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‘Would you like a glass of pink champagne?’ asks Alex Salmond at 3.30 p.m., sounding very much like a man settling down for the afternoon. It’s Monday and Scotland’s former first minister has cause to celebrate. He spent the previous day musing on television about the price he’d demand for the SNP supporting Ed Miliband in the Commons, and his thoughts dominate the front pages. There’s plenty of outrage at the idea of the SNP toying with England, and outrage is just what he wanted. So champagne it is. He has found himself an unlikely star of the Tory election campaign; the party this week released a cartoon showing him playing a whistle while Miliband dances.

[audioplayer src="http://rss.acast.com/viewfrom22/putin-s-empire-building/media.mp3" title="James Forsyth and Fraser Nelson discuss Osborne's election manoeuvres " startat=839] Listen [/audioplayer]Puccini’s doesn’t seem like George Osborne’s sort of restaurant. It is a pizza-and-pasta place in the safely Labour constituency of Salford and Eccles, Greater Manchester, most notable for the fact that Sir Alex Ferguson once took his whole squad there. (‘Penne alla Giggs’ is still on offer to prove it.) In recent years, however, the Chancellor has become something of a regular — he has even taken the Prime Minister along — and is made welcome to the point that when we met there last Thursday diners queued to be photographed with him.

Today's Guardian magazine runs a Michael Gove profile, colouring him blue on the cover as if to alert readers to the threat he poses. "Smoother than Cameron," it warns. "Funnier than Boris. More right-wing than both. Are you looking at the next leader of the Tory Party?" There is nothing unusual about leadership speculation following a  prominent Tory frontbencher, but there is something unusual about the way Gove has ruled it out in almost any way imaginable. He has combined General Sherman and Estelle Morris, saying he wouldn't and couldn't do  the job. It is now being said that Gove is protesting too much, but he has been clear about this for years. I'll add my tuppenceworth. Gove was once, briefly, my news editor at The Times.

Iain Duncan Smith appeared on the Today programme this morning. In a heated interview with Evan Davis, the work and pensions secretary was interrogated about David Cameron’s radical welfare proposals. Conversation ranged from cutting rental payments for under-25s to protecting non-means tested pensioner benefits. The bulk of the exchange was devoted to discussing Cameron’s intentions, as he seeks to make welfare reform a central part of the 2015 election. Here is a transcript of those passages: Evan Davis: Okay, I’m going to quote a couple of things that you wrote in your green paper. ‘Successive governments have made well-intentioned but piecemeal reforms to the system.

The internet is democratising and enriching the world, right? It’s happening now in the Middle East, isn’t it? No it isn't, says Evgeny Morozov, author of The Net Delusion, not as such. The Spectator has an interview with him over at the books blog (spectator.co.uk/blogs/books). He spoke to us about those liberal westerners, many of whom are close to President Obama and Secretary of State Clinton, whose utopian dreams ask far too much of the internet, and how their misguided analysis of global affairs is strengthening dictators not weakening them. Here is a flavour of what he had to say: ‘We have a very confused sense of how modern authoritarianism works. It works differently.

It's only ten days or so since Ed Balls was last quizzed by Andrew Neil, but there he was rehashing many of the same lines on the Sunday Politics today. Among the things that stood out was this: the shadow chancellor’s argument on the public finances is ever more cleaving into two halves. First, he accuses George Osborne of borrowing £150 billion more over this Parliament than originally planned. (Although there’s a detail that often, conveniently, gets obscured: namely, that borrowing is still going down year-on-year under Osborne's plan). Second, that Balls's plan would decrease borrowing in the medium-term even though it would increase spending and reduce tax revenues in the short-term.

One line jumped out at me in David Cameron’s Marr interview this morning. When Andrew Marr asked him if he thought we were halfway through the Euro crisis or nearing the end of it, Cameron replied: ‘I don’t think we're anywhere near half way through it.’ Cameron clearly does not believe that any resolution to the crisis is in sight. Given that, as long as the Eurozone crisis rumbles on it is hard to see how the British economy returns to robust growth, this is immensely significant. It does, though, make me wonder if the government’s approach to the crisis should now change.

