Why is the Vatican a city state?

[Harryprice]

I know there is history here but that is not wjat concerns me. My question is, why should the Vatican be a state now?

[Drop Bear]

I know there is history here but that is not wjat concerns me. My question is, why should the Vatican be a state now?

The Vatican became a city state under the terms of The Lateran Treaty,signed into law by Benito Mussolini in 1929.

It's worth doing a little bit of reading about the history of the Papal States.

The Lateran Treaty is one of the Lateran Pacts of 1929 or Lateran Accords, three agreements made in 1929 between the Kingdom of Italy and the Holy See, ratified June 7, 1929, ending the "Roman Question".
They consisted of three documents:

• A political treaty recognizing the full sovereignty of the Holy See in the State of Vatican City, which was thereby established.
• A concordat regulating the position of the Catholic Church and the Catholic religion in the Italian state.
• A financial convention agreed on as a definitive settlement of the claims of the Holy See following the losses of its territories and property.

http://en.wikipedia.org/wiki/Lateran_Treaty

As to why it still is a state. One explanation: The political reality of The Vatican as a sovereign state was established under formal and binding treaty. Its sovereignty is recognised by most countries. It has as much right to exist as any other country on the planet. IE No state or nation has a moral right to exist;there is no 'should', only 'is 'or is not'.

[Harryprice]

Its existence seems to raise the Catholic Church to a special status, similar to a country. Why don't other religions get the same treatment? Or, more to the point, why should ANY religion get such recognition?

[Matt]

Its existence seems to raise the Catholic Church to a special status, similar to a country. Why don't other religions get the same treatment? Or, more to the point, why should ANY religion get such recognition?

Just as DB said, there is not "Should" only is and is not. The caliphate had a pretty good run through to the Ottoman Empire. The Holy Roman Empire is now just one city. The Jews have their own country but it's not entirely a theocracy.