Chancellor Angela Merkel can look back on a successful presidency of the Group of Eight (G-8) over the past year, as Germany hands over key international initiatives to Japan.

The Outreach Programme to five emerging economies -- China, India, Brazil, Mexico and South Africa -- has been set up by Merkel to continue a dialogue between them and the G-8 on key themes over the next two years.

"This is very rare for the G8," said Katharina Gnath of the German Council on Foreign Relations (DGAP) in Berlin. "Normally the presidencies set their own agendas and decide whom to invite, but this goes well beyond the German presidency."

Technology transfer, particularly on climate change, freedom of capital movement, protection of intellectual property rights and development, particularly in Africa are to be the topic of regular meetings into the Italian presidency in 2009.

"This has potentially far-reaching consequences," Gnath said, pointing to the role of the Organization for Economic Cooperation and Development (OECD) in providing a platform for the meetings.

Climate woes

Climate change was perhaps the overriding theme for Merkel at the G-8 summit in Heiligendamm in June, and there were many critics of Merkel's failure to nail US President George W. Bush to clear targets.

"I would prefer a binding target," French President Nicolas Sarkozy said after a compromise deal was struck.

"Perhaps little was achieved, but not much more could have been achieved," Gnath said, noting the way Bush finally began to acknowledge the scientific basis for global-warming concerns.

"You wouldn't have heard that two years ago."

Merkel herself announced her success in cautious tones. Calling the agreement a "major step forward," she added, "I can very well live with this compromise." Different tone

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