# Monaco - United States Department of State

- Monaco HomeReportsBureau of Democracy, Human Rights, and Labor2023 Country Reports on Human Rights Practices&#8230;Monaco				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Country Reports on Human Rights Practices: Monaco																																					Bureau of Democracy, Human Rights, and Labor																																																																																							Download Report																																																							Translations																																																																 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															Section 1. Respect for the Integrity of the Person																																																									a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																																											b. Disappearance																																																																											c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																																			Prison and Detention Center Conditions																																																																																																																		d. Arbitrary Arrest or Detention																																																																			Arrest Procedures and Treatment of Detainees																																																																																																																		e. Denial of Fair Public Trial																																																																			Trial Procedures																																																								Political Prisoners and Detainees																																																																																																																		f. Transnational Repression																																																																											g. Property Seizure and Restitution																																																																											h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																																																	Section 2. Respect for Civil Liberties																																																									a. Freedom of Expression, Including for Members of the Press and Other Media																																																																			Internet Freedom																																																																																																																		b. Freedoms of Peaceful Assembly and Association																																																																											c. Freedom of Religion																																																																											d. Freedom of Movement and the Right to Leave the Country																																																																											e. Protection of Refugees																																																																																	Section 3. Freedom to Participate in the Political Process																																																									Elections and Political Participation																																																																																	Section 4. Corruption in Government																															Section 5. Governmental Posture Toward International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																															Section 6. Discrimination and Societal Abuses																																																									Women																																																																											Systemic Racial or Ethnic Violence and Discrimination																																																																											Children																																																																											Antisemitism																																																																											Trafficking in Persons																																																																											Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																																											Persons with Disabilities																																																																																	Section 7. Worker Rights																																																									a. Freedom of Association and the Right to Collective Bargaining																																																																											b. Prohibition of Forced or Compulsory Labor																																																																											c. Prohibition of Child Labor and Minimum Age for Employment																																																																											d. Discrimination (see section 6)																																																																											e. Acceptable Conditions of Work																																																																																																							EXECUTIVE SUMMARY				There were no significant changes in the human rights situation in Monaco during the year.Significant human rights issues included the enforcement of laws criminalizing libel and offending the Prince.  Authorities did not charge anyone with violating these statutes during the year.The government had mechanisms in place to identify and punish officials who may commit human rights abuses.																														Section 1.													 Respect for the Integrity of the Person												    																																																a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings										There were no reports that the government or its agents committed arbitrary or unlawful killings, including extrajudicial killings.																																				b. Disappearance										There were no reports of disappearances by or on behalf of government authorities.																																				c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses										The constitution and law prohibited such practices, and there were no reports that government officials employed them.  Impunity was not a significant problem in the security forces.																Prison and Detention Center Conditions						There were no significant reports regarding prison or detention center conditions that raised human rights concerns.Administration:  Authorities conducted investigations of credible allegations of mistreatment.Independent Monitoring:  The government permitted monitoring by independent nongovernmental observers such as regularly scheduled visits by the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment.																										d. Arbitrary Arrest or Detention										The constitution and law prohibited arbitrary arrest and detention and provided for the right of any person to challenge the lawfulness of their arrest or detention in court.  The government generally observed these requirements.																Arrest Procedures and Treatment of Detainees						An arrest warrant was required.  A detainee was required to appear before an investigating magistrate within 24 hours of arrest to be informed of the charges and the detainee’s rights under the law, and authorities generally respected this requirement.  There was a functioning bail system.  Authorities released most detainees without bail, but the investigating magistrate could order detention on grounds that the suspect might flee or interfere with the investigation of the case.  Detainees generally had prompt access to a lawyer, and the government provided one to indigent defendants.  There were no reported cases of arbitrary or unlawful detention.																										e. Denial of Fair Public Trial										The constitution and law provided for an independent judiciary, and the government generally respected judicial independence and impartiality.																Trial Procedures						The law provided for the right to a fair trial, and an independent judiciary generally enforced this right.  Except for cases involving children, trials were conducted in public, usually before a judge or tribunal of judges.						Political Prisoners and Detainees						There were no reports of political prisoners or detainees.																										f. Transnational Repression										Not applicable.																																				g. Property Seizure and Restitution										Not applicable.																																				h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence										The constitution and law prohibited such actions, and there were no reports the government failed to respect these prohibitions.																																					Section 2.													 Respect for Civil Liberties												    																																																a. Freedom of Expression, Including for Members of the Press and Other Media										The constitution and law provided for freedom of expression, including for members of the press and other media, and the government generally respected this right.  An independent press and an effective judiciary contributed to freedom of expression.Freedom of Expression:  Although rarely enforced, the law prohibited offending the Prince and provided for punishment of from six months to five years in prison per offense.  If not committed publicly, the act could be punished with imprisonment from six months to three years.  The law also prohibited offending the family of the Prince and provided for punishment of from six months to three years in prison.  If not committed publicly, the act was punishable with imprisonment from three months to one year.  Authorities did not charge anyone with violating these statutes during the year.Libel/Slander Laws:  The law prohibited defamation or insult, particularly against citizens responsible for a public service or office, and it provided for imprisonment of up to two years depending on the severity of the case.  There were no libel cases during the year.																Internet Freedom						The government did not restrict or disrupt access to the internet or censor online content without appropriate legal authority.																										b. Freedoms of Peaceful Assembly and Association										The constitution and law provided for the freedoms of peaceful assembly and association, and the government generally respected these rights.																																				c. Freedom of Religion										See the Department of State’s International Religious Freedom Report at  https://www.state.gov/religiousfreedomreport/. &nbsp;																																				d. Freedom of Movement and the Right to Leave the Country										The law provided for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights.																																				e. Protection of Refugees										Access to Asylum:  The law did not provide for the granting of asylum or refugee status, and the government had not established a system for providing protection to refugees.  Monaco was not normally a refugee-receiving country, and France handled immigration matters.  Nonetheless, due to the war in Ukraine, Monaco resettled approximately 1,000 displaced Ukrainians by July.																																					Section 3.													 Freedom to Participate in the Political Process												    																						The authority to change the government and to initiate legislation rested solely with the Prince.  The constitution could be revised by common agreement between the Prince and the elected National Council.  The constitution and law provided citizens the ability to choose the National Council in free and fair periodic elections held by secret ballot and based on universal and equal suffrage.																										Elections and Political Participation										Abuses or Irregularities in Recent Elections:  Observers considered the February national elections to be free and fair, although marked by little political competition and no parliamentary debate.Communal elections held in March were also marked by a lack of political pluralism, with the incumbent mayor of Monaco running unopposed and being reelected to a sixth consecutive term.																																					Section 4.													 Corruption in Government												    																						The law provided criminal penalties for corruption by officials, and the government generally implemented these laws effectively.Corruption:  Following the recommendations of the Council of Europe’s Second Compliance Group of States against Corruption (GRECO) Report, published in 2022, in July the country adopted an asset and interest disclosure regime, as well as a gift reporting rule, for the members of the executive power.  The government also established an independent ethics committee, including an ethics advisor to confidentially advise members of the executive.In March, GRECO cited improvements in the transparency of the legislative process but noted that no new steps had been taken to make public parliamentarians’ declarations of financial and economic interests.  GRECO also stressed the lack of transparency in the appointment process of members of the judiciary, given the absence of specific rules on conflicts of interest.Moneyval, the Council of Europe’s Committee of Experts on the Evaluation of anti-Money Laundering Measures and the Funding of Terrorism, released a report in January citing deficiencies in the country’s anti-money laundering and terrorism financing measures.  The government expressed full support for Moneyval’s recommendations and took steps to address the issues.  For additional information about corruption in the country, please see the Department of State’s Investment Climate Statement, and the Department of State’s International Narcotics Strategy Control Report which includes information on financial crimes.																											Section 5.													 Governmental Posture Toward International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights												    																						While the government did not restrict the establishment or operation of groups devoted to monitoring human rights, none existed in the country.  International human rights organizations generally operated without government restriction.  In general, government officials were responsive to the views of international organizations.Government Human Rights Bodies:  The government’s mediation service was available to residents seeking redress against administrative decisions.  The Office of the High Commissioner for the Protection of the Rights and Freedoms and Mediation protected human rights and fought discrimination.  While the office acted independently, had adequate resources, and was considered effective, the government did not allow the high commissioner to initiate investigations on her own.																											Section 6.													 Discrimination and Societal Abuses												    																																																Women										Rape and Domestic Violence:  Rape, including spousal rape, was a criminal offense with penalties of five to 20 years in prison, depending on the type of offense.  The law prohibited domestic violence, and survivors could bring criminal charges against abusive spouses.  Domestic violence that led to significant injury carried a potential sentence of 10 to 20 years in prison.  The government enforced the law effectively.Discrimination:  The law provided the same legal status and rights for women as for men, and those laws were generally respected.Reproductive Rights:  There were no reports of coerced abortion or involuntary sterilization on the part of government authorities.Women could access abortion in the country when pregnancy endangered the mother’s life or health, and in cases of fetal deformity and rape.  Health professionals were liable to fines, prison, and losing their medical license if they performed unauthorized abortions in the country but were allowed to counsel and refer women to foreign services.  No cases of unauthorized abortions were reported during the year.  Through the Victims of Criminal Offences Help Association program, the government provided access to sexual and reproductive health services for survivors of sexual violence.  Emergency contraception and post exposure prophylaxis were available as part of the clinical management of rape.																																				Systemic Racial or Ethnic Violence and Discrimination										The law did not clearly define discrimination, but it did prohibit any defamation, call to violence, or public expression of hate against anyone based upon gender, real or presumed race or ethnic origin, disability, sexual orientation, or religion.  Penalties for violations could include fines or up to six months in prison; violations could also be aggravating factors that lead to harsher sentences for other related crimes.  Authorities enforced the law effectively.The law stated that no distinction could be made between civil servants based on gender, political, philosophical, religious or trade union opinions, sexual orientation, state of health, disability, physical appearance, or ethnicity, although it did require that civil servants be nationals of the country.																																				Children										Child Abuse:  There were laws against child abuse, with punishments ranging from restraining orders to 20 years in prison based on the severity of the case.  The law provided for physical, medical, and legal aid for any child victim.  Authorities enforced the law effectively.Child, Early, and Forced Marriage:  The legal minimum age of marriage in the country was 18 and this was effectively enforced by the government.  Children younger than 18 needed parental authorization to marry.Sexual Exploitation of Children:  The law prohibited the sale, grooming, or use of children for commercial sexual exploitation, including sex trafficking.  Child commercial sexual exploitation and child pornography were illegal, and authorities enforced the law.  The minimum legal age for consensual sex was 15.																																				Antisemitism										According to the European Jewish Congress, the Jewish community numbered approximately 1,000 persons, most of whom were not citizens of the country but foreign residents.  According to the Monaco-based Association Culturelle Israelite, there were no reports of antisemitic acts.																																				Trafficking in Persons										There were no confirmed reports during the year that traffickers exploited domestic or foreign victims in the country or that traffickers exploited victims from abroad.																																				Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics										Criminalization:  Consensual same-sex conduct between adults was not criminalized and seemingly neutral laws were not disproportionately applied to lesbian, gay, bisexual, transgender, queer, or intersex (LGBTQI+) persons.Violence and Harassment:  There were no reports of police or other government agents inciting, condoning, tolerating, or perpetrating violence against LGBTQI+ persons or those reporting such abuses.  There were no known cases of nonstate actor violence targeting LGBTQI+ individuals.Discrimination:  The law provided for fines, imprisonment, or both for persons who provoked hatred or violence against a person or group due to their sexual orientation, real or perceived.  The government enforced these laws.  There were no known instances of discrimination against LGBTQI+ persons with respect to employment, housing, nationality, and access to government services.  The law did not recognize same-sex marriages, including same-sex marriages contracted abroad, or adoption by same-sex couples.  Same-sex civil partnerships were legal.Availability of Legal Gender Recognition:  There was no law on legal gender recognition, creating a case-by-case situation in the courts.  In July 2022, a court allowed for the first time an individual to change gender on their civil status records, after the petitioner had undergone gender reassignment surgery in France and changed their French legal documents.Involuntary or Coercive Medical or Psychological Practices:  There were no known cases of forced or involuntary so-called conversion therapy practiced on adults or children to try to change a person’s sexual orientation or gender identity or expression.  So-called conversion therapy practices were not illegal.  There were no reports of surgeries performed on nonconsenting intersex adults or children.  There were also no reports of efforts by government and medical associations to limit the above practices.Restrictions of Freedom of Expression, Association, or Peaceful Assembly:  There were no known cases of restrictions against freedom of expression, association, or peaceful assembly imposed on LGBTQI+ persons.																																				Persons with Disabilities										The constitution and the law prohibited discrimination against persons with disabilities in education, employment, health services, information, communications, buildings, transportation, the judicial system, and other state services.  The government effectively implemented these laws; there were no known cases of discrimination against persons with disabilities in the aforementioned areas.																																					Section 7.													 Worker Rights												    																																																a. Freedom of Association and the Right to Collective Bargaining										The law provided for the right of workers, including foreign workers, to form and join independent unions, bargain collectively, and conduct legal strikes; government workers did not have the right to strike.  Antiunion discrimination was prohibited.  The law required the majority of members of a trade union’s bureau to be citizens of Monaco or France.  Union representatives could be fired only with the agreement of a commission that included two members from the employers’ association and two from the labor movement.  The government and employers generally respected freedom of association and the right to bargain collectively, and employer organizations and trade unions negotiated agreements on working conditions that were largely respected.The government generally enforced the law.  Penalties were commensurate with those for other laws involving denials of civil rights.  Penalties were regularly applied against violators.  The government provided the assistance of mediators for private or professional conflicts to avoid long and costly court procedures and to find a solution acceptable to all parties to the dispute.																																				b. Prohibition of Forced or Compulsory Labor										See the Department of State’s annual Trafficking in Persons Report at:  https://www.state.gov/trafficking-in-persons-report/ 																																				c. Prohibition of Child Labor and Minimum Age for Employment										The law prohibited the worst forms of child labor.  The minimum age for employment was 16.  Employment opportunities for individuals between the ages of 16 and 18 were severely restricted:  individuals younger than 18 were allowed to work eight hours per day to a maximum of 39 hours per week and were barred from night work.  The government enforced the law effectively.  Penalties were commensurate with those for similar crimes.  There were no confirmed reports during the year of the worst forms of child labor.																																				d. Discrimination (see section 6)																																														e. Acceptable Conditions of Work										Wage and Hour Laws:  There was a minimum wage, which exceeded the official estimate of the poverty level.  The law provided for a standard workweek of 39 hours and restricted overtime to 48 hours per week unless a special exemption was granted.Infractions of wage, hour, and overtime laws as well as social security benefits linked to undeclared work were most common in the construction and restaurant industries.Occupational Safety and Health:  The laws and government decree establishing occupational safety and health (OSH) standards were appropriate for the main industries of the country.  The same inspectors that covered wage and hour laws were responsible for enforcing occupational safety and health laws.  The labor inspectors proactively investigated the sectors prone to unsafe conditions of work.The law did not provide for the right of workers to remove themselves from situations that endanger health or safety.  There were no official statistics regarding specific sectors prone to violations of OSH standards.Wage, Hour, and OSH Enforcement:  Workplace health and safety committees and government labor inspectors effectively enforced the minimum wage, overtime, and OSH laws.  Penalties were commensurate with those for similar violations, and inspection was sufficient to enforce compliance.  Penalties were regularly applied against violators.The Department of Employment in the Ministry of Health and Social Affairs was responsible for enforcing wage and hour laws.  The inspectorate had an adequate number of labor inspectors.  The chief inspector answered directly to the director of the Department of Employment.  Labor inspectors informed employers and employees on all matters related to labor laws and arbitrated, mediated, and reconciled labor/management disputes.  They carried out regular on-site inspections, including unannounced visits, to ensure employers respected all requirements of the law.Data were not available on enforcement of occupational safety and health standards in the small informal economy.																																				    							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Respect for the Integrity of the Person																																							a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																						b. Disappearance																																																						c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																				Prison and Detention Center Conditions																																																																																				d. Arbitrary Arrest or Detention																																																				Arrest Procedures and Treatment of Detainees																																																																																				e. Denial of Fair Public Trial																																																				Trial Procedures																																												Political Prisoners and Detainees																																																																																				f. Transnational Repression																																																						g. Property Seizure and Restitution																																																						h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																			Section 2. Respect for Civil Liberties																																							a. Freedom of Expression, Including for Members of the Press and Other Media																																																				Internet Freedom																																																																																				b. Freedoms of Peaceful Assembly and Association																																																						c. Freedom of Religion																																																						d. Freedom of Movement and the Right to Leave the Country																																																						e. Protection of Refugees																																																			Section 3. Freedom to Participate in the Political Process																																							Elections and Political Participation																																																			Section 4. Corruption in Government																Section 5. Governmental Posture Toward International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																Section 6. Discrimination and Societal Abuses																																							Women																																																						Systemic Racial or Ethnic Violence and Discrimination																																																						Children																																																						Antisemitism																																																						Trafficking in Persons																																																						Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																						Persons with Disabilities																																																			Section 7. Worker Rights																																							a. Freedom of Association and the Right to Collective Bargaining																																																						b. Prohibition of Forced or Compulsory Labor																																																						c. Prohibition of Child Labor and Minimum Age for Employment																																																						d. Discrimination (see section 6)																																																						e. Acceptable Conditions of Work																																																									Tags																					Bureau of Democracy, Human Rights, and Labor																								Bureau of European and Eurasian Affairs																								Monaco
- Monaco National Day HomeThe Secretary of State Remarks &amp; Releases&#8230;Monaco National Day				hide		if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}																										Monaco National Day																																		Press Statement																														November 19, 2023																																							On behalf of the United States of America, I congratulate the government and people of Monaco on Sovereign Prince’s Day.For more than 150 years, Monaco has been a friend and trusted partner of the United States.&nbsp; Our governments collaborate on promoting human rights, liberty, and especially on addressing the climate crisis and its impact on ocean ecosystems, where H.S.H. Prince Albert II is a leading voice.&nbsp; I applaud His Serene Highness’ commitment to protecting the planet for future generations.&nbsp;&nbsp;I look forward to further strengthening this close friendship as we work together to advance our core values.&nbsp; The United States sends warm wishes to the people of Monaco for a joyous, peaceful, and prosperous year ahead.&nbsp;						Tags																					Bureau of European and Eurasian Affairs																																														Climate and Environment																																																					Human Rights and Democracy																															Monaco																								Office of the Spokesperson																								The Secretary of State
- France and Monaco HomeReportsBureau of Economic and Business Affairs2023 Investment Climate Statements&#8230;France and Monaco				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Investment Climate Statements: France and Monaco																																																																																												 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															1. Openness To, and Restrictions Upon, Foreign Investment																																																									Policies Towards Foreign Direct Investment																																																																											Limits on Foreign Control and Right to Private Ownership and Establishment																																																																											Other Investment Policy Reviews																																																																											Business Facilitation																																																																											Outward Investment																																																																																	2. Bilateral Investment and Taxation Treaties																															3. Legal Regime																																																									Transparency of the Regulatory System																																																																											International Regulatory Considerations																																																																											Legal System and Judicial Independence																																																																											Laws and Regulations on Foreign Direct Investment																																																																											Competition and Antitrust Laws																																																																											Expropriation and Compensation																																																																											Dispute Settlement																																																																			ICSID Convention and New York Convention																																																								Investor-State Dispute Settlement																																																								International Commercial Arbitration and Foreign Courts																																																																																																																		Bankruptcy Regulations																																																																																	4. Industrial Policies																																																									Investment Incentives																																																																											Foreign Trade Zones/Free Ports/Trade Facilitation																																																																											Performance and Data Localization Requirements																																																																																	5. Protection of Property Rights																																																									Real Property																																																																											Intellectual Property Rights																																																																																	6. Financial Sector																																																									Capital Markets and Portfolio Investment																																																																											Money and Banking System																																																																											Foreign Exchange and Remittances																																																																			Foreign Exchange																																																								Remittance Policies																																																																																																																		Sovereign Wealth Funds																																																																																	7. State-Owned Enterprises																																																									Privatization Program																																																																																	8. Responsible Business Conduct																																																									Additional Resources																																																																											Climate Issues																																																																																	9. Corruption																																																									Resources to Report Corruption																																																																																	10. Political and Security Environment																															11. Labor Policies and Practices																															12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs																															13. Foreign Direct Investment Statistics																															14. Contact for More Information																															Special Section on Monaco																																																									Investment Regime of Monaco																																																																											Size of the Economy of Monaco																																																																																																							EXECUTIVE SUMMARY				France enthusiastically welcomes foreign investment and has a stable business climate that attracts investors from around the world.  The French government devotes significant resources to attracting investment through policy incentives, marketing, overseas trade promotion offices, and investor support mechanisms.  France has an educated population, first-rate universities, and a talented workforce.  It has a modern business culture, sophisticated financial markets, a strong intellectual property rights regime, and an innovative commercial sector.  The country is known for its world-class infrastructure, including high-speed passenger rail, many maritime ports, extensive roadway networks, a dense network of public transportation, and efficient intermodal connections. High-speed (3G/4G) telephony is nearly ubiquitous, and 5G is now available in large and many mid-sized metropolitan cities.According to Business France, the French government’s business promotion agency, foreign investment in France increased by 7 percent in 2022 in comparison with the previous year. Foreign investors concluded 1,725 transactions in France, resulting in 58,810 jobs being created or maintained. Among them, the United States was the leading foreign investor in France with investment in 280 new projects creating or sustaining 17,107 jobs. The United States also accounts for 15 percent of the 155 research and development (R&amp;D) and engineering projects led by foreign investors in France. U.S. companies based in France continue to view France favorably despite a challenging overall global economic environment. Many of France&#8217;s historical challenges for foreign investors, such as overall labor costs and labor protections, social legislation, and the complexity of administrative procedures persist, but France&#8217;s capacity for innovation and research, recent pro-business regulations, and the government&#8217;s ecological transition efforts are significant draws.France is among the least restrictive countries for foreign investment. There are no statutory limits on foreign ownership of companies, excluding those in certain specified sectors. Any acquisition of a domiciled company or subsidiary operating in sectors deemed critical to France’s national interests relating to public order, public security, and national defense, or conducting R&amp;D on critical or dual-use technology for application in those sectors, are subject to prior notification, review, and approval by the Minister of the Economy, Finance, and Industrial and Digital Sovereignty. In the wake of the Covid-19 health crisis, France’s investment screening body lowered the threshold for its review of foreign acquisitions in these sectors from a 25 percent ownership stake to a 10 percent stake. This review pertains to potential investors from outside the European Union or European Economic Area who are seeking investments in French companies whose shares are listed on a regulated market. This temporary provision is set to expire at the end of 2023.Since French President Emmanuel Macron&#8217;s first election in 2017, the government has pursued a business-friendly agenda making the labor market more flexible, cutting corporate tax rates from 33.3 percent to 25 percent in 2022, and pledging to abolish the contribution on added value (CVAE) tax. But President Macron&#8217;s agenda has faced obstacles, including widespread protests in 2018 and 2019 against economic inequality, the COVID-19 pandemic and resulting economic downturn in 2020, the economic fallout from Russia’s invasion of Ukraine, persistent inflation, and vocal opposition in 2023 to pension reform that would raise the legal retirement age from 62 to 64.Despite these challenges, the Macron administration has implemented new economic policies and financing to support business growth and innovation. The 2019 “PACTE” law on business growth and transformation, the “France Relaunch” COVID-19 recovery program, and the France 2030 investment plan have all been programs to simplify corporate formation and encourage investment in underdeveloped sectors. These programs also focus on France’s green transition and support the transformation of France&#8217;s automotive, aerospace, digital, green industry, biotechnology, culture, health, and advanced technology sectors. France’s March 2022 Resilience Plan to mitigate the economic impact of the Russian invasion of Ukraine includes grants for energy-intensive companies and an expansion of State-guaranteed lending. These programs have been equally available to firms supported by foreign investment. Aid to companies under the Relaunch program were available to companies until 2022, and investments under the France 2030 and Resilience plans are available through 2026.The Macron administration’s draft pension reform bill was unveiled in January 2023. Following contentious debate in both houses of Parliament and facing uncertainty the bill would ultimately pass in the lower house, the government pushed through its pension reform legislation by decree on March 16 using article 49.3 of the French constitution, bypassing a vote in the lower house. In response, nationwide strikes carried out by labor unions are ongoing as of the drafting of this report (March 2023), and opposition parties in Parliament are expected to contest the pension reform bill at the Constitutional Council. While public opinion polls have shown that most French citizens oppose this pension reform, which raises the age of eligibility, the French government believes changes are necessary to place the national pension system on a firmer financial footing as life expectancy rises and as the ratio of workers to retirees decreases. Opponents dispute the need for urgency.Table 1: Key Metrics and RankingsMeasureYearIndex/RankWebsite AddressTI Corruption Perceptions Index202221 of 180http://www.transparency.org/research/cpi/overviewGlobal Innovation Index202212 of 132https://www.globalinnovationindex.org/analysis-indicatorU.S. FDI in partner country ($M USD, historical stock positions)2021USD 106,167https://apps.bea.gov/international/factsheet/World Bank GNI per capita2021USD 44,160http://data.worldbank.org/indicator/NY.GNP.PCAP.CD																																					1. Openness To, and Restrictions Upon, Foreign Investment						    																																																Policies Towards Foreign Direct Investment										France welcomes foreign investment. In the current economic climate, the French government sees foreign investment as a means to create additional jobs and stimulate growth. Investment regulations are simple, and a range of financial incentives are available to foreign investors. Surveys of U.S. investors in 2022 showed that U.S. companies based in France continue to view France favorably despite a challenging overall global economic environment. France&#8217;s historical weaknesses, such as overall labor costs, layoff procedures, social legislation, and the complexity of administrative procedures, persist, but respondents lauded France&#8217;s capacity for innovation and research and the government&#8217;s ecological transition efforts. In addition, the Macron administration has sought reforms to create a more pro-business environment. Business France, the French government’s business promotion agency, published a report in February 2023 demonstrating that 2022 was France’s most attractive year on record with 1,725 foreign investment decisions, resulting in 58,810 jobs being created or maintained. This represented a 7 percent increase of investment projects in comparison with 2021. The United States was the top investing country, in terms of both number of projects and job creation. To promote France’s economic attractiveness, President Macron has hosted the annual Choose France Summit since 2018, which brings together French government officials and leaders from large multinational corporations to discuss the economic reforms implemented by the French government and make major foreign investment announcements.																																				