Which European microstate is the second-smallest country in the world by area? Monaco. With roughly 2 square kilometers of territory, Monaco ranks behind only Vatican City among sovereign states by area.
Monaco is a sovereign principality on the Mediterranean coast, surrounded on three sides by France. Its compact territory includes the historic Rock of Monaco, densely built urban districts, and reclaimed land along the coast. The country’s small size has contributed to exceptionally high population density and a highly urbanized landscape.
The ruling House of Grimaldi established control over Monaco in 1297, and the principality later developed a close relationship with France. Monaco’s modern boundaries and independence were reinforced by treaties, including the Franco-Monegasque Treaty of 1861. Today, it is a constitutional monarchy headed by Prince Albert II.
A frequent mistake is to confuse Monaco’s countrywide status with Monte Carlo, which is not a separate country or the national capital. Monte Carlo is one of Monaco’s famous quarters. Another qualification concerns measurement: figures can vary slightly depending on whether newly reclaimed land is included, but Monaco remains decisively larger than Vatican City and far smaller than other European microstates such as Andorra or Liechtenstein.