MONACO

Principality of Monaco

Principauté de Monaco

CAPITAL: The seat of government is at Monaco-Ville

FLAG: The national flag consists of a red horizontal stripe above a white horizontal stripe.

ANTHEM: Hymne Monégasque, beginning "Principauté Monaco, ma patrie" ("Principality of Monaco, my fatherland").

MONETARY UNIT: The euro replaced the French franc as the official currency in 2002. The euro is divided into 100 cents. There are coins in denominations of 1, 2, 5, 10, 20, and 50 cents and 1 euro and 2 euros. There are notes of 5, 10, 20, 50, 100, 200, and 500 euros. €1 = $1.25475 (or $1 = €0.79697) as of 2005. Monégasque coins also circulate; denominations are 10, 20, and 50 centimes, and 1, 2, 5, 10, and 50 francs. Fr1 = $0.184 (or $1 = Fr5.4) as of March 2006.

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; St. Dévôte, 27 January; Labor Day, 1 May; Assumption, 15 August; All Saints' Day, 1 November; National Day, 19 November; Immaculate Conception, 8 December; Christmas, 25 December. Movable religious holidays include Easter Monday, Ascension, Pentecost Monday, and Fête-Dieu.

TIME: 1 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

The second-smallest country in Europe and the world after the Vatican, Monaco is situated in the southeastern part of the French department of Alpes-Maritimes. The area, including recent reclamation, is 195 hectares (482 acres), or 1.95 sq km (0.75 sq mi). Comparatively, the area occupied by Monaco is about three times the size of the Mall in Washington, DC. The principality's length is 3.18 km (1.98 mi) e–w, and its width is 1.1 km (0.68 mi) n–s. Bounded on the n, ne, sw, and w by France and on the e and se by the Mediterranean Sea, Monaco has a total border length of 8.5 km (5.3 mi), of which 4.1 km (2.5 mi) is coastline.

TOPOGRAPHY

There are four main areas (determined more by economic activity than geographic difference): La Condamine, the business district around the port; Monte Carlo, the site of the famous casino, which is at a higher elevation; Monaco-Ville, on a rocky promontory about 60 m (200 ft) above sea level; and Fontvieille, a 22-hectare (54-acre) industrial area of La Condamine that was reclaimed by landfill in the 1960s and 1970s.

CLIMATE

Winters are mild, with temperatures rarely falling below freezing and with a January average of about 8°c (46°f). Summer heat is tempered by sea breezes; the average maximum in July and August is 26°c (79°f). Rainfall averages about 77 cm (30 in) a year, and some 300 days a year have no precipitation whatsoever.

FLORA AND FAUNA

Palms, aloes, carobs, tamarisks, mimosas, and other Mediterranean trees, shrubs, and flowers are abundant. Monaco does not have a distinctive fauna.

ENVIRONMENT

Monaco is noted for its beautiful natural scenery and mild, sunny climate. The principality has sponsored numerous marine conservation efforts. Its own environment is entirely urban. According to UN reports, Monaco's environmental circumstances are very good. The nation has consistently monitored pollution levels in its air and water to ensure the safety of its citizens. One-fifth of the nation's land area (1.95 sq km) and two marine areas are protected by environmental statutes.

The government has also instituted a system of air pollution control facilities controlled by the Environmental Service. Citizens are encouraged to use public transportation to limit the amount of gas emissions. Similar techniques have been applied to the protection of Monaco's water supply. Noise levels from industry and transportation are also monitored to ensure safe levels.

Monaco also has a sea-farming area which annually produces 800 tons of fish grown in clean water. Monaco is known for its activity in the field of marine sciences. The Oceanographic Museum, formerly directed by Jacques Cousteau, is renowned for its work and exhibits on marine life.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 26 species of marine life. Threatened species included the great white shark, the blue shark, striped dolphin, albacore tuna, and swordfish.

POPULATION

The population of Monaco in 2005 was estimated by the United Nations (UN) at 33,000, which placed it at number 188 in population among the 193 nations of the world. In 2005, approximately 22% of the population was over 65 years of age, with another 13% of the population under 15 years of age. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.6%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 44,000. The population density was 16,988 per sq km (44,000 per sq mi), making Monaco the most densely populated nation in the world.

The UN reported that 100% of the population lived in urban areas in 2005. Most of the people in Monaco are resident foreigners.

MIGRATION

There is a long waiting list for Monégasque citizenship. A 1992 law allows Monégasque women to confer citizenship on their children. In 2005, the net migration rate was an estimated 7.71 migrants per 1,000 population. In 2000, more than two-thirds of the residents were noncitizens. The government views the migration levels as satisfactory.

ETHNIC GROUPS

On the evidence of certain place names, the native Monégasques are said to be of Rhaetian stock; they make up only 16% of the population. The foreign residents are a highly cosmopolitan group: 47% are French; 16% are Italian; and various other groups comprise the remaining 21%.

LANGUAGES

French is the official language. English and Italian are also widely spoken. Many inhabitants speak the Monégasque language, which has its origins in the Genoese dialect of Italian and the Provençal language of southern France.

RELIGIONS

About 90% of the population adheres to Roman Catholicism, which is the official state religion. Freedom of worship is guaranteed by the constitution. Monaco is also part of the diocese of Gibraltar of the Church of England. There are five Catholic churches and one cathedral in the principality, two Protestant churches, and one Jewish synagogue. Though there are a small number of Muslims, there are no mosques.

TRANSPORTATION

French national roads join Monaco to Nice toward the west, and to Menton and the Italian Riviera toward the east. In 2002 there were 50 km (31 mi) of roadways, all of them paved. There is frequent bus service. The principality itself is served by motorbuses and taxicabs. In 1995 there were 17,000 passenger cars and 4,000 commercial vehicles. The southeastern network of the French national railroad system serves Monaco with about 1.7 km (1 mi) of track. Express trains on the Paris-Marseille-Nice-Ventimiglia line pass through the principality. Monaco is only 10 km (6 mi) from the international airport at Nice and is connected with it by bus and by a helicopter shuttle service. In 2001 (the latest year for which data was available), 77,800 passengers were carried on domestic and international airline flights. The harbor provides access by sea.

HISTORY

The ruling family of Monaco, the house of Grimaldi, traces its ancestry to Otto Canella (c.1070–1143), who was consul of Genoa in 1133. The family name, Grimaldi, was adapted from the Christian name of Canella's youngest son, Grimaldo. The Genoese built a fort on the site of present-day Monaco in 1215, and the Grimaldi family secured control late in the 13th century. The principality was founded in 1338 by Charles I, during whose reign Menton and Roquebrune were acquired. Claudine became sovereign upon the death of her father, Catalan, in 1457. She ceded her rights to her husband and cousin, Lambert, during whose reign, in 1489, the duke of Savoy recognized the independence of Monaco. The first Monégasque coins were minted in the 16th century. Full recognition of the princely title was obtained by Honoré II in 1641.

The last male in the Grimaldi line, Antoine I, died in 1731. His daughter Louise-Hippolyte in 1715 had married Jacques-François-Léonor de Goyon-Matignon, Count of Thorigny, who adopted the name Grimaldi and assumed the Monégasque throne. France annexed the principality in 1793, but independence was reestablished in 1814. The following year, the Treaty of Stupinigi placed Monaco under the protection of the neighboring kingdom of Sardinia. In 1848, the towns of Roquebrune and Menton, which constituted the eastern extremity of Monaco, successfully rebelled and established themselves as a republic. In 1861, a year after the Sardinian cession of Savoy and Nice to France, Roquebrune and Menton also became part of that nation.

The economic development of Monaco proceeded rapidly with the opening of the railroad in 1868 and of the gambling casino. Since that time, the principality has become world famous as a tourist and recreation center. Gambling, operated by Société des Bains de Mer, a state controlled group, recorded a 30% increase in gambling receipts in 1998. Real estate and retail sales have also registered strong growth in recent years. As of 2005 Monaco has no unemployment and provides jobs for 25,000 Italian and French commuters. More than half of government revenues, however, come from value-added tax. The rate levied by France is also in effect in Monaco. France has the highest VAT in the European Union and has come under pressure to adjust its rate downward in conformity with the rest of the EU. However, Monaco is not an EU member. Light industry and banking have also become important. Monaco joined the United Nations on 28 May 1993. Monaco is the second-smallest independent state in the world, after the Holy See, and is almost entirely urban.

Prince Rainier III, once married to the American actress Grace Kelly, led the country 1949–2005 and is often credited for the country's impressive economic growth. Tourism, banking and other types of financial services augment the economy's former dependence on gambling. Rainier died in early 2005 and in July 2005, Prince Albert II, son of Rainier and Kelly, assumed the throne. The event was somewhat overshadowed by his admission of having a 22-month-old illegitimate child. His illegitimate son will not be able to inherit the throne, although Prince Albert has acknowledged paternity and assumed his financial responsibilities.

GOVERNMENT

Monaco is a constitutional monarchy ruled, until 2002, by the hereditary princes of the Grimaldi line. Prior to constitutional changes made in 2002, if the reigning prince were to die without leaving a male heir, Monaco, according to treaty, would be incorporated into France. Because Prince Rainier III's son Albert was a 43-year-old bachelor in 2002, without male heirs, and his own health was failing, Rainier changed Monaco's constitution to allow one of his two daughters, Caroline or Stephanie, to inherit the throne and preserve the Grimaldi dynasty.

On 7 January 1911, Monaco's first constitution was granted by Prince Albert I. On 29 January 1959, Prince Rainier III temporarily suspended part of the constitution because of a disagreement over the budget with the National Council (Conseil National), and decreed that the functions of that body were to be assumed temporarily by the Council of State (Conseil d'État). In February 1961, the National Council was restored and an economic advisory council established to assist it.

A new constitution was promulgated on 17 December 1962. It provides for a unicameral National Council of 18 (now 24) members elected every five years (now 16 by majority vote and 8 by proportional representation); it shares legislative functions with the prince. Executive operations are conducted in the name of the prince by a minister of state (a French citizen) with the assistance of the Council of Government, consisting of three civil servants who are in charge of finances, public works, and internal affairs, respectively. All are appointed by the prince.

Women were enfranchised for municipal elections in 1945, and participated in elections for the National Council for the first time in February 1963. Until 2003, suffrage was exercised only by trueborn Monégasques of 21 and over. Naturalized Monégasques were granted voting rights in 2003 and the voting age was reduced to 18.

POLITICAL PARTIES

Monaco does not have political parties as such, but candidates compete on the basis of various lists. Major political groups have been the National and Democratic Union (Union Nationale et Démocratique—UND), founded in 1962; Communist Action (Action Communale—AC); Évolution Communale (EC); and the Movement of Democratic Union (MUD). In the general election of February 1998, the UND took all 18 seats in the National Council. Elections held on 9 February 2003 were the first under a new electoral law establishing 24 seats in the National Council. A unified opposition list, the Union for Monaco, composed of the National Union for the Future of Monaco and the Rally for the Monégasque Family, took 58.5% of the vote and 21 seats, to the UND's 41.5% and 3 seats. The introduction of proportionality voting enabled the UND to obtain its seats. The next election was scheduled for 2008.

LOCAL GOVERNMENT

Municipal government is conducted by an elected council ( Conseil Communal) of 15 members, headed by a mayor. The council members are elected by universal suffrage for four-year terms, and the mayor is chosen by the Communal Council. The three communes that made up Monaco before 1917—Monaco-Ville, La Condamine, and Monte Carlo—each had its own mayor from 1911 to 1917. Since that date, they have formed a single commune, together with Fontvieille.

Anne Marie Campora became mayor of Monte Carlo in 1991 succeeding Jean-Louis Médecin who had served as mayor since 1971. Georges Marsan was elected mayor of Monte Carlo in 2003.

JUDICIAL SYSTEM

A justice of the peace tries petty cases. Other courts are the court of first instance, the court of appeal, the court of revision, and the criminal court. The highest judicial authority is vested in the Supreme Court, established as part of the 1962 constitution, which interprets the constitution and sits as the highest court of appeals. It has five full members and two assistant members, named by the prince on the basis of nominations by the National Council and other government bodies.

The Code Louis, promulgated by Prince Louis I (d.1701) and based on French legal codes, was formally adopted in 1919. Under the 1962 constitution the prince delegates his authority to the judiciary to render justice in his name.

The legal guarantee of a fair and public trial for criminal defendants is respected in practice. Defendants have the right to counsel at public expense if necessary.

The constitution provides for freedom of speech, although the penal code prohibits denunciations of the royal family. The constitution differentiates between the rights of nationals and those of noncitizens; of the estimated 32,000 residents in the principality, only about 7,000 are actual Monégasques.

Monaco is a member of the United Nations and International Criminal Court.

ARMED FORCES

France assumed responsibility for the defense of Monaco as part of the Versailles Treaty in 1919. There is no army in the principality. A private guard protects the royal family, and a police force of 390 ensures public safety.

INTERNATIONAL COOPERATION

Monaco joined the United Nations on 28 May 1993 and is a member of the ECE and several nonregional specialized agencies, such as the FAO, IAEA, ICAO, IMO, ITU, UNCTAD, UNESCO, WHO, and WIPO. Monaco is also a member of the Council of Europe and the OSCE. The headquarters of the International Hydrographic Bureau (IHB) is located in Monaco.

A treaty providing in detail for mutual administrative assistance between France and Monaco became operative on 14 December 1954. Fiscal relations between the two countries are governed by a convention signed on 18 May 1963. France may station troops in Monaco and make use of Monaco's territorial waters. As a result of a customs union with France and French control of Monaco's foreign policy, the principality operates within the European Union.

In environmental cooperation, Monaco is part of the Basel Convention; Conventions on Biological Diversity, Whaling, and Air Pollution; Ramsar; CITES; the London Convention; the Montréal Protocol; MARPOL; and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Monaco depends for its livelihood chiefly on income from tourism, real estate, financial services, and small, high value-added, nonpolluting industry. A substantial part of the principality's revenue from tourist sources comes from the operations of Sea-Bathing Co. (Société des Bains de Mer—SBM), in which the government holds a 69% interest. The SBM operates the gambling casino at Monte Carlo as well as four hotels, 19 restaurants, a cabaret, and the Thermos Margins spa. Its reported profits in 2002 were about $21 million, down from close to $30 million in 2001. The government also retains monopolies in telephone services, postal services and tobacco. A 22-hectare landfill project at Fontvielle increased Monaco's total land area. Land reclamation since Prince Rainier's accession to the throne in 1949 has increased Monaco's territory by 23%.

The principality does not publish statistics on its economy and all estimates are rough. The government's annual income was estimated at $586 million for 1997, about 25% derived from tourism. Monaco also serves as a tax haven for foreign non-French residents. In 2000 the OECD published a list of "uncooperative tax havens" that included Monaco. Two years later, Monaco was still on the list, though 31 other jurisdictions had been removed by promising to take corrective actions.

Estimate data put together by the United Nations Statistic Division shows that the economy of the principality has been expanding modestly. Similar to other countries in Europe, the GDP growth rate was 2.7% in 2001, falling to 1.9% and 1.4% in 2002 and 2003 respectively, and recuperating again in 2004, at 3%. Unemployment in 1998 was estimated to be around 3.1%.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Monaco's gross domestic product (GDP) was estimated at $870.0 million. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $27,000. The annual growth rate of GDP was estimated at 0.9%. The average inflation rate in 2000 was 1.9%. It was estimated that agriculture accounted for 17% of GDP.

LABOR

There is virtually no unemployment in Monaco, as the Prince guarantees all his subjects lifetime employment. The major employer of the working population is the SBM; others work in industry or in service establishments. As of January 1994 (the latest year for which data was available), the labor force totaled 30,540, of which 4,000 worked in the industrial sector, 2,200 in construction, and 1,500 in the financial sector.

Owners and workers are each grouped in syndicates. Less than 10% of the workforce in 2005 was unionized. However, most of these union workers commute from outside the principality. About two-thirds of all employees commute from France and Italy. Unions operate independently of the government and political parties. The rights to strike, organize, and bargain collectively are protected by law, although public government workers may not strike. Labor disruptions are infrequent.

