President Bush and German Chancellor Angela Merkel have exchanged views on climate change and other pressing issues on the sidelines of a meeting of the Group of Eight economic powers in Japan.

Merkel said she was “very satisfied” with progress being made on trying to reach common ground.

She favors strict targets on reducing greenhouse-gas emissions that are blamed for global warming. Bush has expressed skepticism toward any effort to set targets unless the fast-growing economies of China and India sign on.

Merkel told reporters early Tuesday in Toyako, Japan, that the two had “a very interesting, a very extensive exchange of views” on climate change and fast-rising food and energy prices.