History of Monaco: From the Ligurian Rock to the Ultra-Modern City-State

Published on January 17, 2026 and written by Cyril Jarnias

Behind the postcard image – yachts, skyscrapers, and the Grand Prix – the history of Monaco is that of a tiny territory that survived empires, revolutions, and two world wars by playing its strategic position with remarkable skill. From the ancient sanctuary dedicated to Hercules to today’s financial principality, the common thread remains the same ruling family: the Grimaldis, in almost uninterrupted command for over seven centuries.

The Origins: From Monoikos to the Genoese Fortress

Long before the arrival of the Grimaldis, the rock overlooking what is now Port Hercule served as a refuge for ancient human communities. Prehistoric excavations have revealed occupation of the site several hundred thousand years ago, notably during the era of “Grimaldi Man,” around 30,000 BCE. This ancient link to the past is now showcased by the Museum of Prehistoric Anthropology, founded in the early 20th century and integrated into the Exotic Garden since 1959.

In the 6th century BCE, Greeks from Massalia (Marseille) in turn founded a colony, Monoikos. They associated the place with the demigod Heracles (Hercules), whose legend tells that he opened an ancient path between Spain and Italy along this rugged coast. A temple is said to have been dedicated to him on the rock, and the port took the name Port Hercule. Ancient authors – Strabo, Diodorus Siculus, Virgil, even Julius Caesar himself – mention this fortified promontory, which they describe as a “fortified rocky spur by the sea.”

The medieval turning point came when, in 1191, Emperor Henry VI of the Holy Roman Empire granted suzerainty over Monaco to the Republic of Genoa. The Genoese, seeking footholds to secure their maritime routes and fight piracy, decided to establish a stronghold there.

On June 10, 1215, a detachment of Genoese Ghibellines led by Fulco del Cassello began construction of a fortress atop the rock. To attract settlers and support the garrison, the Genoese authorities granted free land and tax exemptions. This was the birth of “modern” Monaco: a fortified rock, controlling a natural harbor, halfway between Nice and Ventimiglia.

The Arrival of the Grimaldis: A Takeover Disguised as Prayer

The Grimaldi family, originating from the Genoese nobility, was initially one of the great lineages of the Ligurian city. They are descended from Otto Canella and his son Grimaldo, a consul of Genoa in the 12th century. Politically, they belonged to the Guelph faction, aligned with the pope and allied with families like the Fieschi, against the Ghibellines, who favored the emperor.

In the 1260s, the Guelphs were driven from Genoa and took refuge in their castles in Liguria and Provence. It is in this context of civil wars that the Grimaldis turned to the small rock of Monaco as a fallback base and strategic springboard.

The founding scene, which has entered legend, took place in January 1297. Francesco (François) Grimaldi, nicknamed “Malizia” – the cunning one – presented himself with a few men at the fortress gate, disguised as a Franciscan monk. The soldiers opened up, believing they were welcoming clerics. The fake monks then drew swords hidden under their habits, overpowered the garrison, and seized the rock. This spectacular episode marks the beginning of the Grimaldi takeover of Monaco.

Francesco ‘Malizia’ Grimaldi

The memory of this coup is everywhere: the Grimaldi coat of arms is flanked by two Franciscan friars armed with a sword, and a statue of François Grimaldi in monk’s attire stands in the Palace Square. This event is also at the heart of the celebrations for the dynasty’s 700th anniversary in 1997.

But the Grimaldi hold was not yet definitive. In the 14th century, the struggle for control of the rock continued, against a backdrop of rivalries between Genoa, the Crown of Aragon, and later, Spain. The Grimaldis were expelled and reinstated several times.

From a Scattered Lordship to a Small Territorial State

Gradually, the Grimaldi lords consolidated their position. Charles I, grandson of François, played a central role. In 1338, ships from Monaco under his command participated, alongside French and Genoese fleets, in a naval campaign in the English Channel; part of the spoils from the sack of Southampton came back to Monaco, contributing to its prosperity.

In 1419, a decisive step was taken: the family formally purchased Monaco from the Crown of Aragon, which had taken over from Genoa in the region. From this date, the Grimaldis became full-fledged sovereigns, rather than mere lords more or less tolerated by the great power of the moment.

Historiography often considers 1419 as Monaco’s year of “independence,” although the reality is more nuanced: for centuries, the small lordship had to deal with successive protectors (Aragon, Spain, France, Sardinia), whose military guarantee it sought in exchange for strong influence over its politics.

