Category: 2. World

The Borrowers’ Forum is being hailed as a milestone in efforts to reform the international debt architecture, supported by the UN and emerging as a key part of the Sevilla Commitment outcome document.

“This is not just talk – this is execution,” said Egypt’s Minister of Planning and Economic Development, Dr Rania Al-Mashat. “The Borrowers’ Forum is a real plan, driven by countries, to create a shared voice and strategy in confronting debt challenges.”

Rebeca Grynspan, Secretary-General of UN Trade and Development (UNCTAD), said developing nations often face creditors as a united bloc while negotiating alone. “Voice is not just the ability to speak — it’s the power to shape outcomes. Today, 3.4 billion people live in countries that pay more in debt service than they do on health or education.”

The forum – one of 11 recommendations by the UN Secretary-General’s Expert Group on Debt – will allow countries to share experiences, receive technical and legal advice, promote responsible lending and borrowing standards, and build collective negotiating strength.

Its launch addresses long-standing calls from the Global South for more inclusive decision-making in a debt system dominated by creditor interests.

‘Silent but urgent’

Zambia’s Foreign Minister, Mulambo Haimbe, told journalists the initiative would foster “long-term partnerships, mutual respect and shared responsibility” and expressed his country’s willingness to host an early meeting.

Spain’s Finance Minister Carlos Cuerpo described the current debt crisis as “silent but urgent,” and called the Forum a “Sevilla moment” to match the Paris Club of creditors, created nearly 70 years ago.

UN Special Envoy on financing the 2030 Agenda Mahmoud Mohieldin said the forum was a direct response to a system that has kept debtor countries isolated for too long. “This is about voice, about fairness – and about preventing the next debt crisis before it begins.”

The launch comes at a time of rising debt distress across the developing world.

The commitment – known in Spanish as the Compromiso de Sevilla – adopted by consensus at the conference, includes a cluster of commitments on sovereign debt reform.

Alongside support for borrower-led initiatives, it calls for enhanced debt transparency, improved coordination among creditors, and the exploration of a multilateral legal framework for debt restructuring.

It also endorses country-led debt sustainability strategies, debt payment suspension clauses for climate-vulnerable nations, and greater support for debt-for-nature and debt-for-climate swaps – albeit with stronger safeguards and evidence of impact.

Frustration over ‘missed opportunity’ to tackle debt crisis

Civil society groups on Wednesday sharply criticised the adopted outcome in Sevilla, calling it a missed opportunity to deliver meaningful reform of a global debt system that is crippling many developing nations.

Speaking at a press briefing inside the conference, Jason Braganza of the African Forum and Network on Debt and Development (AFRODAD) said the final outcome document adopted on day one – the Sevilla Agreement – fell far short of what was needed.

“This document did not start with much ambition and still managed to be watered down,” he said. “Nearly half of African countries are facing a debt crisis. Instead of investing in health, education and clean water, they’re paying creditors.”

Mr. Braganza praised the leadership of the African Group and the Alliance of Small Island States, which fought for a UN Framework Convention on sovereign debt.

‘False solutions’

Although that ambition was not fully realised, he welcomed a small breakthrough in the form of a new intergovernmental process that could lay the groundwork for future reform.

Civil society leaders also warned of the dangers of so-called “debt-for-climate swaps”, with Mr. Braganza calling them “false solutions” that fail to provide genuine fiscal space for developing nations.

Tove Ryding of the European Network on Debt and Development (Eurodad) echoed those concerns, saying: “We are told there’s no money to fight poverty or climate change — but there is. The problem is economic injustice. And the outcome of this conference reflects business as usual.”

She highlighted the progress made on a new UN Tax Convention as proof that determined countries can bring about real change, adding: “If only we had a tax dollar for every time we were told this day would never come.”

Commitment bears fruit for public health

To help close gaps in access to public services and policies, and to address healthcare cuts that could cost thousands of lives, Spain on Wednesday launched the Global Health Action Initiative aimed at revitalising the entire global health ecosystem.

The initiative, which will channel €315 million into the global health system between 2025 and 2027, is supported by leading multilateral health organisations and more than 10 countries.

Raising prices, saving lives

Later at the conference, the UN health agency unveiled a new drive to help countries tackle chronic disease and raise vital funds by increasing taxes on tobacco, alcohol, and sugary drinks. The 3 by 35 Initiative urges governments to boost the real prices of these products by at least 50 per cent by 2035.

“Health taxes are one of the most efficient tools we have,” said Dr. Jeremy Farrar, WHO Assistant Director-General. “They cut the consumption of harmful products and create revenue governments can reinvest in health care, education, and social protection.”

Noncommunicable diseases like heart disease, cancer, and diabetes now account for more than three-quarters of all deaths worldwide.

WHO says a one-time 50 per cent price rise could prevent 50 million premature deaths over the next 50 years, while generating $1 trillion in public revenue.

