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

latest news

China
Labour disputes soar

17/04/2014: 40,000 workers paralyse world’s largest sports shoe maker

  China

Greece
International anti-fascist conference “No pasaran!”

16/04/2014: Four thousand attend three-day event in Athens

  Greece

South Africa
Enthusiastic response for WASP ahead of May elections

15/04/2014: WASP campaigning material available on pdf

  South Africa

India
Massive election process could end in turmoil

14/04/2014: New party expresses, but cannot solve, major discontents

  India

Cyprus
Austerity sees living standards fall back 40 years

11/04/2014: One year of the right wing Anastasiades government

  Cyprus

 Iranian nuclear talks
Hypocrisy abounds

10/04/2014: Paul Murphy MEP

  Video

Britain
Dave Nellist on BBC outlining TUSC’s socialist policies

10/04/2014: Trade union and socialist coalition (TUSC) candidate count reaches 476 for May local election

  Britain

Taiwan
Occupation of parliament ends after 23 days

10/04/2014: What are the lessons of the island’s ‘sunflower movement’?

  Taiwan

Hungary
Election highlights lack of Left challenge

09/04/2014: Declining vote for ruling Fidész party; neo-fascist Jobbik picks up 20% as false ‘alternative’

  Hungary

Environment
Ukraine crisis exploited by multinational fracking lobby

09/04/2014: Oppose the pro-big business EU/ US Transatlantic Trade and Investment Partnership!

  Environment, Ukraine

Belgium
50,000 join ETUC Brussels demonstration

08/04/2014: Protesters’ radical mood

  Belgium

Britain
One in ten council seats will have TUSC candidate

07/04/2014: No-cuts election challenge grows

  Britain

Review
Net political impact

06/04/2014: To Save Everything, Click Here • By Evgeny Morozov •

  Review

Belgium
The rise of the PTB/PvdA

05/04/2014: Recent polls confirm a probable electoral breakthrough for the Workers’ Party of Belgium (PTB/PvdA).

  Belgium

Ivory Coast
First victory for students at University of Cocody

04/04/2014: An important step to push the struggle against neo-liberal policies further

  Ivory Coast

Canada
Port of Vancouver truckers’ strike wins significant gains

03/04/2014: After bosses’ seen off - unions must defend their right to strike!

  Canada

France
Government punished in local elections

02/04/2014: Far right gains highlight need for strong fighting left opposition

  France

Nepal
Turning back the wheel of history

01/04/2014: Second constituent assembly election – a shift to the right

  Nepal

South Africa
WASP manifesto launch success!

01/04/2014: On Saturday 29 March the Workers and Socialist Party launched its 2014 election manifesto at a rally in Katlehong, Gauteng

  Africa, South Africa

Taiwan
Half a million on the streets against President Ma

31/03/2014: Demonstrators call for trade pact to be withdrawn and for president to step down

  Taiwan

US
Winning $15 an hour in Seattle

31/03/2014: A socialist strategy

  US

Netherlands
Socialist Party local election gains

31/03/2014: Vote for SP can be the basis for a mass struggle against cuts

  Netherlands

 Video
Hypocrisy of Irish Govt & EU on Ukraine

29/03/2014: Joe Higgins, Socialist Party (CWI MP) speaks in Irish parliament

  Ukraine, Video

 Sweden
New political winds affect CWI Congress

28/03/2014: Optimistic Rättvisepartiet Socialisterna prepares for elections

  CWI, Sweden

No to the Transatlantic Trade and Investment Partnership!

28/03/2014: Anti-democratic agreement seeks to increase corporate domination of politics

Portugal
Thousands of police and military march in Lisbon

27/03/2014: Reflection of the government’s intrinsic weakness

  Portugal

Spain
A million march for dignity in Madrid

26/03/2014: 22M: A before and after moment for the class struggle

  Spain

Taiwan
Ma government rocked by mass protests and occupation of parliament

26/03/2014: Down with undemocratic Kuomintang rule – for a Taiwan-wide student strike as the next step!

  Taiwan

Bosnia-Herzegovina
Mass protests - The first flowers of spring

26/03/2014: What programme should the Left advocate?

  Bosnia

Sudan
Has al-Bashir survived mass protests?

