VATICAN CITY (Reuters)

Pope Leo XIV, the 267th leader of the global Catholic Church and the first U.S. pontiff, faces several significant challenges following his election on Thursday. Here’s a quick overview.

BUDGET WOES

Despite the late Pope Francis’ cost-cutting efforts and financial management reforms, the Vatican faces an 83-million-euro ($94.22 million) budget shortfall, along with a larger funding gap in its pension fund. The pension shortfall was estimated at about 631 million euros by the Vatican’s finance czar in 2022, with insiders indicating it has grown since then.

FAITH CRISIS IN EUROPE

Although the total number of Catholics continues to rise, surpassing 1.4 billion primarily due to growth in Africa, church attendance and priestly vocations are declining in Europe. In Germany, only 29 new priests were ordained in 2024, a historic low, and about 321,000 German Catholics left the Church that year, dropping the number under 20 million in a predominantly Catholic population of 83 million.

DIVORCEES, LGBT, WOMEN

Under Francis, tensions between traditionalists and modernists escalated regarding the Church’s stance on the LGBT community, divorcees, and the role of women in church affairs. While he did not formally change doctrine, he allowed for some leniency, such as communion for divorcees and blessings for same-sex couples. Future decisions regarding these reforms may require the new pope to balance opposing demands.

CHILD ABUSE

The new pope will need to address the ongoing issue of clerical sex abuse and its cover-up, which has plagued the Church for decades and damaged its reputation. Both Francis and his predecessor, Benedict XVI, advocated for a zero-tolerance policy, but results have been mixed globally.

DIPLOMACY

Pope Francis, the first pope from the Global South, was known for his bold stances in diplomacy, advocating for climate action and criticizing strict immigration policies. He engaged in complex relationships with countries including China and Israel, addressing controversial subjects like the war in Gaza and Ukraine’s defense against Russia. It remains uncertain if the new pope will maintain this approach.

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