Principality of Monaco

Principatu de Múnegu Principauté de Monaco Principality of Monaco


Motto Deo Juvante With God's Help
Anthem Hymne Monégasque
Location of Monaco

Capital	Monaco

Government	Constitutional monarchy
Prince
- From 2005	Albert II
Minister of State
- From 2010	Michel Roger

Legislature	National Council

History
- 1297	House of Grimaldi
- 1911	Constitution

Area	2.02 km²

Population
- 2010	30,586
Density	15,141.5/km²

GDP	2010 (PPP)
- Total	US$ 4.8 billion
- Per capita	US$ 159,811

Currency	Euro

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The Principality of Monaco is a constitutional monarchy in Southern Europe.

Background

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.^[1]

Economy

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 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.^[2]