Key quotes from Rome G7 meeting

Following are comments made by policymakers at the Group of Seven meeting in Rome.

CANADIAN FINANCE MINISTER JIM FLAHERTY

I think we all agreed that protectionism would deepen the recession that we are experiencing.

Asked if there would be an expression against protectionism in the final statement from the meeting, he said: "I would hope so."

EUROGROUP CHAIRMAN JEAN-CLAUDE JUNCKER

"We don't like excess volatility and I would like to think that we have to repeat that common-sense message.

Asked if that would be the message of the final G7 statement, Juncker said: "I don't know if we will have a new statement on the exchange rate. In the case that we would have a specific exchange-rate-related statement we would have to repeat what we have said in recent statements, that we don't like this excessive volatility. In recent months volatility was really excessive." "The recent growth figures we have been given today are not really a surprise, but are underlining the seriousness of the situation we are confronted (with). We have entered a (period of) recession. "We have a strong hope that in the last quarter of 2009, the growth will be back and in the course of 2010, the situation will gradually improve but we have to note that we have to live for a long period with the consequences of the crisis."

GERMAN FINANCE MINISTER PEER STEINBRUECK

"We share the view (with U.S. Treasury Secretary Geithner) that we have to avoid any protectionist tendencies because this might be a very high risk for the world economy."

U.S. TREASURY STATEMENT

"This meeting takes place amid a severe global economic downtown and tremendous stress in the world's financial markets. The (Treasury) Secretary will encourage his counterparts to take strong actions to address macroeconomic and financial sector challenges and will underscore that these extraordinary times call for exceptional and complementary measures by all."

UK CHANCELLOR OF THE EXCHEQUER ALISTAIR DARLING

To reporters, asked about sterling exchange rate, said: "Any discussions that we have at the G7 tend to be in general terms.

"Britain has a policy of targeting inflation, not the exchange rate."

"We are seeing a substantial downturn in economies around the world, the euro area figures today demonstrate the scale of the problem we face, the problem is affecting countries in Europe, just as it is affecting us and the United States.

"I believe it is important that every country does what is right to support its own economy, the ... problem for each country is how we get lending going again.

"We must avoid retreating into protectionism...to retreat into protectionism would be disastrous just as it was in the 1930s."

Asked about "Buy America" he said Geithner spoke to the G7 earlier this week and "understood the risk of protectionism."

"It is important we don't do anything that establishes any protectionist measures."

Re widening scope of g7 he said: "we can't continue to behave like the world has not changed in 60 years." He added it is important that countries like India and China etc are included in discussions about the world financial system.

Re G7 in general, he said: "It is right that we take action together, I do think it is important that countries take action together."

On the Bank of England and interest rates, he said: "There comes a point when you get to a particular level that it no longer has the same affect."

GERMAN FINANCE MINISTER PEER STEINBRUECK

"It's in the region of what we say ourselves.

The important themes at the summit are the preparation for the financial in early April, the theme of protectionism, and asking the question about any initial thoughts on exit strategies (for) when we have put the financial market crisis and recession behind us."

On hedge funds:

"I had the same impression that we are of the same opinion as the French. What's even more important is that significant personalities in the U.S. administration like Geithner, Volker (of a key U.S. advisory panel) and Larry Summers have expressed themselves....(and) will have a very clear preference to regulate hedge funds."

(Rome G7 newsroom)