G7 finance chiefs ignore rising debt load

The G7 finance chiefs gathered in Italy for their annual meeting, with debt concerns notably absent from the agenda despite mounting borrowing levels across member countries, Blomberg reported on Thursday.

The meeting, chaired by Italian Finance Minister Giancarlo Giorgetti, prioritised discussions on aid to Ukraine, international taxation, and artificial intelligence.

Despite Italy’s picturesque backdrop for the gathering, the country faces significant fiscal challenges, exacerbated by the pandemic-era “superbonus” tax break.

The IMF’s recent forecast predicts rising debts within the G7 through 2029, with the US, UK, and France singled out for particular concern.

However, discussions on addressing fiscal challenges are complicated by upcoming elections and differing priorities among member nations.

The reluctance to tackle these issues extends beyond the G7, with similar reticence observed in the larger G20. Concerns persist among economists and analysts, who warn of the potential consequences of delaying action on public finances.