Monaco hit by the crisis

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. Albert II has stressed that all the necessary safeguards-provided financial as environmental-were not currently exist to make a decision "responsible". "The international crisis forces us to ask for more funding guarantees, more security.