Limits on Foreign Control and Right to Private Ownership and Establishment										France is among the least restrictive countries for foreign investment. With a few exceptions in certain specified sectors, there are no statutory limits on foreign ownership of companies. Foreign entities have the right to establish and own business enterprises and engage in all forms of remunerative activity.France maintains a national security review mechanism to screen high-risk investments. French law stipulates that acquisitions of domiciled companies or subsidiaries operating in certain sectors deemed crucial to France’s national interests relating to public order, public security and national defense are subject to prior notification, review, and approval by the Minister of the Economy, Finance, and Industrial and Digital Sovereignty. This review considers factors relating to the level of foreign investor involvement, the nature of the transaction, the degree of resulting control over the target entity, and the sensitivity of the target entity’s activities. Transaction review is required when an investor: (i) acquires control of a French legal entity, (ii) acquires all or part of a business line from a French legal entity, or (iii) crosses the 25 percent threshold of voting rights in a French legal entity. However, this threshold was temporarily lowered to 10 percent for investors from outside the European Union or European Economic Area pursing French companies whose shares are listed on a regulated market until the end of 2023.The specific, sensitive sectors subject to the screening mechanism and that require approval are: energy infrastructure; transportation networks; public water supplies; electronic communication networks; public health protection; and installations vital to national security. In 2018, four additional categories – semiconductors, data storage, artificial intelligence, and robotics – were added to the list requiring a national security review. France further expanded the scope of sensitive sectors in April 2020 to include biotechnology companies.France also enhanced government-imposed conditions and penalties in cases of non-compliance and introduced a mechanism to coordinate the national security review of foreign direct investments with the European Union (EU Regulation 2019/452). The new European rules entered into force on October 11, 2020. The list of strategic sectors was expanded at that time to include the following activities listed in the EU Regulation 2019/452: agricultural products, when such products contribute to national food supply security; the editing, printing, or distribution of press publications related to politics or general matters; and R&amp;D activities relating to quantum technologies and energy storage technologies.Procedurally, the Directorate General of the Treasury (within the Ministry of the Economy, Finance, and Industrial and Digital Sovereignty) has 30 business days following the receipt of a request for authorization to: 1) declare that the investor is not required to obtain such authorization; 2) grant its authorization without conditions; or 3) declare that an additional review is required to determine whether a conditional authorization is sufficient to protect national interests. If an additional review is required, the Minister has an additional 45 business days to either approve the transaction (possibly subject to conditions) or prohibit it. The Minister is further allowed to deny clearance based on the investor’s ties with a foreign government or public authority. The absence of a decision within the applicable timeframe is a de facto rejection of the authorization.The government also expanded the breadth of information required in an approval request. For example, a foreign investor must now disclose any financial relationship with or significant financial support from a State or public entity; provide a list of French and foreign competitors of the investor and of the target; and sign a statement declaring that the investor has not, over the past five years, been subject to any sanctions for non-compliance with French foreign direct investment (FDI) regulations.																																				Other Investment Policy Reviews										France has not recently been the subject of international organizations’ investment policy reviews. The organization for Economic Co-Operation and Development (OECD) Economic Survey for France (November 2021) can be found here:  https://www.oecd.org/economy/france-economic-snapshot/ .																																				Business Facilitation										Business France is a French government agency that promotes new foreign investment, expansion, technology partnerships, and financial investment in France. Business France provides services to help investors understand regulatory, tax, and employment policies as well as national and local investment incentives and government support programs. Business France also helps companies locate project financing and equity capital. The agency unveiled a website in English to help prospective businesses that are considering investments in the French market ( https://www.businessfrance.fr/en/invest-in-France ).   U.S. Embassy Paris collaborated with Business France and the American Chamber of Commerce (AmCham France) to generate statistics and create a map of U.S. investment in each region of France in 2021 ( https://investinfrance.fr/wp-content/uploads/2017/08/Entreprises-americaines.pdf). In addition, France’s public investment bank, BPI France, assists foreign businesses in identifying local investors when setting up subsidiaries in France. La French Tech also supports foreign startups in France through the government’s French Tech Ticket program, which provides them with funding, a resident’s permit, and incubation facilities. Both business facilitation mechanisms encourage equitable treatment of women and minorities in the workplace.President Macron prioritized innovation early in his first five-year mandate. He launched a €10 billion ($11 billion) fund in 2017 to back disruptive innovation in energy, the digital sector, and the climate transition by privatizing state-owned enterprises and introduced a four-year technology visa for entrepreneurs to come to France. This “French Tech visa” was created to fast-track residency for non-EU founders, investors, and employees. Macron also introduced in 2018 tax reforms that would tax capital gains, interest, and dividends at a flat 30 percent, instead of the prevailing top rate of 45 percent.French authorities allow for advance payment of certain tax incentives for innovation and investment, including tax and social security exemptions for all new businesses that invested in research and development and that are classified as an “innovative startup” or a “university startup.” A research tax credit for “innovative startups” reimburses up to 100 percent of costs spent on fundamental and applied research as well as “experimental research.” A separate innovation tax credit for small and medium sized enterprises was increased from 20 percent of the company’s innovation costs in 2022 to 30 percent in 2023 (60 percent for overseas French departments), up to €400,000 ($431,482) annually. Foreign investors are eligible for these credits.In June 2020, the French government introduced a new €1.2 billion ($1.3 billion) plan to support French startups, concentrating on the health, quantum, artificial intelligence, and cybersecurity sectors. The plan included the creation of a €500 million ($550 million) investment fund to help startups overcome the COVID-19 crisis and continue to innovate. It also comprised a &#8220;French Tech Sovereignty Fund&#8221; launched in December 2020 by France’s public investment bank BPI France, with an initial commitment of €150 million ($165 million).President Macron unveiled the France 2030 Plan in October 2021, a €54 billion ($57.2 billion) innovation investment strategy between 2022 and 2027, which mirrors the priorities of the European Commission’s investments in digital innovation and decarbonization. France will invest by 2030 in breakthrough innovation in a wide variety of areas, including small nuclear fission reactors, green hydrogen production facilities, the production of two million electric and hybrid vehicles every year, research on developing France’s first low-carbon airplane, healthy and sustainable foods, and 20 drugs for cancer and chronic diseases, as well as the development of new medical devices. Major industrial groups are encouraged to work with startups, which will also benefit from funding under this new plan. This plan comes on top of €20 billion ($22 billion) from the 2021 Fourth Future Investment Program (PIA4). A new Secretary General for Investment was appointed in January 2022 to ensure the coordination of these two innovation programs. The Ministry of the Economy, Finance, and Industrial and Digital Sovereignty-led “Competitiveness Clusters,” a label granted to associations from particular geographical regions where companies of different sizes in common sectors gather to support members in the development of products or services, received funding from the PIA4 to support innovation and economic competitiveness.France’s sectors that traditionally attract the most investment include aeronautics, agriculture, digital, clean energy, health, rail, infrastructure, chemicals and materials, forestry, climate and climate tech, shipbuilding, luxury, and extractive industries. However, Business France and BPI France are particularly interested in attracting foreign investment in the tech sector. The French government has developed the “French Tech” initiative to promote France as an optimal location for start-ups and high-growth digital companies. French Tech communities have been established in 32 French cities and over 67 cities globally, including New York, San Francisco, Los Angeles, Shanghai, Hong Kong, Vietnam, Moscow, and Berlin. French Tech has special programs to provide support to startups at various stages of their development. The latest effort has been the creation of the French Tech 120 Program, which provides financial and administrative support to some 122 most promising tech companies. In 2022, French startups raised €13.17 billion ($13.95 billion) in venture funding, a nearly threefold increase since 2020.In March 2021, France launched, with the support of the European Commission and other member states, the Scale-Up Europe initiative, bringing together more than 300 start-up and scale-up founders, investors, researchers, and corporations, with the goal of creating 10 tech giants each valued at more than €100 billion ($110 billion) by 2030. French authorities supported the Scale-up Europe initiative designed to promote businesses across Europe to expand beyond their local and European markets. As part of that initiative, on February 8, 2022, France inaugurated a new European Investment Fund designed to increase European venture capital funds’ capacity to provide late-stage funding to EU-based start-ups and scale-ups. France and Germany have each committed €1 billion ($1.1 billion), along with €500 million ($565 million) from the European Investment Bank. Funding for research and innovation also comes from the EU’s Horizon Europe program, with a budget of €95.5 billion ($103.64 billion) over the 2021-2027 period in the form of grants, issued following competitive calls for projects in health, digital, industry, and space to tackle global challenges.The website Guichet Enterprises ( https://www.guichet-entreprises.fr/fr/)  is designed to be a one-stop website for registering a business. The site, managed by the National Institute of Industrial Property (INPI), is available in both French and English although some fact sheets on regulated industries are only available in French on the website.																																				Outward Investment										French firms invest more in the United States than in any other country and support approximately 740,100 American jobs. Total French investment in the United States reached $325.7 billion in 2021. France was the United States’ tenth largest trading partner with approximately $116.8 billion in bilateral trade in 2021. The business promotion agency Business France also assists French firms with outward investment, which it does not restrict.																																												2. Bilateral Investment and Taxation Treaties						    																						Investments in France by other EU member states are governed by the provisions of the Treaty of Rome and by European Union law. France has Bilateral Investment Treaties (BITs) with 82 countries:  Albania, Algeria, Argentina, Armenia, Azerbaijan, Bahrain, Bangladesh, Bosnia and Herzegovina, Cambodia, Chile, China, Colombia, the Democratic Republic of the Congo, Costa Rica, Cuba, Djibouti, Dominican Republic, Egypt, El Salvador, Equatorial Guinea, Ethiopia, Georgia, Guatemala, Guinea, Haiti, Honduras, Hong Kong, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kenya, South Korea, Kuwait, Kyrgyz Republic, Laos, Lebanon, Liberia, Libya, Madagascar, Malaysia, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique, Namibia, Nepal, Nicaragua, Nigeria, North Macedonia, Oman, Pakistan, Panama, Paraguay, Peru, Philippines, Qatar, Russian Federation, Saudi Arabia, Senegal, Serbia, Seychelles, Singapore, Sri Lanka, Sudan, Tajikistan, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, and Zambia.Bilateral Investment Treaties between France and the following countries have been signed but are not in force:  Angola, Belarus, Brazil, Ghana, and Zimbabwe. France previously had BITs with Mauritius and Syria; new BITs with these two countries have been signed but have not yet entered into force.The United Nations Agency for Trade and Development (UNCTAD) maintains the most current list of ratified and non-ratified BITs, including links to each document:  https://investmentpolicy.unctad.org/international-investment-agreements/countries/72/france .The United States and France have enjoyed a Navigation and Commerce Treaty since 1822, which guarantees national treatment of U.S. citizens.Since 1994, a Convention between the Government of the United States of America and the Government of the French Republic continues to be in force for the avoidance of double taxation and the prevention of fiscal evasion.  France has tax agreements with 128 countries:  Albania, Algeria, Andorra, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, Cameroon, Canada, Central African Republic, Chile, China, Cyprus, Colombia, the Democratic Republic of the Congo, Côte d’Ivoire, Croatia, Czech Republic, Denmark, Ecuador, Egypt, Estonia, Ethiopia, Finland, Gabon, Georgia, Germany, Ghana, Greece, Guinea, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Island, Israel, Italia, Jamaica, Japan, Jordan, Kazakhstan, Kenya, South Korea, Kosovo, Kuwait, Kyrgyz Republic, Latvia, Lebanon, Libya, Lithuania, Luxemburg, Macedonia (FYRM), Madagascar, Malaysia, Malawi, Mali, Malta, Mauritania, Mauritius Island, Mayotte, Mexico, Monaco, Mongolia, Montenegro, Morocco, Namibia, Netherlands, New Zealand, New Caledonia, Niger, Nigeria, Norway, Oman, Pakistan, Panama, Philippines, Poland, French Polynesia, Portugal, Qatar, Quebec, Romania, Russian Federation, Saudi Arabia, Saint-Martin, Saint Pierre and Miquelon, Senegal, Serbia, Singapore, South Africa, Spain, Slovakia, Slovenia, Sri Lanka, Sweden, Switzerland, Syria, Tajikistan, Taiwan, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Venezuela, Vietnam, Zambia, and Zimbabwe.   (Ref:  https://www.impots.gouv.fr/portail/les-conventions-internationales  .)The most recent changes to the taxation regime of concern to U.S. investors is that French corporate tax rate completed its gradual taper down —which began in 2019 — to 25 percent for all companies, regardless of the size of revenues in 2022. France is a member of the OECD/G20 Inclusive Framework on domestic tax base erosion and profit shifting (BEPS), joining the October 2021 Statement on a Two-Pillar Solution to address the tax challenges arising from the digitalization of the economy.																																		3. Legal Regime						    																																																Transparency of the Regulatory System										The French government has generally achieved a high level of transparency and accessibility of its regulatory system.  The government generally engages in industry and public consultation before drafting legislation or rulemaking through a regular but variable process directed by the relevant ministry.  However, the text of draft legislation is not always publicly available before it goes to the Parliament.  U.S. firms may also find it useful to become members of industry associations, which can play an influential role in developing government policies.  Even &#8220;observer&#8221; status can offer insight into new investment opportunities and greater access to government-sponsored projects.To increase transparency in the legislative process, all ministries are required to attach an impact assessment to their draft bills.  The Prime Minister&#8217;s Secretariat General (SGG for Secretariat General du Gouvernement) is responsible for ensuring that impact studies are undertaken in the early stages of the drafting process.  The State Council (Conseil d&#8217;Etat), which must be consulted on all draft laws and regulations, may reject a draft bill if the impact assessment is inadequate.  The consultation of the State Council is the last phase in the preparation of a draft bill. Once completed, the text is examined by the Council of Ministers, becomes a bill, and is then presented to the French Parliament.After experimenting with new online consultations, the Macron Administration has used this mechanism to reach consensus on major reform bills.  These consultations are often open to professionals as well as citizens at large.  Another innovation is to impose regular impact assessments after a bill has been implemented to ensure its maximum efficiency, revising, as necessary, provisions that do not work in favor of those that do.Over past decades, major reforms have extended the investigative and decision-making powers of France&#8217;s Competition Authority.  France implemented the European Competition Network (ECN) Directive in April 2019, which widens the powers of all European national competition authorities to impose larger fines and temporary measures on companies. The Authority publishes its methodology for calculating fines imposed on companies charged with abuse of a dominant position.  It issues specific guidance on competition law compliance, and government ministers, companies, consumer organizations, and trade associations now have the right to petition the authority to investigate anti-competitive practices.  While the Authority alone examines the impact of mergers on competition, the Minister of the Economy, Finance, and Industrial and Digital Sovereignty retains the power to request a new investigation or reverse a merger transaction decision for reasons of industrial development, competitiveness, or saving jobs.  The Competition Authority continues to simplify takeover and merger notifications with online procedures via a dedicated platform launched in 2020 and updated guidelines in English released on January 11, 2021.  Since January 2021, the Competition Authority has a new President, Benoit Cœure, who intends to focus on the impact of the cloud on all sectors of the French economy.France’s budget documents are comprehensive and cover all expenditures of the central government.  An annex to the budget also provides estimates of cost sharing contributions, though these are not included in the budget estimates.  The French government published its first annual “Green Budget,” which measures the impact of state expenditures on the environment, in 2020 as an annex to the 2021 Finance Bill. The 2023 Green Budget contains $35.9 billion (€33.9 billion) in environmentally-favorable spending (excluding the “exceptional impact of the rise in energy prices such as tariff shields and support for renewable energies”), a $4.7 billion (€4.5 billion) increase compared with the 2022 Green Budget, due to a ramp-up of the France 2030 investment plan, clean mobility financing, support for local governments’ ecological transitions, and increased efforts on energy renovation of buildings, and support for clean vehicle acquisition. This practice attests to France’s strong commitment, notably under the OECD-led “Paris Collaborative on Green Budgeting” (which France joined in December 2017), to integrate “green” tools into the budget process.  In its spring report each year, the National Economic Commission outlines the deficits for the two previous years, the current year, and the year ahead, including consolidated figures on taxes, debt, and expenditures.  Since 1999, the budget’s accounts have also included contingent liabilities from government guarantees and pension liabilities.  The government publishes its debt data promptly on the French Treasury&#8217;s website and in other documents.  Data on nonnegotiable debt is available 15 days after the end of the month, and data on negotiable debt is available 35 days after the end of the month.  Annual data on debt guaranteed by the State is published in summary in the CGAF Report and in detail in the Compte de la dette publique.  More information can be found at:  https://www.imf.org/external/np/rosc/fra/fiscal.htm France was the first country to include extra-financial reporting in its 2001 New Economic Regulations Law.  To encourage companies to develop a social responsibility strategy and limit the negative externalities of globalized trade, the law requires French companies with more than 500 employees and annual revenues above $106 million (€100 million) to report on the social and environmental consequences of their activities and include them in their annual management report.  A 2012 decree on corporate social and environmental transparency obligations requires portfolio management companies to incorporate environmental, social, and governance (ESG) criteria in their investment process.  In support of good governance objectives, France’s “Transparency, Anti-corruption, and Economic Modernization Law,” also known as the “Loi Sapin II,” came into effect on June 1, 2017.France’s 2015 Law on Energy Transition for Green Growth strengthened mandatory carbon disclosure requirements for listed companies and introduced carbon reporting for institutional investors.  It requires investors (defined as asset owners and investment managers) to disclose in their annual investor’s report and on their website how they factor ESG criteria and carbon-related considerations into their investment policies.  The regulation concerns all asset classes: listed assets, venture capital, bonds, physical assets, etc.																																				International Regulatory Considerations										France is a founding member of the European Union, created in 1957.  As such, France incorporates EU laws and regulatory norms into its domestic law.  France has been a World Trade Organization (WTO) member since 1995 and a member of the General Agreement on Tariffs and Trade (GATT) since 1948.  While developing new draft regulations, the French government submits a copy to the WTO for review to ensure the prospective legislation is consistent with its WTO obligations.  France ratified the Trade Facilitation Agreement (TFA) in October 2015 and has implemented all of its TFA commitments.																																				Legal System and Judicial Independence										French law is codified into what is sometimes referred to as the Napoleonic Code, but is officially the Code Civil des Français, or French Civil Code.  Private law governs interactions between individuals (e.g., civil, commercial, and employment law) and public law governs the relationship between the government and the people (e.g., criminal, administrative, and constitutional law).France has an administrative court system to challenge decisions by local governments and the national government; the State Council (Conseil d’Etat) is the appellate court.  France enforces foreign legal decisions such as judgments, rulings, and arbitral awards through the procedure of exequatur introduced before the Tribunal de Grande Instance (TGI), which is the court of original jurisdiction in the French legal system.France’s Commercial Tribunal (Tribunal de Commerce or TDC) specializes in commercial litigation.  Magistrates of the commercial tribunals are lay judges, who are well known in the business community and have experience in the sectors they represent.  Decisions by the commercial courts can be appealed before the Court of Appeals. France’s judicial system is procedurally competent, fair, and reliable and is independent of the government.Although members of the French judiciary are State employees it is independent of the executive branch.  The judicial process in France is known to be competent, fair, thorough, and time-consuming.  There is a right of appeal.  The Appellate Court (cour d’appel) re-examines judgments rendered in civil, commercial, employment or criminal law cases.  It re-examines case facts and the legal basis of judgments, checking for errors in due process.  It may either confirm or set aside the judgment of the lower court, in whole or in part. Decisions of the Appellate Court may be appealed to the Court of Cassation (cour de cassation), the highest court in France.The French Financial Prosecution Office (Parquet National Financier, or PNF), specialized in serious economic and financial crimes, was established by a 2013 law and began its activities on February 1, 2014.																																				Laws and Regulations on Foreign Direct Investment										Foreign and domestic private entities have the right to establish and own business enterprises and engage in all sorts of remunerative activities. U.S. investment in France is subject to the provisions of the Convention of Establishment between the United States of America and France, which was signed in 1959 and remains in force. The rights it provides U.S. nationals and companies include: rights equivalent to those of French nationals in all commercial activities (excluding communications, air transportation, water transportation, banking, the exploitation of natural resources, the production of electricity, and professions of a scientific, literary, artistic, and educational nature, as well as certain regulated professions like doctors and lawyers). Treatment equivalent to that of French or third-country nationals is provided with respect to transfer of funds between France and the United States. Property is protected from expropriation except for public purposes; in that case it is accompanied by payment that is just, achievable, and prompt.In addition to the information provided in the section “Limits on Foreign Control and Right to Private Ownership and Establishment” above, France published additional guidelines in September 2022 to improve the transparency and readability of the foreign investment control system. Those guidelines educate the stakeholders on the scope of application of the rules relating to the control of FDI, on the conduct of the control procedure, and on the follow-up of authorizations issued by the Minister of the Economy, Finance, and Industrial and Digital Sovereignty. They can be found on this webpage (in French)  https://www.tresor.economie.gouv.fr/Articles/2022/09/08/publication-des-lignes-directrices-relatives-au-controle-des-investissements-etrangers-en-france .Potential investors can find relevant investment information and links to laws and investment regulations at  http://www.businessfrance.fr /.  They help foreign investors make decisions and offer support throughout their project, calling not only upon Business France investment advisors but also their network of regional partners.																																				Competition and Antitrust Laws										The regulatory authority that reviews transactions and conduct for competition-related concerns is the French Competition Authority (Autorité de la concurrence). EU competition law is also applicable in France, provided the alleged practice may affect trade between member states. Major reforms have extended the investigative and decision-making powers of France&#8217;s Competition Authority. France implemented the European Competition Network, or ECN Directive, on April 11, 2019, allowing the French Competition Authority to impose heftier fines (above $3.3 million / €3 million) and temporary measures to prevent an infringement that may cause harm.The French Competition Authority&#8217;s 2023-2024 roadmap published in March 2023 enumerates its priorities, first of which is the digital sector to which it plans to devote “significant resources.” Specifically, it plans to publish findings of an investigation into competition in cloud services during the first quarter of 2023. In addition, it plans to focus on data questions to complement the EU&#8217;s Digital Markets Act (DMA), which will enter into force on May 2, 2023. The Authority notes, however, &#8220;competition law will apply to operators and practices not covered by the DMA.&#8221; It adds that entry into force of the DMA will enhance its own monitoring powers over digital platforms, by requiring the platforms to inform the European Commission of all acquisitions, whatever the size or scale.Over the past few years, the Competition Authority&#8217;s activities in the digital sector include agreements and investigations of major American companies and platforms, including Google (on “abusing dominant position” when using content of online publishers), Apple (on restriction of intra-brand competition and user data protection), and Meta (on dominance in digital advertising).In June 2022, the Authority dropped an antitrust legal proceeding against Meta after it accepted Meta&#8217;s commitment to re-establishing competition in online advertising. The case was brought forward by Criteo, a Paris-based advertising retargeting platform, which had been removed from some of Meta&#8217;s social network advertising measurement programs. Meta&#8217;s commitments to addressing the Authority and Criteo&#8217;s concerns included the following: 1) Over five years, to subject access to the Meta Business Partner program exclusively to “qualitative criteria;” 2) Over five years, to provide Meta’s sales teams with “compliance training” that will address the content of their communications, particularly with advertiser clients; and 3) Over three years, to develop a new application programming interface (API) for ad service partners, called “recommendation functionality” to be made available free of charge.Another significant case in the past year is the Competition Authority&#8217;s ruling against Altice, which owns the SFR telecoms operator. The Authority imposed a $79.5 million (€75 million) fine on Altice for failing to meet its commitments to deploy fiber optics, following Numericable&#8217;s acquisition of SFR in 2014. In 2017, the Competition Authority imposed a $42.4 million (€40 million) fine against Altice. The Authority claims the new fines are due to Altice not “correctly implementing” its injunctions. In addition to injunctions relating to deployment of fiber optics, others refer to the maintenance of the network, which the Authority claims Altice has also not respected.The Competition Authority launches regular in-depth investigations into various sectors of the economy, which may lead to formal investigations and fines. The Authority publishes its methodology for calculating fines imposed on companies charged with abuse of a dominant position. It issues specific guidance on competition law compliance. Government ministers, companies, consumer organizations and trade associations have the right to petition the authority to investigate anti-competitive practices. While the Authority alone examines the impact of mergers on competition, the Minister of the Economy, Finance, and Industrial and Digital Sovereignty retains the power to request a new investigation or reverse a merger transaction decision for reasons of industrial development, competitiveness, or saving jobs.The decisions of the Competition Authority can be appealed to the Paris Court of Appeal, the Court of Cassation (highest court), and the Council of State. The Paris Court of Appeal has exclusive jurisdiction to hear appeals against the Authority&#8217;s decisions on anti-competitive practices.The Economic Growth, Activity, and Equal Opportunities law (known as the &#8220;Macron Law&#8221;), adopted in August 2016, vested the Competition Authority with the power to review mergers and alliances between retailers ex-ante (beforehand). The law provides that all contracts binding a retail business to a distribution network shall expire at the same time. This enables the retailer to switch to another distribution network more easily. Furthermore, distributors are prohibited from restricting a retailer’s commercial activity via post-contract terms. The civil fine incurred for restrictive practices can now amount to up to five percent of the business&#8217;s revenue earned in France.																																				Expropriation and Compensation										In accordance with international law, neither the national or local governments can legally expropriate property to build public infrastructure without fair market compensation. There have been no expropriations of note during the reporting period.																																				Dispute Settlement																										ICSID Convention and New York Convention						France is a member of the World Bank-based International Centre for Settlement of Investment Disputes (ICSID) Convention and a signatory to the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention) which obligates local courts to enforce international arbitral awards under this system. The International Chamber of Commerce’s International Court of Arbitration (ICA) has been based in Paris since 1923.France was one of the first countries to enact a modern arbitration law in 1980-1981. In 2011, the French Ministry of Justice issued Decree 2011-48, which introduced further international best practices into French arbitration procedural law. As a result, parties are free to agree orally to settle their disputes through arbitration, subject to standards of due process and a newly enacted principle of procedural efficiency and fairness.						Investor-State Dispute Settlement						The President of the High Civil Court of First Instance (Tribunal de Grande Instance) of Paris has the authority to issue orders related to ad-hoc international arbitration. Paris is the seat of the International Chamber of Commerce’s International Court of Arbitration, composed of representatives from 90 countries, that handles investment as well as commercial disputes.France does not have a bilateral investment treaty with the United States.   The European Commission directly negotiates on behalf of the EU on foreign direct investment since it is part of the EU Common Commercial Policy. In 2015, the EU agreed to pursue an investment court approach to investor-State dispute settlement. While this model is included in the Comprehensive Economic and Trade Agreement (CETA) with Canada and the EU-Vietnam FTA, no actual court has yet been established in any form or context; no disputes have been brought under these post-2015 treaties.						International Commercial Arbitration and Foreign Courts						French law provides conditions for the recognition and the enforcement of foreign arbitral awards in relation to the New York Convention.  The provisions of French law are contained in the Code of Civil Procedure and the Code of Civil Enforcement Procedures.  The French Civil Code envisions several mechanisms of alternative dispute resolution (ADR) including out-of-court arbitration and conciliation where a judicial conciliator puts an end to a dispute. France is a member of the UN Commission on International Trade Law (UNCITRAL).  Local courts recognize and enforce foreign arbitral awards as mentioned above.  The recognition of judgments of foreign courts by French courts is possible, but judgements must be accompanied by the issuance of an exequatur – a legal document issued by a sovereign authority that permits the exercise or enforcement of a foreign judgement.																										Bankruptcy Regulations										France has extensive and detailed bankruptcy laws and regulations. The primary legislation governing insolvency and restructuring proceedings in France is Book VI of the French Commercial Code, which is dedicated to companies facing difficulties. Any creditor, regardless of the amount owed, may file suit in bankruptcy court against a debtor. Foreign creditors, equity shareholders, and foreign contract holders have the same rights as their French counterparts. Monetary judgments by French courts on firms established in France are generally made in euros.  Not bankruptcy itself, but bankruptcy fraud – the misstatement by a debtor of his financial position in the context of a bankruptcy – is criminalized.France’s Commercial Code incorporates European Directive 2014/59/EU establishing a framework for the recovery and resolution of claims on insolvent credit institutions and investment firms and European Directive (EU) 2019/1023 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency, and discharge of debt. In 2020, exceptional temporary measures were adopted by way of ordinance to adapt French bankruptcy law to the COVID-19 pandemic.The Bank of France, the country’s only credit monitor, maintains files on persons having written unfunded checks, having declared bankruptcy, or having participated in fraudulent activities. Commercial credit reporting agencies do not exist in France.																																												4. Industrial Policies						    																																																Investment Incentives										The government offers a comprehensive program of tax incentives and development subsidies to encourage investment in underdeveloped areas and certain sectors. Since President Macron came into power in 2017, the French government has embarked on a vast program of pro-business reforms on a permanent basis, aimed at generating more solid, inclusive, and sustainable growth. The Covid-19 crisis prompted the creation of new measures, some temporary, to complete these reforms.President Macron’s investment strategy was built on four key areas: 1) measures aiming at promoting investment and employment in France such as a new tax environment to promote investment and employment such as a reduction in the corporate tax (from 33 percent to 25 percent), reduction in production tax, the cotisation sur la valeur ajoutee des entreprises (CVAE), continuation of the Research and Innovation Tax Credit, reduction in social and employer contributions, transformation of the solidarity tax on wealth into a wealth tax on real estate, and tax exemption for overtime workers; 2) changes to the French social model to increase flexibility for companies and to promote education and training via labor market reforms, vocational training, apprenticeships, transformation of unemployment insurance and financial incentives to stimulate youth employment; 3) new economic policies and investments to support business growth and innovation, including the 2019 “PACTE” law, the “France Relaunch” recovery program, France 2030 investment plan, and the Resilience Plan to mitigate the impact of the Russian invasion of Ukraine; and 4) measures to simplify public activities and policies.The “France Relaunch” and “France 2030” fiscal packages support France’s green transition, the “decarbonization of the French economy,” and the “French green hydrogen plan.” Measures include energy efficiency measures within public buildings, private housing, social housing, and the operating premises of VSEs (Very Small Enterprises) and SMEs (Small and Medium Enterprises); support for upgrades to the national rail network and the development of freight; development of green hydrogen; support for public transport and the use of bicycles; aid for industrial companies to invest in equipment that emits less CO2; and support for the green transition of agriculture.