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Many people have grave doubts about the economic and political partnership that gave rise to the single currencyIn the past 10 days, there have been two demonstrations in Athens in support of Greece’s continued membership of the euro and one to urge prime minister Alexis Tsipras and finance minister Yannis Varoufakis not to make concessions in their negotiations with its creditors. Quite a few people have been to all three.This seemingly contradictory approach echoes Syriza’s rhetoric: one of its campaign slogans was “We will change Europe.” But it also reflects public opinion.Related: Creditors plan to ringfence Greek economy if Tsipras refuses to give in Continue reading...

Eurozone finance ministers to plan for economic breakdown and social unrest if Greece does not accept terms for five-month bailout extensionEurozone finance ministers and Greece’s creditors are to draw up emergency measures on Saturday to cope with a default by the debt-ridden country unless the Greek prime minister, Alexis Tsipras, accepts the creditors’ terms for a five-month extension of Athens’ bailout.Related: The Eurogroup meeting - the key weekend for GreeceRelated: Greek debt crisis: the 20 key moments Continue reading...

China’s Shanghai composite index falls more than 7% in mass sell-off after six months of frenetic buying driven by a state clampdown on property investmentChinese stock markets plunged on Friday as investors rushed to sell over fears that frenzied buying in recent months had sent share prices to unsustainable levels.The Shanghai composite index, which reached a post-crash record of 5,166 earlier this month, has since lost nearly 1,000 points, down more than 7% at the last session to 4,193. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 7.9%.

The chancellor talks up the self-employed, but their lives are precarious. The left must wake up to their plightIf booming levels of self-employment are an indicator of a thriving economy, then Greece is the powerhouse of Europe. Just under a third of the population of this austerity-ravaged nation are self-employed, more than double the EU average. Spain is another go-getters’ paradise, it seems: with half an entire generation out of work, self-employment among the young has surged. And then there’s Britain, where around 40% of the rise in jobs since 2010 is down to self-employment. If our rulers are to be believed, here is entrepreneurial flair and British dynamism in action, a vindication of the government’s “long-term economic plan”. But the plight of the self-employed is being ignored. It is time that the left began championing their cause.Related: Self-employment surge across UK hides real story behind upbeat job figuresTories would say he’s a go-getter. 'I’m a single bit of paperwork away from being the focus of all their bile,' he says Continue reading...

When the taxpayer is taking on so much of the cost of in-work benefit, and the employee getting so much of the blame, there’s really only sheer nerve and hypocrisy left to be admired

Leaked diplomatic note reveals prime minister discussed how exit from eurozone might help Greece fix economy, but acknowledged risks involved

Eurozone finance ministers have failed to break the long-running deadlock between Greece and its creditors

A new report argues that credit agencies’ failure to properly account for climate risks could lead to the next global financial crisisCredit rating agencies such as Moody’s Investors Service and Standard & Poor’s are miscalculating the risks of climate change, which could lead to the next big financial crisis, a new report claims.

Finance ministers will meet on Saturday to attempt to thrash out a deal before Monday’s markets openGreece’s creditors have set the country a weekend deadline to avoid default and stay in the eurozone, after more than 24 hours of non-stop Brussels negotiations at the highest level resulted in stalemate.After talks between Athens and its creditors failed to reach an agreement on Thursday, a further meeting of eurozone finance ministers will be held on Saturday in a bid to achieve a breakthrough. With the German chancellor Angela Merkel insisting that a deal must be reached before markets open on Monday morning, Greece is now running out of time to secure an accord and make a €1.6bn payment to the International Monetary Fund (IMF) on Tuesday. Continue reading...

