Monaco

2.1. Etymology

Monaco's name originates from a 6th-century BC Phocaean Greek colony located nearby. The native Ligurians referred to the site as Monoikos, derived from the Greek "μόνοικος" (μόνοικος_monoikos^{Greek, Ancient}), meaning "single house" or "lone dwelling." This term is composed of "μόνος" (μόνος_monos^{Greek, Ancient}), meaning "alone" or "single," and "οἶκος" (οἶκος_oikos^{Greek, Ancient}), meaning "house."

According to an ancient myth, the demigod Hercules passed through the Monaco area and drove away the previous deities. Consequently, a temple was constructed in his honor, known as the temple of Hercules Monoecus (meaning Hercules of the single house or dwelling). As this was the only significant temple in the area, the settlement came to be called Monoikos, which eventually evolved into Monaco.

2.2. Early History and Genoese Period

The area of present-day Monaco has been inhabited since ancient times. The Phocaean Greeks established a colony named Monoikos in the 6th century BC. Later, the region came under Roman and subsequently Roman Imperial influence, serving as a port along the Mediterranean trade routes. Following the decline of the Roman Empire, the area experienced various incursions and periods of instability.

By the 10th century, the region was subject to raids by Saracens. In 1191, Emperor Henry VI of the Holy Roman Empire granted suzerainty over Monaco to the Republic of Genoa. The Genoese, major maritime power of the time, recognized the strategic importance of the Rock of Monaco for controlling coastal trade and defending against piracy. In 1215, a Genoese Ghibelline contingent led by Fulco del Cassello began the construction of a fortress on the Rock, marking the foundation of modern Monaco. The port and fortifications established during this period laid the groundwork for Monaco's future development. Genoese families, including the Grimaldi, played significant roles in the political and economic life of Genoa, and by extension, Monaco.

2.3. Establishment of Grimaldi Rule

The rule of the House of Grimaldi over Monaco began on January 8, 1297, when François Grimaldi, known as "Malizia" (the Malicious or the Cunning), seized the fortress on the Rock of Monaco. Disguised as a Franciscan friar (monaco_monk^Italian in Italian - a coincidental connection to the territory's name), he and his cousin Rainier I, Lord of Cagnes, along with a small group of men, gained entry to the Genoese-held citadel and captured it. This event is commemorated on Monaco's coat of arms, which features two monks wielding swords.

However, this initial control was tenuous. François Grimaldi was expelled by Genoese forces a few years later, in 1301. The Grimaldi family, an influential Guelf family from Genoa, continued to contest for control of Monaco amidst the broader political struggles between Guelfs (papal supporters) and Ghibellines (imperial supporters) in Genoa and Italy. The Grimaldis were not able to permanently secure their dominion over Monaco until 1419. In that year, three branches of the Grimaldi family - Lambert, Jean, and Antoine Grimaldi - jointly purchased Monaco, along with the neighboring towns of Menton and Roquebrune, from the Crown of Aragon, to whom Genoa had previously ceded rights. This acquisition marked the definitive establishment of the Grimaldi dynasty as the undisputed rulers of Monaco, laying the foundation for centuries of continuous, though sometimes challenged, sovereignty.

2.4. 14th to 18th Century

Following the Grimaldi family's purchase of Monaco from the Crown of Aragon in 1419, they consolidated their rule over "the Rock of Monaco." Throughout the 15th and 16th centuries, Monaco navigated a complex geopolitical landscape, often seeking alliances to protect its small territory from larger powers. Lucien I (reigned 1505-1523) successfully defended Monaco against a lengthy Genoese siege in 1507.

In 1524, during the Italian Wars, Augustin I placed Monaco under the protection of Spain, then ruled by Emperor Charles V. This Spanish protectorate lasted until 1641. In 1612, Honoré II was the first Grimaldi ruler to formally adopt the title of "Prince of Monaco," a significant step in elevating the status of the lordship to that of a principality. Seeking to reduce Spanish influence, Honoré II cultivated relations with France. In 1633, Spain officially recognized Monaco's sovereignty.

A pivotal moment came with the Treaty of Péronne in 1641, signed between Honoré II and King Louis XIII of France. This treaty ended the Spanish protectorate and placed Monaco under French protection. In exchange, Honoré II was received at the French court in 1642 as a "duc et pair étranger" (foreign duke and peer), and the Grimaldis were granted various French fiefdoms, including the Duchy of Valentinois. The Princes of Monaco thus became vassals of the French kings while retaining their sovereignty over Monaco.

Throughout the 17th and 18th centuries, the Grimaldi princes and their families often resided in Paris, intermarrying with French and Italian nobility. Despite this, the House of Grimaldi maintained its Genoese origins. Monaco continued as a French protectorate, benefiting from French military security, until the French Revolution. In 1793, French revolutionary forces annexed Monaco, deposing the Grimaldi family and incorporating the territory into France as Fort Hercules. This period marked a temporary end to Grimaldi rule and Monaco's independence.

2.5. 19th Century

The 19th century was a period of profound transformation for Monaco. Following its annexation by France in 1793, Grimaldi rule was suspended. After Napoleon's defeat, the Treaty of Paris in 1814 restored the Grimaldi family to power. However, the Congress of Vienna in 1815 designated Monaco a protectorate of the Kingdom of Sardinia. This status continued until 1860.

During the mid-19th century, the towns of Menton and Roquebrune, which constituted about 95% of Monaco's territory and were its main sources of revenue, grew discontented with heavy taxation imposed by the Grimaldi family. Influenced by the Risorgimento (Italian unification movement), these towns declared their independence in 1848 as the Free Cities of Menton and Roquebrune, hoping for annexation by Sardinia. This significantly weakened the principality.

In 1860, following the Second Italian War of Independence, Sardinia ceded the County of Nice (including Menton and Roquebrune) and Savoy to France under the Treaty of Turin. This geopolitical shift led to the Franco-Monégasque Treaty of 1861. Under this treaty, Prince Charles III formally renounced Monaco's claims over Menton and Roquebrune in exchange for 4.10 M FRF (French francs) and, crucially, full recognition of Monaco's sovereignty by France. This treaty effectively re-established Monaco as an independent state, albeit much smaller in size, under French protection. As a consequence of these changes, Italian, which had been an official language, was gradually replaced by French.

To address the severe economic hardship caused by the loss of Menton and Roquebrune, Charles III, with the entrepreneurial vision of his mother Princess Caroline, decided to develop Monaco into a resort destination centered around gambling. In 1863, the Société des Bains de Mer (SBM) was founded, and François Blanc, who had successfully operated a casino in Bad Homburg, was brought in to manage a new casino. The area, previously known as Les Spelugues, was renamed Monte Carlo (Mount Charles) in honor of the Prince. The Monte Carlo Casino opened in 1863, and its success was greatly enhanced by the arrival of the railway in 1868, connecting Monaco to Paris and other European cities.

The casino's immense profitability allowed Prince Charles III to abolish all direct taxation for Monégasque citizens in 1869. This policy transformed Monaco into a favored residence for the wealthy European elite and a symbol of luxury and leisure, securing its economic future and shaping its unique social fabric.

2.6. 20th Century

The 20th century brought significant political and social changes to Monaco. Until the Monégasque Revolution of 1910, the Princes of Monaco were absolute monarchs. Popular discontent led Prince Albert I to grant the Constitution of 1911, which established a National Council (parliament) and nominally ended absolute rule, though the Prince retained considerable power. Albert I, a keen oceanographer, also founded the renowned Oceanographic Museum in 1910.

