Vatican's New Pope Leo Xiv Faces Financial Challenges and Tax Reforms

The newly elected Pope Leo XIV faces significant financial challenges within the Vatican. These challenges include balancing the budget and continuing financial reforms initiated by his predecessor, Pope Francis. Pope Francis implemented measures to increase transparency and efficiency in Vatican finances, such as limiting spending and centralizing investments. He also oversaw a real estate audit to improve income and asset valuation. The Vatican paid taxes to Italy, demonstrating a commitment to financial responsibility. However, deficits remain a challenge for the new Pope. The Vatican's income sources are limited, primarily relying on real estate holdings in Italy and pontifical schools and hospitals in Rome. Donations also contribute significantly to the Vatican's revenue. The latest financial data revealed an operating deficit of €83 million and a pension fund deficit of €631 million. Pope Leo XIV's leadership will be crucial in addressing these financial issues and navigating the path forward.