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 Church and its institutions.
Talks resumed in 2004 after a 10-year hiatus and have since proceeded intermittently.
Israel has made repeated assurances that the accord is near completion, while the Vatican has been less sanguine.
"We hope that we will reach a solution in the next 13 years," joked Archbishop Antonio Maria Veglio, secretary of the Vatican Congregation for the Eastern Churches, after the committee's last meeting in December 2007 in Jerusalem.
Veglio recalled that a visit by Pope Benedict XVI to Israel at the invitation of the Hebrew state was contingent on the finalisation of the accord.
A previous meeting of the joint committee, in May 2007, concluded with "important progress."
While contacts continue, the panel will hold its next formal meeting in December.
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