The jumbo Jumbo

Jorn MadslienBy Jorn Madslien

Boeing 747-8 IntercontinentalBoeing enjoyed $5.4bn of fresh orders for its new 747-8 Intercontinental on the first day of the air show

Upstairs in the latest jumbo jet from Boeing, the view to the cockpit and the slim, elongated cabin creates an airy and spacious environment similar to that in executive private planes.

Only here, some 400 passengers will be tagging along in the cavernous economy class sections on the floor below.

The Boeing 747-8 is the largest plane ever built by the US aerospace giant, which makes it an ideal people-mover on a grand scale.

But at least there are windows, observes a Boeing test engineer, who has been banned by the company from revealing her name.

“We’ve been doing a lot of flights were we do ‘roller coasters’,” she says, referring to manoeuvres such as deliberate mid-air stalling of the giant aircraft.

“Windows on a flight tester is a wonderful thing,” she adds, following a nine-hour flight from Boeing’s headquarters in Seattle. “Moving sickness can be bad on a freighter.”

Boeing initially launched its stretched 747 as a freighter aircraft about a year ago, with its Intercontinental passenger version taking to the wings for the first time as recently as in March this year.

“This is a relatively small market in terms of units, but it is big in terms of investment.”

Randy Tinseth Boeing Commercial Airplanes’ marketing chief

The “dash-eight”, as they call the plane, flew straight into an order-flurry that saw it clock up some $5.4bn (£3.3bn) worth of deals at list price during the first day of the Paris air show.

With 17 fresh orders for the 747-8 Intercontinental, Boeing has pulled in 50 firm and five conditional orders for the passenger version, in addition to some 70 orders for the 747-8 windowless freighter.

According to Boeing Commercial Airplanes chief executive Jim Albaugh, the orders “demonstrate the market’s need for an airplane of its size and range” – a statement that in itself demonstrates a sharp change in the sentiment of the Seattle-based aerospace giant.

During recent years, when the Airbus A380 has been milking its status as the world’s largest passenger plane for all its worth, Boeing has been pooh-poohing its European rival’s insistence that giant hub-to-hub planes are what airlines want.

Though almost just as enormous, the latest jumbo jet from Boeing has failed to whip up the sort of frenzy that the A380 has been generating.

Airbus A380 with clipped wing tipThe Airbus A380 clipped its wing tip during parking

Sure, the Boeing is actually a longer aircraft, but it is also just a reversion of an ageing model.

Airbus is eager to stress how its A380 is a showcase of modern technologies and insist the 747-8 is, to all intents and purposes, just an old plane that has been stretched.

On the ground, sheltered from the rain by the 747-8’s vast wings, Boeing Commercial Airplanes’ marketing chief Randy Tinseth hits back.

“This is a relatively small market in terms of units,” he says, predicting a market for some 820 “large airplanes” over the next 20 years. “But it is big in terms of investment.”

Boeing has invested some $27bn in the “dash-eight”, hence Mr Tinseth insists it has “essentially created an all-new airplane that can compete with another all-new airplane, the A380”.

The 747-8 shares its engine technology with the 787 Dreamliner, making it quieter, cleaner and less thirsty than rival aircraft, Boeing insists.

“The 747-8 Intercontinental is more than 10% lighter per seat than the Airbus A380 and consumes 11% less fuel per passenger,” Boeing says in a statement.

Boeing 747-8 IntercontinentalBoeing insists that the 747-8 is much more than just a stretched version of the existing jumbo jet

“That translates into a trip-cost reduction of 21%, and a seat-mile cost reduction of more than 6% compared to the A380.”

Airbus would dismiss such claims, of course, and counters that the “dash-eight” is already late to the market.

In addition, given the string of delays Boeing has had with its high-profile 787 Dreamliner project, there are good reasons to doubt the US firm’s promise to deliver “dash-eights” to customers by year-end.

But if the A380 could have dominated the skies above Le Bourget during this week’s show, with the rival 747-8 merely landing or taking off, it has failed to do so.

After an accidental clipping of a wing during parking on Sunday, the A380 has been grounded, leaving the two rivals competing on an even keel here at the Paris show.

This year’s Paris Air Show takes place at Le Bourget exhibition centre on the outskirts of Paris from 20 to 26 June 2011.