“France 2030” supports the transformation of France&#8217;s automotive, aerospace, digital, green industry, biotechnology, culture, health, and advanced tech sectors. Its objectives include the development of small modular nuclear reactors, France’s leadership in green hydrogen (hydrogen made using renewable and nuclear energy sources), the production of two million electric and hybrid vehicles by 2030, and the decarbonization of France’s industry by reducing greenhouse gas emissions by 35 percent relative to 2015. Of the plan’s $33.8 billion (€30 billion) to be invested over the five years, $ 8.9 billion (€8.4 billion) was invested as of October 12, 2022, across more than 1,700 innovative projects throughout the country. Additionally, one-third of France’s $106 billion (€100 billion) “France Relance” pandemic recovery package is allocated to the ecological transition, including energy sector related investments. The plan also targets green technology, including the development of a decarbonized hydrogen economy. With approximately two-thirds of its electricity coming from nuclear power, France supports the use of nuclear energy to meet emissions reductions targets. Legislation in 2023 to accelerate the construction of new civil nuclear plants aims to ensure at least 50 percent of France’s electricity production comes from nuclear energy by 2050, accelerate the construction of small modular reactors and new generation European Pressurized Reactors (EPR2), extend the lifespan of existing nuclear facilities, and streamline the permitting process for new builds. Of the developed economies, France has one of the lowest rates of greenhouse gas emissions per capita and per unit of GDP due to its reliance on nuclear power. France aims to phase out fossil fuels over the next decade, shut down its two remaining coal plants by 2026, and end public financial support for fossil fuels and natural gas by 2025 and 2035, respectively. In October 2020, France announced it would phase out export guarantees for foreign projects involving fossil fuels by 2035.																																				Foreign Trade Zones/Free Ports/Trade Facilitation										France is subject to all EU free trade zone regulations. These allow member countries to designate portions of their customs’ territory as duty-free, where value-added activity is limited. France has several duty-free zones, which benefit from exemptions on customs for storage of goods coming from outside of the European Union. The French Customs Service administers them and provides details on its website ( http://www.douane.gouv.fr ). French legal texts are published online at  http://legifrance.gouv.fr .President Macron announced the extension of 44 Urban Free Zones (ZFU) in low-income neighborhoods and municipalities with at least 10,000 residents in September 2018.  The program provides incentives for employers, who have created 600 new jobs since 2016. Incentives include exemption from payment of payroll taxes and certain social contributions for five years, financed by $17.7 million (€15 million) a year in state funds. The program ends December 31, 2023.																																				Performance and Data Localization Requirements										While there are no mandatory performance requirements established by law, the French government will generally require commitments regarding employment or R&amp;D from both foreign and domestic investors seeking government financial incentives. Incentives like PAT regional planning grants (Prime d&#8217;Amenagement du Territoire pour l’Industrie et les Services) and related R&amp;D subsidies are based on the number of jobs created, and authorities have occasionally sought commitments as part of the approval process for acquisitions by foreign investors.The French government imposes the same conditions on domestic and foreign investors in cultural industries:  all purveyors of movies and television programs (i.e., television broadcasters, telecoms operators, internet service providers and video services) must contribute a percentage of their revenues toward French film and television productions. They must also abide by broadcasting cultural content quotas (minimum 40 percent French, 20 percent EU).The 2018 EU Directive on audiovisual media services, implemented in France by a December 2020 government decree and an additional six decrees in December 2021, requires video-on-demand subscription services to contribute 20 or 25 percent of revenues in France to the production of European and French movies and television fiction. Netflix, Amazon, Disney Plus, and Apple TV Plus signed in December 2021 an agreement with France’s broadcasting authority CSA to start investing 20 percent of their annual revenues in French content.France maintains a four-month waiting period between the date a movie ceases cinema showings and the date when it can be shown on video-on-demand and DVD/Blu-ray. This can be reduced to three months if the film has registered less than 100,000 admissions in four weeks. After six months, OCS and Canal+, major financial partners of cinema in France, can broadcast the film. Video streaming platforms (including U.S. firms) can add feature films to their catalogs between 15 and 17 months after their release in cinemas. For example, Netflix has signed the agreement under the new windowing rules and will have access to movies 15 months after their theatrical release. Other streaming services such as Disney Plus will have a 17-month window for new films. Finally, a film can be broadcast on classic free channels 22 months after its theatrical release, at which point, video streaming platforms must remove the film from their platforms.France, as an EU member state, adheres to the General Data Protection Regulation (GDPR), as its data privacy protection and transfer framework. The French National Commission for Information Technology and Civil Liberties (CNIL) is the regulatory authority that monitors that data transfer requirements are met for the transfer of customer/personal data out of France.The National Authority for Cyberdefence and Network and Information Security (ANSSI), France’s national cybersecurity agency, revised its cybersecurity certification and labeling scheme SecNumCloud in 2021 to effectively preclude foreign (non-EU) cloud firms from providing services to government agencies with “highly sensitive date” as well as firms and local governments that operate “critical services,” though the French government has not yet formally defined those terms. The regulation could effectively force foreign firms to store data locally with European service providers.																																												5. Protection of Property Rights						    																																																Real Property										Real property rights are regulated by the French civil code and are uniformly enforced. French civil-law notaries (notaires) – highly specialized lawyers in private practice appointed as public officers by the Justice Ministry – handle residential and commercial conveyance and registration, contract drafting, company formation, successions, and estate planning. The official system of land registration (cadastre) is maintained by the French public land registry under the auspices of the French tax authority (Direction Generale des Finances Publiques or DGFiP), available online at http://www.cadastre.gouv.fr . Mortgages are widely available, usually for a 15-year period.																																				Intellectual Property Rights										France is a strong defender of intellectual property rights (IPR). France does not appear on USTR’s 2022 Special 301 Report list.  USTR’s 2022 Notorious Market report continues to list France as host to illicit streaming and copyright infringement websites.Under the French system, patents and trademarks protect industrial property, while copyrights protect literary/artistic property. By virtue of the Paris Convention, U.S. nationals have a priority period following filing of an application for a U.S. patent or trademark in which to file a corresponding application in France:  twelve months for patents and six months for trademarks.Counterfeiting is a costly problem for French companies, and the government of France maintains strong legal protections and a robust enforcement mechanism to combat trafficking in counterfeit goods &#8212; from copies of luxury goods to fake medications &#8212; as well as the theft and illegal use of IPR. The French Intellectual Property Code has been updated repeatedly over the years to address this challenge, most recently in 2019 with the implementation of the Action Plan for Business Growth and Transformation or PACTE Law (Plan d’Action pour la Croissance et la Transformation des Entreprises).  This law reinforced France’s anti-counterfeiting legislation and implemented EU Directive 2015/2436 of the Trademark Reform Package. It increased the Euro amount for damages to companies that are victims of counterfeiting and extends trademark protection to smartcard technology, certain geographic indications, plants, and agricultural seeds. The law also increased the statute of limitations for civil suits from three to ten years and strengthened the powers of customs officials to seize fake goods sent by mail or express freight.  France also adopted legislation in 2019 to implement EU Directive 2019/790 on Copyright and Related Rights in the Digital Single Market.The government also reports on seizures of counterfeit goods. The government launched a new French customs action plan in February 2021 to combat counterfeiting for the 2021-2022 calendar year and released its 2022-2025 strategy in December 2021. Customs seizures in France have increased from 200,000 items in 1994 to 5.64 million items in 2020, and a record 11.53 million items in 2022 (a 27 percent increase over 2020). The action plan focused on improved intelligence gathering, investigation, litigation, and cooperation between all the stakeholders involved, including the Customs Office, which investigates fraud cases; the National Institute of Industrial Property, which oversees patents, trademarks, and industrial design rights; and France’s top private sector anti-counterfeiting organization, UNIFAB. The 2022-2025 strategy’s three stated objectives are to increase the fight against trafficking and organized crime and to guarantee the conformity of goods throughout the logistics chain; to optimize and modernize the processing of the flow of goods at the border and to consolidate support for businesses; and to make French Customs service a modern and innovative administration.France has robust laws against online piracy. A law on the regulation and protection of public access to cultural works in the digital era approved by Parliament on September 29, 2021 established the Regulatory Authority for Audiovisual and Digital Communication (ARCOM) from the merger of the French Audiovisual Authority (CSA) and the French digital piracy agency HADOPI (High Authority for the Dissemination of Artistic Works and the Protection of Rights on Internet). The HADOPI element of ARCOM administers a “graduated response” system of warnings and fines and has taken enforcement action against several online pirate sites. The new law grants ARCOM wider investigative powers to close down mirror sites, as well as blacklist and block access to websites that repeatedly infringe on copyrights. The law also introduced a fast-track remedy to prevent the illegal broadcast of sporting events. The establishment of this new authority was delayed by the COVID-19 pandemic, and the new authority was finally established in January 2022. The government issued an order on May 12, 2021, enforcing in France the EU Directive on Copyright and Related Rights in the Digital Single Market (CDSM), which holds content-sharing platforms liable for the unauthorized communication of copyrighted content. The United States will continue to monitor ways this legislation may impact U.S. stakeholders.For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at  http://www.wipo.int/directory/en /.																																												6. Financial Sector						    																																																Capital Markets and Portfolio Investment										There are no administrative restrictions on portfolio investment in France, and there is an effective regulatory system in place to facilitate portfolio investment. France’s open financial market allows foreign firms easy access to a variety of financial products, both in France and internationally. France continues to modernize its marketplace with a wave of new participants and service providers, new digital assets and crypto assets, as well as new exchange and settlement infrastructure. Among the digitalization trends, the concept of “decentralized finance” (DeFi) is increasingly discussed. As in most EU countries, France’s listed companies are required to meet international accounting standards. Some aspects of French legal, regulatory, and accounting regimes are less transparent than U.S. systems, but they are consistent with international norms. Foreign banks are allowed to establish branches and non-retail operations in France and are subject to international prudential measures. Under IMF Article VIII, France may not impose restrictions on the making of payments and transfers for current international transactions without the (prior) approval of the Fund.Foreign investors have access to all classic financing instruments, including short-, medium-, and long-term loans, short- and medium-term credit facilities, and secured and non-secured overdrafts offered by commercial banks. These assist in public offerings of shares and corporate debt, as well as mergers, acquisitions and takeovers, and offer hedging services against interest rate and currency fluctuations. Foreign companies have access to all banking services. Most loans are provided at market rates, although subsidies are available for home mortgages and small business financing.Euronext Paris (also known as the Paris Bourse) is part of a regulated cross-border stock exchange located in six European countries. Euronext Growth is an alternative exchange for medium-sized companies to list on a less regulated market (based on the legal definition of the European investment services directive), with more consumer protection than the Marché Libre still used by a couple hundred small businesses for their first stock listing. Companies seeking their listing on Euronext Growth must have a sponsor with status granted by Euronext and should prepare a French language prospectus for a permit from the Financial Markets Authority (Autorité des Marchés Financiers or AMF), the French equivalent of the U.S. Securities and Exchange Commission. Small and medium-size enterprises (SMEs) may also list on Enternext, a subsidiary of the Euronext Group created in 2013. The Paris Bourse also offers Euronext Access, an unregulated exchange for start-ups.																																				Money and Banking System										The large banking groups (BNP Paribas, BPCE Group, Crédit Agricole Group, Credit Mutuel Group, and Societe Generale) had total consolidated assets of $8,271 billion (€7,850 billion) at the end of 2021, accounting for 83 percent of France’s total banking sector. Their footprint extends well beyond national borders: in Europe they are classified as “significant institutions” and have been directly supervised by the European Central Bank since 2014. Four of them (BNP Paribas, BPCE, Crédit Agricole, and Société Générale) also qualify as “global systemically important banks.” The successive crises that have unfolded since 2008 – the financial crisis, the sovereign debt crisis, the public health crisis, and then the war in Ukraine – have had knock-on effects on French banks’ foreign activities.Russia’s invasion of Ukraine and the subsequent imposition of economic sanctions on Russia have forced French banks to reevaluate their exposures in both countries. At the end of 2021, the six large French banking groups had total claims of $33 billion (€31.3 billion) vis-à-vis Russia (0.8 percent of their total foreign claims) and $3.9 billion (€3.7 billion) vis-à-vis Ukraine (0.1 percent of total foreign claims). Following the onset Russia&#8217;s full-scale invasion, Société Générale sold its Russian subsidiary Rosbank, severing one of the largest remaining links between French banks and the Russian financial sector.Banque de France is a member of the Eurosystem, the monetary authority of the eurozone which groups together the European Central Bank (ECB) and the national central banks of all countries that have adopted the euro. Banque de France is a public entity governed by the French Monetary and Financial Code. The conditions whereby it conducts its missions on national territory are set out in its Public Service Contract. The three main missions are monetary strategy; financial stability, together with the High Council of Financial Stability (HCSF) which implements macroprudential policy; and the provision of economic services to the community. In addition, it participates in the preparation and implementation of decisions taken centrally by the ECB Governing Council.Foreign banks can operate in France either as subsidiaries or branches but need to obtain a license. Credit institutions’ licenses are generally issued by France’s Prudential Authority (Autorité de Contrôle Prudentiel et de Résolution or ACPR) which reviews whether certain conditions are met (e.g., minimum capital requirement, sound and prudent management of the bank, compliance with balance sheet requirements, etc.). Both EU law and French legislation apply to foreign banks. Foreign banks or branches are additionally subject to prudential measures and must provide periodic reports to the ACPR regarding operations in France, including detailed reports on their financial situation. At the EU level, the ‘passporting right’ allows a foreign bank settled in any EU country to provide their services across the EU, including in France. There are about 874 credit institutions authorized to carry on banking activities in France; the list of foreign banks is available on this website:  https://www.regafi.fr/spip.php?page=results&amp;type=advanced&amp;id_secteur=3&amp;lang=en&amp;denomination=&amp;siren=&amp;cib=&amp;bic=&amp;nom=&amp;siren_agent=&amp;num=&amp;cat=01-TBR07&amp;retrait=0  																																				Foreign Exchange and Remittances																										Foreign Exchange						For purposes of controlling foreign exchange, the French government considers foreigners as residents from the time they arrive in France. French and foreign residents are subject to the same rules; they are entitled to open an account in a foreign currency with a bank established in France and to establish accounts abroad. They must report all foreign accounts on their annual income tax returns, and money earned in France may be freely converted into dollars or any other currency and transferred abroad.France is one of twenty countries (known collectively as the Eurozone) that use the euro currency. Exchange rate policy for the euro is handled by the European Central Bank, located in Frankfurt, Germany. The average euro to USD exchange rate from March 7, 2022, to March 7, 2023 was 1 USD to 0.95 euro.France is a founding member of the OECD-based Financial Action Task Force (FATF, a 39-member intergovernmental body). As reported in the Department of State&#8217;s France Report on Terrorism, the French government has a comprehensive anti-money laundering/ counterterrorist financing (AML/CTF) regime and is an active partner in international efforts to control money laundering and terrorist financing.  Tracfin, the French government’s financial intelligence unit, is active within international organizations and has signed new bilateral agreements with foreign countries. In May 2022, the FATF released its two and a half year-long investigation on France’s capacity to combat financial crime and concluded that France has a &#8220;robust and sophisticated framework to fight money laundering and terrorist financing that is effective in many respects.&#8221;						Remittance Policies						France’s investment remittance policies are stable and transparent.  All inward and outward payments must be made through approved banking intermediaries by bank transfers.  There is no restriction on the repatriation of capital.  Similarly, there are no restrictions on transfers of profits, interest, royalties, or service fees.  Foreign-controlled French businesses are required to have a resident French bank account and are subject to the same regulations as other French legal entities.  The use of foreign bank accounts by residents is permitted.																										Sovereign Wealth Funds										France has no sovereign wealth fund per se (none that use that nomenclature) but does operate funds with similar intents. The Public Investment Bank (BPI France) supports small and medium enterprises (SMEs), larger enterprises (Entreprises de Taille Intermedaire), and innovating businesses with over $39.6 billion (€36 billion) in assets under management. The government strategy is defined at the national level and aims to fit with local strategies.  BPI France may hold direct stakes in companies, hold indirect stakes via generalist or sectorial funds, venture capital, or development or transfer capital.  In November 2020, BPI France became a member of the One Planet Sovereign Wealth Funds (OPSWF) international initiative, which federates international sovereign wealth funds mobilized to contribute to the transition towards a more sustainable economy. BPI France stepped up its support for the ecological and energy transition, aiming to reach nearly $6.6 billion (€6 billion) in green financing per year by 2023.																																												7. State-Owned Enterprises						    																						The 11 publicly-listed entities in which the French State maintains stakes at the federal level are Aeroports de Paris (50.6 percent); Airbus Group (10.9 percent); Air France-KLM (28.6 percent); EDF (93.11 percent), ENGIE (23.6 percent), Eramet (27.1 percent), La Française des Jeux (FDJ) (20.5 percent), Orange (a direct 13.4 percent stake and a 9.60 percent stake through BPI France), Renault (15.0 percent), Safran (11.2 percent), and Thales (25.7 percent). Unlisted companies owned by the State include SNCF (Société Nationale des Chemins de Fer Français, rail), RATP (Régie autonome des transports parisiens, Paris public transport), CDC (Caisse des depots et consignations-bank) and La Banque Postale (bank). In all, the government maintains majority and minority stakes in 83 firms operating in a variety of sectors.Private enterprises have the same access to financing as SOEs, including from state-owned banks or other state-owned investment vehicles. SOEs are subject to the same tax burden and tax rebate policies as their private sector competitors. SOEs may receive subsidies and other financial resources from the government.France, as a member of the European Union, is party to the Agreement on Government Procurement (GPA) within the framework of the World Trade Organization. Companies owned or controlled by the State behave largely like other companies in France and are subject to the same laws and tax code. The Boards of SOEs operate according to accepted French corporate governance principles as set out in the (private sector) AFEP-MEDEF Code of Corporate Governance. SOEs are required by law to publish an annual report, and the French Court of Audit conducts financial audits on all entities in which the State holds a majority interest. The French government appoints representatives to the Boards of Directors of all companies in which it holds significant numbers of shares and manages its portfolio through a special unit attached to the Ministry of the Economy, Finance, and Industrial and Digital Sovereignty, the shareholding agency APE (Agence de Participations de l’Etat). The State as a shareholder must set an example in terms of respect for ESG norms, including gender equality. The annual report also highlights that the State must protect its strategic assets and remain a shareholder in areas where the general interest is at stake.																										Privatization Program										The French government increased to 29.9 percent its existing 14.3 percent stake in the Air France-KLM group in 2021 in a deal that injected $4.5 billion (€4 billion) into Air France and its Holding Company under the European State Aid Temporary Framework. This recapitalization, through a mix of new shares and hybrid debt, constrains the group from taking more than a 10 percent stake in any competitor until three-quarters of that aid is repaid. It follows a $7.7 billion (€7 billion) bailout the government provided earlier in 2020. The French government has pledged to reduce its stake to the pre-crisis level of 14.3 percent by the end of 2026.The government was due to privatize many large companies in 2019, including the airport operator ADP and the energy company ENGIE in order to create a $11 billion (€10 billion) fund for innovation and research. However, the program was delayed because of political opposition to the privatization of airport manager ADP, regarded as a strategic asset to be protected from foreign shareholders. In 2019, over a million French citizens, mostly opposed to privatization, signed a petition to hold a referendum on the government&#8217;s plan to sell all or part of its 50.6 percent stake in ADP. The referendum was held online for nine months ending in March 2020. An insufficient number voted for the results to be binding. In any case, the government announced on March 11, 2020, that it had suspended its plans to privatize ADP, because the outbreak of the COVID-19 pandemic created unfavorable market conditions. As of March 2023, the government had not resumed plans to privatize ADP. The government succeeded in selling in November 2019 a 52 percent stake in gambling firm FDJ. The government continues to maintain a strong presence in some sectors, particularly power, public transport, and defense industries.The government has no major privatization projects for 2023. On the contrary, the government has taken steps to nationalize the energy company EDF, purchasing outstanding shares to expand its previous 84 percent stake to near full ownership.																																												8. Responsible Business Conduct						    																						The business community has general awareness of standards for responsible business conduct (RBC) in France. The country has established a National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises, coordinated and chaired by the Directorate General of the Treasury in the Ministry of the Economy, Finance, and Industrial and Digital Sovereignty. The NCP coordinates representation from the ministries in charge of Economy, Finance, and Industrial and Digital Sovereignty; Labor, Employment, and Economic Inclusion; European and Foreign Affairs; Ecological Transition and the Cohesion of the Territories; and the Energy Transition), six French trade unions (CFDT, CGT, FO, CFE-CGC, CFTC, UNSA), and one employers’ organization, MEDEF.The NCP promotes the OECD Guidelines in a manner that is relevant to specific sectors. When specific instances are raised, the NCP offers its good offices to the parties (discussion, exchange of information) and may act as a mediator in disputes, if appropriate.  This can involve conducting fact-finding to assist parties in resolving disputes and posting final statements on any recommendations for future action with regard to the Guidelines. The NCP may also monitor how its recommendations are implemented by the business in question. In 2021, the French NCP participated or organized 47 projects to promote responsible business conduct and the OECD Guidelines for Multinational Enterprises, but activities remained impacted by health constraints related to the COVID-19 pandemic. The General Directorate of the Treasury in the Ministry of Economy, Finance and Industrial and Digital Sovereignty has a dedicated NCP webpage available at:  https://www.tresor.economie.gouv.fr/tresor-international/pcn-france In France, corporate governance standards for publicly traded companies are the product of a combination of legislative provisions and the recommendations of the AFEP-MEDEF code (two employers’ organizations). The code, which defines principles of corporate governance by outlining rules for corporate officers, controls, and transparency, meets the expectations of shareholders and various stakeholders, as well as of the European Commission. First introduced in September 2002, it is regularly updated, adding new principles for the determination of remuneration and independence of directors, and now includes corporate social and environmental responsibility standards. The new AFEP-MEDEF code, which is followed by most publicly listed companies in France, was published in December 2022, almost three years after its last update. The major changes to the code focus on how environmental and social responsibility, including climate, should be integrated into corporate strategy, board discussions, and the executive remuneration policies of French public companies.Also relating to transparency, the EU passed a regulation in May 2017 to stem the trade in conflict minerals and, in particular, to stop conflict minerals and metals from being exported to the EU; to prevent global and EU smelters and refiners from using conflict minerals; and to protect mine workers from being abused. The regulation went into effect January 1, 2021, and applies directly to French law.France has played an active role in negotiating the ISO 26000 standards, the International Finance Corporation Performance Standards, the OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles on Business and Human Rights. France has signed on to the Extractive Industries Transparency Initiative (EITI), hosting its eighth global conference in Paris in 2019 and regularly serving on the EITI board. Since 2017, large companies based in France with at least 5,000 employees are now required to establish and implement a corporate plan to identify and assess any risks to human rights, fundamental freedoms, workers’ health, safety, and risk to the environment from activities of their company and its affiliates.The February 2017 “Corporate Duty of Vigilance Law” requires large companies to set up, implement, and publish a “vigilance plan” to identify risks and prevent “serious violations” of human rights, fundamental freedoms, and serious environmental damage.Significant human rights issues in France occur and have included credible reports of crimes involving violence or threats of violence based on ethnicity, nationality, and religion, including against Muslims; crimes, violence, or threats of violence motivated by antisemitism; and crimes involving violence or threats of violence targeting lesbian, gay, bisexual, transgender, queer, and intersex persons. There were no reports of violence against environmental defenders in mainland France, though environmental protesters and police have been injured in some recent clashes. Indigenous people in French Guiana continue to report inequalities and lack of access to justice for land disputes and wildlife trafficking. Similarly, some indigenous groups continue to oppose the construction of large-scale electricity-generating projects, including the Larivot power station in French Guiana. The government took steps to investigate, prosecute, and punish officials who committed human rights abuses or engaged in corruption. Impunity was not widespread.																										Additional Resources										Department of StateCountry Reports on Human Rights Practices ( https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/)Trafficking in Persons Report ( https://www.state.gov/trafficking-in-persons-report/)Guidance on Implementing the &#8220;UN Guiding Principles&#8221; for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ( https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/)U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ( https://www.state.gov/u-s-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises/)Xinjiang Supply Chain Business Advisory ( https://www.state.gov/xinjiang-supply-chain-business-advisory/)Department of the TreasuryOFAC Recent Actions ( https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions )Department of LaborFindings on the Worst Forms of Child Labor Report ( https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  )List of Goods Produced by Child Labor or Forced Labor ( https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods )Sweat &amp; Toil: Child Labor, Forced Labor, and Human Trafficking Around the World ( https://www.dol.gov/general/apps/ilab )Comply Chain ( https://www.dol.gov/ilab/complychain/ )																																				Climate Issues										France enacted a Climate and Resilience Law in 2021 covering consumption and food, economy and industry, transportation, housing, and strengthening sanctions against environmental violations. The production and work chapter of the Law aligns France’s national research strategy with its national low carbon and national biodiversity strategies. All public procurement must consider environmental criteria. To protect ecosystems, the law amends several mining code provisions, including the requirement to develop a responsible extractive model. The law translates France’s multi-year energy program into regional renewable energy development objectives, creates the development of citizen renewable energy communities, and requires installation of solar panels or green roofs on commercial surfaces, offices, and parking lots. The consumption chapter requires an environmental sticker and inscription to better inform consumers of a product or service’s impact on climate. The law banned the advertising of fossil fuels by 2022 and the advertising of the most carbon-emitting cars (i.e., those that emit more than 123 grams of carbon dioxide per kilometer) by 2028. The law also empowered local authorities to reduce paper advertisements and regulate electronic advertising screens in shop windows. Large- and medium-sized stores (i.e., those with over 400 square meters of sales area) must devote 20 percent of their sales area to bulk sales by 2030. In the agriculture sector, the law sets annual emissions reduction levels concerning nitrogen fertilizers; failure to meet these objectives will trigger a tax beginning in 2024. The law’s transportation chapter extends France’s 2019 Mobility law by creating 33 low-emission zones in urban areas that have more than 150,000 inhabitants by the end of 2024, and bans cars manufactured before 1996 in these large cities. In the top 10 cities that regularly exceed air quality limits on particulates, the law will ban vehicles that have air quality certification stickers of above a certain level. The law requires regions to offer attractive fares on regional trains, bans domestic flights when there is train transportation of less than 2.5 hours, requires airlines to conduct carbon offsetting for domestic flights beginning in 2022, and creates carpool lanes. The law creates a road ecotax starting in 2024, prohibits the sale of new cars that emit more than 95 gram of carbon dioxide per kilometer by 2030 and of new trucks, and buses with 95 gCO2/km emissions by 2040, and provides incentives to develop bicycle paths, parking areas, and rail and waterway transport.The Climate and Resilience Law’s housing chapter seeks to accelerate the environmental renovation of buildings. Starting from August 2022, owners of poorly insulated housing must undertake energy efficiency upgrades if they want to increase rent rates. The law forbids leasing non-insulated housing beginning in 2025 and bans leasing any type of poorly insulated housing beginning in 2028. It also provides information, incentives, and control mechanisms empowering tenants to demand landlords conduct energy efficiency upgrades. As of September 2022, the law required, when selling poorly insulated housing or buildings, an energy audit including proposals for improvement construction, cost estimate, and an estimate of the energy gain. All households will have access to a financing mechanism to pay the remaining costs of their upgrades via government-guaranteed loans. The law regulates the laying of concrete, mandates a 50 percent reduction in the rate of land use by 2030, requires net zero land reclamation by 2050, and prohibits the construction of new shopping centers that lead to modifying the natural environment. The law also aims to protect 30 percent of France’s sensitive natural areas and supports local authorities in adapting their coastal territories against receding coastlines.The law’s final chapter focuses on environmental violations and reinforces sanctions for environmental damage, such as long-term degradation to fauna and flora (up to three years in prison and a $273,000 (€250,000) fine, as well as for the general offense of environmental pollution and “ecocide” (up to 10 years in prison and a $4.9 million (€4.5 million ) fine or up to 10 times the profit obtained by the individual committing the environmental damage). The chapter uses the term “ecocide” to refer to the most serious cases of environmental damage, although the term is not defined in the law. Even if pollution has not occurred, these penalties apply as long as the individual’s behavior is considered to have put the environment in “danger.” The law aims to protect 30 percent of France’s sensitive natural areas and supports local authorities in adapting their coastal territories against receding coastlines.France developed a roadmap for the deployment of sustainable aviation biofuels by 2025 to reduce CO2 emissions. The roadmap was informed by a few French initiatives, including a study on the conditions for the emergence of an aeronautical biofuel industry in France. The roadmap prioritizes sustainable aviation fuels produced in France, noting the importance of a biofuel’s origin and environmental and socio-economic sustainability. France established the following objectives for the share of sustainable aviation fuels; 2 percent by 2025, 5 percent by 2030, and 50 percent by 2050, consistent with achieving carbon neutrality.France is home to 10 percent of the world&#8217;s known species. It is one of 15 “megadiverse” countries according to the International Union for Conservation of Nature and the only one to be present in five of the 36 global biodiversity “hotspots” (Mediterranean, Caribbean, Indian Ocean, New Caledonia, and Micronesia-Polynesia). Since 2007, 546 marine protected areas have been created across metropolitan France and its overseas departments and territories, including nine marine natural parks. France has 54 regional nature parks and 11 national parks, including three in its overseas territories. France will host the next UN Conference on the Oceans in 2025 in Nice, France.France adopted its third National Biodiversity Strategy, covering 2022-2030, and has prioritized biodiversity as an environmental priority in its diplomatic efforts. The third National Biodiversity Strategy relies on three principles: “sobriety” in the use of natural resources; coordination and alignment of public policies, private sector partnerships, and global interventions; and enhanced focus on implementation of policies.																																												9. Corruption						    																						In line with President Macron’s campaign promise to clean up French politics, the French parliament adopted in September 2017 the law on “Restoring Confidence in Public Life.” The law bans elected officials from employing family members or working as a lobbyist or consultant while in office. It also bans lobbyists from paying parliamentary, ministerial, or presidential staff and requires parliamentarians to submit receipts for expenses.France’s “Transparency, Anti-corruption, and Economic Modernization Law,” also known as the “Loi Sapin II,” came into effect on June 1, 2017. It brought France’s legislation in line with European and international standards. Key aspects of the law include:  creating a new anti-corruption agency; establishing “deferred prosecution” for defendants in corruption cases and prosecuting companies (French or foreign) suspected of bribing foreign public officials within France and abroad; requiring lobbyists to register with national institutions; and expanding legal protections for whistleblowers. The Sapin II law also established a High Authority for Transparency in Public Life (HATVP). The HATVP promotes transparency in public life by publishing the declarations of assets and interests it is legally authorized to share publicly. After review, declarations of assets and statements of interests of members of the government are published on the High Authority’s website under open license. The declarations of interests of members of Parliament and mayors of big cities and towns, but also of regions are also available on the website. In addition, the declarations of assets of parliamentarians can be accessed in certain government buildings, though not published on the internet.France is a signatory to the OECD Anti-Bribery Convention. The U.S. Embassy in Paris has received no specific complaints from U.S. firms of unfair competition in France in recent years. France ranked 21 of 180 countries on Transparency International’s (TI) 2022 corruption perceptions index. See  https://www.transparency.org/country/FRA .																										