MONACO

officially Principality of Monaco, French Principaut de Monaco sovereign principality located along the Mediterranean Sea in the midst of the resort area of the Cte 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. The principality has an area of only about 0.73 square mile (1.9 square km). 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, the international sports-car races, and the 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 (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. Monaco's refusal to impose income taxes on its residents and on international businesses that have established headquarters there 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. Monaco's constitution of 1911 provided for an elected National Council, but in 1959 Prince Rainier III 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. 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 services sector. A majority of Monaco's population is composed of French citizens; a smaller but significant number are Italian. Only about 15 percent of the population claims Monegasque descent. Most of the people are Roman Catholics. The official language is French. 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 Opera de Monte Carlo. During the 1920s many of the works of the famous Ballets Russes of Sergey Diaghilev were given their premiers 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. Pop. (1995 est.) 30,400.