Church, state and money : Groundbreaking series from La Repubblica
The Vatican Secretary of State has objected to the publication of these revealing articles, but has not disputed their accuracy. Here is the complete series of ten articles, translated by Graeme Hunter for Concordat Watch.
When Cardinal Ratzinger served as doctrinal watchdog, his second-in-command was Cardinal Bertone. Now, whenever the Pope faces an especially embarrassing problem, he hands it over to his trusted trouble-shooter, whom he has appointed Secretary of State. Thus Bertone has recently been assigned to rein in the Fatima renegades who think the Church is involved in a plot to conceal the real message of the Blessed Virgin. The redoubtable Cardinal was also in charge of holding the uxorious Archbishop Milingo of Zambia in a secluded convent south of Rome, far away from both temptations and the press. (The unrepentent Archbishop gave him the slip.) And now he is responsible for chastising La Repubblica, Italy's largest newspaper, for publishing this series on Church finances.
According to Benedict XVI, “Confronted with the abuse of economic power ... we have begun to see more clearly the dangers of wealth”. Naturally the Pope is speaking only about financial activities carried on outside his own church. But it remains a sensitive topic, nonetheless. And when La Repubblica, began running a series on the cost of the Catholic Church to the Italian taxpayers, the Pope was not amused.
He had his Secretary of State, try to bring the paper to heel and Cardinal Bertone issued peremptory “Let's stop this”. Yet he didn't dispute the figures, but could only object that it's not proper to discuss the financial aspects of things that are “sacrosanct”. However, the days are over when a paper automatically obeyed a cardinal, and La Repubblica has promised to continue its investigative series.
Property tax relief for the Church: EU takes Italy to court
Italian tax laws to allow exemption to non-profit organisations were given an “intentional loophole” to favour the Church. Anything “not exclusively commercial" escapes taxation. A little shrine within the walls of a cinema, holiday resort, shop, restaurant or hotel confers exemption, allowing the Catholic Church to escape paying 90% of what it owes to the state for its commercial activities. (La Repubblica, 25 June 2007) See also articles from the Guardian, Deutsche Presse Agentur and Agence France Press. However, after the end of August no more was heard of this, perhaps not surprising in view of the nature of the Barroso Commission.
The Church's accounts: here's how much it costs us
Cardinal Camillo Ruini, who heads the Italian Bishops Conference uses the vast sums from the “church tax” to stifle dissent even within Church. When this is combined with all the other tax breaks and outright subsidies, at a “conservative” reckoning the Catholic Church costs the taxpayers of Italy more than the whole overblown state bureaucracy. Yet the Church is neither elected by the people, nor subject to the democratic process. (La Repubblica, 28 September 2007)
Tax crusade marches on the holy hotels
Since 1992 the Catholic Church has been able to exploit a tax exemption and hostels, colleges and convents into modern hotels. “Churches are emptying while religious hotels are filling up.” The nuns who staff them are paid through the “church tax”, and the profits from these enterprises contribute to the 4 billion Euros, much of which “disappears into a power machine which influences and grooms the economy, politics, democracy and sometimes the exercise of constitutional rights, amongst which is freedom of the press”. (La Repubblica, 25 October 2007)
Religious dogma in the classsroom: RE classes are worth a billion
The Italian Constitution (Article 33) prohibits state funding for Catholic private schools, yet this still done. And in the state schools Catholic Religious Education teachers, though are appointed by the bishops, are subsidised by the taxpayers. And if the Church fires an RE teacher for “sins” like being separated, the state must pay the ex-RE teacher until retirement. Grants from the state for Catholic RE amount to almost as much as the “church tax” itself. (Italian original at La Repubblica, 25 October 2007)
The Church has a secret tax fund: this is where a billion Euros disappear to
The majority of Church funding comes from a clever mechanism invented by a Bishop Attilio Nicora who, after a discreet interval, was rewarded with a cardinal's hat. This gives the lion's share to the Catholic Church, even of the taxes of those who didn't specify where their contribution should go. Yet only a small fraction of this is used for charity. (Italian original in La Repubblica, 25 October 2007)
Religion and democracy
Cardinal Bertone, the Secretary of State for the Holy See (Vatican) has condemned La Repubblica's series : “Let's put an end to this tale about Church finances”. The newspaper, however, intends to continue its investigation. (Italian original in La Repubblica, 25 October 2007)
God's tourists: 5 billion Euros a year
With religious tourism growing by 20% a year, the Catholic Church is now offering flights in through ORP, the “Roman Pilgrimage Office”. ORP is based in the Vatican City and therefore “enjoys off-shore tax status, which in practice means that they don't have to submit accounts and can bypass Italian tax, hygiene and safety laws, to name but a few.” (Italian original at La Repubblica, 10 November 2007)
Church uses Public Money for the Common Good : Italy should be grateful
The director of the Vatican tourist operation, the “Pilgrimage Office”, claims that public funds and tax breaks are not privileges. He says that Church has rescued the Italian tourist industry from political neglect, and has been “delegated" by the government to take care of immigrants and the poor. And, oh yes, the Church is a victim and must try to protect itself “from those would exploit holy sites and believers merely for financial gain”. (Italian original in La Repubblica, 28 November 2007)
Charity : The other side of our Donations
The Italian Church provides service in exchange for state funds. The social welfare system is being dismantled bit by bit and handed over to the Church: rights are being replaced by charity. A very independent social worker priest offers implicit criticism of this development: “In forty years I have learned that a happy society is one with less solidarity and more rights.... The question is about regaining more justice and not offering as charity things which people should have a right to”. (Italian original in La Repubblica, 17 December 2007)
The Secrets of the Vatican Bank
The Vatican Bank offers secret accounts to many who, in the words of its President “have had problems with the law”. There are no cheque books. Everything is done by transfer, by cash or in gold bullion. Untracable. And, as if the nine-metre thick walls of its tower in the Vatican did not offer enough privacy, it appears to have quietly established itself in the offshore financial centre of the Caymen Islands.... (La Repubblica, 26 January 2008)
Note: The Italian "church tax" obliges residents to devote 0.8 % (otto per mille) of their taxes either to the State or to one of the five officially recognized religions. In practice, this means that although only 40 % of Italian taxpayers actually designate the Catholic Church as the recipient of their church tax, the taxes of almost 90% of them wind up in the Church coffers. For more, see the introduction and notes to the 1984 concordat.
