Dandyman
In London village.
As much as it must be way too tempting to mention the word fascism for some of you, I am sure thats not true. Without looking it up (so I could be wrong and am open to correction), was the Vatican State not preserved as part of the terms of Italian invasion of Rome in 1870??
And it IS a state - quite simply it possesses sovereignty to conduct its own international affairs (yes I was an international law student) - and at least the Pope is ELECTED (albeit by a select commity), as opposed to appointed by God through birth.
Check the Vatican's own website:
Vatican City State - Homepage
"Vatican City State was founded following the signing of the Lateran Pacts between the Holy See and Italy on February 11th 1929. These were ratified on June 7th 1929"