Merkel calls for balanced 'triad' in boosting global growth

German Chancellor Angela Merkel and visiting Japanese Prime Minister Shinzo Abe said on Wednesday that they would give a clear signal for a stronger economy at the upcoming G7 summit.

Abe, who is on a European tour to prepare for the summit scheduled for May 26-27 in Japan, told reporters after talks with Merkel that a "strong message" for boosting global growth should be sent from the meeting, placing emphasis on expansive fiscal policies and accelerated structural changes.

Merkel, however, called for a balanced "triad" consisting of structural reforms, investment and monetary policies of central banks - complemented by sound budgetary policies.

The two leaders have warned against excessive fluctuations in exchange rates.

"The relatively stability of currencies to each other is of great value," Merkel noted, adding that the current problems of world economy can not be solved with races for the lowest possible rate of exchange.

Merkel and Abe also discussed free trade. Both Germany and Japan, Merkel said, are very interested in an EU-Japan free trade agreement, adding that her country has made every effort towards a possible end of negotiations on the transatlantic deal this year.

Furthermore, they exchanged views on foreign policy and security issues, pledging to collaborate further to fight terrorism and violent extremism.