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latest news

China
The great slowdown

24/07/2014: Signs the mammoth property bubble is finally bursting belie Beijing’s upbeat GDP data

  China

Trotsky
The first year of war

23/07/2014: Article by LEON TROTSKY translated into English for first time

  Trotsky

WW1
The Bolsheviks and the war

21/07/2014: The horrors of the first world war, and the economic and social turmoil it created, led to mass upheaval. In Russia alone did this lead to a successful revolution…

  World War 1

1914
The capitulation of the Second International

19/07/2014: Before 1914, the Second International resolved to act to prevent war…

  World War 1

South Africa
Metal workers’ strike

19/07/2014: Industrial action must take forward call for a new workers’ party

  Africa, South Africa

Britain
Abuse scandals reveal abusive system

18/07/2014: An Establishment cover-up?

  Britain

Sri Lanka
Vicious communalist attacks on Muslims

17/07/2014: USP mounts motor cycle ‘march’ to fight for united struggle against chauvinists

  Sri Lanka

World War One
100 years since the great slaughter

16/07/2014: Ten million killed and more than ten million seriously injured

  History, World War 1

Israel-Palestine
World outraged by Israeli State’s ferocious bombing of Gaza

15/07/2014: Mass action needed to end the slaughter and blockade!

  Israel / Palestine

History
Revolutionary US Teamsters

14/07/2014: Celebrating the 80th Anniversary of the 1934 Minneapolis Strikes

  History, US

Stop the bombing of Gaza – End Israeli state terror!

12/07/2014: Over 100 Gazans have been killed in one week, including 20 children

  Israel / Palestine

Europe
Junk Juncker, Cameron and the anti-worker EU

11/07/2014: "Cameron’s defeat was dire."

  Europe

Israel-Palestine
Netanyahu government fuels wave of protest

08/07/2014: Extracts and updates from a series of articles on the website of Socialist Struggle Movement, the Israel-Palestine section of the CWI.

  Israel / Palestine

Hong Kong
What next after massive July 1 demo?

07/07/2014: Battle-lines hardening as masses push for democracy while government steps up repression

  Hong Kong

Can capitalism put all of us first?

05/07/2014: A response to the “practical idealism” of the Common Weal

  Scotland

France
Hollande’s austerity plans must be blocked

04/07/2014: United private-public sector strike vital

  France

 Brazil
Solidarity with sacked Metro workers

04/07/2014: 42 workers sacked for going on strike

  Brazil, Solidarity

South Africa
220,000 metalworkers’ on strike

03/07/2014: Forward to a living wage – end labour broking

  South Africa

Australia
Thousands rally in Melbourne against East-West toll road

03/07/2014: Labour claim opposition to project but refuse to rip up contracts

  Australia

 Sri Lanka
Solidarity needed against nationalist attacks

02/07/2014: At least four people were killed and 100 injured in anti-Muslim attacks

  Solidarity, Sri Lanka

Video
Free Vadim Kuramshin

02/07/2014: Joe HIggins, Socialist Party (CWI) TD raises Vadim’s case in Irish parliament

  Kazakhstan

Argentina
Return to turmoil

01/07/2014: Debt crisis is back – the class struggle and tasks for the Left

  Argentina

Review
’Capital in the Twenty-First Century’

28/06/2014: Thomas Piketty: The new Marx?

  Review

South Africa
Victory in platinum miners’ strike!

27/06/2014: Significant step forward in the struggle for a living wage for all

  South Africa

Pakistan
Military launch offensive in North Waziristan

26/06/2014: Half a million people flee the area

  Pakistan

Britain
Coulson conviction - Cameron must resign!

26/06/2014: Call a general election now

  Britain

Iraq
Isis jihadists capture more territory

24/06/2014: Only organised, united working class can end war and social misery

  Iraq

Israel/Palestine
Protest in Tel Aviv against military raids

24/06/2014: Israeli nationalist thugs cowardly attacked Socialist Struggle Movement activists after the protest

  Israel / Palestine

Waging war on climate change

23/06/2014: The quickening pace of global warming poses a threat to US national security, says a leading, federally-funded military research organisation

  Environment

Pakistan
Scores killed in Taliban attacks on Karachi airport

19/06/2014: Workers need political movement to counter extremist ideology and capitalism

  Pakistan

Nigeria
200 school girls abducted

18/06/2014: Why has Boko Haram insurgency grown?