The minimum working age is 16, although special restrictions apply until the age of 18. Employers who violate the minimum age laws can be criminally prosecuted. The standard workweek is 39 hours. The minimum wage is the French minimum plus an additional 5% to adjust for travel costs for commuters. In 2005, this wage was equivalent to $9.60 per hour. This provides a family with a decent standard of living, and most workers earn more than the minimum. Health and safety standards are rigorously enforced.

AGRICULTURE

There is no agriculture.

ANIMAL HUSBANDRY

There is a dairy industry serving local needs.

FISHING

Some fishing is carried on to meet domestic requirements. The annual catch was 3,000 tons in 2003. Monaco actively engages in marine science research, and in marine life preservation. The Oceanographic Institute has been studying the effects of radiation in the ocean since 1961.

FORESTRY

There are no forests.

MINING

There is no mining.

ENERGY AND POWER

Services are provided by the Monégasque Electric Co. and Monégasque Gas Co. In 1991, standby electrical capacity totaled 10,000 kW; power is supplied by France.

INDUSTRY

The tourist industry dominates Monaco's economic life, but smallscale industries produce a variety of items for domestic use and for export, contributing 11.6% of business turnover in the mid-1990s. Most industrial plants are located on Fontvieille. About 700 small businesses make pottery and glass objects, paper and cards, jewelry, perfumes, dolls, precision instruments, plastics, chemicals and pharmaceuticals, machine tools, watches, leather items, and radio parts. There are flour mills, dairies, and chocolate and candy plants, as well as textile mills and a small shipyard. The chemicals, pharmaceuticals, and cosmetics industries consisted of 23 companies with 1,000 employees that generated approximately 45% of the total industrial turnover in the 1990s. Due to territorial constraints, Monaco's industries are forced to expand their facilities upward; some industrial buildings rise as high as 13 stories. A new construction project begun in 2001 was extending the pier used by cruise ships in the main harbor.

SCIENCE AND TECHNOLOGY

Marine sciences have been the focus of scientific inquiry in the principality for several decades. Prince Albert (1848–1922), who reigned in Monaco during the early 1900s, was well-known internationally for his work as an oceanographer, and he inaugurated the Oceanographic Museum of Monaco at Monaco-Ville in 1910. His interest led to the establishment of a focus on oceanography for scientific pursuits in Monaco. Jacques-Yves Cousteau, a famous oceanographer and activist, was involved with Monaco's activities in marine life research.

In March 1961, in its first research agreement concluded with a member government, the International Atomic Energy Agency, with the government of Monaco and the Oceanographic Institute in Monaco, undertook to research the effects of radioactivity in the sea. The Oceanographic Institute put at the disposal of the project a number of valuable facilities, including marine-biology laboratories, oceanographic vessels, specialized fishing equipment, and a wide variety of electronic and monitoring equipment.

The Scientific Center of Monaco, founded in 1960 at Monte Carlo, conducts pure and applied research in oceanology and the environment. The Museum of Prehistoric Anthropology, founded in 1902 at Monte Carlo, is concerned with prehistory and quaternary geology.

DOMESTIC TRADE

Domestic trade practices are similar to those in other towns along the French Riviera. Specialty shops deal primarily in tourist souvenirs. The SBM controls most of the amusement facilities and owns most major hotels, sporting clubs, workshops, a printing press, and various retail shops. In the mid-1990s, commerce represented 21% of the economic turnover in Monaco. There is no personal income tax. Business taxes are low, but still account for about 50% of government income. Tourism and related services account for about 25% of revenues.

Advertising media include magazines, billboards, and motion pictures. General business hours are from 8:30 am to 12:30 pm and from 2 to 6 pm, Monday–Friday. Banking hours are 9 am to 12 noon and 2 to 4 pm, Monday–Friday.

FOREIGN TRADE

Statistical information is not available. Foreign trade is included in the statistics for France, with which Monaco has a customs union. France also collects the Monegasque trade duties, and serves as the principality's link to the EU market.

In 2003, the US Department of State estimated that Monaco's exports totaled $644 million, while its imports reached $513 million.

BALANCE OF PAYMENTS

The economy is driven by such foreign currency-earning activities as banking and tourism. Since separate records are not kept of Monaco's foreign trade transactions, payment statistics are not available.

The United Nations Statistics Division has looked at the data available in France, and came up with some estimates of the exports and imports of goods and services in Monaco. Thus, exports totaled $299 million in 2004, up from $257 million in 2003 and $219 million in 2002. Imports grew from $205 million in 2002, to $246 million in 2003, and $296 million in 2004. Consequently, Monaco has, year to year, managed to keep a positive, although fragile, resource balance. In 2000, it was estimated that the country's external debt was $18 billion—an impressive figure when compared to the size of the principality.

BANKING AND SECURITIES

Foreign currency circulates within Monaco under the supervision of the French government. The most important local bank is Crédit Foncier de Monaco, founded in 1922. As of 1994, there were 45 banks operating in Monaco. In 1999, an Monaco's banking industry had approximately 310,000 accounts and employed 1,700 people. The vast majority of customers were nonresidents. Total assets in 1998 were estimated at a little over $44 billion.

There is no securities exchange.

INSURANCE

Branches of French insurance companies provide life, fire, accident, and other forms of insurance. They include: CGRM-Compagnie Générale de Réassurance de Monte Carlo; Concorde; Mutuelle de Marseille Assurances Compagnie Générale de Réassurance; and the Shipowners' Mutual Strike Insurance Association (Bermuda)—all located in Monte Carlo.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 1995 Monaco's central government took in revenues of approximately $518 million and had expenditures of $531 million. Revenues minus expenditures totaled approximately -$13 million. Total external debt was $18 billion.

TAXATION

There are no personal income taxes. Indirect taxes include the following: a value-added tax of 19.6% (as of 2005); a service tax on compensation received by Monégasque firms for services rendered in Monaco and France; excise taxes on alcoholic beverages; registration fees; and warranty duties on gold, platinum, and silver jewelry. Monaco is treated as part of France for VAT purposes.

There is a tax of up to 33.3% on the profits of businesses that obtain more than 25% of their gross profits from operations outside Monaco. Corporations whose income is derived from royalties, licenses, trademarks, or other industrial or artistic property rights are subject to this tax, whether or not the income arises outside Monaco. Qualifying new companies may be assessed at reduced rates. There are no inheritance or gift taxes between spouses or between parents and children. Between brothers and sisters, the rate is 8%; between uncles or aunts and nephews or nieces, 10%; between other relatives, 13%; and between unrelated persons, 16%.

CUSTOMS AND DUTIES

By treaty, France and Monaco form a customs union that treats the Monaco coast as part of France. The French customs service collects the duties on cargoes discharged in Monaco and pays a share to the principality.

Monaco imposes a duty on all exports to places other than France; the levy applies whether the transfer of goods is actual or fictitious.

FOREIGN INVESTMENT

Monaco permits foreign businesses to establish their headquarters in its territory; ownership and management must be made a matter of public record. Although both corporations and limited partnerships with shares are allowed, in fact only corporations are in existence. Two persons may form a corporation; the minimum capital must be fully subscribed and at least one-fourth paid up front. Foreign companies may establish subsidiaries in Monaco. Low taxes on company profits are a considerable incentive for locating in Monaco.

ECONOMIC DEVELOPMENT

The government strenuously promotes Monaco as a tourist and convention attraction. A government-financed International Convention Center offers large conference rooms, projection equipment, television and radio recording studios, telex communications, and simultaneous translation into five languages.

Two major development and reclamation projects were undertaken under Prince Rainier. These are the major landfill and reclamation project at Fontvieille, and the Monte Carlo Bord de Mer. At Fontvieille, the government financed the reclamation of 220,000 sq m (2,368,000 sq ft) of inundated shore, creating a "platform" for residential construction and new port facilities.

The Monte Carlo seashore scheme, also government-financed, involved the relocation of railroad tracks underground in order to create a man-made beach, with a boardwalk and other tourist attractions. The beach lies between two other land reclamation projects: the Larvotto, a sports complex financed by SBM, and the Portier, an entertainment complex developed by the government.

Near the Larvotto the government has reserved a zone for the construction of residential and tourist accommodations. In the 1980s, Monaco concentrated on the development of business tourism, with the construction of the Monte Carlo Convention Center and the International Conference Center.

SOCIAL DEVELOPMENT

The social insurance system provides old age, survivorship and disability pensions. It is funded through employee and employer contributions. Sickness and maternity benefits are available to all employed persons with a special program for the self-employed. Workers and their dependents are reimbursed for medical expenses including primary and specialized care, pharmaceuticals, hospitalization, transportation, dental care and appliances. Employers are required to provide workers' compensation through private insurance plans. Unemployment benefits are provided through the French system. There is also a family allowance, a prenatal allowance and an education grant.

Women have become increasingly visible in public life, and are well represented in the professions. Equal pay for equal work is prevalent, although women are underrepresented in business. Reports of violence against women are rare, and domestic abuse is a criminal offense. Human rights are respected in Monaco.

HEALTH

In 2004, Monaco had the third most physicians per capita in the world. There were an estimated 586 physicians per 100,000 people in the country, as well as 1,430 nurses, 107 dentists, and 192 pharmacists per 100,000 people. The entire population has access to safe water and sanitation.

As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 9.6 and 12.9 per 1,000 people. In 2005, the infant mortality rate was estimated at 5.43 per 1,000 live births. Life expectancy for that year was 79.57. The immunization rates for children under one year of age were as follows: diphtheria, tetanus, and whooping cough, 99%; polio, 99%; measles, 98%; and tuberculosis, 90%.

AIDS cases, although present, are not considered a major problem.

HOUSING

In 2000, there were about 18,396 housing units in the nation. About 31% of the housing stock was built 1915–61; another 26% was built 1968–81. About 21% of the housing stock was built 1982–2000. About 25% of all dwellings are owner occupied. In recent years, the government has stressed the construction of luxury housing. All new construction or alteration of existing buildings requires government approval.

EDUCATION

Education is offered in Monaco from the preschool to the secondary and technical levels and is compulsory from age 6 to 16. There are five years of primary school and seven years of secondary school. Attendance is 90%, and virtually all adults are literate. In 2003, approximately 5.1% of total government expenditure was allocated to education.

In 2001, there were about 2,000 students enrolled in primary schools and 3,000 enrolled in secondary schools. The pupil-teacher ratio at the primary level was estimated at 15 to 1 in 2000; the ratio for secondary school was 8 to 1. In 2003, private schools accounted for about 30% of primary school enrollment and 24.7% of secondary enrollment.

The University of Southern Europe was renamed the International University of Monaco in 2002. The university offers degrees in business and business administration. Students may travel abroad for higher education. The adult literacy rate has been estimated at about 99%. In 2003, public expenditure on education was estimated 5.1% of total government expenditures.

LIBRARIES AND MUSEUMS

The palace archives include the private collections of the princes of Monaco, as well as a collection of money minted since 1640. The Louis Notari Library in Monaco (1909) has a collection of over 285,000 volumes. There is a Princess Grace Irish Library in Monaco featuring 1,500 pieces of Irish folk music and personal papers of Princess Grace and Prince Rainier.

The Oceanographic Museum in Monaco-Ville, founded in 1910 by Prince Albert I and previously directed by the noted Jacques-Yves Cousteau, contains a library of 50,000 volumes, an aquarium, and displays of rare marine specimens. In addition to the museum, the Oceanographic Institute conducts research in various marine areas, including the effects of radiation on the sea and its life forms.

The Exotic Gardens include thousands of varieties of cacti and tropical plants. The National Museum in Monte Carlo was established 1972. There is a Museum of Prehistoric Anthropology in Monte Carlo and a Wax Museum of the Princes of Monaco. There is a Napoleonic Museum in Monaco-Ville. The Museum of Stamps and Coins opened in 1996 to display the private collection of Prince Rainier.

MEDIA

Postal and telegraphic services are operated by France, but Monaco issues its own postage stamps. Local telephone service is controlled by Monaco, while France is responsible for international service. In 2002, there were 33,700 mainline phones and 19,300 mobile phones in use nationwide.

Radio Monte Carlo and Télé Monte Carlo provide radio and television services and have had broadcast programs since 1954. Radio Monte Carlo's home service is broadcast in French. The system also provides overseas service in 12 foreign languages and is majority owner of the Cyprus-based Radio Monte Carlo relay station, a privately funded religious broadcasting service in 35 languages under the name Trans World Radio. As of 1999, Monaco had 3 AM and 4 FM radio stations and 5 television stations. In 1997, there were 34,000 radios and 25,000 television sets throughout the country. In 2002, there were 16,000 Internet users in the country.

Two dailies in Nice, Nice-Matin and L'Espoir, publish special editions for Monaco. International publications are readily available. The Journal de Monaco, an official publication, appears once a week, and the Tribune de Monaco is published biweekly.

Freedom of expression is legally guaranteed. However, there is a Penal Code prohibition on public denunciations of the ruling family. Otherwise, the government is said to uphold free speech and a free press.

ORGANIZATIONS

Monaco is the seat of the International Academy of Tourism, which was founded in 1951 by Prince Rainier III. The academy publishes a quarterly, Revue Technique du Tourisme, and, in several languages, an international dictionary of tourism.

The International Hydrographic Bureau, which sponsors international conferences in its field, has its headquarters in Monaco. The following international organizations also have their headquarters in Monaco: International Commission for Scientific Exploration of the Mediterranean Sea, International Center for Studies of Human Problems, and the International Commission for Legal-Medical Problems.

National youth organizations include the Association of Scouts and Guides of Monaco, the Princess Stephanie Youth Center, and Catholic Youth of Monaco. There are several sports associations in Monaco; the country is home to the International Association of Athletics Federations.

Other organizations include the Monégasque Red Cross, Caritas, the St. Vincent de Paul Society, the Society of Monégasque Traditions, the Commission for the Monégasque language (established 1985), and the Union of French Interests.

TOURISM, TRAVEL, AND RECREATION

Monaco has been famous for attracting wealth and titled tourists since its gambling casino was established at Monte Carlo in 1856. In 2005, gambling accounted for almost 25% of the annual revenue. Among the many attractions are the Louis II Stadium, the many museums and gardens, and the beach. The Monte Carlo opera house was the site of many world premiere performances, including Massenet's Le Jongleur de Notre Dame (1902) and Don Quichotte (1910), Fauré's Pénélope (1913), and Ravel's L'Enfant et les sortilèges (1925). It was also the home of Serge Diaghilev's Russian Ballet (founded in 1911), later known as the Ballet Russe de Monte Carlo.

The principality has excellent sports facilities. The Monte Carlo Rally, a world-famous driving championship, ends with a finish line in Monaco.

No restriction is placed on the entrance of French nationals into Monaco. A valid passport is required for citizens of other countries who visit. Visas are not required for tourist/business stays of up to 90 days.

About 235,000 visitors arrived in Monaco in 2003, about 25% of whom came from Italy. Hotel rooms numbered 2,191 in 2002 with an occupancy rate of 63%. The average length of stay that year was three nights.

In 2005, the US Department of State estimated the cost of staying in Monaco at $247 per day.

FAMOUS MONEGASQUES

Prince Albert (1848–1922), who reigned from 1889 to 1922, was famous as an oceanographer. In 1956, his great-grandson Rainier III (1923–2005), reigning monarch from 1949–2005, married Grace Patricia Kelly (1929–82), a US motion picture actress, whose death on 14 September 1982 following an automobile accident was mourned throughout Monaco. Their son, Prince Albert (b.1958) became Prince Albert II upon his father's death; Princess Caroline (b.1957) and Princess Stéphanie (b.1965) are the daughters of Rainier III and Grace.

DEPENDENCIES

Monaco has no territories or colonies.

BIBLIOGRAPHY

Annesley, Claire (ed.). A Political and Economic Dictionary of Western Europe. Philadelphia: Routledge/Taylor and Francis, 2005.

