In full: Prime Minister's Questions

Welcome to our live coverage of this week's Prime Minister's Questions. David Cameron will take questions from Labour leader Ed Miliband and backbenchers from across the Commons in a session which looks likely to be dominated by the economy.

Mr Cameron is on his feet in the Commons.

The first question, from Tory MP Karen Bradley, is about the IMF's recent analysis of the coalition's deficit reduction strategy. The PM repeats IMF head Christine Lagarde's comments and says Labour left a "catastrophic inheritance".

Ed Miliband is on his feet and his first question is about the Beecroft report into employment law - a source of division between the Conservatives and Lib Dems.

The PM says the Beecroft report contained a "number of excellent ideas" and the "best measures" will be taken forward.

The Labour leader is focusing on measures to make it easier for firms to hire and fire workers. He says the Lib Dems think the plan is "bonkers", but the Tories think it is positive. He asks which side the prime minister is on.

The PM says the government is consulting on the measure. He runs through a list of plans to reform labour markets and says that Labour cannot back any of them because of their links to the trade unions.

Ed Miliband says ordinary workers do not get a "second chance", comparing their employment rights and treatment to that of government ministers and advisers such as Andy Coulson and Jeremy Hunt.

More from Ed Miliband - the plan is a "symbol of the government's failure on growth".

Mr Cameron raises Labour's financial backing from the trade unions - listing a series of donations from Unite and Labour's "silence" on plans for a Jubilee weekend strike.

Mr Miliband ends his six questions by saying the plans show the "nasty party is back".

We are now onto backbench questions. The PM says the whole country was "shocked" by the theft of a memorial plaque to victims of the IRA bombing in Warrington.

A question from Labour's John Mann on youth unemployment. In response, the PM talks up the success of the government's work experience scheme which he says has much more impact than other programmes.

In response to a question on NHS waiting times, Mr Cameron says the number of people waiting more than 18 weeks for non-urgent appointments has fallen and the government has passed "the test with flying colours".

Here's a question on prisoners voting, from DUP MP Nigel Dodds. The PM says those sent to prison should lose the right to vote and reiterates his opinion that Parliament should have the final say.

Labour MP Jack Dromey reminds the PM that his party has just taken control of Birmingham Council and needs help with their growth agenda. The PM says he will meet with its new leaders but questions whether the council will continue to provide its previous value for money.

Labour's Iain Wright says unemployment in his constituency is now higher than when the coalition came to power. But the PM counters that youth unemployment is down since April 2010.

After a question from Tory MP Paul Maynard on a recent case of child neglect in his constituency, the PM says child protection agencies need to work coherently together to deal with such cases and he believes more legislation in the area is not needed.

A question from Lib Dem MP Julian Huppert on support for science. Mr Cameron says science could have been an "easy target" for spending cuts, but it has been protected because it is "key to Britain's future".

A question on police funding gives Mr Cameron the opportunity to say the coalition has had "the courage" to introduce much-needed reforms. He then goes on to back new laws making squatting a criminal offence.

In response to a question from Labour's Keith Vaz, the prime minister says the government needs to do more to "get on top" of immigration queues at Heathrow and criticises undeserved bonuses for staff at the UK Border Agency.

Labour MP Nic Dakin suggests the PM is listening to a "clique" of wealthy donors rather than ordinary people. But the PM says that Labour is far more beholden to the unions, joking that they "own the party lock, stock and block vote".

There is an uproar in the Commons after Mr Cameron says that people should not listen to the "muttering idiot" sitting across the Chamber - a jibe aimed at Ed Balls.

Speaker John Bercow asks Mr Cameron to withdraw the term "idiot", which the prime minister does.

Mr Cameron says he is happy to withdraw the word - saying he would substitute it with "the person who left the UK with a huge deficit".

Mr Cameron welcomes a new defence contract won by the firm BAE to supply hawk trainer jets to Saudi Arabia.

Labour leader Ed Miliband exploited coalition tensions over Beecroft but there was always a risk that he would be accussed of appeasing his union paymasters when denouncing changes to employment laws. At the moment he can score points, but the atmosphere may have been different if the narrow vote against industrial action by Unite's tanker drivers had gone the other way

The PM clearly anticipated that Labour would steer clear of the IMF so had a question from his own benches lined up.

