Pope Leo XIV faces funding challenges for cash-strapped Vatican

Pope Leo XIV faces funding challenges for cash-strapped Vatican
Pope Leo XIV is facing challenges to drum up the funds needed to pull his city-state out of the red. (Reuters)
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Updated 07 June 2025

Pope Leo XIV faces funding challenges for cash-strapped Vatican

Pope Leo XIV faces funding challenges for cash-strapped Vatican

VATICAN CITY: The world’s smallest country has a big budget problem.

The Vatican doesn’t tax its residents or issue bonds. It primarily finances the Catholic Church’s central government through donations that have been plunging, ticket sales for the Vatican Museums, as well as income from investments and an underperforming real estate portfolio.

The last year the Holy See published a consolidated budget, in 2022, it projected €770 million ($878 million), with the bulk paying for embassies around the world and Vatican media operations. In recent years, it hasn’t been able to cover costs.

That leaves Pope Leo XIV facing challenges to drum up the funds needed to pull his city-state out of the red.

Withering donations

Anyone can donate money to the Vatican, but the regular sources come in two main forms.

Canon law requires bishops around the world to pay an annual fee, with amounts varying and at bishops’ discretion “according to the resources of their dioceses.” US bishops contributed over one-third of the $22 million (€19.3 million) collected annually under the provision from 2021-2023, according to Vatican data.

The other main source of annual donations is more well-known to ordinary Catholics: Peter’s Pence, a special collection usually taken on the last Sunday of June. From 2021-2023, individual Catholics in the US gave an average $27 million (€23.7 million) to Peter’s Pence, more than half the global total.

American generosity hasn’t prevented overall Peter’s Pence contributions from cratering. After hitting a high of $101 million (€88.6 million) in 2006, contributions hovered around $75 million (€66.8 million) during the 2010’s then tanked to $47 million (€41.2 million) during the first year of the COVID-19 pandemic, when many churches were closed.

Donations remained low in the following years, amid revelations of the Vatican’s bungled investment in a London property, a former Harrod’s warehouse that it hoped to develop into luxury apartments. The scandal and ensuing trial confirmed that the vast majority of Peter’s Pence contributions had funded the Holy See’s budgetary shortfalls, not papal charity initiatives as many parishioners had been led to believe.

Peter’s Pence donations rose slightly in 2023 and Vatican officials expect more growth going forward, in part because there has traditionally been a bump immediately after papal elections.

New donors

The Vatican bank and the city state’s governorate, which controls the museums, also make annual contributions to the pope. As recently as a decade ago, the bank gave the pope around €55 million ($62.7 million) a year to help with the budget. But the amounts have dwindled; the bank gave nothing specifically to the pope in 2023, despite registering a net profit of €30 million ($34.2 million), according to its financial statements. The governorate’s giving has likewise dropped off.

Some Vatican officials ask how the Holy See can credibly ask donors to be more generous when its own institutions are holding back.

Leo will need to attract donations from outside the US, no small task given the different culture of philanthropy, said the Rev. Robert Gahl, director of the Church Management Program at Catholic University of America’s business school. He noted that in Europe there is much less of a tradition (and tax advantage) of individual philanthropy, with corporations and government entities doing most of the donating or allocating designated tax dollars.

Even more important is leaving behind the “mendicant mentality” of fundraising to address a particular problem, and instead encouraging Catholics to invest in the church as a project, he said.

Speaking right after Leo’s installation ceremony in St. Peter’s Square, which drew around 200,000 people, Gahl asked: “Don’t you think there were a lot of people there that would have loved to contribute to that and to the pontificate?”

In the US, donation baskets are passed around at every Sunday Mass. Not so at the Vatican.

Untapped real estate

The Vatican has 4,249 properties in Italy and 1,200 more in London, Paris, Geneva and Lausanne, Switzerland. Only about one-fifth are rented at fair market value, according to the annual report from the APSA patrimony office, which manages them. Some 70 percent generate no income because they house Vatican or other church offices; the remaining 10 percent are rented at reduced rents to Vatican employees.

In 2023, these properties only generated €35 million euros ($39.9) in profit. Financial analysts have long identified such undervalued real estate as a source of potential revenue.

But Ward Fitzgerald, the president of the US-based Papal Foundation, which finances papal charities, said the Vatican should also be willing to sell properties, especially those too expensive to maintain. Many bishops are wrestling with similar downsizing questions as the number of church-going Catholics in parts of the US and Europe shrinks and once-full churches stand empty.

