Quick Answer: Monaco, officially the Principality of Monaco, is a sovereign city-state and microstate in Western Europe. Situated on the French Riviera, it is a semi-enclave bordered by France to the north, east, and west, with the Mediterranean Sea to the south; the Italian region of Liguria is about 15 km east. With a population of 38,423 living in an area of 2.08 km², Monaco is the second smallest sovereign state in the world, after Vatican City, as well as the most densely populated. It also has the world's shortest national coastline of any non-landlocked nation, at 3.83 km. Fewer than 10,000 of its residents are Monégasque nationals. Although French is the official language of Monaco, Italian and Monégasque are also widely spoken and understood. Monaco is governed under a form of semi-constitutional monarchy, with Prince Albert II as head of state, who holds substantial political powers.