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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World G20 split over recovery plan AFP - Sunday, June 27 Send IM Story Print G20 split over recovery plan Slideshow: Full Photo Coverage: Business & Economy TORONTO (AFP) - – Leaders from the Group of 20 leading economies struggled to downplay differences over how to keep the global recovery on track Saturday, as they gathered for a key summit in Toronto. Leaders from the United States and Europe clashed on how best to prevent a fresh economic crisis, amid fears the global economy may be teetering on the brink of a double-dip recession. "This summit must be fundamentally about growth," said US Treasury Secretary Timothy Geithner on his arrival in Canada, sending a warning shot to European countries that stress the need for budget cuts over further stimulus. US leaders argue that still-weak European consumer demand will not be enough to prevent recession and that government support is still needed. But Britain, Germany and France -- spooked by Greece's near bankruptcy and a deep eurozone crisis -- have vowed to slash spending nonetheless. Amid the divisions, both sides have stressed a mantra that both growth and cuts are needed, but allowing for different strategies for different countries. After a meeting of G8 leaders on Saturday, French President Nicolas Sarkozy insisted there was no transatlantic spat. "I've heard (US President Barack) Obama say how important it is to support sustainable policies, including for the United States, he has indicated quite clearly the risk posed by deficits and debt." But according to a senior G20 official, behind the scenes there is grave concern that the recovery is being put at risk by rapid cuts. "If it sounds like everyone is rushing to the exit it might cause problems," a senior G20 official told AFP. That concern bubbled to the surface Saturday when Geithner said Europe and Japan must do more to instill confidence that domestic demand is being fueled. "It's fair to say that I don't think that you've seen from those countries yet a set of policies that would, again, give everybody confidence that you're going to see stronger domestic demand growth in those countries coming forward," he said. Meanwhile, a fresh front in the dispute emerged when Brazil warned that Europe's plans would also hurt emerging economies. Brazilian Finance Minister Guido Mantega called for any budget cuts "to be realistic and not inhibit growth." "If the cuts take place in advanced countries it is worse, because instead of stimulating growth they pay more attention to fiscal adjustments, and if they are exporters they will be reforming at our cost." In an attempt to find common ground, Canadian Prime Minister Stephen Harper will urge his G20 counterparts over dinner Saturday to set concrete targets to cut deficits, while embarking on peer reviews of growth-promoting policies. As chair of the G20 summit in Toronto, Harper wants "to encourage these countries to halve their fiscal deficits by 2013 and put the debt-to-GDP ratio on a downward path by 2016," said spokesman Dimitri Soudas. The dinner discussion will be a "scene setter" for more specific G20 talks on Sunday on issues including fiscal consolidation, financial sector reform, international financial institutions reform, and trade and protectionism. 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