Vatican in crisis: Vatican in financial difficulties – Corona pandemic causes revenue to collapse | message
Vatican in need of money
The corona pandemic developed into a global economic crisis within a few months, hardly any state, hardly any industry is not affected by the consequences of the crisis.
The Vatican – as the smallest country in the world – is also in economic need. The pandemic lockdown in Italy and Europe has brought further difficulties to the already financially weak Papal States.
Even before the corona pandemic, the Vatican had to deal with abuse scandals and credibility, which meant that some money was lost. On top of that there are rising running costs, as well as crisis-making investments by the Vatican Bank.
Accordingly, the barrel was overrun by the Corona crisis.
Red numbers before the crisis
The Vatican museums sometimes served as one of the most lucrative sources of income, as they generate around 25 million euros annually after all deductions. Due to the weeks of closure, a large part is now no longer available.
The extent to which the Vatican will recover from this, and when, cannot be precisely determined at the present time. Before the crisis, the Vatican was already in the red in the amount of 60 to 70 million euros, the initial situation has worsened even further due to the crisis.
Juan Antonio Guerrero Alves, Minister of the Economy of the Papal State, said in an interview with Vatican News about the financial situation: “We have made some projections, some estimates. The most optimistic expect revenue to decline by around 25 percent. The most pessimistic is around 45 percent. ”
Savings plan from the Pope
Although the Vatican is not facing bankruptcy, as Alves explains, the coming years will be characterized by financial challenges. Accordingly, rumors are spreading that the Pope is already striving for a strict austerity plan, as reported by BILD.
For example, trade fairs should be canceled and exhibitions canceled, and office furniture and other inventory may not be bought for the time being. However, wages and social benefits for the needy are not affected by the austerity measures. “The Vatican is in no danger of becoming insolvent,” said the Minister of Economic Affairs.
Nevertheless, the Vatican is in the near future dependent on “extraordinary income”, which comes in the form of government aid packages or the like.
Henry Ely / editorship Forex-news.com.net
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