Athens debt crisis taxes cosy ties between state and Greek Orthodox Church

By Paul Taylor
July 15, 2011

(Greek orthodox priests hold a Greek flag in a protest in front of the parliament house during a rally in Athens, February 6, 2011/John Kolesidis )

The Greek Orthodox Church owns more land than anyone except the state, employs thousands on the public payroll, has a stake in the nation’s biggest bank, but campaigners say its tax payments are derisory. The Church vehemently denies accusations it is one of Greece’s biggest tax dodgers and says it is playing a vital social, economic and spiritual role in this time of hardship.

With the third year of recession tormenting Greece’s 11 million people, the Church has provided solace, comfort and nourishment but activists say it’s now time to dig deep into its coffers to help with the bailout.

The Greek Orthodox Church has long enjoyed a privileged, some would say cosy, status when it comes to taxes in a country where it is responsible for the sole official religion, with one critic calling its complex finances at best opaque. But the sovereign debt crisis that has rocked the Greek state, thrown hundreds of thousands of people out of work, and forced painful cuts in salaries, pensions and benefits, has raised fresh questions about the Church’s tax position.

More than 100,000 people have joined a Greek Facebook page “Tax The Church”, and 29,000 have so far signed an online petition urging the state to harness “the huge fortune of churches” to reduce Greece’s crushing budget deficit. “The Church must pay its share of the tax burden,” said former finance minister Yannos Papantoniou. “It is totally unreasonable in this situation that they contribute so little.”

The Church angrily denies accusations it doesn’t pay its fair share. “This is a lie. We pay more land tax than ordinary businesses and we pay 20 percent of our rental income in tax,” said Father Timotheos, the Greek Church’s Holy Synod spokesman.

Despite the growing demands for more transparency, Prime Minister George Papandreou’s PASOK socialist government doesn’t dare take on the powerful Church, an adviser to the premier acknowledged, speaking on condition of anonymity.

Read the full story by Paul Taylor and Renee Maltezou here.

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