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 nation club on Friday, saying only a forum that included the major developing economies could legitimately take important global decisions.

The G8 is made up of wealthy northern hemisphere countries, but problems such as global warming 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, made up of the United States, Japan, Germany, France, Britain, Italy, Russia and Canada, has increasingly embraced other countries in recent years.

During its annual summit in central Italy this week it met with 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.

French President Nicolas Sarkozy also backed the G14, which represents roughly 80 percent of the global economy.