Germany has put hedge funds at the top of its agenda for this week’s meeting of the Group of Seven finance ministers in Essen, a senior finance ministry official said yesterday, though he stressed Berlin wanted more transparency, not more regulation, of the sector.

Germany, which holds the Group of Eight presidency this year, wants to start a debate about how to improve regulators’ knowledge of hedge fund activities, which it thinks present a potential threat to the stability of the international financial system.