Government. Until 1910, the Principality of Monaco was governed by an absolute monarchy. In 1911 Prince Albert I promulgated the first constitution, which was modified in 1917. It was modified again in 1933 by Prince Louis II, and other reforms were made by Prince Rainier III in 1962. Monaco's refusal to impost tax on its residents and international businesses led to a severe crisis with France in 1962. This crisis led to a compromise in which it was agreed that French citizens with less than five years of residence in Monaco would be taxed at French rates and companies doing more than 25 percent of their business outside the principality. Another result of the crisis was the creation of a new, more liberal constitution ad the restoration of the National Council. The constitution provides that executive power is under the authority of the reigning prince. Succession to the throne passes to the direct and legitimate descendants of the prince, with male descendants taking precedence over female. The prince represents Monaco in its foreign relations and signs and ratifies treaties. The prince nominates a Council of Government, consisting of a minister of state and three government councilors, one each for finance and economy, the interior, and public works and social affairs. The Minister of State is a French Citizen, appointed by the prince, and selected for a three-year term a from a group of senior French civil servants selected by the French government. The Minister of State is in charge of foreign relations and, as the prince's representative, directs executive services, the police and the Council of Government. Under the Council of Government's authority is the eighteen-member National Council. Members of the National Council are elected for five years by direct vote based on a system of proportional representation. Eligible voters must be over the age of twenty-one and hold Monegasque citizenship for more than five years. The new constitution of 1962 gave the right to vote to women, established a Supreme Court to guarantee fundamental rights, and abolished the death penalty.
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