  Nigeria

Iraq
Oil war’s bloody legacy

17/06/2014: Escalating sectarian conflict threatens to draw in surrounding countries

  Iraq

 Hong Kong
Pro-Beijing newspaper launches attack on CWI

16/06/2014: 1989 massacre apologists accuse Socialist Action (CWI) and radical legislator ‘Long Hair’ of ‘violence’

  China, CWI, Hong Kong

Europe

Austerity locked-in with EU economic governance package

www.socialistworld.net, 05/10/2011
website of the committee for a workers' international, CWI

Implications of so-called "six-pack of economic governance measures", voted on in the European Parliament last week, are vast

Paul Murphy, MEP, Socialist Party (CWI Ireland), first published in the "Irish Left Review"

What was described by European Commission President as a “silent revolution” was passed in the European Parliament on Wednesday with hardly a mention in the mainstream media. The implications of the so-called six-pack of economic governance measures are vast. This package represents a qualitative leap forward in terms of the institutionalisation of austerity and neo-liberal economic policies at the heart of the EU and backwards in terms of a further undermining of democracy within the EU structures.

These pieces of legislation, ostensibly a response to the economic crisis, are actually a fulfilment of long-held desires by the capitalist establishment in Europe to develop a strong authority in the EU that would ensure that national governments implement austerity policies. The six-pack does this by establishing the European Commission as an effective policeman for austerity across Europe. It is also a step towards the fiscal unity that key sections of the establishment believe is necessary in order to save the euro.

Even if the media is ignoring it, the European establishment is aware of the significance of this victory from its point of view. Speaking in June 2010 about this package, European Commission President Barroso correctly stated that:

“The Member States have accepted - and I hope they understand it exactly - but they have accepted very important powers of the European institutions regarding surveillance, and a much stricter control of the public finances.”

What the package means:

In order to achieve this, the package centralises power in the hands of the un-elected European Commission, establishes a scoreboard of austerity, and gives the Commission power to impose massive fines on countries. There are many different elements to these six different pieces of legislation. However, the central basis of it is establishing a mechanism to put significant pressure on national governments to implement austerity and neo-liberal policies.

Essentially there are three key aspects of the mechanism to ensure that governments keep within neo-liberal economic orthodoxy. The first is the notion of “budgetary surveillance” and the “European semester”. What this means is a timetable across Europe for the presentation of draft national budgets at an early stage to the European Commission and Council. These draft budgets will be discussed by these bodies in advance of any discussion in national parliaments. The purpose of the discussions is clear - to put significant political pressure at an early stage on national governments to implement what the Commission and Council consider to be necessary policies.

The second is a qualitative strengthening of the “Growth and Stability Pact” - which limits countries’ public debt to 60% of GDP and annual deficits to 3% of GDP. In the past, this has been a relatively toothless mechanism, which has been ignored by both the major powers and the more peripheral less developed economies. Now this will be backed up by an enforcement mechanism.

Those who breach the targets and ignore warnings and recommendations from the Commission will be faced with a fine, consisting of either an “interest-bearing deposit” or a “non interest-bearing deposit” equivalent to 0.2% of GDP, which will be converted into a fine if the situation does not improve. This fine can then be increased with repeated failure to follow the Commission’s recommendations. These fines will amount to hundreds of millions of euro - being taken out of the pockets of states that are evidently facing real financial difficulties.

The third is the extension of this enforcement mechanism well beyond the strictures of the “Growth and Stability Pact”. Now countries will be monitored not just on their public debt and their annual deficit, but on a range of other measures as part of a “scoreboard” system. The details of what will be measured has still not been revealed, but Commission recommendations are to “cover the main economic policy areas, potentially including fiscal and wage policies, labour markets, product and services markets and financial sector regulation.” (’Prevention and Correction of Macroeconomic imbalances‘).

This gives a sense of how these proposals are not simply about tackling excess debt of deficits - but about giving the Commission a means to push right-wing economic policies generally and put pressure on countries to liberalise their labour markets and public services. Failure to act in response to warnings and recommendations from the Commission on the scoreboard issues, or being deemed to have acted “imprudently”, will open countries up to face fines. This is clearly a way for the Commission to push neo-liberal policies generally - including the liberalisation of the labour market and the privatisation of public services.

Assault on democracy

One of the most obnoxious features of this package is the fact that the already extremely limited democracy within the EU has been trampled upon in order to ensure that this austerity will rule. This attack takes a number of forms.

One is the strengthening of the power of the Commission. The majority in the European Parliament voted for a number of amendments designed to strengthen the power of the Commission. This is always the position of the right-wing in the Parliament who see the Commission as an ally in the fight for a “European” position as opposed to one rooted in the interests of the countries represented at the Council. The effect, however, is to remove decision making even further from ordinary people. The role of the Commission from the point of view of the establishment is to articulate a “European” strategy for the capitalist class in Europe. It is able to do this because it is relatively immune from the political pressure that national governments can face - precisely because the Commissioners exist in a bubble in Brussels and don’t have to face election.

