Monaco

/mon"euh koh', meuh nah"koh/; Fr. /maw nann kaw"/; It. /maw"nah kaw'/, n.

1. a principality on the Mediterranean coast, bordering SE France. 31,892; ¹/₂ sq. mi. (1.3 sq. km).

2. the capital of this principality. 1685.

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Monaco

Introduction Monaco -
Background: 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. Geography Monaco
Location: Western Europe, bordering the Mediterranean Sea on the southern coast of France, near the border with Italy
Geographic coordinates: 43 44 N, 7 24 E
Map references: Europe
Area: total: 1.95 sq km water: 0 sq km land: 1.95 sq km
Area - comparative: about three times the size of The Mall in Washington, DC
Land boundaries: total: 4.4 km border countries: France 4.4 km
Coastline: 4.1 km
Maritime claims: territorial sea: 12 NM
Climate: Mediterranean with mild, wet winters and hot, dry summers
Terrain: hilly, rugged, rocky
Elevation extremes: lowest point: Mediterranean Sea 0 m highest point: Mont Agel 140 m
Natural resources: none
Land use: arable land: 0% permanent crops: 0% other: 100% (urban area) (1998 est.)
Irrigated land: NA sq km
Natural hazards: NA Environment - current issues: NA Environment - international party to: Air Pollution, Air
agreements: Pollution-Volatile Organic Compounds, Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Wetlands, Whaling signed, but not ratified: Climate Change-Kyoto Protocol
Geography - note: second smallest independent state in the world (after Holy See); almost entirely urban People Monaco -
Population: 31,987 (July 2002 est.)
Age structure: 0-14 years: 15.5% (male 2,545; female 2,418) 15-64 years: 62.1% (male 9,762; female 10,093) 65 years and over: 22.4% (male 2,922; female 4,247) (2002 est.)
Population growth rate: 0.45% (2002 est.)
Birth rate: 9.6 births/1,000 population (2002 est.)
Death rate: 12.91 deaths/1,000 population (2002 est.)
Net migration rate: 7.82 migrant(s)/1,000 population (2002 est.)
Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 0.97 male(s)/female 65 years and over: 0.69 male(s)/ female total population: 0.91 male(s)/ female (2002 est.)
Infant mortality rate: 5.73 deaths/1,000 live births (2002 est.) Life expectancy at birth: total population: 79.12 years female: 83.25 years (2002 est.) male: 75.21 years
Total fertility rate: 1.76 children born/woman (2002 est.) HIV/AIDS - adult prevalence rate: NA% HIV/AIDS - people living with HIV/ NA
AIDS:
HIV/AIDS - deaths: NA
Nationality: noun: Monegasque(s) or Monacan(s) adjective: Monegasque or Monacan
Ethnic groups: French 47%, Monegasque 16%, Italian 16%, other 21%
Religions: Roman Catholic 90%
Languages: French (official), English, Italian, Monegasque
Literacy: definition: NA total population: 99% male: NA% female: NA% Government Monaco -
Country name: conventional long form: Principality of Monaco conventional short form: Monaco local short form: Monaco local long form: Principaute de Monaco
Government type: constitutional monarchy
Capital: Monaco Administrative divisions: 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
Independence: 1419 (beginning of the rule by the House of Grimaldi)
National holiday: National Day (Prince of Monaco Holiday), 19 November
Constitution: 17 December 1962
Legal system: based on French law; has not accepted compulsory ICJ jurisdiction
Suffrage: 21 years of age; universal
Executive branch: chief of state: Prince RAINIER III (since 9 May 1949); Heir Apparent Prince ALBERT Alexandre Louis Pierre, son of the monarch (born 14 March 1958) elections: none; the monarchy is hereditary; minister of state appointed by the monarch from a list of three French national candidates presented by the French Government cabinet: Council of Government is under the authority of the monarch head of government: Minister of State Patrick LECLERCQ (since 5 January 2000)
Legislative branch: unicameral National Council or Conseil National (18 seats; members are elected by popular vote to serve five-year terms) election results: percent of vote by party - NA%; seats by party - UND 18 elections: last held 1 and 8 February 1998 (next to be held NA January 2003)
