Germany’s Chancellor has stressed that Europe’s leaders are heading the right way with right attitude, while at being talks with the US, about how to strengthen delicate monetary development. Angela Merkel informed journalists at the G8 summit in Canada that there was mutual understanding with President, Barack Obama over the shortage reduction plans.

The G8 leaders will be joined later by China and other up-coming economic powers for the G20 summit.

Dominating the program are the international fiscal situation and banking reform.

The twin summits, which are being held in and near Toronto, have come at a time, when the world's leading economies are divided over whether to carry on with the practice of austerity measures to slash deficits, or keep up the public spending to arouse financial growth.

President Obama is apprehensive regarding that a succession of deep budget cuts announced by the European nations might postpone global recuperation.

But, on Friday, after an early conference of the G8 - US, Canada, Germany, UK, France, Italy, Russia, Japan; Mrs. Merkel said there was much common opinion.

Earlier on Friday, Mr. Obama asked the G20 to pull together to encourage financial expansion, saying that world economies are inextricably associated with each other.