Pope Francis was grappling with significant financial challenges within the Vatican before his hospitalization for double pneumonia. The Vatican is facing an 83-million-euro ($87 million) shortfall, according to sources, with the deficit growing significantly in recent years.
In an effort to address the budget woes, Francis ordered the creation of a new high-level commission, the “Commission on Donations for the Holy See”, to encourage donations from lay Catholics, national bishops conferences, and other potential benefactors. This move came after the pope faced resistance from some cardinals regarding his proposals for budget cuts and seeking outside funding.
The Vatican’s financial struggles are compounded by growing liabilities within its pension fund, estimated to total around 631 million euros. Rev. Tom Reese, a Jesuit priest and commentator, warned that the budget problems could force the Vatican to limit its charitable works or downsize its diplomatic presence worldwide.
The Vatican’s income streams are limited, relying on donations, investments, and revenue from the Vatican Museums. While the museums are expected to generate significant income from the upcoming Catholic Holy Year, also known as a Jubilee, it may not be enough to fill the budget deficit.
To address the financial challenges, the pope may consider selling off some of the Vatican’s investment portfolio, but this would provide only temporary relief and reduce future investment profits. As Reese noted, “That postpones the problem for some future pope… Whether it will be the next (pope) or the one after, there will be a day of reckoning.”