Judicial branch: Supreme Court or Tribunal Supreme (judges appointed by the monarch on the basis of nominations by the National Council) Political parties and leaders: Campora List [Anne-Maria CAMPORA]; Medecin List [Jean-Louis MEDECIN]; National and Democratic Union or UND [Jean-Louis CAMPORA]; National Union for the Future of Monaco or UNAM [leader NA]; Rally for the Monegasque Family or RFM [leader NA] Political pressure groups and NA
leaders: International organization ACCT, ECE, FAO, IAEA, ICAO, ICC,
participation: ICRM, IFRCS, IHO, IMO, Interpol, IOC, ITU, OPCW, OSCE, UN, UNCTAD, UNESCO, UPU, WHO, WIPO, WMO, WToO Diplomatic representation in the US: Monaco does not have an embassy in the US consulate(s) general: New York Diplomatic representation from the the US does not have an embassy in
US: Monaco; the US Consul General in Marseille (France) is accredited to Monaco
Flag description: two equal horizontal bands of red (top) and white; similar to the flag of Indonesia which is longer and the flag of Poland which is white (top) and red Economy Monaco
Economy - overview: Monaco, situated on the French Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. In 2001, a major new construction project will extend the pier used by cruise ships in the main harbor. The Principality 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. 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. Monaco does not publish national income figures; the estimates below are extremely rough.
GDP: purchasing power parity - $870 million (1999 est.)
GDP - real growth rate: NA%
GDP - per capita: purchasing power parity - $27,000 (1999 est.) GDP - composition by sector: agriculture: NA% industry: NA% services: NA% Population below poverty line: NA% Household income or consumption by lowest 10%: NA%
percentage share: highest 10%: NA% Inflation rate (consumer prices): NA%
Labor force: 30,540 (January 1994)
Unemployment rate: 3.1% (1998)
Budget: revenues: $518 million expenditures: $531 million, including capital expenditures of $NA (1995)
Industries: tourism, construction, small-scale industrial and consumer products Industrial production growth rate: NA% Electricity - consumption: NA kWh
Electricity - imports: NA kWh note: electricity supplied by France (1999)
Agriculture - products: none
Exports: $NA; full customs integration with France, which collects and rebates Monegasque trade duties; also participates in EU market system through customs union with France
Imports: $NA; full customs integration with France, which collects and rebates Monegasque trade duties; also participates in EU market system through customs union with France
Debt - external: $NA Economic aid - recipient: $NA
Currency: euro (EUR); French franc (FRF)
Currency code: EUR; FRF
Exchange rates: euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); French francs per US dollar - 5.8995 (1998), 5.8367 (1997)
Fiscal year: calendar year Communications Monaco - Telephones - main lines in use: 31,027 (1995) Telephones - mobile cellular: NA
Telephone system: general assessment: modern automatic telephone system domestic: NA international: no satellite earth stations; connected by cable into the French communications system Radio broadcast stations: AM 1, FM NA, shortwave 8 (1998)
Radios: 34,000 (1997) Television broadcast stations: 5 (1998)
Televisions: 25,000 (1997)
Internet country code: .mc Internet Service Providers (ISPs): 2 (2000)
Internet users: NA Transportation Monaco -
Railways: total: 1.7 km standard gauge: 1.7 km 1.435-m gauge (2002)
Highways: total: 50 km paved: 50 km unpaved: 0 km (2001)
Waterways: none
Ports and harbors: Monaco
Merchant marine: none (2002 est.)
Airports: none; linked to airport in Nice, France, by helicopter service (2001)
Heliports: 1 (shuttle service between the international airport at Nice, France, and Monaco's heliport at Fontvieille) (2001) Military Monaco -
Military - note: defense is the responsibility of France Transnational Issues Monaco - Disputes - international: none

