Monaco

Monaco en-us-Monaco.ogg /ˈmɒnəkoʊ/ (help·info), officially the Principality of Monaco (French: Principauté de Monaco; Monégasque: Principatu de Múnegu; Italian: Principato di Monaco; Occitan: Principat de Mónegue), is a small sovereign city-state located in South Western Europe (Monaco is the name of the country as well as the name of its only city). The territory lies on the northern coast of the Mediterranean Sea. Monaco is often regarded as a tax haven, and many of its inhabitants are wealthy and from foreign countries making up a majority of the population, at around 84%.[3]

Monaco is a constitutional monarchy and principality, with Prince Albert II as head of state. The Grimaldi family has ruled over Monaco since 1297 and the state's sovereignty was officially recognized by the Franco-Monegasque Treaty of 1861. Despite being independent, Monaco's defence is still the responsibility of France.

Monaco is the world's most densely populated sovereign country, and the world's smallest French-speaking country. An average person takes only 56 minutes to walk across the width of the country.
Monaco's name comes from the nearby Phocaean Greek colony, in the 6th century, which referred to the Ligurians as Monoikos, from the Greek μόνοικος "single house", from μόνος "alone, single" + οίκος "house", which bears the sense of a people either settled in a "single habitation" or of "living apart" from others. According to an ancient myth, Hercules passed through the Monaco area and turned away the previous gods. As a result, a temple was constructed there, the temple of Hercules Monoikos. Because the only temple of this area was the "House" of Hercules, the city was called Monoikos.[4]

Following a land grant from Emperor Henry VI in 1191, Monaco was re-founded in 1228 as a colony of Genoa. Monaco has been ruled by the House of Grimaldi since 1297, when Francesco Grimaldi ("Il Malizia", translated from Italian either as "The Malicious One" or "The Cunning One") and his men captured the fortress protecting the Rock of Monaco while he was dressed as a Franciscan monk - a Monaco in Italian, although this is a coincidence as the area was already known by this name.
A statue of François Grimaldi says "il Malizia" (the Shrewd) guised as a monk with a sword under his frock before the Prince's Palace of Monaco.

In 1793, French Revolutionary forces captured Monaco, and it remained under French control until 1814. The principality was re-established that year, only to be designated a protectorate of the Kingdom of Sardinia by the Congress of Vienna in 1815. Monaco remained in this position until 1860, when by the Treaty of Turin, Sardinia ceded to France the surrounding county of Nice (as well as Savoy). During this time there was unrest in the towns of Menton and Roquebrune, which declared independence, hoping for annexation by Sardinia. The unrest continued until the ruling prince gave up his claim to the two towns (some 95% of the country), and they were ceded to France in return for four million francs. This transfer and Monaco's sovereignty was recognised by the Franco-Monegasque Treaty of 1861.

Until the adoption of the 1911 constitution, the princes of Monaco were absolute rulers. In July 1918, a treaty was signed providing for limited French protection over Monaco. The treaty, part of the Treaty of Versailles, established that Monegasque international policy would be aligned with French political, military, and economic interests.

In 1943, the Italian army invaded and occupied Monaco, setting up a Fascist administration. Shortly thereafter, following Mussolini's collapse in Italy, the Nazi German Wehrmacht occupied Monaco and began the deportation of the Jewish population. Among them was René Blum (Paris, 13 March 1878 - Auschwitz, 30 April 1943), who founded the Ballet de l'Opera in Monte Carlo. He was held in the Drancy deportation camp outside Paris, France from whence he was then shipped to the Auschwitz concentration camp where he died.
Rainier III, Prince of Monaco, 1949 to 2005

Rainier III who ruled until 2005 acceded to the throne following the death of his grandfather, Prince Louis II, in 1949. On April 19, 1956, Prince Rainier married the American actress Grace Kelly; the event was widely televised and covered in the popular press, briefly focusing the world's attention onto the tiny Principality.

