(June 09,2009) Contrary to a notice sent to Catholic schools in Israel, the government
will not seize funds destined to those institutions, reported Israel’s embassy to
the Holy See. Israel's finance minister, Yehezkel Abrahamoff had notified educational
institutions of the Church, that funds were being held back, until they agreed to
submit to all the fiscal demands that he considered obligatory. The fiscal status
of the Church in Israel is currently being negotiated between the Holy See and the
State of Israel, as part of the ongoing discussions of the Fundamental Agreement,
which established diplomatic relations between the two states in 1994. The announced
gesture of Abrahamoff, would mark a change of policy with regard to Catholic institutions
in the nation. The Embassy of Israel to the Vatican reported on Monday, however,
that the "confiscation of funds of the Ministry of Education destined to some educational
institutions of the Catholic Church in Israel, will not be carried out and that the
situation remains unchanged."