LONDON, (Xinhua): Finance ministers and central bank governors from the Group of Seven (G7) industrialized nations countries are now gathering in London for a two-day meeting on world economic recovery, banking reform and monetary policy, but no communique is expected after the meeting.
British Finance Minister George Osborne, who chairs the meeting, suggested three priorities for discussions of finance ministers and central bank governors of the G7, namely Canada, Germany, the United States, France, Japan, Britain and Italy.
Osborne listed the tree priorities as monetary activism, fiscal responsibility, and structural reform.
“The meeting takes place at a time of greater economic stability, thanks to policy action taken. Markets have calmed, and there are signs that this is feeding through into greater confidence,” he said in a statement on the government website.
“There is no doubt that there is greater stability, and that is reflected in financial markets, than perhaps there was last year.”
But he said, “Global recovery cannot be taken for granted and needs to be nurtured.”
He disclosed the meeting will be in “informal discussions, with less focus on lengthy pre-prepared communiques and read out statements.”
He agreed that the G20, which includes both the advanced and emerging economies, is rightly the primary economic forum for setting the global rules of the game.
However, the G7 still represents around half of the world’s economy and constitutes major economic firepower.
In recent years, the G7 countries tend to get together on the sidelines of the G20 and the International Monetary Fund (IMF) meetings.
Speaking of the increasing use of monetary activism to nurture a global recovery, Osborne said, “Recovery from the financial crisis has required central banks to develop more powerful tools to support demand.”
“The G7 is an opportunity to consider what more monetary activism can do to support the recovery, while ensuring medium-term inflation expectations remain anchored,” he said.
Up to now, the Federal Reserve, the Bank of England, and the Bank of Japan have all undertaken Quantitative Easing (QE), and the Bank of Japan recently announced it would double its QE program.
Osborne said restoring the public finances and monetary policy are important responses to the economic environment. “But fundamentally, we need structural reform if we are to improve living standards in the long term,” he added.
“We should use the G7 to strengthen the political will to undertake necessary reforms.”
It is reported that free trade, tax system and transparency will be also discussed at the meeting, which is reportedly held in Buckinghamshire on May 10-11.