Greece

The Eurozone is now in recession – this, at least, is what is implied by today’s avalanche of dire economic data. Eurostat has not (yet) made this calculation; but Capital Economics has. Take into account the relative size of the Eurozone economies who have declared figures and it suggests a fall of 0.1 per cent for Q3 which, which, coming after the contraction of 0.2 per cent in Q2, would meet the test for recession (two consecutive quarters of negative growth). So, like Britain, a double-dip recession. Greece and Portugal are still in meltdown. The Germans are doing okay, with growth of 0.2 per cent for Q3. This is mainly

Since leaving the Cabinet, Liam Fox has acted as a cross between a scout and an out-rider for various of his former Conservative Cabinet colleagues. In a speech in Oslo tomorrow, he’ll argue that the only way to deal with the Euro crisis is for all of those countries who cannot realistically cope with the demands of the single currency to leave in one go. Otherwise, he argues the markets will simply pick the weaker countries off one by one. Fox is certainly right that if Greece left, or was forced out, of the single currency, Spain and Italy would then find themselves under intense—and, probably intolerable—market pressure. But I

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