Greece crisis – highlights of G7 summit; US likely to insist EU to address issues meticulously

It is going to be a quite day for new economic data with no releases of note. The G7 finance ministers and governors of central banks begin a three day summit today in Germany but little concrete is expected.

The Vital Elements on G7 Summit:

Deflation: Some of the apprehensions about global deflation prevalent a few months ago have started to dissipate but participants are still likely to discuss what further can be done to stimulate global economic growth.

Interest rate: The potential impact of a US interest rate rise later this year is also likely to be discussed and officials from other countries will no doubt be asking their euro area counterparts for an update on the Greece negotiations.

Greece Turmoil: Although the Greece matter is not formally on the agenda, the country's financing and debt problems are likely to be discussed on the sidelines of the meeting, two officials mentioned as the country running short of cash to pay public sector salaries, pensions and debt obligations.

Greece does not have the money to pay 300 million Euros to the IMF on 5^th June.