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Pope Francis made a surprising announcement this week, revealing that the Vatican's pension fund is in serious trouble and might not be able to pay pensions in the future unless big changes are made. In a letter sent to all the cardinals and leaders of Vatican offices, the Pope didn’t give exact numbers but said the problem is significant. He mentioned that fixing it would require tough decisions and sacrifices from everyone involved.
This is shocking, especially since the Vatican is known for its wealth. The Vatican and the Holy See (the government of the Catholic Church) manage huge amounts of money, and income from places like the Vatican Museums has often been used to help cover any deficits. However, the Vatican has been running a serious budget shortfall. Last year, the Holy See had a deficit of around 83 million euros ($87 million), and the Vatican’s pension fund is estimated to be around 631 million euros ($664 million) in the red.
Pope Francis has been worried about the Vatican’s finances for a while. Recently, he ordered pay cuts for cardinals, asking them to work toward a “zero deficit” budget. To try to fix the pension issue, he appointed Cardinal Kevin Farrell to take over the pension fund. This move shows that the Vatican is serious about addressing the financial problems, but it’s still surprising that, with all its wealth, the Vatican is facing such a serious financial crisis, especially when it comes to paying pensions.
[Source: Reuters]