Duursma, Jorri. Self-Determination, Statehood, and International Relations of Micro-States: The Cases of Liechtenstein, San Marino, Monaco, Andorra, and the Vatican City. New York: Cambridge University Press, 1996.

Taraborrelli, J. Randy. Once Upon a Time: Behind the Fairy Tale of Princess Grace and Prince Rainier. New York: Warner Books, 2003.

Monaco

Compiled from the June 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Principality of Monaco

PROFILE

Geography

Area: 1.95 sq. km. (0.8 sq. mi); about the size of New York City's Central Park.

Cities: Capital—Monaco, pop. 32,409 (July 2005 est.).

Terrain: Hilly.

Climate: Mediterranean with mild, wet winters and hot, dry summers.

People

Nationality: Noun and adjective—Monegasque.

Population: (July 2006 est.) 32,543.

Annual growth rate: (2007 est.) 0.386%.

Ethnic groups: (2007) French 47%, Italian 16%, Monegasque 16%, other 21%.

Religions: Roman Catholic 90%, other 10%.

Languages: French (official), English, Italian, and Monegasque.

Education: Years compulsory—10, ages 6-16. Attendance—99%. Literacy—99%.

Health: (2007 est.) Infant mortality—5.27 deaths/1,000 live births. Life expectancy—75.99 yrs. male; 83.85 yrs. female. Birth rate (2007 est.)—9.12 births/1,000 population. Death rate (2006 est.)—12.92 deaths/ 1,000 population.

Government

Type: Constitutional monarchy.

Constitution: December 17, 1962 (amended in April 2002).

Government branches: Executive—Prince Albert II (chief of state), Minister of State Jean-Paul Proust (head of government), Council of Government (cabinet under authority of the monarch). Legislative—unicameral National Council (24 members). Judicial—Court of First Instance, Court of Appeal, High Court of Appeal, Criminal Court, Supreme Court.

Political subdivisions: Four quarters (quartiers)—Monaco-Ville, La Condamine, Monte-Carlo, Fontvieille.

Political parties: Union pour Monaco (UPM), National and Democratic Union (UND), Parti Monegasque (PM).

Suffrage: Universal adult at age 18.

Economy

GDP: Monaco does not publish economic figures such as gross domestic product, though estimates placed purchasing power parity GDP at $976.3 million in 2006.

Avg. annual growth rate: (2003 est.) 1.89%.

Per capita purchasing power

parity GDP: (2006 est.) $30,000.

Work force: (2003, 41,708) Private sector—37,949. Public sector—3,759. Services—83.5%. Banking—23.43%. Tourism and hotel—11.64%. Retail—4.92%. Construction and public works—32.02%. Industry—6.98%.

Agriculture: None.

Industry: Types—tourism, construction, chemicals, food products, plastics, precision instruments, cosmetics, ceramics.

Trade: Imports (2005)—$916.1 million. Exports (2005)—$716.3 million. Note: full customs integration with France, which collects and rebates Monegasque trade duties; also participates in EU market system through customs union with France.

Currency: Monaco, along with France and the other 11 members of the European Monetary Union (EMU), adopted the euro ( ) as its official currency on January 1, 2002. As in other EMU states, euros minted in Monaco have special Monegasque features on one side of the coin.

GEOGRAPHY

The Principality of Monaco is the second-smallest independent state in the world, after the Holy See (Vatican City). It is located on the Mediterranean coast, 18 kilometers (11 mi.) east of Nice, France, and is surrounded on three sides by France. Monaco is divided into four sections: 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; and Fontvieille, a newly constructed area reclaimed from the sea.

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).

PEOPLE

In July 2006, Monaco's population was estimated at 32,543, with an estimated average growth rate for 2007 of 0.386%.

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

HISTORY

Founded in 1215 as a colony of Genoa, Monaco has been ruled by the House of Grimaldi since 1297, except when under French control from 1789 to 1814. Designated as a protectorate of Sardinia from 1815 until 1860 by the Treaty of Vienna, Monaco's sovereignty was recognized by the Franco-Monegasque Treaty of 1861. The Prince of Monaco was an absolute ruler until a constitution was promulgated in 1911.

In July 1918, a treaty was signed providing for limited French protection over Monaco. The treaty, formally noted in the Treaty of Versailles, established that Monegasque policy would be aligned with French political, military, and economic interests.

A new constitution, proclaimed in 1962, abolished capital punishment, provided for female suffrage, and established a Supreme Court to guarantee fundamental liberties.

In 1993, Monaco became an official member of the United Nations with full voting rights. It joined the Council of Europe in 2004.

Three months after the death of his father, Prince Rainier III, on April 6, Prince Albert II formally acceded to the throne on July 12, 2005.

GOVERNMENT AND POLITICAL CONDITIONS

Monaco has been governed as a constitutional monarchy since 1911, with the Prince as chief of state. The executive branch consists of a Minister of State (head of government), who presides over a five-member Council of Government (cabinet). The Minister of State is responsible for foreign relations. As the Prince's representative, the Minister of State also directs the executive services, commands the police, and presides (with voting powers) over the Council of Government. The five members of the Council are respectively responsible for internal affairs, external affairs, the environment, finance and economy, and social affairs and health.

Under the 1962 constitution, the Prince shares his power with the unicameral National Council. Sixteen of the 24 members of this legislative body are elected by list majority system, and 8 by proportional representation to serve 5-year terms. The elections were last held on February 9, 2003, and will be held next in February 2008. If the Prince dissolves the National Council, new elections must be held within 3 months. Usually meeting twice annually, the Council votes on the budget and endorses laws proposed by the Prince.

Ordinances passed by the National Council are debated in the Council of Government, as are the ministerial decrees signed by the Minister of State. Once approved, the ordinances must be submitted to the Prince within 80 days for his signature, which makes them legally enforceable. If he does not express opposition within 10 days of submission, they become valid. Judicial power is invested in the Prince, who delegates judicial procedures to the various courts, which dispense justice in his name. The independence of the judges is guaranteed by the constitution. The Supreme Court is composed of five chief members and two assistant judges named by the Prince on the basis of nominations by the National Council and other government bodies. The Supreme Court is the highest court for judicial appeals and also interprets the constitution when necessary. Monaco's legal system, closely related to that of France, is patterned after the Napoleonic Code.

The principality's local affairs (the administration of the four quarters of Monaco-Ville, La Condamine, Monte Carlo, and Fontvieille) are directed by the Communal Council, which consists of 15 elected members and is presided over by the Mayor.

Principal Government Officials

Last Updated: 2/1/2008

Chief of State: ALBERT II, Prince

Min. of State: Jean-Paul PROUST

Min. of Economy & Finance: Franck BIANCHERI

Min. of Environmental Affairs & Town Planning: Gilles TONELLI

Min. of External Relations: Rainier IMPERTI

Min. of Social Affairs & Health: Denis RAVERA

Ambassador to the US: Gilles NOGHES

Permanent Representative to the UN, New York: Gilles NOGHES

ECONOMY

Monaco, located on the Mediterranean coast, has an economy primarily geared toward finance, commerce, and tourism. Low taxes have drawn many foreign companies to Monaco; the companies’ production accounts for around 50% of the 593 million annual government income (2002). The enterprises pay a 33.33% tax only if more than 25% of their revenue is generated abroad. Ever since Monaco's famed casino opened in 1856, the tourism industry has been booming. It currently accounts for close to 25% of the annual revenue.

Customs, postal services, telecommunications, and banking in Monaco are governed by an economic and customs union with France. The official currency is the euro.

Though official economic statistics are not published, 2006 estimates placed the gross domestic product at $976.3 million and the per capita income at $30,000. Monaco does not publish the figures for unemployment, but in 2005 the rate was estimated to be at 0%.

Monaco is noted for its activity in the field of marine sciences. Its Oceanographic Museum, formerly directed by Jacques Cousteau, is one of the most renowned institutions of its kind in the world. Monaco imports and exports products and services from all over the world. There is no commercial agriculture in Monaco.

FOREIGN RELATIONS

Monaco actively participates in the United Nations, which it joined in 1993. Monaco joined the Council of Europe on October 4, 2004. Monaco also is a member of many international and intergovernmental organizations, including Interpol, the UN Educational, Scientific, and Cultural Organization (UNESCO), and the World Health Organization (WHO). The International Hydrographic Bureau (IHB) is headquartered in Monaco.

The Principality of Monaco is a sovereign and independent state, linked closely to France by the Treaty of July 1918, which was formally noted in Article 436 of the Treaty of Versailles of 1919. The foreign policy of Monaco is one illustration of this accord: France has agreed to defend the independence and sovereignty of Monaco, while the Monegasque Government has agreed to exercise its sovereign rights in conformity with French

interests. Since then, the relations between the sovereign states of France and Monaco have been further defined in the Treaty of 1945 and the Agreement of 1963.

In 2002, Monaco renegotiated its 1918 treaty with France. In 2005, it was ratified by both parties and entered into force. The terms of the treaty:

• Upgrade France's representation in Monaco from Consulate General to that of an embassy;
• Permit, for the first time, other countries to accredit ambassadors to Monaco; and
• Formally recognize the succession scheme set out in the 1962 Constitution, which extends eligibility to the Prince's daughters and other family members.

Although not a member of the European Union (EU), Monaco is closely associated with the economic apparatus of the EU through its customs union with France and its reliance upon the euro as its official currency.

Monaco has 10 diplomatic missions in Western Europe and permanent representation at the United Nations and the Council of Europe. It maintains honorary consulates in 106 cities in 45 countries. Seventy-six countries have consulates general, consulates, or honorary consulates in or accredited to Monaco.

U.S.-MONACO RELATIONS

The United States and Monaco enjoy excellent relations, which both countries seek to maintain and strengthen. From 1956 until her death in 1982, the American-born Grace Kelly was married to Prince Rainier III, Prince Albert's father. The United States does not yet have a diplomatic mission located in Monaco.

In December 2006, the United States and Monaco upgraded from consular to full diplomatic relations. Shortly after, Ambassador Craig Stapleton (France) was accredited to Monaco, and Ambassador Gilles Noghes became the first Monegasque ambassador to the United States.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

PARIS (E) 2, avenue Gabriel, 75382 Paris Cedex 08, APO/FPO PSC 116, APO/AE 09777-5000, (33) (1) 4312-2222, Fax 33-1-4266-9783, INMAR-SAT Tel 011-8816-4142-8701, 011-8816-4142-8702, 011-8816 -4142-8703, Workweek: Mon--Fri 9 a.m-6 p.m., Website: http://paris.usembassy.gov.

TRAVEL

Consular Information Sheet—France

October 11, 2007

Country Description: France is a developed and stable democracy with a modern economy. Monaco is a developed constitutional monarchy. Tourist facilities are widely available.

Entry Requirements: A passport is required to enter France and Monaco. A visa is not required for tourist/business stays up to 90 days in France and Monaco. Anyone intending to stay more than 90 days must obtain the appropriate visa issued by one of the French Consulates in the U.S., prior to departure for France. This also applies to anyone considering marriage in France. The 90-day period begins when you enter any of the Schengen group of countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, and Sweden.

For further information concerning entry requirements for France, travelers may contact the Embassy of France at 4101 Reservoir Road NW, Washington, DC 20007, tel. (202) 944-6000, Email: [email protected], or the French Consulates General in Atlanta, Boston, Chicago, Houston, Los Angeles, Miami, New Orleans, New York, or San Francisco. For further information on entry requirements to Monaco, travelers may contact the Embassy of the Principality of Monaco. 2314 Wyoming Avenue, N.W. Washington, D.C. 20008, Tel: 202-234-1530, Email: [email protected], or the Consulate General of Monaco, 565 Fifth Avenue—23rd floor, New York, NY 10017, Tel: 212-286-0500, Email: [email protected] For more information visit the Embassy of France web site at www.consulfrance-washington.org or the Embassy of the Principality of Monaco web site at http://www.monaco-usa.org for the most current visa information.

Note: Although European Union regulations require that non-EU visitors obtain a stamp in their passport upon initial entry to a Schengen country; many borders are not staffed with officers carrying out this function. If an American citizen wishes to ensure that his or her entry is properly documented, it may be necessary to request a stamp at an official point of entry. Under local law, travelers without a stamp in their passport may be questioned and asked to document the length of their stay in Schengen countries at the time of departure or at any other point during their visit, and could face possible fines or other repercussions if unable to do so.

Safety and Security: The Government of France maintains a threat rating system known locally as “Vigipirate” it is similar to the U.S. Homeland Security Advisory System. Under this plan, in times of heightened security concerns, the government augments police with armed forces and increases visibility at airports, train and metro stations, and other high-profile locations such as schools, major tourist attractions, and government installations. Over the last year, there have been numerous arrests of suspected Islamic militants involved in various terrorist plots. As with other countries in the Schengen area, France maintains open borders with its European neighbors, allowing the possibility of terrorist groups entering/exiting the country with anonymity.

In the past, political assassinations and bombings have occurred in France. The National Front for the Liberation of Corsica (FLNC), as part of its decades-long bombing campaign on the island of Corsica, continues to conduct limited operations in the south of France and on Corsica. In the 1990s there was a wave of bombings and attacks in Paris carried out by Algerian terrorists. Today, numerous radical Islamic groups claim sympathizers within France's large immigrant community, as evidenced by arrests over the last few years.

Although Americans have not been specifically targeted in terrorist attacks in France within the past few years, travelers should maintain vigilance. Immediately report unattended packages observed in public places or any other suspicious activities. French law enforcement authorities are proactive and will respond immediately. If there is a security incident or suspicious package, do not linger in the area to observe.

Although violent civil disorder is rare in France, in the past, student demonstrations, labor protests, and other demonstrations have developed into violent confrontations between demonstrators and police. This was the case in March/April 2006, when a series of large demonstrations took place in central Paris. Several weeks of unrest occurred in the suburbs of Paris, as well as in other French cities and towns, in November 2005. Neither of these periods of disorder exhibited any anti-U.S. sentiment, but it is important to remember that passersby can always suffer collateral damage should demonstrations devolve into violence. Americans are advised to avoid street demonstrations, particularly if riot police are on the scene.

For the latest security information, Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affair's Internet site at http://travel.state.gov, where the current Travel Warnings and Travel Alerts, including the Worldwide Caution Travel Alert, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or, for callers outside the U.S. and Canada, a regular toll line at 1-202-501-4444.

Crime: While both France and Monaco have relatively low rates of violent crime, a limited number of neighborhoods in the larger French cities merit extra caution. Additionally, although the overall crime rate has fallen slightly in recent years, the violent crime rate has increased. Thieves commonly target vehicles with non-local license plates, and work in or near tourist attractions such as museums, monuments, restaurants, hotels, beaches, trains, train stations, airports, and subways. Americans in France and Monaco should be particularly alert to pickpockets in train stations and subways. Photocopies of travel documents and credit cards should be kept separate from the originals, and key telephone numbers maintained to contact banks if credit cards are stolen or lost.

Although thieves may operate anywhere, the U.S. Embassy in Paris receives frequent reports of theft from several areas in particular:

Paris: The Paris Police Prefecture has published a pamphlet entitled “Feeling Safe in Paris,” which provides practical advice and useful telephone numbers for visitors and can be accessed at http://www.prefecture-police-paris.interieur.gouv.fr/feeling_safe_in_paris.htm. Thieves operate on the rail link (RER) from Charles de Gaulle Airport to downtown Paris, where they prey on jetlagged, luggage-burdened tourists. In one common ruse, a thief distracts a tourist with a question about directions, while an accomplice steals a momentarily unguarded backpack, briefcase, or purse. Thieves also time their thefts to coincide with train stops so they may quickly exit the car just before the automatic doors close. Travelers may wish to consider taking an airport shuttle bus or taxi from the airport into the city. Reports of stolen purses, briefcases, and carryon bags at Charles de Gaulle Airport have been on the rise. Travelers should monitor their bags at all times and never leave them unattended. As thieves commonly target laptop bags, travelers should avoid carrying passports and other valuables in computer bags. One common method involves timing the theft so that while the traveler is busy at the ticket counter, the traveler's shoulder bag is picked up after being placed on the floor. Also be aware that unattended bags are subject to destruction by airport security.

