Greece

Greek Prime Minister Antonis Samaras is looking for a breather this morning as he meets Jean-Claude Juncker, head of the eurozone finance ministers, to discuss Greece’s ability to make the €11.5 billion of cuts in order to secure its next tranche of bailout cash. Samaras has told German newspaper Bild that his country needs ‘breathing space’ and is expected to try to persuade Juncker to give him an extra two years to make the necessary reforms, arguing that the Greek elections meant time for this was lost. Juncker may well refuse to offer leeway on this. Meanwhile German politicians continue to talk tough on the matter: Dr Michael Fuchs was

Is David Cameron’s greatest threat sitting inside his own party? In this week’s cover feature, James Forsyth examines the radical new mood that is taking shape among some of the 2010 intake of Tory MPs. On our View from 22 podcast this week, Liz Truss MP, a member of the ‘Free Enterprise’ group, gave us a flavour of her views on how the government should be improving the economy ‘When we joined Parliament, we’d already seen the financial crisis from the outside. We were questioning the basis on Europe and the US was being run — increasing debts at the expense of a productive and competitive economy. What we wanted

‘I think we are at a make or break place in Europe,’ said former Greek Prime Minister George Papandreou on the Andrew Marr Show. Europe is holding its breath for the results of today’s election, which, should the radical leftists Syriza win, threatens to open a new chapter in the euro’s unhappy history. Germany remains adamant that Greek cannot renege on its bailout deal. But rumours that Germany would welcome Greece’s exit persist; indeed, the Sunday Times reports (£) that the European Union is, collectively, preparing emergency aid packages for Athens, should the country withdraw. These preparations are the sort of coherent and complete action that the euro-crisis has demanded.

A couple of weeks ago, James revealed that the promise of an EU referendum is almost certain to feature in the 2015 Tory manifesto. But might we actually have one before then? If the speculation by ‘senior government sources’ in today’s Times is to be believed, we might indeed. According to No.10 and the Foreign Office, a Greek exit from the euro — which could follow soon after the country’s new round of elections on 17 June — would necessitate a rewriting of EU treaties. And that, the Times says, ‘would trigger “aggressive” demands by Tory MPs to hold a referendum on Britain’s EU membership.’ Meanwhile, over on the other

Fred Michel’s testimony this morning at the Leveson Inquiry was embarrassing but not devastating. The texts between him and Jeremy Hunt are cringe-worthy but my read is that the Culture Secretary is not in a weaker position than he was this morning. More important for Hunt’s survival prospect is the appearance of his former spad Adam Smith this afternoon. The question is, did Hunt not know of the extent of contact between Smith and Michel? Everything going on at Leveson, though, is a sideshow compared to the economic news and the storm brewing on the continent. On that note, it does seem odd that Nick Clegg is suggesting that the

The Eurozone is a kind of lunacy if you look at it as an economic project. But this isn’t about economics, or rationality — it’s about emotion, as the leader in today’s Telegraph says. The Brits and Americans often fail to understand this fully because we judge a currency union in terms of its economic merits. But many European nations see it as part of another, wider, agenda. For the Spanish and Portuguese it’s about not going back to dictatorship. For Greece it’s about being Western rather than Eastern (and not being run by the military). As John O’Sullivan wrote for The Spectator recently, Eastern European states still — even

I doubt that Angela Merkel is looking forward to the G8 summit very much. It will mostly consist of the other world leaders telling her to give ground on austerity. But I suspect that Merkel won’t budge much, if at all. She clearly believes that the Greeks can be whipped into line by telling them that the election is really a referendum on euro membership. Hence both her suggestion of a simultaneous referendum on election-day and her backing for the European Central Bank cutting off support to Greek banks which shows that while there’s no formal mechanism for ejecting a country from the single currency there are ways of doing