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German Chancellor Angela Merkel and US President Barack Obama exchanged warm words of friendship, as they met in in Krun, Sunday, to hold bilateral talks in a Bavarian atmosphere amid beers and people dressed in traditional Bavarian costumes on the sidelines of the G7 summit. Speaking in front of the Bavarian revellers, Obama jokingly expressed his regrets about the summit not coinciding with the Bavarian Oktoberfest, however noted that "there is never a bad day for a beer, and a Weisswurst. And I can't think of a better place to enjoy the enduring friendship between the German and American people." Merkel "once again" expressed her gratitude for the German reunification and emphasised the German-American partnership in all regards. The heads of state of all G7 nations - comprising Canada, France, Germany, Italy, Japan, the UK and the US - will be present for the two-day summit. This year's gathering is estimated to cost just over €130 million ($144 million) according to official figures; while the German Taxpayers Federation believes it may cost the German state some €360 million ($400 million). The G7, formerly known as the G8, excluded Russia from the group of industrialised democracies in March 2014, citing its reunification with Crimea and the conflict in eastern Ukraine as the main reasons.

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