Background: Popes in their secular role ruled much of the Italian peninsula including Rome for more than a thousand years until 1870. Disputes between a series of popes and Italy were resolved in 1929 by three Lateran Treaties which established the independent state of Vatican City out of the former Papal States and granted Roman Catholicism special status in Italy. In 1984 a concordat between the Vatican and Italy modified certain of the earlier treaty provisions including the primacy of Roman Catholicism as the Italian state religion. Present concerns of the Holy See include the failing health of Pope John Paul II who turned 80 on 20 May 2000 interreligious dialogue and reconciliation and the adjustment of church doctrine in an era of rapid change. About 1 billion people worldwide profess the Catholic faith.
Geography Note: urban; landlocked; enclave of Rome Italy; world's smallest state; outside the Vatican City 13 buildings in Rome and Castel Gandolfo (the pope's summer residence) enjoy extraterritorial rights
International organization participation: IAEA ICFTU Intelsat IOM (observer) ITU NAM (guest) OAS (observer) OPCW OSCE UN (observer) UNCTAD UNHCR UPU WIPO WToO (observer)
Flag description: two vertical bands of yellow (hoist side) and white with the crossed keys of Saint Peter and the papal miter centered in the white band
Economy overview: This unique noncommercial economy is supported financially by contributions (known as Peter's Pence) from Roman Catholics throughout the world the sale of postage stamps and tourist mementos fees for admission to museums and the sale of publications. The incomes and living standards of lay workers are comparable to or somewhat better than those of counterparts who work in the city of Rome.
Exchange rates: euros per US$1 - 0.9867 (January 2000) 0.9386 (1999); Vatican lire (VLit) per US$1 - 1688.7 (January 1998) 1736.2 (1998) 1703.1 (1997) 1542.9 (1996) 1628.9 (1995); note - the Vatican lira is at par with the Italian lira which circulates freely