Between 2012 and 2022, nearly 140 countries raised tobacco taxes, proving such change is both possible and effective.

The IAEA said in a statement it was aware of reports of Iran’s suspended cooperation, and is awaiting official confirmation.

Iran has already banned IAEA Director General Rafael Grossi from its nuclear facilities and removed surveillance cameras from the sites last week, prompting condemnation from the United Kingdom, France and Germany.

U.S. President Donald Trump said the American strikes “totally obliterated” the facilities, but Grossi estimated the damage that was not “total.”

Grossi recently told CBS News that Iran could begin producing enriched uranium again in “a matter of months.” Iranian officials heavily criticized Grossi for failing to condemn the strikes, and Pezeshkian told French President Emmanuel Macron in a call that “the trust in the U.N. nuclear inspectorate is broken inside Iran.”

Iran previously allowed the IAEA to access and inspect its nuclear plants and use sophisticated surveillance devices as a part of the nuclear deal Tehran signed with France, Russia, the U.K., the U.S., Germany and the European Union in 2015 to keep its nuclear program under control.

The first Trump administration withdrew from that deal in 2018.

The 12th meeting of the Shanghai Cooperation Organization (SCO) Ministers of Transport is held in north China’s Tianjin, July 2, 2025. The meeting was held on Wednesday in Tianjin Municipality, with SCO transport ministers agreeing to strengthen regional connectivity. During the meeting, a memorandum of understanding on the joint construction of “Silk Road Stations” was signed among the transport sectors of the SCO member states. (Xinhua/Li Ran)

TIANJIN, July 2 (Xinhua) — The 12th meeting of the Shanghai Cooperation Organization (SCO) Ministers of Transport was held on Wednesday in north China’s Tianjin Municipality, with SCO transport ministers agreeing to strengthen regional connectivity.

During the meeting, a memorandum of understanding on the joint construction of “Silk Road Stations” was signed among the transport sectors of the SCO member states.

China’s Minister of Transport Liu Wei said that the proposed Silk Road Stations will offer essential facilities such as parking, rest areas and hot water for international freight drivers across SCO regions.

The initiative addresses critical infrastructure gaps along rapidly expanding trade corridors, where insufficient rest stops and maintenance facilities have contributed to driver fatigue and logistical inefficiencies amid rising cross-border passenger and cargo flows.

The meeting gathered transport authorities from Pakistan, Mongolia, Belarus, Kyrgyzstan and Tajikistan. Participants also held in-depth discussions on accelerating cooperation on projects such as advancing the high-quality development of the China-Europe Railway Express and implementing electronic permits for international road transport. ■

BARCELONA, Spain — A relentless European heat wave helped fuel a deadly wildfire in Spain while the European Union presented plans to reduce greenhouse gas emissions under scorching temperatures on Wednesday.

The blaze that broke out late on Tuesday created an enormous thick plume of ash and smoke that reached 14,000 meters (45,000 feet) of altitude, making it the largest registered by firefighters in Catalonia, a northeastern region of Spain.

Two farmers were killed while apparently trying to flee in a vehicle, local authorities said Wednesday.

Firefighters said that the fire spread at 28 kph (17 mph) at one point as it consumed 6,500 hectares (16,000 acres) mostly of grain fields, making it one of the fastest fires registered in Europe.

“Wildfires today are not like they were before,” Salvador Illa, the regional president of Catalonia, said. “These are extremely dangerous. From the very first moment, it was considered to be beyond the capacity of extinction. I mean that not even with two or three times the number of firefighters, they have told me, it would have been possible to put out.”

Firefighters credited a rainstorm later on Tuesday for having “quickly changed the situation and helped speed up getting the fire stabilized.”

Two of the 500 firefighters who deployed needed treatment at a local hospital for their injuries. Some 14,000 residents were ordered to stay indoors for several hours on Tuesday night.

More hot weather is expected on Wednesday with temperatures in the Lleida region forecast to reach a high of 39 C (102 F).

The European Center for Medium-Range Weather Forecasts said that it was closely monitoring the abnormally hot temperatures. Weather experts link the heat wave to climate change.

As much of Europe was scorched by torrid weather, the European Commission unveiled proposals to reduce emissions by 90% by 2040 as the 27-nation bloc aims to be fully carbon-neutral by 2050.

“We are finally here on a very hot day, and some would call that very timely,” Climate Commissioner Wopke Hoekstra told reporters in Brussels.

The proposals include allowing businesses to use international carbon credits to offset their emissions. Under the plan, international carbon credits could be used — starting in 2036 and limited to 3% of benchmark 1990 EU emissions — to reach the 2040 emission reduction target.

The proposals have to be approved by the EU’s 27 member states.

More than two-thirds of the severest heat waves in Europe registered since 1950 have occurred since 2000, the World Meteorological Organization says.

After Spain already set a record for June air temperatures, Spanish port authorities recorded the hottest ever water temperature readings for June in both the Mediterranean and the part of the Atlantic nearest to France.