In his article, Matthew d’Ancona (Osborne’s coup: converting Labour to fiscal conservatism, 22 June) accepts the conventional wisdom that Labour’s prodigal spending after 1997 made worse the global financial crisis a decade later. He quotes David Cameron asserting in 2010 that Labour had “maxed out its credit card” and Chuka Umunna’s rueful question: “If government can’t run a surplus in the 15th year of economic expansion, when can it run one?” The fact is that debt-to-GDP ratio fell from 42.5% in 1996-97, the year Labour took power, to 35.9% in 2006-07, the year before the banks failed. Moreover, no government surplus, however large, could have funded the £300bn exposure the UK government was forced to take on to keep the banks open, nor the fact that when, as a direct result of the bank failures, GDP fell 6% in 2009-10 – one of the largest and fastest falls in history – and tax take fell 18%. This was what caused the deficit, not prodigal spending on health, education and welfare, nor Labour’s failure to run a surplus.

Michael Sharp says customers are cautious about spending despite seemingly buoyant economyThe boss of Debenhams has warned that the government’s plans for a further round of deep spending cuts are weighing on consumer confidence despite the apparent health of the economy.Michael Sharp, the retailer’s chief executive, said that although customers are starting to feel better off they are cautious about spending because of the government’s gloomy tone and its decision to stick with plans for £12bn of welfare cuts. Continue reading...

Eurozone finance ministers meeting ends without agreement after fourth diplomatic failure in eight days

The financial crisis in Greece is now nearly six years old. It is a timeline peppered with violent protest and rancorous diplomacy. Now, finally, the end appears in sight. Here are the 20 key momentsGeorge Papandreou’s new socialist government reveals a large gap in Greece’s accounts. He admits the budget deficit will be double the previous government’s estimate (subscription) and will hit 12% of GDP. Fears that Greece could default on its debts grow as the prime minister says the economy is in “intensive care”.

Instead of acceding to the troika’s devastating demands, Syriza should free the country from the trap of the common currency – if the Greek people agreeA few days ago the Greek government submitted a list of proposals hoping to break the deadlock with the “institutions” – the European Commission, the International Monetary Fund and the European Central Bank. The government basically agreed to tough primary surpluses: 1% in 2015 and 2% in 2016. To achieve these targets it proposed to raise VAT on a range of widely consumed goods as well as imposing a host of taxes on enterprises and families of “high” income. It also proposed substantial savings on pensions. The measures added up to roughly €8bn over 2015-16, and would be immediately implemented.The package is certainly deflationary at a moment when the Greek economy is again on the threshold of recession. There is little doubt that it would contribute to output contraction and higher unemployment in 2015-16, particularly as there is little prospect of being offset by an investment programme funded by the EU. It is a major retreat by the government of Syriza.For those who look at the EU without rose-tinted glasses, there is no surprise regarding the attitude of the lenders Continue reading...

Confederation of British Industry survey suggests retail sales will have grown 0.9% in the second quarter of the year, say analystsBritish retailers reported slower sales growth in June but sales remained above average for the time of year, according to an industry survey.City analysts said the figures pointed to healthy retail sales growth of about 0.9% in the second quarter of the year, giving a boost to the economy.Related: Consumers are spending their extra cash away from the high streetRelated: Debenhams boss says austerity plan is denting high street confidence Continue reading...

Where should Sierra Leone’s post-Ebola economic recovery start? Our experts offer 20 steps to getting the country open for businessStart by assessing the underlying causes of the crisis: A thorough post-Ebola needs assessment must be done to outline solutions that will provide jobs and stimulate the economy in the short term but also to identify long-term changes for a recovery to be sustained and inclusive. Dylan Sogie-Thomas, private sector adviser, Office of the President, Freetown, Sierra LeoneRelax the quarantine restrictions: This is the most immediate change that needs to happen. It’s these restrictions not the disease itself which caused the economic problems. Dr Peter Davis, principal, Consilience Global, Oxford, UKRelated: Sierra Leone fieldpost: the first female undertaker for Ebola victimsRelated: Ebola can be transmitted sexually for weeks after recovery - education is crucialRelated: Ebola: how to prevent a lethal legacy for food security Continue reading...

Bitcoin was heralded as the future of money, but it's not yet broken through to the mainstream. Will it ever? Continue reading...