Alliances for Survival: Between Spain, France, and Sardinia

Monaco’s position – a chokepoint on the coast between Nice and the Italian border – made it an interesting piece on the Mediterranean chessboard, but also a territory too small to stand alone. The Grimaldi strategy, therefore, was early on to lean on a major protector while negotiating their internal autonomy as best they could.

In the 16th century, the House of Habsburg dominated the western Mediterranean. By the Treaty of Burgos (1524), Monaco was placed, with a certain degree of autonomy, under Spanish authority. A Spanish garrison was installed in the fortress. For nearly a century, the principality was thus in Madrid’s orbit.

This model – internal sovereignty, military protection, and strong political influence from the protecting power – would recur several times. After the French Revolution and the Napoleonic period, Monaco was integrated into the department of Alpes-Maritimes in 1793. The palace became a hospital and hospice, assets were seized and sold, the princely family was imprisoned before being released. In 1814-1815, the fall of Napoleon allowed the restoration of the principality, but the Congress of Vienna placed Monaco under the protectorate of the Kingdom of Sardinia (confirmed by the Treaty of Stupinigi in 1817). Italian was then the official language, and the Savoy dynasty kept a close watch on this tiny neighbor.

A compromise was found in 1861: by the Franco-Monegasque treaty of February 2, Charles III agreed to renounce his rights to Menton and Roquebrune in exchange for 4.1 million francs and, above all, France’s formal recognition of Monaco’s sovereignty. The price was considerable: the principality lost about 95% of its pre-1848 territory, shrinking to a coastal strip of less than 1.5 km². But it gained an international existence guaranteed by its powerful neighbor, which would henceforth assume its defense.

From Fortified Rock to Casino: The 19th-Century Tourist Revolution

Within this new framework, tightly linked to France and free of the Menton-Roquebrune issue, Monaco’s challenge in the 19th century was economic. After losing its most dynamic towns, the very poor principality had to find a development model on a microscopic territory.

An idea emerged during the reign of Florestan I: to open a gaming establishment to attract a wealthy clientele, following the model of German casinos. Implementation was delayed, hindered by restrictions under Louis-Philippe’s regime. It was ultimately under Charles III, who ascended the throne in 1856, that the project materialized.

Within a few years, the SBM built the Monte Carlo Casino (opened in the early 1860s), the Hôtel de Paris (inaugurated in 1864), and then many hotels and facilities. The architect Charles Garnier, future creator of the Paris Opera, was called upon to design the opera house (Salle Garnier) and expand the casino. The railway line between Nice and Genoa provided quick access for European high society. Gaming revenues soared.

By 1869, success was such that the principality could afford a spectacular gesture: the abolition of all direct taxes for its residents. From this date, neither income tax nor wealth tax has been levied on individuals (except specific provisions for French nationals). The combination of a mild climate, spectacular scenery, non-existent taxation, and a world-renowned gaming establishment transformed Monaco into a privileged destination for the aristocracy and, later, the wealthy.

The SBM became the principality’s economic arm: over the decades, it financed in return a large part of the infrastructure – roads, gardens, hotels, cultural facilities. This model, born in the second half of the 19th century, remained at the heart of the Monegasque economy to this day, even though the principality would later diversify significantly.

Revolution, Constitution, and French Tutelage: The Turn of the 20th Century

While during the Belle Époque Monaco benefited from the tourism boom and the casino, World War I and the crisis of the 1930s revealed the fragility of a model dependent on an elite’s leisure. Moreover, politically, the principality was still at the beginning of the 20th century a near-absolute monarchy.

This modernization remained limited: during World War I, Albert I suspended the Constitution. The link with France was further strengthened by the treaty of 1918, integrated the following year into the Treaty of Versailles. This text, signed in a context of a succession crisis (the prospect of a prince from a German branch inheriting the throne worried Paris), effectively placed Monaco’s foreign policy in alignment with French interests. It also stipulated that France would protect the principality and that any dynastic evolution must be compatible with its interests.

Storm Under the Rock: Monaco During World War II

When World War II broke out, Prince Louis II, a former officer in the French army and close to Marshal Pétain, sought to maintain a fragile neutrality. Monaco, tiny and unarmed, was caught in a vise between a France at war, a population mostly of Italian origin, and fascist appetites.

The principality closed its casino, monitored supporters of Mussolini, and tried to control internal tensions. In June 1940, Italy entered the war, and the French Riviera became a sensitive area. The agreements signed with France in 1918 provided that French troops could be stationed in Monaco; several hundred soldiers were deployed there at the start of the conflict.

