Protesters took to the streets of London to march against the government’s spending cuts and austerity measures Continue reading...

Three years ago the country faced an Athens-style bailout. Now the shadow of collapse has lifted - but the young and jobless are still strugglingDaniel Roman is feeling upbeat. Six months ago, the 38-year-old sommelier opened a small wine shop in the Mercado de la Cebada, a covered market in Madrid’s trendy La Latina neighbourhood. “I’m confident,” he says, as he serves two elderly customers from the counter. “Opening here was the natural next step for me. I’ve always wanted to build something of my own.”The statistics would indicate he has every reason to feel cheerful. Spain’s economy appears to be emerging at full throttle from one of the longest and deepest recessions it has ever suffered. An IMF report said growth by the end of this year will be a startling 3.1%, leading to job creation, and, in theory at least, a better standard of living for Spaniards who have suffered crippling levels of unemployment and decline over the last seven years.Looking back, 2006 and 2007 seem like a mirage in the desert Continue reading...

Minister of state says Athens will improve its current proposals to win a fresh bailout and the end deadlock before the end of June deadlineGreece is to improve its offer to its international creditors in a new attempt to find agreement before a deadline at the end of June which could force the country into default and out of the eurozone.Membership Event: Guardian Newsroom: Should Greece leave the Euro? Continue reading...

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The president of the European Council, Donald Tusk, speaks out in a new video and urges the Greek authorities to accept what he believes is a 'good offer' from Europe or risk defaulting on their loans. Greece has been thrown a lifeline in the form of extra European Central Bank funding, but the money is only expected to last until the emergency summit scheduled for Monday Continue reading...

In his comments on the debate about the plans for legislation to enforce budget surpluses, Philip Booth (Letters, 16 June) takes the opportunity to return to the debate about the crucial 1981 budget. He reiterates the common claim that the 364 economists who criticised the budget were wrong because growth returned to the economy soon after. What he doesn’t say is that the reason growth was resumed was because of a previous easing of monetary policy, which helped correct the disastrous appreciation of sterling which was the main cause of the early 1980s recession. This easing of monetary policy was quite at odds with the government’s medium term financial strategy, and showed that claims that “the lady’s not for turning” were empty rhetoric.This whole episode was one of the most disastrous in postwar economic policy. As Mrs Thatcher’s key economic adviser, John Hoskyns, later wrote, the government had “accidentally engineered” a major recession and “done the economy a great deal of damage by mistake”. George Osborne’s policies seem likely to repeat this process.

Kiev says it will stop servicing its $23bn debt unless progress is made in restructuring talks with foreign bondholders soonUkraine has offered an updated debt restructuring proposal to creditors, its finance minister says, warning that Kiev would halt debt payments if bondholders did not make use of this last chance to clinch a deal in coming talks.Ukraine is negotiating with foreign bondholders to restructure $23bn (£14.5bn) of debt, but talks have soured over a disagreement on the necessity of a writedown on the principal of the bonds.Related: 'A true friend': Ukraine president asks Tony Blair to take on advisory role Continue reading...

It’s close to crunch time for Greece and its creditors. At issue is how to close €2bn gap in government budget after Athens refused to make further spending cutsThe standoff between the EU commission and Greece must be resolved by the end of the month. Either Brussels releases the last €7.2bn (£5.14bn) of bailout cash due to Athens under its existing rescue deal or Greece goes bust. Here are the possible scenarios to how this may play out:Membership Event: Guardian Newsroom: Should Greece leave the Euro? Continue reading...

European Central Bank has agreed to provide more support to keep Greek banks operating until crucial eurozone meetings on Monday

Wall Street firm appointed after George Osborne’s announcement of plan to sell shares in bailed-out Royal Bank of Scotland at a lossGoldman Sachs is to play a key role in selling off the taxpayer stakes in Royal Bank of Scotland and Lloyds Banking Group.The Wall Street bank is replacing US rival JP Morgan in advising UK Financial Investments, the body which looks after the taxpayer stakes in the bailed-out banks.Related: The Guardian view on the RBS sell-off: a bad deal all round | Editorial Continue reading...

