The Principality of Monaco has a political and institutional regime, governed by The Constitution established on December 17, 1962. The monarchy of the Principality is hereditary and constitutional. Thus, The Prince retains the highest authority and executive supremacy, which guarantees the separation of powers. Administrative responsibilities are the duties of the Minister of State, aided by the Government Council responsible to the Prince. Legislative and budgetary powers are exercised jointly by the Prince and by the National Council (Conseil National). Finally, the courts and tribunals exercise judicial power, independently.

The leadership of the Grimaldi Family over the last 700 years has laid the foundations for Monaco's contemporary pro-business orientation bringing outstanding stability to the Principality.

On 28th of May 1993, Monaco became a member state of the United Nations Organization.

On 5th October 2005, Monaco became a member state of the Council of Europe, in line with its historically strong connections to Europe.

Monaco has always stressed its role within the global community and its willingness to participate in keeping global peace and developing prosperity. Environmental issues are a major focus of its international action.

HSH Prince Albert II created an ambitious programme that will be built on the sound foundation that were created by his father HSH Rainier III. This programme does not only seek to make Monaco an exemplary place of business ethics including strict regulation of the financial sector, but it also calls for the reclaiming of some 275.000 m2 of land from the sea as well as a significant work on the preservation and improvement of the environment.

The result will be a modern and sophisticated sovereign state with the advantages of being geographically located in Europe, enjoying the benefits of the customs union with France, being a member of the European Council, but without facing some of the disadvantages which a full membership of the European Union entails.