The president of the Administration of the Patrimony of the Apostolic See or APSA, Nunzio Galantino, hopes that little by little the crisis of the London real estate operation will gradually pass.
The Vatican lost millions of dollars on the sale and purchase of the property and in payments to intermediaries. For more than two years, a judge has been investigating whether brokers defrauded the Vatican and if the employees of the Secretariat of State allegedly involved in the operation allowed themselves to be bribed or were imprudent.
BP. NUNZIO GALANTINO President of APSA I don't know how it will turn out nor do I want to go into details. But certainly that event did not do the Church any good. It caused the Church to lose its reputation and when one loses its reputation speaks, even if he speaks about the Gospel, values or evangelization, unfortunately his word is less credible.
Now management of the funds of the Vatican Secretariat of State depend on the body headed by Bishop Galantino. This organization is essential for future Vatican operations.
In 2022, 34 million dollars were taken out of APSA, alleviating the financial accounts of the Roman Curia and the Holy See. The Vatican has created a new policy to try to avoid situations like the one in London. Investments must not go against the social doctrine of the Church or into high-risk funds.
BP. NUNZIO GALANTINO President of APSA As the Pope once said coming back from his trip to Japan, the money you have is not meant to be stored in a drawer. The good family man does not keep it in the drawer. He invests it. Obviously, we cannot afford to make high-yield, high-risk investments because the money the Church has is for her mission.
And to carry out its mission does not simply mean to make a profit but to help meet Vatican expenses. For example, the need to maintain more than 100 nunciatures and pay the nearly 5,000 employees who work within the Vatican walls.
The other area where APSA generates income is through real estate. In Italy, this organization manages over 4,000 properties and 1,200 around the world.
This patrimony has historical origins. It has ties to Italy, the country that led to the fall of the Papal States at the end of the 19th century.
The Vatican saw its territory greatly reduced. After lengthy negotiations, in 1929, the Italian State agreed to compensate the Holy See. From this, the Italian real estate market became a key way to generate income and survive for the Vatican.
However, the pope at the time, Pius XI, elected to buy real estate abroad in the event that the relationship between Italy and the Vatican became complicated in the future and the pope and curia were forced to relocate to another country.
BP. NUNZIO GALANTINO President of APSA Why did Pius XI invest abroad? It was not because he thought, 'I don't have enough palaces in Rome. I'd like to also have some in London, Paris or in Switzerland.' No. There was another reason. Previously, the Italian government had expropriated all Church property and made them public places, residences, the presidential palace in Rome actually used to belong to the Holy See. Many prisons were once convents.
But owning property outside Vatican territory is not free for APSA. In 2022, they paid almost 10 million dollars in taxes to the Italian government.
Vatican finances are undergoing a period of change with a strengthening of its control systems. APSA is the heart of the Holy See's economy, but it is not independent. Pope Francis' reform submits it to at least three different types of supervision. Bishop Galantino points out that the credibility of the Vatican depends heavily on how it manages its assets. Moreover, he says that evangelization also depends on how the Holy See manages its money.
BP. NUNZIO GALANTINO President of APSA It may seem strange. What does stewardship have to do with evangelization? I used to say that being a good steward is a precondition for evangelization. What do I mean? I mean, if I don't properly administer the assets I have, I basically become uncredible and I lose reputation.
At the 2013 conclave, the cardinals called for an end to financial scandals in the Vatican. This goal had already begun under Pope Benedict XVI with the Vatican's admission into the financial control system of the Council of Europe. Over the last years, Pope Francis has tried to take more steps in this direction.
JRB
TR: KG
