Vatican told to pay taxes as Italy tackles budget crisis
After several years of scandal in which the Catholic Church has faced allegations of financial impropriety, paedophile priests and rumours of plots to kill the Pope, the Vatican is now facing a new €600m-a-year tax bill as Rome seeks to head off European Commission censure over controversial property tax breaks enjoyed by the Church.
resume property tax, or Ici, payments.
Mr Almunia said in 2010 that the exemption amounted to state aid that might breach EU competition law. A parliamentary proposal by the Italian Radicals party last August to repeal the exemption, with a successful petition on Facebook, upped the pressure. A spokesman for Mr Almunia appeared to give the thumbs-up yesterday: "It is a proposal that constitutes a significant progress on the issue and I hope will be implemented," he said.
"This is a victory for public pressure," said Mario Staderini, the leader of the Italian Radicals party. "We've managed to break down – a little bit – the wall protecting the Church."