Breaking his silence over the threat to the unity of the 77 million-strong communion, Williams warned the leaders of the conservative coalition that demolishing existing structures was not the answer to their concerns.

Responding to the creation at the weekend of the Fellowship of Confessing Anglicans (Foca), a global network for millions of Anglicans unhappy with liberal teaching on matters such as homosexuality and women priests, Williams said: "If they [the teachings] are not working effectively, the challenge is to renew them rather than to improvise solutions that may seem to be effective for some in the short term but will continue to create more problems than they solve."

The announcement of the new body came at the culmination of the Global Anglican Future Conference (Gafcon), a rebel summit in Jerusalem that attracted more than 300 bishops.

Church of England: Archbishop confronts Anglican rebels

Archbishop of Canterbury Rowan Williams warns rebels over Church of England split

The Evangelicals are moving in for the kill

Since news of St. Louis Archbishop Raymond Burke's appointment as prefect of the Apostolic Signatura was announced June 27, I've received numerous telephone calls and e-mails, from both sides of the Atlantic, posing some version of the following question: Was this a case of what the Italians call promuovere per rimuovere … promoting someone in order to get rid of him?

It's a reasonable question, given Burke's profile as a lightning rod in St. Louis. Not only is he the American bishop most identified with the push to deny Communion to pro-choice Catholic politicians, but he also engaged in very public spats involving rock star Sheryl Crow and basketball coach Rick Majerus. Basically his last act as archbishop was to issue canonical penalties for Sister of Charity Louise Lears for her support of women's ordination. While most of Burke's fellow bishops, and certainly the Vatican, would share the substance of his positions, not everyone applauds his pugnacious way of advancing them...

Fond memories of Burke in Rome: Burke spent three periods in Rome: from 1971 to 1975, studying at the Gregorian University; from 1981 to 1984, again at the Gregorian, completing his licentiate and doctorate in canon law; and then from 1989 to 1994, as the first American to serve as Defender of the Bond in the Apostolic Signatura. By all accounts, Burke was well known and highly regarded. ..
Burke's reputation as a canonist: Burke has long been considered perhaps the sharpest canon lawyer among the American bishops. By a near-universal consensus, Burke knows the canons and the case law that has grown up around them exceedingly well.

To be sure, that's not to say everyone shares the particular conclusions he draws. In October 2007, for example, I interviewed Cardinal Francis George of Chicago, president of the U.S. bishops' conference, and asked him about an article Burke had recently published in the canon law journal De Re Canonica, arguing that with regard to communion for pro-choice politicians, the church has sometimes emphasized canon 916, about the duty of the individual communicant, at the expense of canon 915, about the duty of the minister of the sacrament. The clear thrust was to suggest that if a pro-choice politician comes forward for communion, he or she should be turned away.

Here was George's answer: "I think it's a good canonical argument. But pastorally, you still have to decide what this means in the concrete cases we're talking about… The question is, do you risk politicizing the sacrament? That's my biggest concern. The very sacrament that speaks about our unity becomes the occasion for this kind of fracas and disunity. I think we should think long and hard before we allow the Eucharist to become that."

More on Burke's move to Vatican court

The book draws out the parallels and contrasts between his course and that of Joseph Ratzinger, now Pope, seen as the last two active representatives of the comrades in arms who fought for renewal at the Second Vatican Council. The divergent currents that followed the council are mirrored in their subsequent careers.

Both were colleagues and professors at the University of Tübingen in Germany. Both had to face the student unrest of 1968, when Ratzinger was struck, says Küng, by "an almost apocalyptic anxiety". Whereas Küng weathered the storm, Ratzinger felt he had seen how the progressive cause could become a lie, and he now left Tübingen for Regensburg - it was like moving from Harvard to Idaho State University, said some American observers. He did not understand, wrote a contemporary, that "Küng was fundamentally on his side", and there was a parting of the ways. Yet their different paths continued to cross, and when Ratzinger became Pope, he responded warmly to an overture from his former Tübingen colleague. In 2005 they talked at Castel Gandolfo for four hours.

But as Küng brings out clearly in this book, their theological methods were almost at opposite poles. For Küng, the historical-critical exegesis of the Bible is the measure of all things. He sets out in this way to reach the "Jesus of history" who is in his person the Christian message. This approach became central to Küng's systematic theology - the bar of judgement before which all positions stand or fall. But there are many incompatible versions of the "Jesus of history" on offer, and Joseph Ratzinger, for his part, applied the same historical-critical method only within limits and with restraint, subordinating it to dogma and tradition. For him the marriage of the Gospel message with Hellenistic philosophy was providential, and cannot be discarded.