The EU authorities are trampling over the will of the people as they push for a solution to Greece’s economic crisis. It seems democracy itself is on trialI am not a natural Syriza voter, but the words and deeds of the EU towards Greece are enough to provoke me to sympathise with the Greek people and their government over austerity.Greece has lost a quarter of its national income and output since 2007. That means, on average, a Greek citizen who was earning €10,000 (£7,000) in 2007 is today, after wage cuts, on €7,500 (£5,300). This is a crude average, so in practice many have suffered larger cuts as they have lost their jobs, or were on higher public sector pay, which has been cut more.If an economic policy creates mass unemployment and crushes living standards it should be changedRelated: Greek crisis: ECB provides more emergency help as Tusk warns "no more games" - liveMembership Event: Guardian Newsroom: Should Greece leave the Euro? Continue reading...

As the eurozone crisis teeters towards a climax, some Greeks still hope for a radical solution, others for a deal of any kind, but all are fearful and weary“It’s all right, they can go ahead and do it now,” said Vassili Michaelides, a systems analyst, turning away from the National Bank cashpoint on Syntagma Square in central Athens with a clutch of €20 notes.“They haven’t gone down on their knees and signed the first piece of paper they were given, like all the others. But it’s time now to bring back a deal. Because honestly, nobody here can take this for much longer.” Continue reading...

Alexis Tsipras in Russia dismisses criticism that he should be in Brussels solving debt standoff: ‘We are ready to go to new seas to reach new safe ports’Alexis Tsipras, the Greek prime minister, has made a broad overture to Russia as he seeks a way out of his country’s debt and currency impasse, telling Vladimir Putin that Greece wants new partners to help it out of the crisis.In a speech delivered in front of Putin in Russia, Tsipras said Moscow was one of Greece’s most important partners, and dismissed critics who wondered why he was in St Petersburg and not in Brussels trying to secure an urgent deal with European creditors.Related: Greek crisis: ECB provides more emergency help to avert bank run - reportsMembership Event: Guardian Newsroom: Should Greece leave the Euro? Continue reading...

He is the rising star of the battle to be the Democratic nominee for president. But who is the real Bernie Sanders? His close friends and family shed new light on what is motivating the 73-year-old senator, while never-before-seen documents from his first foray into politics – as a Vermont mayor – reveal activist roots that were 30 years ahead of their timeThe diplomatic overture was dispatched to Hu Yaobang, chairman of the Chinese Communist party, on 29 October 1981. A near-identical letter was sent to the Kremlin, for the attention of Leonid Brezhnev, general secretary of the Communist party of the Soviet Union.“Like an unconscious and uncontrollable force, our planet appears to be drifting toward self-destruction,” the newly installed socialist leader of somewhere called Burlington wrote. He urged them “in the strongest possible way” to disarm militarily and begin immediate negotiations with other world leaders.

Fears that Greek banks and ATMs may shut prompt warnings from travel advisersHolidaymakers heading to Greece over the next few days are being advised to take plenty of cash with them amid fears the country’s cash machines could be shut down if a resolution to the crisis is not found.Related: Greek crisis: ECB meeting to decide on €3.5bn emergency fundingRelated: Greek crisis: ECB deciding on new lifeline for Greece - live updates Continue reading...

End Austerity Now, a demonstration organised by The People’s Assembly, is taking place in London this weekend. Taking part? Share your photos and stories

The chancellor, George Osborne, urges Greece on Friday to strike a deal with its international creditors in loans-for-reforms talks, adding that the UK is hoping for the best but preparing for the worst. Speaking as he arrives for a meeting of the European Union's finance ministers in Luxembourg on Friday, Osborne says Britain has taken measures to increase economic security in case Greece exits the eurozone Continue reading...

Thousands of Greeks gather in Athens in support of EU membership as eurozone ministers fail to reach a deal and announce an emergency meeting. The demonstration was held one day after a rival protest by supporters of the ruling Syriza party, who are urging the government to reject creditor demands for pension cuts and VAT hikes in exchange for vital financial support. Default and capital flight could lead to Greece's exit from the eurozone Continue reading...

