Vatican or the Holy See is the smallest sovereign state in the world both in size and population. The total land area of the Vatican is 0.17 sq. miles or 0.44 sq. km and its population is just 932. The Pope possesses full executive, legislative and judicial powers. Vatican is situated within the city of Rome. Vatican issues its own coinage called Vatican lira, which is interchangeable with Italian lira.
Vatican is a remnant of the "Patrimony of St. Peter", the secular state donated to the Popes in the eighth century by Pepin the Short, father of Charlemagne. In 1929, Mussolini's government made peace with the Papacy in the Lateran Treaty, which recognised the Holy See as an independent state. The treaty was incorporated into the Italian constitution of 1947. Under the terms of the treaty, the Pope is pledged to perpetual neutrality and may intervene in international affairs as a mediator only upon request.
As sovereign of the Holy See, the Pope is an elected absolute monarch who appoints a Pontifical Council to govern the city on his behalf.
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