160 km 2, population - about 30,000 people). Three quarters of its territory are occupied by mountains covered with coniferous forests and meadows. The climate in the mountains is harsh, in the valley it is mild, with warm summers. Residents raise livestock, grow wheat, vegetables and grapes, and brew beer. Plants and factories produce counting machines, fabrics, chemical products, and medicines. A significant part of the population is employed in handicraft production. Almost all industrial products are exported. Liechtenstein's economy is heavily dependent on neighboring Switzerland and Austria.
Over 25 thousand foreign companies are registered in the country, which often have 1-2 employees, since the tax on these companies is very low. It constitutes an important source of income for the principality. Significant profits come from foreign tourism, as well as the issuance of postage stamps.
The language spoken in Liechtenstein is mainly German. At the head of this small state is a prince.
The small republic of San Marino is located in the Apennine Mountains (area 61 km2, population 22,600 people). According to legend, San Marino was founded in 301. Then, in one of the caves in the mountains, the mason Marine took refuge from the persecution of the feudal lords, and created a community here.
The republic's only neighbor is Italy. And although San Marino is politically independent, in the economic field it is closely linked to Italy. The country does not even have its own money - it is replaced by the Italian lira. Residents of this country cultivate gardens and vineyards, grow wheat and corn, and raise livestock. The main sectors of the economy are industry, agriculture, foreign tourism, the production of souvenirs and the production of postage stamps. In addition to its own small industrial enterprises that produce building materials, ceramics and knitwear, branches of some Italian engineering and other companies are located in San Marino. The main type of transport is automobile.
In addition to these four small states, there is another small state in Europe - the Grand Duchy of Luxembourg. Area - about 2.6 km2. Strong neighbors - France, Germany - tried many times to seize the state, but it was the struggle between them that allowed the small heroic people to defend their independence. And yet, large capitalists from neighboring countries - Belgium and France - play a large role in the country.
Luxembourg is a highly developed industrial country. The basis of the economy is a modern large metallurgical industry, since the duchy crosses paths from the Ruhr to Lorraine (these are the largest coal mining areas in Europe). Livestock farming, vegetable growing, and viticulture are developed.
Luxembourg's distinctive nature - fast rivers, wide valleys, lush forests - and ancient monuments attract many tourists.
The official languages ​​are German and French, but at home and in the family they prefer their own language, Luxembourgish.
Vatican - area - 0.44 km2, population - about 1,000 people. Read the story about the Vatican in the Vatican section.

Whatever they are called - “state within a state”, tiny countries, relics of the past, dwarfs of Europe... The past century, despite its fatality, not only kept these toy states “alive”, but also chose them as an oasis for the soul .

18:02 15.03.2013

After all, in San Marino, glorified and “poeticized” by the genius Frederico Fellini, and in watercolor-tender Luxembourg, where you can smell flowers all year round, not to mention the radiance of Monaco and Liechtenstein, you can taste all the sweets of life.

Contrary to popular belief, not only aristocrats and crown princes come here, but also ordinary people, regardless of the contents of their wallet. Because in this corner of Europe, called its brilliant façade like nowhere else, the days are dazzling and the nights intriguing.

Monaco - the image of happiness

At the junction of the French Cote d'Azur and the Italian Riviera stretches 150 hectares of the smallest monarchy in the world - the Principality of Monaco. The legendary casino city, the capital of the world elite and... a tax paradise. After the Vatican, this is the second small state, which has no equal in terms of attendance by tourists of all categories, regardless of the time of year! And if the first is heard by everyone as a stronghold of holiness and the Catholic faith, then the second is its complete antipode, deserving the unconditional prefix “mega”. Because in the Principality of Monaco, the best of the Côte d'Azur resorts, everything is grandiose: luxury, comfort and prices.

Here champagne flows like a river, unimaginable deals are made, old grievances and troubles dissolve, depression and extra pounds evaporate like smoke, and mind-blowing romances are spun. And celebrities from all over Europe and titled persons, rich loafers and snobs who want to join the lifestyle that is called the “discreet charm of the bourgeoisie”, and simply people with a high level of adrenaline in the blood, who love excitement and risk, come here to Monte Carlo . Some are in pursuit of easy money, others are eager to experience the favor of His Majesty Chance.

