Vatican, Israel report 'substantial' progress in talks

0 Comments | AFP, May, 2008

VATICAN CITY (AFP) — Israel and the Vatican have made "substantial progress" towards resolving financial and legal issues following 14 years of on-and-off negotiations, a joint statement said Wednesday.

A permanent bilateral working committee met at the Vatican on Wednesday in "a climate of great cordiality," said the statement, underscoring "significant, even substantial progress" achieved in the talks.

The two sides have been negotiating over the legal status of the Roman Catholic Church in Israel, notably the disposition of Church property and tax exemptions for revenue earned by Christian communities.

The issues remained unresolved following a basic accord signed by the two states in 1993.

The Holy See wants exemption from all taxes for the...