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CORRECTED - G7 considering its future, may form smaller group

Published 10/03/2009, 06:47 AM

(Corrects to show official said Europe, not euro zone)

ISTANBUL, Oct 3 (Reuters) - The Group of Seven rich nations hopes to decide on Saturday its future as an institution, with the United States pushing for the creation of a smaller core group, a G7 official said.

The official, speaking on condition of anonymity, said Washington wanted to see the G7 supplanted in global economic policymaking by a Group of Four that would comprise the United States, Europe, China and Japan.

For more than a decade, the G7 has dominated international policymaking. But the financial crisis has undermined its power, as big developing economies such as China have become key to managing the global recovery. (Editing by Andrew Torchia)

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