Cardinal Matteo Zuppi criticized the Italian government Tuesday for making a “unilateral” change to a tax system that helps fund the Catholic Church in Italy.
Newsroom (05/06/2025 03:05 , Gaudium Press) Italy’s long-standing financial and tax agreement with the Catholic Church has become the latest flashpoint in church-state relations. Cardinal Matteo Zuppi, president of the Italian Bishops’ Conference, publicly criticized Prime Minister Giorgia Meloni’s government for unilaterally altering the allocation of funds under the “Otto per Mille” (Eight per Thousand) system. This dispute raises fundamental questions about Italy’s historic relationship with the Church and the future of state-backed funding for faith-based initiatives.
What is the “Eight per Thousand” System?
The “Eight per Thousand” system, established in 1984 as part of a revision to the 1929 Lateran Treaty, allows Italian taxpayers to allocate 0.8% of their income tax to either the state or a recognized religious organization. The Catholic Church receives about 70% of these funds, using them for clergy salaries, church maintenance, and charitable works. Other religious groups, including Waldensian, Jewish and Buddhist organizations, also benefit from the system.
Until recently, taxpayers who chose the state option could direct their contributions to five specific areas: world hunger relief, natural disaster response, school infrastructure, refugee assistance, or cultural heritage preservation. However, in 2023, the Meloni government added a sixth category for drug addiction treatment and recovery programs without consulting religious groups.
Why is the Church Protesting?
Cardinal Zuppi expressed strong objections to this change during a June 3 conference in Bologna marking the system’s 40th anniversary. He argued the unilateral modification violated the contractual nature of the 1984 agreement and created unfair competition with Church-run charities. The Cardinal emphasized that while the Church already funds drug rehabilitation programs, the new state option could divert donations away from these initiatives.
The Church’s concerns go beyond immediate financial impact. There are worries that this sets a precedent for future unilateral changes that could further erode religious funding. Zuppi stressed the Church’s primary concern isn’t money but serving the poor, stating clearly: “We are not interested in money, we are interested in the poor.”
Government Response: A Political Battle
The Meloni administration defended its decision, noting that the previous government had already expanded the state’s options. They framed the addition as a minor change to support important social programs. However, opposition politicians seized on the Cardinal’s remarks to criticize the government, with some suggesting the move was retaliation for the bishops’ pro-migrant stance.
This dispute comes at a sensitive time for Italy’s Catholic Church, which has seen declining donations through the system. For the first time in 2024, Church receipts fell below €1 billion. If more taxpayers opt for state-run programs, it could strain diocesan budgets, particularly in poorer regions where Church assistance is most needed.
The conflict represents more than just a financial disagreement – it tests the delicate balance of church-state relations in Italy. The “Eight per Thousand” system has functioned for decades as a unique model of cooperation. Its politicization could have broader implications for Italy’s cultural identity and its relationship with the Vatican.
Possible resolutions include a negotiated compromise where the government agrees to consult religious groups before future changes, or potential legal action by the Bishops’ Conference. The outcome could influence upcoming political debates, particularly as opposition parties may use the issue to pressure Meloni’s government.
While Cardinal Zuppi has expressed hope for an amicable resolution, the fundamental disagreement over autonomy and trust remains. As both sides maintain their positions, this battle over Italy’s unique church funding system appears far from settled, with potential consequences that could extend well beyond financial matters.
- Raju Hasmukh with files from The Pillar
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