G8 SUMMIT IN COLOGNE
*    Summit Time. The annual Heads of State gathering of the G8
countries (Canada, France, Germany, Great Britain, Italy, Japan,
Russia and the United States begins this weekend at Cologne, in
Germany.

The G8 Summit follows a meeting of the EU Council summit,
also in Cologne. Besides German proposals for a European charter of
human rights, the EU leaders have been trying to decide on an
�employment pact�.

Martin Walker of The Guardian reports that now the
controversial German finance minister Oskar Lafontaine � known in
the press as Red Oskar � has resigned from office, the measures
within the �employment pact� have changed considerably.

Walker: �When Lafontaine was finance minister, the pact might
have meant shorter working weeks, EU-wide public works projects
and the kind of Keynesian policies that worry central bankers. But
now that Red Oskar is gone, Britain has managed to get this recast as
an employment and economic reform pact, with deregulated labour
markets and greater job flexibility. The dream of leftwing Europe is
fast turning into the reality of a Blairite Third Way...�

JUBILEE 2000 CAMPAIGN
*    The big issue at this weekend�s G8 summit will be the
question of addressing the massive debt-levels of the least-developed
countries. The Jubilee 2000 campaign � put together by an
international coalition of church and community activists � made a
significant impact on last year�s G8 Summit in Birmingham, and has
worked hard to keep the issue on the agenda again this year. The
campaign is currently running in over 50 countries around the
world, and their goal is to bring tens of thousands of people and
millions of signatures to Cologne on June 19th.

*    At an April 1999 G7 meeting, newly enthused world leaders
gave moving pledges to the cause of debt relief and an end to
poverty. US Vice President Al Gore, and German leader Gerhard
Shroeder were taken aback by the strength of feeling generated by
Jubilee 2000�s campaign and the sheer number of people pressing for
change. They reversed their previous positions on the issue and
seemed to promise some real results. British Finance Minister
Gordon Brown has also been pushing measures to raise the levels of
debt that the G8 countries will be prepared to write off.

But, like the �employment pact� of the recent EU Summit ... the
rhetoric looks likely to fall very short of delivering real results.
Our
Media Watch reports that Gordon Brown has not had much support
in his proposals from British PM Tony Blair. There is also Italian,
German and Japanese opposition to �generous� debt-relief
proposals.

*    Those countries defined by the World Bank and IMF as
"Heavily Indebted Poor Countries" (HIPC) owe $216 billion and,
according to the World Bank and IMF, are not making any payments
on $100 billion of this. Realistically, this $100 billion will never
be
repaid, and Jubilee 2000 says that cancellation of these debts
therefore will cost nothing because there is no expectation of
repayment.

The initial G8 promises were to cancel $25 billion of these
uncollectable debts. The proposals from this weekend�s G8 meeting
in Cologne are expected to raise this to $50 or $70 billion. But none
of
this will go beyond that which is already not being repaid.

The Jubilee 2000 campaign: �The G8 are still offering debt relief
>which is cost-free (because the debt would never be paid anyway).
Such cost-free cancellation is also benefit-free. The G8 offer will
make
no inroads into the debt payments which currently displace
spending on human development. Debt �sustainability� will
continue to be defined as the level of debt service that the poorest
countries can be forced to pay....

�For more than 20 years now, debt reduction has proceeded in
small incremental steps, from �Toronto� terms to �London� terms,
�Naples� terms, �Lyon� terms to the latest HIPC initiative. Just as
these "pigeon-steps" made little progress in dealing with this
problem, so it appears that �Cologne� terms will not provide an exit
>from unpayable debts for the poorest countries.

�The Cologne proposals for debt relief will send few new
children to school, produce very few new hospitals and provide little
hope of economic recovery for the most impoverished, highly
indebted nations and their people.  We will be no closer to the goal
� agreed upon by the G8 governments � of halving the number of
people living in absolute poverty by the year 2015...�

The Jubilee 2000 campaign website is at
http://www.j2000usa.org.

C R E D I T S
-------------------

Editor -- Vivian Hutchinson
Associates - Rodger Smith, Dave Owens and Jo Howard
Secretary - Shirley Vickery

ISSN No. 1172-6695

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