The Vatican is on the brink of bankruptcy and may not be able to meet its pension obligations after a collapse in revenues.
The latest financial statements showed the Vatican- the world’s smallest country – ran an operating deficit of 83 million euros (£69m) in 2023, five million more than in 2022.
One key reason for the deficit is a collapse in donations from Catholic Churches around the world, as well as from the public.
Donations are one of three major sources of income for the Vatican, along with monies received from real asset assets and museum entry fees.
Many Catholics have stopped their donations after growing disillusioned with the reforms of Pope Francis.
At the same time, visitor numbers to the city-state have still not recovered to their pre-Covid levels.
The growing financial crisis could potentially impact the ability of the Vatican to pay out pensions in the near future.
Currently the pension fund is estimated to be a staggering €631 million (£523m) in the red.
Pope Francis acknowledged the seriousness of the situation, saying: “The current system is unable to guarantee in the medium term compliance with pension obligations for future generations.
“We face serious and complex problems that risk worsening if not addressed in time.”
The pontiff added “urgent structural measures” needed to be taken to ensure the stability of the pension fund.
To that effect, the pope said he had appointed Cardinal Kevin Farrell as “Sole Administrator of the Pension Fund.”
The Vatican hopes to boost its coffers from an expected increase in tourists to Rome next year.
The city is preparing to celebrate the Great Jubilee, which commemorates the union between Christianity and the Roman Empire at the Council of Nicaea 1,700 years ago.
The Council laid the foundations for the Church’s omnipotent power over the next seventeen centuries.
The Jubilee is expected to attract over 35 million pilgrims, eager for indulgence from their sins.
The visitors are also expected to spend money on cultural and tourist programmes, devised jointly by Rome City Hall and the Vatican.
