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G7 meeting: Ukraine and Meloni take center stage
Leaders from the G7 countries met Thursday in Italy’s Puglia region, where the future of Ukraine aid was high on the agenda
Who’s there? The meetings are hosted by Italian Prime Minister Giorgia Meloni, who is at the height of her political power after European Parliamentary elections last weekend. She stands in contrast to other G7 leaders from Canada, the US, the UK, Japan, and Germany, all of whom are on shakier ground domestically.
Meloni also invited an A-list of non-Western leaders like President Volodymyr Zelensky, Prime Minister Narendra Modi, and Brazil’s President Luiz Inácio Lula da Silva.
The highlights: Biden and Zelensky affirmed their partnership at a bilateral press conference. The group agreed to loan Ukraine $50 billion to rebuild its devastated infrastructure with the understanding it would be paid back by interest earned on the frozen Russian assets. They also passed a new round of sanctions aimed at countering China’s effort to remake Russia’s defense industrial base.
Looming over the group’s progress on Ukraine was the possibility that Donald Trump, who has spoken openly of pulling out of NATO and against further Ukraine aid, could be back in power by the time the group next meets in 2025. Several present — including Prime Minister Rishi Sunak and President Emmanuel Macron — are facing elections that could redefine Europe.
G7 alignment & US political challenges
Ian Bremmer's Quick Take: Hi everybody. Ian Bremmer here and a happy Monday. Quick take to start off your week as President Biden is back in the United States after the G7 Summit in Hiroshima.
What do we think? How did it go? Well, I mean a couple of very different takes. First of all, the G7 is enormously aligned, most particularly on Russia. I have never seen this level of outpouring of support. Every individual member of the G7 engaged personally with Ukrainian President Zelensky, the level of international aid coordination, diplomatic engagement, military support across the board continues to be at exceptionally high levels, not what Putin would've expected, not what the G7 would've expected before the Russian invasion, and that certainly helps to put Zelensky in a stronger position to negotiate with the Russians after a counter offensive over the coming months.
Furthermore, on China, more coordination from the G7, the term of art is de-risking, and everyone is increasingly using that term concerns about Chinese economic coercion. Not that the Chinese are the only country in the world that engages in economic coercion. People have been on the other side of that from the United States, from other G7 economies. But when the G7 gets together and compares notes and sees how the Chinese are willing to use a dominant economic position to engage and lever political pressure on those countries, the G7 realizes they are much better off coordinating their policies than they are by themselves. And you are seeing that.
Now, most of that is the Europeans moving more closely to the United States in concerns about Chinese political security and economic practices. Some of it is the Americans talking less about decoupling and accepting a more proactive continuity of overall G7 China economic relations and interdependence that is important and necessary. But what's significant is that these relations are coordinated and the Chinese see that, and they see that they are not able to drive a bus through divisions between the United States and Canada on one side, Europeans on the other in how China is able to engage politically, and that does matter.
Having said all of that, that sounds like a great G7 for everyone concerned, but of course, a lot of these leaders are quite weak at home, quite unpopular at home, and the big problem is absolutely President Biden who had to cut short a dinner with the heads of state and then had to cancel a trip to Papua New Guinea, doesn't sound all that important, except all of the leaders of the Pacific Island states were coming to PNG in order to meet with Biden. These are countries where the Chinese are dominant economically and the Americans are trying to provide more security relations. Couldn't do that. Canceled on the BRICS summit too, visit to Australia, and to the Prime Minister in his hometown. Kind of embarrassing, at the last minute, he got a phone call, at least from Biden before the announcement. Papua New Guinea only got it afterwards. Well, they're
tiny place, but still doesn't look great.
And why is it happening? Dysfunction in the US political system and everyone gets that the debt limit needs to be resolved. Everyone gets that the Americans have to make good on paying off debts that they have already incurred, and yet Congress and the US president continue to be headlong moving towards crisis. Only 10 days left until June 1st in the so-called X date. According to Janet Yellen, Secretary of Treasury, that is when the debt comes due. And you don't have enough time at this point to get a deal that then can be voted through the House of Representatives without Republicans bolting from McCarthy and undermining his speakership.