After the occupation of southern France by Italian troops, Monaco was officially invaded on November 11, 1942, by the army of Rome. The fascist authorities claimed to be reacting to the presence of French defense installations and the opening of an American consulate. A puppet administration was installed, opponents were arrested, but the casino remained oddly open, a symbol of a form of business continuity.

In September 1943, the fall of Mussolini and the Italian armistice reshuffled the cards. German forces immediately moved into the principality, set up their headquarters at the Hôtel de Paris, and turned Monaco into a discreet financial platform: over 300 shell companies and a German bank were established there for money laundering operations. The Monegasque authorities, under the leadership of Minister of State Émile Roblot, collaborated with the occupiers, arguing it was to preserve relatively “privileged” treatment for the population.

Monegasque resistance fighters also paid a heavy price: René Borghini, Joseph-Henri Lajoux, and Esther Poggio were executed by the Germans in August 1944. German troops left Monaco in early September, and the principality was liberated on September 3, 1944, by Allied forces and the FFI. This date became the National Day. However, no major purge trials took place in Monaco after the war, which would fuel historical debates for a long time.

It would take the reign of Albert II for a strong symbolic gesture to be made: on August 27, 2015, the prince publicly presented the apologies of the Monegasque state for its participation in the deportations and inaugurated a monument bearing the names of the victims at the Monaco cemetery.

The “Builder Prince”: Rainier III and the Invention of Contemporary Monaco

Upon the death of Louis II in 1949, his grandson Rainier III ascended the throne. He was barely 25, had military experience gained with the Free French in Alsace, and inherited a bled-dry country. World War II had broken the pre-1939 tourism model, the European aristocracy no longer had the same means, the main bank in the principality collapsed in the mid-1950s. The state’s treasury was almost empty.

Politically, he had a new Constitution adopted in 1962 which abolished the death penalty, introduced women’s suffrage, strengthened public freedoms, and created a Supreme Court responsible for ensuring respect for rights and the constitutional text. The prince did not relinquish his prerogatives – he retained the executive, appointed the government, shared legislative initiative with the National Council – but he further framed the functioning of political life.

Gaining on the Sea What Was Lost on Land

The second pillar of Rainier III’s action was urban planning. Monaco had lost nearly 80 to 95% of its territory in the 19th century and had to contend with an enclave of a few hundred hectares wedged between the mountain and the Mediterranean. To house a growing population and accommodate businesses, hotels, and facilities, the prince launched an ambitious policy of land reclamation from the sea.

This strategy of horizontal growth was accompanied, in a second phase, by a verticalization of construction. After a period where Rainier III limited building heights, his successor Albert II would later lift this restriction to address housing pressures, authorizing towers like the “Odeon Tower.” But the spirit remains the same: every square meter counts and must be optimized.

Table – Evolution of Area and Population

Year (reference)	Approximate Area (km²)	Estimated Population	Density (inhab./km²)
1861	1.45	~5,000 (order of magnitude)	~3,450
1960	1.95–2.00 (with first landfills)	21,808	~11,000
2000	2.02	32,455	~16,000
2010	2.02	33,163	~16,400
2024	2.08 (with Mareterra)	38,631	~18,600

This data, from the series of the Monegasque Institute of Statistics and Economic Studies (IMSEE) and various international sources, shows the Monegasque equation: a density already very high by the end of the 20th century and a population that continues to grow, forcing the state to push land reclamation and verticality ever further.

Diversifying the Economy: From Sole Casino to Financial Center

While the casino remains the symbol, the principality’s economy has long ceased to be limited to the roulette wheel and gaming tables. Under Rainier III and then Albert II, Monaco positioned itself as a high-end service hub: private banking, wealth management, insurance, prestige real estate, events, and business tourism.

This rise in power came with a controversial reputation: that of a tax haven and, sometimes, a place lenient towards money laundering. Since the late 1990s, the OECD, the Financial Action Task Force (FATF), and the IMF have pointed out shortcomings in tax cooperation and anti-money laundering efforts. Monaco reacted gradually: adoption of anti-money laundering laws, strengthening of the SICCFIN control authority’s means, signing of tax information exchange agreements with several states.

Constitutional Monarchy: A Framed but Very Real Sovereignty

Politically, the recent history of Monaco is marked by the progressive affirmation of a constitutional monarchy, whose stability is one of its assets. The 1962 fundamental text, revised in 2002, is one of the shortest in the world, but it clearly sets out the distribution of powers: the prince holds the executive, appoints the Minister of State (who can be French or Monegasque since 2002), chairs the Council of Government, and shares legislative power with the National Council.

