Obama, G7 leaders tackle issues of ISIS, Russia sanctions

The hills were alive with the sound of music for President Obama and German Chancellor Angela Merkel, who picnicked on pretzels, sausage and beer, while one unscripted moment during the summit of world leaders resulted in an awkward encounter for Iraqi Prime Minister Haider al-Abadi.

Cheerful crowds in Bavarian garb greeted the president, who apologized for his formal summit attire, reports CBS News chief White House correspondent Major Garrett.

"I have to admit that I forgot to bring my lederhosen, but I'm going to see if I can buy some while I'm here," Mr. Obama said.

Mr. Obama said he wished he could have spent more time eating and drinking -- and it's no wonder. The G7 summit agenda is far less savory.

Russian President Vladimir Putin used to attend these summits -- now he merely casts a menacing shadow. There are other headaches including the simmering debt crisis in Greece and the so-far inconclusive allied fight against ISIS. It's enough to make a U.S. president reach for a beer.

With no chance of increasing European economic sanctions against Russia for its military incursion in Ukraine, the best hope is for leaders here to maintain existing sanctions due to expire next month.

On this, the president won the backing of recently re-elected British Prime Minister David Cameron.

"We think that there can be a peaceful, diplomatic resolution to this problem. But it's going to require that Europe, the United States and the trans-Atlantic partnership, as well as the world, stay vigilant and stay focused," Mr. Obama said.

But with Cameron backing a 2017 referendum on Britain's future in the European Union, Merkel is the key to the Russian sanctions debate. She's also vital to intensifying U.S. efforts to protect global financial markets and the euro from a default on Greek debt.

Before the summit, thousands of protesters clashed with police in a designated protest zone 11 miles away. Hundreds walked to the edge of the summit grounds Sunday and peacefully decried corporate economic dominance and income inequality.

Iraqi Prime Minister Abadi is a guest here and will meet with Mr. Obama on the summit sidelines. Prior to their meeting, there was an awkward moment captured on camera among the leaders. President Obama was sitting on a bench with IMF chief Christine Lagarde and Italian Prime Minister Matteo Renzi, and Abadi sat down next to them, hoping to steal a moment with Mr. Obama. Cameras trained on the leaders showed that the leaders appeared not to see Abadi, who sat by awkwardly - and then stood - before deciding to abandon the endeavor without being acknowledged by any of the three.

Before arriving here, Abadi complained coalition nations were not doing enough to defeat ISIS. The poor performance of Iraqi armed forces have made the U.S. and Europe reluctant to pour more resources into the fight.