Labour's Dilemma

The recent Spending Review presented by UK Chancellor Rachel Reeves was meant to signal the dawn of a new economic chapter for Britain – one focused on investment, growth, and the promise of improving the lot of working families.

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This year's G7 summit unfolds against the backdrop of a world in profound flux – one that is grappling not only with sluggish economic growth but also with the resurgence of geopolitical rivalries that threaten to upend the fragile order painstakingly built over decades. What was once envisioned as a meeting to chart cooperative pathways in technology, energy security, and sustainable development has been abruptly overtaken by the realities of war, rivalry, and mistrust. The simmering conflict between Israel and Iran has now leapt into sharp focus. Its shadow falls across every bilateral and multilateral discussion at the summit. For all the carefully planned agendas – economic coordination, AI cooperation, mineral supply chain security – there is an uncomfortable truth: no amount of pre-summit preparation can insulate the G7 from the urgent demands of geopolitics. The challenge is stark. Either the grouping can respond with relevance to these shifting realities, or it risks fading into performative irrelevance. Another force complicating this summit is the brief presence of US President Donald Trump, whose unconventional and often unilateral approach to trade, security, and diplomacy has historically disrupted such gatherings. This time, Mr Trump threatens to disrupt by his absence after the announcement that he is leaving early because he has more important things to do. Mr Trump's re-election has emboldened his tariff-driven worldview, placing further strain on the global trading system. His determination to rebalance economic ties with both adversaries and allies alike may find little harmony with the European or Japanese leadership. And yet, ignoring this realignment risks further fragmentation of the Western economic bloc. Canada, as host, stands in a delicate position. Prime Minister Mark Carney's first G7 outing as l