I thought it didn't have any armed forces and wasn't fully-independent of Italy in much the same way as Andorra isn't fully independent of France and Spain (and doesn't have an army).Eh - What makes San Marino not a full-blown nation?
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But apparently it DOES have an army and it merely has a 'Friendship Treaty' with Italy, so yes I guess that qualifies it as a full-blown nation as opposed to a dependency or a principlality.
I wonder if the Vatican has a team?