G7 to Address Market Transparency-German Finmin
For Personal Use Only
Berlin, Sept 18 Reuters - Financial market transparency will be a major topic for discussion at a meeting of the Group of Seven economic powers in Washington next month, German Finance Minister Peer Steinbrueck said on Tuesday.
Speaking at a breakfast with business leaders, Steinbrueck added that Germany’s economic recovery should continue in 2008 despite the recent turmoil in financial markets, which he said was not yet over.
State-owned investment funds would not be discussed at the G7 meeting, Steinbrueck said. “It won’t play a role at the G7. Financial market transparency will play a major role,'’ he said.
Germany is drawing up plans to shield its companies from cash-rich, state-owned funds especially from China, Russia and the Middle East which are eyeing acquisitions.
Turning to public finances, Steinbrueck said he expected Germany’s public-sector deficit to shrink to 0.1-0.2 percent of gross domestic product (GDP) this year. “We will possibly have a budget balance slightly above zero next year, I’m not totally sure,'’ he added.
After breaching the European Union’s deficit cap of 3 percent of GDP for four years in a row, Germany last year shrank its deficit to 1.7 percent.
Other EU countries might be tempted to break the EU’s deficit rules if big countries like France and Germany did so, Steinbrueck said. “If another important player such as France calls the stability pact into question then it will have a negative impact on other countries,'’ he said.
He referred to Germany already having broken the rules and said EU finance ministers had reminded France of its commitments.
Filed by Ivana Jankovic under Financial Supervision, Corporate and Public Governance, Democratization and Human Rights