During World War I, Prince Albert I maintained Monaco's neutrality, although his son, the future Louis II, served with distinction in the French Army. In July 1918, a new Franco-Monégasque Treaty was signed, reaffirming French protection and aligning Monégasque international policy with French interests. This treaty also addressed a potential succession crisis by allowing for the adoption of an heir, leading to the legitimization of Louis II's illegitimate daughter, Charlotte, as heir presumptive.

Prince Louis II ascended to the throne in 1922. During World War II, Monaco initially attempted neutrality but was occupied by Italy in November 1942. Following Italy's armistice with the Allies in September 1943, Germany occupied Monaco. During the German occupation, the small Jewish population of Monaco, along with Jewish refugees, faced persecution. Ninety individuals, including René Blum, founder of the Ballet de l'Opéra, were arrested and deported to concentration camps; only nine survived. This dark period represents a significant stain on Monaco's history, for which apologies were later issued. Resistance members René Borghini, Joseph-Henri Lajoux, and Esther Poggio were executed by the Germans in August 1944. Monaco was liberated by Allied forces shortly thereafter.

In 1949, Prince Rainier III succeeded his grandfather Louis II. His long reign, lasting until 2005, was transformative. His 1956 marriage to American actress Grace Kelly brought international fame and glamour to Monaco, significantly boosting its tourism and image. Princess Grace became deeply involved in charitable and cultural activities until her tragic death in a car accident in 1982.

Prince Rainier III oversaw significant constitutional and social reforms. The Constitution of 1962 further democratized the political system, granting more power to the National Council, abolishing capital punishment, guaranteeing women's suffrage (achieved in 1962, allowing women to vote and stand for election), and establishing a Supreme Court to protect fundamental liberties. This was a crucial step towards aligning Monaco with modern democratic values. However, in 1962-1963, Monaco faced a crisis with France under President Charles de Gaulle, who objected to Monaco's status as a tax haven for French citizens. A blockade by France led to a new fiscal convention, whereby French citizens residing in Monaco (except those resident for more than five years before October 1962) became subject to French income tax.

Monaco also began to play a more active role in international affairs during Rainier III's reign. In 1993, the Principality of Monaco became a member of the United Nations with full voting rights, a landmark achievement affirming its sovereignty on the global stage.

2.7. 21st Century

The 21st century in Monaco commenced under the leadership of Prince Rainier III, who, due to declining health, relinquished his duties to his only son and heir, Albert, on March 31, 2005. Prince Rainier III passed away six days later, on April 6, 2005, after a reign of 56 years. Prince Albert II formally assumed the title of Sovereign Prince of Monaco, with his accession ceremony held on July 12, 2005, followed by an investiture ceremony on November 18, 2005.

A significant development in Franco-Monégasque relations occurred in 2002 with a new treaty that revised earlier agreements. This treaty stipulated that if the Grimaldi dynasty were to end without a direct heir, Monaco would remain an independent nation rather than reverting to France, as had been a possibility under the 1918 treaty. However, France continues to be responsible for Monaco's military defense.

Prince Albert II has placed a strong emphasis on environmental protection and sustainable development, championing initiatives related to ocean conservation, renewable energy, and combating climate change both domestically and internationally through his Prince Albert II of Monaco Foundation. This focus reflects a modern approach to governance, aligning with global concerns for sustainability.

On August 27, 2015, Prince Albert II formally apologized for Monaco's role during World War II in facilitating the deportation of 90 Jews and resistance fighters to Nazi concentration camps, of whom only nine survived. At a ceremony unveiling a monument to the victims at the Monaco cemetery, he stated, "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." This act of acknowledging historical wrongs was a significant step towards social justice and reconciliation.

Monaco has continued its efforts in land reclamation to address its limited territory. In 2015, a new land reclamation project, Anse du Portier (also known as Mareterra), was approved. This six-hectare eco-district, intended to provide luxury housing, public spaces, a park, and a small marina, was designed with significant environmental considerations and was nearing completion with areas opening in late 2024. This followed a previous, larger expansion plan in 2008 that had been called off due to economic conditions and environmental concerns.

In February 2020, Monaco reported its first case of COVID-19. On September 3, 2020, Monaco launched its first satellite, OSM-1 CICERO, built by Orbital Solutions Monaco, marking its entry into space activities. Monaco continues to evolve its economy, focusing on finance, tourism, and high-value, non-polluting industries, while navigating its unique relationship with France and the European Union, and asserting its role as an active, albeit small, member of the international community.

3.1. Government Structure

The Principality of Monaco operates as a constitutional monarchy. The Prince of Monaco (currently Albert II) is the hereditary head of state and retains significant executive power. He can initiate legislation, ratify treaties, and has the power to dissolve the National Council.

The executive branch is headed by the Minister of State, who acts as the head of government. Traditionally a French citizen, a constitutional amendment in 2002 allows for a Monégasque citizen to hold this post, though the Prince still consults with the French government before making the appointment. The Minister of State presides over the Council of Government, which consists of five Government Councillors (Ministers) responsible for various departments: Interior; Finance and Economy; Social Affairs and Health; Equipment, Environment and Urban Planning; and External Relations and Cooperation. The Council of Government is responsible to the Prince.

The legislative branch is the National Council (Conseil National), a unicameral parliament composed of 24 members. Members are elected for five-year terms through universal suffrage by Monégasque citizens aged 18 and over. Sixteen members are elected via a majority electoral system (list voting with panachage), and eight by proportional representation. The National Council debates and votes on laws proposed by the Prince's government, and also approves the state budget. While the Prince can dissolve the National Council, this power is exercised with certain constitutional limitations. The development of the National Council's role reflects an evolution towards greater democratic participation.

The judiciary is independent of the executive and legislative branches. Judges are appointed by the Prince. The judicial system is based on French civil law. Key judicial positions, particularly senior magistrates, are often detached French magistrates, a practice reflecting the close ties with France. The highest court for judicial matters is the Court of Revision (Cour de Révision), and for administrative matters, it is the Supreme Court (Tribunal Suprême), which also rules on constitutional issues and guarantees fundamental liberties.

The Municipality of Monaco (Commune de Monaco), which covers the entire territory of the Principality, is responsible for local affairs. It is managed by the Communal Council (Conseil Communal), consisting of 15 members elected by residents for four-year terms. The Communal Council is presided over by the Mayor (currently Georges Marsan).

3.2. Administrative Divisions

Monaco is a unitary city-state and consists of a single municipality (commune). For administrative and urban planning purposes, the principality is divided into several sectors and wards (quartiers). The traditional four quarters of Monaco were:

• Monaco-Ville: The old walled city, located on a rocky promontory known as the Rock of Monaco, it is the seat of the Prince's Palace, the cathedral, and government buildings.
• Monte Carlo: The principal residential and resort area, famous for its casino, luxury hotels, and as a hub for entertainment and business. It is located to the east and northeast.
• La Condamine: The northwestern section, encompassing Port Hercules, the main harbor, and a commercial area.
• Fontvieille: A newer area to the west, created largely through land reclamation from the sea in the 1970s and 1980s, housing residential buildings, a stadium, light industry, and another port.

Over time, these traditional quarters have been further subdivided or reconfigured for statistical and planning needs. A sovereign ordinance in 1966 initially divided the principality into reserved sectors and wards. The most recent significant redistricting occurred in 2013, which defined two "reserved sectors" (secteurs réservés) and seven "ordered wards" (quartiers ordonnancés). The reserved sectors are areas where the existing character is intended to be preserved.