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Golf’s golden boy

Rory McIlroyImages of Rory McIlroy beamed all over the world will have done no harm to his sponsor Jumeirah

When Rory McIlroy won the US Open late on Sunday night, he not only pocketed a cool $1.44m (£890,000) in prize money, but opened the door to a potential bonanza in future earnings.

In becoming the youngest player to win a major since Tiger Woods triumphed at the Masters in 1997, McIlroy is on his way to picking up the sort of money in sponsorship deals and appearance fees that Woods first made possible for the sport.

McIlroy’s appeal is universal, according to John Taylor, chairman of Sports Impact, a sports sponsorship and PR consultancy.

“He’s young, he’s very charismatic,” he says. “He will appeal to men because he’s a great golfer, and to women because he’s young-looking, almost schoolboyish.”

McIlroy already receives an estimated $10m in endorsement deals with Dubai hotels group Jumeirah; Titleist who supply his golf balls and equipment; and sunglasses maker Oakley.

When those deals are due for renewal, he can expect to earn “double that, minimum”, says Mr Taylor.

He will also have performance-related clauses in his contract, which he is set to cash in on, having been on Europe’s Ryder Cup team last year and now having won his first major.

Mr Taylor adds that Jumeirah, which signed a new three-year deal as McIlroy’s main sponsor last year, got a fantastic deal.

“They got in at the right time. As soon as you win a major, the price goes up. And he’s tipped to win more before they renew.”

While Mr Taylor, who used to manage tennis players including Steffi Graf and Stefan Edberg, says that the media are not over-egging McIlroy’s star potential, Jock Howard, senior editor at Golf World magazine, says people should not get too carried away.

Members of Holywood golf club in Northern Ireland celebrate Rory McIlroy's winMcIlroy’s hometown of Holywood celebrate his win; commentators say he is “in touch with people”

For McIlroy to win his first major at the age of just 22 is an amazing achievement but it is just the first step, Mr Taylor says. He has got to do it again and again and again.

But he admits that since Tiger Woods, who earned about $92m in sponsorship in 2009, spectacularly fell from grace, there is certainly a gap in the market for a new poster boy for golf and McIlroy could be it.

“There have been two or three years where no-one’s filled that void,” he says

“It’s gone from this one-man domination to any of 20 or 30 guys and none of them so far have been able to dominate by winning every tournament by five, six, seven or eight shots.

“Rory showed signs [on Sunday] that he’s the man to fill that gap because he won by eight shots.”

And according to Mr Howard, McIlroy is in the right hands. His agent Andrew “Chubby” Chandler is a former player, whose other clients include major winners Lee Westwood, Ernie Els and Louis Oosthuizen.

“He’s got a great manager in Chubby Chandler who will maximise any earnings potential.”

Following McIlroy’s success, there has been much talk about whether he will move to the US to earn more money playing on the PGA tour rather than in Europe.

“He is by far and away the single most attractive prospect in golf at the moment”

Robert Green Golf International

The total purse money can be about three times the size in the US, compared with tournaments in Europe.

But Robert Green, editor-in-chief at Golf International, says that actually the “money element” is the other way round.

“In Europe he can get huge appearance fees, which are banned in America,” he says.

He estimates that McIlroy, who until last night had only won two tournaments, would have received up to about £200,000 just for turning up. That could now hit £1m.

Plus he seems to like being at home, says Mr Green.

“Right now, why would he change a thing that’s clearly working well?”

Although Tiger Woods at his peak could probably command appearance fees of about £3m in Dubai, Mr Green says that unlike Woods, who often had a fraught relationship with the media and the public, McIlroy seems to be “in touch with people”.

“His image is excellent,” he says.

But at the end of the day, it is how well you are actually playing that matters the most to sponsors, says Mr Green.

When Tiger Woods came back, he had been playing poorly. If he had been playing great, he probably wouldn’t have lost as many sponsors, in Mr Green’s opinion.

And nobody can deny that McIlroy is at the top of his game right now.

“He is by far and away the single most attractive prospect in golf at the moment,” says Mr Green.

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JCB announces £20m of investment

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Staffordshire firm JCB has said it will invest £20m in its UK factories over the coming year.

The firm, based in Rocester, made the announcement as it marks its 65th anniversary.

