Vatican City is an independent nation inside Rome, Italy that is governed by the Pope of the Roman Catholic Church. As a Christian state, it is governed by clergy and canon law. The Pope is an elected absolute monarch. The Secretary of State, President of the Pontifical Commission for the Vatican City State, and Governor of Vatican City are the three cardinal officials. They can be dismissed by the Pope at any time.
The governor has duties similar to those of a mayor, but without any authority over external relations. The Pontifical Commission handles legislative power, and its members are cardinals appointed for five years. The Apostolic Signatura, the Sacra Rota Romana, and the Apostolic Penitentiary make up the judicial part of the government.
Though not part of the European Union, Vatican City makes its own euro coins.