As of the 2013 changes, the administrative divisions are:

• Reserved Sectors:
  • Monaco-Ville
  • Ravin de Sainte-Dévote (a small, historically significant valley area)
• Wards (Quartiers ordonnancés):
  • La Condamine
  • Fontvieille
  • Larvotto (the main beach area, previously part of Monte Carlo)
  • Jardin Exotique (Exotic Garden area, incorporating parts of former La Colle and Les Révoires wards)
  • Moneghetti (residential area, upper part of La Condamine)
  • Monte Carlo (remains a central and populous ward)
  • La Rousse (formerly La Rousse/Saint Roman, a northeastern residential area)

  A new district, Le Portier (also known as Anse du Portier or Mareterra), built on reclaimed land adjacent to Larvotto, began opening in December 2024, effectively adding another distinct area to Monaco's urban landscape. For statistical purposes, these wards are further subdivided into 178 city blocks (îlots).
  
  The current ward structure is as follows:
  

  Ward		Area (11 ft2 (1 m2))	Area (%)
  Reserved Sectors
  Monaco-Ville	Secteur réservé	2082 K ft2 (193.40 K m2)	9.4%
  Ravin de Sainte-Dévote	Secteur réservé	253 K ft2 (23.48 K m2)	1.1%
  Wards
  La Condamine	Quartier ordonnancé	3184 K ft2 (295.85 K m2)	14.2%
  Fontvieille	Quartier ordonnancé	3493 K ft2 (324.47 K m2)	15.8%
  Larvotto	Quartier ordonnancé	2347 K ft2 (218.01 K m2)	10.4%
  Jardin Exotique	Quartier ordonnancé	2528 K ft2 (234.87 K m2)	11.3%
  Moneghetti	Quartier ordonnancé	1240 K ft2 (115.20 K m2)	5.5%
  Monte-Carlo	Quartier ordonnancé	4701 K ft2 (436.76 K m2)	20.9%
  La Rousse	Quartier ordonnancé	1904 K ft2 (176.89 K m2)	8.5%
  Le Portier	Quartier ordonnancé	646 K ft2 (60.00 K m2)	2.9%
  Total Area		22 M ft2 (2.08 M m2) (0.8 mile2 (2.08 km2))	100%

3.3. Security and Defence

The overall defense of the Principality of Monaco is primarily the responsibility of France, as stipulated by various treaties between the two nations. Monaco does not have its own navy or air force. However, it maintains significant internal security forces.

Monaco has one of the largest police forces per capita and per area in the world. The Public Security Department (Direction de la Sûreté Publique) is the national police force, responsible for maintaining law and order, criminal investigations, and general policing duties. It comprises approximately 515 officers for a population of around 38,000. The police force includes specialized units, such as a maritime police unit that operates patrol and surveillance boats in conjunction with Monaco's military units. The command of Monaco's police force often includes French officers on detachment.

Monaco also maintains a small military force with two main components:
1. The Compagnie des Carabiniers du Prince (Prince's Company of Carabiniers): This unit serves as the personal bodyguard for the Sovereign Prince and provides security for the Prince's Palace in Monaco-Ville. Established by Prince Honoré IV in 1817, the company consists of around 116 officers and men. While non-commissioned officers and soldiers are typically local, the officers have often served in the French Army. In addition to their guard duties, the Carabiniers also patrol the principality's beaches and coastal waters and perform ceremonial functions.
2. The Corps des Sapeurs-Pompiers de Monaco (Monaco Fire and Emergency Service): This is a militarized fire and civil defense corps. While primarily a firefighting and emergency response unit, it is considered part of Monaco's public forces and contributes to national security and civil protection.

These internal forces ensure Monaco's domestic security, while broader defense against external threats remains under the purview of France.

4.1. Topography and Location

Monaco is situated on the French Riviera, a coastal region of the Mediterranean Sea in Western Europe. It is a semi-enclave, bordered by France on its northern, eastern, and western sides, specifically by the French department of Alpes-Maritimes. To its south lies the Mediterranean Sea. The principality is located approximately 9.9 mile ^{(16 km)} west of the Italian border and about 8.1 mile ^{(13 km)} northeast of the French city of Nice.

With a total area of only 0.8 mile^{2 (2.08 km2)}, Monaco is the second-smallest independent state in the world, larger only than Vatican City. Its small size and population of nearly 39,000 make it the most densely populated sovereign state. Monaco has a land border with France measuring 3.4 mile ^{(5.47 km)} and a coastline along the Mediterranean that is approximately 2.4 mile ^{(3.83 km)} long, the world's shortest national coastline. The width of the principality varies, ranging from about 5.6 K ft ^{(1.70 K m)} at its widest point to 1145 ft ^{(349 m)} at its narrowest.

The topography of Monaco is generally hilly and rugged, as it is built on the foothills of the Alps that descend to the Mediterranean. The terrain is characterized by steep slopes and rocky outcrops. The highest point in Monaco is located on the upper slopes of Mont Agel, at an access point to the Patio Palace residential building on the Chemin des Révoires (within the Les Révoires ward), at an elevation of 539 ft ^{(164.4 m)} above sea level. The lowest point is the Mediterranean Sea, at sea level.

Key geographical features include the Rock of Monaco (Le Rocher de Monaco^French), a prominent monolith jutting into the sea, which is home to the old city of Monaco-Ville and the Prince's Palace. The principality has two main ports: Port Hercules, the larger and older port located in La Condamine, and Port Fontvieille, situated in the reclaimed district of Fontvieille. Due to its almost entirely urbanized landscape, Monaco has very little open green space, though several public parks and gardens exist. There are no significant natural rivers; the longest flowing water body is the Saint-Jean brook, approximately 0.1 mile ^{(0.19 km)} in length. The largest lake, Fontvieille Lake, is an artificial creation with an area of about 1.2 acre ^{(0.5 ha)}.

4.2. Climate

Monaco has a hot-summer Mediterranean climate (Köppen climate classification: Csa), characterized by warm, dry summers and mild, wet winters, with strong maritime influences from the Mediterranean Sea. The climate also shares some characteristics with a humid subtropical climate (Cfa).

Summers are typically balmy and dry, with average high temperatures in July and August around 78.8 °F ^{(26 °C)}. Afternoon temperatures rarely exceed 86 °F ^{(30 °C)} due to the moderating effect of sea breezes. Nights during the summer are very mild, with temperatures often remaining above 68 °F ^{(20 °C)}, partly due to the warm sea temperatures. While summers are predominantly dry, occasional cool and rainy periods can occur.

Winters are very mild for its latitude, comparable to locations much further south in the Mediterranean Basin. Average high temperatures in January and February are around 55.4 °F ^{(13 °C)}, with lows around 44.6 °F ^{(7 °C)}. Frosts and snowfalls are extremely rare, generally occurring only once or twice every ten years. One such instance of snowfall occurred on February 27, 2018, affecting both Monaco and Monte Carlo.

Rainfall is most common in the autumn and winter months, with October and November typically being the wettest. The principality enjoys a generous amount of sunshine, averaging around 2,500 to 2,700 hours per year. This pleasant climate is a significant factor in Monaco's appeal as a tourist destination and a place of residence.