Resources to Report Corruption										The Agence Francaise Anticorruption (AFA) is charged with preventing corruption by establishing anti-corruption programs, making recommendations, and centralizing and disseminating information to prevent and detect corrupt officials and company executives. Its website can be found here:  https://www.agence-francaise-anticorruption.gouv.fr/fr/guides-et-chartes . The AFA also has administrative authority to review the anticorruption compliance mechanisms in the private sector, in local authorities, and in other government agencies.Contact information for Agence Française Anticorruption (AFA):Director: Charles Duchaine23 avenue d&#8217;Italie75013 ParisTel : (+33) 1 44 87 21 14Email: charles.duchaine@afa.gouv.frContact information for Transparency International’s French affiliate:Transparency International France14, passage Dubail75010 ParisTel: (+33) 1 84 16 95 65;Email: contact@transparency-france.org																																												10. Political and Security Environment						    																						France is a politically stable country. Large demonstrations and protests occur regularly and are sometimes organized to occur simultaneously in multiple French cities; these sometimes can result in violence. When faced with imminent business closures, on rare occasions French trade unions have resorted to confrontational techniques such as setting plants on fire, planting bombs, or kidnapping executives or managers.Demonstration activity has continued across France since 2021, primarily driven by opposition to the government’s implementation of coronavirus restrictions, economic concerns, and the government’s pension reform efforts. Demonstrations increased by 61 percent in mainland France in 2021 and 257 percent in French overseas territories and Corsica. While some of these demonstrations turned violent or destructive, the vast majority — 98 percent — remained peaceful. Demonstrations against coronavirus-related restrictions first surged in November 2020, after President Macron announced a second nationwide lockdown, before surging again in March and July 2021, with the introduction of further restrictions, and peaking in August 2021. Since the beating — and subsequent death — of a high-profile imprisoned Corsican separatist in March 2022, 31 percent of demonstrations in Corsica turned violent or destructive. Police response included tear gas and water cannons. In October 2022, thousands took to French streets to decry government inaction over the high cost of living. The demonstrations erupted following weeks of &#8220;walkouts&#8221; that have crippled oil refineries and caused gasoline shortages. A series of general strikes and demonstrations began in France on January 19, 2023, organized by those opposed to the 2023 French pension reform bill proposed by the government. The strikes, which have continued to date through the first quarter of 2023, have led to widespread disruption, including garbage piling up in the streets and public transport cancelations.Between 2012 and 2021, 271 people have been killed in terrorist attacks in France, including the January 2015 assault on the satirical magazine Charlie Hebdo; the November 2015 coordinated attacks at the Bataclan concert hall, national stadium, and streets of Paris; and the 2016 Bastille Day truck attack in Nice. Per the Secretary General of National Defense and Security (SGDSN), the terrorist threat in France remains “very high.”  Security services are concerned about “Sunni terrorism” and “ultra-right” groups and consider endogenous attacks (lone wolf attacks) to pose the most significant current threat.  Terrorist attacks have since been smaller in scale. French security agencies continue to disrupt plots and cells effectively. Despite the spate of recent small-scale attacks, France remains a strong, stable, democratic country with a vibrant economy and culture. Americans and investors from all over the world continue to invest heavily in France.																																		11. Labor Policies and Practices						    																						France’s labor market is performing well despite the deteriorating economic outlook. In the last quarter of 2022, the unemployment rate in France stood at 7.2 percent of the active population. The rate is 1 point below its pre-pandemic level and at its lowest level since 2008. The unemployment rate for people aged 15 to 24 is still high but decreased to 16.9 percent, while the overall women’s unemployment rate reached 6.9 percent (men’s unemployment rate is 7.4 percent). According to the French Central Bank Monthly Business Survey, recruitment difficulties remain significant in January 2023, affecting 51 percent of businesses across all sectors, but these challenges are nonetheless receding gradually from their peak in September 2022.Some sectors face growing recruitment difficulties even though the number of job seekers remains high.  According to Dares, the research and statistical section of the French Ministry of Labor, in 2021, the intensity of hiring is the main cause of tension on the French labor market, followed by a shortage of trained labor in jobs considered attractive (executives, technicians, computer engineers), and the role of working conditions and wages in certain sectors and professions (construction, catering, nursing, etc.).A February 2023 paper by Dares estimated that in 2019, 10.3 percent of French employees were union members, a 0.9 percentage point decrease compared to 2013. This is one of the lowest unionized work forces in the developed world. However, unions have strong statutory protections under French law that give them the power to engage in sector- and industry-wide negotiations on behalf of all workers. Any organizational change in the workplace must usually be presented to the unions for a formal consultation as part of the collective bargaining process.In France, the Labor Court (Conseil des Prud’hommes in French) is responsible for settling individual conflicts between employers and employees related to the private law employment contract (including apprentices). The Labor Court is a joint jurisdiction since its judges are not professional judges, with mixed membership elected from two colleges: one by the employees and the other by the employers, each group electing the same number of councilors.The &#8220;Professional Future&#8221; law of September 5, 2018, thoroughly reformed the apprenticeship system, raising the age ceiling (from 25 to 29), modifying the aid intended for employers, financing an apprentice training center, and creating the France Compétences agency. The number of apprenticeships in France in 2022 reached 837,000 (+14 percent compared with 2021), including 811,500 in the private sector, according to March 2023 Labor Ministry figures. Apprenticeships, like vocational training, have been placed under the direct management of the government via the France Compétences agency.The reform of unemployment insurance was adopted in 2019 and postponed because of the COVID-19 pandemic. These measures include a new method for calculating the daily reference salary, the extension of the period of affiliation required for entitlement (from 4 to 6 months of work in the last 24 months), a 30 percent cut in benefits of higher wage earners in the seventh month, and a bonus-malus system on the employer’s contribution of unemployment insurance. In February 2023, new unemployment insurance reforms introduced a 25 percent reduction in the duration of entitlements for new entrants in the event of good economic conditions (an unemployment rate below 9 percent and a quarter-on-quarter change below 0.8 point). Therefore, the maximum duration of compensation is 18 months instead of 24 months. It also introduced a presumption of resignation in the event of job abandonment by the employee whereas it previously presumed a dismissal. According to a March 2023 report by Unedic – the non-profit organization that manages the unemployment insurance scheme, the scheme’s deficit disappeared by the end of 2022, leading to a surplus of $ 4.6 billion (€+4.3 billion) due to the end of the government’s COVID-19 partial unemployment scheme and as a consequence of the unemployment insurance reform. In 2023, with expenditures growing faster than revenues, the Unédic balance is forecasted to contract by $4 billion (€3.8 billion), though remaining positive.A pension reform bill was unveiled in January 2023, and was adopted by government decree on March 16 when Prime Minister Borne used article 49.3 of the French constitution, avoiding a vote within the lower house.  However, it is currently facing widespread protests and is before the Constitutional Council for reviews at the time of report drafting (March 2023).  France’s pension system relies on a pay-as-you-go structure in which workers and employers are assessed mandatory payroll taxes that are used to fund retiree pensions. The 2023 reform will maintain this structure and raise the legal age of retirement from 62 to 64 year. It also increases the number of years people must pay into the system before they can draw a pension. Debates in both chambers of the French Parliament were tense, and labor unions carried out nationwide strikes for more than two months. Public opinion polls have shown that most French citizens oppose this reform. Through the reform, the French government intends to place the pension system on a firmer financial footing as life expectancy rises and as the ratio of workers to retirees decreases. However, opponents dispute the need for urgency.																																		12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs						    																						Given France&#8217;s high per capita income, investments in France do not qualify for investment insurance or guarantees offered by the U.S. International Development Finance Corporation (DFC).																																		13. Foreign Direct Investment Statistics						    																						Table 2: Key Macroeconomic Data, U.S. FDI in FranceHost Country Statistical source*USG or international statistical sourceUSG or International Source of Data:  BEA; IMF; Eurostat; UNCTAD, OtherEconomic DataYearAmountYearAmountFrance’s Gross Domestic Product (GDP) ($M USD)2021$2,388,8802021$2,957,879www.worldbank.org/en/countryForeign Direct InvestmentHost Country Statistical source*USG or international statistical sourceUSG or international Source of data:  BEA; IMF; Eurostat; UNCTAD, OtherU.S. FDI in France ($M USD, stock positions)2021$66,4402021$106,167BEA data available at https://apps.bea.gov/international/factsheet/France’s FDI in the United States ($M USD, stock positions)2021$205,8342021$276,146BEA data available at https://apps.bea.gov/international/factsheet/Total inbound stock of FDI as % French GDP202135.4%202133%UNCTAD data available athttps://unctad.org/topic/investment/world-investment-report* Source for Host Country Data: INSEE, French National Statistical Office and French Central Bank (Banque de France) for FDI figures. Accessed on March 8, 2023.Table 3: Sources and Destination of FDIDirect Investment from/in France Economy Data 2021From Top Five Sources/To Top Five Destinations (US Dollars, Millions)Inward Direct InvestmentOutward Direct InvestmentTotal Inward879,738100%Total Outward1,334,201100%Luxembourg169,92819%United States205,83415%Switzerland111,90313%The Netherlands198,35115%The Netherlands109,97813%Belgium149,00511%United Kingdom106,10312%United Kingdom131,35510%Germany104,39012%Italy71,4675%&#8220;0&#8221; reflects amounts rounded to +/- USD 500,000.Source: Bank of France.  Accessed on March 8, 2023.Note: These figures represent the stock of foreign direct investment (FDI), not the annual flow of FDI. According to the February 2023 Business France Investment report, the United States was the top investor for both the number of projects recorded in 2022 (280 projects) and jobs generated (17,107).																																		14. Contact for More Information						    																						Economic Officer Nathan Kato WallaceEconomic Officer Ann MecedaU.S. Embassy2 Avenue Gabriel75008 Paris, FranceTel: +33.1.43.12.27.02																																		Special Section on Monaco						    																						The Principality of Monaco, the world’s second smallest country by area, has an open economy that welcomes foreign investment.  Monaco enjoys a high standard of living and low unemployment.  With the exception of French citizens who remain subject to French personal income tax, foreigners (and Monegasques) actually living and working in Monaco are not subject to personal income tax.  Corporations may benefit from various tax incentives.  There are no restrictions preventing foreigners and non-residents from buying property or opening bank or brokerage accounts in Monaco, though some banks have levied fees on American accounts.  Non-residents account for more than half of real estate investments.  Monaco is well known for its security and political stability.																										Investment Regime of Monaco										Monaco’s economic and regulatory system is closely tied to that of France, and Monaco uses the Euro as its currency.  The convention of May 1, 1963, brought French and Monegasque territories, including territorial waters, under a common customs union resulting in the application of French customs law in Monaco.  Although Monaco is not a member of the European Union, the customs union with France makes it subject to EU customs laws, thus guaranteeing that the transfer of goods and services from and into Monaco remains within the single European market.Economic activity within Monaco, including commercial, handicraft, and industrial activity, is strictly monitored by the government.  Prior approval from the Direction de l’Expansion Economique (Department of Economic Expansion) is required before conducting any economic activity in the principality. This applies to foreign companies that may establish a branch or an administrative unit in the Principality.  Monegasque authorities issue approvals based on type of business; approval is personal and may not be transferred.  Any change in the terms requires a new approval.  Currently, the process takes 6-8 weeks.A body called Espace Entreprises Monaco Business Office helps new investors.  The Monaco Welcome and Business office (MWBO) assists individuals and entrepreneurs in relocating to the Principality of Monaco.  In the financial sector, creation of any financial organization is subject to the approval of both the French CECEI (Committee for Credit and Investment Institutions) in Paris and of Monegasque financial supervisory authorities.  Offshore companies are subject to the same due diligence and suspicious transaction reporting regulations as other banking institutions.Monaco has taken a number of initiatives to promote economic activity and make company operations more transparent while maintaining high ethical standards, including:Creation of the legal status of a Limited Liability Company;Adoption of systems to combat money laundering, terrorist financing, organized crime, and corruption (through the creation of the Service d’Information et de Contrôle sur les Circuits Financiers, SICCFIN:  http://www.siccfin.gouv.mc , which has an ongoing cooperation agreement with Monaco’s police department); andSpecial exemptions for new companies and research.In Monaco, there is no direct taxation, with two exceptions:Companies earning more than 25 percent of their turnover (revenue) outside of the Principality, and companies whose activities consist of earning revenues from patents and literary or artistic property rights, are subject to a tax of 33.33 percent on profits; andFrench nationals unable to prove that they resided in the Principality for five years before October 31, 1962, are subject to French income tax.To promote the economy, the Principality of Monaco offers tax exemptions to new companies developing a new activity.  These new companies enjoy 100 percent exemption from corporate tax in the first two years, and then following a sliding scale gradually assume normal tax obligations by the sixth year.  An R&amp;D tax credit was additionally created in March 2009.  Additionally, startups and small businesses may benefit from support through incubator programs in country, including those that provide expert advice and affordable workspace.On July 12, 2016, the European Union and Monaco signed an agreement making Monaco’s tax compliance regulations and automatic exchange of financial information stronger and equivalent to measures in force in the EU.  The EU-Monaco agreement entered into force in 2018.  Monaco is now classified as “largely compliant” by OECD tax transparency standards.  The Principality has signed 33 Tax Information Exchange Agreements (TIEA), including one with the United States in 2009. In January 2019, Monaco deposited its instrument of ratification for the Multilateral Base Erosion and Profit Sharing (BEPS) OECD/G20 Convention. In January 2023, Moneyval, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Funding of Terrorism, released its 5th Round of Mutual Evaluation 2022 Report on Monaco, following a 2022 on-site visit. The Report recommended the Principality “step-up” its Anti-Money Laundering and Terrorism Financing Measures, particularly in the confiscation and recovery of crime proceeds, investigation and prosecution of money laundering, and supervision. Moneyval placed Monaco in its enhanced follow-up process and will have to report its progress by the end of 2023.																																				Size of the Economy of Monaco										Monaco’s GDP for 2021 was $7.77 billion (€7.27 billion), compared to $6.71 billion (€5.97 billion) in 2020, a 21.6 percent increase in real terms.  Resuming its pre-Covid growth, Monaco’s GDP reached an all-time high in 2021 since the Principality begun calculating its GDP in 2005. (Source: Source: IMSEE – Monaco  GDP Reports / Publications / IMSEE &#8211; Monaco IMSEE (monacostatistics.mc)  ).  The two sectors driving the country’s economy were scientific and technical activities and administrative and support services (21.2 percent) and financial and insurance activities (16.1 percent), that accounted for over a third of the country’s GDP in 2021. Combined with the sectors of wholesale trade (10 percent) and construction (9.1 percent), these four leading sectors contributed to more than half of the country’s GDP.The country’s budget comes from taxes on industry, trade, and services; a vibrant tourism sector; and several government-owned enterprises, most notably the country’s famous casinos.  In 2021, the Value Added Tax (VAT) continued to be the largest source of revenue for the State, especially derived from commercial transactions. Tax revenues steadily increased from $764.6 million (€689.7 million) in 2019, to $979.12 million (€804.1 million) in 2020 and reached a record in 2021 of $986.12 million (€873.1 million). In 2021 about 50 percent of the government’s revenue came from the VAT, which is collected by French authorities and disbursed to Monaco according to an agreed formula. The government’s total revenue reached an unprecedented $2.04 billion (€1.8 billion) in 2021, driven by three major sources of income: real estate (13.4 percent), legal transactions (11.3 percent), and finance (10.8 percent).Following this upward trend, the assets of the Constitutional Reserve Fund also continued to rise and hit an all-time record of $7.24 billion (€6.4 billion) at the end of 2021. Although public expenditure was slightly less than in 2020, as the Covid exceptional measures ended, it still amounted to $2 billion (€1.8 billion), with a sharp increase in equipment and investment.There is a high concentration of financial professionals in Monaco, as might be expected in this center of international business.  French banking law applies in Monaco, subjecting banks to the same level of supervision as in France.  With some 29 full-service banks and more than 51 portfolio and fund management companies, the banking sector is a major part of the Principality’s economic activity ( Monaco en chiffres édition 2022 / Publications / Analyses et Statistiques / L&#8217;Économie / Action Gouvernementale / Portail du Gouvernement &#8211; Monaco ). In 2022 the total value of assets deposited in the Principality’s financial institutions had soared to a record of $173.37 billion (€153.1 billion).																																				    							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Openness To, and Restrictions Upon, Foreign Investment																																							Policies Towards Foreign Direct Investment																																																						Limits on Foreign Control and Right to Private Ownership and Establishment																																																						Other Investment Policy Reviews																																																						Business Facilitation																																																						Outward Investment																																																			2. Bilateral Investment and Taxation Treaties																3. Legal Regime																																							Transparency of the Regulatory System																																																						International Regulatory Considerations																																																						Legal System and Judicial Independence																																																						Laws and Regulations on Foreign Direct Investment																																																						Competition and Antitrust Laws																																																						Expropriation and Compensation																																																						Dispute Settlement																																																				ICSID Convention and New York Convention																																												Investor-State Dispute Settlement																																												International Commercial Arbitration and Foreign Courts																																																																																				Bankruptcy Regulations																																																			4. Industrial Policies																																							Investment Incentives																																																						Foreign Trade Zones/Free Ports/Trade Facilitation																																																						Performance and Data Localization Requirements																																																			5. Protection of Property Rights																																							Real Property																																																						Intellectual Property Rights																																																			6. Financial Sector																																							Capital Markets and Portfolio Investment																																																						Money and Banking System																																																						Foreign Exchange and Remittances																																																				Foreign Exchange																																												Remittance Policies																																																																																				Sovereign Wealth Funds																																																			7. State-Owned Enterprises																																							Privatization Program																																																			8. Responsible Business Conduct																																							Additional Resources																																																						Climate Issues																																																			9. Corruption																																							Resources to Report Corruption																																																			10. Political and Security Environment																11. Labor Policies and Practices																12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs																13. Foreign Direct Investment Statistics																14. Contact for More Information																Special Section on Monaco																																							Investment Regime of Monaco																																																						Size of the Economy of Monaco																																																									Tags																					Bureau of Economic and Business Affairs																								Bureau of European and Eurasian Affairs																								France																								Monaco
- Monaco HomeReportsOffice of International Religious Freedom2022 Report on International Religious Freedom&#8230;Monaco				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2022 Report on International Religious Freedom: Monaco																																					Office of International Religious Freedom																																																																																							Download Report																																																																																	 In this section										/																							Executive Summary																																													Executive Summary																															Section I. Religious Demography																																																																																		Section II. Status of Government Respect for Religious Freedom																																																									Legal Framework																																																																											Government Practices																																																																																	Section III. Status of Societal Respect for Religious Freedom																																																																																		Section IV. U.S. Government Policy and Engagement																																																																																																								Executive Summary				The constitution provides for freedom of religion and its public expression and prohibits compelling participation in religious ceremonies. Roman Catholicism is the state religion, and state ceremonies often include Catholic rituals. Religious groups must apply to the government to build a public place of worship and to receive recognition, which provides certain legal rights and privileges.In January, the European Court of Human Rights (ECHR) reached a decision in a 2019 case in which Jehovah’s Witnesses sought government recognition as a religious group. In its ruling, the ECHR announced that the Monegasque Minister of State and Jehovah’s Witnesses had reached an agreement to settle the dispute, and Jehovah’s Witnesses withdrew the claim. The government agreed to register the Jehovah Witnesses Association. The government and Jehovah’s Witnesses had both stated the group could not open a place of worship without recognition.The were no reports during the year of significant societal actions affecting religious freedom.In the fall, the U.S. Consul General in Marseille discussed the state of religious freedom in the country with a representative from the Ministry of Foreign Affairs. A representative from the consulate general discussed issues pertaining to religious freedom with leaders of Jehovah’s Witnesses and the Catholic and Protestant Churches. A consulate general representative spoke several times with representatives from Jehovah’s Witnesses, who confirmed they were now officially recognized as a religious association by the government. In the fall, consulate general representatives also discussed religious freedom and diversity in the country with Jewish, Protestant, and Roman Catholic representatives.																														Section I.													 Religious Demography												    																																															The U.S. government estimates the total population at 31,400 (midyear 2022), of whom 10,100 are citizens.  The U.S. government estimates 90 percent of the population are Roman Catholic.  Protestant officials said Protestants represent at least 2 percent of the population with 200-220 families, mainly of British and American descent.  The Reformed Protestant Church of Monaco, associated with the United Protestant Church of France, has 25 registered members.  There are also small numbers of American Evangelists, Filipino Catholics, Greek Orthodox, and Russian Orthodox.  The Russian Orthodox Church has an estimated 300 members, according to observers and press reports.  The European Jewish Congress and the local Association Culturelle Israelite (Jewish Cultural Association) report that within their community, most of the approximately 1,000 residents are noncitizens, primarily from France and the United Kingdom, with a smaller number from North Africa and Turkey.According to a long-time Muslim resident, there is a small Muslim community of approximately 200 persons, most of whom are noncitizens from North Africa.  Jehovah’s Witnesses report 20 of its members reside in the country, although 150-200 of its members work in the country.  A small number of residents adhere to other religious beliefs.																																					Section II.													 Status of Government Respect for Religious Freedom												    																																																Legal Framework										The constitution provides individuals freedom of religion and public worship and protects the freedom to express opinions on all issues, provided no crimes are committed in the exercise of those freedoms. No one may be compelled to participate in the rites or ceremonies of any religion or to observe its days of rest. The constitution states that Roman Catholicism is the state religion. The Catholic Archbishop of Monaco occupies the highest government office below the sovereign and the Minister of State.Religious associations seeking to establish an office or place of worship, own or lease property, or hire employees must first obtain official recognition from the Ministry of the Interior. The ministry must respond to such requests within one month or approval is automatic. The government has granted recognition to the Protestant, Russian Orthodox, and Jewish communities. In addition to obtaining official government recognition, any religious group wishing to construct a place of worship in a public space must receive prior approval from the Ministry of the Interior. The government does not tax religious institutions.Catholic religious instruction is available in public schools as an option and requires parental authorization. Private schools, including those operated by religious groups, must apply for government authorization. If approved, the schools may provide instruction in religions other than Catholicism.The country is a party to the International Covenant on Civil and Political Rights.																																				Government Practices										In January, the European Court of Human Rights (ECHR) reached a decision in a case brought by Jehovah’s Witnesses in 2019 to obtain recognition as a religious group. Prior to the case, the government had rejected three previous applications by the group, despite a Supreme Court ruling annulling the first two rejections. In its ruling, the ECHR announced the Monegasque Minister of State and Jehovah’s Witnesses had reached an agreement to settle the dispute, and the Jehovah’s Witnesses withdrew the claim. The government agreed to register the Jehovah Witnesses Association. In the fall, a representative of Jehovah’s Witnesses confirmed the association completed the registration process and that the government had officially recognized it.The government and Jehovah’s Witnesses had both stated the group could not open a place of worship without recognition. Jehovah’s Witnesses stated government recognition would permit them to establish a headquarters in the country where they could worship and welcome new members. Representatives of Jehovah’s Witnesses also noted that dozens of their members visited the country as tourists each year and often asked how to access religious services.Catholic rituals continued to be a part of many state ceremonies, including annual national day celebrations.																																					Section III.													 Status of Societal Respect for Religious Freedom												    																																															The were no reports during the year of significant societal actions affecting religious freedom.Places of worship included six Catholic churches, two Protestant churches, and one synagogue.  During the year, American Evangelist, Filipino Catholics, Greek Orthodox, and Russian Orthodox churches held services inside the premises of the Reformed Church of Monaco.  The Russian Orthodox parish used the Reformed Protestant Church until it could identify a location to build its own church.According to religious groups, building new places of worship was difficult due to high real estate prices.  There were no mosques in the country.																																					Section IV.													 U.S. Government Policy and Engagement												    																																															In the fall, the U.S. Consul General in Marseille, who is accredited to the Government of Monaco, discussed the state of religious freedom in the country with a representative from the Ministry of Foreign Affairs.In the fall, consulate general staff spoke with representatives of the Catholic Church, Jewish community, members of the United Protestant Church – one of the country’s two Protestant churches – and Jehovah’s Witnesses.  They discussed the groups’ views regarding their ability to exercise religious freedom in the country, including their ability to establish places of worship, and government attitudes towards religious schools.																																				    							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Religious Demography																																																	Section II. Status of Government Respect for Religious Freedom																																							Legal Framework																																																						Government Practices																																																			Section III. Status of Societal Respect for Religious Freedom																																																	Section IV. U.S. Government Policy and Engagement																																																							Tags																					Bureau of European and Eurasian Affairs																								Monaco																								Office of International Religious Freedom																																Religious Freedom
