The Vatican is experiencing a prolonged financial crisis. During Pope Francis’s pontificate, the budget deficit has tripled, and pension fund liabilities, which have reached 2 billion euros, could lead to insolvency. This situation may significantly impact the selection of the next pontiff.
This is reported by Finway
According to The Wall Street Journal, the complex financial situation in the Vatican is a result of a lack of transparency in financial matters. Pope Francis has repeatedly attempted to conduct an audit of the finances and reduce expenses, having cut salaries three times for more than 250 cardinals and canceled the provision of housing for high-ranking officials in the Vatican at reduced prices. This reflects his vision of the traditional image of the clergy as modest and humble.
In response to these measures, some departments have begun to conceal financial resources, citing “mission security,” while cardinals from the Congregation for the Doctrine of the Faith (formerly the Inquisition) have withdrawn funds from official accounts, hiding cash in bags and transferring money to personal accounts.
In 2023, Cardinal Giovanni Angelo Becciu was arrested, and the Vatican’s criminal court sentenced him to 5 years in prison for fraud amounting to 400 million dollars.
Audit and Budget Issues in the Vatican
Conducting an accounting audit in the Vatican is complicated by the retention of archaic bookkeeping methods, as all records are still made with pencil on paper. As a result of all these issues, despite its wealth, the Vatican has proven unable to perform basic state functions without a constant deficit. The budget of the city-state is managed by clergy who have little understanding of the mechanisms of treasury operations.
It was previously reported that the Vatican had not published a complete budget report since 2022; however, the latest financial report, approved in 2024, indicated a deficit of 83 million euros. The deficit of the Vatican’s pension fund in 2022 was around 631 million euros and may have significantly increased since then.
Impact on the Selection of a New Pontiff
Some prominent clergy believe that the Vatican’s financial problems could significantly influence the choice of the next Pope.
“They will have to choose someone who raises funds, not a pastor,”
notes Jesuit priest Thomas Reese.
He also suggests that funding within the complex bureaucratic structure of the Vatican could be reduced by Italian Cardinal Pietro Parolin, who is one of the main contenders for the papal throne and has held the position of Secretary of State for nearly the entire pontificate of Francis.