So at this point, either there's going to be a short term extension or you're going to hit the X date. One of those two things I think is going to happen. In other words, there is going to be a much bigger crisis, at least sense of crisis before you can resolve this problem and that level of US political dysfunction on display in the G7, on display with the Chinese, on display most everywhere in the world, the biggest challenge to America's strength continues to be at home politically.
That's it for me. I'll talk to you all real soon.
G-7, NATO summits show Russia may “win” in Ukraine but will lose against a united West
All eyes were on Europe this week, where world leaders met in Germany’s Bavarian Alps for the G-7 summit before heading to Madrid for the NATO summit. Both gatherings were the most significant of their kind in over a decade, thanks to the Russian invasion of Ukraine and its threat to the international order.
The meetings, which are usually largely symbolic, had a few tangible outcomes.
The United States and its G-7 allies—the United Kingdom, France, Germany, Italy, Canada, and Japan—committed $4.5 billion to address the global food crisis caused by the war in Ukraine. They announced a ban on imports of Russian gold, one of Russia’s major pre-invasion exports. They imposed new sanctions curtailing Russia’s ability to import key inputs for its arms industry. There were discussions of setting a price cap on Russian oil, which if enacted would sharply dent Russia’s export revenues while at the same time maintaining global supply and potentially reducing global oil prices.
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Turkey agreed to drop its veto on Finland’s and Sweden’s NATO membership bids (even though President Erdogan hedged a tad on his way out), mostly clearing the path for an expansion of the military alliance that would more than double the length of its border with Russia. NATO leaders agreed on a new strategic vision putting the alliance on a war footing—NATO is increasing its high-readiness forces from 40,000 to 300,000—and positioning Russia as the “most significant and direct threat to Allies’ security and to peace and stability.” Many NATO members including the United States also pledged increases in collective defense spending, additional troop deployments, and further military aid for Ukraine.
Heads of state gather for the family photo at the NATO Summit in Madrid. Celestino Arce/NurPhoto via Getty Image
But the biggest takeaway was just how aligned advanced industrial democracies remain in support of Ukraine and in opposition to Russia. Despite the remarkable political weakness of their leaders and the mounting economic pain they are feeling as a result of their response to Russia’s aggression, these countries continue to show little daylight on Ukraine.
That’s not to say they all see exactly eye to eye on everything. The Americans and the Brits have a different position on, say, the appropriate level of military assistance than the Germans and the French. Every government has its own idea of how best to help Ukraine defeat Russia.
But the core desire to support the Ukrainian government, to ensure they can push Russia back, to punish the Russian regime and sever relations with them—that desire is shared by everyone in the West. Such a degree of agreement on any issue between leaders with wildly different ideologies, interests, and constraints was unthinkable before the Russian invasion of February 24. And as the war enters its fifth month, that unity is showing no signs of fraying.
Might cracks emerge going forward?
Despite facing staunch Ukrainian resistance, Russian forces now control 98% of the Luhansk region and about two-thirds of Donetsk. They will likely continue to make gradual gains in the Donbas in the coming months. The longer the war goes on and the more the U.S. and its allies get hit with high inflation and soaring energy prices, the more likely it is that support for Ukraine will eventually waver.
The reason Ukrainian President Volodymyr Zelensky called into the G-7 summit and said he wants the war to be over by wintertime is that he knows that come winter, his American and European counterparts are going to face enormous public backlash due to persistently high inflation and soaring food and energy prices. He rightly worries that six months from now, as the fighting on the ground settles into an unstable stalemate, Western leaders won’t have the political capital to sustain the level of support for Ukraine they were able to show in the first four months.
Ukraine President Volodymyr Zelensky delivers a video statement at the NATO Summit.Gabriel Bouys/AFP via Getty Images
That’s why he is so adamantly pressuring the West to ramp up its military and financial aid before it’s too late: so that when international support for Ukraine inevitably dries up, the country is in the best position it can be to continue fighting and, eventually, to negotiate.