Curiously, local residents are strictly prohibited from playing roulette. And at the same time, all 32 thousand Monegasques (that’s what the indigenous population of Monaco is called), led by Prince Rainier II, rightfully consider the famous casino their contribution to world civilization. And it’s hard to disagree with this.

The Principality of Monaco has been living happily and carelessly for almost half a century, receiving taxes from the gambling house of Europe, and its main shareholder is, by the way, the Vatican. What a paradox!

Liechtenstein - post office

Residents of another tiny principality of Liechtenstein are simply swelling with pride. Still would! All around are such respectable neighbors - Austria on the right, Switzerland on the left, and their little charming country between them. From a bird's eye view, toy Liechtenstein is completely dotted with bright houses and resembles a beautiful postage stamp. And, by the way, it is by no means a random associative image, but an official source of state income and the calling card of the Principality of Liechtenstein, famous throughout the world for its unique brands. Several years ago, the postal department of this country issued a stamp, interesting for philatelic collectors, with a portrait of the Russian commander Alexander Suvorov - he liberated Liechtenstein from Napoleonic troops.

Being a remnant of the Roman Empire, Liechtenstein rose to the rank of a principality back in 1719. And it has been thriving ever since. And all because here, as in Monaco, for many it is a tax oasis. The Liechtensteiners themselves never tire of repeating “good for the world is good for us.”

If you consider yourself one of the business people who, even when traveling, are accustomed to combining business with pleasure, then while walking along the quiet streets of Vaduz, the capital of Liechtenstein, stop for a short time at the front entrance of the state bank - perhaps you will have a rare opportunity to greet His Majesty Prince Hans Adam II . After all, in addition to his royal affairs, he is also the chief banker.

Luxembourg - a fairy tale city

You will discover another proud minority for yourself by becoming a guest of the Grand Duchy of Luxembourg for a while. The landscape here is very similar to its neighboring Belgium: the same private roads of ideal quality, densely lined with trees, changing hilly landscapes, the same fields like patchwork quilts, the same picturesque neat villages, neat towns and romantic castles. Only Luxembourgians, unlike the Belgians, communicate with visiting tourists in German and French, and among themselves in the local dialect. To the unaccustomed ear, this unfamiliar language sounds like German pronounced in the French manner.

The capital of the Grand Duchy is the beautiful quiet city of Luxembourg. In fact, the long history of this small state is connected with it. And it is presented in a very homely way. Here, for example, is the North Dame Cathedral, a majestic temple of the 17th century. On the sightseeing tour they will tell you that there is an image of Our Lady, the patroness of Luxembourg, especially revered by Luxembourgians - (comforter of the sorrowful) here in the crypt, the tomb of the Grand Dukes, their peace is guarded by two bronze lions.

And here is the luxurious Palace of the Rulers of the Grand Duchy of Luxembourg, built, according to the date stamped on the portal in 1572.

When you get to know each other closely, Luxembrug literally bewitches you - you don’t think about anything else while you’re here, while you see the fairy-tale city on the rocks and walk along its ancient pavements. In the center, the winding roads often lead to a dead end or end in steep steps, and since there are practically no cars and not crowded at all, at some point the feeling of the city disappears. Only the aromas of antiquity and countless sweet fountains are visibly present. Be sure to throw a coin for luck - in the land of the Grand Duchy of Luxembourg, everything comes true.

San Marino - swallow's nest

Now meet the inhabitants of the “swallow’s nests” clinging to the steep ledges of the Apennine Mountains. Unlike all other residents of sunny Italy, practical and far-sighted San Marinos found themselves in the most advantageous position. The independence of their tiny country is reliably protected not only by the freedom-loving spirit of its inhabitants, but also by powerful, impregnable defensive structures.