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I

officially Principality of Monaco

Independent principality, on the Mediterranean Sea near the France-Italy border.

Area: 0.75 sq mi (1.95 sq km). Population (2002 est.): 32,000. The majority of Monaco's population is composed of French citizens, with a small minority of Italians. Less than 15% are of Monegasque descent. Language: French (official). Religion: Roman Catholicism. Currency: euro. Inhabited since prehistoric times, the area was known to the Phoenicians, Greeks, Carthaginians, and Romans. In 1191 the Genoese took possession of it; in 1297 the reign of the Grimaldi family began. The Grimaldis allied themselves with France except for the period from 1524 to 1641, when they were under the protection of Spain. France annexed Monaco in 1793, and it remained under French control until the fall of Napoleon, when the Grimaldis returned. In 1815 it was put under the protection of Sardinia. A treaty in 1861 called for the sale of the towns of Menton and Roquebrune to France and the establishment of Monaco's independence. Monaco, situated along the Côte d'Azur, is one of Europe's most luxurious resorts, known for its Monte-Carlo gambling centre, international sports-car races, and beaches. In 1997 the 700-year rule of the Grimaldis, under Prince Rainier, was celebrated.

II

(as used in expressions)

Principality of Monaco

Princess Grace of Monaco

Lorenzo Monaco

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▪ 2009

Area:

2.02 sq km (0.78 sq mi)

Population

(2008 est.): 34,300

Chief of state:

Prince Albert II

Head of government:

Minister of State Jean-Paul Proust

      Parliamentary elections held in Monaco on Feb. 3, 2008, had a high voter turnout of 77%. The Union for Monaco (UPM), with 52.2% of the vote, won 21 of the National Council's 24 seats, and the Rally and Issues for Monaco (REM) party took the remaining 3 seats, despite having taken 40.5% of the balloting. A third party, Monaco Together, with only 7.3% of the vote, picked up no seats.

      The principality was abuzz with hopes of a possible royal wedding between Prince Albert II and Charlene Wittstock, a former South African swimming champion. The couple's romance first came to notice at the 2006 Turin Winter Olympics. Since then, although there had been no publicly announced engagement, Wittstock had appeared at many official functions with Albert and with his sister Princess Caroline. A government source said of the prince, who turned 50 in March, “Albert has never settled down in the past, but knows that the time is now right to produce the next ruler of Monaco.”

      Monaco's plan to reclaim more land from the sea continued to move forward during the year. The current land-reclamation project would increase Monaco's area by approximately 10 ha (about 25 ac).

Anne Roby

▪ 2008

Area:

1.97 sq km (0.76 sq mi)

Population

(2007 est.): 34,000

Chief of state:

Prince Albert II

Head of government:

Minister of State Jean-Paul Proust

      Prince Albert II of Monaco in 2007 extended his efforts to fight catastrophic climate change. At the Clinton Global Initiative on September 27, he joined forces with UN Foundation Chairman Ted Turner to announce their support for the initiatives of the Global Leadership for Climate Action. The prince stated, “I will personally devote time and energy to mobilize the resources and political will on a global scale to address the environmental challenges of the planet.”

      Planning continued on Monaco's extension of its territory into the Mediterranean. Monaco's director of planning joked that “we are pacifists and obviously can't invade our neighbours to gain more space, so we have to find other ways.” The new district would be built on the surface of the water in order to avoid disturbing the marine life below. It would add about 10 ha (25 ac) to Monaco's current land surface of 197 ha (487 ac)—about a 5% increase. Building, expected to begin about 2010, would include yacht moorings, upscale shops, and more luxury housing. Monaco in 2007 surpassed London as the location with Europe's most-expensive apartments, with rents as high as £1,066 (about $2,140) per square foot.

Anne Roby

▪ 2007

Area:

1.97 sq km (0.76 sq mi)

Population

(2006 est.): 32,800

Chief of state:

Prince Albert II

Head of government:

Minister of State Jean-Paul Proust

      Prince Albert II of Monaco, in his first full year on the throne, focused his energies in 2006 on environmental issues, especially global warming. On February 27 Monaco ratified the Kyoto Protocol on climate change. In April the prince made a four-day trek to the North Pole to publicize the dangers of global warming, and in June he established the Prince Albert II Foundation to support “innovative actions for environmental protection and sustainable environment.”

      As Monaco made drastic cuts in the emission of greenhouse gases, its record on the environment among 40 countries changed from second worst to best. The country also sought greater participation in UN development programs. For the first time, the government agreed to calculate its GDP, which would enable Monaco to determine how much to pay to meet the UN's request for 0.7% of all developed countries' GDP to be used for programs in less-developed countries.

      Monaco again developed a plan to increase the size of its territory. Following the successful reclamation of land from the sea some years earlier, the new project involved building an island off Monte Carlo. The island was expected to provide land for more housing, new hotels, and, possibly, improvements to the Monaco Formula 1 Grand Prix auto-racing circuit.

Anne Roby

▪ 2006

Area:

1.97 sq km (0.76 sq mi)

Population

(2005 est.): 32,700

Chief of state:

Prince Rainier III and, from April 6, Prince Albert II

Head of government:

Ministers of State Patrick Leclercq and, from June 1, Jean-Paul Proust

      Monaco was greatly saddened by the death of Prince Rainier III (Rainier III ) (see Obituaries) on April 6, 2005. Europe's longest-reigning monarch, Rainier had ruled Monaco for 56 years and had transformed the “sunny place for shady people” into a vibrant modern state.

