Greek Property Taxes and the Greek Orthodox Church

As the scale of the Greek national debt becomes apparent, the need for money has fuelled an intense debate over Greek property taxes and the battle lines between Church and State have been drawn. The Church is the largest property owner in Greece and the government believes that it has enjoyed tax-exemption for long enough and that it should pay its dues. The Orthodox hierarchy, of course, have dug their feet in the sand and stated that they are simply going to refuse to pay the one off windfall tax.

On the face of it, the Church’s claim that it is being victimized seems fair and would normally receive sympathy in this very devout country. Bishop Theoklitos, Chairman of the Church of Greece’s financial department, claimed,

“The Church of Greece contributes to the state when it works. There is no reason for any other contribution and the tax would encumber some members of the clergy with excessive debt…there is no war or disaster that requires our contribution. Instead, we are being called on to contribute because of failed economic policies. We refuse to foot the bill for other people’s mistakes!”

Low Sympathy for the Church after the Land swap Scandal

However, sympathy for the Church is extremely low after the Greek investment property scam and the public are largely behind the move, believing that the Greek Orthodox Church should pay its fair share of Greek property taxes. The Church of Greece is the nation’s largest property owner and, in a country with a public spending deficit reaching 12% of GDP, the Finance Minister of the new Papandreou regime will not take no for an answer.

Greek Property Taxes and the Greek Orthodox Church

The Church’s rhetoric continues, pointing out that, whilst it does perform charitable work, it is more than a charity and that “the church operates 800 establishments for the needy.” Both parties have drawn a line in the sand and it looks like the debate will be long and protracted, especially in a country where there is no official separation of church and state and the priests and bishops are classed as public servants and paid by the state.

Greek Property Taxes on the Church and the Inevitable Outcome

This battle has a previous antecedent – in 1999, Prime Minister Kostas Simitis stood up to the church in their quest to have a person’s religious beliefs printed on their ID cards. The government won that one and in a country feeling the financial pinch and with the mandate from the landslide election, it looks as if the state will win this face-off. Papandreou looks ready for the fight and, in fact, may be using it to divert attention away from some of the necessary spending cuts that will bite into the average Greek’s pocket. He has stated that he wishes to move the burden of Greek property taxes onto larger property owners and using the Church as an example will prove that he intends to follow this particular manifesto promise.