Summit talks between G8 leaders reached “a lot of mutual understanding” on how to sustain the global economy in summit talks here, German Chancellor Angela Merkel said.

The Group of Eight were meeting in Huntsville, Ontario, north of Toronto yesterday. The G20 meeting starts today (June 26).

“I have made it clear that we need sustainable growth and that growth and intelligent austerity measures don’t have to be contradictions,” Merkel was quoted as saying in our sister publication, the Gulf Daily News.

“The discussion was not controversial, there was a lot of mutual understanding.”

The US has expressed concern over European moves, led by Germany, to rein in spending in face of ballooning deficits.

Instead, Washington has argued for continued measures to spur economic growth.

But Merkel said: “The US did not try to emphasise the differences. We all stated that we feel responsible for modern and sustainable growth. We have made our point clear that
Germany intends to continue its way.”

A US regulatory reform deal has put banking rules high on a crowded agenda as world leaders gathered in Canada to figure out how best to secure a shaky economic recovery.

US President Barack Obama, heading to Canada just hours after legislators agreed on a regulatory overhaul, prodded his G20 colleagues to make good on their own promises to clamp down on the risky behaviour by banks blamed for unleashing the worst financial crisis in 80 years.

“This week in Toronto I hope we can build on this progress by coordinating our efforts to promote economic growth, pursue financial reform, and to strengthen the global economy,” he said. – TradeArabia News Service