Slowly but surely, the European Union is taking steps to reduce its current-account surplus and direct more of its substantial savings into domestic investment and growth. Unfortunately, at the G7 Summit in France this month, the United States will refuse to address global imbalances, including its own.
About the authors:
Laura Tyson, a former chair of the President’s Council of Economic Advisers during the Clinton administration, is a professor at the Haas School of Business at the University of California, Berkeley, and a member of the Board of Advisers at Angeleno Group.
George Papaconstantinou, a former finance minister of Greece who negotiated the country’s first bailout, is Professor of International Political Economy at the European University Institute and the co-author (with Jean Pisani-Ferry) of New World New Rules: Global Cooperation in a World of Geopolitical Rivalries (Columbia University Press, 2025).
BERKELEY—The 52nd G7 Summit will take place on June 15–17 in France, hosted by President Emmanuel Macron. Established during the 1970s global oil crisis, the G7 brings advanced industrialized economies together to foster cooperation on global economic and political challenges. Six of its seven members (excluding Japan) also belong to NATO, and despite US President Donald Trump’s many attacks on America’s closest allies, it looks as though the United States will participate in the meeting.