A spokesman said the money would be spread amongst its 11 UK plants and will be used to buy more equipment and recruit 50 staff.

It said demand from countries such as Brazil, Russia and India, where construction is growing, had surged.

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Union preparing for strike vote

Unison's general secretary, Dave PrentisMr Prentis will say he is willing to negotiate but prepared to strike
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The UK’s second largest union is preparing to strike over pension reform as it enters the first day of its annual conference on Tuesday.

In his opening speech, Unison general secretary Dave Prentis will confirm his willingness to negotiate, but also the plan to ballot members if talks fail.

“While we hope for the best, we prepare for the worst,” said a spokeswoman for the union.

Negotiations with the government over pension reform resume on 27 June.

Some 2,000 delegates from Unison – which represents workers in healthcare, utilities, local government, police support and teaching – are meeting in Manchester over four days.

Other unions have announced plans to ballot on 30 June, however Unison says it would need more time to organise a vote among its 1.3 million members.

It was “now a case of when talks break down, not if they break down” said the Unison spokeswoman, following a speech in London by Treasury Chief Secretary Danny Alexander on Friday that was described by unions as “highly inflammatory”.

Mr Alexander accused the unions of spreading “scare stories” about planned reforms, which he claimed were “not an assault” on pensions.

He added that while he was prepared to discuss the detailed implementation of the proposals, the government would be sticking to the broad principles.

Meanwhile, Shadow chancellor Ed Balls has urged unions not to fall into a government “trap” by striking over plans to reform public sector pensions.

Danny Alexander

Danny Alexander: “I think that’s a very fair and balanced offer”

Among the changes to public sector pensions that Unison objects to:

pension contributions will increase from 6% to an average 9% of paythe retirement age is to be extended to 66 for men and women by April 2020the inflation linkage of benefits will be switched from the retail prices index to the consumer prices index, which is typically lower

Besides pensions reform, the union also opposes the hundreds of thousands of job losses it expects to result from planned government spending cuts, and the public sector pay freeze, which comes at a time when inflation is running at 4.5%.

Motions to be considered by the conference include an explicit call for strike action over the “coalition’s attack on public services”.

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MPs set to approve Scotland Bill

Scottish Parliament buildingThe Scotland Bill will devolve a series of financial and other powers to Holyrood
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Legislation to boost the powers of the Scottish Parliament is expected to be passed by MPs later.

The UK government said the Scotland Bill would give Holyrood ministers £12bn of financial powers.

If backed in the Commons at its third reading, the legislation will be sent to the House of Lords.

It has been described as the largest single transfer of fiscal power from Westminster in the history of the United Kingdom.

But the Scottish government said the bill did not go far enough and it called for further responsibility to be devolved.

Under the legislation, Holyrood will get more powers, including the ability to set rates of income tax, and control over drink-drive, speeding and airgun legislation.

Since the SNP’s election victory in May, which gave them an overall majority, UK ministers have brought forward amendments to the bill to accelerate new borrowing powers to the Scottish Parliament.

But the Scottish government said greater tax and borrowing powers must be devolved, to give Scotland the economic levers it needs to boost recovery and growth.

Scottish Secretary Michael Moore, said: “We have announced new financial powers that will be provided to Holyrood and we will continue to wait for further detailed submissions from the Scottish government.

“Consensus has been the hallmark of the Scotland Bill – if we maintain the support of the House of Commons for the bill today, then we will be a big step closer to improving devolution and making it more accountable.”

Some Tory MPs will also use the Commons debate on the Scotland Bill to raise constitutional issues – one has tabled an amendment calling for a referendum on independence to be held within four months.

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Future of police service debated

Police officersThe Scottish government is considering merging police forces
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Responses to a consultation on the future of Scotland’s police service are due to be published later.

The Scottish government wants to reform the current structure and move away from eight separate forces.

But critics of a single force have raised concerns about local accountability and political interference.

The 219 responses gathered will be discussed at a meeting of the Scottish Policing Board.

Detailed proposals are likely to be announced later in the year.

Ministers appear to be leaning towards a single Scottish police force, an idea supported by Labour and the Conservatives.

A government paper due to be presented at the board meeting seeks to address concerns raised over accountability and governance.

