the Popes in Leonine City

There is one major difference over the Pope ruling from Vatican City and him following the Laws of Guarantees. Ruling from Vatican City makes the Pope independent from Italy and legally on the same level as any national ruler from say the Prince of Monaco to the President of the United States. While in fact the state is fairly dependent on Italy, I don't see any grocery stores or water treatment plants in the Vatican, it is still a separate state.

The fact that Vatican City is a separate state is important. It is economically independent of Italy which offers the Catholic Church a protection in its spiritual role from secular influences. The independence of Vatican also allows the Pope to speak on moral matters in other countries without the question being raise of is he truly speaking for the Church or is he speaking for the Italian government. Being the ruler of a separate county also provides the Pope with greater protection that the Law of Guarantees could hope to provide. Any power or privilege that a government can grant it can also take away.

The Italian government could easily storm the Vatican City, but likely never will as you say Falecius. But, in such an event the Italian government would be invading a friendly state which would create a major international incident. One of the major protection of microstates is the fact that none of their neighbors want the black mark of invading another country for negligible real gains.

I am not disagreeing. I was pointing out that the Law of the Guarantees was basically a consequence of the Pope's refusal to make a deal; the Italian state wanted to appear conciliatory and the law was its way to do so (unilaterally), but for an international treaty, there have to be two parties. The Vatican State exists because a succeding Pope made a deal with Italy.

EDIT: Vatican has grocery stores, though not water plants.
 
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