- Monaco HomeReportsBureau of Democracy, Human Rights, and Labor2022 Country Reports on Human Rights Practices&#8230;Monaco				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2022 Country Reports on Human Rights Practices: Monaco																																					Bureau of Democracy, Human Rights, and Labor																																																																																							Download Report																																																							Translations																																																																 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															Section 1. Respect for the Integrity of the Person																																																									a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																																											b. Disappearance																																																																											c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																																			Prison and Detention Center Conditions																																																																																																																		d. Arbitrary Arrest or Detention																																																																			Arrest Procedures and Treatment of Detainees																																																																																																																		e. Denial of Fair Public Trial																																																																			Trial Procedures																																																								Political Prisoners and Detainees																																																								Civil Judicial Procedures and Remedies																																																																																																																		f. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																																																	Section 2. Respect for Civil Liberties																																																									a. Freedom of Expression, Including for Members of the Press and Other Media																																																																			Internet Freedom																																																																																																																		b. Freedoms of Peaceful Assembly and Association																																																																											c. Freedom of Religion																																																																											d. Freedom of Movement and the Right to Leave the Country																																																																											e. Protection of Refugees																																																																																	Section 3. Freedom to Participate in the Political Process																																																									Elections and Political Participation																																																																																	Section 4. Corruption and Lack of Transparency in Government																																																																																		Section 5. Governmental Posture Toward International and Nongovernmental Investigation of Alleged Abuses of Human Rights																																																																																		Section 6. Discrimination and Societal Abuses																																																									Women																																																																											Systemic Racial or Ethnic Violence and Discrimination																																																																											Children																																																																											Antisemitism																																																																											Trafficking in Persons																																																																											Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																																											Persons with Disabilities																																																																																	Section 7. Worker Rights																																																									a. Freedom of Association and the Right to Collective Bargaining																																																																											b. Prohibition of Forced or Compulsory Labor																																																																											c. Prohibition of Child Labor and Minimum Age for Employment																																																																											d. Discrimination with Respect to Employment and Occupation																																																																											e. Acceptable Conditions of Work																																																																																																							EXECUTIVE SUMMARY				The Principality of Monaco is a constitutional monarchy in which the sovereign Prince plays the leading governmental role. The Prince appoints the government, which consists of a minister of state and five ministers. The Prince shares the country’s legislative power with the popularly elected National Council, which is elected every five years. Multiparty elections for the National Council in 2018 were considered free and fair.The national police maintain public order and the security of persons and property. The Palace Guard maintain the security of the Prince, the royal family, and their property. Both report to the Ministry of Interior. Civilian authorities maintained effective control over the security forces. There were no reports security forces committed abuses.Significant human rights issues included the enforcement of laws criminalizing libel and offending the Prince.The government had mechanisms in place to identify and punish officials who may commit human rights abuses or engage in official corruption.																														Section 1.													 Respect for the Integrity of the Person												    																																																a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings										There were no reports that the government or its agents committed arbitrary or unlawful killings.																																				b. Disappearance										There were no reports of disappearances by or on behalf of government authorities.																																				c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses										The constitution and law prohibit such practices, and there were no reports that government officials employed them.  Impunity was not a significant problem in the security forces.																Prison and Detention Center Conditions						There were no significant reports regarding prison or detention center conditions that raised human rights concerns.  Authorities usually sent noncitizens sentenced to long prison terms to France to serve their terms.Administration:  Authorities conducted investigations of credible allegations of mistreatment.Independent Monitoring:  The government permitted monitoring by independent nongovernmental observers such as regularly scheduled visits by the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment.																										d. Arbitrary Arrest or Detention										The constitution and law prohibit arbitrary arrest and detention and provide for the right of any person to challenge the lawfulness of his or her arrest or detention in court.  The government generally observed these requirements.																Arrest Procedures and Treatment of Detainees						An arrest warrant is required.  A detainee must appear before an investigating magistrate within 24 hours of arrest to be informed of the charges and the detainee’s rights under the law, and authorities generally respected this requirement.  There is a functioning bail system.  Authorities released most detainees without bail, but the investigating magistrate may order detention on grounds that the suspect might flee or interfere with the investigation of the case.  Detainees generally had prompt access to a lawyer, and the government provided one to indigent defendants.																										e. Denial of Fair Public Trial										The constitution and law provide for an independent judiciary, and the government generally respected judicial independence and impartiality.																Trial Procedures						The law provides for the right to a fair trial, and an independent judiciary generally enforced this right.  Except for cases involving minors, trials were conducted in public, usually before a judge or tribunal of judges.						Political Prisoners and Detainees						There were no reports of political prisoners or detainees.						Civil Judicial Procedures and Remedies						The country has an independent and impartial judiciary in civil matters, and residents have access to a court to bring lawsuits seeking damages for, or cessation of, human rights violations.  Plaintiffs regularly used available administrative remedies to seek redress for alleged wrongs.  Persons may appeal court decisions involving alleged violations of the European Convention on Human Rights to the European Court of Human Rights after they exhaust all avenues of appeal in national courts.																										f. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence										The constitution and law prohibit such actions, and there were no reports the government failed to respect these prohibitions.																																					Section 2.													 Respect for Civil Liberties												    																																																a. Freedom of Expression, Including for Members of the Press and Other Media										The constitution and law provide for freedom of expression, including for members of the press and other media, and the government generally respected this right.  An independent press, an effective judiciary, and a functioning democratic political system combined to promote freedom of expression, including for members of the media.Freedom of Expression:  Although rarely enforced, the law prohibits offending the Prince and provides for punishment of from six months to five years in prison per offense.  If not committed publicly, the act may be punished with imprisonment from six months to three years.  The law also prohibits offending the family of the Prince and provides for punishment of from six months to three years in prison.  If not committed publicly, the act is punishable with imprisonment from three months to one year.  Authorities did not charge anyone with violating these statutes during the year.Libel/Slander Laws:  The law prohibits defamation or insult, particularly against citizens responsible for a public service or office, and it provides for imprisonment of up to two years depending on the severity of the case.  There were four libel cases during the year and authorities enforced these laws effectively.																Internet Freedom						The government did not restrict or disrupt access to the internet or censor online content, and there were no credible reports that the government monitored private online communications without appropriate legal authority.																										b. Freedoms of Peaceful Assembly and Association										The constitution and law provide for the freedoms of peaceful assembly and association, and the government generally respected these rights.																																				c. Freedom of Religion										See the Department of State’s  International Religious Freedom Report.																																				d. Freedom of Movement and the Right to Leave the Country										The law provides for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights.																																				e. Protection of Refugees										Access to Asylum: The law does not provide for the granting of asylum or refugee status, and the government has not established a system for providing protection to refugees. Given its very small size (0.78 square miles) and extremely tight housing market, Monaco is not normally a refugee-receiving country, and France handles immigration matters. Nonetheless, due to the war in Ukraine, Monaco resettled 260 displaced Ukrainians by July, hosted almost exclusively by family or friends living in the country. The government can grant temporary protection (like in France), guaranteeing assistance measures and residence rights to live and work in the country. The beneficiaries do not have the status of asylum seeker or refugee as defined by the United Nations Convention of July 28, 1951 on the Status of Refugees.																																					Section 3.													 Freedom to Participate in the Political Process												    																																																Elections and Political Participation										Recent Elections: Observers considered the National Council elections in 2018 to be free and fair.Participation of Women and Members of Minority Groups: No laws limit the participation of women and members of historically marginalized groups in the political process, and they did participate.																																					Section 4.													 Corruption and Lack of Transparency in Government												    																																															The law provides criminal penalties for corruption by officials, and the government generally implemented these laws effectively.  There were no reports of government corruption during the year.																																					Section 5.													 Governmental Posture Toward International and Nongovernmental Investigation of Alleged Abuses of Human Rights												    																																															While the government did not restrict the establishment or operation of groups devoted to monitoring human rights, none existed in the country.  International human rights organizations generally operated without government restriction, investigating and publishing their findings on human rights cases.  In general, government officials were responsive to the views of international organizations.Government Human Rights Bodies:  The government’s mediation service is available to residents seeking redress against administrative decisions.  The Office of the High Commissioner for the Protection of the Rights and Freedoms and Mediation protects human rights and fights discrimination.  While the office acted independently, had adequate resources, and was considered effective, the government does not allow the high commissioner to initiate investigations on her own.																																					Section 6.													 Discrimination and Societal Abuses												    																																																Women										Rape and Domestic Violence: Rape, including spousal rape, is a criminal offense with penalties of five to 20 years in prison, depending on the type of offense. The law prohibits domestic violence, and survivors may bring criminal charges against abusive spouses. Domestic violence that leads to a significant injury carries a potential sentence of 10 to 20 years in prison. The government enforced the law effectively.In April a stabbing suspect charged with attempted murder of his wife in the country was imprisoned in France as he awaited extradition.The country increased training during the year for professionals handling survivors of gender-based violence, raised awareness through a domestic violence prevention program, and cooperated with France to enroll perpetrators in remediation courses. The Department of Social Welfare and Social Services also provides for emergency accommodation and has agreements with various hotels to take in women who are forced to leave their homes.Sexual Harassment: Sexual harassment is a criminal offense with penalties of three months to three years in prison, depending on the type of offense. The government enforced the law efficiently. There were no reports of sexual harassment during the year.Reproductive Rights: There were no reports of coerced abortion or involuntary sterilization on the part of government authorities.Through the Victims of Criminal Offences Help Association program, the government provided access to sexual and reproductive health services for survivors of sexual violence. Emergency contraception was available as part of clinical management of rape.Discrimination:  The law provides for the equality of men and women. The government enforced the law effectively.																																				Systemic Racial or Ethnic Violence and Discrimination										The law does not clearly define discrimination, but it does prohibit any defamation, call to violence, or public expression of hate against anyone based upon gender, real or presumed race or ethnic origin, handicap, sexual orientation, or religion. Penalties for violations can include fines or up to six months in prison; violations can also be aggravating factors that lead to harsher sentences for other related crimes. The authorities enforced the law effectively.Civil servant regulations were reformed July 2, with changes to be implemented in 2023. Article 17, amended, states there can be made no distinction between civil servants based on gender, political, philosophical, religious or trade union opinions, sexual orientation, state of health, disability, physical appearance, or ethnicity.																																				Children										Birth Registration: Citizenship may be transmitted by a citizen parent. The government registered births immediately.Child Abuse: There are robust laws against child abuse, with punishments ranging from restraining orders to 20 years in prison based up on the severity of the case. The law provides for physical, medical, and legal aid for any child victim.Child, Early, and Forced Marriage: The legal minimum age of marriage in the country is 18 for women and men. Children younger than 18 need parental authorization to marry.Sexual Exploitation of Children: Child commercial sexual exploitation and child pornography are illegal, and authorities enforced the law. The minimum legal age for consensual sex is 15.																																				Antisemitism										According to the European Jewish Congress, the Jewish community numbered approximately 1,000 persons, most of whom were not citizens of the country but foreign residents. According to the Monaco-based Association Culturelle Israelite, there were no known reports of antisemitic acts.																																				Trafficking in Persons										There were no confirmed reports during the year that traffickers exploited domestic or foreign victims in Monaco or that traffickers exploited victims from Monaco abroad.																																				Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics										Criminalization: Consensual same-sex conduct between adults is legal for both men and women.Violence against LGBTQI+ Persons: There were no reports of police or other government agents inciting, condoning, tolerating, or perpetrating violence against lesbian, gay, bisexual, transexual, queer, or intersex (LGBTQI+) persons or those reporting such abuses. There were no known cases of nonstate actor violence targeting LGBTQI+ individuals.Discrimination: The law provides for fines, imprisonment, or both for persons who provoke hatred or violence against a person or group due to their sexual orientation, real or perceived. The government enforced these laws. There were no known instances of discrimination against LGBTQI+ persons with respect to employment, housing, nationality, and access to government services.Availability of Legal Gender Recognition:  There is no law on legal gender recognition, creating a case-by-case situation in the courts. In July, a court allowed for the first time an individual to change gender on their civil status records, after the petitioner had undergone gender reassignment surgery in France and changed their French legal documents.Involuntary or Coercive Medical or Psychological Practices Specifically Targeting LGBTQI+ Individuals: There were no known cases of involuntary or coercive medical and psychological practices specifically targeting LGBTQI+ individuals. Such practices are not illegal.Restrictions of Freedom of Expression, Association, or Peaceful Assembly: There were no known cases of restrictions against freedom of expression, association, or peaceful assembly imposed on members of the LGBTQI+ community.																																				Persons with Disabilities										The constitution and the law prohibit discrimination against persons with disabilities in education, employment, health services, information, communications, buildings, transportation, the judicial system, and other state services. The government effectively implemented these laws. There were no known cases of discrimination against persons with disabilities in education, employment, health services, information, communications, buildings, transportation, the judicial system, and other state services.																																					Section 7.													 Worker Rights												    																																																a. Freedom of Association and the Right to Collective Bargaining										The law provides for the right of workers, including foreign workers, to form and join independent unions, bargain collectively, and conduct legal strikes; government workers do not have the right to strike. Antiunion discrimination is prohibited. The law requires the majority of members of a trade union’s bureau to be citizens of Monaco or France. Union representatives may be fired only with the agreement of a commission that includes two members from the employers’ association and two from the labor movement. The government and employers generally respected freedom of association and the right to bargain collectively, and employer organizations and trade unions negotiated agreements on working conditions that were largely respected.The government generally enforced the law. Penalties were commensurate with those for other laws involving denials of civil rights. Penalties were regularly applied against violators. The government provides the assistance of mediators for private or professional conflicts to avoid long and costly court procedures and to find a solution acceptable to all parties to the dispute.																																				b. Prohibition of Forced or Compulsory Labor										The constitution and law prohibit and criminalize all forms of forced or compulsory labor. Information regarding the adequacy of resources, remediation effort, inspection sufficiency, and penalties for violations was not available. No cases alleging forced labor were filed during the year. The government effectively enforced the law. It was impossible for authorities to know whether unreported cases of forced domestic labor took place in homes or on yachts, because the labor law prohibits inspectors from entering private residences unannounced without a warrant.																																				c. Prohibition of Child Labor and Minimum Age for Employment										The law prohibits the worst forms of child labor. The minimum age for employment is 16. Employment opportunities for individuals between the ages of 16 and 18 are severely restricted: individuals younger than 18 are allowed to work eight hours per day to a maximum of 39 hours per week and are barred from night work. The government enforced the law effectively. Penalties were commensurate with those for similar crimes. There were no confirmed reports during the year of the worst forms of child labor.																																				d. Discrimination with Respect to Employment and Occupation										The law requires equal pay for equal work. No data were available to substantiate any gender-based pay discrepancy. A 2019 agreement signed by representatives of seven labor-based industries and organizations in the country formalized employers’ commitments to promote workplace equality and covers 99 percent of employers in the country. The law allows the firing of employees without justification (except for French members of trade unions described in section 7.a.).The government sufficiently enforced the laws, and penalties for violations were commensurate with other laws related to civil rights. Penalties were regularly applied against violators.In July the Monegasque Institute of Statistics and Economic Studies published the first-ever gender wage gap study for the country, based on 2019 figures to avoid a COVID-19-crisis bias. The study indicated that the public sector narrows the gap by enforcing transparent pay practices. Pay scales are not mandatory in the private sector, where women earn a median salary 5.9 percent lower on average than that of men.																																				e. Acceptable Conditions of Work										Wage and Hour Laws: There is a minimum wage, which exceeded the official estimate of the poverty level.Occupational Safety and Health: The laws and government decree establishing occupational safety and health (OSH) standards were appropriate for the main industries of the country. The same inspectors that cover wage and hour laws are responsible for enforcing occupational safety and health laws.Wage, Hour, and OSH Enforcement: Workplace health and safety committees and government labor inspectors effectively enforced the minimum wage, overtime, and OSH laws. Penalties were commensurate with those for similar violations, and inspection was sufficient to enforce compliance. Penalties were regularly applied against violators.The Department of Employment in the Ministry of Health and Social Affairs is responsible for enforcing wage and hour laws. The inspectorate had an adequate number of labor inspectors. The chief inspector answered directly to the director of the Department of Employment. Labor inspectors informed employers and employees on all matters related to labor laws and arbitrated, mediated, and reconciled labor/management disputes. They carried out regular on-site inspections, including unannounced visits, to ensure employers respected all requirements of the law.Informal Sector: Data were not available on enforcement of occupational safety and health standards in the small informal economy.																																				    							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Respect for the Integrity of the Person																																							a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																						b. Disappearance																																																						c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																				Prison and Detention Center Conditions																																																																																				d. Arbitrary Arrest or Detention																																																				Arrest Procedures and Treatment of Detainees																																																																																				e. Denial of Fair Public Trial																																																				Trial Procedures																																												Political Prisoners and Detainees																																												Civil Judicial Procedures and Remedies																																																																																				f. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																			Section 2. Respect for Civil Liberties																																							a. Freedom of Expression, Including for Members of the Press and Other Media																																																				Internet Freedom																																																																																				b. Freedoms of Peaceful Assembly and Association																																																						c. Freedom of Religion																																																						d. Freedom of Movement and the Right to Leave the Country																																																						e. Protection of Refugees																																																			Section 3. Freedom to Participate in the Political Process																																							Elections and Political Participation																																																			Section 4. Corruption and Lack of Transparency in Government																																																	Section 5. Governmental Posture Toward International and Nongovernmental Investigation of Alleged Abuses of Human Rights																																																	Section 6. Discrimination and Societal Abuses																																							Women																																																						Systemic Racial or Ethnic Violence and Discrimination																																																						Children																																																						Antisemitism																																																						Trafficking in Persons																																																						Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																						Persons with Disabilities																																																			Section 7. Worker Rights																																							a. Freedom of Association and the Right to Collective Bargaining																																																						b. Prohibition of Forced or Compulsory Labor																																																						c. Prohibition of Child Labor and Minimum Age for Employment																																																						d. Discrimination with Respect to Employment and Occupation																																																						e. Acceptable Conditions of Work																																																									Tags																					Bureau of Democracy, Human Rights, and Labor																								Bureau of European and Eurasian Affairs																								Monaco
- Monaco’s National Day Antony J. Blinken, Secretary of StateOn behalf of the United States of America, I offer my congratulations to the people of Monaco as you celebrate your National Day.The Monégasque and American people have enjoyed a productive friendship since 1866. Our governments have worked together to promote human rights, freedom, and a comprehensive response to the climate crisis.  H.S.H. Prince Albert II has been a prominent voice on environmental issues and has shown an unwavering commitment to protect our oceans from the threats of pollution and overfishing.  The United States looks forward to continuing our partnership and collaboration with Monaco in these and other vital areas.Please accept my best wishes as you celebrate a most joyous National Day.
- France and Monaco HomeReportsBureau of Economic and Business Affairs2022 Investment Climate Statements&#8230;France and Monaco				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2022 Investment Climate Statements: France and Monaco																																																																																												 In this section										/																							Executive Summary																																													Executive Summary																															1. Openness To, and Restrictions Upon, Foreign Investment																																																									Policies Towards Foreign Direct Investment																																																																											Limits on Foreign Control and Right to Private Ownership and Establishment																																																																											Other Investment Policy Reviews																																																																											Business Facilitation																																																																											Outward Investment																																																																																	2. Bilateral Investment and Taxation Treaties																																																																																		3. Legal Regime																																																									Transparency of the Regulatory System																																																																											International Regulatory Considerations																																																																											Legal System and Judicial Independence																																																																											Laws and Regulations on Foreign Direct Investment																																																																											Competition and Antitrust Laws																																																																											Expropriation and Compensation																																																																											Dispute Settlement																																																																			ICSID Convention and New York Convention																																																								Investor-State Dispute Settlement																																																								International Commercial Arbitration and Foreign Courts																																																																																																																		Bankruptcy Regulations																																																																																	4. Industrial Policies																																																									Investment Incentives																																																																											Foreign Trade Zones/Free Ports/Trade Facilitation																																																																											Performance and Data Localization Requirements																																																																																	5. Protection of Property Rights																																																									Real Property																																																																											Intellectual Property Rights																																																																																	6. Financial Sector																																																									Capital Markets and Portfolio Investment																																																																											Money and Banking System																																																																											Foreign Exchange and Remittances																																																																			Foreign Exchange																																																								Remittance Policies																																																																																																																		Sovereign Wealth Funds																																																																																	7. State-Owned Enterprises																																																																												Privatization Program																																																																																	8. Responsible Business Conduct																																																																												Additional Resources																																																																																	9. Corruption																																																																												Resources to Report Corruption																																																																																	10. Political and Security Environment																																																																																		11. Labor Policies and Practices																																																																																		12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs																																																																																		13. Foreign Direct Investment and Foreign Portfolio Investment Statistics																																																																																		14. Contact for More Information																																																																																		Special Section on Monaco																																																																												Investment Regime of Monaco																																																																											Size of the Economy of Monaco																																																																																																							Executive Summary				France welcomes foreign investment and has a stable business climate that attracts investors from around the world. The French government devotes significant resources to attracting foreign investment through policy incentives, marketing, overseas trade promotion offices, and investor support mechanisms. France has an educated population, first-rate universities, and a talented workforce. It has a modern business culture, sophisticated financial markets, a strong intellectual property rights regime, and innovative business leaders. The country is known for its world-class infrastructure, including high-speed passenger rail, maritime ports, extensive roadway networks, a dense network of public transportation, and efficient intermodal connections. High-speed (3G/4G) telephony is nearly ubiquitous, and France has begun its 5G roll-out in key metropolitan cities.In 2021, the United States was the leading foreign investor in France in terms of new jobs created (10,118) and second in terms of new projects invested (247). The total stock of U.S. foreign direct investment in France reached $91 billion. More than 4,500 U.S. firms operate in France, supporting over 500,000 jobs, making the United States the top foreign investor overall in terms of job creation.Following the election of French President Emmanuel Macron in May 2017, the French government implemented significant labor market and tax reforms. By relaxing the rules on companies to hire and fire employees, the government cut production taxes by 15 percent in 2021, and corporate tax will fall to 25 percent in 2022. Surveys of U.S. investors in 2021 showed the greatest optimism about the business operating environment in France since 2008. Macron’s reform agenda for pensions was derailed in 2018, however, when France’s Yellow Vest protests—a populist, grassroots movement for economic justice—rekindled class warfare and highlighted wealth and, to a lesser extent, income inequality.The onset of the pandemic in 2020 shifted Macron’s focus to mitigating France’s most severe economic crisis in the post-war era. The economy shrank 8.3 percent in 2020 compared to the year prior, but with the help of unprecedented government support for businesses and households, economic growth reached seven percent in 2021. The government’s centerpiece fiscal package was the €100 billion ($110 billion) France Relance plan, of which over half was dedicated to supporting businesses. Most of the support was accessible to U.S. firms operating in France as well. The government launched a follow-on investment package in late 2021 called “France 2030” to bolster competitiveness, increase productivity, and accelerate the ecological transition.Also in 2020, France increased its protection against foreign direct investment that poses a threat to national security. In the wake of the health crisis, France’s investment screening body expanded the scope of sensitive sectors to include biotechnology companies and lowered the threshold to review an acquisition from a 25 percent ownership stake by the acquiring firm to 10 percent, a temporary provision set to expire at the end of 2022. In 2020, the government blocked at least one transaction, which included the attempted acquisition of a French firm by a U.S. company in the defense sector. In early 2021, the French government threated to block the acquisition of French supermarket chain Carrefour by Canada’s Alimentation Couche-Tard, which eventually scuttled the deal.Key issues to watch in 2022 are: 1) the impact of the war in Ukraine and measures by the EU and French government to mitigate the fallout; 2) the degree to which COVID-19 and resulting supply chain disruptions continue to agitate the macroeconomic environment in France and across Europe, and the extent of the government’s continued support for the economic recovery; and 3) the creation of winners and losers resulting from the green transition, the degree to which will be largely determined by firms’ operating models and exposure to fossil fuels.Table 1: Key Metrics and RankingsMeasureYearIndex/RankWebsite AddressTI Corruption Perceptions Index202122 of 180http://www.transparency.org/research/cpi/overview Global Innovation Index202111 of 132https://www.globalinnovationindex.org/analysis-indicator U.S. FDI in partner country ($M USD, historical stock positions)2020USD 91.153https://apps.bea.gov/international/factsheet/ World Bank GNI per capita2020USD 39.480http://data.worldbank.org/indicator/NY.GNP.PCAP.CD 																																					1. Openness To, and Restrictions Upon, Foreign Investment						    																																																Policies Towards Foreign Direct Investment										France welcomes foreign investment. In the current economic climate, the French government sees foreign investment as a means to create additional jobs and stimulate growth. Investment regulations are simple, and a range of financial incentives are available to foreign investors. Surveys of U.S. investors in 2021 showed the greatest optimism about the business operating environment in France since 2008. U.S. companies find France’s good infrastructure, advanced technology, and central location in Europe attractive. France’s membership in the European Union (EU) and the Eurozone facilitates the efficient movement of people, services, capital, and goods. However, notwithstanding recent French efforts at structural reform, including a reduction in corporate and production tax, and advocacy for a global minimum tax within the European Union, perceived disincentives to investing in France include the persistently high tax environment, ongoing labor law rigidity, and a shortage of skilled labor.																																				Limits on Foreign Control and Right to Private Ownership and Establishment										France is among the least restrictive countries for foreign investment. With a few exceptions in certain specified sectors, there are no statutory limits on foreign ownership of companies. Foreign entities have the right to establish and own business enterprises and engage in all forms of remunerative activity.France maintains a national security review mechanism to screen high-risk investments. French law stipulates that control by acquisition of a domiciled company or subsidiary operating in certain sectors deemed crucial to France’s national interests relating to public order, public security and national defense are subject to prior notification, review, and approval by the Economy and Finance Minister. Other sectors requiring approval include energy infrastructure; transportation networks; public water supplies; electronic communication networks; public health protection; and installations vital to national security. In 2018, four additional categories – semiconductors, data storage, artificial intelligence and robotics – were added to the list requiring a national security review. For all listed sectors, France can block foreign takeovers of French companies according to the provisions of the 2014 Montebourg Decree.On December 31, 2019 the government issued a decree to lower the threshold for vetting of foreign investment from outside Europe from 33 to 25 percent and then lowered it again to 10 percent on July 22, 2020, a temporary provision to prevent predatory investment during the COVID-19 crisis. This lower threshold is set to expire at the end of 2022. The decree also enhanced government-imposed conditions and penalties in cases of non-compliance and introduced a mechanism to coordinate the national security review of foreign direct investments with the European Union (EU Regulation 2019/452). The new European rules entered into force on October 11, 2020. The list of strategic sectors was also expanded to include the following activities listed in the EU Regulation 2019/452: agricultural products, when such products contribute to national food supply security; the editing, printing, or distribution of press publications related to politics or general matters; and R&amp;D activities relating to quantum technologies and energy storage technologies. Separately, France expanded the scope of sensitive sectors on April 30, 2020, to include biotechnology companies.Procedurally, the Minister of Economy, Finance, and Recovery has 30 business days following the receipt of a request for authorization to either: 1) declare that the investor is not required to obtain such authorization; 2) grant its authorization without conditions; or 3) declare that an additional review is required to determine whether a conditional authorization is sufficient to protect national interests. If an additional review is required, the Minister has an additional 45 business days to either clear the transaction (possibly subject to conditions) or prohibit it. The Minister is further allowed to deny clearance based on the investor’s ties with a foreign government or public authority. The absence of a decision within the applicable timeframe is a de facto rejection of the authorization.The government also expanded the breadth of information required in the approval request. For example, a foreign investor must now disclose any financial relationship with or significant financial support from a State or public entity; a list of French and foreign competitors of the investor and of the target; or a signed statement that the investor has not, over the past five years, been subject to any sanctions for non-compliance with French FDI regulations.In 2020, the government blocked at least one transaction—the attempted acquisition of a French firm by a U.S. company in the defense sector. In early 2021, the French government blocked the acquisition of French supermarket chain Carrefour by Canada’s Alimentation Couche-Tard on the basis that it was a threat to France’s food security and national sovereignty.																																				Other Investment Policy Reviews										France has not recently been the subject of international organizations’ investment policy reviews. The OECD Economic Survey for France (November 2021) can be found here:  https://www.oecd.org/economy/france-economic-snapshot/ .																																				