It says: “Strong arguments were identified in favour of a single police service, but questions remained about accountability and centralisation.”

The paper says a senior officer in each local authority could reinforce local policing.

“Strong arguments were identified in favour of a single police service, but questions remained about accountability and centralisation”

Scottish government paper

It also suggests that a single force could be governed by a police board operating independently of ministers.

It details examples of other countries with a single force, including Northern Ireland, Finland and New Zealand, and outlines the way they maintain local accountability and political independence.

Cosla, the umbrella group representing councils in Scotland, has criticised the consultation process.

In a letter to Justice Secretary Kenny MacAskill, Cosla spokeswoman Councillor Barbara Grant expressed “deep dissatisfaction” and accused the government of trying to create a “fictional consensus” in support of a single police force.

A Scottish government spokesman said: “No decisions have been taken on police reform and none will be taken at the meeting.

“The Scottish government has involved stakeholders at every stage of the reform process and we want to ensure this involvement continues.

“Each partner will have the opportunity to examine the consultation responses in full and engage with ministers as we consider the most appropriate way forward in the coming weeks and months.”

He added: “We have consistently made it clear that local accountability and the protection of local services will be at the heart of any reform that we undertake of the police service.”

The responses to the government’s consultation will be published in full on the internet after the Policing Board meeting.

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Greek government to face key vote

 
Greek prime minister George PapandreouThe vote of confidence is in Mr Papandreou’s new cabinet, which he put in place on Friday

The Greek government is due to face a vote of confidence, a crucial first step towards gaining a vital 12bn euro ($17bn; £10bn) loan.

If the government survives the vote, Greece’s parliament will be asked to back the latest spending cuts – worth 28bn euro – on 28 June.

These austerity measures and other reforms have to be introduced before the European Union and International Monetary Fund release the funds.

Greece needs the loan to pay its debts.

Tuesday’s vote of confidence is on the new Greek cabinet, which Prime Minister George Papandreou put in place last Friday.

Mr Papandreou hopes the new cabinet, and specifically the new Finance Minister, Evangelos Venizelos, will help secure parliament’s backing for further austerity measures that are already proving deeply unpopular with the Greek people.

At the weekend eurozone finance ministers decided to postpone their decision on whether to grant Greece the 12bn-euro loan until the country introduces the additional spending cuts and privatisation programmes.

“Letting Greece default in a disorderly, uncontrolled way would probably be a good deal worse for the global economy than Lehman’s collapse”

Peston: Greece is not Europe’s Lehman Commentators: What next for the euro?

Greece needs this aid – the latest tranche of the EU and IMF’s 110bn euro aid package – by July to be able to keep up with payments to the creditors of its huge debts.

If the Greek parliament does back the austerity measures, the eurozone finance ministers will meet again on 3 July, with the funds expected to be released by the middle of next month.

However, lawmakers are having to ponder their decision in the face of mass demonstrations, strikes, and even riots.

The latest protest against the cutbacks involves workers at Greece’s state-owned electricity company, who are on a 48-hour walkout.

BBC Europe editor Gavin Hewitt, who is in Athens, says ministers have argued that without further austerity measures in exchange for a new bail-out Greece is heading for bankruptcy, but many Greeks appear to prefer that option to further austerity.

Protesters participate in a rally against the government's latest austerity measures on Sunday 19 JuneMass protests against the governments austerity measures are continuing across Greece

Mr Venizelos said the decision of the eurozone finance ministers to delay the loan showed that urgent action was now needed. “We have plenty to do,” he said.

Olli Rehn, the European Union’s Monetary Affairs Commissioner, urged Greece to continue with its austerity measures.

“The greatest weight of responsibility lies on the shoulders of the new Greek government,” he said.

Mr Rehn added that the situation in Greece was the worst crisis Europe had faced “since the Second World War”.

New aid

A new aid package for Greece about the same size as the first, which was passed in May last year, was also agreed in principle by EU finance ministers on Sunday.

