The Vatican’s coffers may be burning brighter than the fireworks at Sagrada Família. As the Pope’s motorcade rolled into Barcelona, the city’s famed basilica was lit up like a speculative bubble, leaving at least one Vatican source ‘alarmed’. But what truly sets off alarm bells for this financial editor is not the pyrotechnics, but the opportunity cost.
The Pope’s visit, a logistical nightmare of security and ceremony, comes at a time when the Church’s balance sheet is under strain. Inflation in the Eurozone is eating into the value of Vatican assets, and gilt yields are offering paltry returns. Meanwhile, capital flight from traditional markets into ‘safe haven’ gold coins has accelerated.
The decision to stage a gaudy display of fireworks for a religious figurehead strikes me as a misallocation of resources. The Church should be trimming its expenses, not financing street parties. The alarmed Vatican source is right to be concerned.
Perhaps the Holy See needs a chief financial officer as much as a shepherd.
