The Principality of Monaco is a sovereign and independent state, linked closely to France by the Treaty of 1918, the text of which has international recognition because it is confirmed by Article 436 of the Treaty of Versailles of 1919, which instituted a contractual, bilateral, and reciprocal regime between the two states. The foreign policy of Monaco is one illustration of this accord: France has agreed to defend the independence and sovereignty of Monaco, while the Monegasque Government has agreed to exercise its sovereign rights in conformity with French interests. Since then, the relations between the sovereign states of France and Monaco have been further defined in the Treaty of 1945 and the Agreement of 1963.
Although not a member of the European Union (EU), Monaco is closely associated with the economic apparatus of the EU through its customs union with France and its reliance upon the French franc (euro as of January 1999) as its official currency.
Monaco has 10 diplomatic missions in Western Europe and a permanent representation at the United Nations. It maintains honorary consulates in 106 cities in 45 countries. Sixty-one countries have consulates general, consulates, or honorary consulates in or accredited to Monaco.