Vatican City is an ecclesiastical or sacerdotal-monarchical state, ruled by the Bishop of Rome—the Pope. The highest state functionaries are all Catholic clergymen of various national origins. It is the sovereign territory of the Holy See (Sancta Sedes) and the location of the Pope's residence, referred to as the Apostolic Palace.
The Popes have generally resided in the area that in 1929 became Vatican City since the return from Avignon in 1377, but have also at times resided in the Quirinal Palace in Rome and elsewhere. Previously, they resided in the Lateran Palace on the Caelian Hill on the far side of Rome from the Vatican. Emperor Constantine gave this site to Pope Miltiades in 313. The signing of the agreements that established the new state took place in the latter building, giving rise to the name of Lateran Pacts, by which they are known. San Marino
[youtubeHD=640,420]SeOFb6oW6QA[/youtubeHD] San Marino, officially the Republic of San Marino also known as the Most Serene Republic of San Marino, is a state situated on the Italian Peninsula on the eastern side of the Apennine Mountains. It is an enclave surrounded by Italy. Its size is just over 61 km2 (24 sq mi) with an estimated population of over 30,000. Its capital is the City of San Marino. San Marino has the smallest population of all the members of the Council of Europe.
San Marino is the oldest surviving sovereign state and constitutional republic in the world, as the continuation of the monastic community founded on 3 September 301, by stonecutter Marinus of Rab. Legend has it that Marinus left Rab, then the Roman colony of Arba, in 257 when the future emperor, Diocletian, issued a decree calling for the reconstruction of the city walls of Rimini, which had been destroyed by Liburnian pirates.
The constitution of San Marino, enacted in 1600, is the world's oldest constitution still in effect. The country's economy mainly relies on finance, industry, services and tourism. It is one of the wealthiest countries in the world in terms of GDP (per capita), with a figure comparable to some of the more developed Italian regions, such as Lombardy and Trentino-Alto Adige/Südtirol. San Marino is considered to have a highly stable economy, with one of the lowest unemployment rates in Europe, no national debt and a budget surplus.