On the international scale, Monaco long remained discreet. An observer at the UN since the 1950s, a member of the Council of Europe since 2004, of the International Organization of La Francophonie since the 1970s, the principality became a full member of the UN in 1993. Its foreign policy is conducted by a dedicated department but remains, by virtue of the treaties of 1918 and 2002, coordinated with the “fundamental interests” of France, which still ensures the military defense of the territory.

A Singular Society: Micro-State, Maxi-Diversity

One constant in Monegasque history is the gap between the smallness of the territory and the strong diversity of its population. Since the 19th century, the principality has attracted foreigners. This phenomenon intensified in the 20th century with the combination of advantageous taxation, climate, and prestige. The result: native Monegasques long represented barely 10% of residents. In 1962, the French constituted nearly 60% of the population, Italians about 20%, and Monegasques remained a minority.

Table – Approximate Distribution by Nationality (2024)

Main Nationality	Estimated Share of Total Population
Monegasque	~24%
French	~22%
Italian	~19–20%
British	~7–8%
Swiss	~3%
Russian	~3%
Belgian	~3% (slightly less)
German	~2.5%
Others	~20%

This diversity is accompanied by marked aging. Life expectancy is one of the highest in the world: nearly 90 years on average, over 93 years for women according to recent estimates. More than a third of the population is over 65, while those under 15 represent about 14%. The age pyramid is described as “constrictive,” typical of rich post-industrial societies where fertility is below replacement level despite a fertility rate for Monegasques above 2 children per woman.

Culture, Museums, and Memory: An Embraced Historical Anchoring

If the economy is future-oriented, the history of Monaco is also carefully staged and preserved. The Prince’s Palace, whose first stones date from the Genoese fortress of 1215, remains the emblem of dynastic continuity. It has been extensively modified over the centuries: Honoré II added a south wing in the 17th century and assembled a collection of over 700 paintings, furniture, tapestries, and silverware; Rainier III made it a year-round inhabited palace, restored the frescoes in the Hercules Gallery, and restored the building’s role as a political residence and symbol of sovereignty.

This heritage policy became institutionalized: a Heritage Council was created in 2017 to advise the government on preservation issues, and a National Archives service was established in 2025. A notable particularity, however: there is not yet a comprehensive law protecting built heritage, although 110 buildings and 41 façades are already classified as remarkable and subject to special regulations.

Albert II: Environment, Memory, and Controlled Expansion

In 2005, upon the death of Rainier III, Albert II succeeded him. His profile is very different: an Olympic athlete (bobsleigh), a university graduate, he anchored his reign on two main fields: the environmental transition and inscribing Monaco in major international forums.

Urban planning follows this orientation, without giving up territorial expansion. The new Mareterra district, a six-hectare land reclamation project to the east of the principality, is conceived as an “eco-district“: strong landscaping (about 1,000 trees planted), a coastal promenade, a moderate-sized marina, high energy-performance buildings. Inaugurated in late 2024, delivered ahead of schedule at a cost of around two billion euros, it illustrates the desire to reconcile densification and a “green” image.

On the family front, his marriage to former South African swimmer Charlène Wittstock in 2011 and the birth of twins Jacques (Marquis of Baux, heir to the throne according to male primogeniture) and Gabriella (Countess of Carladès) in 2014 emphasize dynastic continuity, which remains at the heart of the country’s identity.

A Micro-State Balancing History and Globalization

In tracing the history of Monaco, several constants emerge. First, an extreme political plasticity: from the ancient port dedicated to Heracles to the Genoese lordship, from the Spanish mark to the French protectorate, from Sardinian domination to the financial micro-state, Monaco has successively adapted to much more powerful entities, without ever renouncing a certain form of autonomy.

Second, the permanence of the same dynasty, the House of Grimaldi, plays a stabilizing role. Episodes of rupture – the French Revolution, military occupations, succession crises – were not enough to break this dynastic thread, which continues today with Albert II and his children.

Monegasque history is not only that of a rock transformed into a luxury setting; it is the much more political story of a “niche state” that knew, century after century, to slip into the interstices of empires, and then of globalization, to exist as a sovereign subject. And if the armed monks of François Grimaldi seem to belong to another era, their silhouette on the coat of arms reminds us that, to survive between giants, cunning and adaptation remain Monaco’s primary resources.