Sunday, October 11, 2009

Geithner backs re-evaluation of G-7 function

October 11, 2009

U.S. Treasury Secretary Timothy Geithner suggested that the Group of Seven forum should re-examine its role in global financial affairs to stay relevant. Geithner expressed his views in a recent interview.

Geithner appeared critical of the way the G-7 works, saying that it should be more focused on "substance" rather than "communique."

His assessment comes at a time when the Group of 20, which includes new economic powers China and India, is taking the lead from the G-7 in taking steps to reduce the fallout from the global economic crisis that hit last year.

Geithner's evaluation could spur a transformation of G-7 meetings of finance ministers and central bank governors into more informal discussion groups, returning to the original identity of the G-7 back in the 1970s.

Geithner was interviewed Oct. 4 following the G-7 meeting in Istanbul. During the closed-door session, Geithner expressed his concern to colleagues that G-7 meetings are too focused on preparing a final communique, rather than promoting candid discussion among nations, according to officials involved in the discussion.