      Prince Albert II (Albert II ) (see Biographies) succeeded to the throne, with the official ceremony held at the cathedral on July 12 followed by celebrations at the palace for the people of Monaco. A formal investiture that included foreign heads of state was held on November 19. Just days before he was enthroned, Albert acknowledged paternity of a two-year-old son, who lived in Paris with his mother, a former Air France flight attendant from Togo. The child was not eligible to succeed to the throne.

      Jean-Paul Proust was appointed to succeed Patrick Leclercq as Monaco's minister of state on June 1. Proust was chosen from a list of three French national candidates presented by the French government.

      Monaco reached agreement with the EU on a tax on savings accounts held abroad by EU residents. The law, which came into force on July 1, targeted interest income from savings and bonds but exempted earnings from stocks and other assets.

Anne Roby

▪ 2005

Area:

1.95 sq km (0.75 sq mi)

Population

(2004 est.): 32,600

Chief of state:

Prince Rainier III

Head of government:

Minister of State Patrick Leclercq

      The year 2004 began in Monaco with renewed concern about the health of Prince Rainier III, who was admitted to a hospital cardiac unit in December 2003 and again on Jan. 2, 2004, suffering “general fatigue.” The 80-year-old prince was hospitalized again for several days in February and October.

      Although Rainier's son and heir, Prince Albert, remained unmarried, worries over Monaco's future had been eased with the revised constitution of 2002, which included female siblings and their legitimate children in the line of succession. Therefore, in 2004 Princess Caroline's elder son, 20-year-old Andrea Casiraghi, stood third in line to the throne, after Albert and Caroline. Meanwhile, Rainier's youngest child, Princess Stephanie, was divorced from her husband of less than a year, Portuguese circus acrobat Adans Lopez Peres.

      On May 4 Monaco signed a cooperative agreement with Andorra to combat money laundering. This agreement, the 15th such bilateral accord reached by Monaco, marked the principality's commitment to international cooperation in the fight against money laundering and the financing of terrorism.

      Twelve new stands opened in time for the 2004 Monaco Grand Prix Formula 1 auto race in late May. The rebuilt stands provided seating for 6,000 spectators, and a widened esplanade afforded new underground premises that would be used for offices, shops, and restaurants. The total area gained was 5,000 sq m (about 54,000 sq ft).

Anne Roby

▪ 2004

Area:

1.95 sq km (0.75 sq mi)

Population

(2003 est.): 32,400

Chief of state:

Prince Rainier III

Head of government:

Minister of State Patrick Leclercq

      In the Feb. 9, 2003, election for Monaco's National Council, the opposition party, Union for Monaco (UNAM), swept to power. Led by Stéphane Valéri, the UNAM gained 21 of the 24 seats, and the former ruling party, the National and Democratic Union (UND), won only 3. With a high turnout of approximately 80% of the 5,800 eligible voters, the UNAM won 58.5% of the ballots and the UND 41.5%. (Eight of the seats were reserved for a system of proportional representation to ensure pluralism in the Council.) The defeat of the UND, which had led the Council for more than three decades, was attributed to the UND's lack of support for Monaco's bid to join the Council of Europe—a move supported “with fervour” by the UNAM and by Prince Rainier III.

      In October 2002, after more than two years of negotiations, Monaco and France had signed a new treaty to replace the Treaty of 1918. The new accord affirmed Monaco's status as an independent state, clarified the right of succession, and confirmed Monaco's right to establish its own diplomatic relations with other countries. In light of these changes, Prince Albert made several official overseas trips in 2003, including a visit to Russia, where he installed an honorary consul for Monaco in St. Petersburg. He also hosted the inaugural International Association of Athletics Federations World Athletics Finals, which were held in Monte-Carlo on September 13–14.

Anne Roby

▪ 2003

Area:

1.96 sq km (0.76 sq mi)

Population

(2002 est.): 32,000

Chief of state:

Prince Rainier III

Head of government:

Minister of State Patrick Leclercq

      On April 2, 2002, concerns about the health of Prince Rainier III led Monaco to define the ranks of succession in the principality. Prince Albert remained first in line to succeed his father, but if Albert died without children, Princess Caroline would be next in line, followed by her eldest son, Prince Andrea.

