deutsch |  english |  español  |  français  |  italiano  |  nederlands  |  polski  |  português  |  svenska  |  türkçe  |  中文  |  عربي  |  русский

latest news

Britain
The struggles to come

27/05/2015: No fundamental change to be expected from the Labour Party

  Britain

Hong Kong
Cathay Pacific workers to strike in August

26/05/2015: Protesting cabin crew at Hong Kong airport explained their grievances to Socialist Action reporters

  Hong Kong

Canada’s ‘carbo-state’

26/05/2015: Only a socialist alternative can challenge the carbo-capitalists’ grip on Canadian politics

  Canada, Environment

New Zealand
Victory over zero-contract hours

24/05/2015: ‘Cotton On’ clothes retailer workers defeat attempt to remove rest and meal breaks

  New Zealand

Iraq/Syria
ISIS rout national armies at Ramadi and Palmyra

23/05/2015: United working class movement needed to sweep away sectarian militias and reactionary politicians

  Iraq, Syria

Britain
Labour leadership contest - appealing to big business

22/05/2015: The Labour leadership contest begs the question: what is the point of the Labour Party?

  Britain

Ireland North
Election marks growing rejection of sectarian status quo

21/05/2015: Opportunities to build new anti-sectarian political voice for working class and youth

  Ireland Republic

Spain
Is Podemos in crisis?

20/05/2015: Left and social movements in a state of flux, as key elections loom

  Spain

Britain
Build a movement to defeat Tories’ cuts savagery

20/05/2015: For massive union demonstrations, linked to a 24-hour general strike

  Britain

Ireland South
Vote ‘Yes’ to marriage equality!

19/05/2015: Referendum a product of long-waged campaign of struggle from below

  Ireland Republic

Greece
Subordination to Troika or rupture with austerity?

18/05/2015: The choices before the Greek working class

  Greece

North Cyprus
‘Moderate leftist’ wins presidential election on peace ticket

16/05/2015: Workers’ common front, north and south, can find solution to island’s division

  Cyprus

Chile
Huge demonstrations call for free education

15/05/2015: New chapter opens in country’s political and ‘moral’ crisis

  Chile

Australia
East-West toll road dispute concluded

15/05/2015: Local community direct action secures victory

  Australia

Ireland
Parliament suspended after PM tells Socialist MPs “where to go”

14/05/2015: Contemptuous remarks reflect government concerns over non-payment of water charges

  Ireland Republic

Britain
Organising against Tory austerity starts now

14/05/2015: Potential for industrial response to cuts but needs determined leadership and campaigning

  Britain

 Video
Joe Higgins TD questions former ECB president Jean Claude Trichet

13/05/2015: "When bankers and bondholders’ gambles crashed, their massive burden of private debt was placed onto the shoulders of the Irish people"

  Ireland Republic, Video

Sudan
Mass apathy towards elections

12/05/2015: Renewed struggle from below needed to put an end to Bashir’s rule

  Sudan

USA
Presidential candidate declares "political revolution" against billionaires

12/05/2015: Campaign needs to build independent political power

  US

Britain
Fight against "five more damned years" of Tory rule

12/05/2015: Labour leader’s ’responsible capitalism’ shows its bankruptcy

  Britain

China
“In a hard landing now”

11/05/2015: Stock market frenzy and fabricated GDP figures cannot hide the reality of an economy in deep trouble

  China

Scotland
Labour annihilated

11/05/2015: SNP sweeps to victory by posing as an anti-austerity alternative

  Scotland

Britain
With the votes of 24% of the electorate, Tories have no mandate for more savage cuts

11/05/2015: Labour’s failure puts centre stage the need for new mass anti-austerity force

  Britain

Poland
65,000 workers demonstrate against governments’ policies

07/05/2015: Plan of action for a general strike needed

  Poland

Ireland North
Socialist Party replies to leading Sinn Fein councillor’s attacks

06/05/2015: How to fight cuts, sectarianism and to build workers’ unity

  Ireland North

Britain
Russell Brand mistaken to sow illusions in Labour

06/05/2015: Russell Brand calls on people to elect a Labour government, saying Ed Miliband will ’listen’ and wants pressure from below

