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Analysis
CV NEWS FEED // The Vatican faces mounting financial difficulties under Pope Francis, with dwindling donations and significant losses from past investments exacerbating its precarious position.
According to the Economic Times, the Vatican’s $87 million operating deficit in 2023 and declining donations are significantly impacting the Holy See’s operations. Some critics within the Vatican blame Pope Francis for the financial mismanagement.
The consequences of the Vatican’s financial challenges are being felt across its workforce. Retired staff and clergy are particularly vulnerable, as dwindling funds jeopardize their pensions and day-to-day financial support. This has sparked growing dissatisfaction among those who depend on the Vatican for their livelihoods.
While this is not the first financial hurdle for the Church — previous crises during the European recession in 2012 and the COVID-19 pandemic strained resources — the current challenges appear more dire, according to financial analysts, as it appears the Vatican is heading toward potential bankruptcy.
Adding to the Vatican’s woes are last year’s revelations from its largest financial trial to date, which culminated in the December 2023 conviction of Cardinal Giovanni Angelo Becciu and several others for financial crimes.
The trial, which began in 2021, uncovered egregious mismanagement, including a failed London real estate investment that cost the Vatican over €100 million. The deal, initiated in 2014 with Church funds, intended to develop a high-end residential property but collapsed in 2018, leaving the Vatican with massive losses.
Cardinal Becciu, previously Pope Francis’ close aide, was also implicated in misdirecting hundreds of thousands of euros to his family and private intelligence agents under questionable pretenses.
>> BREAKING: CARDINAL CONVICTED BY VATICAN COURT, SENTENCED TO FIVE AND HALF YEARS <<
The Becciu scandal highlights significant lapses in the Vatican’s financial oversight. The Cardinal was accused of witness tampering to suppress evidence from his former deputy, Monsignor Alberto Perlasca, the prosecution’s key witness.
The Vatican’s financial troubles have broader implications. Declining donations, attributed partly to waning trust among the faithful, threaten the Church’s ability to sustain global initiatives. Meanwhile, international scrutiny of the Vatican’s transparency has grown, particularly as the details of Becciu’s financial dealings surfaced.
With financial mismanagement and diminishing resources, the Vatican faces an uncertain future. Critics argue that Pope Francis must urgently address these issues to restore confidence and safeguard the Church’s global mission. However, as the repercussions of past failures and ongoing financial strains persist, the challenges remain formidable.