Business Facilitation										Business France is a government agency established with the purpose of promoting new foreign investment, expansion, technology partnerships, and financial investment. Business France provides services to help investors understand regulatory, tax, and employment policies as well as state and local investment incentives and government support programs. Business France also helps companies find project financing and equity capital. The agency unveiled a website in English to help prospective businesses that are considering investments in the French market ( https://www.businessfrance.fr/en/invest-in-France ). The U.S. Embassy in Paris also collaborated with Business France to create a map of U.S. investment in each region of France ( https://investinfrance.fr/wp-content/uploads/2017/08/Entreprises-americaines.pdf ).In addition, France’s public investment bank, Bpifrance, assists foreign businesses to find local investors when setting up a subsidiary in France. It also supports foreign startups in France through the government’s French Tech Ticket program, which provides them with funding, a resident’s permit, and incubation facilities. Both business facilitation mechanisms provide for equitable treatment of women and minorities.President Macron prioritized innovation early in his five-year mandate. In 2017, he launched a €10 billion ($11 billion) fund to back disruptive innovation in energy, the digital sector, and the climate transition by privatizing state-owned enterprises and introduced a four-year tech visa for entrepreneurs to come to France. He also introduced tax reforms that would tax capital gains, interest and dividends at a flat 30 percent, instead of the existing top rate of 45 percent.In June 2020, the French government introduced a new €1.2 billion ($1.3 billion) plan to support French startups, concentrating on the health, quantum, artificial intelligence, and cybersecurity sectors. The plan included the creation of a €500 million ($550 million) investment fund to help startups overcome the COVID-19 crisis and continue to innovate. It also comprised a &#8220;French Tech Sovereignty Fund&#8221; launched in December 2020 by France’s public investment bank Bpifrance, with an initial commitment of €150 million ($165 million).In October 2021, President Macron unveiled a €34 billion ($37.4billion) innovation investment strategy between 2022 and 2027, which mirrors the priorities of the European Commission’s investments in digital innovation and decarbonisation. France will invest by 2030 in breakthrough innovation in a wide variety of areas, including small nuclear fission reactors, green hydrogen production facilities, the production of two million electric and hybrid vehicles every year, research on developing France’s first low-carbon airplane, healthy and sustainable foods, and 20 drugs for cancer and chronic diseases as well as the development of new medical devices. Major industrial groups are encouraged to work with startups, which will also benefit from funding under this new plan. This plan comes on top of the €20 billion ($22 billion) from the 2021 Fourth Future Investment Program. A new Secretary General for Investment was appointed in January 2022 to ensure the coordination of these two innovation programs.France’s sectors that traditionally attracted the most investment include aeronautics, agro-foods, digital, nuclear, rail, auto, chemicals and materials, forestry, eco-industries, shipbuilding, health, luxury, and extractive industries. However, Business France and Bpifrance are particularly interested in attracting foreign investment in the tech sector. The French government has developed the “French Tech” initiative to promote France as a location for start-ups and high-growth digital companies. French Tech offices have been established in 17 French cities and over 100 cities globally, including New York, San Francisco, Los Angeles, Shanghai, Hong Kong, Vietnam, Moscow, and Berlin. French Tech has special programs to provide support to startups at various stages of their development. The latest effort has been the creation of the French Tech 120 Program, which provides financial and administrative support to some 123 most promising tech companies. In 2019, €5 billion ($5.9 billion) in venture funding was raised by French startups, an increase of nearly threefold since 2015. Venture capital investment in French startups has doubled from €5.1 billion ($5.6 billion) in 2020 to over €10 billion ($11 billion) in 2021.In March 2021, France launched, with the support of the European Commission and other member states, the Scale-Up Europe initiative bringing together over 300 start-up and scale-up founders, investors, researchers, and corporations, with the goal of creating 10 tech giants each valued at more than €100 billion ($110 billion) by 2030. French authorities supported the Scale-up Europe initiative designed to promote businesses across Europe to expand beyond their local and European markets. As part of that initiative, on February 8, 2022, France inaugurated a new European Investment Fund designed to increase European venture capital funds’ capacity to provide late-stage funding to EU-based start-ups and scale-ups. France and Germany have each committed €1 billion ($1.1 billion), along with €500 million ($565 million) from the European Investment Bank.The website Guichet Enterprises ( https://www.guichet-entreprises.fr/fr/ ) is designed to be a one-stop website for registering a business. The site, managed by the National Institute of Industrial Property (INPI), is available in both French and English although some fact sheets on regulated industries are only available in French on the website.																																				Outward Investment										French firms invest more in the United States than in any other country and support approximately 765,100 American jobs. Total French investment in the United States reached $314.9 billion in 2020. France was still our tenth largest trading partner with approximately $115.7 billion in bilateral trade in 2021. The business promotion agency Business France also assists French firms with outward investment, which it does not restrict.																																												2. Bilateral Investment and Taxation Treaties						    																																															Investments in France by other EU member states are governed by the provisions of the Treaty of Rome and by European Union law. France has Bilateral Investment Treaties (BITs) with 85 countries:  Albania, Algeria, Argentina, Armenia, Azerbaijan, Bahrain, Bangladesh, Bosnia and Herzegovina, Cambodia, Chile, China, Colombia, the Democratic Republic of the Congo, Costa Rica, Cuba, Djibouti, Dominican Republic, Egypt, El Salvador, Equatorial Guinea, Ethiopia, Georgia, Guatemala, Haiti, Honduras, Hong Kong, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kenya, Korea (South), Kuwait, Kyrgyz Republic, Laos, Lebanon, Liberia, Libya, Madagascar, Malaysia, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique, Namibia, Nepal, Nicaragua, Nigeria, North Macedonia, Oman, Pakistan, Panama, Paraguay, Peru, Philippines, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Seychelles, Singapore, Sri Lanka, Sudan, Tajikistan, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, and Zambia.Bilateral Investment Treaties between France and the following countries have been signed but are not in force:  Angola, Belarus, Brazil, Ghana, and Zimbabwe. France previously had BITs with Mauritius and Syria; new BITs with these two countries have been signed but have not yet entered into force.UNCTAD maintains the most current list of ratified and non-ratified BITs, including links to each document:  https://investmentpolicy.unctad.org/international-investment-agreements/countries/72/france .The United States and France have enjoyed a Navigation and Commerce Treaty since 1822, which guarantees national treatment of U.S. citizens.In 2022, the corporate tax rate will complete its gradual taper—which began in 2019—to 25 percent for all companies, regardless of the size of revenues.Since 1994, a Convention between the Government of the United States of America and the Government of the French Republic continues to be in force for the avoidance of double taxation and the prevention of fiscal evasion.  France has tax agreements with 126 countries:  Albania, Algeria, Andorra, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, Cameroon, Canada, Central African Republic, Chile, China, Cyprus, Colombia, the Democratic Republic of the Congo, Côte d’Ivoire, Croatia, Czech Republic, Denmark, Ecuador, Egypt, Estonia, Ethiopia, Finland, Gabon, Georgia, Germany, Ghana, Greece, Guinea, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Island, Israel, Italia, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Korea (South), Kosovo, Kuwait, Kyrgyz Republic, Latvia, Lebanon, Libya, Lithuania, Luxemburg, Macedonia (FYRM), Madagascar, Malaysia, Malawi, Mali, Malta, Mauritania, Mauritius Island, Mayotte, Mexico, Monaco, Mongolia, Montenegro, Morocco, Namibia, Netherlands, New Zealand, New Caledonia, Niger, Nigeria, Norway, Oman, Pakistan, Panama, Philippines, Poland, French Polynesia, Portugal, Qatar, Quebec, Romania, Russian Federation, Saudi Arabia, Saint-Martin, Saint Pierre and Miquelon, Senegal, Serbia, Singapore, South Africa, Spain, Slovakia, Slovenia, Sri Lanka, Sweden, Switzerland, Syria, Tajikistan, Taiwan, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Venezuela, Vietnam, Zambia, and Zimbabwe.   (Ref:  https://www.impots.gouv.fr/portail/les-conventions-internationales .)																																												3. Legal Regime						    																																																Transparency of the Regulatory System										The French government has made considerable progress in the last decade on the transparency and accessibility of its regulatory system. The government generally engages in industry and public consultation before drafting legislation or rulemaking through a regular but variable process directed by the relevant ministry. However, the text of draft legislation is not always publicly available before parliamentary approval. U.S. firms may also find it useful to become members of industry associations, which can play an influential role in developing government policies. Even &#8220;observer&#8221; status can offer insight into new investment opportunities and greater access to government-sponsored projects.To increase transparency in the legislative process, all ministries are required to attach an impact assessment to their draft bills. The Prime Minister&#8217;s Secretariat General (SGG for Secretariat General du Gouvernement) is responsible for ensuring that impact studies are undertaken in the early stages of the drafting process. The State Council (Conseil d&#8217;Etat), which must be consulted on all draft laws and regulations, may reject a draft bill if the impact assessment is inadequate.After experimenting with new online consultations, the Macron Administration is regularly using this means to achieve consensus on its major reform bills. These consultations are often open to professionals as well as citizens at large. Another innovation is to impose regular impact assessments after a bill has been implemented to ensure its maximum efficiency, revising, as necessary, provisions that do not work in favor of those that do.Over past decades, major reforms have extended the investigative and decision-making powers of France&#8217;s Competition Authority. On April 11, 2019, France implemented the European Competition Network (ECN) Directive, which widens the powers of all European national competition authorities to impose larger fines and temporary measures. The Authority publishes its methodology for calculating fines imposed on companies charged with abuse of a dominant position. It issues specific guidance on competition law compliance, and government ministers, companies, consumer organizations, and trade associations now have the right to petition the authority to investigate anti-competitive practices. While the Authority alone examines the impact of mergers on competition, the Minister of the Economy retains the power to request a new investigation or reverse a merger transaction decision for reasons of industrial development, competitiveness, or saving jobs.  The Competition Authority continues to simplify takeover and merger notifications with online procedures via a dedicated platform in 2020 and updated guidelines in English released on January 11, 2021. Since January 2021, the Competition Authority has a new President, Benoît Cœuré, who intends to focus on the impact of the Cloud on all sectors of the French economy.France’s budget documents are comprehensive and cover all expenditures of the central government. An annex to the budget also provides estimates of cost sharing contributions, though these are not included in the budget estimates. Last September, the French government published its first “Green Budget,” as an annex to the 2021 Finance Bill. This event attests to France’s strong commitment, notably under the OECD-led “Paris Collaborative on Green Budgeting” (which France joined in December 2017), to integrate “green” tools into the budget process. In its spring report each year, the National Economic Commission outlines the deficits for the two previous years, the current year, and the year ahead, including consolidated figures on taxes, debt, and expenditures. Since 1999, the budget accounts have also included contingent liabilities from government guarantees and pension liabilities.  The government publishes its debt data promptly on the French Treasury&#8217;s website and in other documents. Data on nonnegotiable debt is available 15 days after the end of the month, and data on negotiable debt is available 35 days after the end of the month.  Annual data on debt guaranteed by the state is published in summary in the CGAF Report and in detail in the Compte de la dette publique. More information can be found at:  https://www.imf.org/external/np/rosc/fra/fiscal.htm France was the first country to include extra-financial reporting in its 2001 New Economic Regulations Law. To encourage companies to develop a social responsibility strategy and limit the negative externalities of globalized trade, the law requires French companies with more than 500 employees and annual revenues above €100 million ($106 million) to report on the social and environmental consequences of their activities and include them in their annual management report. A 2012 decree on corporate social and environmental transparency obligations requires portfolio management companies to incorporate environmental, social, and governance (ESG) criteria in their investment process.France’s 2015 Law on Energy Transition for Green Growth strengthened mandatory carbon disclosure requirements for listed companies and introduced carbon reporting for institutional investors. It requires investors (defined as asset owners and investment managers) to disclose in their annual investor’s report and on their website how they factor ESG criteria and carbon-related considerations into their investment policies. The regulation concerns all asset classes: listed assets, venture capital, bonds, physical assets, etc.																																				International Regulatory Considerations										France is a founding member of the European Union, created in 1957. As such, France incorporates EU laws and regulatory norms into its domestic law. France has been a World Trade Organization (WTO) member since 1995 and a member of GATT since 1948. While developing new draft regulations, the French government submits a copy to the WTO for review to ensure the prospective legislation is consistent with its WTO obligations. France ratified the Trade Facilitation Agreement in October 2015 and has implemented all of its TFA commitments.																																				Legal System and Judicial Independence										French law is codified into what is sometimes referred to as the Napoleonic Code, but is officially the Code Civil des Français, or French Civil Code. Private law governs interactions between individuals (e.g., civil, commercial, and employment law) and public law governs the relationship between the government and the people (e.g., criminal, administrative, and constitutional law).France has an administrative court system to challenge a decision by local governments and the national government; the State Council (Conseil d’Etat) is the appellate court. France enforces foreign legal decisions such as judgments, rulings, and arbitral awards through the procedure of exequatur introduced before the Tribunal de Grande Instance (TGI), which is the court of original jurisdiction in the French legal system.France’s Commercial Tribunal (Tribunal de Commerce or TDC) specializes in commercial litigation.  Magistrates of the commercial tribunals are lay judges, who are well known in the business community and have experience in the sectors they represent. Decisions by the commercial courts can be appealed before the Court of Appeals. France’s judicial system is procedurally competent, fair, and reliable and is independent of the government.The judiciary &#8211; although its members are state employees &#8211; is independent of the executive branch. The judicial process in France is known to be competent, fair, thorough, and time-consuming. There is a right of appeal. The Appellate Court (cour d’appel) re-examines judgments rendered in civil, commercial, employment or criminal law cases. It re-examines the legal basis of judgments, checking for errors in due process and reexamines case facts. It may either confirm or set aside the judgment of the lower court, in whole or in part. Decisions of the Appellate Court may be appealed to the Highest Court in France (cour de cassation).The French Financial Prosecution Office (Parquet National Financier, or PNF), specialized in serious economic and financial crimes, was set up by a December 6, 2013 law and began its activities on February 1, 2014.																																				Laws and Regulations on Foreign Direct Investment										Foreign and domestic private entities have the right to establish and own business enterprises and engage in all sorts of remunerative activities. U.S. investment in France is subject to the provisions of the Convention of Establishment between the United States of America and France, which was signed in 1959 and remains in force. The rights it provides U.S. nationals and companies include:  rights equivalent to those of French nationals in all commercial activities (excluding communications, air transportation, water transportation, banking, the exploitation of natural resources, the production of electricity, and professions of a scientific, literary, artistic, and educational nature, as well as certain regulated professions like doctors and lawyers). Treatment equivalent to that of French or third-country nationals is provided with respect to transfer of funds between France and the United States. Property is protected from expropriation except for public purposes; in that case it is accompanied by payment that is just, realizable and prompt.Potential investors can find relevant investment information and links to laws and investment regulations at  http://www.businessfrance.fr/ .																																				Competition and Antitrust Laws										Major reforms have extended the investigative and decision-making powers of France&#8217;s Competition Authority. France implemented the European Competition Network, or ECN Directive, on April 11, 2019, allowing the French Competition Authority to impose heftier fines (above €3 million / $3.3 million) and temporary measures to prevent an infringement that may cause harm. The Authority issues decisions and opinions mostly on antitrust issues, but its influence on competition issues is growing. For example, following a complaint in November 2019 by several French, European, and international associations of press publishers against Google over the use of their content online without compensation, the Authority ordered the U.S. company to start negotiating in good faith with news publishers over the use of their content online. On December 20, 2019, Google was fined €150 million ($177 million) for abuse of dominant position. Following an in-depth review of the online ad sector, the Competition Authority found Google Ads to be “opaque and difficult to understand” and applied in “an unfair and random manner.” On November 17, 2021, the Competition Authority brokered a “pioneering” five-year deal between the CEOs of Google and French news agency Agence France-Presse for the search giant to pay for the French news agency&#8217;s content. The deal covers the entirety of the EU and follows 18 months of negotiations. It is the first such deal by a news agency under Article 15 of the 2019 European directive creating a neighboring right for the benefit of press agencies and press publishers when online services reproduce press publications in search engine results. France was the first EU member state to implement Article 15 through its July 24, 2019 law, which came into force on October 24, 2019.Additional U.S. firms also continue to fall under review of the Competition Authority. For example, it fined Apple $1.3 billion on March 16, 2020, for antitrust infringements involving the restriction of intra-brand competition and the rarely used French law concept of “abuse of economic dependency.”The Competition Authority launches regular in-depth investigations into various sectors of the economy, which may lead to formal investigations and fines. The Authority publishes its methodology for calculating fines imposed on companies charged with abuse of a dominant position. It issues specific guidance on competition law compliance. Government ministers, companies, consumer organizations and trade associations have the right to petition the authority to investigate anti-competitive practices. While the Authority alone examines the impact of mergers on competition, the Minister of the Economy retains the power to request a new investigation or reverse a merger transaction decision for reasons of industrial development, competitiveness, or saving jobs.A new law on Economic Growth, Activity and Equal Opportunities (known as the &#8220;Macron Law&#8221;), adopted in August 2016, vested the Competition Authority with the power to review mergers and alliances between retailers ex-ante (beforehand). The law provides that all contracts binding a retail business to a distribution network shall expire at the same time. This enables the retailer to switch to another distribution network more easily. Furthermore, distributors are prohibited from restricting a retailer’s commercial activity via post-contract terms. The civil fine incurred for restrictive practices can now amount to up to five percent of the business&#8217;s revenue earned in France.																																				Expropriation and Compensation										In accordance with international law, the national or local governments cannot legally expropriate property to build public infrastructure without fair market compensation. There have been no expropriations of note during the reporting period.																																				Dispute Settlement																										ICSID Convention and New York Convention						France is a member of the World Bank-based International Centre for Settlement of Investment Disputes (ICSID) Convention and a signatory to the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention) which means local courts are obligated to enforce international arbitral awards under this system. The International Chamber of Commerce’s International Court of Arbitration (ICA) has been based in Paris since 1923.France was one of the first countries to enact a modern arbitration law in 1980-1981. In 2011, the French Ministry of Justice issued Decree 2011-48, which introduced further international best practices into French arbitration procedural law. As a result, parties are free to agree orally to settle their disputes through arbitration, subject to standards of due process and a newly enacted principle of procedural efficiency and fairness.						Investor-State Dispute Settlement						The President of the High Civil Court of First Instance (Tribunal de Grande Instance) of Paris has the authority to issue orders related to ad-hoc international arbitration. Paris is the seat of the International Chamber of Commerce’s International Court of Arbitration, composed of representatives from 90 countries, that handles investment as well as commercial disputes.France does not have a bilateral investment treaty with the United States.   The European Commission directly negotiates on behalf of the EU on foreign direct investment since it is part of the EU Common Commercial Policy. In 2015, the EU agreed to pursue an investment court approach to investor-State dispute settlement. While this model is included in the Comprehensive Economic and Trade Agreement (CETA) with Canada and the EU-Vietnam FTA, no actual court has yet been established in any form or context; no disputes have been brought under these post-2015 treaties.						International Commercial Arbitration and Foreign Courts						French law provides conditions for the recognition and the enforcement of foreign arbitral awards in relation to the New York Convention. The provisions of French law are contained in the Code of Civil Procedure and the Code of Civil Enforcement Procedures. The French Civil Code envisions several mechanisms of alternative dispute resolution (ADR) including out-of-court arbitration and conciliation where a judicial conciliator puts an end to a dispute. France is a member of UNCITRAL. Local courts recognize and enforce foreign arbitral awards as mentioned above. The recognition of judgments of foreign courts by French courts is possible, but judgements must be accompanied by the issuance of an exequatur – a legal document issued by a sovereign authority that permits the exercise or enforcement of a foreign judgement.																										Bankruptcy Regulations										France has extensive and detailed bankruptcy laws and regulations. Any creditor, regardless of the amount owed, may file suit in bankruptcy court against a debtor. Foreign creditors, equity shareholders and foreign contract holders have the same rights as their French counterparts. Monetary judgments by French courts on firms established in France are generally made in euros.  Not bankruptcy itself, but bankruptcy fraud – the misstatement by a debtor of his financial position in the context of a bankruptcy – is criminalized. Under France’s bankruptcy code managers and other entities responsible for the bankruptcy of a French company are prevented from escaping liability by shielding their assets (Law 2012-346).  France has adopted a law that enables debtors to implement a restructuring plan with financial creditors only, without affecting trade creditors.  France’s Commercial Code incorporates European Directive 2014/59/EU establishing a framework for the recovery and resolution of claims on insolvent credit institutions and investment firms.  In the World Bank’s 2020 Doing Business Index, France ranked 32nd of 190 countries on ease of resolving insolvency.The Bank of France, the country’s only credit monitor, maintains files on persons having written unfunded checks, having declared bankruptcy, or having participated in fraudulent activities. Commercial credit reporting agencies do not exist in France.																																												4. Industrial Policies						    																																																Investment Incentives										Following the election of President Emmanuel Macron in May 2017, the French government implemented significant labor market and tax reforms. By relaxing the rules on companies to hire and fire employees and by offering investment incentives, Macron improved the operating environment in France, based on surveys of U.S. investors.However, with the onset of the pandemic, Macron put an end to his planned pension reforms and introduced his overhaul of France&#8217;s unemployment insurance in stages throughout 2021. Under his new plan, employees must work longer to qualify for unemployment benefits: they are required to work at least six of the last 25 months, instead of four of the last 28 months under previous rules. Furthermore, employees under 57 years of age, earning €4,500 ($4,952) in pre-tax monthly wages, will see their benefits decrease by 30 percent after the seventh month of unemployment. The other major aspect of this reform mandates that the rules for calculating unemployment benefits are based on an average monthly income from work rather than the number of days worked, as was the case previously. The purpose is to ensure unemployment benefits never exceed the amount of the average monthly net salary (which is currently the case for some beneficiaries).In 2021, the government’s focus shifted to mitigating France’s most severe economic crisis in the post-war era. The economy shrank 8.3 percent in 2020 compared to the year prior as a result of the COVID-19 pandemic. In response, the government implemented extensive direct fiscal support to households and businesses in 2020 and 2021. The “France Relaunch” recovery program was mainly comprised of loan guarantees, unemployment schemes that support workers’ wages, subsidies to vulnerable sectors, investment in green and developing technologies, production tax cuts and other tax benefits, and funding for research and development. The cost of the emergency measures was around €70 billion ($76.9 billion) in 2020 (2.9 percent of 2019 GDP), according to the national accounts. In 2021, the measures reached €64 billion ($70.3 billion), or 2.6 percent of 2019 GDP. The government’s agenda aims to bolster competitiveness, increase productivity, and accelerate the ecological transition.In addition, the authorities announced a new investment plan to 2030 in October 2021. The plan, called “France 2030,” allocates €30 billion ($33 billion) over five years and aims to complement France Relance recovery plan. “France 2030” targets further investment in the energy sector (€8 billion/$8.8 billion), as well as the health (€7 billion/$7 billion) and transport sectors (€4 billion/$4.4 billion). The permanent production tax cuts (€10 billion annually), included in France Relance, bring the estimated level of support to around 7.1 percent of 2019 GDP for the period 2020-27.Both “France Relaunch” and “France 2030” fiscal packages support France’s green transition, the “decarbonization of the French economy,” and the “French green hydrogen plan.” Measures include the energy renovation of public buildings, private housing, social housing, and the operating premises of VSEs (Very Small Enterprises) and SMEs (Small and Medium Enterprises); support for the rail sector in order to renovate the national network and develop freight; development of green hydrogen; support for public transport and the use of bicycles; aid for industrial companies to invest in equipment that emits less CO2; and support for the green transition of agricultural.“France 2030” supports the transformation of France&#8217;s automotive, aerospace, digital, green industry, biotechnology, culture, and healthcare sectors. Its objectives include the development of small-scale nuclear reactors, becoming a leader in green hydrogen (hydrogen made using renewable energy sources), producing two million electric and hybrid vehicles, and decarbonizing France’s industry by reducing greenhouse gas emissions by 35 percent relative to 2015. Of the plan’s €30 billion ($33.8 billion) to be invested over the five years, €3-4 billion ($3.4-4.5 billion) will be spent beginning in 2022. Additionally, one-third of France’s €100 billion ($106 billion) “France Relance” pandemic recovery package is allocated to the ecological transition, including energy sector related investments. The plan also targets green technology, including the development of a hydrogen economy. With approximately two thirds of its electricity coming from nuclear power, France supports the use of nuclear energy to meet near-term emissions reductions targets. Of the developed economies, France has one of the lowest rates of greenhouse gas emissions per capita and per unit of GDP due to its reliance on nuclear power. France aims to phase out fossil fuels over the next decade, shut down the last of its coal plants by 2022, and end public financial support for fossil fuels and natural gas by 2025 and 2035, respectively. In October 2020, France announced it would phase out export guarantees for foreign projects involving fossil fuels by 2035.France’s “Ma Prime Renov” scheme allocates €1.4 billion to homeowners to finance insulation, heating, ventilation, or energy audit works for single-family house or apartments in collective housing. Such investment will finance the thermal renovation of 400,000 households. To guarantee quality standards, the renovation projects must be carried out by companies with a label classified as “recognized as guarantor of the environment.”Former PM Jean Castex presented in March 2022 France’s “Resilience Plan” to support households and businesses affected by sanctions associated with the Russia-Ukraine conflict. The first portion of the plan provides support for specific sectors impacted directly by the conflict: fisheries, agriculture and livestock, transportation and trucking, and construction. There are also non-sectoral support targeting exporting firms and energy-intensive companies, plus continued state-guaranteed loans and delayed tax collection for companies facing higher energy costs and exports difficulties. The additional measures in the “Resilience Plan” will cost the government an additional €5-6 billion ($5.5-6.6 billion), on top of previously-implemented measures that include a gas price cap (€10 billion/ $11 billion), electricity price cap (€8 billion/ $8.8 billion), and energy cheques and inflation offsets (€2 billion/ $2.2 billion).																																				Foreign Trade Zones/Free Ports/Trade Facilitation										France is subject to all EU free trade zone regulations. These allow member countries to designate portions of their customs’ territory as duty-free, where value-added activity is limited. France has several duty-free zones, which benefit from exemptions on customs for storage of goods coming from outside of the European Union. The French Customs Service administers them and provides details on its website ( http://www.douane.gouv.fr ). French legal texts are published online at  http://legifrance.gouv.fr .In September 2018, President Macron announced the extension of 44 Urban Free Zones (ZFU) in low-income neighborhoods and municipalities with at least 10,000 residents.  The program provides incentives for employers, who have created 600 new jobs since 2016. Incentives include exemption from payment of payroll taxes and certain social contributions for five years, financed by €15 million ($17.7 million) a year in State funds.																																				Performance and Data Localization Requirements										While there are no mandatory performance requirements established by law, the French government will generally require commitments regarding employment or R&amp;D from both foreign and domestic investors seeking government financial incentives. Incentives like PAT regional planning grants (Prime d&#8217;Amenagement du Territoire pour l’Industrie et les Services) and related R&amp;D subsidies are based on the number of jobs created, and authorities have occasionally sought commitments as part of the approval process for acquisitions by foreign investors.The French government imposes the same conditions on domestic and foreign investors in cultural industries:  all purveyors of movies and television programs (i.e., television broadcasters, telecoms operators, internet service providers and video services) must contribute a percentage of their revenues toward French film and television productions. They must also abide by broadcasting cultural content quotas (minimum 40 percent French, 20 percent EU).The 2018 Directive on audio-visual media services, implemented in France by a December 21, 2020 government decree, requires streaming services exceeding a certain revenue threshold to contribute 20 or 25 percent of their revenues in France to the development of French and European production, depending on how quickly they show movies after their theatrical release. For example, Netflix has signed the agreement under the new windowing rules and will benefit from having access to movies 15 months after their theatrical release. Other streaming services such as Disney Plus will have a 17-month window for new films. Netflix, Amazon, Disney Plus, and Apple TV Plus signed in December 2021 an agreement with France’s broadcasting authority CSA to start investing 20 percent of their annual revenues in French content.																																												5. Protection of Property Rights						    																																																Real Property										Real property rights are regulated by the French civil code and are uniformly enforced. The World Bank’s Doing Business Index ranks France 32nd of 190 on registering property. French civil-law notaries (notaires) – highly specialized lawyers in private practice appointed as public officers by the Justice Ministry – handle residential and commercial conveyance and registration, contract drafting, company formation, successions, and estate planning. The official system of land registration (cadastre) is maintained by the French public land registry under the auspices of the French tax authority (Direction Generale des Finances Publiques or DGFiP), available online at  http://www.cadastre.gouv.fr . Mortgages are widely available, usually for a 15-year period.																																				Intellectual Property Rights										France is a strong defender of intellectual property rights (IPR). Under the French system, patents and trademarks protect industrial property, while copyrights protect literary/artistic property. By virtue of the Paris Convention , U.S. nationals have a priority period following filing of an application for a U.S. patent or trademark in which to file a corresponding application in France:  twelve months for patents and six months for trademarks.Counterfeiting is a costly problem for French companies, and the government of France maintains strong legal protections and a robust enforcement mechanism to combat trafficking in counterfeit goods &#8212; from copies of luxury goods to fake medications &#8212; as well as the theft and illegal use of IPR. The French Intellectual Property Code has been updated repeatedly over the years to address this challenge, most recently in 2019 with the implementation of the so-called Action Plan for Business Growth and Transformation or PACTE Law (Plan d’Action pour la Croissance et la Transformation des Entreprises).  This law reinforced France’s anti-counterfeiting legislation and implemented EU Directive 2015/2436 of the Trademark Reform Package. It increased the Euro amount for damages to companies that are victims of counterfeiting and extends trademark protection to smartcard technology, certain geographic indications, plants, and agricultural seeds. The legislation also increased the statute of limitations for civil suits from three to ten years and strengthened the powers of customs officials to seize fake goods sent by mail or express freight.  France also adopted legislation in 2019 to implement EU Directive 2019/790 on Copyright and Related Rights in the Digital Single Market.The government also reports on seizures of counterfeit goods. On February 22, 2021, the government launched a new French customs action plan to combat counterfeiting for the 2021-2022 calendar year. Customs seizures in France have increased from 200,000 in 1994 to 5.64 million in 2020, and a record 9.1 million in 2021 (+ 62.5 percent compared to 2020). This new action plan focuses on improved intelligence gathering, investigation, litigation, and cooperation between all the stakeholders involved, including the Customs Office, which investigates fraud cases; the National Institute of Industrial Property, which oversees patents, trademarks, and industrial design rights; and France’s top private sector anti-counterfeiting organization, UNIFAB.France has robust laws against online piracy. A law on the regulation and protection of public access to cultural works in the digital era approved by Parliament on September 29, 2021 established the Regulatory Authority for Audiovisual and Digital Communication (ARCOM) from the merger of the French Audiovisual Authority (CSA) and the French digital piracy agency HADOPI (High Authority for the Dissemination of Artistic Works and the Protection of Rights on Internet or Haute Autorite pour la Diffusion des Œuvres et la Protection des droits sur Internet). The HADOPI element of ARCOM administers a “graduated response” system of warnings and fines and has taken enforcement action against several online pirate sites. HADOPI traditionally cooperates closely with the U.S. Patent and Trademark Office (USPTO) including pursuing voluntary arrangements to single out awareness about intermediaries that facilitate or fund pirate sites. The new law grants ARCOM wider investigative powers to close down mirror sites, as well as blacklist and block access to websites that repeatedly infringe on copyrights. The bill also introduces a fast-track remedy to prevent the illegal broadcast of sporting events. The establishment of this new authority was delayed by the COVID-19 pandemic, and the new authority was finally established in January 2022. The government also issued an order on May 12, 2021, enforcing in France the EU Directive on Copyright and Related Rights in the Digital Single Market (CDSM), which holds content-sharing platforms liable for the unauthorized communication of copyrighted content. The United States will continue to monitor ways this legislation may impact U.S. stakeholders.France does not appear on USTR’s 2020 Special 301 Report.  USTR’s 2020 Notorious Market report continues to list France as host to illicit streaming and copyright infringement websites.  For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at  http://www.wipo.int/directory/en/ .																																												