As the world leaders arrive in Toronto for G20, discussions over how to deal with the global economic crisis, gets them divided.

While, the US looks to uphold stimulus spending to promote growth, the European delegates at the Summit said that they want to focus on asceticism measures to cut the deficits.

After members of the G8 group held a separate meeting in Hunstville, 220km north, the Delegates from the G20 group of the developed and budding nations will meet on Toronto on Saturday.

Herman Van Rompuy, the President of the European Union said that the key themes of the G8 talks were ‘growth and confidence’.

"The global recovery is progressing better than previously envisioned, although at different speeds. Restoring confidence in budgetary policies goes hand in hand with growth strategies”, he added.

Each nation at the summit needed to find the accurate policy mix to reduce Government budgets and sustain growth, advised Timothy Geithner, the US Treasury Secretary.

Much of the discussions are anticipated to focus on the policies needed to diminish budgets and assist global growth.

Jose Manuel Barroso, the President of the European Commission, said there was no longer the likelihood for Europe to fritter and run-up deficits, rather investments and confidence building was required.

Despite the US fears that reducing spending too rapidly could put the global recovery under threat, Britain, France and Spain, among other European nations, push forward with the budget cuts.