Merkel doubts G8 will settle climate-change rules (Roundup)

May 24, 2007, 9:11 GMT

Berlin - German Chancellor Angela Merkel, who is to chair next month's meeting of Group of Eight (G8) nations, admitted Thursday the event was unlikely to settle climate-change policy for the post-2012 period.

In a wide-ranging, 20-minute speech to parliament on the G summit and world issues, she appealed for bigger efforts to combat global warming.

'The leading industrialized nations have to make progress on this issue, or else we will not be able to fight climate change,' she said.

She said she was sceptical as to whether summit leaders would agree next month on any concrete steps towards an international agreement covering the period beyond 2012.

Merkel announced that when Germany begins charging for carbon-dioxide emissions, it would use the proceeds to boost development aid, but added that Berlin would be pursuing 'new paths' in aid.

Speaking on another summit topic, she voiced her hope that the stalemated Doha talks on liberalizing world trade would reach a settlement after all.

She told legislators in Berlin that although the time left was now tight, a breakthrough was still possible if all parties demonstrated flexibility and willingness to compromise.

A deal would scrap many barriers to trade and benefit poor nations, she added.

She also asked Germany's critics of hedge funds to be patient. Berlin has been pressing for regulation of the funds, but the United States and Britain contend self-regulation is sufficient.

Merkel said 'differing perceptions' meant no rapid progress could be expected on the issue. She stressed that Germany would welcome self-regulation too. Greater transparency was what was needed so that risks posed by the funds to the world economy could be countered.

Merkel appealed to anti-globalization activists gathering next month in Germany to protest at the summit at a Baltic beach resort to remain peaceful. She defended the meeting as 'valuable.'

'Together with the G8 leaders and the main emerging economies, we want to give globalization a human face,' she said.

Merkel, who had phoned Israeli Prime Minister Ehud Olmert the previous evening, also appealed to Palestinians to stop firing missiles at Israel.

'Violence does not lead to any resolution of the problems,' she said.

The chancellor also appealed to Iran to halt its enrichment of uranium, telling Teheran 'we are willing for broad cooperation with Iran' if its leadership fulfils its international obligations.