Mimmo Muolo, has been a Vaticanist for the Italian daily Avvenire since 1991 and since 2015 deputy editor-in-chief of the Roman edition of the same newspaper. He has followed the second part of the pontificate of St. John Paul II, then those of Benedict XVI and Pope Francis.
Author of several books, including 'I soldi della Chiesa - The money of the Church' (Ed. Paolinas 2019). His most recent book is the novel 'Per un'altra strada - La leggenda del Quarto Magio'.
Muolo talks to Omnes about the Vatican financial organizations, their latest reforms and some curiosities.
Normally, with laudable exceptions, the predominant perspective of those who deal with the relationship between the Church and money is that of scandal. This is where it is convenient to focus on the general scenario in which the facts are inscribed in order to favor a correct understanding. How to do it?
- Many will remember the beginning of the bestseller by Vittorio Messori Ipotesi su Gesù (Hypothesis on Jesus): "Jesus is not discussed among educated people. Along with sex, money, death, Jesus figures among the topics that are uncomfortable in a civilized conversation".
Ultimately, even 45 years after the first edition of the book, this incipit has not lost its relevance. Especially for one of the topics listed, the money of the Church. One cannot talk about Church money and transparency without having at least the basic notions about this complex subject.
One cannot speak of Vatican finances without knowing the scope and magnitude of the budgets of the Holy See and Vatican City.
What is the real scope of these budgets, what are the reference assets, and what is the relationship between these two budgets?
- First of all, three very important clarifications must be made: the "Vatican" is not the whole Church, but only a segment of it, in very small economic terms; in the word "Vatican" there is actually a layering of meanings that includes (simplifying as much as possible) at least two realities: the Holy See and the Vatican City State; therefore, the "Vatican" budget is also twofold.
On the one hand that of the State, or more precisely that of the Governatoratowhich can be compared to the executive power of any sovereign State, and which refers to the territorial management (0.44 square kilometers) of the Pope's State.
On the other hand, the budget of the Holy See, understood as the set of dicasteries, offices, commissions and related bodies that assist the Pope in the exercise of his Petrine office. For the latter, we speak of a consolidated balance sheet, since it shows the financial and economic results of a set of entities (about sixty) that are part of a single entity.
It should be noted that the budget of the Vatican City State, normally in surplus, contributes to cover the deficit of the latter, which does not have sufficient revenues. Between 2016 and 2020, revenues and expenses remained constant: about 270 million for the former, more or less 320 million the latter. An imbalance, therefore, of 60-70 million.
Just to make some comparisons, Italian State revenues in 2019 amounted to almost 579 billion. As you can see, we are talking about a size that it is no exaggeration to qualify as minuscule. With all due respect to those who still talk about Vatican treasures.
In terms of income, can we identify the main sources?
- It can be said in a nutshell that "Vatican" revenues are of three types: offerings, a small Pil consisting mainly of tertiary activities belonging to the Vatican City State, and the yield from movable and immovable property.
The "donations" chapter mainly includes, on the one hand, the contributions relating to canon 1271 of the Code of Canon Law, i.e. the rule according to which diocesan bishops throughout the world are obliged to send the Pope each year a sum of money in proportion to the availabilities of their dioceses; on the other hand, the Obolo di san Pietro (St. Peter's Offering), which gathers the offerings of the faithful, usually on June 29, addressed to all the activities of the Holy See.
The small Pil "Vatican" (PIB), on the other hand, is made up of the income from the Vatican Museums, the annona and stores (the internal supermarket), gas stations, pharmacy and post office, as well as the sale of products (eggs and milk above all) from the Pontifical Villas of Castel Gandolfo.
Finally, there are the revenues of the patrimony, formed over the centuries thanks to the legacies of the faithful. A patrimony that was almost annihilated at the time of the breakup of Porta Pia (1870) and that today is largely the result of the investments in the following decades of the sum paid by the Italian State when the Lateran Treaties were signed in 1929 (a total of one billion seven hundred and fifty million lire of the time, between cash and securities).
How is this revenue-generating activity currently carried out and which agencies are responsible for it?
- It focuses on three agencies (Apsa, Ior and the Dicastero de Propaganda Fide), although with different natures and purposes.
The real estate assets managed by Apsa consists of 2,400 apartments and 600 stores, while for that of Propaganda Fide there are only journalistic estimates ranging from a minimum of 3-4 billion to a maximum of 9-10 billion (but it is good to remember that the income from these properties is all earmarked for evangelization in mission lands, according to the declared intention of the benefactors who donated these assets).
While the balance of the IOR (which is not a bank, but a financial promoter) is already public and easily accessible on the web.
Budget 2022 in the "red" (33 million) due to Covid and a drop in donations and alms, but the accounts are improving due to expenditure control. How can this be interpreted?
-Among the items of expenditure, the largest is undoubtedly that for employees. The Holy See has 2,880, the Vatican City State 1,930. Then there are the expenses for ordinary and extraordinary maintenance of the buildings, the Imu, the energy bill and the expenses of the Vatican media. In recent years, these expenses have almost always exceeded income.
Guerrero (former Prefect of Economy) spoke of centralizing financial investments, improving personnel management and procurement, and announced a code for the latter that should produce savings.
Whatever measures are adopted, it is certain that Francis' will is to preserve the nearly 5,000 internal jobs. After all, as he himself wrote in Evangelii Gaudium, "money must serve and not rule".
