July 8, 2009 Wednesday
Updated

July 8, 2009
'Worst to come'
G8 leaders meeting
Leaders of the G-8 industrialised nations and a host of emerging powers meet until Friday in the city of L'Aquila. -- PHOTO: REUTERS

L'AQUILA (Italy) - GROUP of Eight (G-8) leaders gathering here on Wednesday faced deepening crises in Iran and China and a warning that the worst political and social effects of the global economic downturn are still to come.

Leaders of the G-8 industrialised nations and a host of emerging powers meet until Friday in the city of L'Aquila, which was devastated in April by an earthquake that killed nearly 300 people.

But as the leaders began arriving, World Trade Organisation chief Pascal Lamy warned them that 'the worst of the crisis in social terms is still to come, which means that the worst of the crisis in political terms is still to come'.

Mr Lamy said he would stress the need to resist protectionist tendencies when he meets leaders at the summit.

The build-up to the summit has been marred by increasingly lurid reports about Italian Prime Minister Silvio Berlusconi's private life, who dismissed a stream of newspaper allegations as 'all lies' in an eve-of-summit press conference.

'They are all lies, from the underage girls onward,' Mr Berlusconi told a news conference when he was asked whether the scandals that have been dogging him since April would cloud the summit.

The meeting begins with a working luncheon at 7 pm (1100 GMT) in a heavily fortified police training college on the outskirts of the devastated town.

With aftershocks still being felt, and only days after a tremor hit 4.1 on the Richter Scale, officials have drawn up plans to evacuate the leaders and cancel the summit in the event of a similar quake.

The talks will also focus on emerging political crises in China's Xinjiang region, Iran and Honduras. -- AFP.

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