Monaco National Council Rallies to Sustain Carlo App Amid Funding Debates

Members of Monaco’s National Council are advocating for the continuation of government support for the Carlo payment app, which offers a five percent cashback on purchases to boost local commerce. Since its inception in 2019, Carlo has played a pivotal role in encouraging monetary circulation within the principality, particularly during the economic downturn caused by the pandemic. However, with upcoming budget discussions for 2025, there is uncertainty regarding the future financial backing of the app due to its high operational costs.

Council member Corinne Bertani emphasized the app’s importance in a recent session, highlighting that Carlo not only promotes local spending but also contributes to the state's revenue through VAT. Under the existing financial arrangement, the government covers 7.6 percent of the 8.6 percent platform fee, with merchants paying the remainder. Proposed adjustments for 2025 suggest increasing the merchant's share to 3.6 percent, sparking concern that higher fees might deter business participation and compromise the app’s effectiveness.

The finance ministry, led by Pierre-André Chiappori, acknowledges Carlo's significant economic contributions but underscores the need for fiscal responsibility. Chiappori proposed a monthly spending cap of 1,500 euros per user to help manage costs, estimating potential savings of three million euros annually. He stressed the importance of distinguishing the VAT generated directly by Carlo from what might have been collected independently of it, as part of a broader effort to balance public support for the app with prudent budget management.