6. Financial Sector						    																																																Capital Markets and Portfolio Investment										There are no administrative restrictions on portfolio investment in France, and there is an effective regulatory system in place to facilitate portfolio investment. France’s open financial market allows foreign firms easy access to a variety of financial products, both in France and internationally. France continues to modernize its marketplace; as markets expand, foreign and domestic portfolio investment has become increasingly important. As in most EU countries, France’s listed companies are required to meet international accounting standards. Some aspects of French legal, regulatory, and accounting regimes are less transparent than U.S. systems, but they are consistent with international norms. Foreign banks are allowed to establish branches and operations in France and are subject to international prudential measures. Under IMF Article VIII, France may not impose restrictions on the making of payments and transfers for current international transactions without the (prior) approval of the Fund.Foreign investors have access to all classic financing instruments, including short-, medium-, and long-term loans, short- and medium-term credit facilities, and secured and non-secured overdrafts offered by commercial banks. These assist in public offerings of shares and corporate debt, as well as mergers, acquisitions and takeovers, and offer hedging services against interest rate and currency fluctuations. Foreign companies have access to all banking services. Most loans are provided at market rates, although subsidies are available for home mortgages and small business financing.Euronext Paris (also known as Paris Bourse) is part of a regulated cross-border stock exchange located in six European countries. Euronext Growth is an alternative exchange for medium-sized companies to list on a less regulated market (based on the legal definition of the European investment services directive), with more consumer protection than the Marché Libre still used by a couple hundred small businesses for their first stock listing. A company seeking a listing on Euronext Growth must have a sponsor with status granted by Euronext and prepare a French language prospectus for a permit from the Financial Markets Authority (Autorité des Marchés Financiers or AMF), the French equivalent of the U.S. Securities and Exchange Commission. Small and medium-size enterprises (SMEs) may also list on Enternext, a subsidiary of the Euronext Group created in 2013. The bourse in Paris also offers Euronext Access, an unregulated exchange for start-ups.																																				Money and Banking System										France’s banking system recovered gradually from the 2008-2009 global financial crises and passed the 2018 stress tests conducted by the European Banking Authority. In the context of the COVID-19 outbreak, the European Banking Authority (EBA) launched an EU-wide stress test exercise in January 2021 and published its results in July 2021. The results of the stress tests confirmed the resilience of the French banking system over the entire time horizon of the exercise (2021-2023), despite using a particularly severe macroeconomic and financial scenario, which envisages a prolongation of the crisis between 2021 and 2023. A new EBA EU-wide stress test will be carried out in 2023.Four French banks were ranked among the world’s 20 largest as of the end of 2020 (BNP Paribas SA; Crédit Agricole Group, Société Générale SA, Groupe BPCE). The assets of France&#8217;s top five banks totaled $7.7 trillion in 2020. Acting on a proposal from France’s central bank, Banque de France, in March 2020, the High Council for Financial Stability (HCSF) instructed the country’s largest banks to decrease the “countercyclical capital buffer” from 0.25 percent to zero percent of their bank’s risk-weighted assets, thereby increasing liquidity to help mitigate the impact of the pandemic-induced recession. As of January 2022, HCSF maintained the zero percent countercyclical capital buffer but with the intention of normalizing it to its pre-crisis level at its next meeting.Banque de France is a member of the Eurosystem, which groups together the European Central Bank (ECB) and the national central banks of all countries that have adopted the euro. Banque de France is a public entity governed by the French Monetary and Financial Code. The conditions whereby it conducts its missions on national territory are set out in its Public Service Contract. The three main missions are monetary strategy; financial stability, together with the High Council of Financial Stability (HCSF) which implements macroprudential policy; and the provision of economic services to the community. In addition, it participates in the preparation and implementation of decisions taken centrally by the ECB Governing Council.Foreign banks can operate in France either as subsidiaries or branches but need to obtain a license. Credit institutions’ licenses are generally issued by France’s Prudential Authority (Autorité de Contrôle Prudentiel et de Résolution or ACPR) which reviews whether certain conditions are met (e.g. minimum capital requirement, sound and prudent management of the bank, compliance with balance sheet requirements, etc.). Both EU law and French legislation apply to foreign banks. Foreign banks or branches are additionally subject to prudential measures and must provide periodic reports to the ACPR regarding operations in France, including detailed reports on their financial situation. At the EU level, the ‘passporting right’ allows a foreign bank settled in any EU country to provide their services across the EU, including France. There are about 944 credit institutions authorized to carry on banking activities in France; the list of foreign banks is available on this website:  https://www.regafi.fr/spip.php?page=results&amp;type=advanced&amp;id_secteur=3&amp;lang=en&amp;denomination=&amp;siren=&amp;cib=&amp;bic=&amp;nom=&amp;siren_agent=&amp;num=&amp;cat=01-TBR07&amp;retrait=0 																																				Foreign Exchange and Remittances																										Foreign Exchange						For purposes of controlling exchange, the French government considers foreigners as residents from the time they arrive in France. French and foreign residents are subject to the same rules; they are entitled to open an account in a foreign currency with a bank established in France, and to establish accounts abroad. They must report all foreign accounts on their annual income tax returns, and money earned in France may be freely converted into dollars or any other currency and transferred abroad.France is one of nineteen countries (known collectively as the Eurozone) that use the euro currency. Exchange rate policy for the euro is handled by the European Central Bank, located in Frankfurt, Germany. The average euro to USD exchange rate from March 1, 2021 to March 1, 2022 was 1 USD to 0.85 euro.France is a founding member of the OECD-based Financial Action Task Force (FATF, a 39-member intergovernmental body). As reported in the Department of State&#8217;s France Report on Terrorism, the French government has a comprehensive anti-money laundering/ counterterrorist financing (AML/CTF) regime and is an active partner in international efforts to control money laundering and terrorist financing.  Tracfin, the French government’s financial intelligence unit, is active within international organizations, and has signed new bilateral agreements with foreign countries.						Remittance Policies						France’s investment remittance policies are stable and transparent. All inward and outward payments must be made through approved banking intermediaries by bank transfers. There is no restriction on the repatriation of capital. Similarly, there are no restrictions on transfers of profits, interest, royalties, or service fees. Foreign-controlled French businesses are required to have a resident French bank account and are subject to the same regulations as other French legal entities. The use of foreign bank accounts by residents is permitted.																										Sovereign Wealth Funds										France has no sovereign wealth fund per se (none that use that nomenclature) but does operate funds with similar intents. The Public Investment Bank (Bpifrance) supports small and medium enterprises (SMEs), larger enterprises (Entreprises de Taille Intermedaire), and innovating businesses with over €36 billion ($39.6 billion) assets under management. The government strategy is defined at the national level and aims to fit with local strategies.  Bpifrance may hold direct stakes in companies, hold indirect stakes via generalist or sectorial funds, venture capital, development or transfer capital.  In November 2020, Bpifrance became a member of the One Planet Sovereign Wealth Funds (OPSWF) international initiative, which federates international sovereign wealth funds mobilized to contribute to the transition towards a more sustainable economy. Bpifrance stepped up its support for the ecological and energy transition, aiming to reach nearly €6 billion ($6.6 billion) per year by 2023.																																												7. State-Owned Enterprises						    																																															The 11 listed entities in which the French State maintains stakes at the federal level are Aeroports de Paris (50.63 percent); Airbus Group (10.92 percent); Air France-KLM (28.6 percent); EDF (83.88 percent), ENGIE (23.64 percent), Eramet (27.13 percent), La Française des Jeux (FDJ) (20.46 percent), Orange (a direct 13.39 percent stake and a 9.60 percent stake through Bpifrance), Renault (15.01 percent), Safran (11.23 percent), and Thales (25.67 percent). Unlisted companies owned by the State include SNCF (rail), RATP (public transport), CDC (Caisse des depots et consignations) and La Banque Postale (bank). In all, the government maintains majority and minority stakes in 88 firms in a variety of sectors.Private enterprises have the same access to financing as SOEs, including from state-owned banks or other state-owned investment vehicles. SOEs are subject to the same tax burden and tax rebate policies as their private sector competitors. SOEs may get subsidies and other financial resources from the government.France, as a member of the European Union, is party to the Agreement on Government Procurement (GPA) within the framework of the World Trade Organization. Companies owned or controlled by the state behave largely like other companies in France and are subject to the same laws and tax code. The Boards of SOEs operate according to accepted French corporate governance principles as set out in the (private sector) AFEP-MEDEF Code of Corporate Governance. SOEs are required by law to publish an annual report, and the French Court of Audit conducts financial audits on all entities in which the state holds a majority interest. The French government appoints representatives to the Boards of Directors of all companies in which it holds significant numbers of shares, and manages its portfolio through a special unit attached to the Ministry for the Economy and Finance Ministry, the shareholding agency APE (Agence de Participations de l’Etat). The State as a shareholder must set an example in terms of respect for the environment, gender equality and social responsibility. The report also highlighted that the State must protect its strategic assets and remain a shareholder in areas where the general interest is at stake.																																				Privatization Program										In 2021, the French Government increased to 29.9 percent its existing 14.3 percent stake in the Air France-KLM group in a deal that injected €4 billion ($4.5 billion) into Air France and its Holding Company under the European State aid Temporary Framework. This recapitalization, through a mix of new shares and hybrid debt, constrains the group from taking more than a 10 percent stake in any competitor until three-quarters of that aid is repaid. It follows a €7 billion ($7.7 billion) bailout the government provided earlier in 2020. The French Government has pledged to reduce its stake to the pre-crisis level of 14.3 percent by the end of 2026.The government was due to privatize many large companies in 2019, including ADP and ENGIE in order to create a €10 billion ($11 billion) fund for innovation and research. However, the program was delayed because of political opposition to the privatization of airport manager ADP, regarded as a strategic asset to be protected from foreign shareholders. The government succeeded in selling in November 2019 a 52 percent stake in gambling firm FDJ. The government continues to maintain a strong presence in some sectors, particularly power, public transport, and defense industries.																																												8. Responsible Business Conduct						    																																															The business community has general awareness of standards for responsible business conduct (RBC) in France. The country has established a National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises, coordinated and chaired by the Directorate General of the Treasury in the Ministry for the Economy and Finance. Its members represent State Administrations (Ministries in charge of Economy and Finance, Labor and Employment, Foreign Affairs, Ecology, Sustainable Development and Energy), six French Trade Unions (CFDT, CGT, FO, CFE-CGC, CFTC, UNSA) and one employers’ organization, MEDEF.The NCP promotes the OECD Guidelines in a manner that is relevant to specific sectors. When specific instances are raised, the NCP offers its good offices to the parties (discussion, exchange of information) and may act as a mediator in disputes, if appropriate.  This can involve conducting fact-finding to assist parties in resolving disputes, and posting final statements on any recommendations for future action with regard to the Guidelines. The NCP may also monitor how its recommendations are implemented by the business in question. In April 2017, the French NCP signed a two-year partnership with Global Compact France to increase sharing of information and activity between the two organizations.In France, corporate governance standards for publicly traded companies are the product of a combination of legislative provisions and the recommendations of the AFEP-MEDEF code (two employers’ organizations). The code, which defines principles of corporate governance by outlining rules for corporate officers, controls and transparency, meets the expectations of shareholders and various stakeholders, as well as of the European Commission. First introduced in September 2002, it is regularly updated, adding new principles for the determination of remuneration and independence of directors, and now includes corporate social and environmental responsibility standards. The latest amendments in February 2019 tackle the remuneration and post-employment benefits of Chief Executive Officers and Executive Officers: 60 percent variable remuneration based on quantitative objectives and 40 percent on quality objectives, including efforts in the corporate social responsibility.Also relating to transparency, the EU passed a new regulation in May 2017 to stem the trade in conflict minerals and, in particular, to stop conflict minerals and metals from being exported to the EU; to prevent global and EU smelters and refiners from using conflict minerals; and to protect mine workers from being abused. The regulation goes into effect January 1, 2021, and will then apply directly to French law.France has played an active role in negotiating the ISO 26000 standards, the International Finance Corporation Performance Standards, the OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles on Business and Human Rights. France has signed on to the Extractive Industries Transparency Initiative (EITI), although, it has not yet been fully implemented. Since 2017, large companies based in France and having at least 5,000 employees are now required to establish and implement a corporate plan to identify and assess any risks to human rights, fundamental freedoms, workers’ health, safety, and risk to the environment from activities of their company and its affiliates.The February 2017 “Corporate Duty of Vigilance Law” requires large companies to set up, implement, and publish a “vigilance plan” to identify risks and prevent “serious violations” of human rights, fundamental freedoms, and serious environmental damage.In 2021, France enacted a Climate and Resilience Law covering consumption and food, economy and industry, transportation, housing, and strengthening sanctions against environmental violations. The production and work chapter aligns France’s national research strategy with its national low carbon and national biodiversity strategies. All public procurement must consider environmental criteria. To protect ecosystems, the law amends several mining code provisions, including the requirement to develop a responsible extractive model. The law translates France’s multi-year energy program into regional renewable energy development objectives, creates the development of citizen renewable energy communities, and requires installation of solar panels or green roofs on commercial surfaces, offices, and parking lots. The consumption chapter requires an environmental sticker and inscription to better inform consumers of a product or service’s impact on climate. The law bans advertising of fossil fuels by 2022 and advertising of the most carbon-emitting cars (i.e., those that emit more than 123 grams of carbon dioxide per kilometer) by 2028. The law also empowered local authorities with mechanisms to reduce paper advertisements and regulate electronic advertising screens in shop windows. Large- and medium-sized stores (i.e., those with over 400 square meters of sales area) must devote 20 percent of their sales area to bulk sales by 2030. In the agriculture sector, the law sets annual emissions reduction levels concerning nitrogen fertilizers; failure to meet these objectives will trigger a tax beginning in 2024. The law’s transportation chapter extends France’s 2019 Mobility law by creating 33 low-emission zones in urban areas that have more than 150,000 inhabitants by the end of 2024, and bans cars manufactured before 1996 in these large cities. In the top 10 cities that regularly exceed air quality limits on particulates, the law will ban vehicles that have air quality certification stickers of above a certain level. The law requires regions to offer attractive fares on regional trains, bans domestic flights when there is train transportation of less than 2.5 hours, requires airlines to conduct carbon offsetting for domestic flights beginning in 2022, and creates carpool lanes. The law creates a road ecotax starting in 2024, prohibits the sale of new cars that emit more than 95 gram of carbon dioxide per kilometer by 2030 and of new trucks, buses, and coaches with 95 gCO2/km emissions by 2040, and provides incentives to develop bicycle paths, parking areas, and rail and waterway transport.The Climate and Resilience Law’s housing chapter seeks to accelerate the environmental renovation of buildings. Starting in 2023, owners of poorly insulated housing must undertake energy renovation work if they want to increase rent rates. The law forbids leasing non-insulated housing beginning in 2025 and bans leasing any type of poorly insulated housing beginning in 2028. It also provides information, incentives, and control mechanisms empowering tenants to demand landlords conduct energy renovation work. Beginning in 2022, the law requires an energy audit, including proposals, when selling poorly insulated housing. All households will have access to a financing mechanism to pay the remaining costs of their renovation work via government-guaranteed loans. The law regulates the laying of concrete, mandates a 50 percent reduction in the rate of land use by 2030, requires net zero land reclamation by 2050, and prohibits the construction of new shopping centers that lead to modifying natural environment. The law aims to protect 30 percent of France’s sensitive natural areas and supports local authorities in adapting their coastal territories against receding coastlines. The law’s final chapter focuses on environmental violations and reinforces sanctions for environmental damage, such as long-term degradation to fauna and flora (up to three years in prison and a €250,000 ($273,000) fine), as well as for the general offense of environmental pollution and “ecocide” (up to 10 years in prison and a €4.5 million ($4.9 million) fine or up to 10 times the profit obtained by the individual committing the environmental damage). The chapter uses the term “ecocide” to refer to the most serious cases of environmental damage, although the term is not defined in the law. Even if pollution has not occurred, these penalties apply as long as the individual’s behavior is considered to have put the environment in “danger.”																																				Additional Resources										Department of StateCountry Reports on Human Rights Practices;Trafficking in Persons Report;Guidance on Implementing the &#8220;UN Guiding Principles&#8221; for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities;U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises; and;Xinjiang Supply Chain Business Advisory Department of the TreasuryOFAC Recent Actions Department of LaborFindings on the Worst Forms of Child Labor Report ;List of Goods Produced by Child Labor or Forced Labor ;Sweat &amp; Toil: Child Labor, Forced Labor, and Human Trafficking Around the World  and;Comply Chain .																																												9. Corruption						    																																															In line with President Macron’s campaign promise to clean up French politics, the French parliament adopted in September 2017 the law on “Restoring Confidence in Public Life.” The new law bans elected officials from employing family members, or working as a lobbyist or consultant while in office. It also bans lobbyists from paying parliamentary, ministerial, or presidential staff and requires parliamentarians to submit receipts for expenses.France’s “Transparency, Anti-corruption, and Economic Modernization Law,” also known as the “Loi Sapin II,” came into effect on June 1, 2017. It brought France’s legislation in line with European and international standards. Key aspects of the law include: creating a new anti-corruption agency; establishing “deferred prosecution” for defendants in corruption cases and prosecuting companies (French or foreign) suspected of bribing foreign public officials abroad; requiring lobbyists to register with national institutions; and expanding legal protections for whistleblowers. The Sapin II law also established a High Authority for Transparency in Public Life (HATVP). The HATVP promotes transparency in public life by publishing the declarations of assets and interests it is legally authorized to share publicly. After review, declarations of assets and statements of interests of members of the government are published on the High Authority’s website under open license. The declarations of interests of members of Parliament and mayors of big cities and towns, but also of regions are also available on the website. In addition, the declarations of assets of parliamentarians can be accessed in certain governmental buildings, though not published on the internet.France is a signatory to the OECD Anti-Bribery Convention. The U.S. Embassy in Paris has received no specific complaints from U.S. firms of unfair competition in France in recent years. France ranked 22rd of 180 countries on Transparency International’s (TI) 2021 corruption perceptions index. See  https://www.transparency.org/country/FRA .																																				Resources to Report Corruption										The Central Office for the Prevention of Corruption (Service Central de Prevention de la Corruption or SCPC) was replaced in 2017 by the new national anti-corruption agency &#8211; the Agence Francaise Anticorruption (AFA). The AFA is charged with preventing corruption by establishing anti-corruption programs, making recommendations, and centralizing and disseminating information to prevent and detect corrupt officials and company executives. The French anti-corruption agency guidelines can be found here:  https://www.agence-francaise-anticorruption.gouv.fr/files/2021-03/French%20AC%20Agency%20Guidelines%20.pdf . The AFA will also administrative authority to review the anticorruption compliance mechanisms in the private sector, in local authorities and in other government agencies.Contact information for Agence Française Anti-corruption (AFA):Director: Charles Duchaine23 avenue d&#8217;Italie75013 ParisTel : (+33) 1 44 87 21 14Email: charles.duchaine@afa.gouv.frContact information for Transparency International’s French affiliate:Transparency International France14, passage Dubail75010 ParisTel: (+33) 1 84 16 95 65;Email:  contact@transparency-france.org																																												10. Political and Security Environment						    																																															France is a politically stable country. Large demonstrations and protests occur regularly (sometimes organized to occur simultaneously in multiple French cities); these can result in violence. When faced with imminent business closures, on rare occasions French trade unions have resorted to confrontational techniques such as setting plants on fire, planting bombs, or kidnapping executives or managers.From mid-November 2018 through 2019, Paris and other cities in France faced regular protests and disruptions, including “Gilets Jaunes” (Yellow Vest) demonstrations that turned violent, initiated by discontent over high cost of living, gas, taxes, and social exclusion. In the second half of 2019, most demonstrations were in response to President Macron’s proposed unemployment and pension reform. Authorities permitted peaceful protests. During some demonstrations, damage to property, including looting and arson, in popular tourist areas occurred with reckless disregard for public safety.  Police response included water cannons, rubber bullets and tear gas.Between 2012 and 2021, 271 people have been killed in terrorist attacks in France, including the January 2015 assault on the satirical magazine Charlie Hebdo, the November 2015 coordinated attacks at the Bataclan concert hall, national stadium, and streets of Paris, and the 2016 Bastille Day truck attack in Nice. While the terrorist threat remains high, the threat is lower than its peak in 2015. Terrorist attacks have since been smaller in scale. Security services remained concerned with lone-wolf attacks, carried out by individuals already in France, inspired by or affiliated with ISIS.  French security agencies continue to disrupt plots and cells effectively. Despite the spate of recent small-scale attacks, France remains a strong, stable, democratic country with a vibrant economy and culture. Americans and investors from all over the world continue to invest heavily in France.																																												11. Labor Policies and Practices						    																																															France’s has one of the lowest unionized work forces in the developed world (between 8-11 percent of the total work force). However, unions have strong statutory protections under French law that give them the power to engage in sector- and industry-wide negotiations on behalf of all workers. As a result, an estimated 98 percent of French workers are covered by union-negotiated collective bargaining agreements. Any organizational change in the workplace must usually be presented to the unions for a formal consultation as part of the collective bargaining process.The number of apprenticeships in France peaked in 2021, at 718,000 (+37 percent compared with 2020), including 698,000 in the private sector, according to February 2, 2022 Labor Ministry figures. Apprenticeships, like vocational training, have been placed under the direct management of the government via a newly created agency called France Compétences. The government claims growth of apprenticeship and reform of vocational training help to explain the drop to from eight percent in 2020 to 7.4 percent in 2021.During the COVID-19 crisis, France’s partial unemployment scheme, which allows firms to retain their employees while the government continues to pay a portion of their wages, expanded dramatically in scope and size and kept unemployment at pre-crisis levels (between eight and nine percent). The reform of unemployment insurance was launched in stages in November 2017 and twice postponed because of the COVID-19 pandemic. Labor Minister Elizabeth Borne presented on March 2, 2021, the last measures of the government’s final decree on unemployment insurance. These final measures include a new method for calculating the daily reference wage and the introduction of a tax on short-term contracts. In spite of strong labor union opposition, the government was able to enforce its reform in November 2021. Earlier measures of the reform, in place since January 1, 2021, cover a 30 percent cut in benefits of higher wage earners and an increase from one to four months of the threshold for recharging rights to unemployment benefits once they have ended. This reform is designed to tackle two issues: 1) ensuring that the jobless do not make more money from unemployment benefits than by working; and 2) reducing the deficit of France’s unemployment insurance system UNEDIC. The deficit is expected to turn to surplus by the end of 2022, according to an October 22, 2021 report by UNEDIC, due to the end of the government COVID-19 partial unemployment scheme and as a consequence of the unemployment insurance reform. Pension reform has been delayed until after the April 2022 presidential elections.																																												12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs						    																																															Given France&#8217;s high per capita income, investments in France do not qualify for investment insurance or guarantees offered by the U.S. International Development Finance Corporation (DFC).																																												13. Foreign Direct Investment and Foreign Portfolio Investment Statistics						    																																															Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/EconomyFrench Statistical source*USG or international statistical sourceUSG or International Source of Data:  BEA; IMF; Eurostat; UNCTAD, OtherEconomic DataYearAmountYearAmount France’s Gross Domestic Product (GDP) ($M USD)2020$2,542,3702020$ 2,630,317www.worldbank.org/en/country Foreign Direct InvestmentFrench Statistical source*USG or international statistical sourceUSG or international Source of data:  BEA; IMF; Eurostat; UNCTAD, OtherU.S. FDI in France ($M USD, stock positions)2020$67,1952020$91,153BEA data available at https://apps.bea.gov/international/factsheet/ France’s FDI in the United States ($M USD, stock positions)2020$213,3902020$314,979BEA data available at https://www.bea.gov/international/direct-investment-and-multinational-enterprises-comprehensive-data Total inbound stock of FDI as % host GDP202034.1%201937.2%UNCTAD data available athttps://stats.unctad.org/handbook/EconomicTrends/Fdi.html * French Source :  INSEE database for GDP figures and French Central Bank (Banque de France) for FDI figures. Accessed on March 21, 2022.  Table 3: Sources and Destination of FDIDirect Investment from/in France Economy Data 2020From Top Five Sources/To Top Five Destinations (U/S. Dollars, Millions)Inward Direct InvestmentOutward Direct InvestmentTotal Inward897,115100%Total Outward1,440,715100%Luxembourg164,50118%The Netherlands221,09815%Switzerland119,02013% United States213,39015%United Kingdom115,09312%Belgium166,71311% The Netherlands107,70912%United Kingdom137,1389%Germany98,30310%Italy76,0915%&#8220;0&#8221; reflects amounts rounded to +/- USD 500,000.Source: Bank of France.Note: These figures represent the stock of foreign direct investment (FDI), not the annual flow of FDI. The United States was the second top investor by number of projects recorded in 2021 but remained in first place for jobs generated (10,118).																																												14. Contact for More Information						    																																															Dustin Salveson (from July 2022, Craig Pike)Economic OfficerU.S. Embassy2 Avenue Gabriel75008 Paris, FranceTel: +33.1.43.12.2000FranceICSeditor@state.gov																																												Special Section on Monaco						    																																															The Principality of Monaco, the world’s second smallest country by area, has an open economy that welcomes foreign investment.  Monaco enjoys a high standard of living and low unemployment.   With the exception of French citizens, foreigners (and Monegasques) actually living and working in Monaco are not subject to personal income tax.  Corporations may benefit from various tax incentives.  There are no restrictions preventing foreigners and non-residents from buying property or opening bank or brokerage accounts in Monaco, though some banks have levied fees on American accounts.  Non-residents likely account for more than half of real estate investments.   Monaco is well known for its security and political stability.																																				Investment Regime of Monaco										Monaco’s economic and regulatory system is closely tied to that of France, and Monaco uses the Euro as its currency.  The convention of May 1, 1963 brought French and Monegasque territories, including territorial waters, under a common customs union resulting in the application of French customs law in Monaco.  Although Monaco is not a member of the European Union, the customs union with France makes it subject to EU customs laws, thus guaranteeing that the transfer of goods and services from and into Monaco remains within the single European market.Economic activity within Monaco, including commercial, handicraft and industrial activity, is strictly monitored by the government.  Prior approval from the Direction de l’Expansion Economique (Department of Economic Expansion) is required before conducting any economic activity in the principality.  This applies to foreign companies that may establish a branch or an administrative unit in the principality.  Monegasque authorities issue approvals based on type of business; approval is personal and may not be transferred.  Any change in the terms requires a new approval.  Currently the process takes 6-8 weeks.A body called Espace Entreprises Monaco Business Office helps new investors.  The Monaco Welcome and Business office (MWBO) assists individuals and entrepreneurs in relocating to the Principality of Monaco.  In the financial sector, creation of any financial organization is subject to the approval of both the French CECEI (Committee for Credit and Investment Institutions) in Paris and of Monegasque financial supervisory authorities.  Offshore companies are subject to the same due diligence and suspicious transaction reporting regulations as other banking institutions.Monaco has taken a number of initiatives to promote economic activity and make company operations more transparent while maintaining high ethical standards, including:Creation of the legal status of a Limited Liability Company;Adoption of systems to combat money laundering, terrorist financing, organized crime, and corruption (through the creation of the Service d’Information et de Contrôle sur les Circuits Financiers, SICCFIN: http://www.siccfin.gouv.mc), which has an ongoing cooperation agreement with Monaco’s police department; andSpecial exemptions for new companies and research.In Monaco, there is no direct taxation, with two exceptions:Companies earning more than 25% of their turnover (revenue) outside of the principality, and companies whose activities consist of earning revenues from patents and literary or artistic property rights, subject to a tax of 33.33% on profits; andFrench nationals unable to prove that they resided in the principality for five years before October 31, 1962 are subject to the French income tax.To encourage the creation of economic activity, the Principality of Monaco offers tax exemptions to new companies developing a new activity.  These new companies enjoy 100% exemption from corporate tax in the first two years, and then following a sliding scale gradually assume normal tax obligations by the sixth year.  An R&amp;D tax credit was additionally created in March 2009.   Additionally, start ups and small businesses may benefit from support through incubator programs in country, including those that provide expert advice and affordable workspace.On July 12, 2016, the European Union and Monaco signed an agreement making Monaco’s tax compliance regulations and automatic exchange of financial information stronger and equivalent to measures in force in the EU.  The EU-Monaco agreement entered into force in 2018.  Monaco is now classified as “largely compliant” by OECD tax transparency standards.  The principality has signed 33 tax information exchange agreements (TIEA), including one with the United States in 2009. In January 2019, Monaco deposited its instrument of ratification for the Multilateral BEPS OECD/G20 Convention.																																				Size of the Economy of Monaco										Monaco’s GDP for 2020 was 5.97 billion EUR (6.71 billon USD), compared to 6.63 billion EUR (7.80 billion USD) in 2019, a decline of 11.8% in real terms.  Following two years of robust growth (+6.0% and +6.9%), GDP fell to a level slightly below that of 2018. (Source: IMSEE – Monaco Monaco en Chiffres 2021 / Publications / IMSEE &#8211; Monaco IMSEE ).  The country’s budget comes from taxes on industry, trade, and services; a vibrant tourism sector; and several government-owned enterprises, most notably the country’s famous casinos.  Approximately 50 percent of government revenue comes from the Value Added Tax (VAT), which is collected by French authorities and disbursed to Monaco according to an agreed formula. As of April 2022, final numbers for Monaco’s 2021 GDP had yet to be published.There is a high concentration of financial professionals in Monaco, as might be expected in this center of international business.  French banking law applies in Monaco, subjecting banks to the same level of supervision as in France.  Some 37 full-service banks and more than 42 portfolio and fund management companies, the banking sector is a major part of the Principality’s economic activity.																																				    							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Openness To, and Restrictions Upon, Foreign Investment																																							Policies Towards Foreign Direct Investment																																																						Limits on Foreign Control and Right to Private Ownership and Establishment																																																						Other Investment Policy Reviews																																																						Business Facilitation																																																						Outward Investment																																																			2. Bilateral Investment and Taxation Treaties																																																	3. Legal Regime																																							Transparency of the Regulatory System																																																						International Regulatory Considerations																																																						Legal System and Judicial Independence																																																						Laws and Regulations on Foreign Direct Investment																																																						Competition and Antitrust Laws																																																						Expropriation and Compensation																																																						Dispute Settlement																																																				ICSID Convention and New York Convention																																												Investor-State Dispute Settlement																																												International Commercial Arbitration and Foreign Courts																																																																																				Bankruptcy Regulations																																																			4. Industrial Policies																																							Investment Incentives																																																						Foreign Trade Zones/Free Ports/Trade Facilitation																																																						Performance and Data Localization Requirements																																																			5. Protection of Property Rights																																							Real Property																																																						Intellectual Property Rights																																																			6. Financial Sector																																							Capital Markets and Portfolio Investment																																																						Money and Banking System																																																						Foreign Exchange and Remittances																																																				Foreign Exchange																																												Remittance Policies																																																																																				Sovereign Wealth Funds																																																			7. State-Owned Enterprises																																																				Privatization Program																																																			8. Responsible Business Conduct																																																				Additional Resources																																																			9. Corruption																																																				Resources to Report Corruption																																																			10. Political and Security Environment																																																	11. Labor Policies and Practices																																																	12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs																																																	13. Foreign Direct Investment and Foreign Portfolio Investment Statistics																																																	14. Contact for More Information																																																	Special Section on Monaco																																																				Investment Regime of Monaco																																																						Size of the Economy of Monaco																																																									Tags																					Bureau of Economic and Business Affairs																								Bureau of European and Eurasian Affairs																								France																								Monaco