Negotiations in Brussels between Athens and its creditors break down again as optimism over new Syriza proposals evaporatesGruelling negotiations between Greece and its creditors broke up without agreement as lenders warned the country that it must accept more austerity if it is to avoid defaulting on its debts.A third meeting of eurozone finance ministers in less than a week was called to a halt on Wednesday evening amid fresh deadlock over an agreement on greater spending cuts in Athens in exchange for rescue funds.Membership Event: Guardian Newsroom: Can Greece be saved?Related: Alexis Tsipras's homework has been thrown back in his face Continue reading...

Prime minister’s proposals to creditors prove so divisive among MPs that even if deal is accepted by lenders he faces a battle to gain his parliament’s approvalThe internal faultlines in Greece’s governing Syriza party grew wider on Wednesday as its members digested the sheer scale of concessions being demanded to avert a bankruptcy and remain in the eurozone.With the battle lines now firmly drawn between Athens and its creditors, senior Syriza figures took rhetorical potshots at the tactics employed by the debt-stricken country’s lenders as prime minister Alexis Tsipras attended back-to-back talks in Brussels.Related: Alexis Tsipras's homework has been thrown back in his faceMembership Event: Guardian Newsroom: Can Greece be saved? Continue reading...

Angry negotiations in Brussels as Greece’s latest proposals are heavily amended by its creditors Continue reading...

The cost of Gordon Brown’s idea has ballooned unacceptably since the crash, but there are few signs that employers will pay up and relieve the pressureThere is nothing easy about making work pay. Tax credits were a way to boost wages in an era when firms were either unable or unwilling to do the right thing. They were expanded in 2003 by a chancellor, Gordon Brown, who saw them as a necessary response to international pressure on workers’ earnings.It was a prescient move that shielded millions of people from the worst the global economy could throw at them. What Brown could not foresee was that the credits would become a major post-crash safety net, inflating their cost from £9bn to £30bn by 2010. Continue reading...

Judging by the angry red amendments all over Greece’s proposals, its creditors are in no mood whatsoever to compromiseThe red ink told its own story. Greece’s creditors looked at the plan submitted by Alexis Tsipras to end his country’s debt crisis and found it wanting. Like a teacher dealing with an obtuse pupil, the message in the revised document sent back to the Greeks was simple: this is a shoddy piece of work. Do it again.Membership Event: Guardian Newsroom: Can Greece be saved? Continue reading...

Public anger over steep increase in electricity prices spreads beyond the capital as Russia compares demonstrations to Maidan movement in UkraineThousands of Armenians have taken to the streets to protest against electricity rate hikes, marching on the presidential palace and staging all-night sit-ins around the main square of the capital, leading to fears in Moscow of a Ukraine-style popular uprising.The protests in Yerevan, which began on Friday, escalated significantly after police fired water cannons to disperse seated demonstrators on Tuesday morning. By Wednesday evening thousands of people had gathered on Marshal Baghramyan Avenue near the presidential palace, chanting slogans and blocking traffic.Related: Armenia's #ElectricYerevan protests – in picturesRussia ‘Very Closely Monitoring’ Events In Yerevan http://t.co/z47X51XQa0 pic.twitter.com/csR6FIdullSo this is how Armenians do it #ElectricYerevan pic.twitter.com/qBkAvTgEFVBoy offers water to policemen during protests in #Yerevan #Armenia #ElectricYerevan photo by Lilian Galstyan pic.twitter.com/PFjPBXl87CСтавленник Госдепа, компания которого предлагала на 40% поднять цену на электричество в Армении #ElectricYerevan pic.twitter.com/y0BEOWC53l Continue reading...

Syriza’s surprise plan to axe a lower tax rate for Greeks living far from the mainland has raised fears of a ‘tragic’ cost of living effect and a blow to tourismJust outside the medieval walled splendour of Rhodes’s old town, tourists and locals sip iced coffees at the pavement tables of the Gran Caffe restaurant and bar. Its owner, islander Seltsouk Atakli, is laughing and joking with customers. “Keep smiling is what I always say,” he shrugs. “But sometimes a smile is not enough.”As the latest proposed deal to avoid Greece’s bankruptcy threatens to unravel, a row is raging on Rhodes and several other Greek islands over fears that they are being unfairly targeted. To the surprise of locals, one of the government’s proposals to its creditors is to get rid of the special lower VAT rate that applies to a number of Greece’s far-flung islands — not just the famous tourist destinations of Mykonos and Santorini, but scores of little-known smaller islands with ageing and depleting populations.Related: Tsipras summoned to Brussels for emergency talks over Greek bailout dealMembership Event: Guardian Newsroom: Can Greece be saved? Continue reading...