Toward that end, the Vatican recently sold the property housing its embassy in Tokyo’s high-end Sanbancho neighborhood, near the Imperial Palace, to a developer building a 13-story apartment complex, according to the Kensetsu News trade journal.

Yet there has long been institutional reluctance to part with even money-losing properties. Witness the Vatican announcement in 2021 that the cash-strapped Fatebenefratelli Catholic hospital in Rome, run by a religious order, would not be sold. Pope Francis simultaneously created a Vatican fundraising foundation to keep it and other Catholic hospitals afloat.

“They have to come to grips with the fact that they own so much real estate that is not serving the mission of the church,” said Fitzgerald, who built a career in real estate private equity.


Poland detains ‘Belarusian agent’, expels diplomat

Updated 5 sec ago

Poland detains ‘Belarusian agent’, expels diplomat

Poland detains ‘Belarusian agent’, expels diplomat
Since Russia invaded Ukraine in 2022, relations between Poland, and neighboring Belarus have sunk to a low
Polish Interior Minister Tomasz Siemoniak identified the Belarusian agent as Uladzislau N

WARSAW: Poland’s prime minister said on Tuesday that its security agency had detained a “Belarusian agent,” adding that the EU member would also expel a Belarusian diplomat for “supporting aggressive activity” against Poland.
Since Russia invaded Ukraine in 2022, relations between Poland, one of Kyiv’s main supporters in the European Union, and neighboring Belarus, a Moscow ally, have sunk to a low.
Besides their tense relations over the Ukraine conflict, Poland also accuses Belarus of arranging for a wave of asylum seekers from third countries to cross the border into Poland, in what Warsaw says is a bid to destabilize the EU.
Poland’s ABW internal security agency “detained a Belarusian agent yesterday. The detention was the result of cooperation between the (intelligence) services of Romania and the Czech Republic among others,” Polish Prime Minister Donald Tusk said on X.
Polish Interior Minister Tomasz Siemoniak identified the Belarusian agent as Uladzislau N.
He said the intelligence services of Hungary and Moldova had also been involved in the operation that resulted in the detention.
“The suspect conducted intelligence activity on Polish and Hungarian territory,” Siemoniak said on X, adding that prosecutors had charged him with espionage.
Tusk said that “a Belarusian diplomat supporting aggressive activity by Belarusian services against our country will also be expelled from Poland.”
Siemoniak said the foreign ministry had summoned the Belarusian charge d’affaires to inform him that the diplomat’s accreditation had been revoked and the envoy designated as personan non grata in Poland.
Siemoniak said the diplomat had been “directly involved in intelligence activity.”

Appeals court hears from US military contractor ordered to pay $42M to former Abu Ghraib detainees

Appeals court hears from US military contractor ordered to pay $42M to former Abu Ghraib detainees
Updated 09 September 2025

Appeals court hears from US military contractor ordered to pay $42M to former Abu Ghraib detainees

Appeals court hears from US military contractor ordered to pay $42M to former Abu Ghraib detainees
  • Suhail Al Shimari, Salah Al-Ejaili and Asa’ad Al-Zubae testified at last year’s trial that that they were subjected to beatings, sexual abuse, forced nudity and other cruel treatment
  • Military police seen in the photos smiling and laughing as they directed the abuse were convicted in military courts-martial

VIRGINIA, USA: A federal appeals court was scheduled to hear oral arguments Tuesday about an appeal from a US military contractor ordered to pay $42 million for contributing to the torture and mistreatment of three former detainees at Iraq’s notorious Abu Ghraib prison two decades ago.
Reston, Virginia-based CACI appealed last year’s civil lawsuit verdict to the 4th US Circuit Court of Appeals.
Suhail Al Shimari, Salah Al-Ejaili and Asa’ad Al-Zubae testified at last year’s trial that that they were subjected to beatings, sexual abuse, forced nudity and other cruel treatment at the prison during the US occupation of Iraq. A jury awarded them $3 million each in compensatory damages and $11 million each in punitive damages.
The three did not allege that CACI’s interrogators explicitly inflicted the abuse themselves, but argued CACI was complicit because its interrogators conspired with military police to “soften up” detainees for questioning with harsh treatment.
CACI supplied the interrogators who worked at the prison. It has denied any wrongdoing and has emphasized throughout 17 years of litigation that its employees are not alleged to have inflicted any abuse on the plaintiffs in the case.
Photos of the abuse released in 2004 showed naked prisoners stacked into pyramids or dragged by leashes. Photos included a soldier smiling and giving a thumbs-up while posing next to a corpse, detainees being threatened with dogs, and a detainee hooded and attached to electrical wires.
Military police seen in the photos smiling and laughing as they directed the abuse were convicted in military courts-martial. But none of the civilian interrogators from CACI ever faced criminal charges, even though military investigations concluded that several CACI interrogators had engaged in wrongdoing.
Last year’s civil trial and subsequent retrial were the first time a US jury heard claims brought by Abu Ghraib detainees in the 20 years since the photos shocked the world.
None of the three plaintiffs were in any of photos but they described treatment very similar to what was depicted.
The $42 million they were awarded fully matches the amount sought by the plaintiffs. It’s also more than the $31 million that the plaintiffs said CACI was paid to supply interrogators to Abu Ghraib.


