Reforming the Vatican Curia

1. Reforming the Vatican
Curia
Joseph F X Zahra
November 2015

2. Three Parts
• Introduction to the Centesimus Annus Pro Pontifice Foundation
• Pope Francis and reform
• The reforms in the Vatican Curia

3. Introducing Centesimus Annus
Pro Pontifice Foundation

4. Centesimus Annus – Pro Pontifice Foundation
• Saint John Paul II encyclical “Centesimus Annus” on May 1st, 1991, the 100th anniversary of
Pope Leo XIII encyclical “Rerum Novarum”
• Foundation set up in June 13th 1993… “to help diffuse the basic principles of the social
doctrine of the Church … and look for new sources of funding for the activities of the
Holy See.”
• The Foundation is based at the Vatican.
• Today the Foundation has members from fifteen countries around the world including of course
the United States of America and Canada.
• The main event of the Foundation is the Annual Convention in the Vatican in May of each year.
Top speakers are invited to reflect and speak about the application of Catholic Social Teaching in
the social and economic context of today.

5. A Foundation that serves…
• This is a highly dynamic Foundation… transforming itself more as a think-
tank on Christian social teaching.
• The last major project that involved meetings in Rome, New York and
Dublin is the “CAPPF Statement of 2015” which took up the challenge of
proposing the way forward in reforms in the financial sector.

6. In brief, the Foundation…
… promotes informed knowledge of the social teachings of the Church and of the
activity of the Holy See among qualified and socially motivated business and
professional leaders
…promoted initiatives aimed at expanding the Church’s effective role in all sectors of
contemporary society
…promotes fund raising activities to help support the activity of the Holy See.
(www.CAPP-USA.org)

7. Pope Francis and
economic reform

8. Pope Francis and the economy
• The Catholic Church says that the “business economy has many positive
aspects – its basis in human freedom exercised in the economic field”
(Centesimus Annus,32)
• Free culture, free markets and free polities that create a free society.
Democracy and market economies go hand in hand … but they are also risky
and can be abused.

9. The “problem” is people and its culture not the
economic system
• The “pathologies” eating away at our society and our environment are the fault of
ethical and cultural systems, not economic ones.
• Pope Francis says… “this time of crisis…a human crisis: it is the human person that
is in crisis! Man himself is in danger of being destroyed!” (Address in St Peter’s
Square, 18 May 2013)
• Benedict XVI in Caritas in Veritate… the “conviction that the economy must be
autonomous that it must be shielded from “influences” of a moral character, has led
man to abuse the economic process in a thorough destructive way.”

10. The economy operated by persons is therefore
not autonomous
• The monstrosity of social decay, poverty, marginalisation is a result of human abuse
of the economy
• Pope Francis points at one specific way of doing the economy… “thou shalt not to
an economy of exclusion and inequality – such an economy kills.”
• Pope Francis: “the crisis will not be completely over until situations and living
conditions are examined in terms of the human person and human dignity…our
duty is to continue to insist…that the human person and human dignity are not
simply catchwords, but pillars for creating shared values and structures.” (address to
conference of FAO).

11. Pope Francis provokes us…
• Pope Francis is provoking us to re-think and reform the economic system in
a way that addresses the social problems created by its misuse and abuse…
• Poverty, marginalisation… resulting from greed and selfishness, dishonesty,
lack of transparency
• But this is done by means of SOLIDARITY… “which allows all people to
become artisans of their destiny” “Every person is called to self-fulfilment”
(Evangelii Gaudium, 190)

12. Pope Francis and the human person
The integrated human person as a…
Person of DIGNITY – from work, through family
Person as an INVENTOR – to improve the quality of life of every person without
distinction
The solution is through GIVING – GRATUITOUSNESS – THE GIFT OF
OURSELVES… for the COMMON GOOD

13. Pope Francis is a prophet
• Why does the economy need to be reformed? The context has changed…
globalisation, technology, nature of work
• Decision making by business and consumer – ethical decisions
• Long term investment – intergenerational
• Growth (quality of life), Profit (investment in R&D) – the purpose of business is
the common good – develop a culture of service to society
• We have a choice between what is right and what is wrong
• It is us who have to make that choice.

