Ireland's decision to rely upon a nonresident ambassador to the Holy See rather than to continue the expense of two embassies in Rome, one for Italy and one for the Vatican, makes economic sense.
Ireland is responsibly looking to meet its economic obligations to the EU in a manner that is least disruptive to existing personnel and its national interests. At a time when the world economy is anxiously waiting to see if Greece can meet the fiscal expectations of Eurozone obligations without imposing undue hardship on its citizens, Ireland deserves praise, not scorn or suspicion, for its good sense.
It is, of course, understandable how some uninformed by the context might see this as a diplomatic rebuke to the Holy See. There is no credible evidence to suggest it is. After all, while 179 countries have diplomatic relations with the Vatican, close to half of that number is nonresident, and housed outside Rome. What's more, Ireland hardly singled out the Holy See, announcing the closure of embassies in Iran and East Timor at the same time.