  Britain

May Day 2015
International workers’ day marked by marches and rallies

05/05/2015: Photo gallery of the CWI taking part in May Day event across the world

  May Day

Iceland
Fighting for better wages

05/05/2015: General strike called for 26 May

  Iceland

May Day 2015
Socialist plan or capitalist chaos

01/05/2015: What sort of new society are we struggling for?

  May Day

Nepal
Disaster in Nepal –amplified by capitalism

30/04/2015: Nepal, one of the poorest countries in the south Asian region has been further devastated by the recent earthquake.

  Nepal

US
Rage in Baltimore

29/04/2015: The aftermath of Freddie Gray’s death

  US

Book review
’No place to hide: Edward Snowden, the NSA and the US Surveillance state’

29/04/2015: What the 1% will do to defend their class interests

  Review, US

 May Day 2015
Resisting austerity, exploitation, wars and oppression

28/04/2015: 125 years since first May Day – Build a united workers’ movement for socialism!

  CWI, May Day

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

 video

Pakistan: Jawad Ahmad speaking at May Day rally held by International Youth and Workers Movement, 18/05/2015

 further videos

CWI - get involved


solidarity

tamil solidarity campaign kazakhstan

featured links

Socialist Party Ireland

cwi links

Marxist.net, CWI marxist archive

cwi comment & analysis

world economic crisis

analysis and commentary


cwi publications

marxism in today's world che

Che Guevara: Símbolo de Lucha

Por Tony Saunois

A socialist world is possible, the history of the cwi with new introduction by Peter Planning green growth, a contribution to the debate on enviromental sustainability

NEWS

Hong Kong: Cathay Pacific workers to strike in August
26/05/2015, Chinaworker.info:
Protesting cabin crew at Hong Kong airport explained their grievances to Socialist Action reporters

New Zealand: Victory over zero-contract hours
24/05/2015, Joe Kelly, CWI NZ/Aotearoa:
‘Cotton On’ clothes retailer workers defeat attempt to remove rest and meal breaks

Britain: Labour leadership contest - appealing to big business
22/05/2015, Sarah Sachs-Eldridge, Socialist Party (CWI in England & Wales):
The Labour leadership contest begs the question: what is the point of the Labour Party?

Britain: Build a movement to defeat Tories’ cuts savagery
20/05/2015, Editorial from The Socialist, weekly paper of the Socialist Party (CWI England & Wales):
For massive union demonstrations, linked to a 24-hour general strike

Ireland South: Vote ‘Yes’ to marriage equality!
19/05/2015, From the Socialist Party (CWI Ireland) website:
Referendum a product of long-waged campaign of struggle from below

Greece: Subordination to Troika or rupture with austerity?
18/05/2015, Editorial from Xekinima (no. 410, 6-20 May 2015), fortnightly newspaper of CWI Greece:
The choices before the Greek working class

Pakistan: Jawad Ahmad speaking at May Day rally held by International Youth and Workers Movement
18/05/2015, Socialistworld.net:
Video of May Day Rally and concert in Lahore

North Cyprus: ‘Moderate leftist’ wins presidential election on peace ticket
16/05/2015, Athina Kariati, New Internationalist Left (CWI in Cyprus):
Workers’ common front, north and south, can find solution to island’s division

Chile: Huge demonstrations call for free education
15/05/2015, Patricio Guzman, Socialismo Revolcuionario (CWI in Chile):
New chapter opens in country’s political and ‘moral’ crisis

Australia: East-West toll road dispute concluded
15/05/2015, Socialist Party (CWI Australia) Reporters:
Local community direct action secures victory

Ireland: Parliament suspended after PM tells Socialist MPs “where to go”
14/05/2015, Socialistworld.net:
Contemptuous remarks reflect government concerns over non-payment of water charges