Make no mistake, over time support for Ukraine will diminish, and Russia will gain the upper hand. Ultimately, it is very likely that the Russians will end up in a better military and territorial position in Ukraine than they were before they invaded. They will have seized most of the Donbas, probably formally annexed it as part of Russia, and they will have a land bridge to Crimea.
At the same time, though, the longer the war goes on, the more leverage the Russians will lose vis-à-vis the West. There is no conceivable scenario in which Russia ends up in a better economic and geostrategic position than it was before February 24. Once the Russian economy is fully decoupled from the West, any power that Moscow once had over Western capitals will be gone for good.
Long term, the U.S. and its allies will adapt to the loss of Russian oil and gas. The same cannot be said of Russia’s ability to withstand the loss of not just export markets but also, most importantly, access to imports critical to its manufacturing and military capabilities.
While Russia may “win” in Ukraine, it will most definitely lose against the West.
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What We’re Watching: Contentious SCOTUS decisions, Russia's Snake Island retreat, Israel’s new PM, G7's topless fantasies
SCOTUS hands Biden a win and a loss
The US Supreme Court on Thursday handed down decisions in two closely watched cases. First, the court ruled that the Environmental Protection Agency can’t enforce rules limiting carbon emissions at existing power plants. The six conservative justices who backed the majority opinion said only Congress should regulate climate policy. The long-running case – which made its way through the courts during the Obama, Trump, and Biden presidencies – is emblematic of the broader fight between coal-loving Republican states and Democrats pushing for more action on climate change. The decision will also complicate Biden’s pledge to switch the power grid to clean energy by 2035 – and to reach net-zero emissions by 2050. Crucially, the US is the world’s second-largest carbon emitter after China. SCOTUS’s subsequent ruling, however, went in Biden’s favor: two conservative justices joined the court’s progressive wing to scrap the “Remain in Mexico” policy, a Trump-era immigration law requiring some migrants to wait in Mexico while their asylum claims are processed. Still, a federal judge has blocked Biden from lifting another Trump-era immigration restriction, so this ruling is unlikely to have a significant impact on the immigration landscape ahead of November’s midterms.
Kyiv scores as Russia flees Snake Island
On Thursday, Russia retreated from Snake Island, the Black Sea outcrop it invaded on the first day of its war against Ukraine. Russia claims it was a “gesture of goodwill” to prove it wasn’t blocking Ukraine's food exports, but Ukrainians say that’s a lie and that their missile strikes drove the Russians out. Prior to the war, Ukraine exported five million metric tons of grain per month, and the blockade has caused global food prices to soar, and created fear of famine in some African countries. Zmiinyi Island — as it is known in Ukraine — is 22 miles off the coast of Ukraine and offers several strategic advantages. While hard to defend, the island in Russian hands had crippled Kyiv’s ability to defend the entire southwestern coast of the country, including its largest port, Odesa. Russia was also using it to support a naval blockade and to control crucial shipping lanes in the Black Sea. While clearly a win for Ukraine – and a much-needed morale boost – it doesn’t change the Kremlin’s focus on claiming the Donbas region in southeastern Ukraine. And without a strong navy to defend it, Ukrainian ships will likely still be unable to resume movement of food exports in the Black Sea — at least for now.
What’s on the agenda for Israel’s new PM?
Israel again has a new prime minister after the Knesset, Israel’s parliament, voted to dissolve itself after a series of political crises. Yair Lapid, head of the centrist Yesh Atid Party, will serve as interim PM until elections on November 1 – the country’s fifth since 2019. Meanwhile, outgoing PM Naftali Bennett, who partnered with Lapid to form the unwieldy coalition that ousted longtime PM Benjamin “Bibi” Netanyahu in 2021, says he won’t run in the next election. At home, Lapid will mainly be focused on ensuring that right-wing parties in his coalition don’t jump ship to the opposition headed by Netanyahu. Such a move could return Bibi to power (he is 3-4 seats short of a parliamentary majority, according to polls). Lapid, meanwhile, hopes to bolster his image as an elder statesman. Next week, he heads to the Élysée to meet with French President Emmanuel Macron before hosting President Joe Biden in Israel. There are also rumors that the Saudis will sign onto the Abraham Accords when Biden tours the region next month. Indeed, a three-way handshake between Lapid, Biden, and Saudi Crown Prince Mohammed bin Salman would surely be a boon for the interim Israeli PM ahead of the nail-biter November polls.
