Toronto is the host of next week’s G20 Summit, for which both President Obama and the EU have published open letters to the group leaders.

In an open letter published prior to next week’s G20 summit, 26-27 June, the EU has recommended that members plan a coordinated end to their economic support packages “to ensure sustainable public finances”.

The letter, from European Council President Herman Van Rompuy and European Commission President Manuel Barroso, also suggested that fiscal consolidation strategies should be in line with growth strategies – outlined in the Europe 2020 plan.

The letter stated: “Given the major risks that late exit from extraordinary fiscal stimulus would entail for public accounts’ sustainability, at the Toronto summit, the G20 should agree on a coordinated and differentiated exit strategy to ensure sustainable public finances.

“Even though the timing, sequencing and scope of exit measures have to be tailored to conditions prevailing in the individual G20 members, coordination between governments can help to take into account possible spill-over effects.”

US President Obama has also published his open letter to the G20 leaders, offering his support to the global financial recovery but strongly warning about withdrawing stimulus packages prematurely. Many countries around the world are already implementing austerity measures, something that the US has not yet done.

The President said in his letter: “It is critical that the timing and pace of consolidation in each economy suit the needs of the global economy, the momentum of private sector demand, and national circumstances.

“We must be flexible in adjusting the pace of consolidation and learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in new economic hardships and recession.”

Trade was another issue that was addressed in the EU letter, identified as a pathway to strong and sustainable growth. Members were asked to extend their commitment to “avoid introducing new trade distortive measures” and to roll-back any measures already in place.

Priorities for the G20 Toronto Summit include restoring balance to public finances, reforming the global financial system, opening up trade and investment, and strengthening international financial establishments.

G20 members account for 90% of global output, 80% of world trade and two-thirds of the world’s population.