Why isn't Monaco ruled by a king?

The magazine Ça m’intéresse outlined the Principality’s history to explain the reasons behind this kingless monarchy.

Monaco has a solid reputation, both for its financial landscape and its glamour. Over the last few decades, the Principality has become a real treasure. With a footprint of just 2 km², the micro-State is the second smallest country in the world, just behind the Vatican. What sets it apart in particular is its status as a Principality, governed by a Prince.

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“Theoretically, when a prince comes to power, he becomes king. However, this rule does not apply to Monaco, because of one particular detail,” Ça m’intéresse points out. The magazine provides a historical explanation for this subtlety.

The Prince never becomes king

The history of Monaco dates back to 1297, when François Grimaldi, known as ‘Il Malizia’, seized a fortress held by the Ghibellines. Since then, the Grimaldi family has held power over the territory.

Despite its long history, Monaco remains a fragile state facing external threats. “Through treaties, Monaco is under the protection of France,” the magazine reports. These treaties are the reason the Principality is ruled by a Prince. “So as not to offend these diplomatic relations, the sovereigns are Princes of Monaco under the protection of only one king: the king of France.”

The independence of a micro-State

Monaco’s position as an independent state is sometimes misinterpreted. Ça m’intéresse also outlined the development of the region. Despite its status as a principality, Monaco’s independence was recognised in 1489, when the King of France, Charles VIII, declared it an independent state.

On the other hand, Monaco shares certain cultural, economic and political links with France, notably currency, language and the Schengen area. The two countries also strengthened their cooperation when they signed a friendship treaty in 2002.

Monaco, one of the richest states in the world

Monaco’s rise is not just about its history and politics, but extends to its flourishing economy. As we described in a previous article, Monaco is a magnet for entrepreneurs. Although famous for its casinos, yachts and luxury boutiques, the Principality also boasts a diversified economy, including industry, tourism, real estate and luxury hotels. With its favourable tax system for residents, Monaco attracts the world’s wealthiest.

Nevertheless, a state needs revenue to fund itself. As a result, “the principality earns money through several aspects such as industry, VAT and legal transactions,” Ça m’intéresse notes. Today, the Principality’s GDP per capita is one of the most impressive in the world, at 234,315 dollars in 2021 according to the World Bank.