As the global economy emerges from the COVID-19 pandemic in 2022, the road to sustainable economic recovery has been interrupted by the Russian invasion of Ukraine. In the short term, the G7 needs to address the crisis in Ukraine and deal with the impact of the war on lives and livelihood. At the same time, it needs to keep track of long-term objectives. A new global bargain is needed to support long-term economic growth, accelerate energy transition and the decarbonisation of the world economy, and tackle inequalities. Improved governance of this new global bargain will be essential, to preserve stability and ensure cooperative policies, to mitigate polarization, and to avoid the fragmentation of the international economic order.