Athens has reached the point where a deal with its creditors may finally be done. At several points in the past two weeks, that didn’t seem likelyAlexis Tsipras, the Greek prime minister, has been summoned to Brussels for emergency talks with Europe’s leading politicians. Can a cash-for-reforms deal be struck? Greece’s eurozone bailout expires next Tuesday, when it is also due to repay €1.6bn (£1.13bn) to the International Monetary Fund.Related: Greek crisis: Bailout deal in doubt as Tsipras slams creditors - live updates“The ball is very much in Greece’s court, There are major differences between us in most key areas. There has been no progress in narrowing these differences recently.”“If the Greek government can’t accept the fact that there are no easy solutions and that the difficult decisions just must be made, it is alone. We can’t help Greece if Greece doesn’t want to help itself ... They have to come with serious proposals.”“I don’t believe that any sensible European bureaucrat or politician will go down that road.”“We need a strong and comprehensive agreement with Greece. And we need it very soon.”“The IMF has criminal responsibility for today’s situation.”Membership Event: Guardian Newsroom: Can Greece be saved?“At the moment we haven’t got the money.”“We can only arrive at a resolution if there is a dialogue. Right now we’re short of a dialogue.”“The game of chicken needs to end and so does the blame game. This is not a game and there is no time for any games.”“The most important thing is that the leaders take full responsibility for the political process to avoid the worst case scenario, which means uncontrollable, chaotic Graccident.”“We are fully aware that there are in the proposal, measures that are hard and which under other circumstances we would never take.” Continue reading...

Apprenticeships need reform not just targets if chasm between sector’s need for skilled workers and its record on training is to be bridgedAbby Shorter is beaming. She has been fitting radiators all morning in a block of new flats in south London and it is going well. “I like to see a project grow and progress. It is very rewarding,” says the 24-year-old.Shorter is a rare thing in construction: a skilled young recruit at the end of a plumbing apprenticeship.This job is all plastic but the next job is all copper. With copper there is more of an art to itConstruction has fragmented: people making the investment are a long, long way from people building the building Continue reading...

Treasurer Joe Hockey announces decision to join A$130bn China-based bank as a foundation member and will travel to Beijing to formally sign Australia upTreasurer Joe Hockey believes joining the Asian Infrastructure Investment Bank will provide “massive new opportunities” for Australia.The treasurer announced the decision to join the A$130bn China-based bank as a foundation member on Wednesday. He will travel to Beijing on Monday to formally sign up and join 56 other countries who are supporting the initiative.Related: In defence of the Asian Infrastructure Investment Bank Continue reading...

Greece’s bailout drama has entered a crucial 48 hours, as the two sides strive for an agreement by Wednesday night

Commission led by AgustaWestland chairman Graham Cole urges government to work better with businesses to win and develop overseas marketsThe government must do more to turn around Britain’s weak export performance, according to a new report calling for cabinet-led action to simplify support to businesses. The report, commissioned by the former shadow chancellor Ed Balls last year, said Britain risks staying in the “export slow lane” unless urgent changes are made to the way the government and business work together on winning and developing new overseas markets.Led by Graham Cole, the chairman of helicopter maker AgustaWestland, the commission took evidence from thousands of companies to come up with an action plan to increase exports. Recommendations include reforms to government bodies dealing with exports, more focus on trade and investment in education, and a one-stop shop that simplifies export support for small and medium-sized businesses. Continue reading...

