Why does Monaco Exist?

Why does Monaco Exist?

Why Does Monaco Exist?

In this video, we learn about the history of Monaco and how it managed to remain independent despite being surrounded by more powerful neighbors.

The House of Grimaldi's Plan

  • Monaco has existed as an independent entity since the 13th century.
  • The ruling house of Grimaldi had one objective - don't get conquered.
  • To achieve this, they placed themselves under the protection and vassalage of their much more powerful neighbors.

Becoming a French Protectorate

  • In the early 17th century, Monaco's rulers approached the French King for protection.
  • After being incorporated into France during the French Republic in 1793, Monaco was restored to its independence in 1814.
  • The king of Sardinia was unhappy with this arrangement and made Monaco a Sardinian protectorate.

Puppet State Status

  • This decision saved Monaco from becoming part of another country as there was no need for Sardinia to conquer it.
  • After most of its land was lost, Monaco needed to find other ways to make money and did so via gambling and later on evasive accounting.
  • Charles Digeon closed the border with Monaco due to his citizens dodging taxes there.

Deal with France

  • The Prince of Monaco made a deal with France where they would clamp down on French dodging taxes in Monaco and France would calm down.
  • This worked, and thereafter Monaco's independence was secure so long as it didn't act against France's interests.