14. Reforms at the Vatican
Curia

15. Chirograph of July 18, 2013 by Pope Francis
• “The reflections of recent days…have led us to…proceed with the introduction of
reforms in the institutions of the Holy See with a view to simplifying and
rationalising the existing structures and programming more attentively the
economic activities of all Vatican administrative bodies…”

16. Establishing COSEA
• The Holy Father established COSEA, a Commission to investigate the
administrative and economic matters of the Holy See and the Vatican City
State, and offer technical recommendations:
• Avoid duplication of economic resources
• Favour transparency in the acquisition of goods and services
• Enhance the administration of patrimony
• Ensure the correct application of accounting principles

17. COSEA
The Commission was…
Composed by 7 lay experts and one clerical secretary
Supported by external consultants focused on specific projects
Meeting in plenary form on a monthly basis between August 2013 and May 2013

18. Recommendations on principles for reforms
• Establish the “four eyes principle” in the administration of economic
matters
• Separate and diffuse any concentration of power and authority that had
developed in the Vatican itself and in a number of dicastries
• Promote transparency and adopt international standards in accounting
and reporting and apply them to all entities and administrations

19. In simpler terms…
• Simplicity
• Rationalisation
• Elimination of waste
• Checks & Balances
• Integrity and honesty
• Challenge the “status quo”

20. The break-through: the Motu Proprio “Fidelis
Dispensator et Prudens”
• The Apostolic Letter “Fidelis Dispensator et Prudens” of the 24th February
2014 designed the new structures of the Vatican.
• Guided by two principles :
Universality
Technical expertise – lay experts contribution

21. Three New Structures
• The Council for the Economy
• The Secretariat for the Economy
• The Auditor General

22. Associated Institutions
• Governatorato
• IOR
• Vatican Media
• Hospitals

23. IOR reforms
• The Institute for Religious Works
• It is not a Bank nor a commercial financial services provider
• It provides a service and advice to Catholic institutions that serve the pastoral and
evangelical mission of the church globally
• It has now conducted a thorough review of its customers… closely supervised by
the Vatican regulator AIF (Autorita’ di Informazione Finanziaria).
• It publishes since 2 years ago its comprehensive Annual Report
• It guarantees full compliance to international regulatory standards and transparency

24. AIF – Autorita’ d’ Informazione Finanziaria
• The competent authority of the Holy See/Vatican City State to fight money
laundering and financing of terrorism.
• … financial intelligence unit, a supervisory unit …
• For both prudential purposes and the prevention and countering of money-
laundering and financing of terrorism

25. The New Structures

26. The Council for the Economy
• 15 members, 8 cardinals and bishops, 7 lay experts of various nationalities with
recognized professional financial competence
• Is chaired by a Cardinal Coordinator
• Has oversight for the administrative and financial structures and activities of the
dicastries of the Roman Curia, the institutions linked to the Holy See, and the
Vatican City State.
• Reports directly to the Holy Father
• Recommends consolidated annual budgets and financial statements for approval to
the Holy Father

27. The Secretariat for the Economy
• Responsible for administrative services as well as financial control and
vigilance over the dicastries of the Roman Curia.
• Implements policies and procedures related to administration, procurement
and human resources
• Acts as an executive arm to the Council for the Economy
• Is headed by the Prefect of the Secretariat

28. The Auditor General
• Independent and autonomous from all other structures
• Performs specific and regular audits over entities and administrations
• Receives and investigates on any reports upon request from the Council for
the Economy
• The Auditor General is a senior lay expert

29. Conclusion
• All three structures are operating effectively and efficiently
• Professionalism and transparency
• Universal standards of accounting
• Control mechanisms are in place
• Improvement of programmes and higher levels of efficiency to ensure better
support to the poor and the marginalised.