Merkel seeks closer EU-US ties on economic issues

"But no one can stop us from combining our efforts. Of course, if this works, it will make us stronger competitors. But this is certainly not about restricting trade in any way."

Merkel said the development of the hedge fund sector would be discussed during Germany's presidency of the G8.

"The result does not have to be new legislation. It can be self-regulation or improved supervision," she said.

In the wide-ranging interview, Merkel said she was hopeful a problem over a ban by Moscow of Polish meat imports would be solved, enabling talks between the EU and Russia on a new cooperation pact to begin.

"I am very optimistic that we will solve the problem of Polish meat exports to Russia. Then we can start the negotiations, although I am not saying they will be very easy."

Merkel said Russia had the right to seek greater access to Western European markets but that European investors should be equally able to enter Russian markets.

"If obstacles are being erected to protect Russian companies from European investors, nobody should resent it if the Europeans take reciprocal action," she said.

Merkel said no one should expect Germany's presidency to solve the problems in the EU over adopting a constitution but she aimed to develop a form of road map to move the process forward.