What We’re Ignoring: Topless fantasies
We hate to say it, but it’s hard to disagree with Vladimir Putin on this one. Responding to G7 leaders’ jokes earlier this week about whether they should meet topless to mock the famously bare-chested Putin, the Russian president showed zero mercy: “above or below the waist,” he said, "it would be a disgusting sight.” Doubtless that’s true of Biden, to say nothing of the bloated and debauched Boris Johnson — but maybe we’d give Justin Trudeau a pass? Regardless, we believe the world would be a better place if all leaders kept their shirts on and their armies at home.Russia losing in the West
Ian Bremmer's Quick Take: Hi everybody, Ian Bremmer here. Happy Monday to you. It is summit week, particularly summit week as it involves the United States and core allies starting right now with the G7, began on Sunday in Germany, and then moving on to the Madrid Summit in Spain. Certainly the most important NATO summit that we've had in decades, but more broadly, this is the United States and advanced industrial democracies coming together in response to a major global crisis on the European continent. And in some ways to the "Western order", which is of course the Russian invasion of Ukraine. As we look at these summits, it's very clear that when you talk about individual leaders of the countries, they're looking pretty weak. I mean, given both the state of the economy, which of course makes a lot of citizens pretty angry, irrespective of whose fault it is or isn't, and also plenty of domestic challenges on top of that.
In the UK, Boris Johnson could literally get thrown out of power most any day, a scandal a minute, members of his own party turning against him, all sorts of resignations in Cabinet and the rest, key advisors. In the United States, Biden with an uphill struggle with the lowest popularity of his term so far, doing worse in terms of total popularity than President Trump had at this stage in his presidency. Quite something. No one from Team Biden would've believed that was possible if you had said it a year ago. Macron in France, winning his reelection bid, but getting thumped in the second round of his parliamentary elections for his country, now is the first prime minister in some 20 years not to have a majority in France, first president, I should say. And the question as to whether or not he's going to have to change his PM pick as a consequence of that. Super Mario, Mario Draghi, very popular, doing a very solid job towards the end of his term in Italy.
In fact, I mean, among all of them in the G7, you'd say that Kishida-san in Japan is probably in the best position. And of course, Japan tends to have the least impact of all of the G7 leaders on the global stage. Don't want to rock the boat too much. They’re very cautious and incremental in terms of the global statements and leadership they typically show. But of course it is nonetheless a very important set of summits and probably the most important set of summits we've seen certainly since the financial crisis. And again, the reason for that is not only by itself the fact that a war's on, also the fact that war is bringing the United States and its core allies much closer together.
We need to be clear on this because there are of course different nuances in position when you read carefully what the Germans, what the French, what the Americans, what the Canadians are actually saying. I mean, you saw that the "gaffe" that Biden made, "My god, how can this man stay in power?" Are we talking about regime change? The Americans of course tend to see these sorts of conflicts through a more military lens, because there's so much military leading US policy around the world, and America spends vastly more on its defense capabilities than a lot of its allies combined. The Eastern Europe, of course, also wants to do a lot more, particularly a country like Poland, the Baltic states. Why? Because this feels like a direct and immediate security concern to them and for them, while the Germans and the French have been somewhat more moderate. I wouldn't necessarily say conciliatory, but focused more on what negotiations would eventually look like.
