Greek Prime Minister Alexis Tsirpas delivers a televised address from his office at Maximos Mansion in Athens. Photograph: Getty Images.
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Tsipras vows to go ahead with referendum and campaign for No - what next for Greece?

The No side's lead has narrowed since the bank closures on Monday. 

When it emerged this morning that the Greek government had accepted the the bulk of the troika's conditions, the assumption was that the referendum scheduled for Sunday would be called off. But in a characteristically defiant TV address this afternoon, Alexis Tsipras dismissed this possibility. The Greek PM announced that the referendum would still go ahead and that he would campaign for a No vote. He again insisted that the vote was not on whether to remain the euro and that the hoped-for result would strengthen his hand in negotiations. "A popular verdict is much stronger than the will of a government," he declared.

It is far from clear what Greeks are voting on now (indeed, it never has been). The offer that was withdrawn after the referendum promise or the deal now being discussed? But for Syriza, "oxi" (the historically resonant Greek word for No) is now an act of symbolic defiance. 

The polls are pointing to a victory for the No side but its lead has narrowed to nine per cent since the bank closures on Monday. It is doubtful, however, after Tsipras's relentless brinkmanship, that the troika will respond by offering improved terms. Should Greece vote Yes, the government would have to resign and new elections would be held. But there is no guarantee that Syriza (which was elected with just 36.3 per cent of the vote in January) would not again be returned to power. 

Ahead of his emergency Budget next Wednesday, George Osborne, as in 2010, is pointing to the crisis as evidence of the dangers of easing up on austerity. But as economists rightly contend, it is a surfeit, not a dearth, of austerity that has immiserated Greece. Though one would not know it from Osborne’s statements, the country’s cyclically adjusted primary budget surplus (which assumes a normal level of economic activity and excludes debt interest payments) is the largest in Europe at 6 per cent of potential GDP. It is the absence of stimulus for a depressed economy that explains the overall shortfall in revenue. Greece, on this basis, has been more fiscally responsible than the UK government (which has failed to achieve a surplus of any kind). Indeed, had Osborne not reduced the pace of the cuts, the recovery that he lauds would have been weaker.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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What do Labour's lost voters make of the Labour leadership candidates?

What does Newsnight's focus group make of the Labour leadership candidates?

Tonight on Newsnight, an IpsosMori focus group of former Labour voters talks about the four Labour leadership candidates. What did they make of the four candidates?

On Andy Burnham:

“He’s the old guard, with Yvette Cooper”

“It’s the same message they were trying to portray right up to the election”​

“I thought that he acknowledged the fact that they didn’t say sorry during the time of the election, and how can you expect people to vote for you when you’re not actually acknowledging that you were part of the problem”​

“Strongish leader, and at least he’s acknowledging and saying let’s move on from here as opposed to wishy washy”

“I was surprised how long he’d been in politics if he was talking about Tony Blair years – he doesn’t look old enough”

On Jeremy Corbyn:

"“He’s the older guy with the grey hair who’s got all the policies straight out of the sixties and is a bit of a hippy as well is what he comes across as” 

“I agree with most of what he said, I must admit, but I don’t think as a country we can afford his principles”

“He was just going to be the opposite of Conservatives, but there might be policies on the Conservative side that, y’know, might be good policies”

“I’ve heard in the paper he’s the favourite to win the Labour leadership. Well, if that was him, then I won’t be voting for Labour, put it that way”

“I think he’s a very good politician but he’s unelectable as a Prime Minister”

On Yvette Cooper

“She sounds quite positive doesn’t she – for families and their everyday issues”

“Bedroom tax, working tax credits, mainly mum things as well”

“We had Margaret Thatcher obviously years ago, and then I’ve always thought about it being a man, I wanted a man, thinking they were stronger…  she was very strong and decisive as well”

“She was very clear – more so than the other guy [Burnham]”

“I think she’s trying to play down her economics background to sort of distance herself from her husband… I think she’s dumbing herself down”

On Liz Kendall

“None of it came from the heart”

“She just sounds like someone’s told her to say something, it’s not coming from the heart, she needs passion”

“Rather than saying what she’s going to do, she’s attacking”

“She reminded me of a headteacher when she was standing there, and she was quite boring. She just didn’t seem to have any sort of personality, and you can’t imagine her being a leader of a party”

“With Liz Kendall and Andy Burnham there’s a lot of rhetoric but there doesn’t seem to be a lot of direction behind what they’re saying. There seems to be a lot of words but no action.”

And, finally, a piece of advice for all four candidates, should they win the leadership election:

“Get down on your hands and knees and start praying”

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.