Britain: Organising against Tory austerity starts now
14/05/2015, John McInally, Public and Commercial Services Union national Vice-President (personal capacity), from the Socialist Party (CWI England & Wales) website:
Potential for industrial response to cuts but needs determined leadership and campaigning

Video: Joe Higgins TD questions former ECB president Jean Claude Trichet
13/05/2015, Socialistworld.net:
"When bankers and bondholders’ gambles crashed, their massive burden of private debt was placed onto the shoulders of the Irish people"

Sudan: Mass apathy towards elections
12/05/2015, Sudanese CWI supporter:
Renewed struggle from below needed to put an end to Bashir’s rule

Scotland: Labour annihilated
11/05/2015, :
SNP sweeps to victory by posing as an anti-austerity alternative

Britain: With the votes of 24% of the electorate, Tories have no mandate for more savage cuts
11/05/2015, Socialist Party (CWI in England & Wales):
Labour’s failure puts centre stage the need for new mass anti-austerity force

Poland: 65,000 workers demonstrate against governments’ policies
07/05/2015, Alternatywa Socjalistyczna (CWI Poland) Reporters:
Plan of action for a general strike needed

Britain: Russell Brand mistaken to sow illusions in Labour
06/05/2015, Sarah Sachs-Eldridge, Socialist Party (CWI in England & Wales):
Russell Brand calls on people to elect a Labour government, saying Ed Miliband will ’listen’ and wants pressure from below

May Day 2015: International workers’ day marked by marches and rallies
05/05/2015, Socialistworld.net:
Photo gallery of the CWI taking part in May Day event across the world

Iceland: Fighting for better wages
05/05/2015, Per-Åke Westerlund, Rättvisepartiet Socialisterna (CWI Sweden):
General strike called for 26 May

US: Rage in Baltimore
29/04/2015, Eljeer Hawkins, Socialist Alternative, New York:
The aftermath of Freddie Gray’s death

Book review: ’No place to hide: Edward Snowden, the NSA and the US Surveillance state’
29/04/2015, Reviewed by Tony Saunois, CWI:
What the 1% will do to defend their class interests

Kazakhstan: Presidential ‘election’ - Nazarbayev’s overwhelming victory no surprise
28/04/2015, Elizabeth Clarke, CWI:
Workers need to build mass opposition

Ireland North: Health Minister forced to resign after making homophobic remarks
27/04/2015, Daniel Waldron, Socialist Party (CWI Ireland):
LGBT and women’s rights campaigners boosted

Italy: Migrant disasters - the human cost of budget cuts
27/04/2015, From web-site of ControCorrente (CWI in Italy):
From Mare Nostrum to Triton

Finland: Worst ever election result for traditional Left
24/04/2015, Jonas Brännberg and Juha Tapio for CWI in Finland:
Finns Party second biggest in parliament

CWI Comment and Analysis

ANALYSIS

Britain: The struggles to come
27/05/2015, Peter Taaffe, Socialist Party (CWI England and Wales) General Secretary:
No fundamental change to be expected from the Labour Party

Canada’s ‘carbo-state’
26/05/2015, Bill Hopwood, Socialist Alternative (CWI Canada):
Only a socialist alternative can challenge the carbo-capitalists’ grip on Canadian politics

Iraq/Syria: ISIS rout national armies at Ramadi and Palmyra
23/05/2015, Niall Mulholland, CWI:
United working class movement needed to sweep away sectarian militias and reactionary politicians

Ireland North: Election marks growing rejection of sectarian status quo
21/05/2015, Daniel Waldron and Kevin Henry, Socialist Party (CWI Ireland), Belfast:
Opportunities to build new anti-sectarian political voice for working class and youth

Spain: Is Podemos in crisis?
20/05/2015, Danny Byrne, CWI:
Left and social movements in a state of flux, as key elections loom