Greek bail-out timelineMay 2010: EU and IMF agree bail-out package to prevent Greece defaulting on its debts; in return, Greece agrees to make 30bn euros of budget cuts over the next three yearsFebruary 2011: EU and IMF experts tell Greece it must make further cuts to keep recovery on trackApril 2011: EU figures reveal Greek deficit revised up to 10.5% of GDP, worse than previously thoughtMay 2011: Greece begins privatisation programme but is warned the IMF may not release more funds as Athens cannot guarantee it will remain solvent for next 12 monthsQ&A: Greek debt crisis Viewpoint: Politics of Greek crisis

The new package, to be outlined by July, will include loans from other eurozone countries.

It is also expected to feature a voluntary contribution from private investors, who will be invited to buy up new Greek bonds as old ones mature.

Officials said this money had to be freely given, or it would be seen as technical default on Greece’s debt repayments.

If Greece were to default – or seen to be in default – it would mean massive losses for European banks that hold Greek debt, including the European Central Bank.

Officials said the new plan was expected to fund Greece into late 2014 and total about 120bn euros.

Inspectors for the EU and IMF will make another visit to Athens on Tuesday in what the European Commission said would be a “technical mission”.

The visit, which comes after teams from both bodies have spent months poring through the country’s accounts, is unscheduled and the Commission did not say what its objective would be.

Countries most expose to Greek debt

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Violence flares in east Belfast

A large crowd attacked homes on the Mountpottinger Road in east BelfastA large crowd attacked homes on the Mountpottinger Road in east Belfast

Homes in east Belfast’s Short Strand area have been attacked by a large group of masked men, Sinn Fein has said.

Lord Mayor of Belfast Niall O Donnghaile, a Sinn Fein councillor for the area, was at the scene.

He told the BBC that 60-100 masked men fully dressed in camouflage gear have been attacking homes.

The attacks were carried out at the Mountpottinger Road and the lower Newtownards Road, Mr O Donnghaile said.

Police are at the scene and community and youth workers have been trying to defuse the situation.

“It’s a tense and dangerous situation,” Mr O Donnghaile said.

“They’ve hit homes with paint bombs, pipe bombs and petrol bombs.

“A pipe bomb-type device has gone off. There’s a number of Short Strand residents who are injured and a number of homes have been damaged.”

Police have confirmed that a large number of people had gathered in Bryson Street and that petrol bombs have been thrown.

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Accused Bahrain medics ‘tortured’

Troops guard the entrance to the Salmaniya Medical Centre in Manama (18 March 2011)The medics are accused of taking control of Salmaniya Medical Centre in Manama

Twenty Bahraini doctors on trial for taking part in anti-government protests were tortured into making false confessions, their families have told the BBC.

The wife of one of the suspects said they had been forced to stand for three weeks and unable to sleep.

The defendants returned to court on Monday accused of taking over a hospital during protests in March.

Hundreds have been detained since the demonstrations were suppressed.

On Monday, the doctors shuffled into court looking pale and tired.

Some looked dejected, staring at their feet, while others, still proud, looked their accusers in the eye.

Many shook their heads as the accusations against them were read out.

The doctors are accused of taking over the country’s biggest hospital and using it as a base to try to overthrow the Bahraini regime.

The first government witness accused them of a bizarre list of crimes including stealing blood from the blood-bank, and transporting guns in ambulances.

Map of Bahrain

Middle East protests: Country by country

But interviews with families of several doctors revealed compelling evidence that many of those on trial had been tortured.

The wife of one of them told me her husband had signed a confession after being left standing for three weeks, handcuffed, unable to sleep.

There seems little doubt that the doctors did support the anti-government demonstrations that swept Bahrain this spring.

But their real crime appears to have been to speak out to the international media when the government began its violent suppression of the protests at the end of March.

Human rights groups say the fact the doctors are being tried in a military court is no accident.

They say it shows that the hard-liners who have now taken control inside Bahrain’s ruling family are determined to make an example of them.

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VIDEO: ‘Burma campaign like Arab Spring’

Aung San Suu Kyi has likened her long-running campaign for democracy in Burma to the uprisings in the Middle East.

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Claim Briton murdered in Ukraine

The family of a wealthy Devon businessman who died in an apparent hit and run accident in the Ukraine are calling for his death to be properly investigated.

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Women lose Wal-Mart lawsuit fight

The US Supreme Court rules that a group of women claiming sex discrimination may not seek a class action lawsuit against US retail giant Wal-Mart.

