NEWS – Italy Hosts G7 Summit

HIGHLIGHTS

Origins of the G7

• Formation: The G7 originated from a 1973 meeting in Paris, France, of finance ministers and central bank governors.
• Purpose: Created in response to economic challenges like the oil crisis, rising inflation, and the collapse of the Bretton Woods system.
• Initial Members: France, Germany, the United Kingdom, the United States, Italy, and Japan.
• Expansion: Canada joined in 1976, and the European Economic Community (now the European Union) has participated since 1977. Russia was included in 1998, forming the G8, but was suspended in 2014.

Evolution of the G7

• Economic to Global Forum: Initially an economic forum, the G7 has expanded to address a wide range of global issues.
• Annual Presidency: The presidency rotates annually, serving as a temporary secretariat.
• Influence: The G7 summit concludes with a communiqué that outlines political commitments and influences global governance.

Relevance and Criticisms

• Declining Share in Global GDP: The G7’s share of global GDP has decreased from 50% in the 1970s to around 30% in recent years.
• Rise of the G20: The G20, established in response to the 2008 financial crisis, is seen as a more inclusive and representative forum.
• Proposed Reconfiguration: Suggestions for a G7+ include a common euro-zone representative and inclusion of China, India, and Brazil to reflect current global economic dynamics.
• Internal Cooperation Challenges: Achieving consensus within the G7 has been difficult at times, notably with former US President Donald Trump’s disagreements with other leaders.

Achievements

• Economic Coordination: The G7 has played a crucial role in coordinating economic policies and promoting free trade practices.
• Global Governance: It has been instrumental in shaping international policies on various issues, including security cooperation and development assistance.

2024 G7 Summit Agenda

• Economic Policies: Aims to stabilize the global economy amidst inflation and trade tensions.
• Climate Change: Focuses on reducing carbon emissions and promoting sustainable energy sources.
• Global Health Initiatives: Prioritizes pandemic preparedness and vaccine distribution.
• Geopolitical Tensions: Addresses relations with China and Russia, and conflicts with global implications.
• Attendees: Leaders from Italy, Canada, France, Germany, Japan, the United Kingdom, the United States, and the European Union, with Prime Minister Narendra Modi of India attending as an Outreach Country guest.