The Principality of Monaco or Monaco , also known as Munegu or Principatu de Munegu in Monegasque , is a city state and the second-smallest country in the world, wedged in between the Mediterranean Sea and France along the French Riviera or Côte d'Azur (The Blue Coast). Consisting mostly of just the old city of Monaco and later built-up areas, it is also first among the most densely populated countries of the world.

 

 

Geography

The Principality of Monaco is the second-smallest independent state in the world, after Vatican City . It is located on the Mediterranean coast, 18 kilometres east of Nice and near the Italian border, and is surrounded on three sides by France . It consists of a narrow strip along the coast at the bottom of the foothills of the Alps and its highest point is "Le Rocher" at 140 m.

The territory is almost entirely urbanised, resulting in it being the most densely populated country of the world. Monaco is divided into five sections or quarters ( quartiers ): Monaco-Ville , the old city on a rocky promontory extending into the Mediterranean; La Condamine , the section along the port; Monte Carlo , the principal residential and resort area with the casino; Fontvieille , a newly constructed area reclaimed from the sea; and Moneghetti, on the western border with Cap d`Ail.

The principality is noted for its beautiful natural scenery and mild, sunny climate . The average minimum temperature in January and February is 8° C (47° F); in July and August the average maximum temperature is 26° C (78° F).

Economy

One of Monaco's main sources of income is tourism ; each year many are attracted to its casino and pleasant climate. 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, nonpolluting industries.

The state has no income tax for individuals. The state retains monopolies in numerous sectors, including tobacco and the postal service. The telephone network used to be owned by the state . Now Monaco Telecom is 49% owned by Cable and Wireless , 45% by the state and 6% by Compagnie Monégasque de Banque, but is still a monopoly. Living standards are high, roughly comparable to those in prosperous French metropolitan areas.

The lack of personal income tax has led to a considerable number of wealthy "tax refugee" residents from European countries, who earn the majority of their income from activity outside Monaco; celebrities like Formula One drivers attract most of the attention but the majority of them are businesspeople.

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 government of Monaco ordered reports to OECD and GAFI   that proved most of these allegations to be untrue.

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 France's: the euro . Monaco has acquired the right to mint euro coins with Monegasque designs on their national side.

Demographics

Although Macau is more densely populated, by virtue of the fact that Macau is now part of China , Monaco is now the most densely populated country in the world. Monaco is also the second smallest country in the world, beaten only by Vatican City . See List of countries by population density .

Monaco's population is unusual in that the native Monegasques are a minority in their own country. The largest proportion of residents are French nationals (47%), while Monegasque and Italian nationals represent 16% each, and the remaining 21% belong to one of the other 125 nationalities that make up Monaco's international population.

French is the only official language, but English , Italian , and the local Monegasque language (a descendant of Genoese ) are also spoken. The literacy rate is 99%. Roman Catholicism is the official religion , with freedom of other religions guaranteed by the constitution.