Greece votes No – the morning after. What part of “Oxi” don’t you understand?

Screen shot 2015-07-06 at 06.37.43“Democracy in Greece spoke on Sunday and the response was a resounding “no” to demands for more of the excoriating austerity that over five long years has been the price of keeping Europe’s weakest economy afloat. In a referendum seen as the single biggest experiment in people power since the debt-stricken country crashed on the rocks of bankruptcy, 61% of voters rejected the terms of further financial assistance set by creditors at the European Union and International Monetary Fund.” – The Guardian

Tsirpras praises a nation’s defiance, but his Finance Minister quits…

“Yanis Varoufakis said he had been “made aware” some members of the eurozone did not want him at the meetings of finance ministers. He quit as the leaders of France and Germany prepared to hold emergency talks, adding: “I shall wear the creditors’ loathing with pride”… Prime Minister Alexis Tsipras called the result a “victory of democracy” and said the Greek people had made a “very brave choice”. We proved even in the most difficult circumstances that democracy won’t be blackmailed,” Mr Tsipras said in a TV message to the nation.” – Sky News

…As the European institutions mull emergency loans…

“The heads of the European Commission, European Central Bank and eurogroup of finance ministers will hold a conference call on Monday morning. Greek banks are fast running out of cash even with capital controls and are unlikely to re-open this week unless the ECB governing council approves an increase in emergency loans in a conference call on Monday afternoon.” – Financial Times

…Merkel and Hollande are at odds over Greece’s future in the Euro…

Screen shot 2015-07-06 at 06.40.02“Now one has to ask the question whether Greece would not be better off outside the euro zone,” said Hans Michelbach, a German politician allied to the Chancellor, Angela Merkel. “Unfortunately, Greece has chosen a path of isolation.”…The Prime Minister is on Tuesday expected to attend a summit meeting of EU leaders in Brussels as they discuss how to prevent Greece’s possible exit from the eurozone causing economic turmoil across the continent.” – Daily Telegraph

…And a deadline for default looms: will the country be out of the single currency by the end of the month?

“The final straw for Greece’s turbulent time in the euro could come on July 20 when it must pay €3.5 billion to the ECB. Without a new package of loans in exchange for austerity measures agreed by the rest of the eurozone, the Greek government will be unable to make the repayment. A default to the ECB would leave Greece with no option but to leave the single currency.” – The Times (£)Cam to chair crisis talks

Here is Britain, Cameron is to chair crisis talks today

CAMERON EU flag“After six in ten of Greeks voted No in yesterday’s crucial referendum, the Prime Minister will discuss with George Osborne and Bank of England governor Mark Carney how the UK should respond. Yesterday the Chancellor said that although the Government was prepared, Britain cannot be immune from the fall-out from the Greek vote. The Stock Exchange was braced for significant losses this morning.” – Daily Mail

Daniel Hannan: If little Greece can stand up to the bullies in Brussels, so can we

“Now I am no fan of Alexis Tsipras, a revolutionary extremist who only recently took the Che Guevara portrait in his office down. But he unquestionably won the last election fair and square.
Leftist writers sometimes compose dramas about popular progressive leaders being conspired against by foreign powers and bankers. For the first time in my life, that fantasy has turned out to be true.
To their immense credit, Greeks stood firm. As their grandfathers did in 1940, when Benito Mussolini told them to allow Axis troops to occupy their ports, they returned a one-word answer: ‘Oxi!’ – ‘No!’” – Daily Mail

> Today:

Osborne trails the Budget 1) Lower regional benefits cap outside London

Screen shot 2015-07-06 at 06.42.43“Mr Osborne is also expected to cut the maximum an unemployed family can get in benefits from the current £26,000 a year to £23,000, with a lower limit outside London. Mr Osborne said: “We’ve got to have a welfare system that is fair to those who need it but also fair to those who pay for it.” – Daily Express

Osborne trails the Budget 2) No cut in the top rate of tax

“Mr Osborne made clear that cuts to the top rate of income tax from 45p to 40p were unlikely in this budget. He said that his priority would be to raise the personal allowance for income tax to £12,500 and the higher rate threshold to £50,000 over the parliament. Lord Lamont of Lerwick, the former chancellor, backed a delay, telling Sky News that the cut should take place later in the parliament.” – The Times (£)

Osborne trails the Budget 3) No hike in the minimum wage

OSBORNE non-broken sword“George Osborne has reassured companies that they will not be forced to raise wages to offset £12bn of benefit cuts to the working poor, as he puts the finishing touches to this week’s Budget. Mr Osborne announced on Sunday he had identified £12bn of welfare cuts, with the axe expected to fall most heavily on benefits paid to working families: tax credits and housing benefit.” – Financial Times

Osborne trails the Budget 4) Chancellor attacks BBC website

“He said was publishing so much content that it risked ‘crowding out’ daily newspapers, adding that this showed the BBC wanted to become a ‘national newspaper as well as a national broadcaster’. Mr Osborne also said it was time for the BBC to contribute to money-saving efforts. He is expected to use Wednesday’s Budget to force the Corporation to meet the cost of free TV licences for the over-75s.” – Daily Mail

Leo McKinstry: Osborne is becoming one of the truly greats

Screen shot 2015-07-06 at 06.51.07“Freed from the millstone of the handwringing Lib Dems, Osborne has a unique opportunity to embark on the kind of far-reaching reform that Nigel Lawson introduced with his famous 1988 Budget which implemented big cuts in income and corporation tax. Osborne may never have another chance like this to remodel the British economy. His own authority is at a commanding level, while the Labour opposition is in complete and utter disarray after the comprehensive rejection of their tax-and-spend agenda.” – Daily Express

Labour leadership contest. Lunatics torch asylum as Unite picks Corbyn

“The union’s ruling body voted to endorse Mr Corbyn as its first choice, while suggesting their members give their second preference vote to Mr Burnham, the shadow health secretary. Mr Burnham had been expecting to pick up Unite’s nomination until three weeks ago when Mr Corbyn snuck on to the ballot paper after support from MPs such as David Lammy and Sadiq Khan, who wanted to broaden the debate.” – The Times (£)

News in Brief

  • Photos of Boris playing the Eton Wall Game as a teenager – Daily Mail
  • Teachers claims that reading and numeracy tests are reducing Wales’ youngest pupils to tears – Wales Online
  • NHS failing dementia victims, say doctors – Daily Express
  • UK flood fund in £2.1bn reinsurance deal – Financial Times
  • Millions spent on school fees for military kids – The Sun (£)
  • Police criticised for not arresting man carrying ISIS flag near Parliament – The Guardian
  • U.S leads airstrikes on Raqqa – The Times (£)
  • America crushes Japan to win women’s World Cup – Daily Telegraph
  • Mary, Queen of Scots to be honoured with festival – Scotsman
  • Princess Charlotte is christened – Daily Mail
  • Heatwave back by Friday – The Independent