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Monaco is a sovereign city-state and microstate, located on the French Riviera in Western Europe. It is bordered by France on three sides; one side borders the Mediterranean Sea. Monaco has an area of 2.02 km2 (0.78 sq mi) and a population of 36,371; it is the second smallest and the most densely populated country in the world.<br/><br/> 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.<br/><br/> 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, splendid scenery, and upscale gambling facilities have contributed to the principality's status as a premier tourist destination and recreation center for the rich and famous. In more recent years Monaco has become a major banking center and has successfully sought to diversify its economy into services 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.

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