Monaco

The principality was founded by the Genoese in the VI century, who built a fortress on a rock. In 1297, Prince Otanien, from the Grimaldi family, captured the fortress. Since then, this dynasty has ruled Monaco, except for a few periods. Over the centuries, the country has experienced many crises and wars, but thanks to diplomacy and strategic positioning, the principality was able to maintain its autonomy and the status of an independent state.

Monaco is located on the southwestern coast of Europe, just a few kilometers from Nice and very close to Italy. It borders only one country – France, the length of the border is just over 5 km. Monaco is located in a picturesque bay surrounded by mountains, which creates an ideal climate for living and relaxing.

The country is a constitutional monarchy combining elements of dualism

The supreme ruler is the prince. The basic principles of government are enshrined in the Constitution adopted on December 17, 1962. Although it declares the separation of powers, it grants the prince unlimited powers. 

In 2002, the Constitution underwent changes, as a result of which the powers of the legislative branch, represented by the National Council, were increased. Executive power is in the hands of the Minister of State, who holds the post of head of Government, and a four-person cabinet headed by him. The Minister is appointed by the Prince. His term of office is three years.

Climatic conditions

The climate here is Mediterranean, with mild winters and warm, dry summers. The temperature in the summer months often exceeds +30 °C, while in winter it rarely drops below +5 °C. This favorable geographical location makes Monaco one of the most visited places in Europe, attracting tourists from all over the world.

The city is located in an area of increased seismic activity. Although earthquakes of minor magnitude are recorded here from time to time, they do not have a significant impact.

Almost the whole country is urbanized

As such, there is no agriculture. There are small areas where the warm climate allows you to grow olive, figs, citrus fruits, pomegranates, almonds, grapes in small quantities for domestic consumption. There are few fish in the coastal areas. Local fishermen catch sardines, anchovies, mullets, mackerel, oysters, mussels to a limited extent.

Demographics

By July 1, 2021, the number of people living in the Principality reached 31,223. Of these, only 20 % are citizens of the country, known as Monegasques, who enjoy privileges, including tax benefits and the right to live in the historical part of the city. With an index of 18,679 people per 1 km2, Monaco is considered to be the country with one of the highest densities of inhabitants in the world. According to UN estimates for 2019, the number of immigrants and their descendants amounted to 26,511 people, which is equivalent to 68 % of the total. Annual growth is estimated at 0,53 % according to data for 2021.

Monaco stands out among the world community for its aging population. As of 2020, the average age of its inhabitants was 55,4 years, which is the highest in the world. The age structure of the population is distributed as follows:

• 9,41 % under 14 years of age;
• 55,44 % from 15 to 64 years of age;
• 35,15 % over 65 years of age. 

According to the latest data for 2023, life expectancy in Monaco is one of the highest on the planet and averages 89,6 years, broken down into men (85,8 years) and women (93,6 years).

The birth rate for 2021 was 6,63 newborns per 1,000 people, while the mortality rate increased to 10,47, which is associated with the aging process of the population. The migration rate remains significant, having already reached 9,16 migrants per thousand inhabitants as of 2021.

The ethnic composition is characterized by the following distribution:

• French – 28,24 %; 
• Monegasque – 21,5 %;
• Italians – 18,57 %; 
• British – 7,5 %; 
• other nationalities – 24,19 %. 

In 1925, the first Protestant parish was founded in the principality. Today, their number is 1,2 thousand people, including 680 Reformed, 300 Anglicans and two Evangelical communities. Since 1957, there has been a Greek Orthodox community in Monaco. 560 inhabitants adhere to the Jewish faith, and about 150 Muslims, consisting mainly of Arabs. Since the second half of the 1950s, Baha'i followers have also been active in the principality.

In addition to these religious groups, believers of other faiths live in Monaco, but their number is insignificant and does not allow the formation of separate communities. Some of them attend services in neighboring Nice or other French cities to participate in religious events.

Please note! 

The majority of the inhabitants of the principality, namely 82 %, profess Catholicism, which makes it the most widespread religion in the country. There are five Catholic parishes on the territory, as well as a cathedral.

French is the official language. Street signs are presented in French and Monegasque. Linguists classify the latter as a dialect of Ligurian, which prevails in the Italian region. Approximately 58 % of the population are fluent in French, and about 19 % speak Italian.

Economy

The main areas of Monaco's income are tourism, gambling, the construction of elite residential complexes, as well as attracting media attention to the life of the ruling dynasty.

Strict banking confidentiality and preferential taxation attract foreign capital. Many people prefer to keep money in the financial institution of the Principality.

In the late 1990s, the banking sector showed an annual asset growth of 18 %. Monaco is distinguished by the absence of external debt and the presence of foreign exchange reserves of about 2 billion, as well as a low unemployment rate of only 3 %.

There are also certain disadvantages. According to agreements with France, since 1994, banks have been required to disclose information about suspicious accounts, which has become common practice in other countries. The economy of Monaco is also sensitive to fluctuations in the markets of France and Italy.

Value added tax (VAT) is the source of 55 % of government revenue. The European Union is putting forward demands for stricter banking and tax legislation. In addition, the country is completely dependent on imports due to the lack of its own resources. According to data for 2023, the inflation rate was 2,05 %.

Freedom of movement

The advantage of Monegasque citizenship can be considered freedom of movement. The passport ranks 12th in the ranking of all countries in this parameter. A visa is not required for 115 countries. To visit 52 countries, you need a permit document upon arrival.