George Osborne still expected to press ahead with steep cuts to welfare budgets and WhitehallGeorge Osborne is on track to cut the annual budget deficit by more than previously forecast after a block on spending and a jump in tax receipts in May.The Office for National Statistics said government borrowing last month dropped to £10.1bn, the lowest since 2007, from £12.3bn in May last year – an 18% fall. The total stock of debt, excluding public sector banks, was £1.5tn or 80.8% of GDP, an increase of £83.2bn compared with May 2014.

Financial exposure to the risk of Greece defaulting on its €320bn debt affects eurozone member states and foreign banks. How will it all play out?Greek crisis - live updatesGreece says it will run out of money at the end of the month if a deal with its creditors the European commission, the European Central Bank and the International Monetary Fund cannot be reached.Related: Greek crisis: Emergency meetings as bank fears grow - live updatesRelated: Eurozone talks end without deal as Greek proposals rejectedBarclays: Official exposure to Greece in EMU by country and type pic.twitter.com/5QKkrsWr77 Continue reading...

Emergency summit of leaders called for Monday as fears rise for Greek financial system if a deal cannot be reachedGreece is facing a full-blown banking crisis after a meeting of eurozone finance ministers broke down in acrimony and recrimination on Thursday evening, bringing the prospect of Greek exit from the eurozone a step nearer.Related: Eurozone talks end without deal as Greek proposals rejected Continue reading...

The president of the Eurogroup Jeroen Dijsselblom appeals to the Greek authorities to submit further proposals in the hope of a financial deal, after previous measures were judged to be lacking in 'credibility and seriousness'. Greece must reach a new deal with its creditors by 30 June or risk defaulting on its debts, but talks broke up early on Thursday with no agreement in sight Continue reading...

Oxford-educated economist is well qualified as the point man in negotiations between Athens and international creditorsFor those who thought the battle to save Greece was all about a rag tag bunch of leftists finally seeing the light, Euclid Tsakalotos has made many think again.At the eleventh hour, the Oxford-educated economist has emerged as Athens’ secret weapon, sounding every inch the man he was raised to be: a public school member of the British establishment. “It is rather surprising to the other side,” he says, the Greek parliament framed in the window of his eighth floor office. “But so, too, is the fact that I understand their economic arguments.” Phlegmatic, professorial, mild-mannered, Tsakalotos has spent the best part of 30 years in the ivory towers of Britain and Greece “engaging critically” with neoclassical economic thinking.Related: Eurozone talks end without deal as Greek proposals rejected Continue reading...

Finance ministers have given a “strong signal” to Greece to engage seriously, as crisis escalates again

The Greek economy would be better off outside the euro, say some, but devaluation may only work in countries with thriving trading partnersThere is a beguiling argument that life for Greece outside the eurozone wouldn’t be so bad. Sure, the immediate economic pain would be severe, but a new drachma, coupled with debt default, might deliver a whoosh of relief in time. Isn’t history full of countries that have devalued their way out of crisis by generating an export boom? Didn’t Argentina recover that way when it abandoned its currency peg to the US dollar in 2002?Taken to its logical extreme, this argument says the real threat to the survival of the eurozone is that Greece leaves and prospers. Come the next crisis, other strugglers might opt to quit, dumping their debts as they go. Continue reading...

What would the effects be of a Grexit and is it the worst scenario for the eurozone?Why is a Greek deal so urgent?

Meeting called for Monday as finance ministers still cling to hopes for a deal after brittle summit ends without agreement on debt crisisTalks to end the debt crisis that has engulfed Greece broke up early on Thursday, despite Athens presenting a raft of new reform proposals to eurozone finance ministers in a bid to secure a deal. A summit of eurozone leaders was immediately called for Monday in a bid to find a solution to the mounting crisis.The Greek finance minister, Yanis Varoufakis, talked for half an hour at the Luxembourg meeting and distributed a five-page memorandum of fresh policy changes, according to sources at the meeting, but failed to persuade the debt-stricken country’s creditors that they could form the basis for an agreement.Related: 'Making us poorer won't save Greece': how pension crisis is hurting its peopleRelated: Greece says it will run out of money by end of month without bailout deal Continue reading...

