The EU in the G-Groups (G7/G20) - Alpeuregio Summer School Mirco TOMASI SG/H.1 Strategic External Policy Issues

The EU in the G-Groups (G7/G20)
               Mirco TOMASI
   SG/H.1 Strategic External Policy Issues

      Alpeuregio Summer School
                 2 July 2019

Contents

➢A bit of history

➢The G7

➢The G20

➢Challenges for the future

Delegates Mikhail Stepanovich Stepanov (USSR), John Maynard
Keynes (United Kingdom) and Vladimir Rybar (Yugoslavia) at the
Bretton Woods conference in 1944

Post-World War II order:

  ➢ International diplomacy centred around
    the United Nations – 1945

  ➢ Global economic governance structured
    around the Bretton Woods system (IMF,
    World Bank) – 1945

  ➢ International trading system based on
    General Agreement on Tariffs and Trade
    (GATT and later WTO) - 1947
                                             4

Impact of the financial crisis on global
governance:

● The financial crisis demonstrated global
  interdependence and importance of effective global
  governance

● Spill-overs via financial markets can have dramatic
  consequences

● In a post-crisis world, close cooperation between policy
  makers is essential to avoid protectionist policies

                                                        5

• Promote multilateral solutions to global
  challenges
• Strengthen the rules-based international
  order
• Promote EU initiatives on a global stage
• Facilitate and implement G7/G20
  commitments at EU level
     e.g. on investment, international tax transparency, financial
     regulation, trade

Origins of the G7

•   Starts as G6 in 1975: FR, DE, IT, JP, UK and US.
•   Context: onset of the worldwide economic recession and oil crisis.
•   Canada joins in 1976
•   Russia joins in 1997
•   Following Russia/Ukraine crisis in 2014, return to G7 format.

•   EEC-EC-EU leaders participate since 1977
    (COM and Council Presidents until 2009; COM and European Council
    Presidents since Lisbon Treaty (2010))
•   EU Commissioners attend ministerial meetings
•   No permanent secretariat
•   Rotating Presidency: 2019: France – 2020: United States – 2021: UK

The G7 Process
                                         Summit of Heads of State/Government

                                                                                                        Following G7 PRESIDENCY
Previous G7 PRESIDENCY

                                                                                          G7
                                       Sherpas (and Yaks)                          Foreign Ministers’
                               Piotr Serafin - Head of Cabinet of President Tusk
                                                                                        meeting

                           Finance                     Foreign Affairs             Political
                         Sous-Sherpa                    Sous-Sherpa                Directors
                                                     Ilze Juhansone – DSG

                                                          Expert groups

G7: key challenges

 ➢ G7 as internal caucus on key G20 matters:
   trade, financial regulation, climate change
 ➢ G7 as forum as like-minded countries

 But consensus has broken down:
   -   Bilateralism threatens multilateral, rules-based system
   -   Traditional assumptions are questioned
   -   Mistrust is setting in

                                                                 14

G7 Losing relevance

Emerging economies

       G7 Countries

                                       15

• Launched in 1999 (after the Asian economic crisis) at the level of
  Finance Ministers and Central Bank Governors
• Upgraded to Leaders level since 2008 (as a response to the
  global financial and economic crisis) with initially 2 Summits per
  year until 2011, thereafter just one Summit a year)
• Started with international economic cooperation, but now has
  a continuously expanding agenda;

•  COM and European Council Presidents attend
   G20 summits
• EU Commissioners attend
ministerial meetings
• Rotating Presidency:
    •   2019: Japan
    •   2020: Saudi Arabia
    •   2021: Italy

G20 Membership

                 The Japanese Presidency has extended invitations to
                 the Netherlands, Singapore, Vietnam, Thailand
                 (ASEAN Presidency), Egypt (African Union
                 Presidency), Chile (APEC Presidency), Senegal
                 (NEPAD Presidency).

Priorities:
      1) WTO reform
      2) Digitalisation
     3) Ageing Society
 4) Quality Infrastructures
5) Oceans and Marine Litter

The G20 Process
                                    Summit of Heads of State/Government

                                                                                           G20 OUTREACH (B20,L20, C20, T20, Y20)
                                                        Sherpas (and Yaks)
                                                  Antoine Kasel, President CAB Member
G20 PRESIDENCY

                  Finance Ministers and
                 Central Bank Governors
                                                                            Non-finance
                                                                            Ministerials
                                                                          eg Employment,
                      Finance Deputies                                        Trade etc
                       Director-General ECFIN

                                      Working Groups and Task Forces

G20: key challenges

● Keeping the global economy open
● Ensuring level-playing field
● Delivering on implementation of existing
  commitments (e.g. on tax transparency, financial
  regulation)
● Finding points of common interest among diverse
  membership to drive cooperation on new topics
  (e.g. on anti-terrorism financing, digitalisation,
  cyber-crime)
● Risk of renewed global imbalances
● Increased focus on inclusiveness                   22

Global Inequalities

                  23

G20 Osaka Summit 28-29 June:

● Good outcome on Climate Change
● Good outcome on the taxation of the digital
  economy
● Some positive steps on Trade and Data Flows
● Weak outcome on Migration and Refugees
● Strong statement against terrorist content online

 In just 6 months of                      According to the
 Japanese G20                             University of Toronto,
 Presidency, the EU has                   since the G20 Summit
 participated in more                     in Buenos Aires the EU
 than 40 meetings at                      compliance rate with
 Sherpa, Ministerial,                     G20 commitments has
 and experts level                        reached 100%
                                                             24

Further readings:

     https://www.g20.org/en/

    http://www.g20.utoronto.ca/

https://www.elysee.fr/en/g7#sommet