Another attack is the stripping of the right to vote from “miscreant” countries on the question of sanctions. So if the Commission proposes that a country be punished by a fine of hundreds of millions of euro for example, that country and all other countries that have been deemed to be acting imprudently and have been subject to sanctions will not have a vote in this decision. You could therefore have a situation where most of the peripheral European countries have their votes taken away from them and it is the Northern European countries who are voting on the sanctions to be applied to these countries.

The other element is how this voting is to take place. The six-pack introduces a new form of voting which is breathtaking in its cynicism. Instead of a straight vote with a need for a majority of countries, or the traditional qualified majority system (which means getting 255 weighted votes out of 345, representing at least two thirds of the countries and at least 62% of the EU population), the qualified majority system is turned on its head. Now it is referred to as “Reverse qualified majority” voting. What this means is that the Council is presumed to agree with the sanctions, unless a qualified majority vote against it. This means that to overturn the sanctions, you would need to get a huge majority to vote against it. So even if the peripheral European nations still had their votes, they wouldn’t have a chance of defeating it if the major northern European governments were in favour of it! Of course, this was fully endorsed by the Parliament, and the agreed document (Enforcement measures to correct excessive macroeconomic imbalances in euro area ) argues that the procedure for the application of the sanctions should be “construed in such a way that the application of the sanctionon those Member States would be the rule and not the exception.”

Who is driving this agenda and why?

It is not indulging in conspiracy theorising to suggest that a large element of this six-pack is making sure not to “waste a good crisis”. This is posed as a response to the economic crisis. It is no such thing. It is part of the march of entrenching neo-liberal orthodoxy across Europe. The Corporate Europe Observatory (www.corporateeurope.org), an excellent research and campaign group working against the power of corporate lobbyists in the EU, has established how the major organisation of big business on a European level, the European Roundtable of Industrialists (ERT), has been pushing for such an agenda for over a decade.

Their chairman proclaimed in 2000 that a “double revolution” was underway. “On the one hand we are reducing the power of the state and of the public sector in general through privatization and deregulation… On the other we are transferring many of the nation states powers to a more modern and internationally-minded structure at European level. European unification is progressing and it helps international businesses like ours.” In 2002, the ERT were calling for ”at the drafting stage, the implications of national budgets and of major national fiscal policy measures [to be] reviewed at the level of the Union” - precisely what will now happen.

European big business wants this, because, like their political representatives in the establishment parties, they want the certainty of knowing that what they deem to be “prudent” policies will be implemented. The uncertainty of democratic debate and discussion with different economic policy options on offer is simply too much of an inconvenience. Likewise, the ability of mass movements to put pressure on their governments to withdraw some of their worst attacks is a threat to the certainty of austerity. Therein lies the need for a central authority (the Commission) that through its sanctions and political pressure will act as a counterweight to the pressure of potential mass movements.

Can this package be stopped?

The Council is due to discuss and finally agree this six-pack on 4 October, which means that the package will enter into force at the end of 2011 or at the latest by the start of 2012. Effectively, the battle inside the institutions of the Parliament and the Council has been lost, given the overwhelming majority for the right-wing parties (including so-called social-democracy) in both institutions.

The battle now moves onto the plane of the streets and the protest movements. The movement against cuts and attacks that are aimed at making working people pay for the economic crisis is redeveloping in southern Europe. A major mobilisation by the unions is being organised in Portugal, while Greece will see a general strike on 19 October. While Ireland is currently behind these developments, with the passage of time and in particular the passage of their own savage budget in December, the ability of the new government to blame the old government and avoid facing responsibility and major movements will be reduced.

The Left has a crucial responsibility to build these movements and also to intervene into them, raising the need for a European-wide fightback as well as putting forward a socialist alternative to this crisis of capitalism. With lies being told about “lazy Greeks”, it is particularly important to stress the similar problems that working people face across Europe and raise the need for a common fight-back, including a 24 hour general strike against austerity across Europe. Part of this intervention must be publicising the effect of this economic governance package and injecting opposition to this European shock doctrine into the movements.

