VATICAN CITY - Pope Benedict, speaking after the European Commission asked Italy for information on tax breaks for the Roman Catholic Church, said on Thursday the Church did not seek any economic privileges.
"The Church does not seek power, nor does it demand privileges or aspire to positions of social or economic advantages," he said in an address to Italy's new ambassador to the Vatican.
Last month, the European Commission asked Italy for information about tax breaks after receiving complaints that they amount to illegal state aid.
The Commission has not yet opened an official probe and the Pope made no reference to the EU Commission's move in his speech.
The Catholic Church in Italy benefits from a series of tax breaks, most notably on sprawling real estate holdings that it leases out. The Italian government forgoes upwards of 700 million euros in tax revenues, according to some estimates.
The Church's position is that tax breaks are legitimate because of the social work it carries out.
Brussels has clashed with the Roman Catholic Church in the past. In 2005 the Commission said Spain was breaking EU law by exempting the Church from value added tax on goods such as candles, pews and land for building churches.
But much of the concern this time has come from inside Italy, and critics of the state's tax policy include Paolo Cento, an outspoken undersecretary at the Economy Ministry.
