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          WORLD> Europe
          Berlusconi hosts G8 as scandals weaken credibility
          (Agencies)
          Updated: 2009-07-02 14:28

          Despite approval ratings that are high by most standards, and solid victories in recent European and local elections, aides find themselves tackling talk of a "lame-duck" leader, when only a year ago he was returning to power with a resounding defeat of the centre-left.

          "We know the prime minister has the support of the Italians and is therefore no 'lame-duck' leader and completely ready to lead the G8," Foreign Minister Franco Frattini told Reuters.

          LEADERSHIP TEST

          But it is questionable what level of leadership Italy or Berlusconi have on the main issues on the agenda in L'Aquila - the financial crisis, climate change and development.

          Sandwiched between G20 summits in London and Pittsburgh, L'Aquila was never likely to produce more than worthy statements on the financial crisis. On climate change, Obama has dictated the agenda rather than Berlusconi. On development, Italy has arguably the worst reputation in the G8 for meeting commitments.

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          The Catholic charity Caritas International accuses Italy of slashing aid to poor countries by 56 percent this year, saying: "This is not a good sign for the G8 summit in Italy."

          Berlusconi himself says he plays a prominent role in world diplomacy, having helped to resolve the Georgian war, negotiate a new NATO-Russia deal and, on climate change, stop what he called a "quixotic" EU initiative last year.

          But his reputation is defined more by his diplomatic gaffes, his relationship with Obama not helped by comments on the president's "suntan" or being quoted calling him "weak" on Iran.

          Berlusconi has his admirers, including Russia's Vladimir Putin, Turkey's Tayyip Erdogan and Israel's Benjamin Netanyahu, who says Berlusconi stands up for "the truth and for decency".

          One aid body hoping achievements outweigh the gaffes at the G8 is ActionAid Italy, whose policy director Luca de Fraia told Reuters: "It's obvious the rumours about Berlusconi's behaviour are possibly damaging what Italy is doing. There is a credibility issue."

          "But Italy is still a big country and we need great initiatives from Berlusconi.

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