FACTBOX: Themes and scenarios for G8 summit in Italy

(Reuters) - Leaders from the Group of Eight industrial nations and major developing nations will hold talks from July 8-10 in the central Italian city of L'Aquila.

The talks are expected to focus on the state of the world economy, financial regulation, climate change and trade and development. Following are the main themes that will be discussed and possible outcomes from the meeting.

FINANCIAL CRISIS

G8 talks will open with a discussion of the financial crisis, with the first day's statement likely to focus on signs of stabilization in major economies and aiming to send a positive message on the global economic outlook. Talks will also broach possible exit strategies from the downturn, though G8 leaders are likely to emphasize that it is too early yet to wind down policy stimulus.

Italy is pushing for the adoption of an agreement on "global standards" of regulation: an international charter covering everything from executive pay, corporate governance, banking, taxation, trade, corruption and regulation of financial markets.

Critics of the 70-page "Lecce Framework" -- named after the Italian city where it was drafted by finance ministers last month -- say it is a compilation of existing guidelines, too broad to be effective and toothless because its lacks penalties.

While the G8 is unlikely to adopt a new global charter officially, it may recommend a document to the forthcoming G20 summit in Pittsburgh in September.

Germany is pushing the G8 for tougher regulation, accusing Britain in particular of opposing moves for tighter rules. Chancellor Angela Merkel is proposing a broader "charter for sustainable economic development."

RESERVE CURRENCY

China has requested discussion of the position of the dollar as the world's global reserve currency when the G8 broadens its talks to include the G5 emerging economies [ID:nL1293071], but some other members appear to be playing down this issue.

Monetary officials in China, the largest holder of U.S. Treasury debt which has perhaps 70 percent of its official currency reserves in dollars, have expressed interest in using the IMF's Special Drawing Rights (SDRs) as a super-sovereign currency. Deputy Foreign Minister Je Yafei said it would be normal if diversification of the currency system was discussed at next week's summit.

However, officials from G8 and emerging economies suggest there will be no direct comment on the dollar or the issue of a global reserve currency in the summit's official statements.

ENVIRONMENT

With eyes on December's U.N. climate change summit in December in Copenhagen, due to produce a replacement for the 1997 Kyoto pact, leaders will try to narrow differences over the cuts in carbon emissions required by developed and emerging economies, and funding for low carbon technology.

G8 leaders are expected to agree to a goal to limit global warming to no more than 2 degrees Celsius, and this could even be extended to the 17-member Major Economies Forum [ID:nL1873147] which meets on the second day of the summit.

G8 nations are also likely to harden a previous "vision" of halving carbon emissions by 2050, while the MEF could also sign up to this goal for the first time. If adopted, this would mark significant progress toward a new U.N. climate pact in December.