Retail sales figures, which don’t include restaurants, hotels and foreign travel, show just a 0.2% increase on previous monthThe petrol price dividend from price falls at the pumps is being spent on eating out, trips abroad and short breaks to Britain’s growing number of boutique hotels.That appears to be the message from May’s retail sales figures, which don’t cover restaurants, foreign travel and the hotel trade and ticked up just 0.2% on the previous monthThe UK’s economic growth remains unbalanced and is too reliant on consumer spending Continue reading...

Economics editor Larry Elliott assesses Thursday's negotiations between Greece and the International Monetary Fund. Finance ministers from across the eurozone have converged on Luxembourg to discuss the state of Greece's economy, which has less than a fortnight to reach a deal with creditors before its bailout expires. Who has the biggest headache? Angela Merkel, the German chancellor ... or Alexis Tsipras, Greece's prime minister? Continue reading...

Christine Lagarde, the head of the International Monetary Fund (IMF), says on Thursday that Greece has no chance of a 'grace period' over its €1.6bn repayment due to the IMF on 30 June. Lagarde's comments come as finance ministers from across the eurozone have converged on Luxemberg to discuss ways to resolve the crisis amid fears of Greece's possible exit from the single currency Continue reading...

Everyone from the president to trade analysts can speculate on what the Trans-Pacific Partnership will mean for the US economy, but the simple fact remains: no one can see the futureAfter all the shouting, are we any closer to knowing whether free trade agreements are good or bad for the country – and for your wallet?The attempts to provide answers to those questions have been thrust into the spotlight by President Barack Obama’s futile last-minute efforts to salvage his power to freely negotiate what would be the world’s largest free trade pact, the Trans-Pacific Partnership. Continue reading...

German chancellor tells Bundestag the Greek government failed to honour commitments made with lenders to implement structural reformsAngela Merkel has delivered an unusually sharp rebuke to the Greek government, accusing it of failing to implement necessary structural reforms while insisting a last-minute deal was still possible to keep it in the eurozone.

This neighbourhood was unfairly identified as ground zero for the foreclosure crisis. Eight years later, it’s coming back up – without the help of federal fundsWhen Anthony Trzaska hears the words “Slavic Village” in news reports, he knows what is coming next. “It’s almost like when the media reports anything on Slavic Village, it’s followed with: ‘Comma, where the foreclosure crisis in America started,’” says the 31-year-old resident. “It’s not like the foreclosure mess didn’t happen. But it didn’t just happen here.”Cleveland’s Slavic Village is widely perceived as the epicentre of the Great Recession. In 2007, when the media finally realised that the housing bubble was bursting wide open (about two years after 48 states had sued subprime lender Ameriquest for fraudulent loan practices), a few journalists decided to run some zip codes to see where the most foreclosures were happening. Continue reading...

Report notes numbers of people relying on food banks has doubled in a year and criticises ‘lack of progress’ regarding 23% of Welsh population living in povertyThe Labour-led Welsh government has been severely criticised by an assembly committee for its “lack of progress” in reducing poverty.Women, children and refugees are among the groups who have been particularly badly affected, according to a damning report published on Thursday. Continue reading...

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Central bank issues chilling warning that Greece could be thrown out of the European Union unless it reaches a deal fast

Head of European parliament says Grexit from euro may also mean leaving EU as Athens admits it cannot pay IMF and Brussels expresses little hope in final talks

Athens is staring down a tunnel with only a glimmer of light. Europe confronts a scenario of total darkness. Dropping some of the debt is the only way to avoid itGreece could soon steer into a long, dark tunnel with only the faintest glimmer of light at the end. If it doesn’t pay the IMF at the end of this month, finance for its banks could be cut off, forcing Athens to print a new currency. Outside the euro, Greece could find itself without the means to pay for basic imports like fuel and medicine. After a while inflation should start to eat into debts, and a cut-price drachma should lure extra tourists: therein lies that glimmer of light. The difficulty, however, is that to lock in its new competitive edge, Greece would have to run its economy well and increase the efficiency of its industry. If it can’t do these things, and its current predicament hardly inspires confidence, then the relief of devaluation would soon give way to panic about inflation.At least Greece understands that it is approaching a moment of destiny. Europeans elsewhere – who have not suffered a comparable economic collapse or the concomitant spike in suicides – may not realise that they are perched on an ominous brink. Some say that, unlike in 2011, a Greek exit could today be managed. After all, the fire-fighting funds scrambled together back then are now on a permanent footing. Eurozone output is today growing, not shrinking. There are even signs of one or two of the peripheral countries once dismissed as the PIIGS beginning to fly. Greece’s creditors are today essentially public institutions, and so – the voices of complacency continue – there is no longer the same risk of contagion in private markets. They point, too, to the eurozone bond-buying scheme, formally approved by the EU’s top court in Luxembourg this week, which stands ready to douse down the panic that would flare up. Continue reading...