The average annual high temperature is 66.56 °F ^{(19.2 °C)}, and the average annual low temperature is 56.48 °F ^{(13.6 °C)}. The overall yearly mean temperature is 61.519999999999996 °F ^{(16.4 °C)}.
January and February are the coldest months, with average high temperatures around 55.4 °F ^{(13 °C)} and average lows around 45.32 °F ^{(7.4 °C)}. The record low for January is 26.42 °F ^{(-3.1 °C)} and for February is 22.64 °F ^{(-5.2 °C)}.
July and August are the warmest months. July's average high is 79.88 °F ^{(26.6 °C)} and average low is 69.8 °F ^{(21 °C)}. August's average high is 80.42 °F ^{(26.9 °C)} and average low is 70.52 °F ^{(21.4 °C)}. The record high for August is 94.1 °F ^{(34.5 °C)}.
Annual rainfall averages 29 in ^{(743.6 mm)}. October and November are the wettest months, with 5.1 in ^{(128.7 mm)} and 4.1 in ^{(103.2 mm)} of rain respectively. July is the driest month with only 0.5 in ^{(13.7 mm)}. There are an average of 62.4 precipitation days per year (>= 0.0 in ^{(1 mm)}).
Monaco receives approximately 2,574.7 hours of sunshine annually. July is the sunniest month with an average of 329.3 hours, while December is the least sunny with 136.5 hours.

The average annual sea temperature is 64.22 °F ^{(17.9 °C)}. Monthly average sea temperatures are as follows:

4.3. Land Reclamation

Due to its extremely limited land area, Monaco has a long history of land reclamation projects to expand its territory by building into the Mediterranean Sea. These projects have increased the country's total area by approximately 20% over its original size. Land reclamation is driven by the high demand for residential, commercial, and public space in the densely populated principality.

One of the earliest significant reclamation projects was the creation of the Fontvieille district in the 1970s and early 1980s during the reign of Prince Rainier III. This project added about 54 acre ^{(22 ha)} of land and now hosts a port, residential areas, the Stade Louis II stadium, and light industrial zones. Other projects involved the expansion of Port Hercules.

More recently, under Prince Albert II, land reclamation has continued. A major project is Anse du Portier (also known as Mareterra), located offshore from the Larvotto district. This ambitious eco-district, approved in 2015 and with phases opening from late 2024, adds approximately 15 acre ^{(6 ha)} of new land. It is designed to include luxury housing, public parks, shops, offices, and a small marina, with a strong emphasis on sustainable development and environmental protection. This includes measures to preserve marine biodiversity, manage water resources, and utilize renewable energy. The development of Anse du Portier followed an earlier, larger expansion plan in 2008 that was ultimately shelved due to economic conditions and initial environmental impact assessments.

These land reclamation efforts are crucial for Monaco's continued development, allowing it to accommodate a growing population and diverse economic activities. However, they also present environmental challenges, such as impacts on marine ecosystems and coastal hydrodynamics. The Monégasque government and project developers state a commitment to mitigating these impacts through advanced engineering techniques and ecological compensation measures, reflecting an awareness of the need to balance development with environmental stewardship, a key aspect of sustainable development often championed by Prince Albert II.

5.1. Major Industries

Monaco's economy is primarily driven by a few key sectors that leverage its unique geographical location, reputation for luxury, and favorable tax environment. These industries have contributed to Monaco becoming one of the wealthiest nations per capita in the world.

1. Tourism and Hospitality: This is a cornerstone of Monaco's economy. The principality attracts affluent tourists with its luxurious hotels, Michelin-starred restaurants, high-end shopping, pleasant climate, and prestigious events like the Monaco Grand Prix and the Monaco Yacht Show. The Monte Carlo Casino and related entertainment venues are also major draws. This sector has a significant economic impact but also raises questions about sustainability and equitable benefit distribution.

2. Gambling Industry: While its direct contribution to state revenue has decreased proportionally over time, the casino industry, centered around the iconic Monte Carlo Casino, remains a vital part of Monaco's identity and tourism appeal. It supports numerous jobs and ancillary businesses. (See Gambling Industry section for more details).

3. Banking and Financial Services: Monaco is a significant international financial centre, holding substantial assets. Banks specialize in private banking, asset management, and wealth management for a global clientele. Its low taxation for individuals has attracted significant foreign capital. However, this has also led to concerns about financial transparency and money laundering, prompting Monaco to enhance its regulatory framework. (See Tax System and Finance section for more details).

4. Real Estate: Due to extreme land scarcity and high demand from wealthy individuals, Monaco has one of the most expensive real estate markets in the world. Construction and real estate development are major economic activities, often involving sophisticated land reclamation projects. The social impact includes high living costs, which can affect less affluent residents and workers.

5. Small, High-Value-Added, Non-Polluting Industries: To diversify its economy and promote sustainable development, Monaco has encouraged the growth of light industries that are non-polluting and have high value. These include cosmetics, pharmaceuticals, precision engineering, and some electronics. The state aims to foster innovation in these sectors.

6. Retail and Luxury Goods: High-end retail, including fashion, jewelry, and art, caters to wealthy residents and tourists, contributing significantly to the local economy.

The state retains monopolies in certain sectors, such as tobacco and postal services. Monaco Telecom, the national telecommunications provider, was formerly state-owned but is now partially privatized, though it still operates as a monopoly. The government actively promotes economic diversification to reduce reliance on any single sector and to foster long-term economic stability and sustainability.

5.1.1. Gambling Industry

The gambling industry has been a historically pivotal component of Monaco's economy and international image, centered around the world-renowned Monte Carlo Casino. Its development in the mid-19th century was a strategic move to rescue the principality from financial ruin after the loss of Menton and Roquebrune.

The plan for a casino was initiated during the reign of Prince Florestan I in 1846, but it was under his successor, Prince Charles III, that the project materialized. The first casino opened in 1856 but struggled initially. The concession was eventually sold to François Blanc, a French casino magnate who had successfully run a casino in Bad Homburg. Blanc, along with his wife Marie, transformed the casino's fortunes. The area around the casino was developed and renamed Monte Carlo (Mount Charles) in honor of Prince Charles III in 1866.

The opening of the new Grand Casino de Monte Carlo in 1863, designed by Charles Garnier (architect of the Paris Opera), and the arrival of the railway connection to Paris in 1868, dramatically increased tourist traffic. The casino's immense success generated substantial revenue, allowing the principality to abolish direct taxation for its Monégasque citizens in 1869. This policy attracted wealthy residents from across Europe, further bolstering Monaco's economy and shaping its glamorous reputation.

Today, the Société des Bains de Mer de Monaco (SBM), a publicly-traded company in which the Monégasque state is a major shareholder, owns and operates the Monte Carlo Casino, as well as other casinos like Le Casino Café de Paris, the Sun Casino, and the Monte Carlo Bay Casino. While the direct contribution of gambling to Monaco's GDP is now smaller compared to other sectors like finance and tourism overall, it remains a significant employer and a key element of Monaco's brand.

The regulatory framework for gambling in Monaco is well-established. Notably, Monégasque citizens are prohibited from gambling in the casinos, a measure originally intended to protect the local populace from the potential negative social impacts of gambling. The industry is subject to government oversight to ensure fair play and security. In recent years, as with other financial sectors in Monaco, there has been increased attention on ensuring that casino operations comply with international anti-money laundering regulations, reflecting a broader concern for social responsibility and ethical business practices.

5.2. Tax System and Finance

Monaco is widely known for its distinctive tax policies, which have made it an attractive location for wealthy individuals and businesses, often referred to as a tax haven. The cornerstone of its system is the absence of personal income tax for its residents, with a notable exception: French citizens who became residents after 1962 (and could not prove five years of prior residency) are still subject to French income tax under a bilateral treaty. This exemption from personal income tax has attracted a significant population of high-net-worth individuals from around the world.

