Greeks crisis looms over G7 in Dresden

(AGI) Dresden, May 28 - The issue of Greece is not on theagenda and the German presidency is doing everything possibleto avoid it being seen as the main topic under discussion, butit is the real elephant in the room at the G7 financial summitin Dresden. The issue, government sources said, will in allprobability be looked at on Saturday during the working sessiondevoted to geopolitical risks, but on Friday the Greek crisiswas already echoing around the corridors of Hotel Kempinskiwhere the finance ministers and bankers of the world's leadingeconomies were due to

(AGI) Dresden, May 28 - The issue of Greece is not on theagenda and the German presidency is doing everything possibleto avoid it being seen as the main topic under discussion, butit is the real elephant in the room at the G7 financial summitin Dresden. The issue, government sources said, will in allprobability be looked at on Saturday during the working sessiondevoted to geopolitical risks, but on Friday the Greek crisiswas already echoing around the corridors of Hotel Kempinskiwhere the finance ministers and bankers of the world's leadingeconomies were due to meet in the afternoon. Berlin hascontinued to insist that the G7 is not the forum to address theissue, but in the morning IMF chief Cristine Lagarde spelledout that an agreement with Athens is still a long way off. Shereturned to the theme much more clearly in the afternoon in aninterview with the newspaper Frankfurter Allgemeine Zeitung. MsLagarde later raised the bar, saying that Greece's exit fromthe euro was a possibility but this would not necessarily leadto the end of the single currency. On the EU front,Commissioner for Economic Affairs, Pierre Moscovivici, usedmore reassuring language, stressing that an agreement withAthens is "three-quarters of the way" there, but adding that"there is still a lot to do". However, Secretary General ofthe Organisation for Economic Co-operation and Development(OECD), Anguel Gurria, was more optimistic, believing in thepolitical will to arrive at an agreement. "When all thoseparticipating in negotiations want to get a result that resultis achieved in the end," he told Italian reporters during abreak. According to Mr Gurria we should have confidence in theGreek government that took office a few months ago and is notyet fully acquainted with all the technical and very complexissues of the negotiations. (AGI) . .