Following its new-found interest in sound economics, the Vatican’s newspaper, L’Osservatore Romano, has turned its attention to what now seems to be a global downturn.

The usual European trope is that the current troubles are the result of American overspending, overconsumption and unsustainable debt burdens, so it is very surprising to see a contrarian view in Sunday’s paper entitled “The Morality of the Recession.”

Italian banker Ettore Gotti Tedeschi evaluates the credit crunch affecting the U.S. economy and the Federal Reserve’s reaction to lower interest rates as problematic for the rest of the world, but he also sees an opportunity for renewal and reform.

The moral lesson for Europe? Take the chance to reduce wasteful public spending, lower taxes, increase productivity and attract foreign investment. Citing Pope John Paul II’s 1987 encyclical Sollicitudo rei socialis, Gotti Tedeschi draws the conclusion that now is the time for Italy to adopt more flexible economic mechanisms and rid itself of its welfare-state mentality.

Italian elections are just a month away, so it is extremely unlikely any politician would advocate such a bold program; it is, however, exactly what Italy needs. Let’s hope that Vatican officials, at least, are paying attention. Kudos to L’Osservatore Romano and Gotti Tedeschi for taking another courageous stand.