On February 9-10, 2007, the G7 Finance Ministers will meet in Essen, Germany.

During its presidency of the G7 Finance Ministers forum, Germany will focus on fiscal policy, including "consolidating macroeconomic stabil-ity, the role of hedge funds in the stability of international financial markets, and the quality and sustainability of public finances."[1] The finance ministers will also discuss "the development of capital markets in emerging market economies, the promotion of growth and the fight against poverty by effecting improvements in the public finance sector of developing countries, and fiscal policy for the promotion of energy efficiency and of an energy strategy increasingly reliant on renewable energies."[2] The ministers will also address "how the international financial institutions IMF and World Bank should adapt to meet changing global conditions."[3]

On January 25, 2007, Market News International reported that a senior G7 source stated that the weak yen is "a certain cause of concern," but that "it is not Germany's ambition to put currency issues in the center" of the discussion.[4]

On January 12, 2007, Kyodo News reported that "Finance ministers and central bank governors of the Group of Seven industrialized countries are expected to take up the issue of regulating investment funds at their meeting in Germany in February."[5]

On December 28, 2006, Agence France Presse reported that greater transparency of global financial and capital markets, including regulating hedge funds, will "top the agenda" of the G7 finance and central bank chiefs in Essen.[6] According to the article, "Berlin appears ready to scale back its ambitions of drawing up concrete measures, while Washington seems to be coming round to the idea that action could be necessary, especially in the wake of the collapse of US hedge fund Amaranth Advisors."[7] German Sherpa, Bernd Pfaffenbach stated that "One mustn't be too ambitious... You can't simply take an axe to it and want to install rigid rules. That won't happen. But transparency has never hurt anyone. A joint final communiqué calling for more transparency would be feasible and desirable."[8]

On November 17, 2006, it was reported budgetary discipline will be central to the finance agenda.[9] An official reported that Merkel and the International Monetary Fund will propose a set of fiscal policy guidelines requesting governments to balance their budgets over one economic cycle, and prepare for the costs of aging populations.[10] The German finance ministry aims to put the proposed guidelines on the G8 Leaders' agenda in June.[11] According to the official, initial reactions by G7 partners to the draft guidelines have been positive.[12] The official stated that "This is about raising the quality of public financesÉ When should you consolidate if not now? The question is how do you achieve a sustainable fiscal policy at the global level. The IMF will advise and support us there."[13]

1 G8 Summit 2007 Heiligendamm (November 27, 2006), "Meeting of the G7 finance ministers and central bank governors in Essen on 9/10 February 2007," Accessed December 7, 2006, https://www.g-8.de/nn_94646/Content/EN/Artikel/2006/11/g8-2006-11-27-akkreditierung-g7-essen.html

2 G8 Summit 2007 Heiligendamm (November 27, 2006), "Meeting of the G7 finance ministers and central bank governors in Essen on 9/10 February 2007," Accessed December 7, 2006, https://www.g-8.de/nn_94646/Content/EN/Artikel/2006/11/g8-2006-11-27-akkreditierung-g7-essen.html

3 G8 Summit 2007 Heiligendamm (November 27, 2006), "Meeting of the G7 finance ministers and central bank governors in Essen on 9/10 February 2007," Accessed December 7, 2006, https://www.g-8.de/nn_94646/Content/EN/Artikel/2006/11/g8-2006-11-27-akkreditierung-g7-essen.html

4 Market News International (January 25, 2007), "G-7 Source: German Not Aiming to Make FX Focus on G-7 Talks."

5 Kyodo News (January 12, 2007), "Japan's Yamamoto reluctant to tighten control on investment funds."

6 Agence France Presse (December 27, 2006), "Germany wants G8 to 'go back to roots', tackle world's economic problems."

7 Agence France Presse (December 27, 2006), "Germany wants G8 to 'go back to roots', tackle world's economic problems."

8 Agence France Presse (December 27, 2006), "Germany wants G8 to 'go back to roots', tackle world's economic problems."

9 Agence France Presse (November 16, 2006), "Germany to push budget discipline at G8."

10 Agence France Presse (November 16, 2006), "Germany to push budget discipline at G8."

11 Agence France Presse (November 16, 2006), "Germany to push budget discipline at G8."

12 Agence France Presse (November 16, 2006), "Germany to push budget discipline at G8."

13 Agence France Presse (November 16, 2006), "Germany to push budget discipline at G8."