There have been reports of robberies in which thieves on motorcycles reach into a moving car by opening the car door or accessing an open window or even breaking the window to steal purses and other bags visible inside. The same technique is used against pedestrians walking with purses/ bags/cameras slung over their street-side shoulder. Those traveling by car should remember to keep the windows up and the doors locked and items that may be attractive to thieves out of sight. Pedestrians are encouraged to walk as far from the street side as possible, and to keep bags slung across the body, with the bag hanging away from the street.

Many thefts occur on the Number One Subway Line, which runs through the center of Paris by many major tourist attractions (including the Grand Arch at La Defense, the Arc de Triomphe, the Champs Elysees, Place de la Concorde, the Louvre, and the Bastille). Pickpockets are especially active on this metro line during the summer months and use a number of techniques. The most common, and unfortunately the most successful, is the simple “bump and snatch,” where an individual bumps into the tourist while at the same time reaching into the pockets/purse/ bag. Visitors should be particularly careful when metro doors are closing, as this is a favored moment for the less-sophisticated pickpockets to simply grab valuables and jump through the closing doors, leaving the victim helplessly watching as the thief flees. Visitors are encouraged NOT to aggressively confront thieves, who often operate in groups and may become violent if cornered. Simply drawing attention to an attempted theft will most likely stop the operation and cause a tactical withdrawal by the thief.

Gare du Nord train station, where the express trains from the airport arrive in Paris, is also a high-risk area for pocket-picking and theft. Travelers should also beware of thefts that occur on both overnight and day trains, especially on trains originating in Spain, Italy, and Belgium. These involve the theft of valuables while passengers are sleeping, or when the bags are left unattended.

In hotels, thieves target lobbies and breakfast rooms, and take advantage of a minute of inattention to snatch jackets, purses, and backpacks. While many hotels do have safety latches that allow guests to secure their rooms from inside, this feature is not as universal as it is in the United States. If no chain or latch is present, a chair placed up against the door and wedged under the handle is usually an effective obstacle to surreptitious entry during the night. There are, however, reports of thieves breaking into hotel rooms on lower floors through open windows while the occupants are sleeping. To guard against this, hotel room windows should be kept locked at all times. Whenever possible, valuables should be kept in the hotel safe.

Many Americans have reported thefts occurring in restaurants and nightclubs/bars, where purses are stolen from the back of a chair or from under the table. Again, keep valuables on your person and do not leave them unattended or out of sight. Thefts also occur at the major department stores such as Galeries Lafayette and Printemps where tourists often place wallets, passports, and credit cards on cashier counters during transactions.

Automatic Teller Machines (ATMs) are very common in France and provide ready access to cash, allowing travelers to carry as much money as they need for each day. The rates are competitive with local exchange bureaus, and an ATM transaction is easier than the cashing of travelers’ checks. However, crime involving ATMs is increasing. Travelers should not use ATMs in isolated, unlit areas or where loiterers are present. Travelers should be especially aware of persons standing close enough to see the Personal Identification Number (PIN) being entered into the machine. Thieves often conduct successful scams by simply observing the PIN as it is entered and then stealing the card from the user in some other location. If the card becomes stuck, travelers should immediately report it to the bank where the machine is located.

Large criminal operations in Paris involving the use of ATMs that “eat” the user's ATM card have been reported. This most often happens during a weekend or at night when the bank is closed. The frustrated traveler often walks away after unsuccessfully trying to retrieve the card, with plans to return the first day the bank is open. In such cases, a criminal gang has modified the machine using an add-on device equipped with a microchip that records the user's PIN when it is typed in, and also prevents the card from being ejected.

The criminal retrieves the card from the device once the visitor departs, downloads the recorded PIN and then goes to other ATMs and withdraws as much cash as possible. ATM users are strongly encouraged to carry a 24-hour emergency number for their ATM card and bank account that will enable the immediate prevention of withdrawals from the account if difficulties occur.

Pigalle is the “adult entertainment district” of Paris. Many entertainment establishments in this area engage in aggressive marketing and charge well beyond the normal rate for drinks. There have been reports of threats of violence to coerce patrons into paying exorbitant beverage tabs. There have also been several violent confrontations between rival gangs in the district, including one in August 2007 one block from the famous Moulin Rouge cabaret. Visitors are encouraged to avoid this area unless touring with a well-organized and reputable tour company.

Normandy: There has been an increase in break-ins and thefts from vehicles in the parking lots at the Normandy beaches and American cemeteries. Valuables should not be left unattended in a car, and locking valuables in the trunk should not be considered a safeguard. Thieves often pry open car trunks to steal bags inside.

Southern France: Thefts from cars with unlocked doors or open windows stopped at red lights or caught in slow traffic are very common, particularly along the Riviera of the Nice-Antibes-Cannes area, and in Marseille. Car doors should be kept locked and windows raised at all times to prevent incidents of “snatch-and-grab” thefts. In this type of scenario, the thief is usually a passenger on a motorcycle. Break-ins of parked cars are also fairly common. Valuables should not be left in the car, not even in the trunk, when the vehicle is unattended.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed. Under French law, compensation is available to victims of crime committed on French soil under certain circumstances.

Medical Facilities and Health Information: Medical care comparable to that found in the United States is widely available. Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's web site at http://wwwn.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning France and Monaco is provided for general reference only, and it may not be totally accurate in a particular location or circumstance.

Roads in France are generally comparable to those in the United States, but traffic engineering and driving habits pose special dangers. Usually, lane markings and sign placements are not as clear as in the United States. Drivers should be prepared to make last-minute maneuvers, as most French drivers do. The French typically drive more aggressively and faster than Americans, and tend to exceed posted speed limits. Right-of-way rules in France may differ from those in the United States. Drivers entering intersections from the right have priority over those on the left (unless specifically indicated otherwise), even when entering relatively large boulevards from small side streets. Many intersections in France are being replaced by traffic circles, where the right-of-way belongs to drivers in the circle.

On major highways, service stations are situated at least every 25 miles. Service stations are not as plentiful on secondary roads in France as they are in the United States. Paris, the capital and largest city in France, has an extensive and efficient public transportation system. The interconnecting system of buses, subways, and commuter rails serves more than 4 million people a day with a safety record comparable to or better than the systems of major American cities. Similar transportation systems are found in all major French cities. Between cities, France is served by an equally extensive rail service, which is reliable. High-speed rail links connect the major cities in France. Many cities are also served by frequent air service.

Visit the web site of the French and Monegasque National Tourist Office at http://franceguide.com. The website contains specific information concerning French and Monegasque driver's permits, vehicle inspection, road tax, and mandatory insurance.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of France's Civil Aviation Authority as being in compliance with International Civil Aviation Organization (ICAO) aviation safety standards for oversight of France's air carrier operations. For more information, travelers may visit the FAA's web site at http://www.faa.gov.

Special Circumstances: French and Monegasque customs authorities enforce strict regulations concerning temporary importation into or export from France of items such as firearms, antiquities, medications, business equipment, sales samples, and other items. It is advisable to contact the Embassy of France in Washington, D.C., one of France's consulates in the United States, or the Consulate General of Monaco in New York for specific information regarding customs requirements.

The emergency numbers in France for police, fire, and medical assistance are as follows: 17 (police emergency), 18 (fire department) and 15 (emergency medical/paramedic team/ ambulance). In Monaco, the numbers are 17 (police emergency), 18 (fire department) and 9375-2525 (medical/ paramedic team/ambulance).

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating French or Monegasque laws, even unknowingly, may be expelled, arrested, or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in France or Monaco are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy and Consulate Locations: Americans living or traveling in France or Monaco are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration web site, and to obtain updated information on travel and security within France and Monaco.

Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in cases of emergency.

The Consular Section of the U.S. Embassy in Paris is located at 4 avenue Gabriel, 75008 Paris (Place de La Concorde, Metro Stop Concorde), tel. 011-33-1-43-12-22-22 or (in France) 01-43-12-22-22; fax: 011-33-1-42-96-28-39 for Passport Services, or fax 011-33-1-42-61-61-40 for Special Consular Services (emergencies). Further information can be obtained at the U.S. Embassy's web site at http://france.usembassy.gov.

The Consulate General in Marseille is located at Place Varian Fry, 13006 Marseille, tel. 011-33-4-91-54-92-00, or (in France) 04-91-54-92-00; fax 011-33-4-91-55-55-56-95 or 011-33-4-91-55-09-47. Web site: http://france.usembassy.gov/marseille/default.htm

The Consulate General in Strasbourg is located at 15 Avenue d’Alsace, 67082 Strasbourg, tel. 011-33-3-88-35-31-04 or (in France) 03-88-35-31-04; fax 011-33-3-88-24-06-95.

The Consulate General in Strasbourg does not produce passports on the premises. American citizens in this area whose passports are lost or stolen and have urgent travel needs should contact the U.S. Embassy in Paris. Web site: www.ambusa.fr/strasbourg

The Consular Agency in Nice is located at 7, Avenue Gustave V, 3rd floor, 06000 Nice, tel. 011-33-4-93-88-89-55 or (in France) 04-93-88-89-55; fax 011-33-4-93-87-07-38. Web site: http://france.usembassy.gov/marseille/nic.htm.

The U.S. Government also has consular representation in Bordeaux, Lille, Lyon, Rennes, and Toulouse that provide some services to Americans, by appointment only.

The post in Bordeaux is located at 10 place de la Bourse, 33076 Bordeaux (entry on rue Fernand Philippart); tel. 011-33-5-56-48-63-85 or 05-56-48-63-85 in France; fax: 011-33-5-56-51-61-97. Web site: http://france.usembassy.gov

The post in Lille is located at 107, rue Royale, 59000 Lille; tel. 011-33-3-28-04-25-00 or 03-28-04-25-00 in France; fax: 011-33-3-20-74-88-23. Website: http://france.usembassy.gov/lille/default.htm.

The post in Lyon is located at 1, quai Jules Courmont, 69002 Lyon; tel. 011-33-4-78-38-33-03 or 04-78-38-33-03 in France; fax: 011-33-4-72-41-71-81. Website: http://france.usembassy.gov/lyon/default.htm

The post in Rennes is located at 30, quai Duguay Trouin, 35000 Rennes; tel. 011-33-2-23-44-09-60 or 02-23-44-09-60 in France; fax: 011-33-2-99-35-00-92. Website: http://france.usembassy.gov/rennes/default.htm

The post in Toulouse is located at 25, Allée Jean Jaures, 31000 Toulouse; tel. 011-33-5-34-41-36-50 or 05-34-41-36-50 in France; fax: 011-33-5-34-41-16-19. Website: http://france.usembassy.gov/toulouse/default.htm

Monaco

Compiled from the December 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Principality of Monaco

PROFILE

GEOGRAPHY

PEOPLE

HISTORY

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

FOREIGN RELATIONS

U.S.–MONACO RELATIONS

TRAVEL

PROFILE

Geography

Area: 1.95 sq. km. (0.8 sq. mi); about the size of New York City’s Central Park.

Cities: Capital—Monaco, pop. 32,409 (July 2005 est.).

Terrain: Hilly.

Climate: Mediterranean.

People

Nationality: Noun and adjective—Monegasque.

Population: 32,543 (July 2006 est.).

Annual growth rate: (2006 est.) 0.4%.

Ethnic groups: (2006) French 47%, Italian 16%, Monegasque 16%, other 21%.

Religions: Roman Catholic 90%

Languages: French (official), English, Italian, and Monegasque.

Education: Years compulsory—10, ages 6-16. Attendance—99%. Literacy—99%.

Health: (2005 est.) Infant mortality—5.43/1,000. Life expectancy—75.85 yrs. male; 83.74 yrs. female. Birth rate (2006 est.)—9.19 births/1,000 population. Death rate (2006 est.)—12.91 deaths/1,000 population.

Work force: (2003, 41,708) Private sector—37,949. Public sector—3,759. Services—83.5%. Banking—23.43%. Tourism and hotel—11.64%. Retail—4.92%. Construction and public works—32.02%. Industry—6.98%.

Goverment

Type: Constitutional monarchy.

Constitution: December 17, 1962 (amended in April 2002).

Government branches: Executive—Prince Albert II (chief of state). Legislative—National Council (24 members). Judicial—Court of First Instance, Court of Appeal, High Court of Appeal, Criminal Court, Supreme Court.

Political subdivisions: Four quarters (quartiers)—Monaco-Ville, La Condamine, Monte-Carlo, Fontvieille.

Political parties: Union pour Monaco (UPM), National and Democratic Union (UND), Parti Monégasque (PM).

Suffrage: Universal adult at age 18.

Economy

GDP: Monaco does not publish economic figures such as gross domestic product, though estimates placed purchasing power parity GDP at $870 million in 2000.

Avg. annual growth rate: (2003 est.) 1.89%.

Per capita purchasing power parity GDP: (2000 est.) $27,000.

Agriculture: None.

Industry: Types—tourism, construction, chemicals, food products, plastics, precision instruments, cosmetics, ceramics.

Trade: Imports (2003)—about $513 million (416,348,096 euros). Exports (2003)—about $644 million (522,976,329 euros).

Currency: Monaco, along with France and the other 11 members of the European Monetary Union (EMU), adopted the euro as its official currency on January 1, 2002. As in other EMU states, Euros minted in Monaco have special Monegasque features on one side of the coin.

GEOGRAPHY

The Principality of Monaco is the second-smallest independent state in the world, after the Holy See (Vatican City). It is located on the Mediterranean coast, 18 kilometers (11 mi.) east of Nice, France, and is surrounded on three sides by France. Monaco is divided into four sections: 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; and Fontvieille, a newly constructed area reclaimed from the sea.

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).

PEOPLE

In July 2005, Monaco’s population was estimated at 32,409, with an estimated average growth rate of 0.43%.

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

HISTORY

Founded in 1215 as a colony of Genoa, Monaco has been ruled by the House of Grimaldi since 1297, except when under French control from 1789 to 1814. Designated as a protectorate of Sardinia from 1815 until 1860 by the Treaty of Vienna, Monaco’s sovereignty was recognized by the Franco-Monegasque Treaty of 1861. The Prince of Monaco was an absolute ruler until a constitution was promulgated in 1911.

In July 1918, a treaty was signed providing for limited French protection over Monaco. The treaty, formally noted in the Treaty of Versailles, established that Monegasque policy would be aligned with French political, military, and economic interests.

A new constitution, proclaimed in 1962, abolished capital punishment, provided for female suffrage, and established a Supreme Court to guarantee fundamental liberties.

In 1993, Monaco became an official member of the United Nations with full voting rights. It joined the Council of Europe in 2004.

Three months after the death of his father, Prince Rainier III, on April 6, Prince Albert II formally acceded to the throne on July 12, 2005.

GOVERNMENT AND POLITICAL CONDITIONS

Monaco has been governed as a constitutional monarchy since 1911, with the Prince as chief of state. The executive branch consists of a Minister of State (head of government), who presides over a five-member Council of Government (cabinet). The Minister of State is responsible for foreign relations. As the Prince’s representative, the Minister of State also directs the executive services, commands the police, and presides (with voting powers) over the Council of Government. The five members of the Council are respectively responsible for internal affairs, external affairs, the environment, finance and economy, and social affairs and health.

Under the 1962 constitution, the Prince shares his power with the unicameral National Council. Sixteen of the 24 members of this legislative body are elected by list majority system, and 8 by proportional representation to serve 5-year terms. The elections were last held on February 9, 2003, and will be held next in February 2008. If the Prince dissolves the National Council, new elections must be held within 3 months. Usually meeting twice annually, the Council votes on the budget and endorses laws proposed by the Prince.

Ordinances passed by the National Council are debated in the Council of Government, as are the ministerial decrees signed by the Minister of State. Once approved, the ordinances must be submitted to the Prince within 80 days for his signature, which makes them legally enforceable. If he does not express opposition within 10 days of submission, they become valid.

