It was the fifth such encounter since Monti was tapped to lead a technocratic government in November 2011, underscoring the positive vibe between "Super Mario" and the pope.

The parallels are certainly striking. Both Benedict and Monti are low-key figures who followed celebrities, John Paul II and Silvio Berlusconi. Benedict actually is German, while Monti is routinely described as more German than Italian, especially his passion for fiscal discipline. Both are struggling with crises that festered under previous administrations: the sex abuse scandals for Benedict and Italy's $2.5 trillion public debt for Monti.

Here's why all this rates a mention: At a time when church/state relations in many places seem to be deteriorating, including talk of a "war on religion" in America, the simpatico between Monti and Benedict could lead to détente on one of the most perennially contentious political matters of all: money.

Earlier this year, Monti's government announced a host of austerity measures, including revisions to property taxes. Heretofore religious institutions have been exempt, even those that turn a profit, such as hostels and health clinics, on the grounds that they serve a public purpose.

In effect, the government has proposed to reclassify some of those facilities as commercial and insist they pay up.

The church operates roughly 50,000 parishes and oratories in Italy: 11,000 properties used for educational and cultural activities, 14,000 schools, and just under 5,000 hospitals, hospices and health clinics. All will be evaluated, and those deemed primarily commercial could theoretically be asked to pay back taxes dating to 2005. (The change applies to all nonprofits, but numerically, those operated by the church are the most significant.) Read more

Sources

• John L Allen Jr in National Catholic Reporter
• Image: Zimbio

It will mean the likes of convents that offer bed and breakfast, or church buildings that rent space to shops, pay their full share of taxes.

Prime Minister Mario Monti has asked all Italians to make unprecedented sacrifices as part of an austerity plan to thwart a crisis similiar to that in Greece.

Once law, the change could result in annual revenues of €600 million to €2.2 billion a year.

In December, 130,000 people signed an online petition calling on the government to revoke the church's tax-exempt status.

"It was time that they paid, too, with all the exemptions they've had throughout the years," Marco Catalano, 35, a shopkeeper in Rome, said. He goes to church twice a month. "They own the most beautiful buildings in downtown Rome, on Italian soil, and rent them out at market prices. They don't give them for free or at low prices for charity."

Many church buildings fall into a grey area, taking advantage of a tax exemption for religious organisation buildings even if they are largely commercial in use.

In a statement, the Italian Bishops Conference said, "We are waiting to find out the exact formulation of the text to be able to offer a more precise opinion."

Monti, a Catholic, is the latest in a string of Italian Prime Ministers and is following a regular pendulum of Prime Ministerial swings on the issue.

Sources

• NY Times
• Radio New Zealand
• Image: Wind Rose Hotel