Europe wobbles…

Italy, Spain and Cyprus all strike fear into the hearts of economists.

The Eurozone is heating up again, as the realisation dawns that previous settlements were merely uneasy hiatuses.

The immediate problem is Cyprus, which finds itself on the verge of default due to contamination from Greece. The country, a small island nation in the Mediterranean, has close historical and financial links with crisis-stricken Athens, and was forced to seek aid from the EU last year. Last month, the Wall Street Journal's Stephen Filder received confirmation in Davos from Olli Rehn, the EU's economics commissioner, a rescue program for the country will require "substantially reducing government and bank debt" — in other words, a default.

Such a default will be problematic, because Cyprus, more so than most troubled Eurozone countries to date, operates as an off-shore banker for many of the world's super-rich — particularly, in this case, Russians. The country is likely to find itself stuck between two unpalatable options: either safeguarding its banking sector from losses by imposing huge burdens on its populace, or risking a run on the banks from overseas as foreign depositors try to get their money out.

There had been hope that the country may be able to get a bailout from the EU without causing too much damage to its domestic banking operation, but over the weekend, that became less likely. The SPD, the German opposition party, pushed for the country to be forced to consolidate its banks before any bailout would be agreed. According to Reuters, Merkel needs the support of the SPD to pass any bailout through the Bundestag (and of course, the EU needs the support of Germany before any bailout can go ahead) so this objection carries real weight.

The Cypriot problem is nasty, but largely internal; the country is too small to have any real contagion effects. The same cannot be said of Italy and Spain, both of which are sources of increased uncertainty.

In Italy, Silvio's back! The former prime minister — who, if he were anyone else, would surely be the "disgraced" former prime minister — is running for office on a platform of tax cuts (€4bn of them) over austerity. His coalition is in second place right now to the centre-left grouping, but its standing is improving — and the markets appear to be getting jumpy at that fact.

Berlusconi is being hampered by the fact that he no longer controls Italian media in the way he used to, but even so, a win for him is still alarmingly possible. (Regardless of the effect of deficit-funded tax-cuts on national economies, Berlusconi is unlikely to plough a viable economic course for Italy).

And in Spain, prime minister Mariano Rajoy has been accused of running an illegal slush fund. Yesterday afternoon, Rajoy issued a not-entirely-convincing rebuttal, telling a joint press conference with Angela Merkel that:

I repeat what I said Saturday: everything that has been said about me and my colleagues in the party is untrue, except for some things that have been published by some media outlets.

Merkel, "visibly upset", was also asked about the corruption allegations, and emphasised that "what is important is the relationship between the two governments".

Whatever happens to Rajoy, Berloscuni, and even Cyprus, the flurry of attention and fear generated by what ought to be business as usual for politics (except, maybe, the Cyprus problem) demonstrates how uneasy the situation in Europe remains. While we haven't heard a huge amount about the crisis recently, as the big minds in economics get distracted by talk of robots (not that the potential problems there aren't huge either), the situation is by no means fixed. The continent remains in much the same straits as Britain, but with the added straightjacket of a unified currency and intransigent Germany dampening hope.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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France to bulldoze Calais Jungle days after child refugees arrive in the UK

The camp houses thousands. 

Refugees and migrants in Calais began queuing up for buses this morning as the French authorities plan to demolish the "Jungle" camp.

But activists fear that, unless France significantly speeds up its asylum process, the displaced people will simply move to other camps along the northern French coast.

Meanwhile, the first children of Calais brought to the UK under the Dubs Amendment arrived at the weekend.

The camp known as the Jungle, in a wasteland by the port of Calais, is actually the latest manifestation in a series of camps established since 1999, when a French reception centre became too crowded.

However, it has swelled as a result of the refugee crisis, and attempts by residents to sneak onto lorries entering the Channel Tunnel have become daily occurences. The French authorities bulldozed part of it earlier this year.

Ahead of the latest demolishment, which is expected to happen on Tuesday, Clare Moseley, founder of Care4Calais, said: “In February this year over 50 per cent of the camp was demolished and yet six months later the camp is bigger than it has ever been before. 

"This is clear evidence that demolitions do not act as a deterrent.  The refugees come because they have no choice."

Future refugees will go to other camps with even less facilities, she warned.

The camp houses thousands of residents, but because of the authorities' unwillingness to legitimise it, there is no official presence. Instead, the residents must rely on volunteer aid services and have little means to stop intruders entering. 

Although conditions in the camp can be dire, residents have created a high street with basic tent shops and restaurants catering to the needs of its displaced population. Many of those in the camp say they are there because they hope to be reunited with family in Britain, or they have given up on ever being processed by the French authorities. 

After the UK government was pressurised into passing the Dubs Amendment, which provides sanctuary to unaccompanied child refugees, some children from the camp have arrived in the UK. The first group is reportedly mostly girls from Eritrea, who will be processed at a UK immigration centre.

One of the MPs crucial to ensuring the Dubs Amendment delivered, Stella Creasy, said many more still needed help. 

Children reunited with their families under the Dublin Convention arrived in the UK last week, although their arrival was overshadowed by a debate over age checks.  

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.