G-7 to discuss ways to lift growth amid eurozone debt crisis+

MARSEILLE, France, Sept. 8 Kyodo -
Financial chiefs from the Group of Seven advanced economies will gather Friday in the French port city of Marseille to explore ways to rev up the global economy and stabilize financial markets amid prolonged concerns about the sovereign debt crises in eurozone economies.
During a half-day meeting, the G-7 finance ministers and central bank governors are expected to reaffirm the need to restore fiscal health, while pledging to take necessary measures to jump-start the global economy.
Policymakers around the world are warning of growing downside risks to the global economy, with the sovereign debt problem in Greece rapidly affecting other eurozone economies.
Outside of the eurozone, the situation is severe as well -- Japan is struggling to rebuild the country after the catastrophic earthquake and tsunami in March, the United States is battling a high unemployment rate and a sagging housing market, while the pace of growth in emerging economies is beginning to slow.
The G-7 talks will be the first major international conference since the elevation of Japanese Prime Minister Yoshihiko Noda last week and will mark the diplomatic debut of Finance Minister Jun Azumi.
During the meeting, Azumi is likely to seek understanding from other G-7 participants of Tokyo's concern about the yen's recent appreciation against other major currencies.
''We are really concerned about the excessive rise of the yen and are paying serious attention to it,'' Azumi told reporters Tuesday in Tokyo. ''I want to urge (the G-7) to be aware of this.''
By emphasizing the negative impact of the yen's excessive rise on the economies at home and abroad, Japan hopes to get support from the G-7 countries for possible currency intervention in the future.
But some analysts say it is unlikely the G-7 will agree to work on a coordinated currency intervention, partly because the United States tacitly approves of a weak dollar to boost exports.
The gathering comes about a month after Tokyo conducted the largest-ever, single-day currency intervention on Aug. 4 to stem the sharp rise of the yen against the U.S. dollar.
The trend of the yen's strength has not changed, however, and the dollar hit a fresh postwar low of 75.95 yen in New York on Aug. 19.
Azumi is also expected to brief other G-7 members about Japan's plan to promote fiscal consolidation through such measures as tax reform.
Bank of Japan Governor Masaaki Shirakawa will also attend the G-7 meeting, which also involves Britain, Canada, France, Germany, Italy and the United States.
On Saturday, the finance ministers of the Group of Eight nations -- the G-7 members plus Russia -- and some Middle Eastern and North African countries will join a meeting of the Deauville Partnership to discuss ways to assist prodemocracy movements in the Middle East and North Africa.
==Kyodo
2011-09-08 23:14:07