Greeks are waiting for a possible television address tonight by George Papandreou, their prime minister, on the country’s fiscal plight. If he does speak, the likelihood is that he will go further than before in accepting tougher measures will be needed to bring down the public sector deficit. Pressure he faced in Davos last week from global financial world leaders appears to have had an effect, and the Greek premier seems keen to get his retaliation in before the European Commission pronounces on his government’s plans tomorrow.

Still, past form suggests Mr Papandreou will not go far enough to calm financial markets. Greek politics appears to be preventing rapid changes in direction, even with the country facing a real risk of default. Read more