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G7 is an acronym for the Group of Seven, an organization that includes leaders from some of the world’s largest economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
Russia was suspended indefinitely from the group – then known as the Group of Eight – in 2014 after a majority of member states rallied against its annexation of Crimea. This was the first violation of a European country’s borders since World War II.
What is the Group of Seven doing?
The G7 members meet each year at a summit to discuss pressing issues on the world stage and coordinate policies.
International security and the global economy are often topics of discussion, although recovery from the Covid-19 pandemic is expected to dominate this year’s meeting.
In a statement ahead of the summit, British Prime Minister Boris Johnson said he would urge fellow G7 leaders at the summit to make concrete commitments to vaccinate the world, as well as provide support for “global pandemic radar” – a new global surveillance system aimed at protecting immunization programmes.
What power does the G7 have?
The G7 is essentially a place for coordination, and the group has made decisions with global consequences.
Ahead of this year’s summit, for example, G7 finance ministers agreed to support a minimum global tax of at least 15% on multinational corporations. The G7 also agreed that the largest companies should pay taxes where they generate sales, not just where they have a physical presence.
US Treasury Secretary Janet Yellen said Saturday that the agreement was an “important and unprecedented commitment” by the world’s richest economies aimed at preventing companies from avoiding taxes by shifting profits abroad.
What is the history of the Group of Seven?
The meetings began as the “Library Group” founded in the 1970s by then US Treasury Secretary George Shultz.
The finance ministers of the United States, France, Germany and the United Kingdom met for “informal talks” to try to stabilize the currency turmoil.
Japan joined soon after, and in 1975—two of the original participants became president of France and president of Germany—the meetings turned into gatherings of heads of state and government.
Canada and Italy soon joined and became known as the Group of Seven.
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