G7 Information Centre
Summits |  Meetings |  Publications |  Research |  Search |  Home |  About the G7 and G8 Research Group
Follow @g7_rg

Back to Analytical Studies

The Prospective Agenda for the
2007 G7 Finance Ministers Meetings

Laura Sunderland
Senior Researcher, G8 Research Group
May 16, 2007

See also G8 Leaders Prospective AgendaG8 Foreign Ministers Prospective Agenda


This prospective agenda for the 2007 G7/8 Finance Ministers Meetings is compiled by the G8 Research Group from public sources as an aid to researchers and other stakeholders interested in the G8. It will be updated periodically as planning evolves and as more information becomes available about its intended and actual agenda.


G7 Finance Ministers Meeting, May 18-19, 2007, Potsdam

Attendance

On May 15, 2007, Reuters News reported that it is unclear who will attend the meeting for France, as Sarkozy is not expected to choose his ministers until the end of the week.[1] World Bank President Paul Wolfowitz is expected to attend.[2]

On May 11, 2007, Dow Jones Commodities Service reported that US Treasury Secretary Henry Paulson will not attend the G8 Finance Ministers meeting, as he will be preparing for meetings with Chinese officials.[3] He will be replaced by Deputy Treasury Secretary Robert Kimmit at the meeting.[4]

Agenda

On May 15, 2007, Reuters News reported that a senior German finance ministry official stated that he does not expect the G8 finance ministers to mention the hedge fund code in their communiqué.[5] According to the draft communiqué, the finance ministers will state that "Global growth remains robust and it is more balanced across regions and within our countries... Amid moderating inflationary pressures, risks for the outlook have abated, but high and volatile energy prices remain a concern and we will remain vigilant."[6] Foreign exchanges rates will not be discussed.[7]

On May 15, 2007, Market News International reported that according to a German official, the finance ministers will not discuss foreign exchange rates due to the fact that the central bank governors will not participate in the meeting.[8] The official stated that "We will not talk about foreign exchange rates... The central bank governors will not be present and we have already discussed foreign exchange rates in Washington [at the April G7 meeting of finance ministers and central bank governors] and the world has not changed very much since then."[9] The official went on to note that the economic risks stemming from problems in the US subprime mortgage sector and the risks from carry trades have not changed very much since the finance ministers last met in Washington.[10]

On May 12, 2007, Jiji Press English News Service reported that "Finance ministers from the Group of Eight major powers are unlikely to agree on proposed measures to tighten supervision of hedge funds" at the finance ministers meeting.[11] They reported that Vice Finance Minister for International Affairs, Hiroshi Watanabe, said the current system is sufficient to oversee financial institutions that invest in hedge funds.[12]

On May 10, 2007, Kyodo News reported that the G8 will discuss hedge funds and are divided on the issue "with eurozone members including Germany hoping to enhance control of hedge fund activities by direct monitoring, while the United States and Britain are reluctant about imposing strict regulations... Japan takes sides with the United States and Britain on the issue and prefers indirect controls on hedge funds by monitoring financial institutions that provide them with funds, Japanese officials said."[13] On environment, the finance ministers are expected to discuss "tax breaks and emission trading for energy efficiency as part of discussions on ways to prevent global climate change."[14] They are also expected to discuss good governance in Africa and fostering bond markets in emerging economies. The ministers are not expected to focus on exchange rates, though they may mention the weakness of the yen against the euro.[15]

On May 10, 2007, Daily Yomiuri reported that "tougher controls on hedge funds will be the top agenda item" and ministers are expected to discuss reports by the Financial Stability Forum on hedge funds.[16] A Japanese plan to have the Financial Services Agency periodically review hedge funds will be reported at the meeting.[17] On Africa, the G8 and African outreach countries will discuss aid to Africa, how African nations can achieve stable economic growth and how to organize stock markets.[18] The agenda will also include tax incentives for measures against global warming.[19]

On May 9, 2007, the Financial Times reported that EU officials stated that contrary to the EU's official position, German Finance Minister Steinbruck will attempt to strengthen the supervisory framework for hedge funds at the finance ministers meeting.[20] The Financial Times reported that "critics of the initiative believe his campaign is partly for German domestic consumption, and that the US is likely to be equally resistant to any touch moves against hedge funds at the G8."[21]

On May 9, 2007, Jiji Press English News Service reported that finance ministers from five African countries (Nigeria, South Africa, Ghana, Mozambique and Cameroon) and the President of the African Development Bank, Donald Kaberuka, will join the G8 finance ministers at a dinner session on May 18.[22] They are expected to discuss aid and governance issues.

