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.
Papal States
By 1861, much of the Papal States' territory had been conquered by the Kingdom of Italy. Only Lazio, including Rome, remained under the Pope's temporal control. In 1870, the Pope lost Lazio and Rome and had no physical territory at all, except the Basilica of St Peter and the papal residence and related buildings around the Vatican quarter of Rome, which the new Italian state did not occupy militarily. In 1929 the head of the Italian government, at the time the Italian Fascist leader Benito Mussolini, ended the crisis between unified Italy and the Holy See by negotiating the Lateran Treaty, signed by the two parties. This recognized the sovereignty of the Holy See over a newly created international territorial entity, the Vatican City State, limited to a token territory.