While individuals enjoy no income tax, businesses are subject to taxation. A corporation tax (Impôt sur les Bénéfices) is levied at a standard rate (currently 25% as of 2022, aligning with international trends, previously 33.33%) on profits from industrial and commercial activities, unless they can demonstrate that at least 75% of their turnover is generated within Monaco. Companies whose primary activity is deriving income from patents and literary or artistic property rights are also subject to this tax, regardless of where the income is generated.

Monaco is part of the EU VAT area through its customs union with France, and thus applies VAT (Taxe sur la Valeur Ajoutée, TVA^French) at French rates. Social insurance contributions are also significant, payable by both employers and employees, contributing to Monaco's comprehensive social security system.

The principality has become a major financial centre, holding over €100 billion in assets under management. Its banks specialize in private banking, wealth management, and asset management services for an international clientele. The financial sector is a key contributor to Monaco's GDP.

However, its status as a financial hub with low personal taxation has led to international scrutiny regarding financial transparency, tax evasion by foreign nationals, and money laundering. Organizations like the Organisation for Economic Co-operation and Development (OECD) and the Financial Action Task Force (FATF) have periodically reviewed Monaco's practices. In response to international pressure and to uphold its reputation, Monaco has made significant efforts to comply with international financial regulations. It has signed numerous tax information exchange agreements (TIEAs) and committed to implementing standards such as the Common Reporting Standard (CRS) for automatic exchange of financial account information. Despite these efforts, in June 2024, the FATF placed Monaco on its "grey list," indicating that it is subject to increased monitoring to combat money laundering and terrorist financing, highlighting ongoing challenges in this area that touch upon issues of social justice and international regulatory compliance.

5.3. Currency

The official currency of Monaco is the euro (€), which it adopted on January 1, 1999, for non-cash transactions and January 1, 2002, for all payments, in line with many Eurozone member states.

Although Monaco is not a member of the European Union, it has a long-standing monetary agreement with France, which was updated to accommodate the euro. Through this agreement, Monaco has the right to use the euro as its official currency and to mint its own euro coins, which feature distinctive Monégasque national designs on the obverse side. These coins are produced by the Monnaie de Paris (Paris Mint) and are legal tender throughout the Eurozone. Due to their limited mintage, Monégasque euro coins are often sought after by collectors.

Before the adoption of the euro, Monaco's official currency was the Monégasque franc (MCF). The Monégasque franc was pegged at par to the French franc (FRF). Monaco issued its own coins in francs starting in 1837, which circulated alongside French currency. Banknotes of the French franc were used in Monaco. The transition to the euro was part of Monaco's broader integration with the European economic sphere, facilitated by its close ties with France.

6.1. Population Statistics

As of recent estimates (e.g., 2023 UN estimate of 36,297; Monaco Statistics 2015 figure of 38,400), Monaco has a total population of under 40,000 inhabitants. Despite its small population size, its tiny land area of just over 0.8 mile^{2 (2 km2)} results in Monaco being the most densely populated sovereign state in the world.

A distinctive feature of Monaco's population is that native Monégasques (citizens of Monaco) are a minority in their own country. According to 2016 census data, the population of Monaco by nationality was primarily French (28.2%), followed by Monégasque (21.5%), Italian (18.6%), and British (7.5%). Other significant groups included Belgians (2.7%), Swiss (2.7%), and Germans (2.5%). Residents from other EU countries (excluding those already listed) made up 4.9% of the population, while those from other non-EU countries constituted 11.4%. Over 30% of residents are reported to be millionaires.

Monaco boasts one of the world's highest life expectancies, often cited as close to 90 years. The age structure tends to be older compared to global averages, reflecting its status as an attractive place for retirees and affluent individuals. The small number of births and deaths annually means that migration plays a significant role in population dynamics. Obtaining Monégasque citizenship is a lengthy and restrictive process, contributing to the small proportion of native citizens.

6.2. Languages

The linguistic landscape of Monaco is multilingual, reflecting its diverse population and historical ties.

The official language of Monaco is French. It is the language of government, law, education, and public life. Most residents speak French fluently, either as a native language or as a primary language of communication.

Monégasque (Mùnegu^lij) is the traditional national language. It is a dialect of the Ligurian (a Romance language) and reflects the historical Genoese origins of the Grimaldi dynasty and early settlers. While Monégasque was once widely spoken, its use declined significantly during the 20th century. However, there have been efforts to revive and preserve the language. It is taught in schools, and some street signs in Monaco-Ville (the old town) are bilingual, displaying names in both French and Monégasque. While not an official language, it holds significant cultural importance.

Italian is also widely spoken and understood in Monaco, particularly due to the large community of Italian residents and the principality's geographical proximity and historical ties to Italy. Until 1860, Italian was an official language of Monaco.

English is commonly used, especially in business, tourism, and among the international expatriate community. Many Monégasques and residents in service industries speak English.

Other languages are spoken by smaller resident communities, contributing to the cosmopolitan character of the principality.

6.3. Religion

The predominant religion in Monaco is Roman Catholicism, which is also the state religion. However, the Constitution of Monaco guarantees freedom of religion.

Roman Catholicism is the official state religion as per Article 9 of the Constitution. The vast majority of Monégasques and a significant portion of the resident population are Roman Catholic. The Archdiocese of Monaco, established as an independent archdiocese in 1981 (previously a diocese since 1887), is immediately subject to the Holy See and is not part of any French ecclesiastical province. The Cathedral of Our Lady Immaculate (also known as Saint Nicholas Cathedral) in Monaco-Ville is the seat of the Archbishop. Saint Devota is the patron saint of Monaco. There are five Roman Catholic parish churches in the principality.

Other faiths are also present and can practice freely in Monaco, reflecting a degree of religious tolerance in line with democratic values:

• 'Protestantism': There are several Protestant communities. St. Paul's Church is an Anglican church located in Monte Carlo, serving both resident and visiting Anglicans. There is also a Reformed Church (Église Réformée de Monaco), affiliated with the United Protestant Church of France, which hosts various other Christian denominations as well. Evangelical groups also meet in the principality.
• 'Orthodox Christianity': A Greek Orthodox parish and a Russian Orthodox community serve adherents of Eastern Orthodoxy.
• 'Judaism': Monaco has a small but active Jewish community. The Association Culturelle Israélite de Monaco (ACIM) maintains a synagogue, a community Hebrew school, and a kosher food shop in Monte Carlo. The community consists of both Sephardic and Ashkenazi Jews.
• 'Islam': A small Muslim population, primarily composed of residents from various countries, exists in Monaco. There is no official mosque, but facilities for prayer may be arranged by community members.
• 'Other Religions and Beliefs': Small numbers of adherents to other religions, such as Hinduism, and individuals who are unaffiliated with any religion, also reside in Monaco.

The state provides financial support to the Catholic Church and may provide support to other religious groups upon request if they meet certain criteria. Religious instruction, primarily Catholic, is available in public schools but is not compulsory.

7.1. Primary and Secondary Education

Education in Monaco is compulsory from age 6 to 16. The public school system is largely based on the French model and is free for Monégasque children and residents who meet certain criteria.

• 'Nursery and Primary Schools' (École Maternelle et École Élémentaire): Monaco has seven state-run nursery and primary schools. Nursery school typically caters to children aged 3 to 5, followed by primary school for ages 6 to 10.
• 'Secondary Schools:
  • Collège: There is one public lower secondary school, 'Collège Charles III', for students aged 11 to 14. It follows the French curriculum leading to the Diplôme National du Brevet.
  • Lycée (High School): Monaco has two main public lycées:
    • 'Lycée Albert I' provides general and technological education for students aged 15 to 18, preparing them for the French Baccalauréat (general, technological, or international option).
    • 'Lycée Technique et Hôtelier de Monte-Carlo' offers vocational and hotel management training, leading to vocational baccalauréats and other professional qualifications.
• 'Private Schools': There are also grant-aided denominational private schools, such as Institution François d'Assise Nicolas Barré and École des Sœurs Dominicaines, which follow the Monégasque curriculum. The International School of Monaco (ISM), founded in 1994, offers an international curriculum, primarily in English, including the International Baccalaureate (IB) Diploma Programme.