On May 9, 2007, Jiji Press English News Service reported that the G8 finance ministers are expected to discuss regulations on hedge funds, energy and environment.[23]

On April 23, 2007, Reuters News reported that UK Treasury Minister Ed Balls stated that "Following discussion with the FSA, we believe that the quality of prudential supervision of hedge fund activity would be enhanced if there were greater co-operation between the key regulators in monitoring the main counterparties' exposures to hedge funds... One option would be to broaden the six-monthly enquiries that the FSA currently carries out to other major regulators, and to all major counterparties."[24] Balls also noted that the proposal will be discussed by G7 Finance Ministers in Potsdam.[25]

On April 23, 2007, Business and Finance Daily News Service reported that EU finance ministers agreed to create a code of conduct for the hedge fund sector, and that Germany will use its EU and G8 presidencies to "press for the creation of a voluntary code of conduct for the hedge fund industry to guard against financial instability in global markets."[26]

On April 21, 2007, Dow Jones Energy Service reported that German Finance Minister Peer Steinbrueck said on April 20 that the EU should agree to a joint position on hedge funds prior to the G7 Finance Ministers meeting, where the issue will be discussed.[27]

On April 21, 2007, the Wall Street Journal reported that the Financial Stability Forum's recently updated 2000 report, which calls on the G7 to explore whether more information on hedge funds would mediate risks, will be discussed at the G7 meeting.[28] The Forum was asked to update its 2000 report by the G7 Finance Ministers meeting, held in February in Essen.[29]

[top of page]


Previous Meetings

See Official Documents.

G7 Finance Ministers Meeting: February 9-10, 2007, Essen

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

On February 9, 2007, Agence France Presse reported that German Finance Minister Peer Steinbruek said that he is in favour of expanding the G7 to include Russia and China.[30]

G7 Finance Ministers and Central Bank Governors Meeting: April 13, 2007, Washington

The G7 Finance Ministers and Central Bank Governors meeting was held on the margins of the International Monetary Fund and World Bank Group meetings (April 13-15, 2007).

On April 10, 2007, AFX International Focus reported that German Finance Minister Peer Steinbrueck will not attend the G7 finance ministers meeting in Washington, as he will be on holidays with his family in Namibia at that time.[31] Steinbrueck will be represented by Thomas Mirow at the meeting.[32]

On April 6, 2007, Japanese Finance Minister Koji Omi stated that "discussion on exchange rates is likely to include the yen, the dollar, the euro and the yuan" but "will not particularly focus on the yen."[33] Omi also stated that "We will focus on the outlook for the world economy including Japan, as well as IMF reforms and various other issues."

On April 2, 2007, Japanese Finance Minister Koji Omi stated that the topics for discussion at the G7 meeting have not yet been determined, but that it is unlikely that the finance ministers will discuss the yen.[34]

On April 2, 2007, Canadian Finance Minister Jim Flaherty stated that "I wouldn't be surprised if [the Japanese yen] was the subject of some discussion" at the G7 finance ministers meeting.[35] Flaherty stated that he expects global imbalances, Chinese currency flexibility, global commodity price levels and the impact of instability in the Middle East on oil prices to also be discussed.[36]

[top of page]


