Eu

Jean-Claude Juncker, the president of the European Commission, has suggested that if Greece votes No in the referendum on whether to accept the terms of a bailout, it will be voting not just to leave the Euro but the EU too. Juncker has clearly decided that the best thing to do is to put the pressure on for a Yes vote in the referendum on Sunday. A Yes vote would force the Syriza-led government to resign. At that point, a deal could—potentially—be done with the new Greek government. However, it is worth noting that any new deal would have to get through various Northern European parliaments which could be tricky.

Tonight, it is still not clear how the Greek situation will be resolved. The European Central Bank--which is desperate to avoid being dragged into the politics of this situation--has chosen a middle way on its emergency assistance to Greek banks. It has neither ended it—which would have crashed the whole Greek banking system—nor extended it, which would have enabled the banks to stay open and eased the pressure on the Syriza-led government. Greek banks will definitely be closed tomorrow and probably until the referendum on Sunday. The next big question is what happens on Tuesday when the bailout programme ends and a payment comes due to the IMF which Athens will not be able to make.

The Greek Prime Minister Alexis Tsipras has just announced that there will be a referendum on the proposed bailout deal next Sunday, July 5th. He will ask for the current bailout to be continued until then to allow the Greek people to have their say. The signs from Athens are that Tsipras will campaign for a No vote unless the creditors offer Greece a radically better deal at tomorrow’s meeting. This move from Tsipras will infuriate Greece’s creditors.  It will also, almost certainly lead to the introduction of capital controls for Greek banks until the referendum. If the creditors don’t blink tomorrow and improve the terms they are offering Athens, then it is hard to see how the current deal can win a referendum in Greece.

Dominic Cummings is the man drafted in to put together the putative No campaign for the EU referendum. Cummings has a tendency to surprise and he has done that today with a piece that pushes the idea that the No campaign should say that there would be a second referendum if Britain votes Out. This second vote would be on the terms of Britain’s exit from the EU. Cummings’ thinking is that this would de-risk voting No. People would be simply rejecting the deal that David Cameron had negotiated rather than voting to leave outright. Cummings sums up the advantages of a second referendum for No thus: This approach might allow NO to dodge its biggest problem – the idea that a NO vote is a vote to leave in one jump and is therefore a leap in the dark.

The Greek economy minister Giorgos Stathakis has told Robert Peston in an interview that the deadlock between Athens and its creditors has been broken, that $7.2 billion of funds should soon be released enabling the IMF to be paid at the end of the month. But this judgement seems distinctly premature. First of all, the technical negotiations have yet to take place — and it is all too easy to see how a deal could fall apart then. While the IMF tends to take a tougher line than the European Commission and so might not sign off on this deal. It is also worth remembering that there have been times when the Greek view of what has been agreed has differed distinctly from that of the rest of the Eurozone.