The Vatican has published a document in which Pope Leo XIV considers measures adopted by his predecessor Francis in March 2021 in response to the 'exceptional challenge of the pandemic' to be obsolete.
The Pope emphasized his confidence that the institutions of the Holy See and the Vatican City State will continue to ensure economic stability through various instruments.
In 2021, Francis ordered a 10% reduction in the salaries of cardinals, an 8% reduction for heads and secretaries of dicasteries, and a 3% reduction in the income of clergy and religious persons. Furthermore, salary increases based on seniority were suspended until 2023 for all employees starting from the fourth hierarchical level.
These measures were justified by the deficit that has characterized the financial management of the Holy See for many years, and primarily by the consequences of the pandemic, which 'negatively affected all sources of income of the Holy See and the Vatican City State.'
Pope Leo XIV's decision comes against the backdrop of improving Vatican financial performance. According to the latest data for 2024, the Holy See registered a surplus of 1.6 million euros, after a deficit of 51.2 million euros in 2023. This improvement is mainly attributed to increased donations and better financial results.
The structural deficit, which excludes financial results, also decreased by almost 50%, falling from 83.5 million euros in 2023 to 44.4 million euros in 2024. The Secretariat for the Economy of the Vatican noted that the results demonstrate a positive trend in the finances of the Holy See, but warned that 'complete financial sustainability is a long-term goal,' as a significant part of the improvement is linked to the growth of donations.