MONACO’S BRITISH

From a sprawling penthouse overlooking the port crowded with luxury yachts, the two faces of
Monaco can be contemplated. First, there is the picturesque old town and the white and red castle
perched on a rock regally surveying the Mediterranean below. In the other direction, there is the uglier
face of the independent principality, every available yard covered with council-style tower blocks to
house the richest tax avoiders in the world. Within these blocks live the growing influx of Britons,
who now number 5000 - three times as many as ten years ago.
The ​expatriate population, with its own schools, pubs, clubs, radio station and cricket team is steadily
taking control of this narrow enclave's social life, just as it did in the nineteenth century when British
aristocrats and newly-rich industrialists flocked to the attractions around Europe’s first casino at
Monte Carlo. At its current growth rate, the British colony, lured by tax breaks and easier residency
conditions, may soon surpass the 6000 native Monegasques and a similar number of Italians.
However, it will take them much longer to overtake the French who, among their other privileges, run
the 400-strong police force that makes the mini-territory of 340,000 bank accounts virtually
crime-free.
The reason for expatriates flooding to Monaco is abundantly clear but how exactly do they spend their
time in the tax haven? What constitutes a typical day for the recently wealthy expatriates following in
the footsteps of Greek shipowners, Arab oil millionaires and Middle Eastern Jewish financiers who
provided the post-war capital that turned the sleepy seaside rock into a prime investment paradise and
a safe place to hide your cash? The British racing drivers David Coulthard and Jensen Button, who
have become permanent residents, spend much of their time driving around the 2.2-square-kilometre
mini-nation. The entertainment set, including Roger Moore, Ringo Starr and Shirley Bassey keep a
low profile but the big money businessmen are more visible. Philip Green, the extravagant corporate
raider, whose three-day birthday in Cyprus cost £5 million, finds Monaco a handy place to meet new
economic exiles. But even these flamboyant inhabitants are usually discreet, shunning the nightlife in
favour of drinking at the nineteenth century Hotel de Paris, or lunching at Alain Ducasse's three-star
restaurant, where £1000 meals are routine.
The big names, though, are far outnumbered by rank-and-file new British expats who belong to what
is called the Monaco Mob. These invaders, attracted by the idle display of quickly-acquired wealth,
have little to do but walk the dog, sunbathe on the handkerchief-sized beaches, play the fruit
machines, read the ​Financial Times or spend the day in France. They may be on the Mediterranean
but they settle for recreating a familiar lifestyle in the two pubs, the ​Flashman and the ​Ship and
Castle​, or visiting nightclubs with English names like ​Jimmy’z​.
Unlike other foreigners, few Britons seek Monegasque nationality and few aim to be included in the
inner circle around the royal family, who actively discourage too much attention being focused on
their tax haven. Monaco, with its non-existent banking laws that have created a zone free of income
tax, and capital gains and inheritance taxes, openly encourages investment. This is perfectly legal in a
territory where there are no laws or tax fraud even though it has led to a substantial outflow of funds
from Britain estimated, according to a confidential report, to be about £1 billion annually. Trying to
trace the cash among the 340,000 accounts protected by secrecy laws is impossible, which makes
Monaco attractive to those who prefer not to ​disclose​ their liquid assets.
Apart from the Britons who have already got a foothold in the principality, there are many more
preparing to join them. Under a 1998 law, the Monaco royal family reduced residence qualifications
for citizens of European Union nations, making ownership of property unnecessary to obtain a
ten-year permit if the applicant has £5 million to invest. Renting a flat and an occasional visit each
year is now enough to claim credentials as an honorary Monegasque. These changes, which appear to
be having the desired effect of enticing yet more tax avoiders from Britain, are part of a drive to beat
Switzerland as Europe's best fiscal hideaway.
So, how will those straining at the leash to prevent the tax authorities from relieving them of some of
their precious assets be accommodated, when 300-metre-wide Monaco appears to be bursting at the
seams? Well, until recently one-fifth of the mini-state was under water. The royal family has had a
massive prefabricated steel segment floated in from Spain to be the base for another residential and
business zone. Here, under the watchful eye of the police force and the ubiquitous ​surveillance
cameras, the new British entrepreneurs will have somewhere safe to show off their riches.
1. Monaco is now a principality
A. dominated by its port.
B. whose tower blocks appear to be getting taller.
C. of stark contrasts.
D. which is spreading in all directions.
2. What does the present influx of Britons into Monaco have in common with that of the
nineteenth century?
A. It is being led by aristocrats.
B. It is rapid.
C. It has been caused by the desire to gamble.
D. It threatens the French domination of Monaco.
3. The word ‘​expatriate​’ in the second paragraph is closest in meaning to
A. repatriating B. emigrant C. molten D. immense
4. Most of the rich and famous Britons in Monaco
A. have been responsible for its post-war transformation.
B. make numerous new business connections there.
 C. are involved in the entertainment industry.
D. try to be fairly inconspicuous.
5. The word ‘​disclose​’ in the fifth paragraph is closest in meaning to
A. harden B. conceal C. lease D. unveil
6. The majority of British expatriates in Monaco
A. live in the same way as they would in Britain.
B. try to ingratiate themselves with the royal family.
C. are amongst the worst-behaved inhabitants.
D. belong to exclusive clubs.
7. What has been the result of the mass exodus of Britons to Monaco?
A. an investigation by British tax authorities into tax evasion
B. a freezing of Monegasque bank accounts in British names
C. a set of new tax laws forbidding transfer of funds out of Britain
D. a huge reduction in taxes previously paid by expatriates
8. Before 1998, in order to gain a Monaco residence permit, foreigners
A. were required to spend most of the year in the principality.
B. had to be from an EU country.
C. needed to have their own property there.
D. had to have at least £5 million in a bank account
9. The word ‘​surveillance​’ in the last paragraph is closest in meaning to
A. supervision B. invasion C. exaltation D. indifference
10. Where will the next group of expatriates be housed?
A. in the 20% of land yet to be developed
B. in new blocks that will replace those to be pulled down
C. in a new housing development near the city centre
D. in an area of land reclaimed from the sea

1. C 2. B 3. B 4. D 5. D

6. A 7. D 8. C 9. A 10. D