For the most current version of this Note, see Background Notes A-Z.
Area: 1.95 sq. km. (0.8 sq. mi); about the size of New York City's Central Park.
City: Capital--Monaco, pop. 32,409 (July 2005 est.).
Climate: Mediterranean with mild, wet winters and hot, dry summers.
Nationality: Noun and adjective--Monegasque.
Population (July 2009 est.): 32,965.
Annual population growth rate (2009 est.): 0.394%.
Ethnic groups (2009): French 47%, Italian 16%, Monegasque 16%, other 21%.
Religions: Roman Catholic 90%, other 10%.
Languages: French (official), English, Italian, and Monegasque.
Education: Years compulsory--10, ages 6-16. Attendance--99%. Literacy--99%.
Health (2009 est.): Infant mortality--5 deaths/1,000 live births. Life expectancy--76.3 yrs. male; 84.09 yrs. female. Birth rate (2009 est.)--9.1 births/1,000 population. Death rate (2008 est.)--12.96 deaths/1,000 population.
Type: Constitutional monarchy.
Constitution: December 17, 1962 (amended in April 2002).
Branches: Executive--Prince Albert II (chief of state), Minister of State Jean-Paul Proust (head of government), Council of Government (cabinet under authority of the monarch). Legislative--unicameral National Council (24 members). Judicial--Court of First Instance, Court of Appeal, High Court of Appeal, Criminal Court, Supreme Court.
Subdivisions: Four quarters (quartiers)--Monaco-Ville, La Condamine, Monte-Carlo, Fontvieille.
Political parties: Union pour Monaco (UPM), Rassemblement et Enjeux (REM), Parti Monégasque (PM).
Suffrage: Universal adult at age 18.
GDP (2008): 4.492 billion euros (U.S. $6.086 billion).
Avg. annual growth rate (2008 est.): 0.41%.
GDP per capita: 60,595 euros (U.S. $82,107).
Work force (2008; 48,491): Private sector--44,736; public sector--3,959. Banking--2,793; hotels--7,352; retail--568; construction and public works--5,388; industry--3,351; transport--1,413; other--21,995.
Agricultural products: 0.48% of GDP.
Industry: Types--tourism, construction, chemicals, food products, plastics, precision instruments, cosmetics, ceramics.
Trade: Imports (2008)--18.6 million euros (U.S. $25.2 million). Exports (2008)--18.3 million euros (U.S. $24.79 million). Note: full customs integration with France, which collects and rebates Monegasque trade duties; also participates in EU market system through customs union with France.
Currency: Monaco, along with France and the other 11 members of the European Monetary Union (EMU), adopted the euro (€) as its official currency on January 1, 2002. As in other EMU states, euros minted in Monaco have special Monegasque features on one side of the coin. (1, 2, and 5 cent coins: Grimaldis’ coat of arms; 10, 20, and 50 cent coins: Prince’s seal; 1 and 2 euro coins: Rainier III or Albert II profiles.)
The Principality of Monaco is the second-smallest independent state in the world, after the Holy See (Vatican City). It is located on the Mediterranean coast, 18 kilometers (11 mi.) east of Nice, France, and is surrounded on three sides by France. Monaco is divided into four sections: Monaco-Ville, the old city on a rocky promontory extending into the Mediterranean; La Condamine, the section along the port; Monte-Carlo, the principal residential and resort area; and Fontvieille, a newly constructed area reclaimed from the sea.
The principality is noted for its beautiful natural scenery and mild, sunny climate. The average minimum temperature in January and February is 8oC (47oF); in July and August the average maximum temperature is 26oC (78oF).
In July 2009, Monaco's population was estimated at 32,965, with an estimated average growth rate for 2009 of 0.394%.
French is the official language; English, Italian, and Monegasque (a blend of French and Italian) also are spoken. The literacy rate is 99%. Roman Catholicism is the official religion, with freedom of other religions guaranteed by the constitution.
Founded in 1215 as a colony of Genoa, Monaco has been ruled by the House of Grimaldi since 1297, except when under French control from 1789 to 1814. Designated as a protectorate of Sardinia from 1815 until 1860 by the Treaty of Vienna, Monaco's sovereignty was recognized by the Franco-Monegasque Treaty of 1861. The Prince of Monaco was an absolute ruler until a constitution was promulgated in 1911.
In July 1918, a treaty was signed providing for limited French protection over Monaco. The treaty, formally noted in the Treaty of Versailles, established that Monegasque policy would be aligned with French political, military, and economic interests.
A new constitution, proclaimed in 1962, abolished capital punishment, provided for female suffrage, and established a Supreme Court to guarantee fundamental liberties.
In 1993, Monaco became an official member of the United Nations with full voting rights. It joined the Council of Europe in 2004.
Three months after the death of his father, Prince Rainier III, on April 6, Prince Albert II formally acceded to the throne on July 12, 2005.
GOVERNMENT AND POLITICAL CONDITIONS
Monaco has been governed as a constitutional monarchy since 1911, with the Prince as chief of state. The executive branch consists of a Minister of State (head of government), who presides over a five-member Council of Government (cabinet). The Minister of State is responsible for foreign relations. As the Prince's representative, the Minister of State also directs the executive services, commands the police, and presides (with voting powers) over the Council of Government. The five members of the Council are respectively responsible for internal affairs, external affairs, the environment, finance and economy, and social affairs and health.
