Pope Francis banished a German Roman Catholic prelate known as the “luxury bishop” from his diocese yesterday for spending €31 million of Church funds on his residence at a time when the pontiff is stressing austerity.

But the Pontiff stopped short of dismissing him outright, a step which many German Catholics and the media had called for.

In a highly unusual move, Bishop Franz-Peter Tebartz-van Elst of Limburg was ordered to leave his diocese while an investigation and audit into cost over-runs is held, a Vatican statement said.

The bishop, who met the Pope on Monday, “was currently not in a position to carry out his episcopal ministry”. It said he should stay outside his diocese “for a period,” and that it would be administered in his absence by a vicar-general.

Installed free-standing bath that cost €15,000

The issue has proven a major embarrassment for the Pope, who has called for a more austere Church that sides with the poor. He has told bishops not to live like princes, and has also promised to clean up the murky finances of the Vatican bank. The German media has dubbed Tebartz-van Elst “the luxury bishop” after an audit of his spending, ordered after a Vatican monitor visited Limburg last month, revealed the residence cost at least €31 million – six times more than planned.

He has apologised for any “careless-ness or misjudgment on my part”, but denies wrongdoing.

Tebartz-van Elst has also been accused by German magistrates of lying under oath about a first-class flight to visit poverty programmes in India.

German media, citing official documents, said the residence had been fitted with a free-standing bath that cost €15,000, a conference table that cost €25,000 and a private chapel for €2.9 million.

The pope’s decision on the fate of Tebartz-van Elst was unusual because it appeared to leave him in limbo, falling somewhere between a suspension and an outright dismissal.

This was apparently to buy time for the Vatican and German Church leaders to review the situation in the troubled diocese along with its broader ramifications. Archbishop Robert Zollitsch, head of the German bishops’ conference, said he hoped the decision would herald “a space that will allow a return to inner serenity and create a new basis for dialogue”.

The “luxury bishop” story has deeply embarrassed a Church enjoying an upswing in popularity thanks to Pope Francis’s mass appeal and following years of criticism for hiding sexual abuse cases among clergy.

Tebartz-van Elst, 53, is 22 years away from official retirement age in the Church and his saga represents an extraordinary management quandary for the Vatican.

Even if he eventually steps down from the diocese of Limburg, he would retain the title and rank of bishop, meaning the Vatican would have to find another post for him somewhere.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.