      The Port Condamine harbour upgrade was completed in 2002. Pontoon-type sea walls were erected outside the existing harbour, and a floating dock enclosed 8,000 sq m (9,568 sq yd) of reclaimed land at Fort Antoine. Half of the floating breakwater was intended to provide parking, while the other half was designed to hold boat stores.

      In April the Organisation for Economic Co-operation and Development named Monaco one of seven uncooperative tax havens, although the government said it had taken steps to increase the exchange of tax information. The banking-secrecy laws came under further scrutiny in October when British banker Stephen Troth confessed to having embezzled approximately €20 million (about $19.6 million) while working at the private bank HSBC Republic in Monaco.

Anne Roby

▪ 2002

Area:

1.95 sq km (0.75 sq mi)

Population

(2001 est.): 31,800

Chief of state:

Prince Rainier III

Head of government:

Minister of State Patrick Leclercq

      As health problems continued to sideline Prince Rainer III, his son, Prince Albert, took the spotlight in 2001, making a number of official trips abroad. In March Albert chaired a convention on air-pollution monitoring in Rabat, Morocco. In Cuba on a five-day visit in April, he attended a sports conference and, after meeting with Pres. Fidel Castro, opened Monaco's first consulate in Cuba. Albert also traveled to Moscow, where he met with Russian Prime Minister Mikhail Kasyanov to discuss cooperation in business, finance, culture, and sports. The July visit was the first by a prince of Monaco to Russia since 1913. In New York City in October, Albert attended a benefit in tribute to his late mother, Princess Grace, and gave Mayor Rudolph Giuliani a check for $710,000 to be contributed to the Twin Towers Fund.

      An ambitious building program to attract more visitors to Monaco continued during the year. The new Grimaldi Forum provided conference facilities with space for such special events as trade fairs. Monte-Carlo announced its intention to develop more family-oriented activities, especially attractions for children. Government data showed that the number of people who spent at least one night in Monaco hit a record high of 300,185 in 2000.

Anne Roby

▪ 2001

Area:

1.95 sq km (0.75 sq mi)

Population

(2000 est.): 31,700

Chief of state:

Prince Rainier III

Head of government:

Ministers of State Michel Leveque and, from January 5, Patrick Leclercq

      Monaco expressed concern as Prince Rainier III underwent two lung operations in February 2000, which followed heart surgery on Dec. 16, 1999.

      A report from the French Parliament's investigation of financial crimes in Europe in June called Monaco a money-laundering paradise. It accused the principality of having willfully devised such lax banking laws—including a guarantee of anonymity—that officials could not cooperate in the international fight against money laundering even if they desired to do so. The report stated that Monaco had 10 times more bank accounts than residents and that its request to join the Council of Europe and the 16-nation euro zone was unlikely to succeed without substantial changes. Responding to the accusations, Monaco threatened to break with France and “endow the principality with full sovereignty.”

      On June 30, after weeks of denial, Prince Ernst August of Hanover apologized for urinating on the Turkish pavilion at the Expo 2000 world's fair in Hannover, Ger., saying it was “not a conscious act.” The prince had attended the fair with his wife, Princess Caroline, her father, Prince Rainier III, and her brother, Prince Albert.

Anne Roby

▪ 2000

Area:

1.95 sq km (0.75 sq mi)

Population

(1999 est.): 32,100

Chief of state:

Prince Rainier III

Head of government:

Minister of State Michel Leveque

      In January 1999 Monaco celebrated the marriage of Princess Caroline, the elder daughter of Prince Rainier III, to Prince Ernst August of Hanover. It was her third marriage and his second. Prince Rainier, head of a royal house founded in 1297, celebrated the 50th anniversary of his coronation in May.

      Monaco's economy continued its steady growth. The Financial Times reported on May 6 that Monaco had an annual budget of F 4 billion (F 1 = about U.S.$0.16), carried no debt, and had unpublished liquid reserves of at least F 10 billion. Nevertheless, there were concerns about the sources of revenue. The principality's first money-laundering prosecution had begun in 1998, a case involving an Israeli citizen linked to Latin American drug dealing. There were also worries about Russian mafia money entering the country. In response, a special money-laundering investigation unit was formed, headed by a former magistrate with three full-time officials.