Paul Murphy is the Irish Socialist Party / United Left Alliance (ULA) MEP for the Dublin constituency



Europe

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NEWS

China: The great slowdown
24/07/2014, Vincent Kolo, chinaworker.info:
Signs the mammoth property bubble is finally bursting belie Beijing’s upbeat GDP data

South Africa: Metal workers’ strike
19/07/2014, By Workers and Socialist Party (WASP – South Africa) Reporters:
Industrial action must take forward call for a new workers’ party

Britain: Abuse scandals reveal abusive system
18/07/2014, Hannah Sell, Socialist Party, Deputy General Secretary:
An Establishment cover-up?

Sri Lanka: Vicious communalist attacks on Muslims
17/07/2014, Siritunga Jayasura, United Socialist Party (CWI in Sri Lanka):
USP mounts motor cycle ‘march’ to fight for united struggle against chauvinists

History: Revolutionary US Teamsters
14/07/2014, Alan Jones and Ty Moore, Socialist Alternative:
Celebrating the 80th Anniversary of the 1934 Minneapolis Strikes

Stop the bombing of Gaza – End Israeli state terror!
12/07/2014, Text of Socialist Party (CWI in England & Wales) leaflet:
Over 100 Gazans have been killed in one week, including 20 children

Europe: Junk Juncker, Cameron and the anti-worker EU
11/07/2014, Peter Taaffe, Socialist Party (CWI in England & Wales) general secretary:
"Cameron’s defeat was dire."

Britain: Millions of public sector workers prepare to strike
09/07/2014, Hannah Sell, Socialist Party (CWI in England & Wales) deputy general secretary:
Build workers’ movement

Israel-Palestine: Netanyahu government fuels wave of protest
08/07/2014, Socialistworld.net:
Extracts and updates from a series of articles on the website of Socialist Struggle Movement, the Israel-Palestine section of the CWI.

Hong Kong: What next after massive July 1 demo?
07/07/2014, Vincent Kolo, chinaworker.info:
Battle-lines hardening as masses push for democracy while government steps up repression

France: Hollande’s austerity plans must be blocked
04/07/2014, Alex Rouillard, Gauche Revolutionnaire (CWI in France):
United private-public sector strike vital

Brazil: Solidarity with sacked Metro workers
04/07/2014, socialistworld.net:
42 workers sacked for going on strike

Venezuela: Successful workers’ and popular march in Barquisimeto
04/07/2014, Socialismo Revolucionario (CWI in Venezuela) reporters:
Photo report of march

South Africa: 220,000 metalworkers’ on strike
03/07/2014, Mametlwe Sebei, Workers’ and Socialist Party (WASP) Deputy President:
Forward to a living wage – end labour broking

Australia: Thousands rally in Melbourne against East-West toll road
03/07/2014, Chris Dite, Socialist Party (CWI in Australia):
Labour claim opposition to project but refuse to rip up contracts

Sri Lanka: Solidarity needed against nationalist attacks
02/07/2014, Keerthikan Thennavan, Tamil Solidarity:
At least four people were killed and 100 injured in anti-Muslim attacks

Video: Free Vadim Kuramshin
02/07/2014, socialistworld.net:
Joe HIggins, Socialist Party (CWI) TD raises Vadim’s case in Irish parliament

South Africa: Victory in platinum miners’ strike!
27/06/2014, Workers’ and Socialist Party (WASP) statement:
Significant step forward in the struggle for a living wage for all

Pakistan: Military launch offensive in North Waziristan
26/06/2014, Khalid Bhatti , SMP (CWI in Pakistan):
Half a million people flee the area

Britain: Coulson conviction - Cameron must resign!
26/06/2014, Judy Beishon, Socialist Party executive committee:
Call a general election now

Israel/Palestine: Protest in Tel Aviv against military raids
24/06/2014, Socialist Struggle Movement (CWI in Israel/Palestine) reporters:
Israeli nationalist thugs cowardly attacked Socialist Struggle Movement activists after the protest

Waging war on climate change
23/06/2014, Manny Thain, from Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
The quickening pace of global warming poses a threat to US national security, says a leading, federally-funded military research organisation

Pakistan: Scores killed in Taliban attacks on Karachi airport
19/06/2014, Khalid Bhatti, Socialist Movement Pakistan (CWI), Lahore:
Workers need political movement to counter extremist ideology and capitalism

Hong Kong: Pro-Beijing newspaper launches attack on CWI
16/06/2014, Dikang, Socialist Action in Hong Kong:
1989 massacre apologists accuse Socialist Action (CWI) and radical legislator ‘Long Hair’ of ‘violence’

Brazil: Solidarity protests internationally
16/06/2014, Socialistworld.net:
More pictures from solidarity protests around the world