There was widespread disturbance in the house when the PM called Ed Balls a "muttering idiot"' - he has been long needled by the shadow chancellor. The PM has denounced him before - suggesting he was the most annoying person in British politics. This time round Mr Balls was persistently reminding the PM from a sedentary position that Britain was in recession.

Tory MP Philip Davies jokes that he and the prime minister agree on many things, "such as the fact that I should never be promoted". He goes onto to ask a serious question about public sector pensions reform.

As Mr Cameron says the pensions of judges are treated differently from other public sector workers, a number of MPs shout "why".

We come to the end of this week's session. After the last question, Speaker John Bercow reveals that Burmese opposition leader Aung San Suu Kyi will address both Houses of Parliament during her visit to the UK next month.

Mr Cameron welcomes the news of the Burmese leader's parliamentary address saying she is a "remarkable testament" to the change that it happening in the country.

The prime minister now opens his statement on the recent NATO and G8 summits. He says that he and other leaders - including President Obama and President Hollande - agreed on the need for action on both deficits and growth.

Moving on to the eurozone, Mr Cameron says next month's election in Greece should be a "straightforward choice" on whether it should stay in the euro - saying the issue cannot be "fudged" anymore.

He says the UK and other countries should make "contingency plans" for Greece either remaining in, or leaving, the single currency.

The PM moves onto issues surrounding NATO and the mission in Afghanistan. He says that attacks from insurgents are down and that the process of handing responsibility for security to Afghan troops is "on track".

Post PMQs Labour are briefing that David Cameron is increasingly losing his temper, saying that's because he is losing the economic argument. Asked why they didn't raise the IMF report, a Labour spokesman said because some of the proposals in the Beecroft hadn't been dropped despite the myth that they had.

The PM ends his statement by paying tribute to British troops who have been in Afghanistan for more than 10 years, saying that they have helped reduce the number of threats to the UK emanating from the region.

Labour leader Ed Miliband is now making his response to the Prime Minister's statement. He echoes the PM's support for British troops, saying they have performed "heroically" and should be brought back to the UK in "the right way".

Ed Miliband jokes about David Cameron's relationship with French President Francois Hollande, quoting an article from a French newspaper suggesting the PM backed his opponent Nicolas Sarkozy.

Europe is "divided" over the issue about how to confront its economic problems, Mr Miliband says. He describes the PM as the "high priest of austerity" and says the UK and Germany are merely calling for "more of the same".

Mr Miliband notes that Mr Cameron found time during the G8 summit to go to the gym, watch the Champions League final and go sightseeing - he asks where the photo was of him doing his bit to revitalise the global economy

Referring to Mr Cameron's recent call for the eurozone to "either make up or break up", Mr Miliband says the phrase may have rhymed but it did nothing to help Europe's economies or our own.

Wrapping up his speech, Mr Miliband says the PM is failing to deliver growth in the UK or help Europe do the same.

Mr Cameron now has his chance to answer the Labour leader's points on the eurozone. He notes that Ed Miliband had put forward no plan. He quotes French President Francois Hollande as saying unsustainable levels of debt are an "enemy to the left and to France". He urges Mr Miliband to say something similar.

David Cameron and Ed Miliband continue to spar over Greece. The prime minister suggests that not even the most left-leaning parties in Greece were backing Labour calls for increased spending.

We are now onto backbench contributions on Europe and Afghanistan. Former Labour chancellor Alistair Darling says there has been a "change in rhetoric" in Europe over austerity but he doubts whether this will be backed upon by "credible and convincing" growth solutions.

Conservative MP John Redwood says the solution to Europe's problems must lie in a private sector-led recovery and not "cheap money" doled out by the state.

Veteran Labour MP Gerald Kaufman accuses President Obama of "offensive discourtesy" for not being willing to receive the Pakistani prime minister and suggests the US has violated Pakistan's sovereignty on many occasions. The PM disagrees, saying he "would not put it like that".

We are now in the middle of a series of questions on Europe. Eurosceptic MP Bill Cash calls for a referendum on UK membership but the PM says this should only happen if more powers are handed over. Mr Cameron agrees with Mr Cash that the UK must decide how to respond to calls for greater political union across the eurozone.

The prime minister restates his opposition to a tax on financial transactions in Europe - a plan favoured by some across the channel, including many politicians in France and Germany.

Asked about the future of NATO, Mr Cameron says there is a lot of "duplication" of military resources and assets across Europe and other countries need to take "difficult and painful" decisions on their capabilities.

