US embassy cable - 04VATICAN2684

UNCLAS VATICAN 002684 
 
SIPDIS 
 
 
DEPT. FOR EUR/WE: LEVIN 
 
SENSITIVE 
 
E.O. 12958 N/A 
TAGS: PREL, ECON, EFIN, VT 
SUBJECT: VATICAN BOOKS STILL IN RED 
 
 
1.(U) The Holy See ended 2003 with a budget deficit for 
the third year in a row, this year showing a shortfall of 
nearly $12 million.  The budget covers all government 
departments and activities, as well as the Holy See's 
embassies and diplomatic offices around the world.  During 
2003, the Vatican took in just over $250 million, but spent 
more than $262 million.  The deficit was 30 percent less 
than the shortfall reported for 2002.  One of the biggest 
drains on the Holy See coffers is Vatican Radio, which does 
not accept advertising revenues and requires some $25 
million to run.  The Holy See has decided to continue 
investing heavily in Vatican Radio's worldwide broadcasts 
in any case, judging such outreach as particularly valuable 
in developing nations with limited communications networks. 
 
2.(U) Vatican City State has a separate budget within 
the Holy See's accounting system.  It lost some $11 million 
in 2003.  This budget includes the care and upkeep of 
Vatican buildings, as well as the Vatican's coin and stamp 
offices and the Vatican Museums.  The Vatican City State 
budget was negative in part due to new projects and 
reconstruction, but primarily because nearly $13 million 
was siphoned off earnings to cover half the deficit of 
Vatican Radio. 
 
3.(U) The good news for the Vatican in the budget 
statement was that during 2003 donations from Catholics 
around the world to Peter's Pence (a fund used by popes for 
charity, but also at times to offset the deficit) amounted 
to some $56 million.  This was an increase of 6 percent 
over 2002.  Speculation that the abuse crisis in the U.S. 
Church would result in decreased American financial support 
for the Holy See in the end proved to be groundless.  U.S. 
. 
Catholics continue to be the top donors worldwide. 
 
4.(SBU) Comment.  The 2003 budget figures help to dispel 
the myth that the Vatican possesses extraordinary financial 
wealth.  The Holy See views its priceless works of art and 
other treasures as part of humanity's patrimony; as 
guardian of these treasures, it would be loath to liquidate 
them to offset expenses.  End comment. 
MARTIN 
 
 
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 2004VATICA02684 - Classification: UNCLASSIFIED