Leaders attending the G-20 summit in London Thursday said they were confident they could bridge their differences to unite on a plan to help address the economic crisis.
Barack Obama, Silvio Berlusconi and Dmitry Medvedev share a laugh at the G-20 summit.

There had been concerns that a rift was opening up between the approach being championed by the U.S. and Britain and that favored by France and Germany.

The U.S. and Britain want countries to agree to more economic stimulus ahead of new rules for the banking system.

France and Germany want the rules first -- and tougher ones than initially suggested -- and remain resistant to pumping more money into their economies.

However, European Commission President Jose Manuel Barroso said he was confident about the result of the summit.

"There is a great degree of convergence," he told CNN Thursday morning.

British Business Secretary Peter Mandelson was less upbeat, telling CNN there were some "strains" among the delegates.

"I hope very much that they will be ironed out and we'll come out with agreement at the end of the day." Video Watch more on the G-20 summit »

The leaders say they want to find ways to stabilize financial markets throughout the world and pull the world out of a deepening recession.

They sat at the table Thursday for their first session with several targets in their sights, including tax havens and protectionism.

French Finance Minister Christine Lagarde called for a firm stand on tax havens.
Fact Box
This week's London Summit brings together the leaders of the world's 20 largest economic powers, known as the Group of 20, to discuss the global financial crisis and decide new measures to set the world on a more stable economic footing.

Barroso backed her up.

"We have to be clear that those that want to keep shadow banking systems that are kind of underground (with) clandestine finances have to suffer sanctions, because it's once again a problem of confidence," Barroso said.

"We are for open economies and open markets, but open economies and open markets have to respect some rules." Video Watch European Commission chief on summit »

Britain will push for the same regulation of banks and financial institutions that operate in a "shadow banking world," Mandelson said. He said an international body should oversee the regulation.

Leaders will also be pushing for more fiscal stimulus.

British Prime Minister Gordon Brown is arguing for world leaders to maintain their investments and fiscal stimuli while also giving more money to institutions like the International Monetary Fund, Mandelson said.

The IMF can then deliver those resources to poorer countries and emerging economies, he said. Video Watch more on the protests »

"They are becoming major drivers of growth in the global economy," Mandelson said of those countries. "So we want a strong commitment, a hefty infusion of resources." Video Watch more on the first wives' club »

Brown wants success on five points: restoring growth to emerging market economies; a "clean up" of the global banking system; commitment to encourage growth and help the poor; protectionism rejected and a push for investment in the environment.

Barroso and Mandelson called for concrete commitments on the economy.

Earlier this week French President Nicolas Sarkozy said that if the summit's final communique failed to contain strong language and clear steps, he may even walk out of the meeting.

He and German Chancellor Angela Merkel said Wednesday they could accept debate and negotiation as long as firm steps were taken.
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There were only a few protesters outside the summit when it started Thursday -- a marked difference from the thousands who gathered in central London 24 hours earlier.

Both Obamas played the palace Wednesday, but the star who emerged from their first meeting with Queen Elizabeth was the one dubbed Mighty Michelle by the gaga British tabs.

First Lady Michelle Obama was regally cool, and really tall at 6 feet in low heels next to the 5-foot-4 queen in the living quarters of P. President Obama, characteristically cool, seemed a tad self-conscious in the royal presence.

Michelle Obama skipped the optional curtsy and easily reached out to shake hands with the queen and Prince Philip, while her husband's head bobbed awkwardly during the introductions.

The President, who was fighting off a cold, then appeared to settle on an exaggerated nod in the queen's direction to serve as the optional bow.

It was all in the preparation, President Obama said earlier.

"I'm very much looking forward to meeting" the queen, Obama said, "and as you might imagine, Michelle has been really thinking that through."

In the exchange of gifts, the Obamas gave the queen an engraved iPod loaded with the Broadway show tunes Elizabeth loves and a rare book of songs signed by legendary composer Richard Rodgers. The royals gave the Obamas the usual silver-framed photo of themselves.

The chitchat at the palace between the First Couple and the royal couple predictably went downhill when Philip chimed in with one of his trademark off-key bloopers.

Elizabeth asked about the Obamas' breakfast and worried that her guests might be tired - "the time lag," the queen said. "You're just trying to stay awake," said Philip.

"He's been busy with meetings," Michelle Obama said, and the President added that "I had breakfast with the Prime Minister, I had meetings with the Chinese, the Russians, [Tory leader] David Cameron. And I'm proud to say I did not nod off in one of the meetings."

Philip then asked, "Can you tell the difference between [the countries' leaders]?" The Obamas were too polite, or too puzzled, to respond.

The Obamas and the Windsors then posed for official photos, with the Americans towering over their hosts, before the meeting continued in private and the Obamas were subjected to the traditional British test of a foreigner's mettle - cucumber sandwiches.

Royal-watchers took careful note of the positioning of the queen's purse. It's always with her, and, when pointed at certain angles, it's said to signal to her attendants that she can't wait to escape from the frightful bores in her company.

But the Obamas apparently met with royal approval. The purse rested in the crook of the queen's left arm, which means that she's happy and relaxed with her guests.

Outside the palace, it wasn't quite as smooth. The palace staff asked Obama's Secret Service driver to move the President's armored Cadillac because it was blocking the garden entrance driveway.

After it was moved, Jaguars carrying Prince Charles and other royals pulled up for the queen's reception for leaders attending today's G-20 summit.