But despite all of that, I mean the big takeaway and the takeaway that really people should be recognizing as extraordinary is just how aligned these countries have been and remain, all of them, on this issue. The desire to support the Ukrainian government, to help ensure that they can push the Russians back, the desire to punish the Russians and sever their economic relations from the West, from the United States, from Europe, from Canada, from the Asian allies too, no one would've expected anything like that level of coordination, not just on Russia, but any issue, before the invasion of February 24th. And yet not only does it exist, but it persists, and at this point, four months on, I really don't see any significant erosion of that position.
I mean, at the G7 summit tomorrow, we're going to see a gold boycott announced, which is a massive hard currency earner for the Russians, an oil price ceiling likely being put into place, coordinated among all of the allies there, which is again, quite significant in part because it will allow for just as fast the transition away from Russian energy, but without the Russians pocketing all the proceeds as they have over the course of the last several months. Should bring oil prices down well before Biden makes his trip to the Gulf and Saudi Arabia next month.
Russia just defaulted on its hard currency debt. First time since 1918. Why? Because the West has all been completely aligned on Russia policy. Now that's not to say there aren't very significant problems going forward in response to this crisis. In particular, the fact that the Ukrainians are losing territory. They've lost almost the entirety of Luhansk, that is going to fall, the remaining small bits, a few more miles over the coming weeks. The Donetsk, which is the other part of Donbas. They've lost at this point, about half, and probably going to lose more. President Zelensky called into the G7 summit. And he says he wants the war over by winter.
Well, of course he does, but why is he saying that now? Why is that the big takeaway? And it's because he knows that come winter, a lot of citizens of particularly European countries, but in the United States as well, are going to be facing a lot of anger and a lot of anxiety with continued high inflation, with continued high food crisis, with energy prices, and worries that they won't have the same level of support for Ukraine in another year as they have in the first months. I think that's a very reasonable concern. And as a consequence, he's basically trying to pressure the West as much as he possibly can, and he is doing that, to give more financial aid, more military aid, faster and more heavy weaponry. Faster so that when the war starts to turn more badly against Ukraine from an international perspective, when they no longer have as much money coming in, the frozen conflict, because the Russian troops are exhausted, the Ukrainian troops are exhausted, ends up in a better position for the Ukrainians to negotiate.
But I want to be clear, what that means is that the Russians can "win" in Ukraine. They will end up in a better position in Ukraine on the ground militarily than they were before they invaded. They'll have the land bridge, they'll have most of the Donbas, and probably they will formally annex it as part of Russia. That will not in any way make Putin in a better position internationally. He's going to be losing in the West. And I think that matters immensely for Putin, his economic position, his political position, his strategic position. This has been very clear as the war started. It's equally clear four months on. Over time the Ukrainians lose a lot of leverage because other countries don't care as much, and the Russians are right there and they care a lot, and they're overwhelming from a size perspective, from a military perspective. But over time, the Russians lose leverage vis-à-vis the West.
Why? Because once you've gotten rid of, once you've decoupled the Russian economy, they don't have the leverage over you that they used to. Once the oil, the coal, the gas is gone, you're not investing again. Once the semiconductors are gone, Russia's manufacturing capability, its military capability erodes, and its ability to export long-term erodes as well. Keep in mind, almost all of Russia's economy had been oriented towards Europe and the West. That's going to have to change, going to change under very, very challenging circumstances for Putin. So yes, I do think looking forward, Russia's position in Ukraine is increasing and improving. Russia's position towards NATO and the West is decreasing and eroding pretty dramatically. And that's likely what we're going to be seeing next year, too.
That's it from me. Hope everyone's well and talk to you all real soon.
For more of Ian Bremmer's weekly analyses, subscribe to his GZERO World newsletter at ianbremmer.bulletin.comWhat We're Watching: G7 summit, SCOTUS gun-rights ruling, Ramaphosa's bad optics
G7 meets as global fault lines deepen
Leaders of the world’s leading industrialized democracies — Canada, France, Germany, Italy, Japan, the UK, and the US — will gather in Bavaria this weekend to discuss ways to shore up support for Ukraine without slipping into a direct conflict between NATO and Russia. China’s “coercive economic practices” will also be on the agenda, according to US officials. With global geopolitical fault lines opening up as a result of Russia’s war in Ukraine, one key G7 guest to watch is Indian Prime Minister Narendra Modi, who will attend just two days after taking part in a pivotal summit of the BRICS, where B(razil), I(India), C(hina) and S(outh Africa) all looked for ways to deepen ties with R(ussia.)
