The trade deficit with China, the wars in Ukraine and the Middle East: the EU reiterates its priorities at the G7 summit in Evian

Brussels – Economic imbalances, the trade deficit with China, the war in Ukraine and the Middle East. These are the European Union’s priorities reiterated by the President of the European Commission, Ursula von der Leyen, and the President of the European Council, António Costa, at the press conference opening the G7 summit today (15 June) in Evian, France. 

Having gathered “against a backdrop of geopolitical fragmentation, economic restructuring, and rapid technological change,” the leaders of France, Germany, the United Kingdom, Italy, the United States of America, Canada, Japan and the European Union will first and foremost have to address, according to the President, the issue of the “global economic imbalance.” For von der Leyen, the situation in which “some countries produce too much and do not consume enough, and vice versa,” creates “increasingly dangerous dynamics” that have led to “all Member States recording a trade deficit with China for the first time,” and not only. For von der Leyen, the solution is “very clear” and always the same: to reduce risk without “decoupling” entirely from Beijing. “To do this, we need to engage in dialogue with China, work on our internal potential within the EU and collaborate with trusted partners around the world,” she explained, noting that “through the Global Gateway, the EU works with countries that have natural resources” for precisely this reason. Following von der Leyen’s lead, President Costa has emphasised that it is necessary for the economies at the summit to “strengthen our investment capacity to be more competitive and more self-sufficient,” so it will be important to work “closely with our global partners.” 

Speaking in Evian, von der Leyen welcomed the agreement between Iran and the US, stating that a priority for the G7 will be its implementation and the restoration of freedom of navigation in the Strait of Hormuz. The President also emphasised that the agreement “should pave the way for broader talks and lead to the end of Iran’s nuclear and ballistic programmes,” but that “there can be no lasting peace while Lebanon remains in flames.” For this reason, the President called for “a genuine ceasefire and full respect for Lebanon’s sovereignty.” On this point, Costa also mentioned “the dramatic humanitarian situation in Gaza and the grave concern over the expansion of illegal settlements in the West Bank,” emphasising that “for a just and lasting peace in the region, we must proceed along the only viable path, namely the two-state solution.” 

On the subject of the war in Ukraine, von der Leyen referred to “the €90 billion loan package provided by the EU, which covers two-thirds of Ukraine’s financial needs” and, in announcing the first disbursement scheduled for the end of the month, the President called on “Ukraine’s other partners to step up.”