ELMAU CASTLE, Germany: Flaring tensions between Greece and its creditors were set to dominate a G7 summit in Germany on Sunday, amid fears the debt-wracked country could crash out of the euro and rock the world economy.

German Chancellor Angela Merkel, a champion of tough eurozone reform and austerity, will host the other leaders of the Group of Seven industrialized democracies—the United States, Britain, France, Italy, Canada and Japan.

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