25/03/2014: Removal of hated regime not enough; crises of poverty and oppression due to grip of capitalism

  Sudan

Britain
After Bob Crow and Tony Benn

24/03/2014: Mourn the loss, fight for the future

  Britain

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

Exposing the economic blackmail of the IMF in Ukraine, 14/04/2014

 further videos

CWI - get involved


solidarity

tamil solidarity campaign kazakhstan

featured links

Paul Murphy, MEP

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

China: Labour disputes soar
17/04/2014, chinaworker.info reporters:
40,000 workers paralyse world’s largest sports shoe maker

Nigeria: Bomb explosions in Abuja - more evidence of the failure of capitalist government
16/04/2014, Segun Sango, Socialist Party Nigeria National Chairperson:
For democratic self-defence committees

Greece: International anti-fascist conference “No pasaran!”
16/04/2014, Sebastian Forster (CWI Germany) and Elin Gauffin (CWI Sweden):
Four thousand attend three-day event in Athens

South Africa: Enthusiastic response for WASP ahead of May elections
15/04/2014, Socialistworld.net:
WASP campaigning material available on pdf

India: Massive election process could end in turmoil
14/04/2014, Clare Doyle (CWI international Secretariat):
New party expresses, but cannot solve, major discontents

Cyprus: Austerity sees living standards fall back 40 years
11/04/2014, Athina Kariati, New Internationalist Left (CWI in Cyprus):
One year of the right wing Anastasiades government

Iranian nuclear talks: Hypocrisy abounds
10/04/2014, :
Paul Murphy MEP

Britain: Dave Nellist on BBC outlining TUSC’s socialist policies
10/04/2014, :
Trade union and socialist coalition (TUSC) candidate count reaches 476 for May local election

Hungary: Election highlights lack of Left challenge
09/04/2014, Sonja Grusch and Tilman M. Ruster:
Declining vote for ruling Fidész party; neo-fascist Jobbik picks up 20% as false ‘alternative’

Environment: Ukraine crisis exploited by multinational fracking lobby
09/04/2014, Paul Murphy, Socialist Party MEP, and Tanja Niemeier:
Oppose the pro-big business EU/ US Transatlantic Trade and Investment Partnership!

Belgium: 50,000 join ETUC Brussels demonstration
08/04/2014, Eric Byl, General Secretary, Linkse Socialistiche Partij / Parti Socialiste de Lutte (PSL/LSP):
Protesters’ radical mood

Review: Net political impact
06/04/2014, Ben Robinson, Socialist Party (CWI in England & Wales) published in Socialism Today:
To Save Everything, Click Here • By Evgeny Morozov •

Ivory Coast: First victory for students at University of Cocody
04/04/2014, CWI in Ivory Coast:
An important step to push the struggle against neo-liberal policies further

Canada: Port of Vancouver truckers’ strike wins significant gains
03/04/2014, Socialist Alternative Reporter, Vancouver:
After bosses’ seen off - unions must defend their right to strike!

France: Government punished in local elections
02/04/2014, Gauche Revolutionnaire (CWI in France) reporters:
Far right gains highlight need for strong fighting left opposition

South Africa: WASP manifesto launch success!
01/04/2014, Workers’ and Socialist Party (WASP):
On Saturday 29 March the Workers and Socialist Party launched its 2014 election manifesto at a rally in Katlehong, Gauteng

Taiwan: Half a million on the streets against President Ma
31/03/2014, CWI reporters in Taipei:
Demonstrators call for trade pact to be withdrawn and for president to step down

Netherlands: Socialist Party local election gains
31/03/2014, Pieter Brans, Amsterdam:
Vote for SP can be the basis for a mass struggle against cuts

Video: Hypocrisy of Irish Govt & EU on Ukraine
29/03/2014, socialistworld.net:
Joe Higgins, Socialist Party (CWI MP) speaks in Irish parliament

Sweden: New political winds affect CWI Congress
28/03/2014, Rättvisepartiet Socialisterna Reporters:
Optimistic Rättvisepartiet Socialisterna prepares for elections

No to the Transatlantic Trade and Investment Partnership!
28/03/2014, Vladimir Bortun, Socialist Party (CWI in England & Wales):
Anti-democratic agreement seeks to increase corporate domination of politics

Portugal: Thousands of police and military march in Lisbon
27/03/2014, Jose David Gregorio, Socialismo Revolucionario (CWI in Portugal):
Reflection of the government’s intrinsic weakness

CWI Comment and Analysis

ANALYSIS

Taiwan: Occupation of parliament ends after 23 days
10/04/2014, Interview with Sally Tang Mei-ching, CWI participant in Taipei protests:
What are the lessons of the island’s ‘sunflower movement’?