The language of instruction in public schools is French, with Monégasque language and culture also taught. Emphasis is placed on multilingualism, with English and Italian commonly taught as foreign languages.

7.2. Higher Education

Opportunities for higher education within Monaco itself are specialized. The primary institution is the 'International University of Monaco' (IUM). IUM is an English-language university offering undergraduate (Bachelor), graduate (Master, including MBA), and doctoral programs, with a strong focus on business administration, finance, luxury management, marketing, and international management. It attracts an international student body.

For other fields of study, Monégasque students typically attend universities in France, particularly in nearby Nice or Paris, or other countries, often with government scholarships. Monaco also hosts a nursing school (Institut de Formation en Soins Infirmiers) and some specialized training programs.

8.1. Architecture

Monaco's architecture is a striking mix of historic and modern styles, reflecting its evolution from a fortified medieval town to a glamorous modern city-state. The most iconic architectural style is the Belle Époque, which flourished in the late 19th and early 20th centuries. This is best exemplified in Monte Carlo with landmarks such as the Monte Carlo Casino and the Salle Garnier (opera house), both designed by Charles Garnier and Jules Dutrou. These buildings feature ornate decorative elements like turrets, balconies, pinnacles, polychrome ceramics, and caryatids, creating an atmosphere of opulence and fantasy.

Older parts of Monaco, particularly Monaco-Ville (the Rock), preserve medieval and Renaissance-era structures, including the Prince's Palace (with origins in the 13th century but extensively modified over centuries) and narrow, winding streets.

In contrast, modern Monaco is characterized by high-rise apartment buildings, luxury hotels, and contemporary public works, often necessitated by its limited land area and high population density. Land reclamation projects like Fontvieille and Le Portier showcase modern engineering and urban planning. During the 1970s, rapid development led to the construction of many skyscrapers. While Prince Rainier III later imposed stricter controls on high-rise development, his successor, Prince Albert II, has overseen a new wave of modern construction, including projects like the Tour Odéon.

The preservation of architectural heritage in such a densely developed and constantly evolving urban landscape presents ongoing challenges. There is a tension between modernization, the demand for luxury real estate, and the desire to maintain Monaco's historic character and aesthetic appeal.

8.2. Cuisine

Monégasque cuisine is fundamentally Mediterranean, heavily influenced by the culinary traditions of Provence in neighboring France and Liguria in nearby Italy. Fresh, seasonal ingredients, olive oil, seafood, and herbs are staples.

Traditional Monégasque dishes include:

• Barbagiuan: A small fritter or pastry typically stuffed with Swiss chard, ricotta cheese, onions, and sometimes rice or leeks. It is considered a national dish.
• Socca: A thin, unleavened pancake or crêpe made from chickpea flour, often seasoned with black pepper. It is a popular street food also found in Nice.
• Stocafi (Stockfish): A hearty stew made from dried cod rehydrated and cooked with tomatoes, onions, garlic, olives, and herbs.
• Fougasse Monégasque: A type of flatbread, often flavored with orange blossom water and decorated with nuts and anise seeds, traditionally served at festive occasions.

Seafood plays a prominent role, given Monaco's coastal location. Fresh fish, shellfish, and dishes like bouillabaisse (though more associated with Marseille) are common. Vegetables from the region, such as tomatoes, zucchini, eggplants, and peppers, feature extensively.

Due to its cosmopolitan population and status as a luxury destination, Monaco also boasts a high concentration of Michelin-starred restaurants offering refined French, Italian, and international cuisine. Notable establishments include Le Louis XV - Alain Ducasse at the Hôtel de Paris. The Café de Paris, adjacent to the casino, is another historic culinary landmark.

8.3. Music and Performing Arts

Monaco has a rich tradition in music and the performing arts, with several internationally renowned institutions.

• Opéra de Monte-Carlo: Housed in the Salle Garnier, an ornate theatre within the Monte Carlo Casino complex, the Opéra de Monte-Carlo was inaugurated in 1879. It has a distinguished history, having hosted premieres of works by famous composers like Jules Massenet, Giacomo Puccini, and Maurice Ravel. It continues to present a high-quality season of opera, ballet, and classical concerts.
• Monte-Carlo Philharmonic Orchestra (Orchestre Philharmonique de Monte-Carlo): Founded in 1856, this is Monaco's national orchestra. It performs a wide repertoire of classical music, gives regular concerts in the Auditorium Rainier III and other venues, and accompanies performances by the Opéra de Monte-Carlo and Les Ballets de Monte Carlo. It has attracted many famous conductors and soloists throughout its history.
• Les Ballets de Monte Carlo: This classical ballet company was established in 1985 by H.R.H. Princess Caroline of Hanover, in accordance with the wishes of her mother, Princess Grace, to revive the strong dance tradition in Monaco. This tradition dates back to the early 20th century with Sergei Diaghilev's Ballets Russes, which was based in Monte Carlo. Les Ballets de Monte Carlo performs both classical and contemporary works and tours internationally.
• Printemps des Arts de Monte-Carlo: This annual spring arts festival features a diverse program of classical music, contemporary music, dance, and visual arts.

Monaco also participated in the Eurovision Song Contest from 1959 to 1979 and again from 2004 to 2006, winning the contest in 1971 with the song "Un banc, un arbre, une rue" performed by Séverine.

8.4. Visual Arts and Museums

Monaco is home to several notable museums and venues for visual arts, reflecting its cultural heritage and contemporary artistic interests.

• Oceanographic Museum (Musée Océanographique): Founded in 1910 by Prince Albert I, a pioneer in oceanography, this world-renowned museum and aquarium is dedicated to marine science. It features extensive collections of marine fauna, specimens, and oceanographic instruments, as well as research facilities. The museum is dramatically situated on a cliff overlooking the Mediterranean Sea.
• New National Museum of Monaco (Nouveau Musée National de Monaco - NMNM): This museum is housed in two locations: Villa Paloma and Villa Sauber. It focuses on contemporary visual art, showcasing works by Monégasque and international artists, as well as exploring themes related to art, territory, and heritage.
• The Cars Collection of H.S.H. the Prince of Monaco (Collection de Voitures de S.A.S. le Prince de Monaco): This museum displays a remarkable collection of antique and classic cars owned by the Princes of Monaco, including racing cars, luxury vehicles, and historic automobiles.
• Museum of Prehistoric Anthropology (Musée d'Anthropologie Préhistorique): Founded by Prince Albert I in 1902, this museum presents archaeological finds from Monaco and the surrounding region, tracing human presence from prehistoric times.
• Museum of Stamps and Coins (Musée des Timbres et des Monnaies): This museum showcases the postal and numismatic history of Monaco, displaying rare stamps and coins issued by the principality.
• Naval Museum of Monaco (Musée Naval de Monaco): Features a collection of model ships and maritime artifacts.

Monaco also features numerous public art installations and sculptures throughout its urban landscape. Galleries and art dealers contribute to a vibrant commercial art scene.

