Monaco, often referred to as the jewel of the Mediterranean, is a sovereign city-state, country, and microstate located on the French Riviera in Western Europe. Monaco is bordered by France on three sides and on one side by the Mediterranean. Its proximity to Italy, about 16 kilometers away, adds to its unique geopolitical positioning.
Ruled by the House of Grimaldi since 1297, Monaco's sovereignty was firmly established with the Franco-Monegasque Treaty of 1861, ensuring its independent status under the protective wing of its much larger neighbor, France. This uninterrupted rule by the Grimaldi family, except for a brief period under French Revolution control, is one of the longest in European history.
Despite being the second smallest country in the world, only Vatican City is smaller, Monaco boasts a highly dense population with around 38,100 residents from over 125 nationalities packed into less than one square mile of territory. French, Monegasque, Italian, and English echo through its streets, and its literacy rates are impressively high.
The U.S. and Monaco enjoy excellent relations, which both countries seek to maintain and strengthen. The two countries established full diplomatic relations in 2006, and share a strong commitment to international cooperation. Monaco has full customs integration with France, which collects and rebates Monegasque trade duties. It also participates in the European Union market system through its customs union with France. Monaco is not a tax haven and has signed a tax information exchange agreement with the U.S.
Monaco's economy is driven by tourism, banking, and its world-famous casino in Monte Carlo. The principality has successfully marketed itself as a luxury destination, attracting the wealthy with its tax-friendly policies, high-end services, and glamorous events like the Monaco Grand Prix and the Monte-Carlo Masters. Such economic activities fuel Monaco's prosperity and contribute to its status as a destination for luxury yachting and high-profile gatherings.
Monaco has taken significant strides in environmental conservation and sustainable urban development. The principality has increased its territory by 20% through land reclamation, all while maintaining a commitment to environmental protection. The political structure of Monaco is a constitutional monarchy, with Prince Albert II serving as the head of state with the prince playing a crucial role in shaping domestic and international policies. The government, led by the Minister of State, oversees the day-to-day administration.
The principality is a melting pot of cultures, with residents from over 125 nations living within its borders. This diversity is celebrated through various cultural festivals, culinary experiences, and the arts. Despite its small size, Monaco plays a significant role on the international stage, particularly in the realms of environmental advocacy, philanthropy, and sports. Prince Albert II's foundation is at the forefront of global environmental protection efforts, focusing on climate change, biodiversity, and water management.