Monaco

Monaco, officially the Principality of Monaco, is a sovereign city-state and microstate on the French Riviera a few kilometres west of the Italian region of Liguria, in Western Europe, on the Mediterranean Sea. It is a semi-enclave bordered by France to the north, east and west. The principality is home to nearly 39,000 residents as of the 2020s, of whom about 9,883 are Monégasque nationals. It is recognised as one of the wealthiest and most expensive places in the world. The official language of Monaco is French. Monégasque, English and Italian are also spoken and understood by many residents.

With an area of , Monaco is the second-smallest sovereign state in the world, after Vatican City. Its population of 38,423 in 2024 makes it the most densely populated sovereign state. Monaco has the world's shortest national coastline: . The principality is about from the border with Italy and consists of nine administrative wards, the largest of which is Monte Carlo.

The principality is governed under a form of semi-constitutional monarchy, with Prince Albert II as head of state, who holds substantial political powers. The prime minister, who is the head of government, can be either a Monégasque or French citizen; the monarch consults with the Government of France before an appointment. Key members of the judiciary are detached French magistrates. 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 Nations voting 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 sought to diversify into the services sector and small, high-value-added, non-polluting industries. Monaco is a tax haven; it has 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. 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 (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 joined the Council of Europe in 2004 and is a member of the (OIF). It hosts the annual motor race, the Monaco Grand Prix, one of the original Grands Prix of Formula One. 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, as well as a basketball team, which plays in the EuroLeague. 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.

History

Monaco was first mentioned by the Greek historian Hecataeus of Miletus, who referred to it as "''Monoikos'', a Ligurian town". Strabo referred to it as ''Monoikon limen'', explaining that ''Monoikos'' (Greek for "the solitary one") was another name for Heracles, who had a temple here; it is likely, however, that it is in fact an alteration of an older Ligurian name.

In 1191, the Holy Roman Empire granted Monaco to the Genoese in return for cracking down on pirates. By the early 1200s, the Genoese had built a castle on the rock and were utilizing the port. An ousted branch of a Genoese family, the Grimaldis, captured it in 1297 by posing as monks, but then had to contest it for a century before gaining official control. Though the Republic of Genoa would last until the 19th century, it allowed the Grimaldi family to keep Monaco. Likewise, both France and Spain left it alone for hundreds of years due to agreements with either of them, especially for defense. France annexed it in the French Revolution at the end of the 18th century, but after the defeat of Napoleon it was put under the care of the Kingdom of Sardinia.

In the 19th century, when Sardinia became a part of Italy, the region came under French influence but France allowed it to remain independent and it escaped being incorporated into Italy. However, it shrank considerably when it traded two nearby towns in exchange for sovereignty from France. Monaco relied on tourism from the late 19th century to remain financially solvent, and it was at this time the famous casino and hotels were established. Monaco was overrun by the Axis powers in the 1940s during the Second World War and for a short time was administered by Italy, then Nazi Germany, before being liberated. Although the occupation lasted for just a short time, it resulted in the deportation of the Jewish population and execution of several French Resistance members from Monaco. Since then Monaco has been independent. It has taken some steps towards integration with the European Union.

Arrival of the Grimaldi family

Following a grant of land from Emperor Henry VI in 1191, Monaco was refounded in 1215 as a colony of Genoa. Monaco was first ruled by a member of the House of Grimaldi in 1297, when Francesco Grimaldi, known as "''Malizia''" (translated from Italian either as "The Malicious One" or "The Cunning One"), and his men captured the fortress protecting the Rock of Monaco while dressed as Franciscan friars – a ''monaco'' in Italian – although this is a coincidence as the area was already known by this name.

Francesco was evicted a few years later by the Genoese forces, and the struggle over "the Rock" continued for another century. The Grimaldi family was Genoese and the struggle was something of a family feud. The Genoese engaged in other conflicts, and in the late 1300s Genoa lost Monaco after fighting the Crown of Aragon over Corsica. Aragon eventually became part of a united Spain, and other parts of the land grant came to be integrated piecemeal into other states. Between 1346 and 1355, Monaco annexed the towns of Menton and Roquebrune, increasing its territory by almost ten times.

