The Vatican City, located in Italy is a country inside a country. It is a small fraction of Italy, yet it exerts a humongous influence on the entire nation. Literally, Italy has no official religion but in the actual sense, Catholicism is its official religion. Roman Catholicism determines a lot of activities in Italy ranging from employment to Italy’s policies.
It is valid to assert that the Papacy’s influence on Italy has dwindled since 1870 because the Vatican does not literally control a large portion of land in Italy any longer but a careful consideration will reveal that the Papacy still wields an unquestionable power and influence on the country and even controls several properties in it. The influence wielded by the papacy in Italy is clearly underscored by the daily airing of the papacy news in Italian media.
Moreover, several highly placed Italians have unequivocal link to the Roman Catholic, good examples are some members of the Silvio Berlusconi’s party like Mario Mauro, Maurizio Lupi and Rocco Buttiglione. Moreover, it appears that Italy’s politics is clearly influenced by the Vatican. Italian policies considered inadequate by the Vatican would simply not see the light of the day because the Vatican has several friendly Italian politicians who would stand against such policies to ensure that it is brought down, however, a few of the policies still succeeds. Good examples of Italian policies that were severely contested against were the divorce and separation laws and the right to life laws.
It should be recalled that the Vatican and Italy are separate nations yet the unequivocal control on Italy still exists. Taxing of the church in Italy makes obvious the unquestionable power the Vatican has over Italy. Since Italy do not intend to tax places of worship the church exploits such an opportunity to establish profit organizations such as restaurants, hotels and so forth in such sites and since they are not taxed, they charge lower costs than organizations in the same category and thereby leading to an obvious competitive advantage.
Of course, the Vatican benefits Italy especially as it regards tourism and pilgrimages. Italy generates foreign exchange through the tourist visitation but these petty benefits are not worth the excessive control the Vatican has over Italy.