Catholic World News News Feature

Israel threatens action against Catholic hospital October 11, 2004

A new crisis has arisen in relations between the Catholic Church and the government of Israel, as tax collectors in Jerusalem threaten to confiscate funds from St. Louis Hospital, a specialized institution for the terminally ill run by the Sisters of St. Joseph of the Apparition.

Under the terms of the "fundamental accord," signed by Israel and the Holy See in 1993, church-related institutions such as St. Louis Hospital should be free from taxation. But in violation of that agreement, the city of Jerusalem is demanding tax payment from the hospital, and threatening to seize health-insurance payments if the taxes are not paid by October 31. If the threat is carried out, the hospital could be forced to close, and the patients-- along with the religious who run the hospital-- could become homeless.

The Holy See and the Israeli government have never finalized a pact spelling out the financial implications of the "fundamental accord," and Israeli delays in negotiating that final pact have become an increasingly sore point in relations between the Vatican and Israel. Negotiations are scheduled to resume this month, after a break of several weeks.

Vatican officials have made no secret of their impatience, noting that a series of promises from Israel-- promises that a final agreement will soon be struck, and that church institutions will not be asked to pay taxes-- have remained unfulfilled.

[For a more detailed story on the dispute, and background on the question of taxation of Church properties in the Holy Land, see the AsiaNews web site.]