Monaco, country and micro state on the French Riviera in Western Europe. France borders the country on three sides while the other side borders the Mediterranean Sea. Monaco is also located close to Italy, although it has no direct border.Monaco has an area of 2.020 km2, making it the second-smallest state in the world after the Vatican. Its population was about 38,400 based on the last census of 2016. With 19,009 inhabitants per km². The highest point in the country is 161 meters above sea level.
Monaco is a principality governed under a form of constitutional monarchy, with Prince Albert II as head of state. Although Prince Albert II is a constitutional monarch, he wields immense political power. The House of Grimaldi have ruled Monaco, with brief interruptions, since 1297.The official language is French, but Monégasque, Italian, and English are widely spoken and understood.
Economic development was spurred in the late 19th century with the opening of the country's first casino, Monte Carlo, and a railway connection to Paris. Since then, Monaco's mild climate, scenery, and gambling facilities have contributed to the principality's status as a tourist destination and recreation center for the rich. In more recent years, Monaco has become a major banking center and has sought to diversify its economy into the services sector and small, high-value-added, non-polluting industries. The state has no income tax, low business taxes, and is well known for being a tax haven. It is also the host of the annual street circuit motor race Monaco Grand Prix, one of the original Grands Prix of Formula One. The principality has a club football team; AS Monaco, who have become French champions on multiple occasions.

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