Further to James’s post on the Cameron interview, here’s what jumped out at me: 1. ‘Governments have difficult months. This government came together to dig this country out of the huge economic mess that it's in…’ This is the official No.10 explanation about the last few months; that it’s the problems of the austerity agenda. As James Forsyth says in his political column in the current magazine, there are strongly-held alternative explanations. 2. ‘We’re not just a bunch of accountants dealing with the deficit…’ Cameron kicks off with this, an interesting phrase as it has been used by those criticising his Chancellor’s economic message.

It was the second of the Today Programme's New Year's interviews with the three party leaders today; this one with David Cameron. And there was plenty to digest from it. So much, in fact, that we thought we'd bash out a transcript, so that CoffeeHousers can read it through for themselves. That's below, but before we get there it's worth highlighting a couple of things that Cameron says. First, his point that ‘we've seen a level of reward at the top that just hasn’t been commensurate with success’, which is another volley in the battle against the ‘undeserving rich’ that James mentioned yesterday.

Nick Clegg’s interview in The Observer today highlights what is fast becoming one of the biggest tensions in the coalition: the Lib Dem desire to show that they are the governing party who cares. Allies of Iain Duncan Smith have been infuriated by Lib Dem suggestions that the government would be doing little about youth unemployment if it was not for them. But Clegg repeats the claim to The Observer: ‘Whether it's on youth unemployment, whether it's on youngsters, whether it's on getting behind advanced manufacturing and not putting all our eggs into the City of London basket, I don't think that would have happened without the coalition.

James Forsyth has interviewed the foreign secretary, William Hague, in tomorrow’s issue of the Spectator. Here is an extended version of the piece that will appear in the magazine. Politicians normally have to wait for the history books for vindication. But for William Hague it has come early. All his warnings about the dangers of the euro, so glibly mocked at the time, have come to pass. But, as he makes clear when I meet him in his study in the Foreign Office days before the start of Tory conference, he is not enjoying this moment. Rather, he is absorbed with trying to sort out the mess that others have created.

Nick Clegg was in combative mood on the Andrew Marr show earlier this morning; he railed against the press and the Daily Mail in particular. It wasn’t exactly an illuminating session, but here are some highlights: Clegg on the Mail: “Can I put this mildly? I really wouldn't believe a word you read in the Daily Mail. This is the paper that called me a Nazi. They and other papers have got a bee in their bonnet about the coalition. They come up with drivel every single day. I'm in this because I believe it's the right thing to do...I want to see us succeed in the coalition and beyond...Miriam supports me...” Clegg on his leadership: “Absolutely. I intend to serve well beyond one term. There you go. Daily Mail wrong.

I have interviewed Iain Duncan Smith for tomorrow’s Spectator. In print, space is always tight and we kept it to 1,500 words. One of the beauties of online is that you can go into detail in political debate that you never could with print: facts, graphs (my guilty pleasure) and quotes. Here is a 2,300-word version of the IDS interview, with subheadings so CoffeeHousers can skip the parts that don’t interest them. I’ve known him for years, and remember how hard it was to get out of his room four years ago when he started on the subject of gang culture and the merits early intervention. Now, he’s in the DWP, able to enact all he spoke about. He believes the riots will transform Cameron’s premiership in the same way that 9-11 did Blair’s.

One of the striking things about the wall to wall hackgate coverage on the 24 hours news channels is the absence of Tory voices defending the Prime Minister. It is coming to something when the leader of another political party, Nick Clegg, is doing more to defend the PM than most of the Tory members of the Cabinet. One minister told me earlier that Number 10 was having trouble getting people to go on TV to bat for the PM. While many Tories are wondering where their party chairman is, in these circumstances you would expect her to be touring the TV studios. Cameron’s political spokeswoman Gabby Bertin is doing a typically able and indefatigable job of making the case for her boss.

Garlands go to the conqueror. The Observer has interviewed Ed Miliband about his response to the News International crisis, and it’s as if Caesar has returned home after crushing the traitor Pompey. Miliband told the Spectator in an interview with James Forsyth in this week’s magazine that Murdoch’s spell on British politics has been broken. He reiterates that sentiment with the Observer and adds that Murdoch’s endorsement will be a “double-edged sword at the next election”. When speaking to James he was careful to insist that there was nothing personal in his burgeoning crusade against Murdoch; he is not so careful now.