Young couples need ‘pristine’ credit scores as US home ownership rates hits lowest level since 1989 but Fed remains committed to raising interest rates this yearYoung couples are delaying getting married because they are finding it so hard to get a mortgage to buy their first home, Janet Yellen, the chair of the Federal Reserve, warned on Wednesday as she once more signaled a historic rise in interest rates later this year.Yellen said people were finding it so hard to secure credit from banks that “people [are] delaying marriage [because they] can’t get mortgages as easily”. She said that it is still too difficult for people to get a mortgage unless they have “pristine” credit scores. Continue reading...

Greece warns of ‘uncontrollable crisis’ without a deal with creditors. Meanwhile, in the UK a glitch at RBS causes delays in payments, sparking anger among customers Continue reading...

This is a crunch week for the Greek debt negotiations, and could be decisive for the country’s membership of the eurozone. Day by day and meeting by meeting, we outline how the crisis could play out Continue reading...

The legal basis for forcing a member out is shaky: the European commission needs to debunk the ‘Grexit’ assumption and rediscover its role as guardian of the treatiesMonths of arguments about the Greek financial crisis have this week cumulated in a highly emotional debate about a possible Grexit. As Athens will be unable to satisfy its financial obligations after a default, many hardliners expect Greece to leave the eurozone, and printing as much neo-drachma as necessary. Some see this as the only solution to the Greek crisis: it would allow Greece to devalue its new currency, supposedly making the country competitive and resulting in economic growth and the ability to repay its debt. Others are more sceptical: they fear that the new drachma would be an obstacle to trade, increasing the cost of imports and making it impossible for Greece to ever repay anything.Related: Greece crisis: US urges compromise after Greek PM attacks IMF - as it happenedAccording to the EU treaty, its aim is to promote peace and the wellbeing of its peoples Continue reading...

Greece’s prime minister says the financial institution has ‘criminal responsibility’ for the damage caused by the country’s austerity programmes Continue reading...

Concerns that jump in real wages, highest in seven years, will be short lived if inflation continues to rise over rest of 2015 and productivity remains flatWage growth in Britain hit a four-year high of 2.7% in April, according to official figures, delivering a welcome increase to household finances following the fall in inflation this year.But some analysts warned that the jump in real wages, the highest for seven years, would be short-lived if inflation continued to rise over the rest of the year and productivity remained flat.Related: Enjoy rising wages while they last – it won't take much to slow things down Continue reading...

British chancellor George Osborne says government is taking ‘all steps’ to protect Britain amid fears that Greece is on verge of debt defaultThe British government is stepping up contingency planning to prepare for the “serious economic risks” posed by a Greek default and a possible exit from the euro, Downing Street has confirmed.

Tsipras’s abrasive tone and accusations of ‘criminal conduct’ by IMF stokes more anger as EU officials prepare to gather at Luxembourg last chance saloonFears that the five-year Greek financial crisis will culminate in debt default and exit from the euro have intensified as Athens hardened its rhetoric against its creditors and insisted it would miss a payment to the International Monetary Fund unless it received debt relief.With just 48 hours to go before a meeting of eurozone finance ministers, seen as the last realistic chance to reach a deal before Greece has to pay the IMF at the end of June, Alexis Tsipras, showed no sign of bowing to demands for cuts in pensions and increases in VAT. Instead, the Greek prime minister accused the Fund of “criminal responsibility” for the situation and said lenders were seeking to “humiliate” his country.Related: Tsipras does want a deal, as the alternative is unthinkableRelated: Angela Merkel stands firm on finding resolution to Greece crisisRelated: Eurozone braces for Greek exit as Athens threatens to miss IMF payment Continue reading...