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POTSDAM, Germany (Kyodo) Germany’s ambition to impose tighter regulations on hedge funds flopped Saturday due to a wide gap between Group of Eight nations on the issue and some critics question if strict controls are necessary.

The finance ministers from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States said in a statement after their two-day talks in a lake resort near Potsdam that hedge funds “have contributed significantly to the efficiency of the financial system.

“Given the strong growth of the hedge fund industry and the increasing complexity of the instruments they trade, we reaffirm the need to be vigilant,” the statement also said.

At first glance, the latest statement suggests that Germany successfully fought back to persuade fellow G8 members to agree to include negative aspects of hedge funds in the statement.

But the nature of the latest G8 statement is a result of a compromise — a fuzzy mixture of all-around arguments, observers said.

Given that Germany is effectively fighting a lonely battle, chances appear slim that the eight nations will be able to reach a consensus in the direction of enhancing controls on hedge funds.

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