Rather than a doctrine of Christ "from above", however, Küng presents one "from below" - from where people are. As he does not fail to record, his books have been best-sellers and his lectures have been crowded out. This is because he is dealing head-on with issues that people want to hear about in terms they understand.

Hans Kung - Disputed Truth: memoirs II

Officials said that the announcement was a "step backward" for reconciliation between the two faiths that split nearly 500 years ago. The Pontifical Council for Christian Unity said it had learnt of the Church of England's decision "with regret", and warned that it would have "consequences for future dialogue, which until now has been very fruitful".

"This decision is a breach with the apostolic tradition maintained by all Churches from the first millennium, and for that reason it is a further obstacle for reconciliation between the Catholic Church and the Church of England."

Vatican insiders said that Pope Benedict had been kept fully informed of the proceedings at the Synod and his opposition to female clergy is well known. The Archbishop of Canterbury Dr Rowan Williams has invited the council head Cardinal Walter Kasper to present the Roman Catholic Church's position at the next Lambeth Conference at the end of July.

The decision to pave the way for female bishops has led to fears that thousands of Church of England traditionalists will leave the faith and convert to Catholicism.

Vatican says Anglican church's plan for women bishops 'a step backwards'

Catholic Church 'regrets' Anglican women bishops

The Vatican has blamed a weak dollar for pushing it into its first loss in four years by undermining the value of dollar-denominated donations by the faithful.

Annual accounts published this week show the Holy See fell into the red last year, recording a loss of €9.1m (£7.25m).

The US currency has fallen sharply against the euro since the start of last year, hitting the Holy See in the pocket as its expenses are incurred in euros. Much of the Vatican's income comes from donations by Catholics around the world. The US was the largest single contributor to Peter's Pence - the collection used by the Pope for charitable donations - sending almost $19m (£9.5m).

But the shortfall attributed mainly to the weak dollar was mitigated by a rise of €4m in property income. The Holy See is a major owner of property all over Rome and was criticised last year for raising rents and threatening to evict tenants.

Earlier this year, the Vatican released a new list of mortal sins which included "accumulating excessive wealth".

Weak dollar sends Vatican into the red

Vatican runs a deficit despite generosity

Vatican budget shows deficit for 2007

In his first public comments on the Lambeth Conference, Pope Benedict XVI has warned Anglican leaders that they must find a "mature" and faithful way of avoiding "schism". On top of this the Pope has:

* Sent three cardinals to the conference in Canterbury, including one of his top aides from the Vatican, to act as personal intermediaries between the two churches;

* Let it be known that he does not support the defection of conservative Anglicans to the Roman Catholic Church;

* Given behind-the-scenes support to the Archbishop of Canterbury's attempts to hold together the conservative and liberal wings of the Anglican Church, including at face-to-face meetings in Rome.

Pope rides to Rowan's rescue

One of the highest ranking officials in the Vatican has warned that problems plaguing the Anglican Communion pose a 'further and grave challenge for full and visible' unity with Rome.

Cardinal Tarcisio Bertone, secretary of state and second in command at the Holy See, made the comments in a previously unpublished letter that was issued yesterday to delegates attending the Lambeth conference, a once-a-decade summit of the world's Anglican bishops.

In the letter, which was largely supportive of the Archbishop of Canterbury, Bertone said: 'New issues that have arisen in our relationship pose a further and grave challenge for full and visible unity.'

Vatican officials are alarmed at the progressive drift of Anglicanism especially in England, where a vote taken earlier this month confirmed that women were to be ordained as bishops with minimal provision for their opponents. The decision led to threats of mass defections to Roman Catholicism and several English bishops have confirmed they are keen to leave the Church of England and take their congregations with them.

Concerned at the cracks appearing in the Communion, the Vatican is sending an unprecedented delegation of cardinals to Canterbury to rally around Rowan Williams. The team will be led by Cardinal Walter Kasper, president of the political council for promoting Christian unity and will include Cardinal Cormac Murphy O'Connor, Catholic prelate of England.

Church of England unrest threatens to harm links with Vatican

The letter, says Butt, "was largely supportive of the Archbishop of Canterbury". She goes on to quote Keith Pecklers SJ at the Gregorian University - a Jesuit who, in my experience, is usually on the button -- as saying that the Vatican does not want to be seen to be encouraging defectors. "The fundamental issue is that the Vatican wants to support the Archbishop and hold everything together," says Pecklers.

The point is also made by an anonymous Vatican source in the same report. Rome "doesn't want want to look like they're poaching people ... They won't turn anyone away, but they can't be seen to welcome people en masse."