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VATICAN CITY, Feb 27 – Before being hospitalized for double pneumonia, Pope Francis faced resistance from senior Vatican officials regarding his efforts to address the Holy See’s financial struggles.
Just three days before his hospitalization, Francis established a new high-level “Commission on Donations for the Holy See” to boost contributions to the Vatican, home to the 1.4-billion-member Catholic Church. The move followed internal opposition to his budget-cutting measures from senior cardinals within the Roman Curia, according to Vatican insiders.
Mounting Budget Deficit
The Vatican has been grappling with financial shortfalls for years, with the most recent accounts showing an €83 million ($87 million) deficit in 2024—more than double the €33 million reported in 2022. Despite Pope Francis implementing salary cuts for cardinals three times since 2021 and pushing for a “zero deficit” policy, the financial situation remains dire.
The Vatican’s financial troubles stem from multiple factors, including pandemic-related losses from decreased tourism, growing pension liabilities, and funding cuts to its extensive media operations.
Internal Pushback
In a closed-door meeting late last year, Vatican department heads, including senior cardinals, opposed the Pope’s proposal to seek external funding to bridge the deficit. Some expressed concerns that relying on outside donors could create conflicts of interest for the Church.
While the Vatican has traditionally relied on donations, investment income, and revenue from the Vatican Museums, insiders suggest that wealthy Catholic foundations in the U.S. and Europe could become key funding sources. However, experts warn that donors may hesitate if they believe their money is being used to cover pension shortfalls instead of supporting charitable causes.
Looking Ahead: Jubilee Year 2025
The Vatican is pinning hopes on the upcoming 2025 Holy Year (Jubilee), expecting a record 32 million visitors. Increased museum admissions—currently priced at €20—could significantly boost revenue, though much of it will go toward operational costs rather than directly covering the deficit.
With limited fiscal options, no ability to issue debt or levy taxes, and growing financial strains, the Vatican faces tough choices ahead. If the budget crisis worsens, experts warn the Church may have to cut back on its charitable missions and diplomatic presence worldwide.
As Pope Francis continues to oversee Vatican affairs from the hospital, his latest commission aims to rally financial support. Whether it succeeds in stabilizing the Vatican’s finances remains to be seen.
