Pope Leo XIV Reverses Financial Reforms of Predecessor Francis

Pope Leo XIV has officially rolled back several financial reforms implemented by his predecessor, Pope Francis. In a significant decision, Leo has abrogated the 2022 law that concentrated financial authority within the Vatican Bank, known as the Institute of Religious Works (IOR). This reversal allows the Holy See to utilize non-Vatican banks if the Vatican’s investment committee finds it “more efficient or convenient” for managing its assets.

The new law marks a clear shift in the Vatican’s financial governance, suggesting a recalibration of power dynamics within the Holy See. It indicates that Leo is addressing concerns about some of Francis’s decisions, particularly those that centralized decision-making within the IOR. The 2022 law had drawn criticism for appearing to contradict the Holy See’s founding constitution, which designates the Administration of the Patrimony of the Apostolic See (APSA) as responsible for managing the Vatican’s financial and real estate holdings.

New Directions in Vatican Leadership

This latest action is not isolated. On September 27, 2023, just days before this financial decision, Pope Leo removed Monsignor Roberto Campisi, a senior administrator in the Secretariat of State, and appointed him as ambassador to UNESCO in Paris. Campisi had been closely aligned with Pope Francis, having been appointed to lead a new fundraising commission aimed at securing financial support for the cash-strapped Holy See.

Critics highlighted the commission’s lack of experienced fundraisers, particularly noting that it consisted primarily of Italians with no professional fundraising background. This issue was compounded by the absence of American members, who represent a significant donor base for the Vatican. Concerns about transparency and accountability in the commission’s operations further undermined its credibility.

In a meeting with the Knights of Columbus, an influential Catholic charitable organization based in the United States, Leo expressed gratitude for their ongoing support. The Knights are known for their significant contributions to the Holy See, including funding projects such as the restoration of Bernini’s baldacchino canopy over the altar of St. Peter’s Basilica.

Pope Leo’s recent actions indicate a decisive pivot in the Vatican’s governance, focusing on restoring a balance that aligns more closely with traditional structures. As these changes unfold, the implications for the Holy See’s financial management and international relations remain to be seen.