USA: Presidential candidate declares "political revolution" against billionaires
12/05/2015, Philip Locker, Socialist Alternative, Seattle:
Campaign needs to build independent political power

Britain: Fight against "five more damned years" of Tory rule
12/05/2015, Peter Taaffe, Socialist Party )CWI England & Wales) General Secretary:
Labour leader’s ’responsible capitalism’ shows its bankruptcy

China: “In a hard landing now”
11/05/2015, Dikang, chinaworker.info:
Stock market frenzy and fabricated GDP figures cannot hide the reality of an economy in deep trouble

Ireland North: Socialist Party replies to leading Sinn Fein councillor’s attacks
06/05/2015, Socialist Party (CWI Ireland) Statement:
How to fight cuts, sectarianism and to build workers’ unity

May Day 2015: Socialist plan or capitalist chaos
01/05/2015, Peter Taaffe, Socialist Party General Secretary, (CWI England & Wales):
What sort of new society are we struggling for?

Nepal: Disaster in Nepal –amplified by capitalism
30/04/2015, TU Senan, CWI:
Nepal, one of the poorest countries in the south Asian region has been further devastated by the recent earthquake.

May Day 2015: Resisting austerity, exploitation, wars and oppression
28/04/2015, CWI:
125 years since first May Day – Build a united workers’ movement for socialism!

Latin America: A new turn?
25/04/2015, Tony Saunois, article from May issue of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Historic handshake between Barack Obama and Raúl Castro, turmoil in Venezuela, and stalled reforms in Bolivia – as well as crises in Brazil – symbolise a new turn in Latin America and the Caribbean

Iran: Proposed nuclear deal reflects transformed Middle East
24/04/2015, Robert Bechert, CWI:
In aftermath of disastrous Iraq occupation, Obama administration balancing between region’s forces

Tunisia: After the Bardo terrorist attack
18/04/2015, Serge Jordan:
New class battles loom

Yemen: Brutal onslaught on country’s poor
15/04/2015, Judy Beishon, from The Socialist (weekly paper of the CWI England & Wales):
For unity of workers and poor against imperialism and sectarianism

Economy: What low oil prices cost the world economy
03/04/2015, Lynn Walsh, article from Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
The sudden plunge of oil and gas prices has underlined the volatility in the world capitalist economy

Israel: Netanyahu mobilises far right to win election
25/03/2015, Yasha Marmer, Socialist Struggle Movement, Israel-Palestine:
New coalition will face unresolved crises and bitter struggles

Italy: The instability of domestic capitalism
24/03/2015, Marco Veruggio, ControCorrente (CWI Italy):
Political vacuum pushes FIOM to take initiative

Greece: Varoufakis’ “erratic Marxism” is not the answer
23/03/2015, Peter Taaffe, from Socialism Today (monthly magazine of the Socialist Party, England & Wales):
Necessary to clarify ideas upon which successful struggles of European working class will be conducted

Belgium: No agreement reached between unions and government over austerity
20/03/2015, Eric Byl, LSP/PSL (Belgian section of the CWI), Brussels:
New action plan against right wing government takes off

Ukraine: Conflict unresolved after ’Minsk-2’ agreement
18/03/2015, Rob Jones, CWI, Moscow:
Only independent working-class mass movement can remove the region’s authoritarian rulers

Greece: Syriza’s first months in power
07/03/2015, Andreas Payiatsos, from Xekinima (newspaper of the CWI Greece):
The working class and social movements must enter the struggle for their rights

Quebec: Towards a hot spring
02/03/2015, Deirdre and Bruno, Socialist Alternative (CWI Quebec):
Disrupt them like they disrupt us!

Greece showdown
26/02/2015, Article to be published in the March issue of Socialism Today (magazine of the Socialist Party, CWI in England and Wales):
Niall Mulholland interviewed NICOS ANASTASIADES, of Xekinima (CWI Greece), just as Syriza leaders agreed a four-month bail-out extension with the EU.