1400–1800

In 1419, the Grimaldi family purchased Monaco from the Crown of Aragon and became the official and undisputed rulers of "the Rock of Monaco". In 1612, Honoré II began to style himself "Prince" of Monaco. In the 1630s, he sought French protection against the Spanish forces and, in 1642, was received at the court of Louis XIII as a "duc et pair étranger".

The princes of Monaco became vassals of the French kings while at the same time remaining sovereign princes. Though successive princes and their families spent most of their lives in Paris, and intermarried with French and Italian nobilities, the House of Grimaldi is of Genoese origin. The principality continued its existence as a protectorate of France until the French Revolution.

19th century

In 1793, Revolutionary forces captured Monaco and until 1814 it was occupied by the French (in this period much of Europe had been overrun by the French armies under the command of Napoleon Bonaparte). The principality was reestablished in 1814 under the Grimaldis. It was designated a protectorate of the Kingdom of Sardinia by the Congress of Vienna in 1815. Monaco remained in this position until 1860 when, by the Treaty of Turin, the Sardinian forces pulled out of the principality; the surrounding County of Nice (as well as Savoy) was ceded to France. Monaco became a French protectorate once again. Italian was the official language in Monaco until 1860, when it was replaced by French.

Before this time there was unrest in Menton and Roquebrune, where the townspeople had become weary of heavy taxation by the Grimaldi family. They declared their independence as the Free Cities of Menton and Roquebrune, hoping for annexation by Sardinia. France protested. The unrest continued until Charles III of Monaco gave up his claim to the two mainland towns (some 95% of the principality at the time) that had been ruled by the Grimaldi family for over 500 years.

These were ceded to France in return for 4,100,000 francs. The transfer and Monaco's sovereignty were recognised by the Franco-Monégasque Treaty of 1861. In 1869, the principality stopped collecting income tax from its residents — an indulgence the Grimaldi family could afford to entertain thanks solely to the extraordinary success of the casino. This made Monaco a playground for the rich and a favoured place for them to live.

20th century

Until the Monégasque Revolution of 1910 forced the adoption of the 1911 Constitution of Monaco, the princes of Monaco were absolute rulers. The new constitution slightly reduced the autocratic rule of the Grimaldi family and Prince Albert I suspended it during the First World War.

In July 1918, a new Franco-Monégasque Treaty was signed, providing for limited French protection over Monaco. The treaty, endorsed in 1919 by the Treaty of Versailles, established that Monégasque international policy would be aligned with French political, military and economic interests. It also resolved the Monaco succession crisis.

In 1943, the Italian Army invaded and occupied Monaco, forming a fascist administration. In September 1943, after Mussolini's fall from power, the German Wehrmacht occupied Italy and Monaco, and the Nazi deportation of the Jewish population began. René Blum, the prominent French Jew who founded the Ballet de l'Opéra in Monte Carlo, was arrested in his Paris home and held in the Drancy deportation camp outside the French capital before being transported to Auschwitz, where he was later murdered. Blum's colleague Raoul Gunsbourg, the director of the Opéra de Monte-Carlo, helped by the French Resistance, escaped arrest and fled to Switzerland. In August 1944, the Germans executed René Borghini, Joseph-Henri Lajoux and Esther Poggio, who were Resistance leaders.

Rainier III, succeeded to the throne on the death of his grandfather, Prince Louis II, in 1949, and ruled until 2005. On 19 April 1956, Prince Rainier married the American actress Grace Kelly, an event that was widely televised and covered in the popular press, focusing the world's attention on the tiny principality.

A 1962 amendment to the constitution abolished capital punishment, provided for women's suffrage and established a Supreme Court of Monaco to guarantee fundamental liberties. In 1963, a crisis developed when Charles de Gaulle blockaded Monaco, angered by its status as a tax haven for wealthy French citizens.

In 1993, the Principality of Monaco became a member of the United Nations, with full voting rights.

21st century

In 2002, a new treaty between France and Monaco specified that, should there be no heirs to carry on the Grimaldi dynasty, the principality would still remain an independent nation rather than revert to France. Monaco's military defense is still the responsibility of France.

