Developments, comments and assessments of the summit of the group of seven leading economies and democracies (G7) from June 26th to 28th at Schloss Elmau:
BDI demands a signal from the G7 for open markets
The German economy has demanded a clear commitment to free trade from the G7 countries. The President of the Federation of German Industries (BDI), Siegfried Russwurm, demanded in the Handelsblatt that the G7 summit must “send a strong signal for international trade and for open markets”. The importance of cooperation between the G7 countries in Europe, North America and Asia, which share important values, is “greater than ever,” Russwurm said. At the same time, the G7 would have to “counteract the formation of blocs and the disintegration of the global economy that are emerging.” The G7 must therefore agree to reduce dependencies in order to increase the resilience of value chains.
Johnson praises Scholz for taking action against Russia in the Ukraine war
British Prime Minister Boris Johnson has praised Chancellor Olaf Scholz’s (SPD) actions against Russia in the Ukraine war. “I would never have believed in my life that a German chancellor would get involved in this way,” said Johnson before the start of the G7 summit at Schloss Elmau in Bavaria. Scholz sent weapons to the Ukrainians and took a hard line with Moscow despite Germany’s heavy reliance on Russian gas. Germany is now under “real pressure” and needs to get its gas from other sources, Johnson said. “But they do it. They try. They make the sacrifice (…) because they realize that the price of freedom is worth paying.”
Steel companies for climate club and effective carbon leakage protection
The Steel Industry Association supports the climate policy initiative of the G7 to form an international climate club and calls for effective carbon leakage protection. “We need these international efforts to defuse potential trade conflicts, agree on standards and establish green markets,” said Hans Jürgen Kerkhoff, President of the Steel Industry Association. “Nevertheless, the initiative must not hide the fact that the levels of climate policy ambition will continue to differ massively between the potential club members for a very long time to come.” It is not to be expected that a climate club will be able to create internationally comparable competitive conditions in the future. Therefore, effective carbon leakage protection remains indispensable for comparable conditions. “The federal government in Brussels must campaign for this, especially now that CO2 border adjustment and emissions trading are being negotiated,” says Kerkhoff.
Great Britain, USA, Japan, Canada ban gold import from Russia
Before the start of the G7 summit, Great Britain, the USA, Japan and Canada announced an increase in sanctions against Russia over the Ukraine war. The four G7 countries would “soon” implement a ban on imports of Russian gold, the British government said on Sunday. Prime Minister Boris Johnson wants to urge the other states to take the step at the meeting of the major industrial powers at Schloss Elmau in Bavaria. The move will “hit the Russian oligarchs directly” and “the heart of the war machine” by President Wladimir Putin attack, Johnson said, according to the British government. “We have to turn off the money tap for the Putin regime. There are also talks in the EU about sanctions against Russia in the gold trade. So far, however, there have been no decisions on this. The EU countries among the G7 states are Germany, France and Italy Gold is Russia’s top non-energy export, the British government said.
Ischinger sees West on the defensive before the G7 summit
The longstanding chairman of the Munich Security Conference, Wolfgang Ischinger, sees the West on the defensive ahead of the G7 summit in Elmau. “I see the real purpose of this summit in the reaffirmation of Western determination to defend a rules-based international order against massive violations of international law like that of Putin,” the former top diplomat told the Berlin-based Tagesspiegel (Sunday edition): “It’s a defensive meeting for defense our values and rules.” The Iraq war and the Afghanistan war had shaken the West’s credibility, said the current head of the Foundation Council of the Security Conference. “That’s why the West doesn’t have a particularly good hand in the struggle with Russia and China,” he said. “We’re in a very unfavorable starting position there.” Ischinger defended the cost of 170 million euros for the meeting. “Given the apparent disintegration of a rules-based international order, any attempt to keep multilateral politics alive and strengthened makes sense,” he explains. “This money is well spent.”
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(END) Dow Jones Newswires
June 26, 2022 06:48 ET (10:48 GMT)