Monaco officially the Principality of Monaco, is a sovereign city-state and microstate, located on the French Riviera in Western Europe. It is the second smallest and the most densely populated country in the world. Monaco is a principality governed under a form of constitutional monarchy, with Prince Albert II as head of state. Although Prince Albert II is a constitutional monarch, he wields immense political power. The House of Grimaldi have ruled Monaco, with brief interruptions, since 1297. The official language is French, but Monégasque, Italian, and English are widely spoken and understood. Monaco has become a major banking center and has sought to diversify its economy into services and small, high-value-added, non-polluting industries. The state has no income tax, low business taxes, and is well known for being a tax haven. It is also the host of the annual street circuit motor race Monaco Grand Prix, one of the original Grands Prix of Formula One.