After all, the unique Republic of San Marino is located along the edges of Mount Titano, hidden behind the fortress walls of three citadels - Guaita, Cesta and Montale, interconnected by walls. However, the city of San Marino itself is not only surrounded by fortress walls, they intertwine it like tree roots. The houses are stuck to these walls and the walls themselves seem to be stuck to the rocks. Fortresses growing out of the rocks are the main attraction of San Marino, and walking is reminiscent of a lighter version of mountaineering, because it is impossible to simply walk around a city rooted to the rock. You have to either climb up or go down. And there are no streets as such - they always strive to turn into stairs. And what looks like a miniature courtyard, upon closer acquaintance, turns out to be a terrace covered with flowers or a balcony.

However, a walk around San Marino, the oldest independent mini-state, founded according to legend back in 305 AD. a pleasant and unforgettable adventure that you don’t want to interrupt. And yet, tourists from Europe, accustomed to other scales, should be especially careful: this tiny state seems too fragile, so as not to accidentally damage this toy beauty!

The Grand Duchy of Luxembourg, despite its miniature size, does not belong to the dwarf states of which six countries are officially considered in Europe (namely: Andorra, Liechtenstein, Malta, Monaco, San Marino and the Vatican). Luxembourg is just a small country with a population of about half a million people (less than, for example, in Irkutsk). Despite this, and in many cases even because of this, Luxembourg has earned the prefix “the only one in the world”, “the best” or “one of the best” in various fields.

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Grand Duchy of Luxembourg

Today, Luxembourg is the only, or better yet, the last Grand Duchy in the world. That is, the head of the state is the Grand Duke. Now this is His Royal Highness Henri Albert Gabriel Felix Marie Guillaume, or simply Henry I, whose ancestral house was the Bourbons. In ancient times, the duke was a tribal prince, the owner of large territories and ranked second after the king in the military hierarchy.

Luxembourg is one of the oldest states in the world. and the military fortifications, located on steep cliffs in the valley of the Alzette River, formerly called "Lucilinburhuc", were practically impregnable and lasted until the mid-nineteenth century. The name “Luxembourg” comes from the name of these fortifications.

Over its history, surrounded by “giant states,” Luxembourg has seen a lot. It constantly passed from one owner to another, was under siege more than 20 times, was completely destroyed and restored again. Only in the second half of the 19th century was it recognized as an independent state.

Another historical fact: Luxembourg ranks second after the number of deaths in the Second World War in percentage terms. The country lost about 10% of its total population.

Luxembourg has one of the highest proportions of immigrants in Europe, around a third of the population.

Three languages ​​are spoken here: Luxembourgish, French and German.

That’s probably all there is to the basic information about the Grand Duchy. I hope the overall impression is clear. Now for some photos.

The most amazing thing about Luxembourg is the views of the city from the hills, bridges and fortifications. I don’t know what the city looks like in winter, but in summer and autumn it is very beautiful here.

Luxembourgers themselves consider their main city and country as a whole to be the greenest in Western Europe. It's hard to disagree.

By the way, there are about a hundred bridges in the capital of the Grand Duchy.

This is such a wonderful city.

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Andorra

Andorra has been in a customs union with the EU since 1991, although it is not an EU customs territory for agricultural production. Andorra maintains customs control while remaining outside the Schengen area.

However, citizens with a Schengen visa can usually easily enter its territory.

Andorra is the only dwarf state that uses the euro as currency without a formal agreement with the EU. This happened due to the fact that before the introduction of the euro, Andorra did not have its own currency, but used the franc and the peso.

Liechtenstein

Liechtenstein is the only dwarf country that is part of the European Economic Area (since May 1, 1995), thus being part of the EU single market with partial application of EU laws. Liechtenstein does not have diplomatic ties with one of the EU member states - Slovakia.

Monaco

Monaco is currently already applying some of the EU's political principles through a special relationship with EU member state France. Monaco is a full member of the European Customs Union and VAT area, applying most of the EU principles regarding VAT and excise duties. Monaco is a de facto member of the Schengen area and the Eurozone.

San Marino

San Marino has an open border and a customs union with the EU. San Marino also uses the euro and is allowed to mint its own coins.

Vatican

The Vatican is the smallest state in the world by territory. As a theocratic monarchy, it cannot join the EU, although it is the “heart” of Rome, the capital of member country Italy. The Vatican has open borders with Italy and plans to enter the Schengen information system.