Ethiopia mega-dam overcame war, funding obstacles

Ethiopia mega-dam overcame war, funding obstacles
Updated 09 September 2025

Ethiopia mega-dam overcame war, funding obstacles

Ethiopia mega-dam overcame war, funding obstacles
  • CEO of Webuild Pietro Salini: ‘This country that was dark in the evening when I first arrived here... is now selling energy to neighboring countries’
  • A brutal civil war between the government and rebels from the Tigray region between 2020 and 2022, which claimed roughly 600,000 lives, also slowed the GERD’S completion

NAIROBI: Africa’s largest hydroelectric dam, inaugurated in Ethiopia Tuesday, had to overcome financial, logistical and war-related challenges, the Italian construction magnate behind the scheme told AFP.
African leaders joined Ethiopian Prime Minister Abiy Ahmed in officially unveiling the Grand Ethiopian Renaissance Dam (GERD) that has promised to revolutionize the country’s energy sector but also caused tensions with neighboring Egypt.
The dam is the largest by power capacity on the continent and could transform a country where almost half the 130-million population still lacks electricity, according to World Bank data.
“This country that was dark in the evening when I first arrived here... is now selling energy to neighboring countries,” Pietro Salini, CEO of Webuild, the main contractor for the project, told AFP.
Kenya, Tanzania and South Sudan have already agreed deals to buy the electricity.
The dam towers 170 meters (550 feet) high and stretches nearly two kilometers (1.2 miles) across the Blue Nile near the Sudanese border.
The $4-billion megastructure is designed to hold 74 billion cubic meters of water and generate 5,150 megawatts of electricity — more than double Ethiopia’s current capacity.
More than 25,000 people, mostly from Europe and Ethiopia, labored on the giant site from 2011 to its official opening.
Salini said his firm spent some 250,000 hours training workers in health and safety and technical engineering, noting: “The human factor is always the hardest to tackle.”
Neighbouring countries Egypt and Sudan are wrong to worry about the impact of the dam on their water supply, he said.
“The hydroelectric project releases water to produce energy. They are not irrigation schemes that consume water,” said Salini.
“There’s no change in the flow. It’s just regulated,” he added.
Salini also said the project was entirely financed by Ethiopia.
“Not one international lender was willing to put money in this project,” he told AFP.
A brutal civil war between the government and rebels from the Tigray region between 2020 and 2022, which claimed roughly 600,000 lives, also slowed the GERD’S completion.
But all those challenges are now in the past, Salini said.
“At an opening ceremony, you don’t think about past difficulties,” he added.


Moldova’s president accuses Russia of conducting ‘hybrid war’ ahead of key elections

Moldova’s president accuses Russia of conducting ‘hybrid war’ ahead of key elections
Updated 09 September 2025

Moldova’s president accuses Russia of conducting ‘hybrid war’ ahead of key elections

Moldova’s president accuses Russia of conducting ‘hybrid war’ ahead of key elections
  • Sandu reiterated long-held allegations that Moscow is conducting a sprawling ” hybrid war ” against Moldova
  • “The Kremlin’s goal is clear: to capture Moldova through the ballot box, to use us against Ukraine”

