As the newly elected Pope, Leo XIV, steps into his role as spiritual leader for 1.4 billion Catholics worldwide, he also assumes responsibility for addressing the Vatican's financial difficulties. The cardinals who selected him recognized the urgent need to continue reform efforts initiated by his predecessor, Pope Francis. According to Jean-Baptiste de Franssu, chairman of the Vatican Bank, Leo is expected to build on Francis’s groundwork towards greater financial transparency and accountability. De Franssu emphasized that while progress has been made, much work remains to be done in restructuring the Vatican's economic framework.

The Vatican’s financial situation has historically been fraught with challenges. Despite generating revenue through hospitals, museums, real estate holdings, and contributions from believers, it frequently operates at a deficit. In 2023 alone, the organization reported a consolidated loss exceeding $79 million against revenues of approximately $1.2 billion. Historical scandals have further tarnished its reputation, such as the collapse of Banco Ambrosiano in 1982 amidst allegations of mafia money laundering. These incidents highlighted systemic issues requiring comprehensive reform. Under Pope Francis, significant strides were made, including closing thousands of questionable bank accounts and improving compliance with international anti-money laundering standards. However, recent legal proceedings revealed ongoing corruption, exemplified by the conviction of Cardinal Angelo Becciu for embezzlement linked to a failed London property investment.

With the election of Pope Leo XIV comes an opportunity to reinforce ethical principles within the Catholic Church. By continuing reforms aimed at enhancing fiscal responsibility, the Vatican can restore public trust and ensure sustainable funding for its charitable missions. Addressing declining donations, managing operational expenses, and securing future pensions are critical priorities moving forward. Through dedication to transparency and integrity, Leo XIV can inspire confidence not only among the faithful but also globally, demonstrating how institutions can evolve positively even when confronted by longstanding challenges.