The phrase above is often attributed to Pope Benedict XVI. I have just googled it but not found it as his own expression, although many people attribute the idea to him. For example, in a story at the time of his election, I find this reference to our own David Gibson: "He has said himself that he wanted a smaller but purer church, Gibson said, referring to Ratzingers suggestion that Christianity may need to become smaller, in terms of its cultural significance, to remain true to itself." In Davids book, The Rule of Benedict, there is a reference to the phrase in the context of a discussion of Ratzingers criticism of the German hierarchy during the Second World War for having allowed concern for institutional security to dull its awareness of what was going on under the Nazis. David writes:
Ratzinger says there was a German core that did remain faithful to Catholicism, but as cardinal and pope he would return to the theme of the dangers of privileging institutional ties, emphasizing that the church would do better to shed bricks and mortaruniversities, hospitals, parochial schools, and the likerather than have them animated by anything less than a purely orthodox faith. This is an element of his oft-cited preference for a "smaller but purer" church of the holy remnant. This preference for the minimum, the creed of the classical conservative he remains, would manifest itself in many ways, notably in an ingrained suspicion of national bishops conferences, which he saw in wartime Germany and later as acting in national-self-interest rather than in the interests of worldwide Catholicism.
This reference could suggest an argument along these lines: If the Catholic Church in Germany under the Nazis had been smaller but purer (e.g., if there had been more people like Franz Jgersttter and fewer like his bishop), it would have provided a greater Christian witness against Hitlers totalitarian regime than it did. I would agree with such an argument. Similarly, the massive institutional structure and apparatus of the Church can seriously compromise the freedom and eagerness of the Church to follow Christ as much as his possessions led the rich young man to depart saddened from his encounter with Christ because he had demanded that he sell all that he have, give it to the poor, and follow him along a path that would end at Calvary.But I would like to be able to consult the place or places in which Ratzinger/Benedict speak of this "smaller but purer church"? Can anyone help?