Anne Roby

▪ 1999

      Area: 1.95 sq km (0.75 sq mi)

      Population (1998 est.): 32,000

      Chief of state: Prince Rainier III

      Head of government: Minister of State Michel Leveque

      In legislative elections held in February 1998 for the 18-member National Council, the National and Democratic Union Party won 15 seats in the first round of voting on February 1 and the 3 remaining seats on February 8. The two other political parties that fielded candidates failed to win a seat. On February 19 Michel Leveque was reappointed minister of state.

      Prince Albert piloted Monaco's bobsled team in the Winter Olympic Games in February. Earlier that month he had traveled to Japan on an official visit to foster Japanese investment in his country. Speculation continued about when he might succeed his father, Prince Rainier III, as chief of state. Rainier wanted Albert to be married before he took over the leadership of the country.

ANNE ROBY

▪ 1998

      Area: 1.95 sq km (0.75 sq mi)

      Population (1997 est.): 31,900

      Chief of state: Prince Rainier III

      Head of government: Ministers of State Paul Dijoud and, from February 3, Michel Leveque

      Beginning with a mass in the cathedral and continuing with a multimedia waterfront extravaganza that depicted scenes from the principality's long history, yearlong festivities opened in Monaco on Jan. 8, 1997, to mark the 700th year of rule by the Grimaldi family. Prince Rainier III unveiled a statue of the dynasty's founder, François Grimaldi, who on Jan. 8, 1297, disguised himself as a monk to get inside the gates of Monaco and then opened them to his forces and seized control.

      Amid speculation about the succession, Rainier, who had stated that he would hand over rule of the principality to Prince Albert when he thought his son was ready, was expected to continue ruling Monaco at least until May 9, 1999, the 50th anniversary of his reign.

      Once the mainstay of the economy, revenue from the state-controlled Société des Bains de Mer, which operated the casinos, had been declining for a few years. These losses were offset, however, by a relatively diverse underlying economy comprising more than 100 industries along with tourism and banking and financial services. A telecommunications industry was being developed, and construction was strong as Monaco continued to expand in the only directions it could—underground and out into the sea.

ANNE ROBY

      This article updates Monaco.

▪ 1997

      A sovereign principality on the northern Mediterranean coast, Monaco is bounded on land by the French département of Alpes-Maritimes. Area: 1.95 sq km (0.75 sq mi). Pop. (1996 est.): 30,500. Monetary unit: French franc, with (Oct. 11, 1996) a free rate of F 5.18 to U.S. $1 (F 8.16 = £ 1 sterling). Chief of state, Prince Rainier III; minister of state in 1996, Paul Dijoud.

      Monaco removed itself from the French telephone network early in 1996 and received its own country code—377. The Office Monegasque des Telephones, which was controlled by the royal family, joined with Global TeleSystems Group Inc. to create a joint venture, GTS Monaco Access SAM. The new company would offer international phone service to cellular phone companies and cable television companies at rates lower than those of established national phone companies, which had previously held protected monopolies for their international connections.

      On October 4 Princess Stephanie was granted a divorce from Daniel Ducruet. The couple, the parents of two children, were married in July 1995. (ANNE ROBY)

      This article updates Monaco.

▪ 1996

      A sovereign principality on the northern Mediterranean coast, Monaco is bounded on land by the French département of Alpes-Maritimes. Area: 1.95 sq km (0.75 sq mi). Pop. (1995 est.): 30,400. Monetary unit: French franc, with (Oct. 6, 1995) a free rate of F 5.01 to U.S. $1 (F 7.93 = £ 1 sterling). Chief of state, Prince Rainier III; ministers of state in 1995, Jacques Dupont and, from November 24, Paul Dijoud.

      The tiny principality of Monaco sustained its serenity and its prosperity during 1995. Amid speculation that he would abdicate in favour of his son, Prince Albert, Prince Rainier reigned on, and the economy remained buoyant. Imminent abdication was reported by the French magazine Paris Match shortly after Prince Rainier's heart-bypass surgery in November 1994. Prince Albert was unmarried, which raised questions about the succession. Under a 1918 treaty, France can annex the principality if there is no male Grimaldi heir. There were also rumours that Prince Rainier might name Princess Caroline's eldest son as his heir. Outside Monaco, speculation abounded even after the rumours were denounced as "sheer fantasy." Meanwhile, Princess Stephanie married Daniel Ducruet, her former bodyguard, in July.