Here are the exact details of the concessions offered by Athens. Can they end the five-month stalemate and avert a GrexitEurozone finance ministers gather in Brussels on Wednesday evening to discuss proposals from Athens to secure a life-saving €7.2bn (£5.1bn) in financial aid. If these reforms receive ministerial approval and are passed by the national parliament in Athens, Greece will be able to pay a bill of €1.6bn that is owed to the International Monetary Fund by next Tuesday.Taken from the 11-page document submitted by the government of Prime Minister Alexis Tsipras on Monday, these are the proposals:Related: Greece debt crisis: Alexis Tsipras faces Athens backlash over concessions Continue reading...

The price of averting Greece’s exit from the euro, and even the European Union, is further painful austerity – surely a recipe for social turmoilAfter months of fierce negotiations with its creditors, has Athens blinked? Fearful of the domestic reaction to a Greek default and the Grexit that would almost certainly have followed, its radical left, anti-austerity government gave ground and promised more tax increases and spending cuts. Not huge, but it seems almost enough. Eurozone leaders who had gathered, amid deep pessimism and dire warnings, for an emergency summit on Monday night were able to go home on a positive note, raising hopes that a deal extending the Greek bailout will be announced by the end of this week. The IMF, the European Central Bank and the European commission (on behalf of the other eurozone governments) are said to be crunching the numbers in the Syriza proposals. But the need to keep the euro intact seems to have won out for now.Related: Greek crisis: Athens defends planned tax rises - live updatesMembership Event: Guardian Newsroom: Can Greece be saved?Years of austerity loom. More bailout money, but also more hardship and no – or very slow – growth Continue reading...

Zoe Williams is quite right to identify foreign ownership for investment purposes to be one of the root causes of the housing problem, particularly in London and the south-east (Why more houses won’t solve the housing crisis, 22 June). However, a sudden move to an outright ban on such ownership would be too drastic a step to adopt in one go, as it would bring about a step change in the price of properties, and leave those already struggling to make mortgage repayments in the invidious position of negative equity.Also, by focusing solely on the shortage of individual properties, Ms Williams ignores the fact that the key aspect of the problem is the shortage of bedroom capacity both in the rental and owner occupied sector.Zoe Williams’ solution might well be right: ban foreign non-residents from buying in London Continue reading...

Athens has been in no hurry to put military spending on the table, but then neither have its creditors, including its main European arms supplier - GermanyAmong the measures Alexis Tsipras’s government has used to swell the package it tabled in Brussels on Monday is a €200m (£142m) cut in next year’s defence budget. Estimates by the Stockholm International Peace Research Institute (Sipri) for 2014 suggest that would equate to a reduction of around 5% in Greece’s military spending. The proposal raises an intriguing question: why did Tsipras’s Syriza party not offer more swingeing cuts in defence spending at an earlier stage in its tortuous negotiations with Greece’s creditors?It would seem the obvious course of action for a leftwing – arguably far left – movement. It might also have obviated the need to inflict yet more pain on Greece’s long-suffering consumers and workers in the form of the higher VAT and increased social security contributions that also form part of the package. Until now, however, the Tsipras government’s only move in the direction of more modest defence spending has been to put the brakes on a €500m programme for the modernisation of naval support jets. Continue reading...

The troika’s austerity policies have already failed twice, and once again they will only make the severe economic problems that Athens faces worseThe troika plan for the Greek economy has already failed twice, and it will fail for a third time if the economically illiterate plan being foisted on Athens is adopted. Greece requires growth and debt relief, but the proposals currently being discussed provide neither.As usual, the International Monetary Fund, the European commission and the European Central Bank will come up with forecasts showing that the latest set of austerity measures will boost confidence, promote investment, stimulate growth and lead to lower unemployment. As usual, they will be wrong. The recession will deepen and the crisis will return.Related: Greece's day of destiny takes bizarre turn with phantom eurozone summitRelated: Greece is a sideshow. The eurozone has failed, and Germans are its victims too | Aditya Chakrabortty Continue reading...

