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G8 leaders meet on economy, climate
(Agencies)
Updated: 2009-07-08 23:46

The abrupt return home of Chinese President Hu Jintao after regional tensions erupted in northwest China's Xingjiang region could weaken trust-building discussions on making further progress on climate change.

China is among five developing market economies -- along with Brazil, India, Mexico and South Africa -- who are participating in the summit for the fifth straight year, joining from Thursday to discuss bringing them on board, aid and development. Also joining are nine African nations and a forum on climate change.

G8 leaders meet on economy, climate
Italy's Prime Minister Silvio Berlusconi leans to shake hands with U.S. President Barack Obama after a family photo at the G8 summit in L'Aquila, Italy July 8, 2009. [Agencies]

The summit will also discuss ways to widen Group of Eight even further amid growing sentiment that world's most-industrialized nations can no longer claim leadership on the global political and economic agenda.

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Obama signed an $787 billion economic stimulus bill in February, but experts say only about 15 percent of that has made its way into the economy so far, creating a debate between the wait-and-see camp and economists who urge another stimulus, arguing the recession proved to be deeper and more devastating than originally believed.

White House press secretary Robert Gibbs said Obama is satisfied with the recovery steps taken thus far but "won't hesitate" to take others if he thinks they are necessary.

"He is not ruling anything out. But at the same time, he's not ruling anything in," Gibbs told reporters traveling with the president.    

In the draft, the leaders also called on experts at the International Energy Forum to look at how they can dampen volatility in oil prices.

France and Britain had sought the intervention of regulators to reduce what they called "damaging speculation" in oil futures markets. Oil prices have plunged from around $147 a barrel last July to $32 late last year, then to $73 last week.

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