We'll keep the blue flag flying here. Photo: Getty Images
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Grexit avoided as Greece reaches "humiliating" bailout deal with Eurozone creditors

After 16 hours of negotiations, a deal has been reached between Greece and its creditors. 

After 16 hours of negotiations, Greece and the rest of the Eurogroup this morning reached a deal on a new bailout.

"There will not be a Grexit," Jean-Claude Juncker, the head of the European Commission, reassured reporters. What there will be instead is €82-6bn worth of new funding, while €50bn of state assets will be privatised, with €37.5bn going to Greece's creditors and €12.5bn going to growth initiatives. Greece will have to reform its VAT arrangements and pensions, and sign up to immediate spending cuts if it breaches its targets.

The deal will be voted on by the Greek parliament by Wednesday and then ratified by the national parliaments of several other Eurozone nations.

The tough terms of the deal mean it will be controversial, with some questioning why Greek leader Alexis Tsipras accepted stringent conditions on new lending after winning a referendum on the bailout last week. Commentators have compared the harshness with the Treaty of Versailles, and Nobel Prize-winning economist Paul Krugman said the terms strayed into "pure vindictiveness".

Germany's Angela Merkel, asked about the Versailles comparison, said that she never made "historical analogies, " while Jean-Claude Juncker said: "I don’t think that the Greek people have been humiliated and I don’t think the other Europeans were losing their face. It’s a typical European arrangement."

Exclusive: "We were set up". Read the NS interview with former finance minister Yanis Varoufakis here.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.