Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

What's the G-7?

What's the G-7?

Together, these seven wealthy nations form the foundation of the modern global economy and the cooperative rules-based system on which it is built.

British Prime Minister Boris Johnson, right, greets French President Emmanuel Macron during arrivals for the G7 meeting at the Carbis Bay Hotel in Carbis Bay, St. Ives, Cornwall, England, Friday, June 11, 2021. Leaders of the G7 begin their first of three days of meetings on Friday, in which they will discuss COVID-19, climate, foreign policy and the economy.

The Group of 7 is an informal group of seven powerful democracies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The presidents of the European Commission and European Council also attend G-7 meetings because several of Europe’s largest countries are also members.

Membership, which is decided internally, hasn’t changed much since the group’s founding in 1975. At the time, it included only six countries, all of which still belong. Canada joined a year later. Russia joined as an eighth member in 1998, temporarily changing the group’s moniker to the G-8, but Russia was ousted after it annexed Crimea in 2014.

Together, these seven wealthy nations form the foundation of the modern global economy and the cooperative rules-based system on which it is built.

Leaders of the G7 pose for a group photo on overlooking the beach at the Carbis Bay Hotel in Carbis Bay, St. Ives, Cornwall, England, Friday, June 11, 2021. Leaders from left, Canadian Prime Minister Justin Trudeau, European Council President Charles Michel, U.S. President Joe Biden, Japan's Prime Minister Yoshihide Suga, British Prime Minister Boris Johnson, Italy's Prime Minister Mario Draghi, French President Emmanuel Macron, European Commission President Ursula von der Leyen and German Chancellor Angela Merkel.


Why the G-7 matters
The G-7 countries make up about 40% of the world economy, down from nearly 70% a few decades ago.


Despite the decline, the economic might of G-7 nations remains undeniable, not least due to their collective position as countries at the forefront of technological innovation and industrial know-how. Moreover, G-7 economies are inextricably interwoven with global supply chains, which means that a policy change or economic shock in one G-7 country will, for better or worse, have ripple effects across the globe.

Ultimately, the G-7 may be the best hope for quick, decisive and meaningful policy action on pressing global problems.

While the G-7 doesn’t have the institutional clout of the United Nations, the World Trade Organization or NATO, it also doesn’t have their institutional red tape or bureaucracy.

And although the G-7 is a subset of the ascendant G20 – which also includes rising economic powerhouses China, India and Brazil – the G-7 has another advantage: it’s much easier to achieve consensus in an intimate group of similar nations than it is to find common ground among diverse nations with very different economic and political priorities.

In this Nov. 17, 1975 file photo the six heads of state and government attending Economic and Monetary summit meeting at the Chateau de Rambouillet, West of Paris, pose for a group portrait before the final session. From left: Premier Aldo Moro of Italy, Premier Harold Wilson of the Great Britain, President Gerald Ford of the United States, President Valery Giscard d'Estaing of France, Chacellor Helmut Schmidt of West Germany and Premier Takeo Miki of Japan. The G7 was originally a response by leaders of Western democracies to the economic shocks and recession of the mid-1970s.


What the G-7 does


The world is facing profound challenges, from the devastation of the COVID-19 pandemic and climate change to authoritarianism and attacks on democracy.

None of these issues colors neatly within the lines of national borders. Countries need to cooperate to find solutions that do not simply kick the can to their neighbors.

An example of meaningful action by the G-7 is its June 5, 2021, announcement of an agreement on global minimum corporate tax rates, which marked a watershed moment in international taxation. If successful, the agreement could mean the end of tax havens and a dramatic shift in how companies record their profits around the world.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×