Pope Francis’s financial reforms have left a mixed legacy, with significant strides made in addressing the Vatican’s budget deficit and pension system, but substantial challenges still persist.
The next Pope will inherit a reformed but still fragile Vatican economy, one that has been the subject of intense scrutiny and reform under the leadership of Pope Francis. Before his passing on April 21, Francis had made significant strides in addressing the Vatican’s chronic budget deficit, reforming the scandal-ridden Vatican Bank, and tackling a pension system that remains severely underfunded.
A CEO’s Approach to Reform
Francis operated with a hard-nosed approach, slashing salaries for senior staff, reducing housing subsidies, and freezing new hiring across the city-state. This fiscal discipline was accompanied by a concerted effort to modernize Church finances, assembling an outside team of professionals to bring expertise in financial management.
The Financial Reforms Team
Key members of Francis’s reform team included Jean-Baptiste de Franssu, Jochen Messemer, Joseph F. X. Zahra, and George Yeo. Together, they dismantled archaic financial systems and enlisted global accounting firms to help bring Vatican finances up to international standards.
Consolidating Financial Roles
In 2014, Francis consolidated the city-state’s financial roles into a single body called the Secretariat of the Economy, effectively creating a Chief Financial Officer (CFO). The current leader of this body is Benjamín Estévez de Cominges, an MIT graduate.
Challenges Ahead
Despite significant reforms, the Vatican still grapples with substantial challenges. The Roman Curia‘s pension system faces a serious prospective imbalance, while budget and pension deficits persist. Trust in Vatican banking remains fragile, and the financial system remains precarious.
A Legacy of Reforms
Pope Francis‘s legacy will be one of reform, but also of unfinished work. The next Pope will inherit a leaner, more accountable financial apparatus, but one still riddled with liabilities. To succeed, they will need to be as unyielding a fiscal steward as their predecessor, addressing the lingering issues that have plagued the Vatican for years.
