Monaco

Monaco,officially the Principality of Monaco,is a sovereign city-state on the French Riviera.

The principality is home to nearly 40,000 residents as of the 2020s of whom about a quarter are nationals .It is recognised as one of the wealthiest and most expensive places in the world.The official language of Monaco is French.

Monaco is the second-smallest sovereign state in the world, after Vatican City. It consists of nine administrative wards, the largest of which is Monte Carlo.

The principality is governed under a form of constitutional monarchy, with Prince Albert IIas head of state, who wields political power despite his constitutional status.

The House of Grimaldi has ruled Monaco, with brief interruptions, since 1297.The state’s sovereignty was officially recognised by the Franco-Monégasque Treaty of 1861, with Monaco becoming a full United Nationsvoting member in 1993. Despite Monaco’s independence and separate foreign policy, its defence is the responsibility of France, besides maintenance of two small military units.

Monaco’s economic development was spurred in the late 19th century with the opening of the state’s first casino, the Monte Carlo Casino, and a rail connection to Paris.

Monaco’s mild climate, scenery, and gambling facilities have contributed to its status as a tourist destination and recreation centre for the rich. Monaco has become a major banking centre and a tax haven; it has no personal income tax (except for French citizens) and low business taxes.

Over 30% of residents are millionaires. Monaco is a global hub of money laundering, and in June 2024 the Financial Action Task Force placed Monaco under increased monitoring to combat money laundering and terrorist financing.

Monaco is not part of the European Union 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 joined the hosts the annual motor race, the Monaco Grand Prix, one of the original Grands Prix of Formula One. The principality has a club football team, AS Monaco, which competes in French Ligue 1 and has been French champions on multiple occasions.

A centre of research into marine conservation, Monaco is home to one of the world’s first protected marine habitats, an Oceanographic Museum, and the International Atomic Energy Agency Marine Environment Laboratories, the only marine laboratory in the UN structure.