Emerging powers should contribute more: Germany

SAO PAULO (Reuters) - Emerging economic powers should make a bigger contribution to the global financial system if they want to play a bigger role in decision-making, German Deputy Finance Minister Joerg Asmussen said on Saturday.

"The principle for the European Union is that if you want a greater say, you should make a greater contribution. There is no free lunch," he told Reuters on the sidelines of Group of 20 meetings at which emerging economies have called for a greater voice.

This could mean making more contributions to the International Monetary Fund, the World Bank or other official development plans, he said.

After the first day of meetings between G20 finance officials and central bankers, preparing the ground for a G20 leaders' summit in Washington next weekend, Asmussen said there was broad support for the EU's call for more transparency and comprehensive oversight.

"There was a clear call that the loopholes that are there in the global financial system should be closed," he said.

Some European countries have argued that sectors such as hedge funds, which have been subject to little regulation, should be more tightly controlled.

Policymakers also agreed that efforts to use public spending to boost national economies should be coordinated where possible, but domestic circumstances were paramount.

"There was consensus that countries should coordinate their efforts (on fiscal stimulus) but act according to their own domestic fiscal circumstances," he said.

(Reporting by Krista Hughes; Editing by Todd Benson)