8.5. Festivals and Events

Monaco hosts a wide array of internationally recognized festivals and events throughout the year, contributing to its cultural vibrancy and global appeal. Some of the major ones include:

• Monte-Carlo International Circus Festival (Festival International du Cirque de Monte-Carlo): Held annually in January/February, this is one of the world's most prestigious circus festivals, founded by Prince Rainier III in 1974. It brings together top circus performers from around the globe to compete for the coveted Golden Clown (Clown d'Or) award.
• Monaco Grand Prix: The Formula One motor race held annually on the Circuit de Monaco in late May or early June. It is one of the oldest and most prestigious races in the Formula One calendar.
• Monaco Yacht Show: An annual trade show held in Port Hercules in late September, showcasing luxury superyachts built by the world's leading shipyards. It is considered the premier event in the superyacht industry.
• Monte-Carlo Television Festival (Festival de Télévision de Monte-Carlo): Established in 1961 by Prince Rainier III, this festival, held in June, recognizes excellence in television programming from around the world with its Golden Nymph Awards.
• Printemps des Arts de Monte-Carlo: An annual spring festival (March-April) dedicated to music and the arts, featuring classical concerts, contemporary music, ballet, opera, and visual arts exhibitions.
• Monte-Carlo Sporting Summer Festival: A summer-long series of concerts and shows featuring major international music stars, held at the Salle des Étoiles.
• Rolex Monte-Carlo Masters: An annual professional men's tennis tournament held in April at the Monte Carlo Country Club (located in Roquebrune-Cap-Martin, France, but organized by Monaco). It is part of the ATP Tour Masters 1000 series.
• Monaco International Fireworks Competition (Concours International de Feux d'Artifice Pyromélodiques de Monaco): Held in July and August, this competition features spectacular fireworks displays choreographed to music by pyrotechnic companies from different countries.
• Rallye Automobile Monte Carlo: One of the oldest and most famous rally events, typically held in January as the opening round of the World Rally Championship.

These events, along with numerous others, draw significant international attention and visitors to Monaco, playing a key role in its tourism industry and cultural life.

8.6. Parks and Gardens

Despite its high urban density, Monaco offers several notable public parks and gardens that provide green spaces for residents and visitors, contributing to the quality of life and aesthetic appeal of the principality. These include:

• Exotic Garden of Monaco (Jardin Exotique de Monaco): Perched on a cliffside overlooking the principality, this garden, opened in 1933, features a vast collection of succulent plants and cacti from arid regions around the world. It also includes an Observatory Cave (Grotte de l'Observatoire) with prehistoric stalactites and stalagmites, and the Museum of Prehistoric Anthropology is located within its grounds. The garden offers panoramic views of Monaco and the Mediterranean.
• Japanese Garden: Located in the Larvotto district, this authentic Japanese garden was designed by landscape architect Yasuo Beppu at the request of Princess Grace and inaugurated in 1994. It covers 75 K ft^{2 (7.00 K m2)} and features traditional elements such as a pond with koi carp, islands, a teahouse, stone lanterns, bridges, and carefully selected plants. It provides a serene and meditative atmosphere.
• Princess Grace Rose Garden (Roseraie Princesse Grace): Situated in Fontvieille Park, this rose garden was created in 1984 by Prince Rainier III in memory of his wife, Princess Grace. It was expanded in 2014 and now covers 54 K ft^{2 (5.00 K m2)}, featuring over 300 varieties of roses and more than 8,000 rose bushes.
• St Martin Gardens (Jardins Saint-Martin): Located in Monaco-Ville on the southwestern face of the Rock of Monaco, these gardens offer picturesque pathways, Mediterranean vegetation, and stunning views of the sea and Port Fontvieille. They are among the oldest public gardens in Monaco.
• Casino Gardens and Terraces (Jardins et Terrasses du Casino): Surrounding the Monte Carlo Casino, these beautifully manicured gardens feature lawns, flowerbeds, fountains, and palm trees, providing an elegant setting for the iconic casino.
• Fontvieille Park (Parc de Fontvieille): A larger park area in the Fontvieille district, which includes the Princess Grace Rose Garden and other landscaped areas, offering recreational space.
• UNESCO Gardens (Jardins de l'UNESCO): Located near the Fontvieille commercial centre, these terraced gardens also contribute to the green spaces in the newer part of Monaco.

These parks and gardens are meticulously maintained and are important for biodiversity, recreation, and enhancing the urban environment, reflecting a commitment to creating livable spaces within a densely built-up area.

9.1. Motorsports

Monaco holds an iconic status in the world of motorsport, largely due to its challenging street circuits and historic events:

• Formula One Monaco Grand Prix: Held annually since 1929 (and part of the Formula One World Championship since its inception in 1950), the Monaco Grand Prix is one of the most famous, prestigious, and demanding automobile races in the world. The narrow, twisting Circuit de Monaco, laid out on the city streets of Monte Carlo and La Condamine, requires exceptional driving skill and precision. Its glamour and history make it a highlight of the F1 calendar.
• Monte Carlo Rally (Rallye Automobile Monte Carlo): Inaugurated in 1911 by Prince Albert I, this is one of the oldest and most respected rally events. It traditionally marks the opening of the World Rally Championship (WRC) season in January. While the ceremonial start and finish are often in Monaco, the competitive stages primarily take place in the challenging and varied conditions of the French Alps.
• Monaco ePrix: Since 2015, Monaco has hosted a round of the Formula E championship for electric-powered racing cars. Initially held biennially, alternating with the Historic Grand Prix, it now often takes place annually. The race uses a modified, shorter version of the F1 circuit, though in recent years, it has utilized close to the full Grand Prix layout.
• Historic Grand Prix of Monaco (Grand Prix de Monaco Historique): Held biennially, this event features historic Grand Prix cars from different eras racing on the Circuit de Monaco, attracting enthusiasts of classic motorsport.

The Automobile Club de Monaco (ACM), founded in 1890, is the organizing body for these major motorsport events. ROKiT Venturi Racing, a Formula E team, was based in Monaco. Many professional racing drivers choose to reside in Monaco.

9.2. Football

Association football is a popular sport in Monaco, primarily represented by:

• AS Monaco FC: Founded in 1924, AS Monaco is a professional football club that, despite Monaco's independent status, competes in the French football league system. The club plays in Ligue 1, the top tier of French football, and has a successful history, having won the Ligue 1 title eight times (most recently in the 2016-17 season) and the Coupe de France five times. They have also achieved success in European competitions, notably reaching the 2004 UEFA Champions League Final and the semi-finals on other occasions. Their home ground is the Stade Louis II in the Fontvieille district. Many famous players have played for AS Monaco, including Thierry Henry, Kylian Mbappé, George Weah, and Glenn Hoddle. The club plays an important role in Monaco's sporting identity and enjoys strong support.

• Monaco national football team: Monaco also has a national football team, but it is not a member of FIFA or UEFA. Therefore, it does not participate in FIFA World Cup or UEFA European Championship qualifiers. The team occasionally plays friendly matches against other non-FIFA national teams or club sides.

The Stade Louis II also historically hosted the UEFA Super Cup annually from 1998 to 2012.