On 31 March 2005, Rainier III, who was too ill to exercise his duties, relinquished them to his only son and heir, Albert. He died six days later, after a reign of 56 years, with his son succeeding him as Albert II, Sovereign Prince of Monaco. Following a period of official mourning, Prince Albert II formally assumed the princely crown on 12 July 2005, in a celebration that began with a solemn Mass at Saint Nicholas Cathedral, where his father had been buried three months earlier. His accession to the Monégasque throne was a two-step event with a further ceremony, drawing heads of state for an elaborate reception, held on 18 November 2005, at the historic Prince's Palace in Monaco-Ville. On 27 August 2015, Albert II apologised for Monaco's role during World War II in facilitating the deportation of a total of 90 Jews and resistance fighters, of whom only nine survived. "We committed the irreparable in handing over to the neighbouring authorities women, men and a child who had taken refuge with us to escape the persecutions they had suffered in France," Albert said at a ceremony in which a monument to the victims was unveiled at the Monaco cemetery. "In distress, they came specifically to take shelter with us, thinking they would find neutrality."

In 2015, Monaco unanimously approved a modest land reclamation expansion intended primarily to accommodate desperately needed housing and a small green/park area. Monaco had previously considered an expansion in 2008, but had called it off. The plan is for about six hectares (15 acres) of apartment buildings, parks, shops and offices to a land value of about 1 billion euros. The development will be adjacent to the Larvotto district and also will include a small marina. There were four main proposals, and the final mix of use will be finalised as the development progresses. The name for the new district is Anse du Portier.

On 29 February 2020, Monaco announced its first case of COVID-19, a man who was admitted to the Princess Grace Hospital Centre then transferred to Nice University Hospital in France.

On 3 September 2020, the first Monégasque satellite, OSM-1 CICERO, was launched into space from French Guiana aboard a Vega rocket. The satellite was built in Monaco by Orbital Solutions Monaco.

Government

Politics

Monaco has been governed under a constitutional monarchy since 1911, with the Sovereign Prince of Monaco as head of state. The executive branch consists of a Prime Minister as the head of government, who presides over the other five members of the Council of Government. Until 2002, the Prime Minister was a French citizen appointed by the prince from among candidates proposed by the Government of France; since a constitutional amendment in 2002, the Prime Minister can be French or Monégasque. On 2 September 2024, Prince Albert II appointed a French citizen, Didier Guillaume, to the office.

Under the 1962 Constitution of Monaco, the prince shares his veto power with the unicameral National Council. The 24 members of the National Council are elected for five-year terms; 16 are chosen through a majority electoral system and 8 by proportional representation. All legislation requires the approval of the National Council. Following the 2023 Monegasque general election, all 24 seats are held by the pro-monarchist Monegasque National Union.

The principality's city affairs are managed by the Municipality of Monaco. The municipality is directed by the Communal Council, which consists of 14 elected members and is presided over by a mayor. Georges Marsan has been mayor since 2003. Unlike the National Council, communal councillors are elected for four-year terms and are strictly non-partisan; oppositions inside the council frequently form.

Members of the judiciary of Monaco are appointed by the Sovereign Prince. Key positions within the judiciary are held by French magistrates, proposed by the Government of France. Monaco currently has three examining magistrates.

Security

The wider defence of the nation is provided by France. Monaco has no navy or air force, but on both a per-capita and per-area basis, Monaco has one of the largest police forces (515 police officers for about 38,000 people) and police presences in the world. Its police includes a special unit which operates patrol and surveillance boats jointly with the military. Police forces in Monaco are commanded by a French officer.

There is also a small military force. This consists of a bodyguard unit for the prince and his palace in Monaco-Ville called the Compagnie des Carabiniers du Prince (Prince's Company of Carabiniers); together with the militarised, armed fire and civil defence corps ( Sapeurs-Pompiers) it forms Monaco's total forces. The Compagnie des Carabiniers du Prince was created by Prince Honoré IV in 1817 for the protection of the principality and the princely family. The company numbers exactly 116 officers and men; while the non-commissioned officers and soldiers are local, the officers have generally served in the French Army. In addition to their guard duties as described, the carabiniers patrol the principality's beaches and coastal waters.

Geography

Monaco is a sovereign city-state, with five quarters and ten wards, located on the French Riviera in Western Europe. It is bordered by France's Alpes-Maritimes department on three sides, with one side bordering the Mediterranean Sea. Its centre is about from Italy and only northeast of Nice

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