Notes

1 Noah Barkin and Brian Love (May 15, 2007), "WRAPUP 1-Hedge fund blow lowers Potsdam G8 prospects," Reuters News.

2 Noah Barkin and Brian Love (May 15, 2007), "WRAPUP 1-Hedge fund blow lowers Potsdam G8 prospects," Reuters News.

3 Dow Jones Commodities Service (May 11, 2007), "US Tsy Secretary Paulson To Skip Potsdam G8 Finance Meeting."

4 Dow Jones Commodities Service (May 11, 2007), "US Tsy Secretary Paulson To Skip Potsdam G8 Finance Meeting."

5 Noah Barkin and Brian Love (May 15, 2007), "WRAPUP 1-Hedge fund blow lowers Potsdam G8 prospects," Reuters News.

6 Noah Barkin and Brian Love (May 15, 2007), "WRAPUP 1-Hedge fund blow lowers Potsdam G8 prospects," Reuters News.

7 Noah Barkin and Brian Love (May 15, 2007), "WRAPUP 1-Hedge fund blow lowers Potsdam G8 prospects," Reuters News.

8 Market News International (May 15, 2007), "Germany Source: G8 FinMins Won't Discuss FX At Potsdam Meeting."

9 Market News International (May 15, 2007), "Germany Source: G8 FinMins Won't Discuss FX At Potsdam Meeting."

10 Market News International (May 15, 2007), "Germany Source: G8 FinMins Won't Discuss FX At Potsdam Meeting."

11 Jiji Press English News Service (May 12, 2007), "G-8 Ministers Unlikely to Agree on Hedge Fund Supervision."

12 Jiji Press English News Service (May 12, 2007), "G-8 Ministers Unlikely to Agree on Hedge Fund Supervision."

13 Yasushi Azuma (May 10, 2007), "G-8 to debate hedge fund, energy conservation next weekend," Kyodo News.

14 Yasushi Azuma (May 10, 2007), "G-8 to debate hedge fund, energy conservation next weekend," Kyodo News.

15 Yasushi Azuma (May 10, 2007), "G-8 to debate hedge fund, energy conservation next weekend," Kyodo News.

16 Daily Yomiuri (May 10, 2007), "Hedge fund control to top G-8 FM meet."

17 Daily Yomiuri (May 10, 2007), "Hedge fund control to top G-8 FM meet."

18 Daily Yomiuri (May 10, 2007), "Hedge fund control to top G-8 FM meet."

19 Daily Yomiuri (May 10, 2007), "Hedge fund control to top G-8 FM meet."

20 Tobias Buck and George Parker (May 9, 2007), "Brussels resists clampdown on hedge funds," Financial Times.

21 Tobias Buck and George Parker (May 9, 2007), "Brussels resists clampdown on hedge funds," Financial Times.

22 Jiji Press English News Service (May 9, 2007), "5 African Nations to Join G-8 Finance Ministers' Talks Next Week."

23 Jiji Press English News Service (May 9, 2007), "5 African Nations to Join G-8 Finance Ministers' Talks Next Week."

24 Reuters News (April 23, 2007), "UK proposes sharing information on hedge fund risk."

25 Reuters News (April 23, 2007), "UK proposes sharing information on hedge fund risk."

26 Business and Finance Daily News Service (April 23, 2007), "EU ministers to form Hedge Fund code."

27 Dow Jones Energy Service (April 21, 2007), "ECOFIN: EU's Juncker Sees Support For German Hedge Fund Plan."

28 Andrea Thomas (April 21, 2007), "G-7 Asked to See If More Data Are Needed on Hedge-Fund Risks," The Wall Street Journal.

29 Andrea Thomas (April 21, 2007), "G-7 Asked to See If More Data Are Needed on Hedge-Fund Risks," The Wall Street Journal.

30 Agence France Presse (February 9, 2007), "Germany in favour of opening up G7 to emerging countries."

31 AFX International Focus (April 10, 2007), "German Finance Minister Steinbrueck chooses Namibia break over G7 parley."

32 AFX International Focus (April 10, 2007), "German Finance Minister Steinbrueck chooses Namibia break over G7 parley."

33 Life Style Extra: Finance, News, Entertainment (April 6, 2007), "Japan finance minister says G7 unlikely to focus on the yen weakness," accessed April 10, 2007, http://www.lse.co.uk/FinanceNews.asp?shareprice=&ArticleRef=240659&ArticleHeadline=Japan_finance_minister_says_G7_unlikely_to_focus_on_yen_weakness

34 Takashi Nakamichi (April 2, 2007), "UPDATE: Japan's Omi Sees Little Chance Of G7 Discussing Yen," Dow Jones Newswires.

35 Andrew Peaple (April 2, 2007), "Canada Fin Min: Yen Likely To Be Discussed At G7 Meeting," Dow Jones News Service.

36 Andrew Peaple (April 2, 2007), "Canada Fin Min: Yen Likely To Be Discussed At G7 Meeting," Dow Jones News Service.

[top of page]


Earlier Versions


[top of page]

Back to: Analytical Studies


G7 Information Centre

Top of Page
This Information System is provided by the University of Toronto Library and the G7 and G8 Research Group at the University of Toronto.
Please send comments to: g8@utoronto.ca
This page was last updated May 17, 2007.

All contents copyright © 2017. University of Toronto unless otherwise stated. All rights reserved.