The Economic and Faith Crisis of the Vatican

Economically speaking, the Vatican State is currently facing a severe financial crisis, with a deficit of approximately €70,000,000. Scandals, cases of money laundering, and, most importantly, a decline in donations linked to religious faith have played a crucial role in this situation. As a result, revenues are lower than expenditures.

One of the most significant episodes contributing to this crisis was the London real-estate scandal. More precisely, between 2014 and 2018, the Vatican’s Secretariat of State invested over €350 million in a luxury property located at 60 Sloane Avenue in Chelsea.

This deal later resulted in losses exceeding €100 million when the building was sold at a substantial loss and became the subject of criminal and civil litigation involving high-profile Vatican figures.

Regarding this affair, Pope Francis stated in his autobiography that it represented one of the darkest periods of his life, describing it as a painful and “bad page” in the history of the Church.

Indeed, he pointed out that, despite the gravity of the situation, he felt morally compelled to confront the issue with transparency and honesty, rather than conceal it.

This failed investment, combined with accusations of mismanagement, corruption, and opaque decision-making, not only generated direct financial costs but also undermined the Vatican’s ethical credibility, contributing to lower donations and a broader crisis of confidence in the management of Vatican funds.

Ethical issues, therefore, are central to this crisis, as they have significantly eroded trust in the institution.

Furthermore, it was revealed in 2021 that the Vatican had made substantial investments in pharmaceutical companies producing the morning-after pill until 2016, raising additional ethical concerns.

The Vatican’s financial deficit cannot be understood solely as an economic imbalance but rather as the outcome of deep structural and ethical challenges that have weakened both financial sustainability and trust among people.

Benedetta Zimone