G7 financial ministers met Friday in Iqaluit, Canada's Arctic circle city, to discuss cooperation on global economic and financial stability and balanced development ahead of the G8 and G20 summits in June.

Canadian Minister of Finance Jim Flaherty said before the meeting that the G7 cannot play the leading role it once did, but it will continue to evolve in an ever-changing world while contributing, through frank and open discussion, to a more stable and prosperous world for all.

"Our major concern is economic recovery and financial stability," Flaherty said at a briefing. "The origin of G7 is fireside chat, to get together and put proposals on issues to inform the important players like the G20 members."