HOly mother of christ, you're right:
http://geography.about.com/gi/dynamic/o...w.state.gov%2Fs%2Finr%2Frls%2F4250.htm
definition
Let's start with what defines a State or an independent country. An independent State:
* Has space or territory which has internationally recognized boundaries (boundary disputes are OK).
* Has people who live there on an ongoing basis.
* Has economic activity and an organized economy. A country regulates foreign and domestic trade and issues money.
* Has the power of social engineering, such as education.
* Has a transportation system for moving goods and people.
* Has a government which provides public services and police power.
* Has sovereignty. No other State should have power over the country's territory.
* Has external recognition. A country has been "voted into the club" by other countries.
I just didn;t think the vatican had its own currency nor economic activity other than...attending church?