Pope Francis Calls for Vatican Pension Reform

Pope Francis has urgently called for reforms to the Vatican's pension fund, which he described as facing a 'serious prospective imbalance' that threatens its long-term viability. In response to this financial crisis, he has appointed Cardinal Kevin Farrell as the sole administrator tasked with implementing necessary changes. The pope's letter to cardinals emphasized the need for 'difficult decisions' and collective sacrifice, reflecting the Vatican's ongoing struggle with budget deficits exacerbated by past mismanagement and the impact of COVID-19. Despite recent cost-cutting measures, including salary reductions for high-ranking officials, concerns persist among employees about their job security and compensation. The Vatican's financial turmoil is underscored by a significant estimated net liability of approximately 631 million euros for post-employment benefits. Pope Francis's ongoing efforts signify a pivotal moment for financial reform within the Vatican, which has not released a comprehensive budget statement in years.