9.3. Other Sports

Besides motorsports and football, Monaco is active in several other sports:

• Tennis: The Rolex Monte-Carlo Masters is a prestigious annual men's professional tennis tournament held in April. It is part of the ATP Masters Series. Although the tournament is played at the Monte Carlo Country Club, which is geographically located in Roquebrune-Cap-Martin, France, it is organized by and closely associated with Monaco. Monaco also has a Davis Cup team.
• Athletics: The Herculis meeting is an annual international athletics competition held at the Stade Louis II. It is part of the prestigious Diamond League series and attracts many world-class athletes. The headquarters of World Athletics (formerly IAAF) have been located in Monaco since 1993.
• Olympic Games: Monaco has participated in the Olympic Games regularly since 1920 (Summer) and 1984 (Winter). While no Monégasque athlete has won an Olympic medal in the Summer or Winter Olympics, Monaco did win a bronze medal in bobsleigh at the 2012 Youth Olympic Winter Games. Prince Albert II himself competed in bobsleigh in five Winter Olympics.
• Basketball: AS Monaco Basket competes in the LNB Pro A (the top French professional basketball league) and has achieved success, including winning the EuroCup in 2021 and subsequently competing in the EuroLeague. They also play their home games at the Salle Gaston Médecin within the Stade Louis II complex.
• Swimming: The Rainier III Nautical Stadium in Port Hercules, an Olympic-size heated saltwater pool, hosts swimming events and is open to the public. It is converted into an ice rink in winter.
• Sailing and Yachting: Given its maritime location, sailing and yachting are popular. The Yacht Club de Monaco, presided over by Prince Albert II, is a prominent institution organizing regattas and promoting maritime activities.
• Boxing: Monaco has occasionally hosted major professional boxing events.
• Judo, Fencing, and other martial arts are also practiced.

The Stade Louis II is a multi-purpose stadium that serves as a key venue for many of these sports.

10.1. Rail Transport

Monaco is served by a single railway station, the Monaco-Monte Carlo station (Gare de Monaco-Monte-Carlo). This station is part of the Marseille-Ventimiglia railway line and is operated by the French national railway company, SNCF. The station, largely built underground within the rock, was opened in 1999, replacing two former surface stations.

Regular TER (Transport Express Régional) services connect Monaco with Nice, Cannes, Menton, Ventimiglia (Italy), and other towns along the French Riviera. TGV high-speed trains also serve Monaco, providing direct links to Paris and other major French cities, thus connecting Monaco to the wider European rail network. The railway is a crucial mode of transport for the many commuters who work in Monaco but live in France or Italy.

10.2. Road and Public Transport

Monaco has an extensive network of roads, totaling approximately 48 mile ^{(77 km)}. Due to the principality's hilly terrain and dense development, many roads are narrow and winding, and tunnels are common. The road network connects seamlessly with that of France.

Public transport within Monaco is primarily provided by the Compagnie des Autobus de Monaco (CAM). CAM operates a comprehensive network of bus routes covering all districts of the principality, including tourist attractions, business centers, and residential areas. The bus service is modern and efficient.

A unique feature of Monaco's public transport system is its extensive network of public escalators and elevators (ascenseurs publics). There are over 70 of these, built into the hillsides, to help pedestrians navigate the steep changes in elevation between different parts of the city. This system significantly enhances pedestrian mobility.

Walking is also a major mode of transport, and Monaco has invested in pedestrian-friendly infrastructure, including new footbridges in areas like Fontvieille.

10.3. Maritime and Air Transport

Monaco has two main ports:

• Port Hercules: Located in La Condamine, this is Monaco's largest and oldest natural deep-water port. It caters to private yachts, including some of the world's largest superyachts, as well as cruise ships. It is the venue for the annual Monaco Yacht Show.
• Port Fontvieille: Situated in the reclaimed district of Fontvieille, this smaller port primarily serves pleasure craft and local boats.

Monaco does not have its own airport. The nearest major international airport is Nice Côte d'Azur Airport (NCE) in Nice, France, located approximately 14 mile ^{(22 km)} west of Monaco. This airport is easily accessible by road (car or bus) and also via helicopter.

Monaco Heliport (Héliport de Monaco), located in the Fontvieille district, provides regular helicopter shuttle services to Nice Côte d'Azur Airport, with a flight time of about 7 minutes. Helicopter services are also available to other destinations along the French Riviera and for private charters.

11.1. Relations with France

The relationship between Monaco and France is historically deep, multifaceted, and foundational to Monaco's existence as a sovereign state. It is governed by a series of treaties, the most significant of which include:

• The Franco-Monégasque Treaty of 1861, which recognized Monaco's sovereignty after it ceded Menton and Roquebrune to France.
• The Treaty of 1918, which, among other things, aligned Monaco's foreign policy with French interests and provided for French protection. It also stipulated that if the Grimaldi dynasty became extinct, Monaco would become an autonomous state under French protection (though later clauses suggested potential incorporation).
• The Treaty of 2002 (which came into force in 2005) updated these relations, reaffirming Monaco's sovereignty and independence. It importantly specified that Monaco would remain independent even if the Grimaldi dynasty were to end. It also gave Monaco more autonomy in conducting its foreign policy, removing the requirement for prior French approval for establishing diplomatic relations with other states.

France remains responsible for Monaco's defense, although Monaco maintains its own internal security forces. The two countries share a customs union, and French VAT and excise tax regulations apply in Monaco. French citizens residing in Monaco are, with some exceptions, subject to French income tax. The Minister of State of Monaco was traditionally a French national, though this is no longer a requirement. There is close cooperation in judicial, administrative, and economic matters. This relationship is often described as one of mutual dependence, where Monaco benefits from French security and integration into larger economic frameworks, while France maintains influence and benefits from Monaco's unique status. This relationship supports democratic values through shared legal and administrative norms.

11.2. Relations with the European Union

Monaco is not a member of the European Union (EU). However, it maintains a special and close relationship with the EU, largely through its ties with France.

• Customs Territory: Monaco is part of the EU customs territory via its customs union with France. This means that goods can move freely between Monaco and EU member states without customs duties.
• Euro: Monaco uses the euro as its official currency through a monetary agreement with the EU (via France). It has the right to mint its own euro coins.
• Schengen Area: Monaco is not formally part of the Schengen Area, but due to its open border with France (a Schengen member), it is considered a de facto participant. There are no border controls between Monaco and France. Schengen visas are valid for entry into Monaco, and Monégasque residence permits allow travel within the Schengen Area.
• Other EU Policies: Monaco applies certain EU laws and regulations, particularly in areas like VAT, excise duties, and some financial regulations, as a consequence of its agreements with France.

Monaco and the EU have been negotiating an Association Agreement to provide a more comprehensive framework for their relationship, potentially allowing Monaco greater access to the EU's internal market while respecting its specificities.

11.3. Other International Relations

Monaco is an active member of the international community and participates in numerous global and regional organizations:

• United Nations (UN): Monaco became a full member of the UN in 1993. It actively participates in UN activities, particularly those related to environmental protection, ocean conservation, sustainable development, human rights, and humanitarian aid. Prince Albert II is a prominent advocate for environmental issues on the global stage.
• Council of Europe: Monaco joined the Council of Europe in 2004, demonstrating its commitment to human rights, democracy, and the rule of law.
• Organisation internationale de la Francophonie (OIF): As a French-speaking nation, Monaco is an active member of the OIF, promoting French language and culture, as well as cooperation among Francophone countries.
• Other Organizations: Monaco is also a member of various other international bodies, including UNESCO, the World Health Organization (WHO), the International Atomic Energy Agency (IAEA) (hosting its Marine Environment Laboratories), the International Hydrographic Organization (IHO) (headquartered in Monaco), and Interpol.

Monaco maintains bilateral diplomatic relations with numerous countries around the world, with embassies and consulates in key capitals. Its foreign policy focuses on promoting peace, environmental sustainability, economic development, and cultural exchange. It often uses its platform to advocate for issues critical to small island developing states and coastal nations, particularly concerning ocean health, aligning with its focus on sustainable development.