Germany took over the presidency of the Group of Seven (G7) on 1 July 2014. The G7 is an informal gathering of the Heads of State or Government of the seven most advanced industrial economies and a forum for exchanging views and opinions and coordinating joint policy positions. Its members are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

Until the end of 2015, the sessions of the G7 finance ministers and central bank governors will be chaired by Bundesbank President Jens Weidmann and Federal Finance Minister Wolfgang Schäuble. These regular confidential meetings augment the G7 summits attended by the Heads of State or Government. They are crucially important for the finance ministers and central bank governors of the leading industrial countries as a forum for informally exchanging views and opinions, addressing long-term international fiscal policy matters and discussing current developments in this field.

Working priorities of the German presidency

Because the G7 is not an organisation in its own right with its own management or permanent representative, its presidency plays a prominent role. It is charged with organising and setting the agenda of summits.

Germany's presidency will have three working priorities. Its objectives are to make the global economy more dynamic, the financial system more stable and international taxation fairer.

To consolidate the improving global economy, sound public finances and less debt are key to achieving sustainable growth. Greater investment and in particular structural reform are crucial for achieving this objective. Gaps in financial market regulation need to be closed, notably in the area of monitoring what are known as shadow banks, the aim being to help reduce the likelihood of financial crises in the future. Furthermore, there should be closer international cooperation in tax matters so as to enable everyone to contribute their fair share to the funding of public budgets. This is the only way to ensure the general public retain their confidence in the tax system.

Summits and specialist conferences

G7 finance ministers and central bank governors convene several times a years, usually on the margins of the spring and annual meetings of the International Monetary Fund (IMF). These sessions - which are mostly held in the IMF's host city of Washington - are also attended by the European Central Bank, the IMF, the World Bank, the Chair of the Financial Stability Board and one representative of the European Union. The next gathering of this forum is scheduled for 9 October.

It is also customary for the G7 presidency to host a separate meeting of finance ministers and central bank governors. The Bundesbank President and the Federal Finance Minister will be inviting their international colleagues to such an event from 27 to 29 May in Dresden. The next G7 summit of Heads of State or Government is set to take place on 7/8 June 2015 at Schloss Elmau in Bavaria.

In addition to the G7 meetings addressing financial matters, a series of high-level international specialist conferences on the German presidency’s three working priorities will take place in 2015, organised by the Bundesbank and the Federal Ministry of Finance. As part of this series of events, the Bundesbank will be hosting a conference on financial sector regulation in Frankfurt am Main in March 2015.

Alongside the aforementioned financial topics, the finance ministers and central bank governors will also discuss a range of other issues on Germany’s agenda for the G7 heads of state and government during its presidency, eg preparations for the 2015 United Nations Climate Change Conference, drafting objectives for development aid after 2015 and improving transparency on the commodity markets.

Long tradition of consultation

The roots of the G7 date back to the year 1967, when finance ministers from the United States and major European countries discussed interest rate policy matters at Chequers in the UK. Following the collapse of the system of fixed exchange rates in 1973, it became the norm for meetings to be held by the finance ministers and central bank governors of the "Group of Five" countries (United States, Germany, France, United Kingdom and Japan). On the initiative of French President Valéry Giscard d'Estaing and German Chancellor Helmut Schmidt, these meetings were from then on also held at the highest political levels, starting with the first economic summit held in Rambouillet in France in 1975. Italy and Canada joined this group in 1986 to form the G7.

The addition of Russia in 2008 created the Group of Eight (G8). The rotating G8 presidency was assumed by Russia at the beginning of 2014, and it was originally planned for the G8 summit to be held in Sochi on 4/5 June 2014. However, owing to Russia's violation of the sovereignty and territorial integrity of Ukraine, the G7 Heads of State or Government decided on 24 March 2014 to suspend their participation in the G8 until Russia changes course and an environment is restored in which the G8 is able to have meaningful discussion. They therefore continued their work in G7 format, meeting most recently on 4/5 June in Brussels.