      The move to diversify Monaco's economy continued. A country once funded by the proceeds of gambling in the casinos was now estimated to receive only 4% of its income from that source. Tourism continued to drive the economy, especially the lucrative business-conference sector. Construction cranes were everywhere as building continued for new housing, a conference and cultural centre, a railroad station, a new jetty, and other projects. (ANNE ROBY)

      This updates the article Monaco.

▪ 1995

      A sovereign principality on the northern Mediterranean coast, Monaco is bounded on land by the French département of Alpes-Maritimes. Area: 1.95 sq km (0.75 sq mi). Pop. (1994 est.): 30,300. Monetary unit: French franc, with (Oct. 7, 1994) a free rate of F 5.27 to U.S. $1 (F 8.38 = £ 1 sterling). Chief of state, Prince Rainier III; ministers of state in 1994, Jacques Dupont and, from December 2, Paul Dijoud.

      The economy of Monaco, driven by tourism, continued to thrive in 1994 despite the recession experienced by neighbouring countries. As the number of day visitors, particularly from Italy and France, declined, the more lucrative business conference sector burgeoned. Monaco served as host for large business conferences for the insurance and television industries as well as internal meetings and promotional events for many individual companies. Two major conference centres were in operation, and a huge new conference and cultural centre was under construction. The conference industry in 1994 accounted for almost a third of Monaco's foreign visitors.

      The local economy expanded as work continued on such projects as the construction of a new jetty beside the present harbour and the creation of Fontvieille II, a complex of inexpensive housing for Monaco citizens. Both Fontvieille areas were built on land reclaimed from the sea. The planned reconstruction of the railroad station underground also promised to open up more land area.

      Rumours of money laundering at the casino of Monte-Carlo prompted Prince Rainier to order an internal audit of the casino. Organized crime figures were said to have bought large quantities of chips for cash, played a few, and redeemed the remainder for a casino check. Jean Pastorelli, Monaco's finance councillor, denied the possibility of widespread laundering "because we know our main clients."

      (ANNE ROBY)

      This updates the article Monaco.

▪ 1994

      A sovereign principality on the northern Mediterranean coast, Monaco is bounded on land by the French département of Alpes-Maritimes. Area: 1.95 sq km (0.75 sq mi). Pop. (1993 est.): 30,500. Monetary unit: French franc, with (Oct. 4, 1993) a free rate of F 5.67 to U.S. $1 (F 8.58 = £ 1 sterling). Chief of state, Prince Rainier III; minister of state in 1993, Jacques Dupont.

      On May 25, 1993, the principality of Monaco applied for membership in the United Nations after Minister of State Jacques Dupont visited New York City for talks with UN Secretary-General Boutros Boutros-Ghali and members of the Security Council. Monaco had held observer status at the United Nations since 1955. On May 28 Monaco and newly independent Eritrea were admitted to UN membership, bringing the total number of member states to 183.

      The Vatican announced on April 5 that it had declared legitimate Princess Caroline's children from her second marriage to Stefano Casiraghi, who had died in a speedboat accident in 1990. Her first marriage to Philippe Junot of France, whom she had divorced in 1980, was annulled by the Vatican in 1992. Caroline's three children by Casiraghi—Andrea, Pierre, and Charlotte—had been technically disqualified from the succession in Monaco because they were born before the church recognized Caroline's 1983 marriage to Casiraghi. (ANNE ROBY)

      This updates the article Monaco.

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officially  Principality of Monaco , French  Principauté de Monaco 

Monaco, flag of  sovereign principality located along the Mediterranean Sea in the midst of the resort area of the Côte d'Azur (French Riviera). The city of Nice lies 9 miles (15 km) to the west, the Italian border 5 miles (8 km) to the east. Monaco's tiny territory occupies a set of densely clustered hills and a headland that looks southward over the Mediterranean. Many unusual features, however, have made Monaco among the most luxurious tourist resorts in the world and have given it a fame far exceeding its size.

      Many visitors to Monaco alternate their hours between its beaches and boating facilities, its international sports-car races, and its world-famous Place du Casino, the gambling centre in the Monte-Carlo section that made Monte-Carlo an international byword for the extravagant display and reckless dispersal of wealth. The country has a mild Mediterranean climate with annual temperatures averaging 61 °F (16 °C) and with only about 60 days of rainfall. Monthly average temperatures range from 50 °F (10 °C) in January to 75 °F (24 °C) in August.

