CSDC 351

The action of the State and of other public authorities must be consistent with the principle of subsidiarity and create situations favourable to the free exercise of economic activity. It must also be inspired by the principle of solidarity and establish limits for the autonomy of the parties in order to defend those who are weaker.⁷³³ Cf. John Paul II, Encyclical Letter Centesimus Annus, 15: AAS 83AAS — Acta Apostolicae Sedis (official gazette of the Holy See)Volume 83 (1991) at vatican.va — scanned PDF (1991), 811-813. Solidarity without subsidiarity, in fact, can easily degenerate into a “Welfare State”, while subsidiarity without solidarity runs the risk of encouraging forms of self-centred localism. In order to respect both of these fundamental principles, the State's intervention in the economic environment must be neither invasive nor absent, but commensurate with society's real needs. “The State has a duty to sustain business activities by creating conditions which will ensure job opportunities, by stimulating those activities where they are lacking or by supporting them in moments of crisis. The State has the further right to intervene when particular monopolies create delays or obstacles to development. In addition to the tasks of harmonizing and guiding development, in exceptional circumstances the State can also exercise a substitute function”.⁷³⁴ John Paul II, Encyclical Letter Centesimus Annus, 48: AAS 83AAS — Acta Apostolicae Sedis (official gazette of the Holy See)Volume 83 (1991) at vatican.va — scanned PDF (1991), 853; cf. Catechism of the Catholic Church, 2431.