Dear brothers!

The Pope has called for the world economy to be restructured in line with the principles of "love, truth and charity" in a new encyclical issued today.

He urges the reformation of the United Nations and economic institutions to address the global economic crisis, which he links to relativism, globalisation and the abuse of modern technologies.

The encyclical, Caritas in Veritate, interpreted variously throughout the document as charity or love in truth, is Pope Benedict XVI's third but his first on social issues. It is timed to coincide with the G8 in Italy and is intended to bring objective moral truths to the table of economic debate.

Central to his recommendations is reform of the United Nations, but he also warns against a "cultural levelling" and "cultural eclecticism" where no distinction is made between different lifestyles, leading to "enslavement and manipulation".

He recommends a more incisive role for consumers and calls for a new authority to supplant the UN, "to arrive at a political, juridical and economic order which can increase and give direction to international co-operation for the development of all peoples in solidarity".

He adds: "To manage the global economy; to revive economies hit by the crisis; to avoid any deterioration of the present crisis and the greater imbalances that would result; to bring about integral and timely disarmament, food security and peace; to guarantee the protection of the environment and to regulate migration: for all this, there is urgent need of a true world political authority.

"Such an authority would need to be regulated by law, to observe consistently the principles of subsidiarity and solidarity, to seek to establish the common good, and to make a commitment to securing authentic integral human development inspired by the values of charity in truth.

"Obviously it would have to have the authority to ensure compliance with its decisions from all parties, and also with the co-ordinated measures adopted in various international forums. Without this, despite the great progress accomplished in various sectors, international law would risk being conditioned by the balance of power among the strongest nations."

He urges the construction of a social order that conforms to the moral order, "to the interconnection between moral and social spheres, and to the link between politics and the economic and civil spheres, as envisaged by the Charter of the United Nations".

On how to resurrect the world's financial systems, he writes: "Above all, the intention to do good must not be considered incompatible with the effective capacity to produce goods. Financiers must rediscover the genuinely ethical foundation of their activity, so as not to abuse the sophisticated instruments which can serve to betray the interests of savers. Right intention, transparency, and the search for positive results are mutually compatible and must never be detached from one another. If love is wise, it can find ways of working in accordance with provident and just expediency, as is illustrated in a significant way by much of the experience of credit unions."