Vatican City is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome, Italy. It has an area of approximately 44 hectares (110 acres), and a population of just over 800. The Vatican City is the world’s smallest state, being only around 44 ha (110 acres). In July 2007, the Vatican agreed to become the first carbon neutral state. They plan to accomplish this by offsetting carbon dioxide emissions with the creation of a Vatican Climate Forest in Hungary. Vatican City was established in 1929 by the Lateran Treaty, signed by Cardinal Secretary of State Pietro Gasparri, on behalf of the Holy See and by Prime Minister Benito Mussolini on behalf of the Kingdom of Italy. Vatican City State is distinct from the Holy See, which dates back to early Christianity and is the main episcopal see of 1.2 billion Latin and Eastern Catholic adherents around the globe. Ordinances of Vatican City are published in Italian; official documents of the Holy See are issued mainly in Latin. The two entities have distinct passports: the Holy See, not being a country, issues only diplomatic and service passports, whereas Vatican City State issues normal passports. In each case very few passports are issued.
The Lateran Treaty in 1929, which brought the city-state into existence, spoke of it as a new creation (Preamble and Article III), not as a vestige of the much larger Papal States (756–1870) that had previously encompassed much of central Italy. Most of this territory was absorbed into the Kingdom of Italy in 1860, and the final portion, namely the city of Rome with Lazio, ten years later, in 1870.
Vatican City is an ecclesiastical or sacerdotal-monarchical state, ruled by the Bishop of Rome – the Pope. The highest state functionaries are all Catholic clergymen of various national origins. It is the sovereign territory of the Holy See (Sancta Sedes) and the location of the Pope’s residence, referred to as the Apostolic Palace.
The Popes have generally resided in the area that in 1929 became Vatican City since the return from Avignon in 1377, but have also at times resided in the Quirinal Palace in Rome and elsewhere. Previously, they resided in the Lateran Palace on the Caelian Hill on the far side of Rome from the Vatican. Emperor Constantine gave this site to Pope Miltiades in 313. The signing of the agreements that established the new state took place in the latter building, giving rise to the name of Lateran Pacts, by which they are known.
Within the territory of Vatican City are the Vatican Gardens (Italian: Giardini Vaticani), which account for more than half of this territory. The gardens, established during the Renaissance and Baroque era, are decorated with fountains and sculptures. The gardens cover approximately 23 hectares (57 acres) which is most of the Vatican Hill. The highest point is 60 metres (200 ft) above mean sea level. Stone walls bound the area in the North, South and West. The gardens date back to medieval times when orchards and vineyards extended to the north of the Papal Apostolic Palace. In 1279 Pope Nicholas III (Giovanni Gaetano Orsini, 1277–1280) moved his residence back to the Vatican from the Lateran Palace and enclosed this area with walls. He planted an orchard (pomerium), a lawn (pratellum) and a garden (viridarium).
The Vatican City State budget includes the Vatican museums and post office and is supported financially by the sale of stamps, coins, medals and tourist mementos; by fees for admission to museums; and by publications sales. The incomes and living standards of lay workers are comparable to those of counterparts who work in the city of Rome. Other industries include printing, the production of mosaics, and the manufacture of staff uniforms.
The Vatican also conducts worldwide financial activities, having its own bank, Istituto per le Opere di Religione (also known as the Vatican Bank, and with the acronym IOR). This bank has an ATM with instructions in Latin, possibly the only such ATM in the world.
The Vatican Library and the collections of the Vatican Museums are of the highest historical, scientific and cultural importance. In 1984, the Vatican was added by UNESCO to the List of World Heritage Sites; it is the only one to consist of an entire state.
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