Edit: it will be interesting to see how Israel reacts, which had increasingly friendly relations with John Paul II's Papacy throughout the eighties.
[The Blaze] The treaty, which concerns the activities of the Catholic Church in Palestinian territory, makes clear that the Holy See has switched its diplomatic recognition from the Palestine Liberation Organization to the state of Palestine.
The Vatican had welcomed the decision by the U.N. General Assembly in 2012 to recognize a Palestinian state. But the treaty is the first legal document negotiated between the Holy See and the Palestinian state and constitutes official diplomatic recognition.
“Yes, it’s a recognition that the state exists,” said the Vatican spokesman, the Rev. Federico Lombardi.