III.

Government and Economy

Vatican City is governed by the pope, who has absolute executive, legislative, and judicial powers. The executive powers are delegated to a governor, who is responsible directly to the pope. In the exercise of his legislative powers, the pope is advised and assisted by the Sacred College of Cardinals and by the various Sacred Congregations. The judicial powers are exercised by tribunals; appeals from their decisions are heard by the sacred Roman Rota and by the Supreme Tribunal of the Apostolic Signature.

The Secretariat of State represents the Holy See in diplomatic relations with foreign powers. Swiss Guards maintain internal security and protection of the pope; the Piazza San Pietro is subject to the authority of the Italian police. Castel Gandolfo, the papal summer palace outside Rome, as well as other buildings located in Rome but outside of Vatican City, are endowed with extraterritoriality.

Vatican City has its own postal system and formerly its own currency, which was equal to the Italian lira. In January 2002, in line with Italy’s move to the new Euro currency, Vatican City also adopted the Euro. As at early 2007, 0.77 Euros equalled US$1. Vatican City also has a railway station and radio station—Vatican Radio—and manages its own telephone and telegraph services. Annual expenditures in 1994 were US$175 million, while revenues were US$175.5 million. Income sources include interest on investments and voluntary contributions (“Peter’s pence”). The Instituto per le Opere di Religione oversees distribution of capital designated for religious works. A daily newspaper and an official monthly journal are published, as are books and pamphlets in numerous languages.