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European Commission Threatens Charitable Status of Catholic Hospitals and Schools

Politician calls threat "intolerable" interference; accuses EU of siding "anti-Catholic left"

By Hilary White

ROME, August 29, 2007 (LifeSiteNews.com) - The European Union has threatened to open a formal investigation following complaints about the charitable tax status of schools and hospitals owned by the Catholic Church in Italy. The European Commission is questioning a 2006 law that exempts Church property form real-estate taxes, saying the benefits may by breaking EU regulations on state subsidies. The Commission confirmed that the process was begun following complaints made by "third parties."

The Catholic Church is the world's single largest and oldest charitable organisation with a two thousand year history of organised care of the poor, sick and vulnerable. The notion of state-supported charitable institutions was invented and protected by the Church throughout the development of western European societies beginning at the end of the Roman Empire.

The far left Guardian newspaper in Britain ran a story Tuesday claiming that the Church was thinking of giving up the charitable status of some of its institutions due to pressure from the government and the EU.

Without citing sources, the Guardian claimed the Church has tax exemptions amounting to €1bn a year. The Guardian cited an interview in La Stampa with a senior Vatican official, Monsignor Karel Kasteel, who is quoted saying, "The Holy See is ready to sit down at a table with the government to update the Concordat and revisit the tax issue."

Many of the Church's charitable institutions are owned and operated by legally independent religious orders, some of which began their charitable works in the earliest centuries of the post-Roman period, making them technically "private" businesses. Nevertheless, these still pay half the normal corporate tax levied on businesses in Italy.

"Once a body has economic activities attached to it, then there can be a distortion of competition and it wouldn't be the first time we look at advantages given to the Church in various member states," EU spokesman Jonathan Todd said.

EU commissioner Neelie Kroes said there was no formal investigation at the moment, but that the Commission has "addressed the Italian authorities and asked them for information about this."

In recent years, Catholic leaders in Rome have warned of increasing attacks on the freedom of the Church by European Union secularists and the extreme left. Archbishop Angelo Bagnasco of Genoa and President of the Italian Episcopal Conference, warned against the "ideological prejudice" behind the Commission's move.

"To those who put into discussion the agreement between the Holy See and Italy, it's worth taking into consideration that this has produced social peace and collaborative benefits to all the Italian people," said Giuseppe Betori, secretary of the Conference.

Today government ministers and other politicians have come to the defence of the Church against the EU pressure tactics. Justice Minister Clemente Mastella "expressed concerns" while the minister in charge of infrastructure, Antonio Di Pietro, denounced the investigation, calling it "a political tool to put a wrinkle in the plans of those who do good works."

"This offensive is incredible," said Maurizio Gasparri, of the centre-right National Alliance political party. He called the threat "intolerable" interference and accused the EU of siding itself with an "anti-Catholic left" in Europe.

Rocco Buttiglione, a former government minister, said the European Commission should not feed "the suspicions of an anti-Christian European Union".

The EU has been increasing pressure on the Church, especially through its tax status. In September 2005, the EU ordered the government of Spain to start charging the Catholic Church sales tax on goods it buys such as candles, pews and land for building churches. The Commission threatened to take the Spanish government to court if it did not agree.

Read related LifeSiteNews.com coverage:

EU Orders Spain to Start Charging Catholic Church Sales Tax
http://www.lifesitenews.com/ldn/2005/dec/05121909.html

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