Valletta, Malta

Capital City

With a population of just 5,197, Valletta is the European Union's smallest capital city. While its 16th-century Baroque architecture and status as a UNESCO World Heritage Site make it a tourist draw, the reality for residents is one of persistent bureaucracy and a hot, dry climate. The fortified city's narrow streets and high density create traffic headaches, and the occasional human crush tragedy during the annual carnival serves as a sobering reminder of the downsides of living in such a compact urban space. Valletta may appeal to those seeking a historic, picturesque setting, but its challenges are not to be underestimated.