Chapter I — Financial Principles

Article 157 — Public Finances

The public finances of the Principality shall be organised in accordance with the principles of legality, accountability, transparency and continuity of public services.

They shall comprise the finances of the State and those of the fiefs, each falling under the constitutionally competent authorities.

The Crown, the Government and the seigneurial authorities shall ensure the preservation of the Principality's financial interests.

Article 158 — Separation of National and Territorial Finances

Fiefs shall enjoy financial autonomy under the conditions prescribed by the Constitution.

Their budgets, revenues and expenditure shall be distinct from those of the State, subject to lawfully established contributions, transfers and commitments.

The State may not arbitrarily appropriate a fief's own resources.

Territorial authorities may not commit national finances without due authorisation.

Chapter II — The National Budget

Article 159 — Preparation of the Budget

The Government shall prepare the annual State budget.

The Prime Minister shall present it to the Crown after coordinating the competent administrations.

The budget shall provide for national revenues and expenditure, including those relating to defence, health, education, social protection and the functioning of the institutions.

It shall comply with constitutional financial obligations.

Article 160 — Approval of the Budget by the Crown

The national budget shall be submitted for approval to the Sovereign Prince or Sovereign Princess or, during a vacancy of the Throne, to the Chancellor.

Its ordinary adoption shall not require a prior parliamentary vote.

The Crown may approve the budget or reject it by a reasoned decision.

The Government may submit a revised budget following a rejection.

Article 161 — Overriding a Budget Rejection

Where the Crown successively rejects two budget proposals submitted by the Government for the same financial year, the matter may be referred to Parliament.

The budget may then be adopted despite the Crown's rejection through an affirmative vote attaining both of the following majorities:

At least two-thirds of the entire membership of the Chamber of Citizens.

At least two-thirds of the total weighted votes of the Chamber of Peers.

The budget so adopted shall enter into force in accordance with the statutory publication procedures.

An organic law shall guarantee the provisional continuity of essential expenditure where the budget has not yet been adopted.

Chapter III — Taxation

Article 162 — Legality of Taxation

No tax, levy or public contribution may be established without a valid legal basis.

National taxes shall be established in accordance with the applicable legislative procedure.

The Crown may not unilaterally create a national tax.

Lords shall retain their territorial taxation powers in accordance with Articles 99 and 101 of the Constitution.

Territorial levies may not constitute internal customs duties.

Chapter IV — Currency and the Central Bank

Article 163 — Monetary Unity

The Principality shall have a single national currency.

Currency issuance and the general rules of monetary policy shall fall within the competence of the relevant national institutions.

No fief may establish a currency having legal tender independently of the national monetary system.

The arrangements for issuance, circulation and convertibility shall be determined by law.

Article 164 — Independence of the Central Bank

The Central Bank of Carlisne shall be a national institution independent in the performance of its monetary functions.

It shall safeguard currency stability and exercise the powers assigned to it by law.

It may not receive individual political instructions concerning its monetary decisions, except in cases expressly prescribed by the Constitution.

Its independence shall not exempt it from statutory obligations of transparency and accountability.

Article 165 — Governor of the Central Bank

The Governor of the Central Bank shall be nominated by the Prime Minister.

The appointment shall require approval by an absolute majority of the entire membership of the Chamber of Citizens and of the total weighted votes of the Chamber of Peers.

The Governor shall be appointed for a non-renewable term of twelve years.

The Governor may not be removed on account of a political disagreement concerning the lawful conduct of monetary policy.

The exceptional conditions for termination of office shall be defined by organic law.

Chapter V — Oversight of Public Finances

Article 166 — Court of Auditors

The Court of Auditors of Carlisne shall be the supreme institution responsible for reviewing the regularity and use of national finances.

It shall audit national administrations, bodies receiving national funds and the use of financial transfers paid to fiefs.

It shall have no general power to audit exclusively territorial resources unconnected with any national commitment or funding.

It shall perform its duties independently.

Article 167 — Presidency of the Court of Auditors

The President of the Court of Auditors shall be nominated by the Prime Minister.

The appointment shall require approval by an absolute majority of the entire membership of the Chamber of Citizens and of the total weighted votes of the Chamber of Peers.

The President shall serve a nine-year term.

The safeguards for independence, incompatibilities and arrangements for termination of office shall be established by organic law.

Chapter VI — Borrowing and Financial Commitments

Article 168 — Public Debt

The State and the fiefs may borrow under the conditions prescribed by law.

National borrowing of major significance shall be subject to the Crown's approval.

Territorial borrowing exceeding the thresholds established by national legislation shall require prior national authorisation.

The Constitution shall impose no general ceiling on public deficits or debt.

Financial commitments must nevertheless comply with obligations of transparency, legality and budgetary accountability.

Chapter VII — Organic Provisions

Article 169 — Organic Law Governing Finances

An organic law shall determine, in particular:

The arrangements for preparing, presenting and implementing the national budget.

The procedures applicable in the event of budget rejection.

The rules governing public accounting and oversight of public finances.

The organisation and functioning of the Central Bank.

The powers and safeguards for independence of the Court of Auditors.

The thresholds and procedures for authorising public borrowing.

The financial mechanisms for cooperation between the State and the fiefs.

It shall respect the financial autonomy constitutionally guaranteed to the fiefs.