BUCHAREST: Moldovan President Maia Sandu warned Tuesday that her country’s democracy faces a “race against time” from what she said was attempts by Russia to influence parliamentary elections this month.
In a speech to the European Parliament in Strasbourg, Sandu said the Sep. 28 vote to choose a new 101-seat legislature would be the “most consequential” election in the European Union-candidate country’s history.
Sandu reiterated long-held allegations that Moscow is conducting a sprawling ” hybrid war ” against Moldova — through disinformation, vote-buying, illicit party funding, and myriad other tactics — to try to undermine the upcoming vote and derail Moldova’s path toward EU membership.
“The Kremlin’s goal is clear: to capture Moldova through the ballot box, to use us against Ukraine, and to turn us into a launchpad for hybrid attacks on the European Union,” Sandu said. “If our democracy cannot be protected, then no democracy in Europe is safe.”
Sandu said the election outcome will determine whether Moldova becomes a stable democracy or whether alleged Russian destabilization pulls Moldova away from Europe. “Today we face an unlimited hybrid war on a scale unseen before the full invasion of Ukraine,” she added.
Moscow had repeatedly denied meddling in Moldova.
European Parliament President Roberta Metsola told Sandu before her speech that “we are all deeply impressed by your determination, courage, and steadfast commitment to Moldova’s people,” and that the chamber stands united in support of Moldova’s democratic path toward EU membership.
The EU Parliament will debate later on Tuesday a resolution on strengthening Moldova’s resilience against Russian “hybrid threats and malign interference.” It is expected to vote on it on Wednesday.
Sandu’s remarks on Tuesday come weeks after the leaders of France, Germany, and Poland traveled to Moldova in a show of support to mark the country’s 34 years of independence from the Soviet Union.
Moldova’s upcoming parliamentary election will be pivotal to the country’s geopolitical course: whether it can stay convincingly on its EU path or be dragged back into Russia’s orbit.
“It is a race against time, to anchor our democracy inside the (European) Union, where it will be protected from the greatest threat we face: Russia,” Sandu said.
The pro-European Party of Action and Solidarity, or PAS, which Sandu founded in 2016, won a clear majority in the 2021 parliamentary election but risks losing its majority in the Sep. 28 vote, with no clear pro-European alternatives on the ballot.
In the aftermath of Russia’s full invasion of neighboring Ukraine in 2022, Moldova applied for EU membership and was granted candidate status that year. Brussels agreed to open accession negotiations last year.
“Precisely because we have advanced greatly on this path, Russia has unleashed its full arsenal of hybrid attacks against us,” Sandu said. “The battlefield is our elections.”
Last year, Moldovans voted narrowly in favor of securing the country’s EU path, the same day a presidential election was held, which secured Sandu a second term. But those two votes were also overshadowed by widespread claims of Russian interference, which Moscow denied.
Siegfried Muresan, Chair of the European Parliament’s delegation to Moldova, said in a statement that “Moldova is a priority for EU security, not just EU enlargement” and that “a stronger Moldova means a weaker Russia at our borders.”
“This is why, in this week’s plenary, we will vote on a resolution reaffirming strong support for Moldova’s EU path,” he said. “We will also call on the Council to start negotiations on the first cluster of Moldova’s accession process.”


At least 60 people killed in a rebel attack in eastern Congo

At least 60 people killed in a rebel attack in eastern Congo
Updated 09 September 2025

At least 60 people killed in a rebel attack in eastern Congo

At least 60 people killed in a rebel attack in eastern Congo
  • The attack was carried by the Allied Democratic Force in Ntoyo, North Kivu, after residents gathered at a burial
  • The region is beset by a set of complex conflicts, including an increase in attacks by the ADF

GOMA: Militants in eastern Congo affiliated with the Daesh group killed at least 60 people in an attack overnight, an official said.
The attack was carried by the Allied Democratic Force in Ntoyo, North Kivu, after residents gathered at a burial.
“The ADF attack caused around 60 deaths, but the final toll will be given later this evening because the territory has just deployed services to the area to count the number of beheaded people,” Col. Alain Kiwewa, local administrator of the Lubero territory where Ntoyo is located, told The Associated Press.
“There were about 10 of them. I saw machetes. They told people to gather in one place and started cutting them. I listened to people screaming and I fainted,” a survivor who was present at the burial told the AP. She requested anonymity out of fear of reprisal.
The region is beset by a set of complex conflicts, including an increase in attacks by the ADF, which operates in the border region between Congo and Uganda. In July, the group carried out two large-scale attacks in Ituri province — a church attack killing at least 34 in Komanda and an earlier attack that killed 66 people in Irumu.
Despite joint operations by both Congo and Uganda to target the militant group, the ADF, which pledged allegiance to the Daesh group in 2019, has continued to attack civilians.
The attacks worsen the plight of Congolese in the eastern region where several other conflicts are unfolding, including a major conflict between the Rwanda-backed M23 militant groups and the central government. The government is battling multiple armed groups across different fronts, which has taken troops away from border villages, especially to combat the M23.
At a UN Human Rights Council session in Geneva on Tuesday, UN High Commissioner for Human Rights Volker Türk said the ADF had “taken advantage of the security vacuum.”