Under the 1962 constitution, the Prince shares his power with the unicameral National Council. Sixteen of the 24 members of this legislative body are elected by list majority system, and 8 by proportional representation to serve 5-year terms. The elections were last held in February 2008. If the Prince dissolves the National Council, new elections must be held within 3 months. Usually meeting twice annually, the Council votes on the budget and endorses laws proposed by the Prince.
Ordinances passed by the National Council are debated in the Council of Government, as are the ministerial decrees signed by the Minister of State. Once approved, the ordinances must be submitted to the Prince within 80 days for his signature, which makes them legally enforceable. If he does not express opposition within 10 days of submission, they become valid.
Judicial power is invested in the Prince, who delegates judicial procedures to the various courts, which dispense justice in his name. The independence of the judges is guaranteed by the constitution. The Supreme Court is composed of five chief members and two assistant judges named by the Prince on the basis of nominations by the National Council and other government bodies. The Supreme Court is the highest court for judicial appeals and also interprets the constitution when necessary. Monaco's legal system, closely related to that of France, is patterned after the Napoleonic Code.
The principality's local affairs (the administration of the four quarters of Monaco-Ville, La Condamine, Monte Carlo, and Fontvieille) are directed by the Communal Council, which consists of 15 elected members and is presided over by the Mayor.
Principal Government Officials
Chief of State--Prince Albert II, Crown Prince
Minister of State--Jean-Paul Proust (until end-March 2010; replacement is Michel Roger)
Ambassador to the United States and United Nations--Gilles Noghes
Council of Government
Finance and Economic Affairs--Gilles Tonelli
Social Affairs and Health--Jean-Jacques Campana
Environment, Equipment and Urbanism--Robert Calcagno
National Council President--Stéphane Valeri
President of Supreme Court--Hubert Charles
Director of Judicial Services--Philippe Narmino
Monaco, located on the Mediterranean coast, has an economy primarily geared toward finance, commerce, and tourism. Low taxes have drawn many foreign companies to Monaco; the companies' production accounts for around 50% of the €846 million annual government income (2007). The enterprises pay a 33.33% tax only if more than 25% of their revenue is generated abroad. Ever since Monaco's famed casino opened in 1856, the tourism industry has been booming. It currently accounts for close to 25% of annual revenue.
Customs, postal services, telecommunications, and banking in Monaco are governed by an economic and customs union with France. The official currency is the euro.
Though official economic statistics are not published, 2008 estimates placed the gross domestic product at 4.492 billion euros (U.S. $6.086 billion); per capita income was not published for 2008. Monaco does not publish figures for unemployment.
Monaco is noted for its activity in the field of marine sciences. Its Oceanographic Museum, formerly directed by Jacques Cousteau, is one of the most renowned institutions of its kind in the world. Monaco imports and exports products and services from all over the world. There is almost no commercial agriculture in Monaco.
Monaco actively participates in the United Nations, which it joined in 1993. Monaco joined the Council of Europe on October 4, 2004. Monaco also is a member of many international and intergovernmental organizations, including Interpol, the UN Educational, Scientific, and Cultural Organization (UNESCO), and the World Health Organization (WHO). The International Hydrographic Bureau (IHB) is headquartered in Monaco.
The Principality of Monaco is a sovereign and independent state, linked closely to France by the Treaty of July 1918, which was formally noted in Article 436 of the Treaty of Versailles of 1919. The foreign policy of Monaco is one illustration of this accord: France has agreed to defend the independence and sovereignty of Monaco, while the Monegasque Government has agreed to exercise its sovereign rights in conformity with French interests. Since then, the relations between the sovereign states of France and Monaco have been further defined in the Treaty of 1945 and the Agreement of 1963.
In 2002, Monaco renegotiated its 1918 treaty with France. In 2005, it was ratified by both parties and entered into force. The terms of the treaty:
Although not a member of the European Union (EU), Monaco is closely associated with the economic apparatus of the EU through its customs union with France and its reliance upon the euro as its official currency.
Monaco has 10 diplomatic missions in Western Europe and permanent representation at the United Nations and the Council of Europe. It maintains honorary consulates in 106 cities in 45 countries. Seventy-six countries have ambassadors, consulates general, consulates, or honorary consulates in or accredited to Monaco. The U.S. Ambassador to Paris has been accredited to Monaco since 2006.
The United States and Monaco enjoy excellent relations, which both countries seek to maintain and strengthen. From 1956 until her death in 1982, the American-born Grace Kelly was married to Prince Rainier III, Prince Albert's father.
In December 2006, the United States and Monaco upgraded from consular to full diplomatic relations. Shortly after, then-Ambassador Craig Stapleton (France) was accredited to Monaco, and Ambassador Gilles Noghes became the first Monegasque ambassador to the United States.
The United States does not yet have a diplomatic mission located in Monaco. The U.S. Consulate General in Marseille handles most working-level contacts with Monaco.
Principal U.S. Official
Ambassador (Paris, France)--Charles Rivkin
The U.S. Embassy in France is located at 2 Avenue Gabriel, Paris 8 (tel.  (1) 4312-2222). The U.S. Consulate General at Marseille is located at Place Varian Fry, 13286 Marseille Cedex 6 (tel. -(4)-91-54-92-00).