Statement by CAFOD Director Christine Allen on Vatican-backed report calling for action on the debt crisis

CAFOD Director and CEO Christine Allen was present for the launch event in Rome of the Vatican-backed report on the debt crisis and said:

“We hear a lot about the economic circumstances and fiscal rules, but for most people what matters is how they feel: can they put food on the table, pay their bills, and so on.

"Behind the big macro-economic decisions, this is the reality for ordinary people. These questions are being faced by most of us, from Sunderland to Sudan - as our challenging economy plays out for everyone. For more than 3 billion people in our world their lives are even more precarious, as their governments find themselves forced to service debt payments in favour of spending on health, education and other essential services - let alone tackling climate change.

"Cancelling debt is a longstanding tradition in a Jubilee year as we are called to reset relationships - with one another, with God and with our earth. Pope Francis wanted to know more about the global debt issue, so he established a Commission of more than 30 high-level experts, led by the Nobel laureate economist, Joseph Stiglitz, and former Finance Minister for Argentina Martin Guzman, to look into it.

"Their report, presented at the Vatican today [Friday 20 June], tackles the immediate questions around debt levels and the unfair mechanisms that are being deployed, but also addresses the long-term issues, to ensure that we don't just go round in circles.

"In the aftermath of the Jubilee debt campaign at the turn of the 21st century, millions of dollars were released back into lower-income governments’ coffers, which meant millions of children could go to school and receive necessary healthcare, for instance. But it didn’t tackle the underlying structural issues.

"Today’s debt crisis is much more hidden. But it is no less destructive. Low-income governments may not be defaulting on their debts, but they are in practice defaulting on their development because of unrelenting repayment requirements.

The Jubilee report contains sound economic analysis, practical proposals and recommendations, but as a Commission reporting to the Pope it also reflects on the moral implications of the debt crisis.

"As others have noted, and Pope Francis declared, this isn't just a matter of economics, it's a matter of justice and fairness, when billions of people are condemned to struggle by a system that could easily be changed.

"That is the challenge facing us – to identify the changes and to bring about that change. Finance must be at the service of people, of human dignity, not vice versa. For too many the current unsustainable debt crisis casts a long shadow over their future. And indeed for all of us, as the money to tackle the climate crisis is falling short. The effects of too little action are also felt in the Global North.

"This room is full of world-leading economists who have real suggestions about ways to build a 'people-centred economy'. Pope Leo XIV sent a message to those gathered for the launch, thanking and encouraging the Commissioners for their work. He spoke of the need for a spirit of solidarity, to strengthen “the ties that bind creditors and debtors alike to a shared destiny” saying:

“I hope that the efforts of the commission of experts will contribute positively to the ongoing global discussions on debt relief and provide tangible and innovative options that offer mutual benefit, thus inviting a broader coalition of support from the international community.”

"It is vital that all of us play our part.

"The petition that CAFOD is running is part of a global Caritas campaign and there is growing momentum and desire to tackle this issue. Our economic context has changed so much over the last few years, but the political reality is also changing – and radically so in the last six months. The need for change is growing.

"This report will add rigour to our ongoing calls for a more just and sustainable economic model. We can never forget that as people of faith we are called to build the kingdom of God, where human dignity is respected and where we hear the cry of the earth and of the poor. Joseph Stiglitz reminded all of us here today that the ecological debt is what we owe to the planet and to future generations. We can cancel and deal with the financial debt, but climate change can’t be undone by the stroke of a pen.

"There is a clear sense here that there are solutions; that we can find ways to address the inequalities that are inherent in our current global economic system. The bigger challenge is the political will to make it happen, as such a change challenges vested interests that can be hard to let go.

"It will take courage, that’s true. But just as we have been brave in the past, it is time to be brave again.

"For the sake of the 3.3 billion people who currently live in debt distress, and are held back from development and opportunity, we must have courage for the future – and our shared destiny with them."