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latest news

Kurdistan
Democratic autonomy or socialism?

29/08/2015: Articles on Öcalan’s ideas and Rojava, originally published in sozialismus.info, the quaterly magazine of SAV (German section of the CWI)

  Kurdistan, Syria, Turkey

Greece
What does “Popular Unity” stand for?

28/08/2015: New Left force launched following Tsipras’ betrayal

  Greece

Sri Lanka
Identifying the challenges after defeat of Rajapaksa

27/08/2015: Working class struggle top priority for socialists

  Sri Lanka

Britain
The Corbyn insurgency

27/08/2015: Whatever the outcome of the contest, Jeremy Corbyn’s campaign has already transformed the political situation in Britain

  Britain

Lebanon
‘Garbage protests’ shake the ruling class

25/08/2015: Interview with Tamer Mahdi, CWI member in Lebanon

  Lebanon

World economy
China crisis triggers panic on global markets

25/08/2015: More than $5 trillion wiped off global stock markets in two weeks since Chinese devaluation

  China, World Economy

Sri Lanka
Election sees Rajapaksa fail to make a come-back

23/08/2015: Neo-liberal policies of UNP-led government will not satisfy demands of workers and poor.

  Sri Lanka

Gulf War
25 years since invasion of Kuwait

22/08/2015: ’Unfinished business’ remains today

  Iraq

History
Anniversary of Trotsky’s assassination

21/08/2015: Coming mass revolts will see workers and youth look to Trotsky’s ideas

  History, Trotsky

Scotland and the Jeremy Corbyn campaign

20/08/2015: The response to Corbyn’s campaign has parallels with the outpouring of class anger that was seen during the independence referendum

  Scotland

Thailand
Bomb in Bangkok kills 20

19/08/2015: Country plagued by military junta and economic downturn

  Thailand

Socialism
Past or future?

18/08/2015: Review of ‘PostCapitalism: a guide to our future’ by Paul Mason

  Science, Theory

Greece and the latest phase of the EU crisis

18/08/2015: Alexis Tsipras and the Syriza leadership have pushed through parliament the third bailout – and further deep cuts – although only with the help of right-wing parties. However, the crises in Greece, the eurozone and wider EU are far from over…

  Greece

Britain
Corbyn challenge - a very welcome political upheaval

17/08/2015: The Labour Party’s right-wing leaders have been astonished and horrified at the over-flowing rallies for Jeremy Corbyn around the UK over the last few weeks

  Britain

Northern Ireland
Left Challenge for Largest Union’s Leadership

15/08/2015: CWI member, Patrick Mulholland, leads Left campaign for leadership of NIPSA union

  Ireland North

Ireland
Paul Murphy and 22 activists to be charged over peaceful protest

14/08/2015: Socialist MP to be charged with false imprisonment for protesting against water charges

  Ireland Republic

Technology
Will robots end capitalism?

14/08/2015: Technological developments, the threat to jobs, and perspectives for the struggle against capitalism and for the future of humanity

  Science

 CWI School 2015
New Left formations

13/08/2015: Report of discussion on New Workers’ Parties, Left Populism and the ideas and programme of PODEMOS, SYRIZA

  CWI

China
Devaluation of yuan jolts global markets

12/08/2015: Sudden reversal of Beijing’s exchange rate policy underlines seriousness of China’s economic woes

  China

France/Britain
Human tragedy of Calais crisis

07/08/2015: Tories have no solutions

  Britain, France

Kurdistan
PYD leaders call for partnership with Bashar al-Assad’s regime

06/08/2015: No faith in authoritarian rulers and Western powers!

  Kurdistan, Syria, Turkey

Japan
70th anniversary of Hiroshima atomic bomb

06/08/2015: Can a future nuclear conflict be avoided?

  Japan, Nuclear Power

 CWI School
Building the CWI

06/08/2015: Introductory video to the plenary session on ‘Building the CWI’ shown at the 2015 CWI Summer School, featuring the work of our International across the world

  Video

Britain
Jeremy Corbyn – thousands rally to anti-austerity appeal

05/08/2015: Large attendances at Corbyn rallies across country

  Britain

US
Kshama Sawant leads primary elections count on 50%

05/08/2015: Seattle socialist primary election success

  US

Greece
‘The working class showed it will return to struggle’

04/08/2015: After Syriza capitulates, taking first steps towards building a new mass Left alternative to austerity and capitalism

  Greece

 CWI School 2015
World crisis continues amid horrific consequences

03/08/2015: Report of World Perspectives discussion at the 2015 CWI Summer School

  CWI

 CWI School
Drawing the lessons from the revolutions in North Africa

03/08/2015: Life and death struggle with the process of counter-revolution.

