Lateran Treaty
The Lateran Treaty (; ) was one of the Lateran Pacts of 1929 or Lateran Accords, agreements made in 1929 between the Kingdom of Italy and the Holy See, settling the "Roman Question". They are named after the Lateran Palace, where they were signed on 11 February 1929. The Italian parliament ratified them on 7 June 1929. It recognized Vatican City as an independent state, with the Italian government, at the time led by Benito Mussolini as prime minister, agreeing to give the Roman Catholic Church financial compensation for the loss of the Papal States. In 1947, the Lateran Treaty was recognized in the Constitution of Italy as regulating the relations between the state and the Catholic Church.
Sovereignty
Sovereignty may be recognized even when the sovereign body possesses no territory or its territory is under partial or total occupation by another power. The Holy See was in this position between the annexation in 1870 of the Papal States by Italy and the signing of the Lateran Treaties in 1929, a 59-year period during which it was recognised as sovereign by many (mostly Roman Catholic) states despite possessing no territory – a situation resolved when the Lateran Treaties granted the Holy See sovereignty over the Vatican City. Another case, "sui generis", is the Sovereign Military Order of Malta, the third sovereign entity inside Italian territory (after San Marino and the Vatican City State) and the second inside the Italian capital (since in 1869 the Palazzo di Malta and the Villa Malta receive extraterritorial rights, in this way becoming the only "sovereign" territorial possessions of the modern Order), which is the last existing heir to one of several once militarily significant, crusader states of sovereign military orders. In 1607 its Grand masters were also made Reichsfürst (princes of the Holy Roman Empire) by the Holy Roman Emperor, granting them seats in the Reichstag, at the time the closest permanent equivalent to a UN-type general assembly; confirmed 1620). These sovereign rights were never deposed, only the territories were lost. 100 modern states still maintain full diplomatic relations with the order (now "de facto" "the most prestigious service club"), and the UN awarded it observer status.