Israel and the Vatican appear to have moved closer to resolving financial and other outstanding issues that have clouded bilateral relations for years.

A plenary session of the bilateral permanent working commission between the two states took place last week at the Vatican.

A statement said the plenary “welcomed the progress” made by the commission and had “agreed on the next steps toward conclusion of the agreement.” It said the meeting took place in “an atmosphere of mutual understanding.”

Israel and the Vatican signed an agreement establishing diplomatic relations at the end of 1993, but several financial issues, including tax exemptions and property rights for the church, have remained unresolved despite years of fitful negotiations. — jta

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