MP Éric Ciotti proposes shared economic zone linking Nice and Monaco

French MP Éric Ciotti has proposed creating a shared economic zone between Nice and Monaco. Under the plan, Monegasque companies could establish operations on the Var plain west of Nice while retaining fiscal conditions similar to those in the Principality. The proposal aims to stimulate economic activity in a transforming area by leveraging geographic proximity and existing labour links between the territories.

The initiative would require an international treaty between France and Monaco and subsequent approval by the French Parliament. There is currently no legal framework in France that would automatically allow a fiscally differentiated area within French territory to grant benefits to foreign companies. Fiscal and labour regulations are federal competences in France and are governed by strict rules, creating legal and administrative obstacles to such a zone.

Key questions remain about how taxation would be managed for companies locating in the proposed area and what rules would govern worker access. Around 50,000 French residents commute daily to work in Monaco, underscoring the importance of clear arrangements on cross-border employment, social security and tax treatment.

A similar project is being developed near Organyà in Alt Urgell, led jointly by the Government of Andorra and the Generalitat of Catalonia. The plan envisages a special economic zone on land owned by the Institut Català del Sòl, centred on the Vilansats sector and covering up to 36 hectares. Authorities have already tendered the first phase of works on site preparation and access roads.

As with the Nice–Monaco proposal, the Organyà project faces significant conditions before it can proceed. Progress depends on urban planning approvals, the provision of infrastructure and the establishment of a tax regime that is both compatible with Spanish law and attractive to companies from Andorra. At present there is no operational special fiscal regime for the site; firms that locate there would be subject to Spanish taxation, a factor that could affect investment decisions.

Both initiatives illustrate the technical, administrative and legal challenges involved in creating cross-border economic spaces where national regulations on taxation and labour remain tightly controlled. Implementing such projects would require complex intergovernmental agreements and adjustments to existing legal frameworks.