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".

He also condemns neo-paganism, moral relativism and the pursuit of financial goals without moral ends as contributing to a recession which hits the poorest the hardest. He describes this as the "scandal of glaring inequalities".

He writes: "It is true that growth has taken place, and it continues to be a positive factor that has lifted billions of people out of misery — recently it has given many countries the possibility of becoming effective players in international politics. Yet it must be acknowledged that this same economic growth has been and continues to be weighed down by malfunctions and dramatic problems, highlighted even further by the current crisis.

"This presents us with choices that cannot be postponed concerning nothing less than the destiny of man."