Canadian PM, Germany's Merkel in talks

OTTAWA, Aug. 16 (UPI) -- Canadian Prime Minister Stephen Harper hosted German Chancellor Angela Merkel for a second and final day Thursday for talks on the euro crisis and trade.

After her arrival in Canada Wednesday afternoon, Merkel was taken to Harper's summer retreat in Quebec, across the Ottawa River from the capital, where they had dinner and private talks without any aides present, the Canadian Broadcasting Corp. said.

More private talks were scheduled in Ottawa Thursday, along with some ceremonies, the prime minister's office said.

Analysts told the CBC Harper's top-priority item was expanding trade with Europe, where Merkel carries considerable influence in the European Union.

He verified the speculation Monday while speaking to reporters, the National Post said.

"I think it is important at this time in the world economy -- all the difficulties we face and particularly Europe faces -- I think it's important that Canada and the European Union drive these negotiations to conclusion," Harper said.

Merkel was reportedly more interested in resolving Europe's economic crisis. Earlier this year, Canadian Finance Minister Jim Flaherty flatly said Canada would not contribute to any bailout package proposed by the European Union or International Monetary Fund.

Merkel was scheduled to stop in Halifax, Nova Scotia, to sign a research-sharing memorandum later Thursday before returning to Berlin, her schedule shows.