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Libya says air strike killed 15

Libyan officials say 15 civilians were killed in a Nato attack, a day after the alliance admitted killing civilians in an air strike on Tripoli.

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Let Greece go bust, urges Johnson

Boris JohnsonBoris Johnson says joining the euro made Greece’s problems worse

Britain should not be expected to contribute to a second bail-out of the Greek economy, Boris Johnson has said.

Speaking to the Daily Telegraph, the Conservative mayor of London said Greece should be allowed to default on its debts and leave the euro.

Eurozone finance ministers have agreed to a second bail-out to keep the country afloat.

But they have postponed a £10bn EU/IMF loan until further austerity measures are introduced.

The Greek government expects a second rescue package to be similar in size to the first one just over a year ago.

But the UK government is under pressure from its own Conservative MPs – and leading figures such as Mr Johnson – to let Greece go its own way.

“For years, European governments have been saying that it would be insane and inconceivable for a country to leave the euro,” writes Mr Johnson.

“But this second option is now all but inevitable, and the sooner it happens the better.”

“If you want 100,000 Greeks pitching up here looking for jobs that is exactly the kind of silly language you would use”

Denis MacShane Former Europe minister

He suggested that Greece’s actions in running up unmanageable debts had been encouraged by its membership of the euro.

“The euro has exacerbated the financial crisis by encouraging some countries to behave as recklessly as the banks themselves,” he said.

“We are supposedly engaging in this bail-out system to protect the banks, including our own. But as long as there is the fear of default, as long as the uncertainty continues, confidence will not return across the whole of Europe.”

Britain did not pay anything towards the first Greek bail-out and UK ministers insist they do not expect to be asked to contribute to a second rescue package by the eurozone countries.

But Britain does contribute to the International Monetary Fund – which is also involved in Greek rescue efforts – through which it has loaned £1.9bn.

The UK last week almost doubled its annual subscription to the IMF – from £10bn to £19bn – but the Treasury insisted the deal was agreed before the debt crises in Greece, Ireland and Portugal.

Greek bail-out timelineMay 2010: EU and IMF agree bail-out package to prevent Greece defaulting on its debts; in return, Greece agrees to make 30bn euros of budget cuts over the next three yearsFebruary 2011: EU and IMF experts tell Greece it must make further cuts to keep recovery on trackApril 2011: EU figures reveal Greek deficit revised up to 10.5% of GDP, worse than previously thoughtMay 2011: Greece begins privatisation programme but is warned the IMF may not release more funds as Athens cannot guarantee it will remain solvent for next 12 monthsEurozone delays Greece decision Q&A: Greek debt crisis Viewpoint: Politics of Greek crisis

UK Independence Party leader Nigel Farage warned against contributing further towards a fresh Greek bail-out.

“The UK is a contributor to the IMF, so already UK money is being used indirectly to bail out Greece,” he said.

“In terms of throwing more money at the problem, how can the government expect British taxpayers to put up with that when at home they are enduring pay freezes or job losses?

“A fresh bailout for Greece should not involve the UK. Repeated transfusions will not resuscitate a corpse and the euro is dead.”

Former Labour Europe Minister Denis MacShane conceded that Greece should “probably not” have joined the euro in the first place.

But he argued it was in Britain’s self-interest to help prevent it defaulting on its debts and leaving the single currency.

And he attacked Boris Johnson’s call for Greece to be allowed to go bankrupt as “frivolous, flippant and irresponsible”.

“For a nation to go bankrupt would condemn its people to a long period of distress and misery, which would only create further immigration flows as Greek workers are forced to get on their bikes and seek employment elsewhere.”

He said Mr Johnson’s words – on the front page of a newspaper for which he writes regular opinion pieces – were more suited to a “gimcrack right wing columnist” than “the elected leader of a major city”.

“If you want 100,000 Greeks pitching up here looking for jobs that is exactly the kind of silly language you would use,” he added.

And he suggested it was Britain’s duty to come to the aid of a fellow European nation at a time when it was sending more in foreign aid to India and paying for military operations in Libya.

“If your neighbour’s house is on fire, you don’t refuse to lend it a hosepipe,” he added.

Countries most expose to Greek debt

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Update affects Tesco Bank systems

Some customers of Tesco Bank were unable to access accounts during an update of computer systems, the bank confirms.

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