Overview
Monaco, officially the Principality of Monaco, is a sovereign city-state and microstate located in Western Europe on the French Riviera. It is a semi-enclave bordered by France to the north, east, and west, with the Mediterranean Sea to the south. The Italian region of Liguria lies approximately 15 km (9.3 mi) to the east.
With a population of 38,423 living in an area of 2.08 km² (0.80 sq mi), Monaco is the second smallest sovereign state in the world after Vatican City, and also the most densely populated country globally. It has the world's shortest national coastline of any non-landlocked nation, measuring just 3.83 km (2.38 mi).
Language and Government
Although French is the official language of Monaco, Italian and Monégasque are also widely spoken and understood. Fewer than 10,000 of Monaco's residents are Monégasque nationals.
Monaco is governed under a form of semi-constitutional monarchy, with Prince Albert II as head of state holding substantial political powers. The prime minister serves as head of government and can be either a Monégasque or French citizen; the monarch consults with the Government of France before any appointment. Key members of the judiciary are detached French magistrates.
History and Sovereignty
The House of Grimaldi has ruled Monaco, with brief interruptions, since 1297. Monaco was first mentioned by the Greek historian Hecataeus of Miletus, who referred to it as "Monoikos, a Ligurian town." In 1191, the Holy Roman Empire granted Monaco to the Genoese in return for combating piracy. By the early 1200s, the Genoese had built a castle on the rock and were utilizing the port.
The Grimaldi family, an ousted branch of a Genoese family, captured Monaco in 1297 by posing as monks, though they had to contest it for approximately a century before gaining official control. In 1419, the Grimaldi family purchased Monaco from the Crown of Aragon and became the official rulers. In 1612, Honoré II began styling himself "Prince" of Monaco.
During the French Revolution, Revolutionary forces captured Monaco and occupied it from 1793 to 1814. The principality was reestablished under the Grimaldis in 1814 and designated a protectorate of the Kingdom of Sardinia by the Congress of Vienna in 1815. By the Treaty of Turin in 1860, Sardinian forces withdrew, and Monaco became a French protectorate once again. Italian was replaced by French as the official language in 1860.
The Franco-Monégasque Treaty of 1861 officially recognised Monaco's sovereignty and the transfer of the towns of Menton and Roquebrune to France. Monaco became a full United Nations voting member in 1993. Despite its independence and separate foreign policy, France remains responsible for Monaco's defence, notwithstanding two small military units.
Economy and Status
Monaco is recognised as one of the wealthiest and most expensive places in the world. Its economic development was spurred in the late 19th century with the opening of the Monte Carlo Casino and a rail connection to Paris. The country's mild climate, scenery, and gambling facilities contributed to its status as a tourist destination and recreation centre for the wealthy.
Monaco has become a major banking centre and has sought to diversify into the services sector and small, high-value-added, non-polluting industries. It is a tax haven with no personal income tax (except for French citizens) and low business taxes. Over 30% of residents are millionaires, with real estate prices reaching €100,000 ($116,374) per square metre in 2018. In June 2024, the Financial Action Task Force placed Monaco under increased monitoring to combat money laundering and terrorist financing.
International Relations and Membership
Monaco is among the 46 member states that constitute the Council of Europe, having joined in 2004. It is not part of the European Union (EU), but participates in certain EU policies, including customs and border controls. Through its relationship with France, Monaco uses the euro as its sole currency. Monaco is also a member of the Organisation internationale de la Francophonie (OIF).
Sports and Culture
Monaco hosts the annual Monaco Grand Prix, one of the original Grands Prix of Formula One motor racing. The local motorsports association gives its name to the Monte Carlo Rally, hosted in January in the French Alps.
The principality has a club football team, AS Monaco, which competes in French Ligue 1 and has been French champions on multiple occasions. Monaco also has a basketball team that plays in the EuroLeague.
Marine Conservation and Research
Monaco is a centre of marine conservation and research. It is home to one of the world's first protected marine habitats, an Oceanographic Museum, and the International Atomic Energy Agency Marine Environment Laboratories, which is the only marine laboratory in the UN system.