A new constitution, proclaimed in 1962, abolished capital punishment, provided for women's suffrage, and established a Supreme Court of Monaco to guarantee fundamental liberties. In 1993, the Principality of Monaco became a member of the United Nations, with full voting rights.

In 2002, a new treaty between France and Monaco specified that, should there be no heirs to carry on the Grimaldi dynasty, the principality would still remain an independent nation rather than revert to France. Monaco's military defence, however, is still the responsibility of France.

On 31 March 2005, Prince Rainier III, too ill to exercise his duties, relinquished them to his only son and heir, Prince Albert Alexandre Louis. Prince Rainier died on 6 April 2005, after a reign of 56 years, and his son succeeded him as Albert II, Sovereign Prince of Monaco.

Following a period of official mourning, Prince Albert II formally assumed the princely crown on 12 July 2005, in a celebration that began with a solemn Mass at Monaco cathedral, where his father had been buried three months earlier. His accession to the Monegasque throne was a two-step event, with a further ceremony, drawing heads of state for an elaborate levée, held on 19 November 2005 at the historic palace in Monaco-Ville. Albert II is the son of the late Princess Grace, known prior to her marriage to Prince Rainer III in 1956 as Grace Kelly.
One of Monaco's main sources of income is tourism; each year many are attracted to its casino and pleasant climate. (Monaco's own citizens are not allowed to gamble in the casino.) In 2001, a major new construction project extended the pier used by cruise ships in the main harbour. The principality has successfully sought to diversify into services and small, high-value-added, non-polluting industries such as cosmetics and biothermics.

The state retains monopolies in numerous sectors, including tobacco and the postal service. The telephone network (Monaco Telecom) used to be owned by the state; it now owns 45%, while the remaining 55% is owned by Cable and Wireless (49%) and Compagnie Monégasque de Banque (6%). It is still, however, a monopoly. Living standards are high, roughly comparable to those in prosperous French metropolitan areas.

Monaco is not a member of the European Union but is very closely linked to it via a customs union with France, and as such its currency is the same as that of France: the euro. Before 2002, Monaco minted its own franc coins, the Monegasque franc. Monaco has acquired the right to mint euro coins with Monegasque designs on their national side.
Monaco levies no income tax on individuals. The absence of a personal income tax in the principality has attracted to it a considerable number of wealthy "tax refugee" residents from European countries who derive the majority of their income from activity outside Monaco; celebrities such as Formula One drivers attract most of the attention, but the vast majority of them are less well-known business people.
Monte Carlo Casino

In 2000, a report by French parliamentarians Arnaud Montebourg and Vincent Peillon alleged that Monaco has lax policies with respect to money laundering, including within its famed casino, and that the government of Monaco puts political pressure on the judiciary so that alleged crimes are not properly investigated.

The Organisation for Economic Co-operation and Development (OECD) issued in 1998 a first report on the consequences of the tax havens financial systems. Monaco did not appear in the list of these territories until 2004, when OECD became indignant regarding the Monegasque situation[5] and denounced it in its last report[6] (as well as Andorra, the Principality of Liechtenstein, Liberia and the Republic of the Marshall Islands) underlining its lack of co-operation as regards financial information disclosure and availability.

In 2000, the Financial Action Task Force (FATF) underlined that Monaco suffers a great lack of adequate resources.[7] The Principality is no longer blamed in the FATF 2005 report,[8] as well as all other territories in 2006.[9]

Since 2003, the International Monetary Fund (IMF) has identified Monaco, along with 36 other territories, as a tax haven.[10]

The Council of Europe also decided to issue reports naming tax havens. Twenty-two territories, Monaco included, were thus evaluated between 1998 and 2000 on a first round. Monaco is the only territory that refuses to perform the second round, initially forecast between 2001 and 2003, whereas the 21 other territories are implementing the third and last round, planned between 2005 and 2007.