G7 finance ministers and central bankers are heading to Germany to discuss ways to revive stuttering global growth. As Joel Flynn reports the threat of a Greek default, rising oil prices and bond market turmoil are all fuelling investor nervousness.
Rarely have the fortunes of such a small country wrapped global economic interest to quite this extent. Although it's not officially on the agenda at the meeting of G7 finance ministers, Greece will be one of the most pressing concerns. It's likely to default on debt payments if it can't agree a bailout deal by next week. And the impact of that goes way beyond the euro zone. Christian Schulz is from Berenberg Bank. SOUNDBITE: Berenberg Bank Economist, Christian Schulz, saying (English): "If you look at Greece, which is potentially having a little bit of downward impact on the euro, of course ministers from other countries will be saying to the Europeans that there are risks involved not just for Europe itself but also for the global economy, if Greece leaves and exits the euro zone." U.S. Treasury Secretary Jack Lew stopped off in the UK for a university lecture ahead of the meeting. Americans are also worried about the impact of Britain voting on EU membership. The high stakes games being played out in Europe causing consternation across the pond. SOUNDBITE: U.S. Treasury Secretary, Jack Lew, saying (English): "What I worry most about is the accident. You have moments that come up with all too much frequency where just a miscalculation could lead to the crisis that would be potentially very damaging." Oil prices, the slowdown in China and turmoil in the bond markets are also on the agenda. As is the timing of an interest rate rise in the U.S. Gemma Godfrey is from Brooks MacDonald. SOUNDBITE: Brooks MacDonald Asset Management Head of Investment Strategy, Gemma Godfrey, saying (English): "We're looking towards to the end of the third quarter, beginning of the fourth quarter of this year, and one of the biggest impacts could be on emerging markets, as people move their capital more domestically because they see that rates are rising there, and that's why we think emerging markets are potentially vulnerable going forward." But global growth can't be fuelled by central bank policies - many are hoping for more structural reform from European and emerging market governments. There'll be no firm commitments from the meeting in Dresden - but it is expected to lay the groundwork for a meeting of G7 leaders next month.