Italy is witnessing a fresh clash over the allocation of the 8 per mille tax funds, a system that has been a cornerstone of State-Church relations for four decades. Cardinal Matteo Zuppi, president of the Italian Episcopal Conference (Cei), recently voiced strong disappointment at the government’s unilateral decision to alter how these funds, specifically those managed by the State, are distributed. The controversy centers on the government’s recent inclusion of addiction recovery as a new purpose for these funds, a move that has stirred tensions between the Church and the State.
The 8 per mille system, introduced by Law n. 222 in 1985 following the 1984 Concordat between the Italian State and the Catholic Church, allows taxpayers to allocate eight per thousand of their income tax to either religious organizations or the State for social and humanitarian projects. Traditionally, the funds managed by the State have been earmarked for combating world hunger, responding to natural disasters, assisting refugees and unaccompanied minors, preserving cultural heritage, and improving school infrastructure.
Cardinal Zuppi’s criticism, delivered during a national conference in Bologna marking 40 years since the law’s enactment, focuses on the government’s addition of a sixth category in 2023: recovery from drug addiction and other pathological dependencies. He described this move as a breach of the original pact’s spirit, stating it “creates a disparity that harms both the Catholic Church and other religious confessions with agreements with the State.” Zuppi emphasized that this unilateral change disrupts the logic and functioning of the 8 per mille system, which was designed to be a mutual agreement.
“We are not interested in money, we are interested in the poor,” Zuppi declared, underscoring that any reduction in resources due to these changes could limit the Church’s ability to support vulnerable populations. He highlighted that the 8 per mille funds enable the Church to address pressing needs such as poverty, education, and emergencies both in Italy and globally. Yet, the new allocation threatens the Church’s capacity to continue these efforts at the same scale.
The government, through Deputy Prime Minister and Foreign Minister Antonio Tajani, responded by downplaying the dispute. Tajani noted that many addiction recovery communities benefiting from the new funding category are actually managed by Church representatives, suggesting that the Church is not truly disadvantaged by the change. “In substance, there are no damages for the Church,” Tajani said, framing the debate as an ongoing discussion rather than a crisis.
However, the timing and intensity of Zuppi’s intervention have raised eyebrows. The State has been increasingly “competing” with the Cei for 8 per mille funds, with a noticeable shift in taxpayer preferences over the years. In 2010, the Church received 82.2% of the signatures directing funds its way; by 2022, this figure had dropped to 67.3%, signaling a gradual erosion of the Church’s share. This trend has partly been fueled by legislative changes dating back to 2019, when the government allowed taxpayers who allocate their 8 per mille to the State to specify the type of intervention they want their contribution to support. This option, initially introduced by the previous “giallorossa” (yellow-red) coalition government, gave the public more control over their donations.
Despite this increased taxpayer autonomy, the Cei has not offered a similar choice to those who donate to the Church, a point some analysts highlight as a missed opportunity. Critics argue that if the Church allowed its donors to designate funds for specific purposes—whether for migrant aid, church restorations, or other charitable activities—it could better align with public preferences and perhaps stem the loss of support.
Adding to the complexity, the Cei reportedly uses about 40% of its 8 per mille income—approximately 400 million euros out of one billion—for clergy sustenance, essentially financing salaries. This allocation has become a point of contention, especially as the Church’s share of funds diminishes. Zuppi’s current stance, then, may be less about the principle of fund allocation and more about protecting a significant revenue stream crucial to the Church’s operations.
Meanwhile, tensions between the Cei and the government are compounded by broader political and ecclesiastical dynamics. Prime Minister Giorgia Meloni has been working to build a trusting relationship with the new Pope, Leone XIV, signaling a potential shift in Church-State relations and a possible rapprochement with conservative Catholic voters. Zuppi’s confrontational approach, coming at this delicate moment, has sparked debate over his leadership suitability during such a critical phase.
Beyond the political tussle, there is an equally pressing issue regarding the effective use of 8 per mille funds managed by the State. While the budget for assisting refugees and unaccompanied minors has doubled from 8 million euros in 2019 to over 16 million in 2023, only a small fraction of that—about 6%—was actually allocated to approved projects. In 2023, out of 65 project proposals in this category, only 7 were approved, totaling less than one million euros distributed.
This glaring discrepancy is largely attributed to increasingly stringent administrative requirements and rigid bureaucratic procedures, which many organizations—some of them large and experienced—struggle to meet. Missing digital signatures or incomplete documentation have led to widespread project rejections, raising suspicions that political considerations, especially the current government’s stance on immigration, might be influencing funding decisions.
In contrast, the new addiction recovery category appears to have a much higher approval rate. In 2023, 33 out of 73 proposals for addiction-related projects were approved, signaling a more efficient allocation of funds in this area. The Department for Anti-Drug Policies recently announced two new calls for prevention and recovery projects, making 30 million euros available from unassigned 8 per mille funds, underscoring the government’s prioritization of this sector.
However, the fate of the substantial unallocated funds in other categories remains uncertain. By law, unused resources roll over to the following year, but the persistent pattern of project rejections threatens to leave millions of euros unspent. The Council of Ministers retains the authority to concentrate these funds on urgent interventions, a mechanism that has been used in the past.
These developments highlight a broader challenge: ensuring transparency, efficiency, and fairness in managing the 8 per mille funds, which have become a vital source of support for numerous social, cultural, and religious initiatives across Italy. The State has recently stepped up its communication efforts to promote the addiction recovery option, contributing to a rise in the number of taxpayers choosing the State’s share—from about 4 million in 2024 to an estimated 4.5 million in 2026—while the Church’s share continues to decline.
Cardinal Zuppi’s call serves as a poignant reminder of the importance of these funds. “This source of resources allows us to be close to the needs of people and those concerns closest to our hearts: fighting poverty, education, and many emergencies in Italy and the world,” he said. Wasting or mismanaging these resources would not only undermine these efforts but also betray the trust of millions of Italians who direct their taxes toward making a difference.
