The Genoese built a fortress on the site of present day Monaco in 1215. The current ruling Grimaldi family first seized temporary control in 1297, and again in 1331, but were not able to permanently secure their holding until 1419. Economic development was spurred in the late 19th century with a railroad linkup to France and the opening of a casino. Since then, the principality's mild climate, splendid scenery, and gambling facilities have made Monaco world famous as a tourist and recreation center.

Western Europe, bordering the Mediterranean Sea on the southern coast of France, near the border with Italy

43 44 N, 7 24 E

Europe

about three times the size of The Mall in Washington, DC

4.1 km

Mediterranean with mild, wet winters and hot, dry summers

hilly, rugged, rocky

none

NA

NA

NA

second-smallest independent state in the world (after Holy See); almost entirely urban

French 47%, Monegasque 16%, Italian 16%, other 21%

French (official), English, Italian, Monegasque

Roman Catholic 90% (official), other 10%

30,510 (July 2012 est.)

-0.066% (2012 est.)

6.85 births/1,000 population (2012 est.)

8.52 deaths/1,000 population (July 2012 est.)

1.02 migrant(s)/1,000 population (2012 est.)

1.51 children born/woman (2012 est.)

4.7% of GDP (2009)

5.81 physicians/1,000 population (1995)

NA

NA

NA

1.2% of GDP (2004)

constitutional monarchy

none; there are no first-order administrative divisions as defined by the US Government, but there are four quarters (quartiers, singular - quartier); Fontvieille, La Condamine, Monaco-Ville, Monte-Carlo

1419 (beginning of permanent rule by the House of GRIMALDI)

National Day (Saint Rainier's Day), 19 November (1857)

17 December 1962; modified 2 April 2002

civil law system influenced by French legal tradition

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

18 years of age; universal

unicameral National Council or Conseil National (24 seats; 16 members elected by list majority system, 8 by proportional representation to serve five-year terms)

Supreme Court or Tribunal Supreme (judges appointed by the monarch on the basis of nominations by the National Council)

Monaco Together; Rally and Issues for Monaco or REM; Union for Monaco or UPM (including National Union for the Future of Monaco or UNAM)

NA

CE, FAO, IAEA, ICAO, ICC, ICRM, IFRCS, IHO, IMO, IMSO, Interpol, IOC, IPU, ITSO, ITU, OAS (observer), OIF, OPCW, OSCE, Schengen Convention (de facto member), UN, UNCTAD, UNESCO, UNIDO, Union Latina, UNWTO, UPU, WHO, WIPO, WMO

the US does not have an embassy in Monaco; the US Ambassador to France is accredited to Monaco; the US Consul General in Marseille (France), under the authority of the US ambassador to France, handles routine diplomatic and consular matters concerning Monaco

two equal horizontal bands of red (top) and white; the colors are those of the ruling House of Grimaldi and have been in use since 1339, making the flag one of the world's oldest national banners

Monaco, bordering France on the Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. The principality also is a major banking center and has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state has no income tax and low business taxes and thrives as a tax haven both for individuals who have established residence and for foreign companies that have set up businesses and offices. Monaco, however, is not a tax-free shelter; it charges nearly 20% value-added tax, collects stamp duties, and companies face a 33% tax on profits unless they can show that three-quarters of profits are generated within the principality. Monaco's reliance on tourism and banking for its economic growth has left it vulnerable to a downturn in France and other European economies which are the principality''s main trade partners. In 2009, Monaco''s GDP fell by 11.5% as the euro-zone crisis precipitated a sharp drop in tourism and retail activity and home sales. A modest recovery ensued in 2010 with GDP growth of 2.5%, but Monaco''s economic prospects remain clouded in uncertainty tied to future euro-zone growth. Weak economic growth also has deteriorated public finances as the principality recorded a budget deficit of 1.9% of GDP in 2010. Monaco was formally removed from the OECD''s "grey list" of uncooperative tax jurisdictions in late 2009, but continues to face international pressure to abandon its banking secrecy laws and help combat tax evasion. The state retains monopolies in a number of sectors, including tobacco, the telephone network, and the postal service. Living standards are high, roughly comparable to those in prosperous French metropolitan areas.

$5.47 billion (2010 est.)

$5.337 billion (2009 est.)

$6.03 billion (2008 est.)

$5.47 billion (2010 est.)

2.5% (2010 est.)

-11.5% (2009)

$NA (2010)

$63,400 (2009 est.)

$71,600 (2008 est.)

49,300

0% (2005)

NA%

18.4% of GDP (2010 est.)

-1.9% of GDP (2010 est.)

1.5% (2010)

$NA

none

tourism, construction, small-scale industrial and consumer products

NA%

$711 million (2010)

$716.3 million (2005)

$882.6 million (2010)

$916.1 million (2005)

$NA

euros (EUR) per US dollar -

0.7194 (2011 est.)

0.755 (2010 est.)

0.7198 (2009 est.)

0.6827 (2008 est.)

0.7345 (2007 est.)

calendar year

34,200 (2011)

30,400 (2011)

TV Monte-Carlo (TMC) operates a TV network; Radio Monte-Carlo has both an Italian-language and a French-language network; there are a few private radio stations (2008)

.mc

25,674 (2010)

23,000 (2009)

1 (2012)

Monaco

no regular military forces; Directorate of Public Security (2012)

defense is the responsibility of France

none