Judicial power is invested in the Prince, who delegates judicial procedures to the various courts, which dispense justice in his name. The independence of the judges is guaranteed by the constitution. The Supreme Court is composed of five chief members and two assistant judges named by the Prince on the basis of nominations by the National Council and other government bodies. The Supreme Court is the highest court for judicial appeals and also interprets the constitution when necessary. Monaco’s legal system, closely related to that of France, is patterned after the Napoleonic Code.

The principality’s local affairs (the administration of the four quarters of Monaco-Ville, La Condamine, Monte Carlo, and Fontvieille) are directed by the Communal Council, which consists of 15 elected members and is presided over by the Mayor.

Principal Government Officials

Last Updated: 8/5/2005

Chief of State: ALBERT II, Prince

Min. of State: Jean-Paul PROUST

Min. of Economy & Finance: Franck BIANCHERI

Min. of Environmental Affairs & Town Planning: Gilles TONELLI

Min. of External Relations: Rainier IMPERTI

Min. of Social Affairs & Health: Denis RAVERA

Permanent Representative to the UN: Gilles NOGHES

ECONOMY

Monaco, located on the Mediterranean coast, has an economy primarily geared toward finance, commerce, and tourism. Low taxes have drawn many foreign companies to Monaco; the companies’ production accounts for around 50% of the 593 million annual government income (2002). The enterprises pay a 33.33% tax only if more than 25% of their revenue is generated abroad. Ever since Monaco’s famed casino opened in 1856, the tourism industry has been booming. It currently accounts for close to 25% of the annual revenue.

Customs, postal services, telecommunications, and banking in Monaco are governed by an economic and customs union with France. The official currency is the euro.

Though official economic statistics are not published, 2000 estimates placed the national product at $870 million and the per capita income at $27,000. Monaco does not publish the figures for unemployment, but in 1998 the rate was estimated to be at 3.1%.

Monaco is noted for its activity in the field of marine sciences. Its Oceano-graphic Museum, formerly directed by Jacques Cousteau, is one of the most renowned institutions of its kind in the world. Monaco imports and exports products and services from all over the world. There is no commercial agriculture in Monaco.

FOREIGN RELATIONS

Monaco actively participates in the United Nations, which it joined in 1993. Monaco joined the Council of Europe on October 4, 2004. Monaco also is a member of many international and intergovernmental organizations, including Interpol, the UN Educational, Scientific, and Cultural Organization (UNESCO), and the World Health Organization (WHO). The International Hydrographic Bureau (IHB) is headquartered in Monaco.

The Principality of Monaco is a sovereign and independent state, linked closely to France by the Treaty of July 1918, which was formally noted in Article 436 of the Treaty of Versailles of 1919. The foreign policy of Monaco is one illustration of this accord: France has agreed to defend the independence and sovereignty of Monaco, while the Monegasque Government has agreed to exercise its sovereign rights in conformity with French interests. Since then, the relations between the sovereign states of France and Monaco have been further defined in the Treaty of 1945 and the Agreement of 1963.

In 2002, Monaco renegotiated its 1918 treaty with France. In 2005, it was ratified by both parties and entered into force. The terms of the treaty:

• Upgrade France’s representation in Monaco from Consulate General to that of an embassy;
• Permit, for the first time, other countries to accredit ambassadors to Monaco; and
• Formally recognize the succession scheme set out in the 1962 Constitution, which extends eligibility to the Prince’s daughters and other family members.

Although not a member of the European Union (EU), Monaco is closely associated with the economic apparatus of the EU through its customs union with France and its reliance upon the euro as its “official currency.

Monaco has 10 diplomatic missions in Western Europe and permanent representation at the United Nations and the Council of Europe. It maintains honorary consulates in 106 cities in 45 countries. Seventy-six countries have consulates general, consulates, or honorary consulates in or accredited to Monaco.

U.S.–MONACO RELATIONS

The United States and Monaco enjoy excellent relations, which both countries seek to maintain and strengthen. From 1956 until her death in 1982, the American-born Grace Kelly was married to Prince Rainier III, Prince Albert’s father. The United States does not yet have a diplomatic mission located in Monaco.

In December 2006, the United States and Monaco upgraded from consular to full diplomatic relations. Shortly after, Ambassador Craig Stapleton (France) was accredited to Monaco, and Ambassador Gilles Noghes became the first Monegasque ambassador to the United States.

Principal U.S. Embassy Officials

PARIS (E) Address: 2, avenue Gabriel, 75382 Paris Cedex 08; APO/FPO: PSC 116, APO AE 09777-5000; Phone: (33) (1) 4312-2222; Fax: 33-1-42 66 97 83; INMARSAT Tel: 011-8816-4142-8701, 011-8816-4142-8702, 011-8816-4142-8703; Workweek: Mon--Fri 9 a.m–6 p.m.; Website: www.amb-usa.fr.

Last Updated: 1/17/2007

TRAVEL

Consular Information Sheet—France & Monaco : July 6, 2006

Country Description: France is a developed and stable democracy with a modern economy. Monaco is a developed constitutional monarchy. Tourist facilities are widely available.

Entry/Exit Requirements: A passport is required for entry to France and Monaco. A visa is not required for tourist/business stays up to 90 days in France and Monaco. That period begins when you enter any of the Schengen group of countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, and Sweden. For further information concerning entry requirements for France, travelers may contact the Embassy of France at 4101 Reservoir Road, N.W., Washington, D.C. 20007, tel. (202) 944-6000, or the French Consulates General in Atlanta, Boston, Chicago, Houston, Los Angeles, Miami, New Orleans, New York, or San Francisco.

For further information on entry requirements to Monaco, travelers may contact the Consulate General of Monaco at 565 5th Avenue, New York, N.Y. 10017, tel. (212) 759-5227. The Consulate General’s web site is http://www.monaco-consulate.com. Visit the Embassy of France web site at http://www.consulfrance-washington.org for the most current visa information.

Note: Although European Union regulations require that non-EU visitors obtain a stamp in their passport upon initial entry to a Schengen country; many borders are not staffed with officers carrying out this function. If an American citizen wishes to ensure that his or her entry is properly documented, it may be necessary to request a stamp at an official point of entry. Under local law, travelers without a stamp in their passport may be questioned and asked to document the length of their stay in Schengen countries at the time of departure or at any other point during their visit, and could face possible fines or other repercussions if unable to do so.

Safety and Security: The Government of France maintains a threat rating system known locally as “Vigipirate”; it is similar to the U.S. Homeland Security Advisory System. Under this plan, in times of heightened security concerns, the government augments police with armed forces and increases visibility at airports, train and metro stations, and other high-profile locations such as schools, major tourist attractions, and government installations. Over the last year, there have been numerous arrests of suspected Islamic militants involved in various terrorist plots. As with other countries in the Schengen area, France maintains open borders with its European neighbors, allowing the possibility of terrorist groups entering/exiting the country with anonymity.

In the past, political assassinations and bombings have occurred in France. The National Front for the Liberation of Corsica (FLNC), as part of its decades long bombing campaign on the island of Corsica, continues to conduct limited operations in the south of France and on Corsica. In the 1990’s there was a wave of bombings and attacks in Paris carried out by Algerian terrorists. Today, numerous radical Islamic groups claim sympathizers within France’s large immigrant community, as evidenced by arrests over the last few years.

Although Americans have not been specifically targeted in terrorist attacks in France within the past few years, travelers should maintain vigilance. Immediately report unattended packages observed in public places or any other suspicious activities. French law enforcement authorities are pro-active and will respond immediately. If there is a security incident or suspicious package, do not linger in the area to observe.

Although violent civil disorder is rare in France, in the past, student demonstrations, labor protests, and other demonstrations have developed into violent confrontations between demonstrators and police. This was the case in March/April 2006, when a series of large demonstrations took place in central Paris. Several weeks of unrest occurred in the suburbs of Paris, as well as in other French cities and towns, in November 2005. Americans are advised to avoid street demonstrations particularly if riot police are on the scene.

For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site where the current Travel Warnings and Public Announcements, including the Worldwide Caution Public Announcement, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or, for callers outside the U.S. and Canada, a regular toll line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: While both France and Monaco have relatively low rates of violent crime, a limited number of neighborhoods in the larger French cities merit extra caution. Additionally, although the overall crime rate has fallen slightly in recent years, the volume of crimes involving violence has increased in France. Thieves commonly target vehicles with nonlocal license plates and work in or near tourist attractions such as museums, monuments, restaurants, hotels, beaches, trains, train stations, airports, and subways. Americans in France and Monaco should be particularly alert to pickpockets in train stations and subways.

Photocopies of travel documents and credit cards should be kept separate from the originals and key telephone numbers maintained to contact banks if credit cards are stolen or lost.

Although thieves may operate anywhere, the U.S. Embassy in Paris receives frequent reports of theft from several areas in particular:

Paris: The Paris Police Prefecture has published a pamphlet entitled “Feeling Safe in Paris,” which provides practical advice and useful telephone numbers for visitors and can be accessed at http://www.prefecture-police-paris.interieur.gouv.fr/feeling_safe_in_paris.htm. Thieves operate on the rail link (RER) from Charles de Gaulle Airport to downtown Paris, where they prey on jetlagged, luggage-burdened tourists. In one common ruse, a thief distracts a tourist with a question about directions, while an accomplice steals a momentarily unguarded backpack, briefcase, or purse. Thieves also time their thefts to coincide with train stops so they may quickly exit the car just before the automatic doors close. Travelers may wish to consider taking an airport shuttle bus or taxi from the airport into the city.

Reports of stolen purses, briefcases, and carry-on bags at Charles de Gaulle Airport have been on the rise. Travelers should monitor their bags at all times and never leave them unattended. As thieves commonly target laptop bags, travelers should avoid carrying passports and other valuables in computer bags. One common method involves timing the theft so that while the traveler is busy at the ticket counter, the traveler’s shoulder bag is picked up after being placed on the floor. Also be aware that unattended bags are subject to destruction by airport security.

There have been reports of robberies in which thieves on motorcycles reach into a moving car by opening the car door or reaching through an open window to steal purses and other bags visible inside. The same technique is used against pedestrians walking with purses/bags/cameras slung over their street-side shoulder. Those traveling by car should remember to keep the windows up and the doors locked. Pedestrians are encouraged to walk as far from the street side as possible.

Many thefts occur on the Number One Subway Line, which runs through the center of Paris by many major tourist attractions (including the Grand Arch at La Defense, the Arc de Triomphe, the Champs Elysees, Place de la Concorde, the Louvre, and the Bastille). Pickpockets are especially active on this metro line during the summer months and use a number of techniques. The most common, and unfortunately the most successful, is the simple “bump and snatch,” where an individual bumps into the tourist while at the same time reaching into the pockets/purse/bag. Visitors should be particularly careful when metro doors are closing, as this is a favored moment for the less-sophisticated pickpockets to simply grab valuables and jump through the closing doors, leaving the victim helplessly watching as the thief flees. Visitors are encouraged NOT to aggressively confront thieves, who often operate in groups and may become violent if cornered. Simply drawing attention to an attempted theft will most likely stop the operation and cause a tactical withdrawal by the thief.

Gare du Nord train station, where the express trains from the airport arrive in Paris, is also a high-risk area for pickpocketing and theft. Travelers should also beware of thefts that occur on both overnight and day trains, especially on trains originating in Spain, Italy, and Belgium. These involve the theft of valuables while passengers are sleeping or when the bags are left unattended.

In hotels, thieves target lobbies and breakfast rooms, and take advantage of a minute of inattention to snatch jackets, purses, and backpacks. While many hotels do have safety latches that allow guests to secure their rooms from inside, this feature is not as universal as it is in the United States. If no chain or latch is present, a chair placed up against the door and wedged under the handle is usually an effective obstacle to surreptitious entry during the night. There are, however, reports of thieves breaking into hotel rooms on lower floors through open windows while the occupants are sleeping. To guard against this, hotel room windows should be kept locked at all times. Whenever possible, valuables should be kept in the hotel safe.

Many Americans have reported thefts occurring in restaurants and nightclubs/bars, where purses are stolen from the back of a chair or from under the table. Again, keep valuables on your person and do not leave them unattended or out of sight. Thefts also occur at the major department stores such as Galeries Lafayette and Printemps where tourists often place wallets, passports, and credit cards on cashier counters during transactions.

ATMs (Automatic Teller Machines) are very common in France and provide ready access to cash, allowing travelers to carry as much money as they need for each day. The rates are competitive with local exchange bureaus and an ATM transaction is easier than the cashing of travelers’ checks. However, crimes involving ATMs are increasing. Travelers should not use ATMs in isolated, unlit areas or where loiterers are present. Travelers should be especially aware of persons standing close enough to see the PIN (Personal Identification Number) being entered into the machine. Thieves often conduct successful scams by simply observing the PIN as it is entered and then stealing the card from the user in some other location. If the card becomes stuck, travelers should immediately report it to the bank where the machine is located.

Large criminal operations in Paris involving the use of ATM machines that “eat” the user’s ATM card have been reported. This most often happens during a weekend or at night when the bank is closed. The frustrated traveler often walks away after unsuccessfully trying to retrieve the card, with plans to return the first day the bank is open. In such cases, a criminal gang has modified the machine using an add-on device equipped with a microchip that records the user’s PIN number when it is typed in and also prevents the card from being ejected. The criminal retrieves the card from the device once the visitor departs, downloads the recorded PIN number and then goes to other ATMs and withdraws as much cash as possible. ATM users are strongly encouraged to carry a 24-hour emergency number for their ATM card and bank account that will enable the immediate prevention of withdrawals from the account if difficulties occur.

Pigalle is the “adult entertainment district” of Paris. Many entertainment establishments in this area engage in aggressive marketing and charge well beyond the normal rate for drinks. There have been reports of threats of violence to coerce patrons into paying exorbitant beverage tabs. Visitors are encouraged to avoid this area unless touring with a well-organized and reputable tour company.

Normandy: There has been an increase in break-ins and thefts from vehicles in the parking lots at the Normandy beaches and American cemeteries. Valuables should not be left unattended in a car, and locking valuables in the trunk should not be considered a safeguard. Thieves often pry open car trunks to steal bags inside.

Southern France: Thefts from cars with unlocked doors or open windows stopped at red lights or caught in slow traffic are very common, particularly along the Riviera of the Nice-Antibes-Cannes area, and in Marseille. Car doors should be kept locked and windows raised at all times to prevent incidents of “snatch-and-grab” thefts. In this type of scenario, the thief is usually a passenger on a motorcycle. Break-ins of parked cars are also fairly common. Valuables should not be left in the car, not even in the trunk, when the vehicle is unattended.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed. Under French law, compensation is available to victims of crime committed on French soil under certain circumstances.

Medical Facilities and Health Information: Medical care comparable to that found in the United States is widely available.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning France and Monaco is provided for general reference only, and it may not be totally accurate in a particular location or circumstance.

Roads in France are generally comparable to those in the United States, but traffic engineering and driving habits pose special dangers. Usually, lane markings and sign placements are not as clear as in the United States. Drivers should be prepared to make last-minute maneuvers, as most French drivers do. The French typically drive more aggressively and faster than Americans and tend to exceed posted speed limits. Right-ofway rules in France may differ from those in the United States. Drivers entering intersections from the right have priority over those on the left (unless specifically indicated otherwise), even when entering relatively large boulevards from small side streets. Many intersections in France are being replaced by traffic circles, where the right-of-way belongs to drivers in the circle.

On major highways, service stations are situated at least every 25 miles. Service stations are not as plentiful on secondary roads in France as they are in the United States. Paris, the capital and largest city in France, has an extensive and efficient public transportation system. The interconnecting system of buses, subways, and commuter rails serves more than 4 million people a day with a safety record comparable to or better than the systems of major American cities. Similar transportation systems are found in all major French cities. Between cities, France is served by an equally extensive rail service, which is reliable. High-speed rail links connect the major cities in France. Many cities are also served by frequent air service.

Visit the website of the French and Monegasque National Tourist Office at http://franceguide.com. The website contains specific information concerning French and Monegasque driver’s permits, vehicle inspection, road tax, and mandatory insurance.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of France’s Civil Aviation Authority as being in compliance with ICAO international aviation safety standards for oversight of France’s air carrier operations. For more information, travelers may visit the FAA’s Internet web site at http://www.faa.gov.

