A quote from the Italian press agency Ansa, 4 September 2007

The Vatican Secretary of State [Cardinal Tarcisio Bertone] lashed out on Tuesday at politicians who have questioned the tax advantages enjoyed by the Catholic Church in Italy. [...] Ongoing controversy over the fiscal treatment of Catholic institutions in Italy intensified recently when the European Commission asked the Rome government for further information on the issue. [...]

The Commission is reportedly interested in a law passed by the Silvio Berlusconi government in 2006 which effectively exempted all Church property used for commercial purposes from local real estate tax. Officials at the Competition Commission are also believed to be interested in the 50% reduction in corporation taxes applied to church business activities such as schools, hospitals, clinics and hotels.