Monaco’s National Council has approved the Principality’s amended 2026 budget after a week of political tension that brought two major domestic concerns back into focus: employment opportunities for Monegasque nationals and access to state-owned housing.
The vote took place on 15 October, with 13 councillors in favour, two opposed and five abstaining. The decision followed the suspension of an earlier budget debate, when disagreements over the relationship between the Government and the elected Assembly threatened to stall proceedings.
At the centre of the dispute was the application of the National Priority principle, which gives Monegasque nationals precedence in employment. The Council called for stronger safeguards to ensure qualified citizens have fair access to public sector positions. Following renewed discussions, the Government agreed to establish a joint commission to assist Monegasques experiencing professional difficulties. Senior civil service vacancies will also be systematically advertised, alongside annual reporting on how employment priority rules are implemented.
Housing was the second major issue. The Government reaffirmed its ambition to expand the supply of state-owned apartments, with the longer-term objective of accommodating 75% of Monegasque nationals in the public housing sector. However, delays to construction projects mean no new state apartments are expected to be delivered in 2026 or 2027. Authorities plan to accelerate renovations to make approximately 90 additional homes available at the next allocation round.
A Tighter Financial Outlook
The revised budget also reflects mounting pressure on public finances. Forecast revenue has fallen by €67.9 million to €2.149 billion, partly due to lower VAT and corporate tax receipts following exceptional income from the Mareterra development.
Meanwhile, ordinary expenditure has increased by 3% compared with the original budget. Investment spending worth €107 million has been deferred, prompting concerns among councillors that postponing projects will simply shift costs into future years.
Despite these adjustments, the Government forecasts a €5.9 million surplus, with no borrowing or personal income tax.
Attention now turns to December, when the National Council will examine the initial 2027 budget. Members will be looking for tangible progress on housing delivery and employment protections, testing whether the latest commitments lead to lasting improvements for Monaco’s citizens.