Global Economy News
LAST UPDATE: May 29, 2025
OPEC+ adopts plan for 2027 baselines ahead of July output hike talks
OPEC+ agreed to establish a mechanism for setting 2027 oil production baselines, with discussions on a potential July output increase forthcoming.
Insight
The decision to plan for 2027 baselines reflects OPEC+’s strategic foresight in managing long-term production goals. By addressing future output levels, the alliance aims to accommodate members’ evolving capacities and market dynamics. The upcoming talks on a July output hike suggest a responsive approach to current demand trends. Balancing individual members’ interests with collective objectives remains a central challenge for OPEC+ in maintaining market stability.
More than 200 jobs cut at ILO as US slashes funding
The International Labour Organization announced approximately 225 job cuts due to significant reductions in US voluntary funding contributions.
Insight
The funding cuts by the US, traditionally a major contributor to the ILO, have forced the organization to implement substantial workforce reductions. This move not only affects the ILO’s operational capacity but also signals potential shifts in US engagement with international institutions. The job losses may impact the ILO’s global initiatives and its ability to support labor standards, especially in developing countries. The situation underscores the vulnerability of international organizations to changes in member states’ funding priorities.
France pushing for ‘China-EU leadership’ on climate
France advocates for a joint China-EU leadership role in global climate efforts, especially in light of the US’s reduced engagement under President Trump.
Insight
France’s push for a China-EU climate partnership highlights its commitment to multilateralism and proactive environmental diplomacy. By seeking collaboration with China, France aims to fill the leadership void left by the US’s retreat from climate initiatives. This strategy reflects a pragmatic approach to advancing global climate goals, recognizing China’s significant role in emissions and green technology. However, aligning the EU and China’s differing priorities and policies presents a complex challenge that requires careful negotiation and mutual understanding.