Special Circumstances: French and Monegasque customs authorities enforce strict regulations concerning temporary importation into or export from France of items such as firearms, antiquities, medications, business equipment, sales samples, and other items. It is advisable to contact the Embassy of France in Washington, D.C., one of France’s consulates in the United States, or the Consulate General of Monaco in New York for specific information regarding customs requirements.

The emergency numbers in France for police, fire, and medical assistance are as follows: 17 (police emergency), 18 (fire department) and 15 (emergency medical/paramedic team/ambulance). In Monaco, the numbers are 17 (police emergency), 18 (fire department) and 9375-2525 (medical/paramedic team/ambulance).

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses.

Persons violating French or Monegasque laws, even unknowingly, may be expelled, arrested, or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in France or Monaco are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy and Consulate Locations: Americans living or traveling in France or Monaco are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department’s travel registration website, and to obtain updated information on travel and security within France and Monaco. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in cases of emergency.

The Consular Section of the U.S. Embassy in Paris is located at 2 Rue St. Florentin, 75001 Paris (Place de La Concorde, Metro Stop Concorde), tel. 011-33-1-43-12-22-22 or (in France) 01-43-12-22-22; fax 011-33-1-42-61-61-40. Further information can be obtained at the U.S. Embassy’s website at http://france.usembassy.gov.

The Consulate General in Marseille is located at Place Varian Fry, 13086 Marseille, tel. 011-33-4-91-54-92-00, ext. 304, or (in France) 04-91-54-92-00, ext. 304; fax 011-33-4-91-55-09-47. Website: http://france.usembassy.gov/marseille/default.htm.

The Consulate General in Strasbourg is located at 15 Avenue d’Alsace, 67082 Strasbourg, tel. 011-33-3-88-35-31-04 or (in France) 03-88-35-31-04; fax 011-33-3-88-24-06-95. The Consulate General in Strasbourg does not produce passports on the premises.

American citizens in this area whose passports are lost or stolen and who have urgent travel needs should contact the U.S. Embassy in Paris. Web site: http://france.usembassy.govstrasbourg/default.htm. The Consular Agency in Nice is located at 7, Avenue Gustave V, 3rd floor, 06000 Nice, tel. 011-33-4-93-88-89-55 or (in France) 04-93-88-89-55; fax 011-33-4-93-87-07-38. Web site: http://france.usembassy.gov/marseille/nice.htm.

The U.S. Government also has consular representation in Bordeaux, Lille, Lyon, Rennes, and Toulouse that provide some services to Americans, by appointment only. The post in Bordeaux is located at 10, place de la Bourse, 33076 Bordeaux (entry on rue Fernand Philippart); tel. 011-33-5-56-48-63-85 or 05-56-48-63-85 in France; fax: 011-33-5-56-51-61-97. Website: http://france.usembassy.gov/bordeaux/default.htm. The post in Lille is located at 107, rue Royale, 59000 Lille; tel. 011-33-3-28-04-25-00 or 03-28-04-25-00 in France; fax: 011-33-3-20-74-88-23. Website: http://france.usembassy.gov/lille/default.htm. The post in Lyon is located at 1, quai Jules Courmont, 69002 Lyon; tel. 011-33-4-78-38- 33-03 or 04-78-38- 33-03 in France; fax: 011-33-4-72-41-71-81. Website: http://france.usembassy.gov/lyon/default.htm. The post in Rennes is located at 30, quai Duguay Trouin, 35000 Rennes; tel. 011-33-2-23-44-09-60 or 02-23-44-09-60 in France; fax: 011-33-2-99-35-00-92. Website: http://france.usembassy.gov/rennes/default.htm. The post in Toulouse is located at 25, Allée Jean Jaures, 31000 Toulouse; tel. 011-33-5-34-41-36-50 or 05-34-41-36-50 in France; fax: 011-33-5-34-41-16-19. Website: http://france.usembassy.gov/toulouse/default.htm.

MONACO

Principality of Monaco

Principauté de Monaco

COUNTRY OVERVIEW

LOCATION AND SIZE.

Monaco, a small independent hereditary principality in Western Europe, is located on the Mediterranean Sea along the southern coast of France, which is also known as the French Riviera or Côte d'Azur. Monaco is 18 kilometers (11 miles) east of the French city of Nice, near the border with Italy. The second smallest independent state in the world (after Vatican City), and almost entirely urban, it forms an enclave in southeastern France, surrounded on the north, east, and west by the French département (administrative division, or region) of Alpes-Maritimes. The country is only 1.95 square kilometers (0.75 square miles) in area, or about 3 times the size of the Mall in Washington, D.C. The terrain is hilly, rugged, and rocky, but very highly urbanized. The principality, a famous maritime resort, is composed of 4 quartiers (quarters): Monaco-Ville, the capital (an ancient fortified town located on a rocky promontory extending into the Mediterranean); La Condamine (the section along the port); Monte Carlo (the principal residential and resort area); and Fontvieille (a newly constructed industrial park reclaimed from the sea). The name "Monaco," derived from the ancient Greek Monoikos (meaning "of the old town"), is usually associated with the mythical hero, Hercules.

POPULATION.

The population of Monaco was estimated at 31,693 in July 2000, with an average growth rate of 0.48 percent in the same year. The 2000 birth rate was estimated at 9.94 births per 1,000 population, the death rate at 13.06 deaths per 1,000 population, and the net migration rate was approximately 7.89 immigrants per 1,000 population.

With high life expectancy at birth, the Monegasque population is among the oldest populations in the world. The average life expectancy was 74.88 for men and 83 for women in 2000, indicating an overall life expectancy of 78.84. The total fertility rate in 2000 was 1.76 children born per woman. Approximately 15 percent of the population is younger than 15 years of age and 23 percent is age 65 or older. Monaco has also one of the highest population densities in the world, at 16,428 persons per square kilometer (42,549 per square mile).

Monegasques represented a mere 16 percent of the population in 2000. Other ethnic groups include the French (47 percent), Italian (16 percent), and other nationalities (21 percent). French is the official language; English, Italian, and Monegasque (a blend of French and Italian) are also widely spoken. The traditional Monegasque language is used by the older people and is taught in the schools. The economy of Monaco offers more than 30,000 jobs. Immigrant labor, especially from France and Italy, is heavily relied upon because the number of jobs available outnumbers the number of citizens in the labor force . Many affluent Americans, as well as French, Britons, Swiss, Belgians, and other Europeans, live in the principality. The prevailing religion is Roman Catholicism, accounting for 95 percent of the population. Roman Catholicism also is the official religion, though freedom of religion is guaranteed by the constitution. Education is free and compulsory for children ages 6 to 16.

OVERVIEW OF ECONOMY

Renowned as a tax haven for the rich, Monaco is thought to have one of the most affluent and liberal economies in the world, though the government does not publish economic figures or other relevant statistics. A tiny territory with few natural resources—in some places stretching no more than 180 meters (600 feet) inland from the Mediterranean—the Monegasque economy is primarily geared toward tourism, modern manufacturing, finance, and commerce. From the end of the 19th century, the government of Monaco has very actively encouraged economic growth and provided the framework for the development of private enterprise. It has successfully sought to diversify into services and small, high value-added , nonpolluting industries.

Low corporate taxes (and no personal income or other direct taxes ) have drawn many foreign "letter box" companies, which operate overseas but have established their head offices nominally in Monaco because of the more favorable tax treatment. These types of companies account for about 50 percent of the $586 million annual government revenue in 1997. The residential real estate market also provides some considerable income for the principality; many wealthy aliens are actively pursuing Monegasque permanent residence and/or citizenship for tax purposes and are in constant need of local property for that matter. Similarly, tourism accounts for close to 25 percent of the principality's annual income, and Monaco has been a major tourist center ever since its famed gambling casino was established in 1856. The tourist industry is still considered the economic foundation of the state. The sale of picturesque postage stamps and tobacco, the banking and insurance sectors, and the manufacture of pharmaceuticals, chemicals, electronic equipment, cosmetics, paper, textiles, and plastic goods are also of economic importance. Customs, postal services, telecommunications, and banking in Monaco are governed by the economic, monetary, and customs union with France and European Union (EU) rules. Although not an EU member, Monaco is closely associated with the economic structures of the EU. Some 1999 estimates placed the per capita gross domestic product (GDP) at about US$27,000, one of the highest in the world. The total turnover of the principality rose from the estimated 3.25 billion French francs in 1975 to 21.3 billion in 1988, 25.4 billion in 1989, 29 billion in 1990, 31 billion in 1991, 32.4 billion in 1992, and 33.2 billion in 1993.

POLITICS, GOVERNMENT, AND TAXATION

Monaco has been governed as a constitutional monarchy since 1911, with the hereditary prince (presently, Prince Rainier III) as the head of state. Unlike other European monarchies, the Monegasque sovereign is the actual, and not symbolic, head of state. In the constitution of 1962, it is clearly stated that the executive power is responsible to the supreme authority of the reigning prince. The succession to the throne passes to the direct descendants of the prince under the principle of primogeniture (inheritance of the first born), with male descendants taking precedence over female descendants of the same degree of kin. The sovereign represents Monaco in its relations with foreign powers and signs and ratifies treaties. In 1956, Rainier III married American film star Grace Kelly, who died in a car crash in 1982. They have 2 daughters and a son, who is the heir apparent to the throne.

The executive branch consists of a minister of state (head of government, presently Michel Leveque), who presides over a 4-member cabinet, the Council of Government. The minister is primarily responsible for foreign relations and is traditionally a French citizen appointed by the prince for a 3-year term from among several candidates proposed by the French government. As the prince's representative, the minister also directs the executive services, commands the police, and presides (with voting powers) over the Council of Government. The 3 other members of the Council are locals, responsible for financial and economic affairs, internal affairs, and public works and social affairs, respectively.

Monaco is a parliamentary monarchy ruled according to its 1962 constitution, which stipulates that the hereditary prince shares his power with the unicameral National Council. There are 18 members of this legislative body, elected by universal suffrage (by citizens over age 21) for 5-year terms. They usually meet twice annually to vote on the budget and endorse laws proposed by the prince. If the prince dissolves the National Council, new elections must be held within 3 months. Ordinances passed by the National Council are debated in the Council of Government, as are the ministerial decrees signed by the Minister of State. Once approved by the Council, the ordinances are submitted to the prince within 80 days for his approval. Once approved, the ordinances become legally valid. If no opposition is voiced on his behalf within 10 days of receipt, they become enforceable.

Legal power is also vested in the monarch, who delegates all legal procedures to the courts dispensing justice in his name. The independence of the judges, however, is guaranteed by the 1962 constitution. Monaco's legal system is closely related to the French system and is designed after the French Napoleonic Code. Local affairs—the administration of the 4 quarters—are directed by the Communal Council, which consists of 15 elected members and is presided over by a mayor. Monaco has its own local political groups that are not a part of the French political system and include the National and Democratic Union (UND), the Campora List, and the Medecin List.

The most crucial political issue in Monaco is, understandably, its bilateral relation with France. The geographical situation of Monaco as an enclave within France justifies the traditional customs and monetary union between the 2 countries, which dates back to 1861. Two major treaties in 1918 and 1919 established a reciprocal contractual basis for the relations between the 2 independent states (France recognized Monaco as a sovereign entity and undertook to build its relations on an equal footing with a limited protection over the principality). Under these arrangements, France is obligated to defend the independence and sovereignty of the principality and the integrity of Monegasque territory. In return, the government of Monaco is obligated to exercise its rights only in conformity with French interests. New bilateral agreements were signed in 1945, 1951, and 1963 with the aim of amending the earlier provisions in order to adapt them to the new economic and social conditions. Further changes and amendments arose from the development of European integration and the decision made by France in 1999 to adopt the single European currency, the euro.

Although small in size, Monaco actively participates in the United Nations (UN), which it joined in 1993, and maintains a permanent mission to the UN in New York. Monaco also is a member of many other international and intergovernmental organizations. The International Hydrographic Bureau (IHB) is headquartered in the principality. The country has 10 diplomatic missions in Europe and maintains honorary consulates in 106 cities in 45 countries. Sixty-one countries have consulates general, consulates, or honorary consulates in or accredited to Monaco.

The government's role in the economy has been traditionally one of active promotion of private enterprise and creating the necessary infrastructure for development. The state and the ruling Grimaldi family personally own considerable real estate assets and equity in the economy. Monaco's tax policies concerning its citizens are among the most liberal ones in the world, as there is no direct taxation for local residents. In 1869, land tax, personal and goods taxes, and the business tax were abolished. Since that time, Monegasque citizens or foreigners residing in the principality have not been subject to any tax on their personal income, whatever its origin. For French citizens moving to the principality after 1962, an exception was introduced in 1963 under pressure from the French government. Under the new arrangement, French nationals who moved their residence to Monaco, or who could not prove 5 years of residence in Monaco before October 1962, were subject to French taxes under the same conditions as if they had their residence in France. Since 1963, companies of any type are required to pay a corporate tax rate of 33.33 percent on profits when at least 25 percent of their turnover comes from operations outside Monegasque territory. A value-added tax (VAT) of 5.5 percent and a real estate added value tax of 20.6 percent were also introduced, along with some special arrangements concerning banking and financial activities and indirect taxes .

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Monaco, as a small, highly urbanized enclave in the French territory, is part of the well-developed French infrastructure. Electricity is provided almost entirely by France. There are 1.7 kilometers (1.1 miles) of railroads

and 50 kilometers (31 miles) of paved roads, including the highway and railroad connecting southern France with Italy along the Mediterranean. There are 2 ports, including a busy merchant harbor and several tourist marinas, although the principality has no merchant fleet of its own. There is also a helicopter shuttle line between the heliport at Fontvieille and the nearby international airport in Nice, France. Telecommunications are incorporated within the French telephone system, and there were 9 radio stations and 5 television stations in 1997, while 4 Internet service providers were offering customers their services in 1999. The access to cellular phones and to the Internet was similar in numbers and quality of service to that of French urban areas. The cable television services were comparable to the highest western European standards.

ECONOMIC SECTORS

The backbone of the Monegasque economy is formed by high-end tourism and the services related to it, construction and the real estate market, small-scale industrial and consumer products manufacturing (chemicals, food products, plastics, precision instruments, cosmetics, and ceramics), and international trade. Of the 32,691 employed, as estimated in 1999, the private sector was responsible for 29,311 and the public sector for 3,380. Approximately 46 percent of the labor force was in services (other than tourism), 7 percent in banking, 17 percent in tourism and hotels, 12 percent in retail , 7 percent in construction and public works, and 11 percent in industry. No official data as to the distribution of GDP were available.

AGRICULTURE

There are no arable lands or other agriculturally suited areas in the principality; virtually 100 percent of the Monaco territory is heavily urbanized. Accordingly, there is no commercial agriculture in the country. All foods are imported and some of them are further processed and exported.

INDUSTRY

Industrial activity, often little known in Monaco, is an area that has undergone considerable development over the past century. From 1906, when the state financed the construction of the first industrial platform in Fontvieille, industrial firms such as the Monaco Brewery and companies involved in flour milling and the manufacture of chocolate began to develop. Currently, the chemical-pharmaceutical-cosmetics manufacturing sector appears to be the most widespread, but companies working in the areas of plastic materials processing and the manufacture of electrical and electronic equipment are also present. Other sectors, while not on the same scale as these, are the manufactures of mechanical engineering, packaging, printing, and clothing. Since 1980, nearly 1,859 square meters (20,000 square feet) of new industrial floor-space has been built, mostly on areas reclaimed from the sea. The lack of space has led to the establishment of industrial premises in buildings that rise up to 13 floors. The government of the principality has adopted an industrial policy that operates in favor of the institution of enterprises having a high capital gain factor but that do not create any pollution. Industrial activity occupies about 4,000 members of the workforce. In 1993, they represented approximately 11.6 percent (excluding the construction and public works industry) of the total revenue in the principality.

