G7 leaders pledge stronger action to tackle rising global debt risks
Leaders call for support to vulnerable economies and reforms in development financing
Évian-les-Bains, France: Leaders of the Group of Seven (G7) have pledged to intensify efforts to address growing global debt vulnerabilities, warning of the risks posed to economic stability and public finances.
In a joint statement issued during the summit in Évian-les-Bains, the leaders said rising debt levels are constraining governments’ ability to fund essential public services and respond to economic challenges.
Focus on debt pressures
The G7 highlighted that escalating debt vulnerabilities are placing increasing pressure on global economic stability, limiting fiscal space for governments to invest in critical sectors.
The leaders emphasised the need for coordinated international action to address these challenges and support sustainable economic growth.
Support for developing economies
The statement called for increased assistance to countries that maintain sustainable debt levels and pursue strong reform agendas but struggle to attract investment.
G7 leaders noted that such countries often face difficulties accessing global capital despite demonstrating sound economic policies.
Role of development banks
The group also urged multilateral development banks to expand the use of risk-sharing instruments, aimed at encouraging private sector investment and improving access to finance.
The approach is intended to strengthen financial resilience and enable countries to manage debt more effectively while supporting development goals.
Global economic priorities
The commitment reflects broader efforts by the G7 to address structural economic challenges and promote financial stability.
Leaders said enhancing debt sustainability and improving financing mechanisms are essential to ensuring long-term growth and supporting countries facing economic vulnerabilities.