During a meeting on 3 June with participants of a sustainable finance conference, the Pope emphasised the need for Catholic social teaching to critique, comprehend and improve financial structures.

The Church's social teaching to serve as a "compass" in this area,

However, for the financial compass to work, it is "necessary not just to admonish but to understand the workings of finance, identify weaknesses and propose concrete corrective measures" the Pope stressed.

The Pope commended the conference's aim to blend efficiency and effectiveness with holistic sustainability, inclusivity and ethics in dialogue with finance leaders.

Decrease inequality

Drawing on historical examples, Francis referenced 16th-century Spanish theologians who criticised the wool trade for underpaying shepherds.

Francis said the Spanish theologians deep knowledge of the financial systems enabled them to advocate for fairer practices.

"The Spanish theologians were able to intervene" he said.

"Because they knew that process, and therefore they did not just say: "we must seek the common good"; they explained what was wrong and called for specific action.

"It is up to you to figure out how to make inequality decrease" Pope Francis urged the scholars.

"You understand financial processes and that is your great advantage, but also a significant responsibility" Pope Francis told his visitors.

He reiterated his 2013 message from "Evangelii Gaudium" saying "Money should serve, not rule".

The Pope concluded by urging financial experts to consider the impact of their reforms on the poorest.

He stressed that financial reform should aim to improve the lives of those struggling for a dignified existence.

Sources

National Catholic Reporter

Vatican News

Cardinal Pell gave a statement to The Tablet in the wake of the Holy See announcing that a full audit by PricewaterhouseCoopers would not take place.

Instead, PwC will assist an internal auditor-general with the work.

The cardinal is the prefect of the Vatican's Secretariat for the Economy.

He said the new arrangement "is not a rejection of financial reform".

Rather it is "a recognition that the many challenges in transitioning to full implementation must fit the context and a way forward is being found".

But Cardinal Pell said the financial reforms of the Holy See so far are "irreversible".

This has ensured there are no more "pools of darkness in the Vatican", he said.

Cardinal Pell stated: "The Vatican is committed to transparency, international cooperation and the use of contemporary international standards in financial reporting."

But he pointed out that the "full implementation of such changes will take time".

Cardinal Pell added that work needed to be done to bring expenditure under control.

He said that the Vatican now prepares one overarching budget, and it monitors expenditure, meaning that the Holy See knows where it stands financially.

He added that the work culture was changing with development programmes led by Georgetown University, in the United States.

"The vast majority of the financial staff appreciate the modernisation and are cooperating happily," he said in a statement.

But the cardinal said more needed to be done to streamline budgeting and expenditure as well as battling significant "cash deficits" over the last three years.

He added that hundreds of millions of euros were needed to fund a shortfall in the pension fund.

"The Vatican financial situation is not critical, but we face significant challenges, which can be met," Cardinal Pell explained.

Sources

• The Tablet
• Image: Catholic News Agency