SERVICES

The service sector has undergone spectacular growth in recent decades. It produced 49.1 percent of the total revenue of the country in 1993 and included banking, insurance, consulting agencies (technical, commercial, and financial), auxiliary services, and commercial middlemen. Banking and financial activities and business services, including those associated with the establishment of head offices and offices of non-financial companies of international size, are growing in importance in Monaco. The retail sector includes small, privately held stores, luxury boutiques, and international retail chains. Retail contributed approximately 21 percent to the principality's total revenue in 1993. The banking and retail sectors are closely integrated with the French economy through the monetary union between the 2 countries and the local branches of large French and international banks, insurance firms, and stock markets. Despite the increased competition resulting from the liberalization of financial services in the EU, the introduction of the single currency, and the revolution in information technology, the economic relationship between France and Monaco remains strong. Real estate activity plays a very important role in the economy, justifying the principality's extensive research and decision-making process in the field of city planning.

TOURISM.

Monaco is a popular world luxury resort, attracting affluent tourists to its casino, rich cultural schedule, and pleasant climate. Situated in the heart of the Riviera—the narrow coastal strip extending along the Mediterranean from Hyeres, France, to La Spezia, Italy— it benefits from the proximity of the renowned French resorts of Saint Tropez, Antibes, Cannes, Nice, and Menton. The latter 2 cities are connected by 3 scenic highways, which run through or near the Monaco territory and its chief tourist quarter of Monte Carlo along the sheer cliffs of the Maritime Alps. Both private and business tourism are thriving in the principality, and there are about 2,500 hotel rooms, most of which are in the 4-star category or higher. In 1993, 601,111 rooms were occupied overnight, resulting in an average annual occupation rate of 48.3 percent. For several years, the government has been making considerable efforts to attract more business tourists in order to increase hotel occupation, since occupation by the private clientele is essentially seasonal. Among the points of interest in Monaco are a cathedral, a palace in the medieval and Renaissance styles, and a world-renowned oceanographic museum established in 1910. A major source of revenue is the famous gambling casino. The Monte Carlo Opera and Philharmonic Orchestra offer ballet and music events, and the museums, spas, beaches, flower gardens, marinas, fine dining spots, luxury boutiques, and vistas all contribute to the attractions of the principality. The Monaco Grand Prix and the Rally Monte Carlo are popular annual automobile-racing events. The Societe des Bains de Mer, a company partly owned by the government, operates the casino and most of the hotels, clubs, beaches, and other places of entertainment. There are also notable foreign direct investments in the Monaco tourist industry.

INTERNATIONAL TRADE

Monaco is a hub of international commerce, importing and exporting products and services from all over the world. It is in full customs integration with France, which collects and rebates Monegasque trade duties . Monaco participates in the EU market system through France. No recent trade statistics for the principality have been made available.

MONEY

As an integral part of the French monetary and banking system, the country has a balanced budget with revenues of US$518 million and expenditures of US$531 million, including capital expenditures (1995 est.).

Recent exchange rates for the euro per US$1 are 1.1 (February 2001), 1.20 (November 2000), 0.99 (January 2000), and 0.94 (1999). French francs (F) were exchanged at a rate of F7.22 (August 1999), 6.16 (1999 average), 5.65 (January 1999), 5.8995 (1998), 5.8367 (1997), 5.1155 (1996), and 4.9915 (1995) per US$1.

POVERTY AND WEALTH

Living standards in Monaco are high, comparable to those in the most prosperous French urban areas. Since one of the principality's priorities is to attract wealthy individuals from all over the world to acquire real estate and live and spend in the country, the government constantly uses its economic advantages to improve the quality of life and to combine work and leisure. Indeed, many of the world's rich buy property in Monaco to take advantage of Monaco's tax regime, although they seldom abide by the legal requirement to live 6 months of every year in the country, and often hire locals to maintain their

property instead. There are many large local private fortunes in the principality as well and extreme poverty is virtually non-existent. The number of jobs in the country (32,691 in 1999; 29,311 in the private sector) outnumbers its total population (31,693 in 2000), and the majority of the workers, particularly in the lower-paying jobs, commute daily from neighboring France and Italy. Their scale of pay and benefits are commensurable with the ones in France, and the French workforce is reckoned to be among the most privileged in the world.

WORKING CONDITIONS

Economic prosperity and the proportionally large number of jobs available, along with the government's sensitivity to safety and environmental protection, create favorable working conditions in the principality. The unemployment rate, compared to French and EU standards, is very low at 3.1 percent in 1998. No major labor unrest has been reported recently.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1215. Monaco is founded as a colony of the Italian trade and seafaring city, Genoa.

1297. The Grimmaldi family of Genoa and their supporters establish their rule over Monaco. A thriving economy based on trade develops.

1489. King Charles VIII of France recognizes the independence of Monaco.

1789-1814. During the French Revolution, Monaco is attached to the territory of the French Republic under the name of Fort Hercules. It becomes the chief town of the canton of Alpes-Maritimes.

1815. Monaco is made a protectorate of the Italian Kingdom of Sardinia.

1861. Monaco's sovereignty is recognized by a Franco-Monegasque Treaty.

1863. The Seabath Company is founded, which establishes a casino and several hotels in the quarter of the Spelugues, known as Monte-Carlo since 1866. Economic development is boosted in the late 19th century with a railroad link to France.

1911. Absolute monarchy gives way to the first constitution.

1918. A new treaty with France provides for limited French protection over Monaco. New agreements with France are signed in 1945, 1951, and 1963.

1962. Adoption of the current, more liberal constitution.

1993. Monaco joins the United Nations.

1999. Monaco and France both join the Euro Monetary Zone (EMZ).

FUTURE TRENDS

The Monegasque economy is closely related to that of the French, and therefore is dependent on the development trends of the EU. The liberalization of commerce, financial, and other services in the EU, the introduction of the single European currency, and the revolution in information technology will gradually increase competition, but the increasing wealth and dynamism of the EU economies will also boost demand for Monaco's unique services. Due to its size, the country is limited in its opportunities for extensive growth, but its strong ties to high-class tourism, services, and modern technology make it unlikely to endure any major negative changes in the near future. It is likely that the principality will preserve its sound economy, particularly in the areas of tourism, services, commerce, and modern manufacturing. The maintenance of its high living standards will continue to attract foreign companies, investment, and affluent tourists and residents in the foreseeable future.

DEPENDENCIES

Monaco has no territories or colonies.

BIBLIOGRAPHY

Global Investment Business Center, Inc. Monaco: A Country Study Guide. USA International Business Publications, February 2000.

U.S. Central Intelligence Agency. World Factbook 2000. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed January 2001.

U.S. Department of State. Background Notes: Europe: Monaco. <http://www.state.gov/www/background_notes/eurbgnhp.html>. Accessed January 2001.

—Valentin Hadjiyski

CAPITAL:

Monaco-Ville.

MONETARY UNIT:

French franc (F). One French franc equals 100 centimes. The franc comes in bank notes of 20, 50, 100, 200, and 500-franc denominations. There are coins of 1, 2, 5, 10, and 20 francs and 5, 10, 20, and 50 centimes. Monegasque coins, having the same value as the French coins, are also minted and circulated. Monaco is scheduled to switch to the new European currency, the euro, in January 2002.

CHIEF EXPORTS:

Cosmetics, pharmaceuticals, glassware, precision instruments, fine processed foods, cards and postal stamps, and various re-exported commodities (estimate, no official statistics are published).

CHIEF IMPORTS:

Energy, automobiles, equipment, and consumer goods (estimate, no official statistics are published).

GROSS DOMESTIC PRODUCT:

US$870 million (1999 est., no official statistics are published).

BALANCE OF TRADE:

Exports: US$415,272 (1999 est.). Imports: US$415,272 (1999 est.). [Estimate by Monegasque government sources; no official statistics are published.]

MONACO

Compiled from the October 2005 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Principality of Monaco

PROFILE

Geography

Area:

1.95 sq. km. (0.8 sq. mi); about the size of New York City's Central Park.

City:

Capital—Monaco, pop. 32,409 (July 2005 est.).

Terrain:

Hilly.

Climate:

Mediterranean.

People

Nationality:

Noun and adjective—Monegasque.

Population:

32,409 (July 2005 est.).

Annual growth rate (2005 est.):

0.43%.

Ethnic groups (2003):

French 31.95%, Italian 20.02%, Monegasque 19.02%, British 5.32%, Swiss 2.78%, German 2.54%, Belgian 2.46%, American 1.22%, and other 14.7%.

Religion:

Roman Catholic 90%, other 10%.

Language:

French (official), English, Italian, and Monegasque (a blend of French and Italian).

Education:

Years compulsory—10, ages 6-16. Attendance—99%. Literacy—99%.

Health (2005 est.):

Infant mortality—5.43/1,000. Life expectancy—75.7 yrs. male; 83.63 yrs. female. Birth rate (July 2005 est.)—9.26 births/1,000 population. Death rate (July 2005 est.)—12.71 deaths/1,000 population.

Work force (2003, 41,708):

Private sector—37,949. Public sector—3,759. Services—83.5%. Banking—23.43%. Tourism and hotel—11.64%. Retail—4.92%. Construction and public works—32.02%. Industry—6.98%.

Government

Type:

Constitutional monarchy.

Constitution:

December 17, 1962 (amended in April 2002).

Branches:

Executive—Prince Albert II (chief of state). Legislative—National Council (24 members). Judicial—Court of First Instance, Court of Appeal, High Court of Appeal, Criminal Court, Supreme Court.

Subdivisions:

Four quarters (quartiers)—Monaco-Ville, La Condamine, Monte-Carlo, Fontvieille.

Political parties:

Union pour Monaco (UPM), National and Democratic Union (UND), Parti Monégasque (PM).

Suffrage:

Universal adult at age 18.

Economy

GDP:

Monaco does not publish economic figures such as gross domestic product, though estimates placed purchasing power parity GDP at $870 million in 2000.

Avg. annual growth rate (2003 est.):

1.89%.

Per capita purchasing power parity GDP (2000 est.):

$27,000.

Agriculture:

None.

Industry:

Types—tourism, construction, chemicals, food products, plastics, precision instruments, cosmetics, ceramics.

Trade:

Imports (2003)—about $513 million (416,348,096 euros). Exports (2003)—about $644 million (522,976,329 euros).

Currency:

Monaco, along with France and the other 11 members of the European Monetary Union (EMU), adopted the euro as its official currency on January 1, 2002. As in other EMU states, Euros minted in Monaco have special Monegasque features on one side of the coin.

GEOGRAPHY

The Principality of Monaco is the second-smallest independent state in the world, after the Holy See (Vatican City). It is located on the Mediterranean coast, 18 kilometers (11 mi.) east of Nice, France, and is surrounded on three sides by France. Monaco is divided into four sections: 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; and Fontvieille, a newly constructed area reclaimed from the sea.

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

PEOPLE

In July 2005, Monaco's population was estimated at 32,409, with an estimated average growth rate of 0.43%.

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

HISTORY

Founded in 1215 as a colony of Genoa, Monaco has been ruled by the House of Grimaldi since 1297, except when under French control from 1789 to 1814. Designated as a protectorate of Sardinia from 1815 until 1860 by the Treaty of Vienna, Monaco's sovereignty was recognized by the Franco-Monegasque Treaty of 1861. The Prince of Monaco was an absolute ruler until a constitution was promulgated in 1911.

In July 1918, a treaty was signed providing for limited French protection over Monaco. The treaty, formally noted in the Treaty of Versailles, established that Monegasque policy would be aligned with French political, military, and economic interests.

A new constitution, proclaimed in 1962, abolished capital punishment, provided for female suffrage, and established a Supreme Court to guarantee fundamental liberties.

In 1993, Monaco became an official member of the United Nations with full voting rights. It joined the Council of Europe in 2004.

Three months after the death of his father, Prince Rainier III, on April 6, Prince Albert II formally acceded to the throne on July 12, 2005.

GOVERNMENT AND POLITICAL CONDITIONS

Monaco has been governed as a constitutional monarchy since 1911, with the Prince as chief of state. The executive branch consists of a Minister of State (head of government), who presides over a five-member Council of Government (cabinet). The Minister of State, who is a French citizen appointed by the Prince for a 3-year term from among several senior French civil servants proposed by the French Government, is responsible for foreign relations. As the Prince's representative, the Minister of State also directs the executive services, commands the police, and presides (with voting powers) over the Council of Government. The five members of the Council are respectively responsible for internal affairs, external affairs, the environment, finance and economy, and social affairs and health.

Under the 1962 constitution, the Prince shares his power with the unicameral National Council. Sixteen of the 24 members of this legislative body are elected by list majority system, and 8 by proportional representation to serve 5-year terms. The elections were last held on February 9, 2003, and will be held next in February 2008. If the Prince dissolves the National Council, new elections must be held within 3 months. Usually meeting twice annually, the Council votes on the budget and endorses laws proposed by the Prince.

Ordinances passed by the National Council are debated in the Council of Government, as are the ministerial decrees signed by the Minister of State. Once approved, the ordinances must be submitted to the Prince within 80 days for his signature, which makes them legally enforceable. If he does not express opposition within 10 days of submission, they become valid.

Judicial power is invested in the Prince, who delegates judicial procedures to the various courts, which dispense justice in his name. The independence of the judges is guaranteed by the constitution. The Supreme Court is composed of five chief members and two assistant judges named by the Prince on the basis of nominations by the National Council and other government bodies. The Supreme Court is the highest court for judicial appeals and also interprets the constitution when necessary. Monaco's legal system, closely related to that of France, is patterned after the Napoleonic Code.

The principality's local affairs (the administration of the four quarters of Monaco-Ville, La Condamine, Monte Carlo, and Fontvieille) are directed by the Communal Council, which consists of 15 elected members and is presided over by the Mayor.

Principal Government Officials

Last Updated: 8/5/2005

Chief of State: ALBERT II, Prince
Min. of State: Jean-Paul PROUST
Min. of Economy & Finance: Franck BIANCHERI
Min. of Environmental Affairs & Town
Planning: Gilles TONELLI
Min. of External Relations: Rainier IMPERTI
Min. of Social Affairs & Health: Denis RAVERA
Permanent Representative to the UN: Gilles NOGHES

ECONOMY

Monaco, located on the Mediterranean coast, has an economy primarily geared toward finance, commerce, and tourism. Low taxes have drawn many foreign companies to Monaco; the companies' production accounts for around 50% of the 593 million annual government income (2002). The enterprises pay a 33.33% tax only if more than 25% of their revenue is generated abroad. Ever since Monaco's famed casino opened in 1856, the tourism industry has been booming. It currently accounts for close to 25% of the annual revenue.

Customs, postal services, telecommunications, and banking in Monaco are governed by an economic and customs union with France. The official currency is the euro.

Though official economic statistics are not published, 2000 estimates placed the national product at $870 million and the per capita income at $27,000. Monaco does not publish the figures for unemployment, but in 1998 the rate was estimated to be at 3.1%.

Monaco is noted for its activity in the field of marine sciences. Its Oceanographic Museum, formerly directed by Jacques Cousteau, is one of the most renowned institutions of its kind in the world. Monaco imports and exports products and services from all over the world. There is no commercial agriculture in Monaco.

FOREIGN RELATIONS

Monaco actively participates in the United Nations, which it joined in 1993. Monaco joined the Council of Europe on October 4, 2004. Monaco also is a member of many international and intergovernmental organizations, including Interpol, the UN Educational, Scientific, and Cultural Organization (UNESCO), and the World Health Organization (WHO). The International Hydrographic Bureau (IHB) is headquartered in Monaco.

The Principality of Monaco is a sovereign and independent state, linked closely to France by the Treaty of July 1918, which was formally noted in Article 436 of the Treaty of Versailles of 1919. The foreign policy of Monaco is one illustration of this accord: France has agreed to defend the independence and sovereignty of Monaco, while the Monegasque Government has agreed to exercise its sovereign

rights in conformity with French interests. Since then, the relations between the sovereign states of France and Monaco have been further defined in the Treaty of 1945 and the Agreement of 1963.