Vilification of the unemployed, by the government and the media, has a long and shameful heritage – expect the fallacy that welfare creates poverty to persistKindness is cruelty; cruelty is kindness: this is the core belief of compassionate conservatism. If the state makes excessive provision for the poor, it traps them in a culture of dependency, destroying their self-respect, locking them into unemployment. Cuts and coercion are a moral duty, to be pursued with the holy fervour of inquisitors overseeing an auto da fé.This belief persists despite reams of countervailing evidence, showing that severity does nothing to cure the structural causes of unemployment. In Britain it is used to justify a £12bn reduction of a social security system already so harsh that it drives some recipients to suicide. The belief arises from a deep and dearly held fallacy that has persisted for more than 200 years.Related: Osborne to proceed with £12bn welfare cuts despite anti-austerity protestsMacroeconomic policy mistakes were blamed on the victims. Does that sound familiar? Continue reading...

Bank of England and FCA rule bonuses must be subject to a decade-long clawback period for senior staff if any wrongdoing is allegedThe most senior bankers in the City may have to wait 10 years before they can be sure that their bonuses will not be clawed back, as a result of a series of measures intended to rebuild public trust in the financial services industry.However, outlining their proposals on Tuesday, the Bank of England and the Financial Conduct Authority backed down from preventing bankers from buying out bonuses that new recruits forego by leaving their previous employers. The regulators considered the move to stop bankers walking away from their jobs before any problems – such as rigging Libor or foreign exchange markets – were uncovered.Related: Co-operative Bank could face fines from regulators Continue reading...

Bank reveals it will start talks with FCA and Bank of England in July over scale of fines and punishmentThe scandal which enveloped the Co-operative Bank was reawakened on Tuesday when the bank revealed it was facing fines from City regulators over the events that led to its near collapse two years ago.The bank is now just 20% owned by the Co-operative Group of supermarkets and funeral homes after an emergency fundraising was required to plug a £1.5bn shortfall uncovered in 2013. Control passed to hedge funds and other private investors after the rescue.Related: The Co-operative Bank's timeline of troubles Continue reading...

Die Einheitswährung hat die Löhne über den Kontinent hinweg gedrückt und die Arbeiter der führenden Wirtschaft am härtesten getroffen

A classical or troika tragedy? It’s all set up for a lose-lose situation, as no sooner does the ECB and IMF pump in more cash, than the Greek people withdraw it

Investors’ optimism renewed on Asians markets after hopes rise that Greece will reach deal with international lenders

Athens’ fate may soon be determined regardless as despite no breakthrough and another wrong paper fiasco, proposals were welcomed as ‘detailed and credible’Greece’s date with destiny started with its upstart prime minister, Alexis Tsipras, being slapped on the face. It is the customary gesture of endearment from Jean-Claude Juncker, president of the European commission. It means the two men are friends, despite Juncker saying at the weekend he no longer trusted Tsipras.And the day that was supposed to arrest Greece’s collapse into bankruptcy, and prevent the euro’s diminution, ended more than 12 hours later on Monday evening with the bizarre spectacle of a phantom summit.Related: Eurozone creditors raise hopes of Greek bailout dealMembership Event: Guardian Newsroom: Can Greece be saved?Related: Crisis is the new normal for weary Greeks Continue reading...

Creditors view new Greek proposals on pensions and VAT as the most positive move yet in five months of wranglingHopes of a deal that would spare Greece from a looming debt default and possible exit from the single currency rose sharply on Monday after the country’s European partners welcomed proposals from Athens to cut its pension bill and raise extra money from VAT.

Developments in negotiations are an improvement on mutual hostility – but the glaring hole is likely to be the lack of detail on debt reliefThere are three related rules of thumb to apply to Greek bailouts. First, remember agreement does not guarantee a good deal, let alone permanent salvation. Second, in assessing the above, ask whether it is really credible that Greece’s debt-to-GDP ratio will fall to a sustainable level as a result of the plan. Third, bear in mind that financial markets’ euphoria for Greek deals tends to last only about 48 hours.All will be relevant in coming days, now that the action in Brussels is generating a whiff of optimism. Thursday is billed as the moment that six months of negotiations and standoffs will conclude with compromise and agreement. Continue reading...