The state is comprised of several adjoining areas. Monte-Carlo is the main recreation district and is home to an internationally famous Casino, fantastic hotels and leisure facilities. Fontvieille, which is largely built on land reclaimed from the sea, is an area for light industry and contains a tourist and sports complex and yacht harbour. Monaco-Ville is the the old fortified town and is home to the Prince's Palace, while Condamine is the main harbour, commercial and residential area.

The state is governed by a constitutional monarchy. Legislative authority is shared between the Prince and the National Council, which is comprised of members elected for five year terms. The executive is made up of the Prince and a small Council of Government lead by a minister for state who is appointed by the Prince from a list of three French national candidates drawn up by the French Government. The rest of the council is made up of three councillors nominated by the Prince with responsibility for Finances and the Economy, the Interior and Public Works and Social Affairs.

As a result of its customs convention with France, Monaco is fully integrated into the Euro zone and adopted the Euro as its currency in January 2002. It has also been a member of the UN since May 1993.

Economy:
Monaco has a modern and diverse economy. The state retains monopolies in several sectors such as the telephone network and the postal service but according to Monaco's Economic Development Chamber, there are approximately 4,500 companies operating in the Principality in numerous economic sectors.

Tourism is one of Monaco's main industries within the service sector, accounting for about 13 per cent of the economy. Monaco is a year round leisure and business destination and in 2001 business tourism accounted for some 33 per cent of hotel occupancy. There are extensive conference facilities, including the Forum Grimaldi Cultural and Exhibition Centre, which opened in 2000 and is one of the largest conference venues in Europe. The banking industry has expanded greatly in recent years since the removal of French foreign exchange controls in 1987. Today there are a variety of different banking establishments present in the state. According to the government of Monaco the banking sector alone represents more than 18 per cent of the state's annual turnover. Monaco is also an important centre for international trade with many of the trading companies based there providing for the import requirements of former French colonies.

Figures from the government of Monaco show that the industrial sector represents approximately 8 per cent of the state's annual turnover. The industrial sector is centred in the Fontvieille zone and is focused on small, high-value-added, non polluting industries such as chemicals, cosmetics, electronics, pharmaceuticals, plastics, printing and textiles.

Infrastructure:
Monaco has easy access to the rest of Europe via its international railway station in Monte Carlo and the access roads which link it to the A8 motorway and the European motorway system. It also benefits from two harbours, at the Condamine and Fontvieille, that are equipped to handle yachts of any tonnage. Intercontinental liners can anchor in the bay of Monaco.

Nice Cote d'Azur International Airport is just 15 miles to the west of Monaco. It caters for scheduled flights to and from numerous destinations throughout Europe and several destinations worldwide, including New York, Montreal, Dubai, Jeddah and Riyadh. The airports freight terminal is open 24 hours a day and is connected to the east-west Franco-Italian motorway network. There are regular bus and train services between Monaco and the airport and there are also daily helicopter transfers available, which complete the journey in 7 minutes.

Workforce:
According to Monaco's Employment Service, there are 39,500 people employed in the Principality. Of these, only about a quarter are resident in Monaco with the rest mainly coming from the surrounding population centres in France.

This influx of workers from France ensures that companies in Monaco enjoy access to a highly educated workforce. According to the World Competitive Yearbook 2000, public expenditure on education in France totals approximately 6 per cent of the country's GDP, outstripping both Germany and the UK, which spend about 4.6 per cent and 4.4 per cent respectively. Furthermore, some 14 per cent of 17 to 34 year olds in France enrol in Higher Education, which is more than in Spain, the Netherlands, the UK and Germany and according to the development agency, 'Invest in France', 22 per cent of the French workforce holds a university degree.

Quality of Live:
The Standard of living in the Principality of Monaco is high and the state benefits from excellent education facilities and modern health care facilities. Monaco is also regarded as a very safe place in which to live and has low levels of crime. Monaco has no personal income tax, except for certain groups of French nationals, but cost of living is relatively high.

Business Costs:
As well as having no income tax, Monaco has low business taxes which enable it to flourish as a tax haven for foreign companies that have set up businesses and offices there.

The legal minimum wage for full-time work in Monaco is equivalent to the French mimimum wage plus an extra 5 per cent, which is designed to compensate for the travel costs incurred by some three-quarters of the workforce, who commute daily from France. In 2001, the minimum wage in Monaco was approximately $6.30 per hour, according to the Monaco - Report of Human Rights Practices 2001 published by the U.S. Department of State.