Speculation on Cardinal Ratzinger, and his possible ascension to the Papal Throne, so far as I can tell, is farfetched. (Even though I think it is a good idea.) But the Pope seems to be looking elsewhere for a successor, and has in his interview with an Italian journalist pretty much said he is indifferent what the composition of the church is in 20 years.

He seems also to be taking a passive approach to the lack of priests, too. He's looking to the more vibrant parts of the world with growing populations, like in Africa and Asia, where the church is truly dynamic, and I see some wisdom in this approach. That said, Western Europe is Christianity's (in political terms) 'base' and as any good pol knows, you hold on to your base.

Do they have those kind of political street smarts at the Vatican? I don't think so. Nevertheless, all real reforms in the Church happen from the laity grassroots level, and there are people at the bottom, in spiritually hollowed—out places like Sweden and Netherlands, who are fighting back, going back to the monasteries, and reintroducing traditional expressions of belief. (Believe it or not.)

The fact is, the atheism trend in Europe is really a void, and if they dump Christianity, something else, not atheism, is going to replace it. They can think about Islam in their foreseeable future if they don't want to renew Christianity. Still, Europe has an amazing ability to renew itself every few hundred years, as Rocco Buttiglione noted in his fine Wall Street Journal essay, so I will not write the continent off.