Belgium: The rise of the PTB/PvdA
05/04/2014, Eric Byl, LSP/PSL (CWI in Belgium):
Recent polls confirm a probable electoral breakthrough for the Workers’ Party of Belgium (PTB/PvdA).

Nepal: Turning back the wheel of history
01/04/2014, Senan, CWI:
Second constituent assembly election – a shift to the right

US: Winning $15 an hour in Seattle
31/03/2014, Patrick Ayers, Socialist Alternative, USA:
A socialist strategy

Spain: A million march for dignity in Madrid
26/03/2014, Angel Morano, Socialismo Revolucionario (CWI in Spain):
22M: A before and after moment for the class struggle

Taiwan: Ma government rocked by mass protests and occupation of parliament
26/03/2014, Sally Tang Mei-ching in Taipei and Vincent Kolo:
Down with undemocratic Kuomintang rule – for a Taiwan-wide student strike as the next step!

Bosnia-Herzegovina: Mass protests - The first flowers of spring
26/03/2014, Sonja Grusch, Socialist Left Party (CWI in Austria):
What programme should the Left advocate?

Britain: After Bob Crow and Tony Benn
24/03/2014, Peter Taaffe, from Socialism Today (No.177, April 2014), monthly magazine of the Socialist Party (CWI England & Wales):
Mourn the loss, fight for the future

Scotland: Unions and the socialist case for independence
23/03/2014, John McInally, national vice-president of the Public and Commercial Services union (personal capacity):
Aruging a independent, working class position

Ukraine: Crimea breaks away to join Russia
18/03/2014, Niall Mulholland, CWI:
Tensions between powers worsen

Australia: Socialist Party playing key role in fight against East-West tunnel
13/03/2014, Mel Gregson and Stephen Jolly, Socialist Party (CWI in Australia), Melbourne:
Campaign brings public transport to forefront of political debate

Bosnia Herzegovina: Mass protests of working people and youth show the way forward
13/03/2014, CWI Leaflet text:
Working people stir to end poverty, joblessness, corruption and ethnic divisions!

Socialist perspectives for Aotearoa / New Zealand
09/03/2014, CWI Aotearoa / New Zealand:
The world and New Zealand in crisis

International Women’s Day 2014
07/03/2014, Clare Doyle (Committee for a Workers’ International):
Fighting austerity and oppression world-wide

Venezuela: A year after Chavez’s death
06/03/2014, By Gabriela Sanchez (CWI Venezuela).:
Commemorations in context of new crisis

Ukraine: Russian troops take up positions throughout Crimea
04/03/2014, CWI Reporters:
Tensions deepen between Western powers and Moscow

Greece: Still in the eye of the storm
26/02/2014, Interview with Andros Payiatsos, Xekinima (CWI in Greece) published in Socialism Today:
From the outside, it can appear there’s a certain pause in the struggle in Greece. Is this true?

Ukraine: Bloodshed in Kiev
19/02/2014, Rob Jones, from Socialism Today (March edition, No.176):
What lies behind the Ukraine crisis?

Venezuela: An analysis of 12F
19/02/2014, By Gabriela Sanchez- SR Venezuela:
On 12F, three people (two right wing supporters and one government supporter) were killed in Caracas and dozens injured and arrested in the protests and demonstrations that took place around Venezuela to commemorate the annual ’Youth Day’.

Pakistan: Negotiating peace
18/02/2014, Khalid Bhatti, SNP Lahore:
Government/Taliban talks begin - But where will they go?

South Africa: The end of Cosatu?
17/02/2014, WASP (Workers and Socialist Party) Reporters, S Africa:
Time for a new socialist trade union federation

Greece: The fascist threat
08/02/2014, Christina Ziakka, Xekinima (CWI Greece) - translated by Amalia Loizidou. First published in Socialism Today:
Deep economic crisis, savage austerity and social upheaval have polarised Greek society.

South Africa: After NUMSA’s Congress
04/02/2014, Workers And Socialist Party (WASP) statement:
Seize the historic opportunity of the 2014 elections

Tunisia: Three years on since the fall of Ben Ali
30/01/2014, Serge Jordan and CWI supporters in Tunis:
New ‘technocratic’ government no response to workers’ demands

Thailand: Prolonged political crisis
27/01/2014, Ravichandran, CWI Malaysia:
Working class and rural poor need party of their own