The Heads of State and Government of the G7, which brings together the seven most advanced economies on the planet, have called for the earliest possible restoration of traffic through the Strait of Hormuz, free of additional charges and under safe conditions. At the same time, they have defended the role of multilateralism and called for avoiding new measures that limit international trade.
In their joint declaration, they emphasized that a "lasting" solution to the conflict in the Middle East and the reopening of Hormuz are "imperatives" to curb the negative impact that more than three months of war have had on the global economy and to foster "balanced, lasting, and resilient" growth. The text was released at the end of the summit held in the French town of Évian-les-Bains.
The representatives of the main powers have admitted, however, that the current geopolitical context has increased risks to economic activity and that the world economy "already faces the persistent effects of pre-existing disruptions and structural changes affecting global trade and investment."
According to the statement, the recent 'shock' has hit energy, agricultural products, and fertilizer markets with particular intensity, with direct consequences for industry, agriculture, and households, especially in the most vulnerable countries.
"We underscore the importance of affordable access to energy and reaffirm our commitment to well-functioning, stable, and transparent energy and other raw material markets," states the note released by the G7.
In this context, the leaders have reiterated their commitment to multilateral cooperation and urged to avoid "arbitrary export restrictions," advocating for the creation of "secure trade flows." "In particular, we underscore the importance of energy trade in the current situation," they added.
Consistent with this approach, they have stressed the need to strengthen and diversify energy supply chains to preserve the resilience of national economies, in a scenario marked by tensions in energy markets after the outbreak of the war in Iran, which has caused strong price fluctuations and supply difficulties.
Coordination with international organizations such as the International Energy Agency (IEA), which facilitates dialogue between producing and consuming countries, is considered key to sustaining economic and price stability. In this regard, the G7 has encouraged crude oil producers to maintain "sufficient and effective" reserves, in line with the IEA's requirement to have 90 days' worth of stocks.
This multilateral vision also extends to international financial institutions, including the International Monetary Fund (IMF) and central banks, which are asked to strengthen their role in protecting economic stability and managing future crises.
FISCAL BALANCE
The G7 leaders have warned that global imbalances can jeopardize the shared goal of achieving "sustainable and balanced" growth, and have therefore insisted on the need to implement coordinated and consolidation-oriented fiscal policies.
"Countries with large and persistent external deficits should adopt policies that include promoting domestic savings and fiscal consolidation. These measures would contribute to achieving balanced and sustainable global growth," they stated.
Likewise, they have called for abandoning strategies focused exclusively on domestic growth based on non-market policies, and have advocated for removing barriers to private demand, avoiding measures that distort competition, and eliminating obstacles to productivity, while promoting investment.
"We reaffirm our common interest in converging with other major economies on the causes of large and persistent global imbalances and on the need to address them," the group's leaders concluded.