SCOTUS wades into another US culture war
The legislative and judicial branches are out of sync in America. On Thursday night, the Senate passed (lukewarm) gun-safety legislation following the Texas school shooting, hours after the Supreme Court ruled that Americans have a constitutional right to carry firearms in public. In its first major gun-rights decision in years, the court overturned New York’s requirement for people to demonstrate a need for a gun to obtain a concealed-carry license. Very soon, almost anyone will be allowed to carry guns on the streets of America’s biggest cities — which also tend to have the toughest anti-gun laws. Still, the decision is at odds with the bipartisan effort in Congress to make at least some progress on the divisive issue of gun-safety legislation. It also kicks off a series of looming high-profile rulings before the court’s summer break — including the likelihood that the conservative majority will overturn Roe v. Wade, the landmark 1973 decision that legalized abortion in the US. Just months before November’s midterm elections, this is bound to have many questioning whether the court still stays above politics.
South Africa’s Ramaphosa — “ought he to have known” about graft?
A bombshell three years in the making dropped this week when an independent inquiry charged with investigating suspected government corruption under former President Jacob Zuma reported findings damning current President Cyril Ramaphosa. Zuma, the former African National Congress heavyweight, still faces fraud charges on allegations that he pillaged state resources and colluded with the Indian-born Gupta brothers, recently arrested in Dubai, to ravage state coffers. Ramaphosa denied knowing about any graft, but the report suggests that he – as Zuma’s deputy from 2014-2018 – should have known what was going on and tackled serious allegations. While Ramaphosa isn’t accused of wrongdoing, the optics are bad for a politician who has sought to establish himself as an anti-corruption warrior. This throws another spanner in the works for the head of state as he tries to stave off bitter internal party divisions and enhance the ANC’s poor image ahead of 2024 elections in which the party is at risk of losing its ruling majority.
EU/NATO summits intensify support for Ukraine
Carl Bildt, former Prime Minister and Foreign Minister of Sweden, shares his perspective from Doha on European support for Ukraine.
Is European support for Ukraine holding up?
I mean, the answer is, very distinctly, is yes. There was a remarkable, you can call it the summit of summits, in Brussels on Thursday, where we had, first the NATO summit with President Biden as well, we had the G7 summit and we had the EU summit with President Biden as well. There's never been, to my knowledge, any summit of summits of that particular sort. And that took place on the day, one month after President Putin started his aggression against Ukraine. Sanctions are being intensified. Weapons deliveries to Ukraine are intensified. The thing that worries the Europeans somewhat is, of course, energy dependence and energy prices. And you've seen a lot of people coming to--quite high up--at the moment Doha in Qatar, in order to secure supplies of natural gas and other energies in order to get Europe off its dependence, or the dependence of some of the country's, on natural gas from Russia.
That will happen as well. So support, certainly holding up.
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Does alcohol help bring the world together?
On GZERO World, Ian Bremmer takes a look at the yin and the yang of alcohol's role in high-level diplomacy and society at large. Alcohol can bring people together just as easily as it can tear them apart. From a 1995 Clinton/Yeltsin Summit where a drunk Yeltsin almost derailed Bosnian peace talks, to Obama's Beer Summit and the recent G7 Summit, booze plays a part in how world leaders interact. Globally, alcohol consumption has been steadily increasing, by over 70 percent between 1990 and 2017, according to one report. . Low and middle-income nations like Vietnam, India, and China are a driving force behind that trend, with drinking in Southeast Asia rising by over 34 percent between 2010 and 2017. And yet, amidst this global booze boom, the world has only grown more and more divided.
Watch the episode: The (political) power of alcohol