In 2002, Monaco renegotiated its 1918 treaty with France. The revised treaty has not yet been ratified by the French Senate and entered into force. The terms of the new treaty would:

• Upgrade France's representation in Monaco from Consulate General to that of an embassy;
• Permit, for the first time, other countries to accredit ambassadors to Monaco; and
• Formally recognize the succession scheme set out in the 1962 Constitution, which extends eligibility to the Prince's daughters and other family members.

Although not a member of the European Union (EU), Monaco is closely associated with the economic apparatus of the EU through its customs union with France and its reliance upon the euro as its official currency.

Monaco has 10 diplomatic missions in Western Europe and permanent representation at the United Nations and the Council of Europe. It maintains honorary consulates in 106 cities in 45 countries. Seventy-four countries have consulates general, consulates, or honorary consulates in or accredited to Monaco.

U.S.-MONACO RELATIONS

The United States and Monaco enjoy excellent relations, which both countries seek to maintain and strengthen. From 1956 until her death in 1982, the American-born Grace Kelly was married to Prince Rainier III, Prince Albert's father. The United States does not have a diplomatic mission located in Monaco. The U.S. Consul General in Marseille, France, under the authority of the U.S. Ambassador to France, is formally accredited to Monaco.

Principal U.S. Embassy Officials

MARSEILLE (CG) Address: Place Varian Fry, 13286 Marseille France; APO/FPO: PSC 116 MARS APO AE 09777; Phone: 33 491 54 9200; Fax: 33 491 55 09 47; Workweek: Monday-Friday, 8:30-5:00.

TRAVEL

Consular Information Sheet–France

June 21, 2005

Country Description:

France is a developed and stable democracy with a modern economy. Monaco is a developed constitutional monarchy. Tour-ist facilities are widely available.

Entry/Exit Requirements:

A passport is required for entry to France and Monaco. A visa is not required for tourist/business stays up to 90 days in France and Monaco. That period begins when you enter any of the Schengen group of countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, and Sweden. For further information concerning entry requirements for France, travelers may contact the Embassy of France at 4101 Reservoir Road, N.W., Washington, D.C. 20007, tel. (202) 944-6000, or the French Consulates General in Atlanta, Boston, Chicago, Houston, Los Angeles, Miami, New Orleans, New York, or San Francisco. For further information on entry requirements to Monaco, travelers may contact the Consulate General of Monaco at 565 5th Avenue, New York, N.Y. 10017, tel. (212) 759-5227. The Consulate General's web site is http://www.monaco-consulate.com.

Safety and Security:

The Government of France maintains a threat level program called "Vigipirate" which is similar to the U.S. Homeland Security Advisory System. Under this plan, in times of heightened security concerns, the government mobilizes police and armed forces at airports, train and metro stations, and other high-profile locations such as schools, embassies, and government installations. Over the last year, arrests have been made in France in connection with various possible Islamic extremist terrorist plots. Like other countries that are members of the Schengen Agreement of free cross-border movement, France's open borders with its European neighbors allow the possibility for terrorist groups to enter/exit the country with anonymity. American citizens should remain alert and vigilant, and report any suspect packages or suspicious activities to local police. All passengers on subways and trains are urged to be aware of their surroundings and to report any unattended baggage to the nearest authority.

In the past, political assassinations and random bombings have occurred in France. The National Front for the Liberation of Corsica (FLNC), as part of its decades long bombing campaign on the island of Corsica, continues to conduct limited operations in the south of France and on Corsica. Corsican groups occasionally detonate small bombs at government institutions, banks, travel agencies, etc. Americans have not been specifically targeted in Corsican bombing incidents.

Although violent civil disorder is rare in France, in the past, student demonstrations, labor protests, and other routine demonstrations have turned into violent confrontations between demonstrators and police. Americans are advised to avoid street demonstrations.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov, where the current Travel Warnings and Public Announcements, including the Worldwide Caution Public Announcement, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or, for callers outside the U.S. and Canada, a regular toll line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime:

While both France and Monaco have relatively low rates of violent crime, a limited number of neighborhoods in the larger French cities merit extra caution. Additionally, although the overall crime rate has fallen slightly in recent years, the volume of crimes involving violence has increased in France. Thieves commonly target vehicles with non-local license plates and work in or near tourist attractions such as museums, monuments, restaurants, hotels, beaches, trains, train stations, airports, and subways. Americans in France and Monaco should be particularly alert to pickpockets in train stations and subways. Photocopies of travel documents and credit cards should be kept separate from the originals.

Although thieves may operate anywhere, the U.S. Embassy in Paris receives frequent reports of theft from several areas in particular.

Paris:

The Paris Police Prefecture has published a pamphlet entitled "Feeling Safe in Paris," which provides practical advice and useful telephone numbers for visitors and can be accessed at http://www.prefecture-police-paris.interieur.gouv.fr/feeling_safe_in_paris.htm. Gangs of thieves operate on the rail link (RER) from Charles de Gaulle Airport to downtown Paris, where they prey on jet-lagged, luggage-burdened tour-ists. In one common ruse, a thief distracts a tourist with a question about directions, while an accomplice steals a momentarily unguarded backpack, briefcase, or purse. Thieves also time their thefts to coincide with train stops so they may quickly exit the car. Travelers may wish to consider taking a bus or taxi from the airport into the city.

Reports of stolen purses, briefcases and carry-on bags at Charles de Gaulle Airport have been on the rise. Travelers should monitor their bags at all times and never leave them unattended. As thieves commonly target laptop bags, travelers should avoid carrying passports and other valuables in computer bags. Unattended bags are subject to destruction by airport security.

There have been reports of robberies in which thieves on motorcycles reach into a moving car by opening the car door or reaching through an open window to steal purses and other bags visible inside. The same technique is used against pedestrians walking with purses/bags/cameras slung over their street-side shoulder. Those traveling by car should remember to keep the windows up and the doors locked.

Many thefts occur on the Number One Subway Line, which runs through the center of Paris by many major tourist attractions (including the Grand Arch at La Defense, the Arc de Triomphe, the Champs Elysees, Place de la Concorde, the Louvre, and the Bastille). Pickpockets are especially active on this metro line during the summer months and use a number of techniques. The most common, and unfortunately the most successful, is the simple "bump and snatch," where an individual bumps into the tourist while at the same time reaching into the pockets/purse/bag. Visitors should be particularly careful when metro doors are closing, as this is a favored moment for the less-sophisticated pickpockets to simply grab valuables and jump through the closing doors, leaving the victim helplessly watching as the thief flees. Visitors are encouraged NOT to aggressively confront thieves, who often operate in groups and may become violent if cornered. Simply drawing attention to an attempted theft will most likely stop the operation and cause a tactical withdrawal by the thief.

Gare du Nord train station, where the express trains from the airport arrive in Paris, is also a high-risk area for pickpocketing and theft. Travelers should also beware of thefts that occur on both overnight and day trains, especially on trains originating in Spain, Italy, and Belgium. Additionally, several sexual assaults involving American citizens have occurred in recent years in the immediate vicinity of the Gare du Nord train station.

Thefts also occur at the major department stores (Galeries Lafayette, Printemps, and Samaritaine) where tourists often place wallets, passports, and credit cards on cashier counters during transactions.

In hotels, thieves target lobbies and breakfast rooms, and take advantage of a minute of inattention to snatch jackets, purses, and backpacks. While many hotels do have safety latches that allow guests to secure their rooms from inside, this feature is not as universal as it is in the United States. If no chain or latch is present, a chair placed up against the door and wedged under the handle is usually an effective obstacle to surreptitious entry during the night. There are, however, reports of thieves breaking into hotel rooms on lower floors through open windows while the occupants are sleeping. To guard against this, hotel room windows should be kept locked at all times. There have been reports of thieves stealing safes from rooms in Parisian hotels. Whenever possible, valuables should be kept in the hotel safe behind the reception desk rather than in the room safe.

Many Americans have reported thefts occurring in restaurants and nightclubs/bars, where purses are stolen from the back of a chair or from under the table.

ATMs (Automatic Teller Machines) are very common in France and provide ready access to cash, allowing travelers to carry as much money as they need for each day. The rates are competitive with local exchange bureaus and an ATM transaction is easier than the cashing of travelers' checks. However, crimes committed around ATMs have been reported. Travelers should not use ATMs in isolated, unlit areas or where loiterers are present. Travelers should be especially aware of persons standing close enough to see the PIN (Personal Identification Number) being entered into the machine. Thieves often conduct successful scams by simply observing the PIN as it is entered. If the card becomes stuck, travelers should be wary of persons who offer to help or ask for the PIN to "fix" the machine. Legitimate bank employees never have a reason to ask for the PIN.

Large criminal operations in Paris involving the use of ATM machines that "eat" the user's ATM card have been reported. This most often happens during a weekend or at night when the bank is closed. The frustrated traveler often walks away after unsuccessfully trying to retrieve the card, with plans to return the first day the bank is open. In such cases, a criminal gang has modified the machine using an add-on device equipped with a microchip that records the user's PIN number when it is typed in and also prevents the card from being ejected. The criminal retrieves the card from the device once the visitor departs, downloads the recorded PIN number and then goes to other ATMs and withdraws as much cash as possible. ATM users are strongly encouraged to carry a 24-hour emergency number for their ATM card and bank account that will enable the immediate prevention of withdrawals from the supporting account.

Pigalle is the "adult entertainment district" of Paris. Many entertainment establishments in this area engage in aggressive marketing and charge well beyond the normal rate for drinks. There have been reports of threats of violence to coerce patrons into paying exorbitant beverage tabs. Visitors are encouraged to avoid this area unless touring with a well-organized and reputable tour company.

Normandy:

There has been an increase in break-ins and thefts from vehicles in the parking lots at the Normandy beaches and American cemeteries. Valuables should not be left unattended in a car, and locking valuables in the trunk should not be considered a safeguard. Thieves often pry open car trunks to steal bags inside.

Southern France:

Thefts from cars with open windows stopped at red lights are fairly common, particularly in the Nice-Antibes-Cannes area, and in Marseille. Car doors should be kept locked and windows raised at all times to prevent incidents of "snatchand-grab" thefts. In this type of scenario, the thief is usually a passenger on a motorcycle. Similar incidents also have occurred at tollbooths and rest areas. Special caution is advised when entering and exiting a car, as this presents an opportunity for purse-snatchers. Break-ins of parked cars are also fairly common. Valuables should not be left in the car, not even in the trunk, when the vehicle is unattended.

Information for Victims of Crime:

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while over-seas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed. Under French law, compensation is available to victims of crime committed on French soil under certain circumstances.

Medical Facilities and Health Information:

Medical care comparable to that found in the United States is widely available. Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance:

The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions:

While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning France and Monaco is provided for general reference only, and it may not be totally accurate in a particular location or circumstance.

Roads in France are generally comparable to those in the United States, but traffic engineering and driving habits pose special dangers. Usually, lane markings and sign placements are not as clear as in the United States. Drivers should be prepared to make last-minute maneuvers, as most French drivers do. The French typically drive more aggressively and faster than Americans and tend to exceed posted speed limits. Right-ofway rules in France may differ from those in the United States. Drivers entering intersections from the right have priority over those on the left (unless specifically indicated otherwise), even when entering relatively large boulevards from small side streets. Many intersections in France are being replaced by traffic circles, where the right-of-way belongs to drivers in the circle.

On major highways, service stations are situated at least every 25 miles. Service stations are not as plentiful on secondary roads in France as they are in the United States. Paris, the capital and largest city in France, has an extensive and efficient public transportation system. The interconnecting system of buses, subways, and commuter rails serves more than 4 million people a day with a safety record comparable to or better than the systems of major American cities. Similar transportation systems are found in all major French cities. Between cities, France is served by an equally extensive rail service, which is reliable. High-speed rail links connect the major cities in France. Many cities are also served by frequent air service.

Visit the website of the French and Monegasque National Tourist Office at: http://franceguide.com. The web-site contains specific information concerning French and Monegasque driver's permits, vehicle inspection, road tax, and mandatory insurance.

Aviation Safety Oversight:

The U.S. Federal Aviation Administration (FAA) has assessed the Government of France's Civil Aviation Authority as being in compliance with ICAO international aviation safety standards for oversight of France's air carrier operations. For more information, travelers may visit the FAA's internet web site at www.faa.gov/avr/iasa/index.cfm.

Special Circumstances:

French and Monegasque customs authorities enforce strict regulations concerning temporary importation into or export from France of items such as firearms, antiquities, medications, business equipment, sales samples, and other items. It is advisable to contact the Embassy of France in Washington, D.C., one of France's consulates in the United States, or the Consulate General of Monaco in New York for specific information regarding customs requirements.

The emergency numbers in France for police, fire, and medical assistance are as follows: 17 (police emergency), 18 (fire department) and 15 (emergency medical/paramedic team/ambulance). In Monaco, the numbers are 17 (police emergency), 18 (fire department) and 9375-2525 (medical/paramedic team/ambulance).

Criminal Penalties:

While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating French or Monegasque laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in France or Monaco are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues:

For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy and Consulate Locations:

Americans living or traveling in France or Monaco are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within France and Monaco. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in cases of emergency.

The Consular Section of the U.S. Embassy in Paris is located at 2 Rue St. Florentin, 75001 Paris (Place de La Concorde, Metro Stop Concorde), tel. 011-33-1-43-12-22-22 or (in France) 01-43-12-22-22; fax 011-33-1-42-61-61-40. Further information can be obtained at the U.S. Embassy's web site at http://france.usembassy.gov.

The Consulate General in Marseille is located at Place Varian Fry, 13086 Marseille, tel. 011-33-4-91-54-92-00, ext. 304, or (in France) 04-91-54-92-00, ext. 304; fax 011-33-4-91-55-09-47. Website: http://france.usembassy.gov/marseille/default.htm.

The Consulate General in Strasbourg is located at 15 Avenue d'Alsace, 67082 Strasbourg, tel. 011-33-3-88-35-31-04 or (in France) 03-88-35-31-04; fax 011-33-3-88-24-06-95. The Consulate General in Strasbourg does not produce passports on the premises. American citizens in this area whose passports are lost or stolen and who have urgent travel needs should contact the U.S. Embassy in Paris. Website: http://france.usembassy.gov/strasbourg/default.htm.

The Consular Agency in Nice is located at 7, Avenue Gustave V, 3rd floor, 06000 Nice, tel. 011-33-4-93-88-89-55 or (in France) 04-93-88-89-55; fax 011-33-4-93-87-07-38. Website: http://france.usembassy.gov/marseille/nice.htm.

The U.S. Government also has consular representation in Bordeaux, Lille, Lyon, Rennes, and Toulouse that provide some services to Americans, by appointment only.

The post in Bordeaux is located at 10, place de la Bourse, 33076 Bordeaux (entry on rue Fernand Philippart); tel. 011-33-5-56-48-63-80 or 05-56-48-63-80 in France; fax: 011-33-5-56-51-61-97. Website: http://france.usembassy.gov/bordeaux/default.htm.

The post in Lille is located at 107, rue Royale, 59000 Lille; tel. 011-33-3-28-04-25-00 or 03-28-04-25-00 in France; fax: 011-33-3-20-74-88-23. Website: http://france.usembassy.gov/lille/default.htm.

The post in Lyon is located at 1, quai Jules Courmont, 69002 Lyon; tel. 011-33-4-78-38-36-88 or 04-78-38-36-88 in France; fax: 011-33-4-72-41-71-81. Website: http://france.usembassy.gov/lyon/default.htm.

The post in Rennes is located at 30, quai Duguay Trouin, 35000 Rennes; tel. 011-33-2-23-44-09-60 or 02-23-44-09-60 in France; fax: 011-33-2-99-35-00-92. Website: http://france.usembassy.gov/rennes/default.htm.

The post in Toulouse is located at 25, Allee Jean Jaures, 31000 Toulouse; tel. 011-33-5-34-41-36-50 or 05-34-41-36-50 in France; fax: 011-33-5-34-41-16-19. Website: http://france.usembassy.gov/toulouse/default.htm.