Vatican Finances Slump Until The Pope Has To Cut Wages Of Cardinals

Pope Francis (Instagram / @ popefrancis)

JAKARTA - Pope Francis has decided to cut the salaries of cardinals and clergy. The order was conveyed by Pope Francis as part of the Vatican's effort to maintain a balance of books during the COVID-19 pandemic.

Starting April, the cardinals' salaries will be cut by ten percent. They are estimated to receive a salary of 5,900 or around Rp. 85 million per month as well as subsidized accommodation.

The Vatican estimates a deficit of 50 million euros or more than Rp853 billion this year. Their income has plummeted due to the closure of museums and other tourist attractions during the pandemic.

Even so the Pope stressed that he did not want to fire people in difficult economic times. The reduction in wages was stipulated by decree.

The contents of the decree were explained in an apostolic letter, which stated about the proportional deductions of wages as of April 1.

Impact of COVID-19 on Vatican finances

The Vatican has previously announced the negative impact of a health emergency due to COVID-19 on all sources of income for the Holy See - the governing body of the Roman Catholic Church - and the Vatican.

The Pope has also issued a new law (UU) designed to increase transparency regarding Vatican finances. This follows a series of scandals at Vatican banks and claims of mismanagement.

Regarding salary cuts, the apostolic letter also said the decision was taken to "protect the various jobs that are currently taking place."

Quoted by the BBC, many analysts and the press saw the Pope's decision to protect the fate of ordinary workers. Many of the cardinals based in the Vatican live there or in apartments in Rome with rents below market rates.

Many Vatican priests and nuns live in religious communities which provide them with greater protection from economic downturns. Most of the cardinals are believed to receive salaries of up to around IDR 85 million each month and often receive subsidized accommodation.

On the other hand, ordinary Vatican employees, such as police, janitors and maintenance personnel, live in Rome and face a higher cost of living. The Vatican spokesman, quoted by Reuters news agency, said most lay employees would not be affected by the pay cut policy.

Earlier in March, the Vatican's top economic officials warned the Holy See they might have to use 40 million euros in reserves for the second year in a row as a result of the pandemic.

Revenues this year are expected to fall 30% from 2020. Popular tourist destinations, St. Peter's Basilica and Vatican Museums were closed or only partially opened last year due to the pandemic.

The Vatican hopes to reopen the museum this month. But Italy's lockdown policy means they have to stay closed.

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