Why didn't France annex Monaco, but made it independent?

Monaco is independent because of its superior conditions and rich economy.

After reaching an agreement with France on political, military and economic issues, Monaco entered a period of rapid development by virtue of its geographical location and policy advantages. Monaco is located on the northern shore of the Mediterranean. Its dry climate, sunny weather and superior climatic and geographical conditions attract many tourists from France and all over the world. Tourism plays a huge role in Monaco and is the cornerstone of the development of the whole country. Attracted by geographical advantages, tourism in southern France is booming, including Provence, Cannes, Marseille and avignon, which are all popular areas for French tourists. Together with Monaco, they established the strongest position of French tourism.

The prosperity of tourism has brought considerable traffic flow to Monaco. With the soaring traffic, they can accurately seize the opportunity to further expand the local income sources. The game industry is one of their best answers. Casinos in Monaco attract thousands of fans every year, and the lucrative game industry has created a lot of wealth for Monaco. Monaco's wealth goes far beyond this. The controllable geographical area and population size provide good congenital conditions for Monaco to create a highly free financial environment. The Bank of Monaco can provide professional and prudent personal asset management services to customers, which has been welcomed by many tycoons. In addition to providing services to financial institutions, the government has also taken advantage of this situation to increase the exemption of personal income tax, which has also injected a strong attraction for Monaco to attract foreign investment.

Monaco does not have the conditions to become a member of the European Union, because its diplomatic and military sovereignty has been entrusted to France. However, due to the customs union with France, the French euro is used in China. In the planning, Monaco is also part of France. All these have created extremely convenient trade conditions between Monaco and EU countries. France's free aid is nothing more than to use Monaco's resources to open up more room for development, but Monaco's growing strength has obviously contributed to its attitude of not joining France. Although the merger has no result, various compromises and mutual games have actually promoted the deeper integration of the two sides in a subtle way.