Finance ministers and central bank chiefs from the G7 nations have commenced deliberations on the economic ramifications of the war in the Gulf region and ongoing global trade conflicts. Prior to the meeting, German Finance Minister Lars Klingbeil (SPD) urged a swift resolution to the Iran conflict.
"The Iran war and the blockade of the Strait of Hormuz pose a serious threat to the global economy," Klingbeil stated before his departure to Paris. He emphasized that the G7 provides "the right framework to discuss these pressing issues with the United States and the other G7 nations."
The European approach is clear, Klingbeil said: "We are committed to cooperation rather than confrontation." The priority now is "to stabilize the region again and ensure free maritime routes through the Strait of Hormuz."
"We want to demonstrate that multilateralism is useful and functions effectively," said French Minister of Economy and Finance Roland Lescure at the opening of the meeting.
With regard to China's position, Lescure announced consultations on how to address rare earth elements. "Rare earths are an important link in the chain of electrification," Lescure emphasized. "If we do not have independent access to rare earths, we will lack this critical component," he warned. "We must do with critical raw materials what we did in the energy sector in the 1970s, namely declare it a common good," Lescure recently stressed.
Another topic on the G7 agenda will be the situation in Ukraine. "We are not losing sight of Russia's brutal war of aggression just because the world is focused on the Middle East," Klingbeil declared. "The people of Ukraine can count on our support." The German Finance Minister plans to sign a double taxation agreement between Germany and Ukraine with his Ukrainian counterpart Serhiy Marchenko in Paris.
In addition to G7 representatives, finance ministers from Brazil, India, South Korea, and Kenya are also attending the Paris meeting. Discussions with these nations will focus on strengthening economic cooperation. Given the current crises, it is "economically and politically crucial that Germany and Europe become more independent and more crisis-resistant," Klingbeil stated. "This applies, for example, to raw materials, energy, and supply chains."
France assumed the rotating presidency of the Group of Seven major industrialized nations in January. A summit of G7 heads of state and government is scheduled for June in Evian, eastern France.
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