There was no such thing as "the Vatican" at that time or for most of the 1,000 years that followed.
I guess you could say they have made progress.
The Catholic Church's understanding and appreciation of her Jewish antecedents is grounded in Mary, the Mother of God, and in the Messiah's descent from the royal line of David. Unfortunately one place progress is not being made is in Israel's war on indigenous Christians in Palestine, and its systematic and sustained interference with the rights of Christian bodies to function freely in the holy land.
Could you give us one example of this? Oh, and at the same time, give us an example of those same Christians condemning the murderous PLO.
Have you ever been to Israel? I have and you are full of shit. You must have missed the articles on the city of Jerusalem giving out free Christmas trees. There are many practicing Christians there, and they enjoy all the same rights as any other citizens. Or by "systematic and sustained interference with the rights of Christian bodies" do you mean, "they won't let us force them all to convert?
Funny, I don't see any mention at all in your comments about Palestinian Muslim interference with the rights of Christian bodies to function freely in territory under PA control.