Merkel Makes Her Mark

Following yesterday's compromise deal on climate change, there's been further agreement between the leaders at the G8 summit in Germany. This time it's Africa that's going to benefit, to the tune of 30 billion quid to fight AIDS, malaria and TB. It all doesn't go far enough of course, but then the nature of these problems means it's never possible to go far enough. The fact the leaders have decided to go as far as they have is all down to the summit's host.

This week's winner has undoubtedly been Chancellor Angela Merkel. While Putin and Bush may have taken all the headlines in the lead-up to the summit, as they indulged themselves in a bit of old-fashioned Cold War nostalgia, she's the one who's focused on trying to get something reasonably solid out of the talks. Much as Tony Blair did at Gleneagles two years ago, she's acted as the G8's conscience, and made sure of agreements of sorts on the important issues.

Chancellor Merkel's one of the newer G8 leaders, and with the even-fresher faced Nicolas Sarkozy and Gordon Brown she'll be at the centre of shaping the way Europe and indeed the world works in the next few years. With Putin and Bush both on their way out in the next 18 months, that trio has an opportunity to become a driving force behind genuine progress on things like aid and tackling climate change. And for all the promises Ms Merkel has secured this week, it'll be results that count.

Putin's Power Play

It's been a fair old while since Russia had the kind of attention it's getting at the G8 summit, which is beginning in Germany. Which is just the way President Putin likes it. Although the Kremlin's rowing back slightly on his comments about pointing his missiles at Europe in protest at America's planned missile defence shield, there's no doubt what he said has had the desired effect. That is, people around the world all listened.

Seven years after taking power in a Russia that had suffered years of embarrassments abroad and economic woes at home, Putin's just about finished turning things round, and not in the way western countries wanted. The growing importance of his country's energy reserves means he seems to have more and more of the big cards in his hand whenever world leaders get together. And he's playing them increasingly forcefully every time. Whether it's missiles, energy or Litvinenko, the answer from the Kremlin always seems to be "Niet." After cosying up to the US at every opportunity during the Yeltsin era, Putin's Russia is now a challenger not just to the US, but to everyone else as well.

Although Mr Putin probably won't be able to avoid leaving office next year, as the Russian constitution demands, he certainly doesn't look neutered like those other lame duck leaders, Messrs Bush and Blair. That much is obvious from the way their individual face time with Putin seems to be the most important meeting either Bush or Blair will have at the summit. The fact the Kremlin feels able to put the meeting with Blair back by a day, to Friday, shows towards whom the balance of international power is edging.