Experts say higher surface temperatures are bad for sea life and make for warmer nights on shore.

“A much warmer sea around us contributes to the nights not cooling down, which is detrimental to people’s rest,” Manuel Vargas, researcher at the Oceanographic Center of Malaga, told The Associated Press.

Also in Spain’s southern city of Malaga, the international Red Cross set up an air-conditioned “climate refuge” to help residents. The Spanish Red Cross was itself providing an “assisted bathing service” to help people with reduced mobility to cool down in waters at the beach.

Heat alerts were issued for 17 Italian cities Wednesday. The corresponding surge in air conditioning was straining the electric grid and causing periodic blackouts. On Tuesday, parts of Florence’s historic center had a blackout following a surge in electricity use, energy company Enel said.

Italy’s labor ministry, meanwhile, summoned union representatives to a meeting Wednesday to finalize a protocol on protecting farm, construction and other workers who labor outdoors from heat exposure. This came after a construction worker died in Bologna this week.

On Tuesday, Catholic bishops from Asia, Africa and Latin America met in the Vatican to demand climate justice for the parts of the world most affected by rising temperatures.

France’s national weather agency kept four departments under red alert on Wednesday after temperatures exceeded 40 C (104 F) in many towns.

The summit of Paris’ iconic Eiffel Tower remained closed until Thursday for “everyone’s comfort and safety.”

In Switzerland, one of the two reactors at the Beznau nuclear power plant was shut down as part of efforts to prevent excessive warming of the Aare River, so as not to further burden wildlife and the overall ecosystem in already hot weather, operator Axpo said.

Hundreds of people in the central town of Soest cooled down on a baking-hot Tuesday night by taking on the local fire brigade in a water fight. Townsfolk were armed with water guns, the first responders with fire hoses.

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Michael Corder in The Hague, Samuel Petrequin in Paris, Geir Moulson in Berlin, Jamey Keaten in Geneva, Nicole Winfield in Rome and Teresa Medrano in Madrid contributed.

The US Agency for International Development (USAID) has officially closed its doors after President Donald Trump gradually dismantled the agency over its allegedly wasteful spending.

More than 80% of all the agency’s programmes were cancelled as of March, and on Tuesday the remainder were formally absorbed by the state department.

The shuttering of USAID – which administered aid for the US government, the world’s largest such provider – has been newly criticised by former Presidents Barack Obama and George W Bush.

These aid cuts could cause more than 14 million additional deaths by 2030, according to a warning published by researchers in the Lancet medical journal.

The authors of the Lancet report called the numbers “staggering”, and projected that a third of those at risk of premature deaths were children.

A state department official said the study used “incorrect assumptions” and insisted that the US would continue to administer aid in a “more efficient” way, the AFP news agency reported.

Founded in 1961, USAID previously employed some 10,000 people, two-thirds of whom worked overseas, according to the Congressional Research Service.

The controversial cuts began early in Trump’s second term, when billionaire and former presidential adviser Elon Musk was tasked with shrinking the federal workforce.

The move was widely condemned by humanitarian organisations around the world.

Among the programmes that were curbed were efforts to provide prosthetic limbs to soldiers injured in Ukraine, to clear landmines in various countries, and to contain the spread of Ebola in Africa.

On Wednesday morning, the agency’s website continued to display a message saying that all USAID direct-hire personnel globally had been placed on administrative leave from 23 February.

Secretary of State Marco Rubio previously said that the remaining 1,000 programmes after the cuts would be administered under his department.

“This era of government-sanctioned inefficiency has officially come to an end,” he added on Tuesday.

“Under the Trump Administration, we will finally have a foreign funding mission in America that prioritizes our national interests,” he wrote in a post on Substack.

Trump has repeatedly said he wants overseas spending to be closely aligned with his “America First” approach.

Bush and Obama delivered their messages of condemnation in a video conference they hosted with U2 singer Bono for thousands of members the USAID community.

Bush, a fellow member of Trump’s Republican Party, focused on the impact of cuts to an AIDS and HIV programme that was started by his administration and subsequently credited with saving 25 million lives.

“You’ve showed the great strength of America through your work – and that is your good heart,” Bush told USAID workers in a recorded statement, according to US media. “Is it in our national interests that 25 million people who would have died now live? I think it is, and so do you.”

Meanwhile Obama, a member of the opposition Democratic Party, affirmed the work that USAID employees had already done.

“Gutting USAID is a travesty, and it’s a tragedy. Because it’s some of the most important work happening anywhere in the world,” Obama was quoted as saying.

Long-time humanitarian advocate Bono spoke about the millions of people who he said could die because of the cuts.

“They called you crooks, when you were the best of us,” he told attendees of the video conference.

USAID was seen as integral to the global aid system. After Trump’s cuts were announced, other countries followed suit with their own reductions – including the UK, France and Germany.

Last month, the United Nations said it was dealing with “the deepest funding cuts ever to hit the international humanitarian sector”.