      Evidences of Stone Age settlements in Monaco are preserved in the principality's Museum of Prehistoric Anthropology. In ancient times the headland was known to the Phoenicians, Greeks, Carthaginians, and Romans. In 1191 the Genoese took possession of it, and in 1297 the long reign of the Grimaldi Family began. The Grimaldis allied themselves with France except for the period from 1524 to 1641, when they were under the protection of Spain. In 1793 they were dispossessed by the French Revolutionary regime, and Monaco was annexed to France. With the fall of Napoleon I, however, the Grimaldis returned; the Congress of Vienna (Vienna, Congress of) (1815) put Monaco under the protection of Sardinia. The principality lost the neighbouring towns of Menton and Roquebrune in 1848 and finally ceded them to France under the terms of the Franco-Monegasque treaty of 1861. The treaty did restore Monaco's independence, however, and in 1865 a customs union was established between the two countries. Another treaty that was made with France, in 1918, contained a clause providing that, in the event that the Grimaldi dynasty should become extinct, Monaco would become an autonomous state under French protection. A revision to the constitution in 2002 added females and their legitimate children to the line of succession. In 1997 the Grimaldi family commemorated 700 years of rule, and in 1999 Prince Rainier III (Rainier III, prince de Monaco) marked 50 years on the throne. Shortly before his death in 2005, his son Albert became regent. The principality joined the United Nations in 1993. Though not a member of the European Union (EU), Monaco phased out the French franc for the single European currency of the euro by 2002.

      Monaco's refusal to impose income taxes (income tax) on its residents and on international businesses that have established headquarters in the principality led to a severe crisis with France in 1962. A compromise was reached by which French citizens with less than five years residence in Monaco were taxed at French rates and taxes were imposed on Monegasque companies doing more than 25 percent of their business outside the principality. In the early 21st century, some European nations criticized Monaco's loose banking regulations, claiming that the principality sheltered tax evaders and money launderers.

      Monaco's constitution of 1911 provided for an elected National Council, but in 1959 Prince Rainier III (Rainier III, prince de Monaco) suspended part of the constitution and dissolved the National Council because of a disagreement over the budget. In 1961 he appointed instead a national assembly. The aforementioned crisis of 1962 with France led him to restore the National Council and to grant a new, liberal constitution. The council comprises 18 members, elected by universal suffrage for a term of five years. Government is carried on by a minister of state (who must be a French citizen) and three state councillors acting under the authority of the prince, who is the official chief of state. Legislative power is shared by the prince and the National Council. Since 1819 the judicial system has been based on that of France; since 1962 the highest judicial authority has been the Supreme Tribunal.

      A substantial portion of the government's revenues comes from taxes on commercial transactions; additional revenue is drawn from franchises on radio, television, and the casino, from state-operated monopolies on tobacco and postage stamps, from sales taxes, and from the taxes imposed since 1962.

      Monaco's chief industry is tourism, and its facilities make it one of Europe's most luxurious resorts. Once a winter attraction, it now draws summer visitors as well to its beaches and expanded mooring facilities. Business conferences are especially important. The social life of Monte-Carlo revolves around the Place du Casino. The casino was built in 1861, and in 1967 its operations were taken over by the principality. Banking and finance and real estate are other important components of the diverse services sector.

      A majority of Monaco's population is composed of French citizens (nearly half); a smaller but significant number are Italian, Swiss, and Belgian. Only about one-sixth of the population claims Monegasque descent. Most of the people are Roman Catholics. The official language is French (French language).

      The four sections, or quartiers, of Monaco are the town of Monaco, or “the Rock,” a headland jutting into the sea on which the old town is located; La Condamine, the business district on the west of the bay, with its natural harbour; Monte-Carlo, including the gambling casino; and the newer zone of Fontvieille, in which various light industries have developed.

      In Monaco are the Roman Catholic cathedral, the prince's Genoese and Renaissance palace, and the Oceanographic Museum of Monaco, built in 1910. The casino itself contains a theatre designed by the 19th-century French architect Charles Garnier, which is the home of the Opéra de Monte Carlo. During the 1920s many of the works of the famous Ballets Russes (Ballet Russe de Monte Carlo) of Sergey Diaghilev were given their premieres there. There is also a Monte-Carlo national orchestra. The best known of the automobile events held in the principality are the Monte-Carlo Rally and the Grand Prix de Monaco.

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