Brazil: World Cup opening coupled with continuing protests and strikes
13/06/2014, Socialistworld.net:
A few pictures and a video from the protests and CWI intervention

CWI Comment and Analysis

ANALYSIS

Trotsky: The first year of war
23/07/2014, Originally published in in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Article by LEON TROTSKY translated into English for first time

WW1: The Bolsheviks and the war
21/07/2014, Peter Taaffe, article originally published in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
The horrors of the first world war, and the economic and social turmoil it created, led to mass upheaval. In Russia alone did this lead to a successful revolution…

1914: The capitulation of the Second International
19/07/2014, Robert Bechert (a longer version of an article published in the July/August 2014 issue of Socialism Today):
Before 1914, the Second International resolved to act to prevent war…

World War One: 100 years since the great slaughter
16/07/2014, Tony Saunois, article originally published in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Ten million killed and more than ten million seriously injured

Israel-Palestine:World outraged by Israeli State’s ferocious bombing of Gaza
15/07/2014, Judy Beishon, from The Socialist (weekly newspaper of the Socialist Party – CWI England & Wales):
Mass action needed to end the slaughter and blockade!

Can capitalism put all of us first?
05/07/2014, By Philip Stott:
A response to the “practical idealism” of the Common Weal

Argentina: Return to turmoil
01/07/2014, Danny Byrne, CWI:
Debt crisis is back – the class struggle and tasks for the Left

Review: ’Capital in the Twenty-First Century’
28/06/2014, Hannah Sell, Socialist Party (CWI England and Wales):
Thomas Piketty: The new Marx?

Iraq: Isis jihadists capture more territory
24/06/2014, Niall Mulholland, CWI:
Only organised, united working class can end war and social misery

Nigeria: 200 school girls abducted
18/06/2014, By Segun Sango, National Chairperson, Socialist Party of Nigeria (SPN), a party initiated by the DSM (CWI in Nigeria):
Why has Boko Haram insurgency grown?

Iraq: Oil war’s bloody legacy
17/06/2014, Judy Beishon, from The Socialist, weekly paper of the Socialist Party (CWI England & Wales):
Escalating sectarian conflict threatens to draw in surrounding countries

Ukraine: Hundreds killed in military clashes
13/06/2014, Rob Jones, CWI, Moscow:
Working people fearing all-out war

Review: ’The Snowden Files’
12/06/2014, Clare Doyle, from Socialism Today (June 2014 issue), monthly magazine of the Socialist Party (CWI in England and Wales):
Exposing the ‘architecture of oppression’

Britain: The Battle of Orgreave
11/06/2014, Ken Smith, from Socialism Today (June 2014 issue), monthly magazine of the Socialist Party (CWI in England and Wales):
1984 state-organised riot against striking miners

Brazil: Homeless struggle and Metro strike as World Cup approaches
09/06/2014, André Ferrari, LSR (CWI in Brazil):
New stage of the class struggle

Euro polls warning
05/06/2014, Robert Bechert, CWI:
In country after country, May’s elections to the European parliament saw governments and traditional parties defeated

2014: The ’rejection election’
30/05/2014, Hannah Sell, Socialist Party (CWI in England and Wales):
Now Trade Unions must lead our fightback

Ireland: Electoral surge against austerity
28/05/2014, Danny Byrne, CWI:
Socialist Party wins a second TD and Anti Austerity Alliance 14 councillors

Euro elections: A revolt against the capitalist establishment
27/05/2014, Peter Taaffe, general secretary of the Socialist Party (CWI in England and Wales):
Gains for the far right but some successes for genuine Left

Turkey: Mass protest and strikes erupt against AKP government and mine-owning cronies
15/05/2014, Socialistworld.net:
Soma mine disaster deadliest in the country’s history

China: What lies behind anti-corruption drive?
13/05/2014, Editorial from Socialist 《社会主义者》magazine (issue 26) (CWI):
Case against former security czar risks dangerous splits in ruling party

Nigeria: Boko Haram’s abduction of school girls horrifies the world
12/05/2014, Hassan Taiwo Soweto, Democratic Socialist Movement (CWI Nigeria), Lagos:
Can a solution to the insurgency be found under capitalism?

Ukraine: Descending into bloody conflict
09/05/2014, Rob Jones, Moscow:
Only united working class action can stop the catastrophe

South Africa: Elections 2014
09/05/2014, By Weizman Hamilton, General Secretary of WASP:
The ANC victory, WASP and the EFF.

Algeria: Abdelaziz Bouteflika sworn in for a fourth presidential term
07/05/2014, Serge Jordan, CWI:
Instability sets to grow