Post PMQs, David Cameron's spokesman said the PM had "a very clear view" that it was up to parliament to decide on prisoner voting. However he also said the government would be considering yesterday's judgment and would respond in due course - which could be in six months' time. Asked how this sat with an apparently unequivocal statement from the PM, the spokesman says "we have to see in practice what the judgment means - we were only given it yesterday" and had to look at the detail of it.

Conservative MP Richard Ottaway praises the PM's stamina, suggesting he will have attended three summits in five days in two continents. Mr Cameron seems happy to accept the comment and says there will be a bit of a break from summits afterwards.

A typically colourful contribution from Tory MP Peter Bone. He says the euro is as "dead as Monty Python's parrot" and an orderly break-up of the single currency zone is needed. Mr Cameron says the eurozone must resolve its own problems and there are "dangers of disorderly exits" from the single currency.

The PM's spokesman said tonight's informal summit will discuss the situation in Greece. The problems in the eurozone, however, are primarily for the eurozone to sort out. The PM backs moves towards greater fiscal integration and burden sharing between eurozone countries and he has talked of the benefits of eurobonds on a number of occasions but it was up to the countries inside the zone to decide the exact means of tackling their difficulties, he added.

The PM's spokesman also tells us Mr Cameron wants to see more growth in the EU but fiscal consolidation was a prerequisite for growth. There will be no press conference by the PM in Brussels and no communique as this is an informal meeting - but there would be a press conference by EU president Herman Van Rompuy - probably in the early hours of the morning.

Back in the Commons, an unusual exchange as the PM apologises to Dennis Skinner, saying that he regretted urging the Labour MP at a previous session to collect his pension. The PM says this response was "too sharp" and suggests Mr Skinner is a "tremendous ornament" to Parliament.

On a different subject, Labour's Chris Bryant calls on the UK to pay more attention to what he says are "major human rights abuses" in Russia. The PM says he discusses these issues regularly with Moscow but says it is beneficial that Russia is a member of the G8.

Independent MP Denis MacShane suggests the Greek Orthdox Church and its shipping industry "do not pay a penny in tax" while spending on defence is much higher than in the UK and other countries. The PM says "genuine reform" is needed in Greece and urges a culture of "straightforward, honest politics" there.

Labour's Jeremy Corbyn takes a different view on Greece. He says the austerity measures forced on the country are causing "misery" to ordinary people and show be slowed down.

The issue of Iran and its nuclear programme is raised for the first time. Mr Cameron says the international community must "maximum its pressure" on Tehran to "take a different path". He suggests sanctions on oil are beginning to bite.

Here is an interesting statistic from Conservative MP John Baron. He says 80 countries have left a currency bloc since 1945 and most have benefited from this. But Mr Cameron says the current eurozone situation is rather different as Europe's banks are now so "intertwined".

Mr Cameron has been fielding questions for almost half an hour. Labour's Keith Vaz asks about G8 and NATO policy on Yemen following the deadly explosion there earlier this week. He says a "stable Yemen" is desperately needed to deny a space to Al-Qaeda.

Back on the future of Afghanistan and Pakistan, Mr Cameron says outsiders need to understand the suffering caused in Pakistan by terrorist attacks and continue to respect its sovereignty.

Mr Cameron says the UK is not going to contribute to future Greek bailouts and it is "very challenging" for other eurozone governments who have to make the case for doing so to their people.

Labour's Geraint Davies compares international support for Greece to "half a fish" that is leaving its people hungry. He urges sustainable investment in areas like better broadband and transport links. The PM says Greece has failed in recent years to get to grips with the "fundamental changes" needed to boost its productivity.

Labour MP Dan Jarvis, a former soldier, says he is worried about the lack of political progress in Afghanistan and urges Mr Cameron to "re-energise" the process. Mr Cameron says he respects Mr Jarvis' views but he disagrees with him.

Conservative MP Amber Rudd suggests some G8 nations are failing to meet commitments on international aid to the world's poorest countries. The PM says the G8's annual accountability report will detail what has been delivered in "black and white".

The last question is from Conservative Harriet Baldwin. She says she supports the plan for a Global Hunger Day during the Olympics. Mr Cameron says the Olympics is "good opportunity" to highlight the issue of famine and malnutrition.

Mr Cameron has now left the Commons chamber and that ends our live coverage. You can follow Danny Alexander's statement on public sector tax arrangements on Democracy Live.