- Monaco HomeReportsOffice of International Religious Freedom2021 Report on International Religious Freedom&#8230;Monaco				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2021 Report on International Religious Freedom: Monaco																																					Office of International Religious Freedom																								June 2, 2022																																																																																			Download Report																																																							Translations																																																																 In this section										/																							Executive Summary																																													Executive Summary																															Section I. Religious Demography																																																																																		Section II. Status of Government Respect for Religious Freedom																																																									Legal Framework																																																																											Government Practices																																																																																	Section III. Status of Societal Respect for Religious Freedom																																																																																		Section IV. U.S. Government Policy and Engagement																																																																																																								Executive Summary				The constitution guarantees freedom of religion and its public expression and prohibits compelling participation in religious ceremonies.  Roman Catholicism is the state religion, and state ceremonies often include Catholic rituals.  Religious groups must apply to the government to build a public place of worship and to receive recognition, which provides certain legal rights and privileges.  Optional Catholic religious instruction is available in public schools.  The Jehovah’s Witnesses’ 2019 case before the European Court of Human Rights (ECHR) for recognition as a religious group remained pending at year’s end.  In July, the ECHR formally notified the government of the case.  Without recognition, the government and Jehovah’s Witnesses both stated that the group could not open a place of worship in the country.The only private religious schools are Catholic.  According to the government, while the law permits private, non-Catholic religious schools, there was insufficient demand for them.  Muslim, Protestant, and Jewish representatives again said there was no need for them to open a religious school.  A member of the Muslim community stated the community did not want to be officially recognized because most members did not practice their religion and it would be too expensive to build a place of worship.In November, the U.S. Consul General in Marseille, who is accredited to the government of Monaco, discussed the state of religious freedom in the country with a representative from the Ministry of Foreign Affairs.  In September, representatives from the Consulate General in Marseille discussed issues pertaining to religious freedom with leaders of the Jehovah’s Witnesses and Catholic and Protestant Churches.  Consulate general officials spoke several times with representatives from the Jehovah’s Witnesses to discuss religious concerns, including the government’s refusal to recognize the Jehovah’s Witnesses.  In November, consulate general representatives met with Jewish and Muslim religious communities to discuss religious freedom and diversity in the country.																														Section I.													 Religious Demography												    																																															The U.S. government estimates the total population at 31,000 (midyear 2021), of whom 10,000 are citizens.  The U.S. government estimates 90 percent of the population is Roman Catholic.  Protestant officials said Protestants represent at least 2 percent of the population, with 200-220 families, mainly of British and American descent.  According to press reports and observers in the country, the Russian Orthodox Church has approximately 300 members.  According to the European Jewish Congress and the local Association Culturelle Israelite (Jewish Cultural Association), approximately 1,000 residents, most of whom are noncitizens, are Jewish.  According to a long-time Muslim resident, there is a small Muslim community of approximately 200 persons, most of whom are noncitizens from North Africa.  The Jehovah’s Witnesses report 150-200 members who work in the country, 20 of whom reside there.  A small number of residents adhere to other religious beliefs.																																					Section II.													 Status of Government Respect for Religious Freedom												    																																																Legal Framework										The constitution guarantees individuals freedom of religion and public worship and protects the freedom to express opinions on all issues, provided no crimes are committed in the exercise of those freedoms.  No one may be compelled to participate in the rites or ceremonies of any religion or to observe its days of rest.The constitution states that Roman Catholicism is the state religion.  The Catholic Archbishop of Monaco occupies the highest government office below the sovereign and the Minister of State.Religious associations seeking to establish an office or place of worship, own or lease property, or hire employees must first obtain official recognition from the Ministry of the Interior.  The ministry must respond to such requests within one month or approval is automatic.  The government has granted recognition to the Protestant, Russian Orthodox, and Jewish communities.In addition to obtaining official government recognition, any religious group wishing to construct a place of worship in a public space must receive prior approval from the Ministry of Interior.The government does not tax religious institutions.Catholic religious instruction is available in public schools as an option and requires parental authorization.  Private schools, including those operated by religious groups, must apply for government authorization.  If approved, the schools may provide instruction in religions other than Catholicism.The country is a party to the International Covenant on Civil and Political Rights.																																				Government Practices										In September 2019, the Jehovah’s Witnesses took their case for recognition as a religious group to the ECHR, which formally notified the government of the case on July 15.  An official from the Ministry of Foreign Affairs said the principality was studying the case and would reply officially as required by the court.  The case remained pending at year’s end.  The government had rejected the group’s three previous applications – the most recent in 2019 – despite a Supreme Court ruling annulling the first two rejections.  In its filings with the Supreme Court, the government had described the group as a danger to public order, as extreme and intolerant, and hostile to the Catholic Church and to other religious groups.The Jehovah’s Witnesses stated that without government recognition, they remained unable to establish a headquarters in the country where they could worship and welcome new members.  The Jehovah’s Witnesses also noted that dozens of their members visited the principality as tourists every year and often asked how to access religious services.  Catholic rituals continued to be a part of many state ceremonies, including annual national day celebrations.																																					Section III.													 Status of Societal Respect for Religious Freedom												    																																															As in previous years, the only private religious schools were Catholic.  Muslim, Protestant, and Jewish representatives again said there was no need to open a religious school.  These religious representatives reported that they did not request approval to open a religious school but believed the government would likely agree, if asked, to the request.According to religious groups, building new places of worship was difficult due to high real estate prices.  There were no mosques in the country.A Muslim community member stated the community did not request official recognition because most members did not practice their religion and it would be too expensive to build a place of worship.  Muslims worshiped at a mosque in Beausoleil, just across the border in France, and in private prayer rooms in their own residences.  The Jehovah’s Witnesses also worshiped in nearby locations in Menton, Beausoleil, and Nice in France.																																					Section IV.													 U.S. Government Policy and Engagement												    																																															In November, the Consul General in Marseille discussed the state of religious freedom in the country with a representative from the Ministry of Foreign Affairs.  In September, consulate general staff spoke with the Catholic Archbishop of Monaco about the relationship between the principality and the Church, the degree to which other religions were allowed to practice in Monaco, the status of Jehovah’s witnesses, Catholic and non-Catholic schools, and social services the Church provided to people in need, especially in a COVID-19 environment.Representatives from the consulate general spoke with Jehovah’s Witnesses representatives several times to discuss religious freedom concerns, including the government’s refusal to recognize the group.  In September, consulate general staff spoke with the pastor of the United Protestant Church – one of the country’s two Protestant churches – and a representative of the Jehovah’s Witnesses.  In November, staff spoke with representatives of the Jewish and Muslim religious communities.																																				    							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Religious Demography																																																	Section II. Status of Government Respect for Religious Freedom																																							Legal Framework																																																						Government Practices																																																			Section III. Status of Societal Respect for Religious Freedom																																																	Section IV. U.S. Government Policy and Engagement																																																							Tags																					Bureau of European and Eurasian Affairs																								Monaco																								Office of International Religious Freedom																																Religious Freedom
- Special Presidential Envoy for Climate Kerry’s Travel to Monaco, France, and Qatar  Office of the SpokespersonSpecial Presidential Envoy for Climate John Kerry will travel to Monte Carlo, Monaco, March 20-21, for the Monaco Blue Initiative and discuss the ocean-climate nexus with key stakeholders.  Further information may be found at https://www.monacoblueinitiative.org/en/ .On March 22-24, Secretary Kerry will travel to Paris, France, to participate in the International Energy Agency 2022 Ministerial Meeting and discuss urgent energy security challenges, including accelerating the clean energy transition.  The event will be livestreamed at https://www.iea.org/events/iea-2022-ministerial-meeting .Secretary Kerry will travel to Doha, Qatar, March 25-27, to attend the Doha Forum and discuss opportunities to advance security and prosperity by tackling the climate crisis.For media inquiries, please contact ClimateComms@state.gov.
- Monaco HomeReportsBureau of Democracy, Human Rights, and Labor2021 Country Reports on Human Rights Practices&#8230;Monaco				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2021 Country Reports on Human Rights Practices: Monaco																																					Bureau of Democracy, Human Rights, and Labor																																																																																							Download Report																																																							Translations																																																																 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															Section 1. Respect for the Integrity of the Person																																																									a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																																											b. Disappearance																																																																											c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment																																																																			Prison and Detention Center Conditions																																																																																																																		d. Arbitrary Arrest or Detention																																																																			Arrest Procedures and Treatment of Detainees																																																																																																																		e. Denial of Fair Public Trial																																																																			Trial Procedures																																																								Political Prisoners and Detainees																																																								Civil Judicial Procedures and Remedies																																																																																																																		f. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																																																	Section 2. Respect for Civil Liberties																																																									a. Freedom of Expression, Including for Members of the Press and Other Media																																																																			Internet Freedom																																																								Academic Freedom and Cultural Events																																																																																																																		b. Freedoms of Peaceful Assembly and Association																																																																											c. Freedom of Religion																																																																											d. Freedom of Movement and the Right to Leave the Country																																																																											e. Status and Treatment of Internally Displaced Persons																																																																											f. Protection of Refugees																																																																																	Section 3. Freedom to Participate in the Political Process																																																																												Elections and Political Participation																																																																																	Section 4. Corruption and Lack of Transparency in Government																																																																																		Section 5. Governmental Posture Toward International and Nongovernmental Investigation of Alleged Abuses of Human Rights																																																																																		Section 6. Discrimination and Societal Abuses																																																									Women																																																																											Systemic Racial or Ethnic Violence and Discrimination																																																																											Children																																																																											Anti-Semitism																																																																											Trafficking in Persons																																																																											Persons with Disabilities																																																																											Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation and Gender Identity																																																																																	Section 7. Worker Rights																																																									a. Freedom of Association and the Right to Collective Bargaining																																																																											b. Prohibition of Forced or Compulsory Labor																																																																											c. Prohibition of Child Labor and Minimum Age for Employment																																																																											d. Discrimination with Respect to Employment and Occupation																																																																											e. Acceptable Conditions of Work																																																																																																							EXECUTIVE SUMMARY				The Principality of Monaco is a constitutional monarchy in which the sovereign prince plays the leading governmental role. The prince appoints the government, which consists of a minister of state and five ministers. The prince shares the country’s legislative power with the popularly elected National Council, which is elected every five years. Multiparty elections for the National Council in 2018 were considered free and fair.The national police are responsible for maintaining public order and the security of persons and property. The Palace Guard is responsible for the security of the prince, the royal family, and their property. Both report to the Ministry of Interior. Civilian authorities maintained effective control over the security forces. There were no reports security forces committed abuses.Significant human rights issues included the existence of laws criminalizing libel and offending the prince.The country had mechanisms in place to identify and punish officials who may commit human rights abuses or engage in official corruption.																														Section 1.													 Respect for the Integrity of the Person												    																																																a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings										There were no reports that the government or its agents committed arbitrary or unlawful killings.																																				b. Disappearance										There were no reports of disappearances by or on behalf of government authorities.																																				c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment										The constitution and law prohibit such practices, and there were no reports that government officials employed them. Impunity was not a significant problem in the security forces.																Prison and Detention Center Conditions						There were no significant reports regarding prison or detention center conditions that raised human rights concerns. Authorities usually sent noncitizens sentenced to long prison terms to France to serve their terms.Physical Conditions: There were no major concerns in prisons and detention centers regarding physical conditions or inmate abuse. In May the Council of Europe’s Committee for the Prevention of Torture (CPT) published a report on its most recent visit in September 2020 to all places of detention in the country. The report noted the CPT received no allegations of mistreatment and that many of those incarcerated said that they had been treated with respect by law enforcement officials and prison and hospital staff.Administration: Authorities conducted investigations of credible allegations of mistreatment.Independent Monitoring: The government permitted monitoring by independent nongovernmental observers such as regularly scheduled visits by the CPT.																										d. Arbitrary Arrest or Detention										The constitution and law prohibit arbitrary arrest and detention and provide for the right of any person to challenge the lawfulness of his or her arrest or detention in court. The government generally observed these requirements.																Arrest Procedures and Treatment of Detainees						Arrest warrants are required. A detainee must appear before an investigating magistrate within 24 hours of arrest to be informed of the charges against him and of his rights under the law, and authorities generally respected this requirement. There is a functioning bail system. Authorities released most detainees without bail, but the investigating magistrate may order detention on grounds that the suspect might flee or interfere with the investigation of the case. Detainees generally had prompt access to a lawyer, and the government provided one to indigent defendants.																										e. Denial of Fair Public Trial										The constitution and law provide for an independent judiciary, and the government generally respected judicial independence and impartiality.																Trial Procedures						The law provides for the right to a fair trial, and an independent judiciary generally enforced this right. Defendants enjoy a presumption of innocence and were generally informed promptly and in detail of the charges against them. Except for cases involving minors, trials were conducted in public, usually before a judge or tribunal of judges. Defendants have the right to a fair and timely trial, be present at their trial and to consult with an attorney of their choice. The law provides for an attorney to be provided at public expense, if needed, when defendants face serious criminal charges. Defendants and their counsel have a right to adequate time and facilities to prepare a defense and have access to free interpretation if necessary. Defendants were able to question the testimony of prosecution or plaintiff witnesses against them and present witnesses and evidence in their defense. They may not be compelled to testify or confess guilt. Defendants have a right to appeal.						Political Prisoners and Detainees						There were no reports of political prisoners or detainees.						Civil Judicial Procedures and Remedies						The country has an independent and impartial judiciary in civil matters, and residents have access to a court to bring lawsuits seeking damages for, or cessation of, human rights violations. Plaintiffs regularly used available administrative remedies to seek redress for alleged wrongs. Persons may appeal court decisions involving alleged violations of the European Convention on Human Rights to the European Court of Human Rights after they exhaust all avenues of appeal in national courts.																										f. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence										The constitution and law prohibit such actions, and there were no reports the government failed to respect these prohibitions.																																					Section 2.													 Respect for Civil Liberties												    																																																a. Freedom of Expression, Including for Members of the Press and Other Media										The constitution and law provide for freedom of expression, including for members of the press and other media, and the government generally respected this right. An independent press, an effective judiciary, and a functioning democratic political system combined to promote freedom of expression, including for members of the media.Freedom of Expression: Although rarely enforced, the law prohibits offending the prince and provides for punishment of from six months to five years in prison. If not committed publicly, the act may be punished with imprisonment from six months to three years. The law also prohibits offending the family of the prince and provides for punishment of from six months to three years in prison. If not committed publicly, the act is punishable with imprisonment from three months to one year. Authorities did not charge anyone with violating these statutes during the year.Libel/Slander Laws: The law prohibits defamation or insult, particularly against citizens responsible for a public service or office and provides for imprisonment of up to two years depending on the severity of the case.																Internet Freedom						The government did not restrict or disrupt access to the internet or censor online content, and there were no credible reports that the government monitored private online communications without appropriate legal authority.						Academic Freedom and Cultural Events						There were no government restrictions on academic freedom or cultural events.																										b. Freedoms of Peaceful Assembly and Association										The constitution and law provide for the freedoms of peaceful assembly and association, and the government generally respected these rights.																																				c. Freedom of Religion										See the Department of State’s International Religious Freedom Report at  https://www.state.gov/religiousfreedomreport/.																																				d. Freedom of Movement and the Right to Leave the Country										The law provides for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights.																																				e. Status and Treatment of Internally Displaced Persons										Not applicable.																																				f. Protection of Refugees										Access to Asylum: The law does not provide for the granting of asylum or refugee status, and the government has not established a system for providing protection to refugees. Monaco is not normally a refugee-receiving country, and France handles immigration matters for Monaco.																																					Section 3.													 Freedom to Participate in the Political Process												    																																															The authority to change the government and to initiate legislation rests solely with the prince. The constitution can be revised by common agreement between the prince and the elected National Council. The constitution and law provide citizens the ability to choose the National Council in free and fair periodic elections held by secret ballot and based on universal and equal suffrage.																																				Elections and Political Participation										Recent Elections: Observers considered the National Council elections in 2018 to be free and fair.Participation of Women and Members of Minority Groups: No laws limit the participation of women and members of minorities in the political process, and they did participate.																																					Section 4.													 Corruption and Lack of Transparency in Government												    																																															The law provides criminal penalties for corruption by officials, and the government generally implemented these laws effectively. There were no reports of government corruption during the year.																																					Section 5.													 Governmental Posture Toward International and Nongovernmental Investigation of Alleged Abuses of Human Rights												    																																															While the government did not restrict the establishment or operation of groups devoted to monitoring human rights, none existed in the country. International human rights organizations generally operated without government restriction, investigating and publishing their findings on human rights cases.Government Human Rights Bodies: The government’s mediation service is available to residents seeking redress against administrative decisions. The Office of the High Commissioner for the Protection of the Rights and Freedoms and Mediation protects human rights and fights discrimination. While the office acted independently, had adequate resources, and was considered effective, the government does not allow the high commissioner to initiate investigations on her own.																																					Section 6.													 Discrimination and Societal Abuses												    																																																Women										Rape and Domestic Violence: Rape, including spousal rape, is a criminal offense with penalties of five to 20 years in prison, depending on the type of offense. The law prohibits domestic violence, and victims may bring criminal charges against abusive spouses. Domestic violence that leads to a significant injury carries a potential sentence of 10 to 20 years in prison. The government enforced the law effectively.Sexual Harassment: Sexual harassment is a criminal offense with penalties of three months to three years in prison, depending on the type of offense. The government enforced the law efficiently. There were no reports of sexual harassment during the year.Reproductive Rights: There were no reports of coerced abortion or involuntary sterilization on the part of government authorities.Through the program Aid to Victims of Infractions, the government provided access to sexual and reproductive health services for survivors of sexual violence. Contraception was available as part of clinical management of rape.Discrimination: The law provides for the equality of men and women. The government enforced the law effectively.																																				Systemic Racial or Ethnic Violence and Discrimination										The country’s law does not clearly define discrimination, but it does prohibit any defamation, call to violence, or public expression of hate against anyone based upon gender, real or presumed race or ethnic origin, handicap, sexual orientation, or religion. Penalties for violations can include fines or up to six months in prison; violations can also be aggravating factors that lead to harsher sentences for other related crimes.Police and judicial statistics on hate crimes and hate speech were not published. According to the Organization for Security and Cooperation in Europe, the country has never submitted data on hate crimes.																																				Children										Birth Registration: Citizenship may be transmitted by a citizen parent. The government registered births immediately.Child Abuse: There are robust laws in the principality against child abuse, with punishments ranging to restraining orders to 20 years in prison based up on the severity of the case. The law provides for physical, medical, and legal aid for any child who has been a victim.Child, Early, and Forced Marriage: The legal minimum age of marriage in the country is 18 for women and men. Children younger than 18 need parental authorization to marry.Sexual Exploitation of Children: Child prostitution and child pornography are illegal, and authorities enforced the law. The minimum legal age for consensual sex is 15.International Child Abductions: The country is a party to the 1980 Hague Convention on the Civil Aspects of International Child Abduction. See the Department of State’s Annual Report on International Parental Child Abduction at  https://travel.state.gov/content/travel/en/International-Parental-Child-Abduction/for-providers/legal-reports-and-data/reported-cases.html.																																				Anti-Semitism										According to the European Jewish Congress, the Jewish community numbered approximately 1,000 persons, most of whom were not citizens of the country but foreign residents. According to the Monaco-based Association Culturelle Israelite, there were no reports of anti-Semitic acts.																																				Trafficking in Persons										There were no confirmed reports during the year that Monaco was a source, destination, or transit country for victims of human trafficking. Trafficking in persons is a criminal offense.																																				Persons with Disabilities										The constitution and the law prohibit discrimination against persons with disabilities in education, employment, health services, information, communications, buildings, transportation, the judicial system, and other state services. The government effectively implemented these laws.																																				Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation and Gender Identity										The law prohibits discrimination based on sexual orientation or gender identity, including in housing, employment, nationality, and access to government services. It provides for fines, imprisonment, or both for persons who provoke hatred or violence against a person or group due to their sexual orientation, real or perceived. The government enforced these laws.																																					Section 7.													 Worker Rights												    																																																a. Freedom of Association and the Right to Collective Bargaining										The law provides for the right of workers, including foreign workers, to form and join independent unions, bargain collectively, and conduct legal strikes; government workers do not have the right to strike. Antiunion discrimination is prohibited. The law requires the majority of members of a trade union’s bureau to be citizens of Monaco or France. Union representatives may be fired only with the agreement of a commission that includes two members from the employers’ association and two from the labor movement. The government and employers generally respected freedom of association and the right to bargain collectively, and employer organizations and trade unions negotiated agreements on working conditions that were largely respected.The government generally enforced the law. Penalties were commensurate with those for other laws involving denials of civil rights. The government provides the assistance of mediators for private or professional conflicts to avoid long and costly court procedures and to find a solution acceptable to all parties to the dispute.																																				b. Prohibition of Forced or Compulsory Labor										The constitution and law prohibit all forms of forced or compulsory labor. Information regarding the adequacy of resources, remediation effort, inspection sufficiency, and penalties for violations was not available. No cases alleging forced labor were filed during the year. It is impossible for authorities to know whether unreported cases of forced domestic labor took place in homes or on yachts, because the labor law prohibits inspectors from entering private residences unannounced without a warrant.																																				c. Prohibition of Child Labor and Minimum Age for Employment										The law prohibits the worst forms of child labor. The minimum age for employment is 16. Employment opportunities for individuals between the ages of 16 and 18 are severely restricted: Individuals younger than 18 are allowed to work eight hours per day to a maximum of 39 hours per week and are barred from night work. The government enforced the law effectively. Penalties were commensurate with those for similar crimes; no violations were reported during the year.																																				d. Discrimination with Respect to Employment and Occupation										The law requires equal pay for equal work. No data were available to substantiate any gender-based pay discrepancy. A 2019 agreement signed by representatives of seven labor-based industries and organizations in the country formalized employers’ commitments to promote workplace equality and covers 99 percent of employers in the country. The law allows the firing of foreign employees without justification (except for French members of trade unions described in section 7.a.).The government sufficiently enforced the laws, and penalties for violations were commensurate with other laws related to civil rights.																																				e. Acceptable Conditions of Work										Wage and Hour Laws: There is a minimum wage, which exceeded the official estimate of the poverty level. Law and government decree establishing wages and hours are appropriate for the country.The Department of Employment in the Ministry of Health and Social Affairs is responsible for enforcing wage and hour laws. The inspectorate had an adequate number of labor inspectors. The chief inspector answered directly to the director of the Department of Employment. Labor inspectors informed employers and employees on all matters related to labor laws and arbitrated, mediated, and reconciled labor/management disputes. They carried out regular on-site inspections, including unannounced visits, to ensure employers respected all requirements of the law.The government effectively enforced wage and hour laws. Penalties were commensurate with those for similar violations.Occupational Safety and Health: The laws and government decree establishing occupational safety and health standards were appropriate for the country. The same inspectors that cover wage and hour laws are responsible for enforcing occupational safety and health laws. Workplace health and safety committees and government labor inspectors effectively enforced the standards. Penalties were commensurate with those for similar violations, and inspection was sufficient to enforce compliance. Data were not available on enforcement of occupational safety and health standards in the small informal economy.																																				    							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Respect for the Integrity of the Person																																							a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																						b. Disappearance																																																						c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment																																																				Prison and Detention Center Conditions																																																																																				d. Arbitrary Arrest or Detention																																																				Arrest Procedures and Treatment of Detainees																																																																																				e. Denial of Fair Public Trial																																																				Trial Procedures																																												Political Prisoners and Detainees																																												Civil Judicial Procedures and Remedies																																																																																				f. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																			Section 2. Respect for Civil Liberties																																							a. Freedom of Expression, Including for Members of the Press and Other Media																																																				Internet Freedom																																												Academic Freedom and Cultural Events																																																																																				b. Freedoms of Peaceful Assembly and Association																																																						c. Freedom of Religion																																																						d. Freedom of Movement and the Right to Leave the Country																																																						e. Status and Treatment of Internally Displaced Persons																																																						f. Protection of Refugees																																																			Section 3. Freedom to Participate in the Political Process																																																				Elections and Political Participation																																																			Section 4. Corruption and Lack of Transparency in Government																																																	Section 5. Governmental Posture Toward International and Nongovernmental Investigation of Alleged Abuses of Human Rights																																																	Section 6. Discrimination and Societal Abuses																																							Women																																																						Systemic Racial or Ethnic Violence and Discrimination																																																						Children																																																						Anti-Semitism																																																						Trafficking in Persons																																																						Persons with Disabilities																																																						Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation and Gender Identity																																																			Section 7. Worker Rights																																							a. Freedom of Association and the Right to Collective Bargaining																																																						b. Prohibition of Forced or Compulsory Labor																																																						c. Prohibition of Child Labor and Minimum Age for Employment																																																						d. Discrimination with Respect to Employment and Occupation																																																						e. Acceptable Conditions of Work																																																									Tags																					Bureau of Democracy, Human Rights, and Labor																								Bureau of European and Eurasian Affairs																								Monaco