Death knell tolls for G8, new body seen forming

By Randall Palmer and Emmanuel Jarry

L'AQUILA, Italy (Reuters) - World leaders signalled the demise of the Group of Eight wealthy nations club on Friday, saying only a forum that included the major developing economies could decide on important global issues.

The G8 is made up of rich northern hemisphere countries, but problems such as climate change and the economic crisis have revealed its limitations.

"One thing that is absolutely true is that for us to think we can somehow deal with some of these global challenges in the absence of major powers like China, India and Brazil seems to be wrongheaded," U.S. President Barack Obama told reporters.

The G8, comprising the United States, Japan, Germany, Italy, France, Britain, Russia and Canada, has invited other countries to its meetings in recent years on an ad hoc basis.

During its annual summit in central Italy this week it met the leaders of China, India, Brazil, Mexico, South Africa and Egypt, spontaneously forming the so-called G14.

Prime Minister Silvio Berlusconi said he thought this new grouping would become the dominant international talking shop.

"As far as I am concerned the G14 is the format that in the future will have the best possibility to take the most important decisions on the world economy, and not just that," he said.

South African President Jacob Zuma welcomed the shift towards a bigger forum. "It is a recognition that you couldn't just continue with the G8 when the global matters that are being discussed affect many countries," he told a news conference.