The next Pope faces unprecedented financial challenges following Pope Francis’s death, with Vatican insiders quietly seeking someone who can balance spiritual leadership with the financial acumen of a chief executive.

At a Glance

• Pope Francis passed away on April 21, prompting a transition in leadership that will shape the Catholic Church’s financial future
• Despite Francis’s efforts to modernize Vatican finances, scandals and resistance from traditionalists hampered full reform
• The Vatican’s unstable financial foundation relies heavily on tourism, charitable donations, and real estate income
• A significant pension fund deficit remains unaddressed despite years of financial reform attempts
• Vatican insiders are seeking a Pope with business management skills alongside theological credentials

The End of Francis’s Financial Reforms

With Pope Francis’s passing on April 21, the Catholic Church enters a critical transition period that extends beyond spiritual leadership to the complex world of Vatican finances.

As the first Latin American pope, Francis brought an outsider’s perspective to the centuries-old financial systems of the Holy See, implementing modern accounting practices and transparency measures that faced significant internal pushback. The College of Cardinals will soon gather for a conclave to elect the next pope, with financial governance capabilities now quietly ranking among their selection criteria.

Francis’s reform efforts included creating the Secretariat for the Economy and appointing Cardinal George Pell to oversee Vatican finances, steps that modernized financial operations but encountered resistance from traditionalists embedded within the Curia.

This tension between old and new approaches to Church finances will significantly influence the conclave, scheduled to begin 15-20 days after the pope’s death following funeral rites and a mourning period.

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A History of Financial Scandals

The Vatican Bank, officially known as the Institute for the Works of Religion (IOR), has been plagued by scandals for decades. Despite Francis’s efforts to clean house, financial controversies persisted during his papacy, most notably the €350 million London real estate deal that resulted in criminal charges against several Vatican officials. This continued pattern of financial impropriety underscores the challenge awaiting the next pontiff, who must navigate between maintaining the Church’s spiritual mission and implementing rigorous financial controls.

The Vatican’s hiring of external auditors and implementation of international accounting standards represented significant progress, but these reforms were often diluted or delayed by internal opposition. Cardinal Pell, who led the financial reform efforts before temporarily leaving to face charges in Australia (of which he was ultimately acquitted), described the goal as becoming “a model of good practice in financial administration” – an aspiration that remains unrealized.

Unstable Financial Foundation

The Vatican’s current financial structure rests on precarious pillars: tourism revenue, charitable donations, and real estate income. The pandemic severely impacted visitor numbers to Vatican museums and St. Peter’s Basilica, exposing vulnerabilities in this revenue stream. Meanwhile, Peter’s Pence – the global collection intended to support papal charities – has seen declining contributions, with controversies arising when these funds were used for covering administrative deficits rather than charitable works.

Perhaps most concerning is the Vatican Pension Fund’s persistent deficit, which threatens long-term financial stability with no significant measures implemented to address it. This growing liability represents a ticking financial time bomb that the next pontiff cannot ignore, regardless of their theological leanings. Leading candidates for the papacy include Luis Antonio Tagle, Pietro Parolin, Peter Turkson, Peter Erdő, and Angelo Scola, though financial management capabilities may now factor into deliberations.

A Church at the Crossroads

The Church faces a pivotal moment with Francis’s passing, confronting declining influence in Western nations while experiencing growth in the Global South. This shifting demographic reality will certainly influence the conclave, as will Francis’s legacy of appointing diverse cardinals from previously underrepresented regions. Whether the cardinals elect a traditionalist or progressive successor, the financial challenges remain the same: modernizing operations while maintaining the Church’s core mission.

The next Pope must navigate these financial challenges while addressing other pressing issues facing the Church, including ongoing sexual abuse cases and the need for transparency in Church governance. Finding a leader capable of standing firm against entrenched interests while implementing sound financial management practices represents a daunting task for the College of Cardinals. As they gather in the Sistine Chapel for their secret ballots, the future of both the Church’s spiritual mission and financial stability hang in the balance.