G7 finance ministers are meeting in Paris as global economic pressures deepen, with the Middle East conflict and rising trade tensions taking centre stage in discussions.
The two-day talks bring together finance chiefs from the Group of Seven advanced economies, with leaders trying to coordinate responses to a growing list of global risks from war-driven market shocks to fragile supply chains and rising inflation.
France, which currently holds the rotating G7 presidency, is leading efforts to keep consensus intact, even as divisions widen over how to handle trade disputes linked to Donald Trump’s tariff policies and escalating geopolitical rivalries.
French Finance Minister Roland Lescure said the global economic system is under strain, pointing to rising US debt, sluggish innovation in Europe, and China’s expanding industrial reach into global markets.
He warned that cooperation between major economies is becoming harder, especially as countries struggle to balance domestic pressures with international responsibilities.
Officials say the ongoing war in the Middle East has added a fresh layer of uncertainty, pushing up energy prices and threatening shipping routes through critical chokepoints like the Strait of Hormuz.
German Finance Minister Lars Klingbeil said the G7 remains the “right platform” to engage the United States on ending the Iran conflict, stressing that the war is already damaging global growth and trade stability.
Beyond security concerns, one of the key agenda items is reducing dependence on China for rare earth minerals materials that are essential for technology production, including artificial intelligence systems and advanced manufacturing.
European officials are also pushing the idea of a more coordinated “economic security” strategy, aimed at reducing vulnerabilities in global supply chains and ensuring access to critical resources like energy and minerals.
France has proposed a “common toolbox” that could include coordinated trade measures, strategic stockpiles, and joint investment projects to secure raw materials.
One example already underway is a French-Japanese rare earth processing facility designed to reduce reliance on external suppliers.
The talks are expected to continue into Tuesday, with a closing statement likely focusing more on shared concerns than firm policy commitments, reflecting the difficulty of reaching agreement in an increasingly fragmented global economy.
