G8 to discuss aid for Tunisia and Egypt

Officials from the G8 – the United States, Canada, Britain, France, Germany, Italy, Japan and Russia – held preparatory talks on Wednesday in the seaside resort of Deauville to discuss issues including the world economy, the Libya war, Iran’s nuclear goals and unrest in Syria.

The “Arab Spring” uprisings are expected to dominate the agenda, and the summit is expected to pass measures to provide financial and political support for Tunisia and Egypt. Plans to back others in the region who want democracy will also be discussed.

“We share a compelling interest in seeing the transitions in Egypt and Tunisia succeed and become models for the region,” US Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner wrote in a letter to the G8 on Wednesday.

“Otherwise, we risk losing this moment of opportunity,” the statement said.

Washington has been calling for “debt swaps”, where wealthier nations agree to convert sums they are owed by countries into investments.

There will also be pressure for more practical advice and assistance as the states try to build up democratic institutions.

Strauss-Kahn’s replacement

The heads of the World Bank and the United Nations will also be present and add their signatures to the partnership declaration.

Former IMF chief Dominique Strauss-Kahn, under house arrest in New York following his indictment for sexual assault, will be replaced for the event by the institution’s acting managing director John Lipsky.

Finding a permanent replacement for Strauss-Kahn is likely to take up a good part of the summit’s talk. The IMF has set a June 30 deadline to pick a successor to the post, which has been held by a European since 1945.

But French president Nicolas Sarkozy has insisted he wants the internet to be at the heart of the summit, and a delegation of executives, including Facebook founder Mark Zuckerberg and Google chairman Eric Schmidt, are due to address the world leaders.

Although no Twitter representatives are thought to be on the guest list, the session could provide an opportunity for Mr Cameron to raise the issue of international regulation after the super-injunction controversy.

Fukushima update

Whitehall sources have indicated there is no prospect of further aid targets being agreed at Deauville. However, the leaders are likely to take stock of progress toward the 0.7 per cent of GDP target for aid spending.

The summit will begin with a session on nuclear safety in the wake of the crisis created by the earthquake in Japan.

Japanese Prime Minister Naoto Kan is scheduled to provide leaders with an update on the continuing crisis at the Fukushima Dai-ichi nuclear power plant.

Tomorrow G8 leaders are due to be briefed by the recently installed prime ministers of Egypt and Tunisia, Essam Sharaf and Beji Caid el Sebsi.