  Africa, CWI, Tunisia

US
Over 1,000 attend housing debate hosted by Socialist councillor Kshama Sawant

31/07/2015: Kshama Sawant, Seattle’s socialist councillor defending seat in primary elections on 4 August

  US

 CWI School
Social and political turmoil in Ireland

30/07/2015: Socialists play key role in rapidly changing situation

  CWI, Ireland Republic

Britain
Corbyn’s Labour leadership bid shows anti-austerity message popular

29/07/2015: Militant Tendency held up as bogeyman by Labour right and media - What’s the real history?

  Britain

Turkey
Horrific Suruc massacre

28/07/2015: Only workers’ unity can end terrorism and division

  Turkey

 CWI School
Europe’s euro-crisis and prospects for class struggle

28/07/2015: Ground prepared everywhere for new battles and rise of left formations

  CWI, Europe

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



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NEWS

Greece: What does “Popular Unity” stand for?
28/08/2015, Interview with Andreas Payiatsos, Xekinima (CWI in Greece), by Lucy Redler, SAV (CWI in Germany):
New Left force launched following Tsipras’ betrayal

Britain: The Corbyn insurgency
27/08/2015, Editorial of Socialism Today, magazine of the Socialist Party (CWI in England & Wales), September 2015:
Whatever the outcome of the contest, Jeremy Corbyn’s campaign has already transformed the political situation in Britain

Lebanon: ‘Garbage protests’ shake the ruling class
25/08/2015, socialistworld.net:
Interview with Tamer Mahdi, CWI member in Lebanon

World economy: China crisis triggers panic on global markets
25/08/2015, Vincent Kolo, chinaworker.info:
More than $5 trillion wiped off global stock markets in two weeks since Chinese devaluation

Sri Lanka: Election sees Rajapaksa fail to make a come-back
23/08/2015, Srinath Perera, United Socialist Party (CWI in Sri Lanka):
Neo-liberal policies of UNP-led government will not satisfy demands of workers and poor.

Gulf War: 25 years since invasion of Kuwait
22/08/2015, Niall Mulholland, CWI:
’Unfinished business’ remains today

Scotland and the Jeremy Corbyn campaign
20/08/2015, Editorial taken from the current issue of the Socialist - the paper of Socialist Party Scotland (CWI):
The response to Corbyn’s campaign has parallels with the outpouring of class anger that was seen during the independence referendum

Thailand: Bomb in Bangkok kills 20
19/08/2015, Per-Ake Westerlund, Rattvisepartiet Socialisterna (CWI in Sweden):
Country plagued by military junta and economic downturn

Greece and the latest phase of the EU crisis
18/08/2015, Tony Saunois, CWI, from September 2015 issue of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Alexis Tsipras and the Syriza leadership have pushed through parliament the third bailout – and further deep cuts – although only with the help of right-wing parties. However, the crises in Greece, the eurozone and wider EU are far from over…

Britain: Corbyn challenge - a very welcome political upheaval
17/08/2015, Interview with Judy Beishon in the Socialist, paper of the Socialist Party (CWI in England & Wales):
The Labour Party’s right-wing leaders have been astonished and horrified at the over-flowing rallies for Jeremy Corbyn around the UK over the last few weeks

Northern Ireland: Left Challenge for Largest Union’s Leadership
15/08/2015, Socialist Party (CWI in Ireland) reporters:
CWI member, Patrick Mulholland, leads Left campaign for leadership of NIPSA union

Ireland: Paul Murphy and 22 activists to be charged over peaceful protest
14/08/2015, Socialist Party (CWI in Ireland) reporters:
Socialist MP to be charged with false imprisonment for protesting against water charges

CWI School 2015: New Left formations
13/08/2015, Matt Dobson, Socialist Party Scotland (CWI in Scotland):
Report of discussion on New Workers’ Parties, Left Populism and the ideas and programme of PODEMOS, SYRIZA

China: Devaluation of yuan jolts global markets
12/08/2015, Editorial comment by chinaworker.info:
Sudden reversal of Beijing’s exchange rate policy underlines seriousness of China’s economic woes

Malaysia: Prime Minister implicated in financial scandals
11/08/2015, Socialist Alternative (CWI in Malaysia):
Power struggle in UMNO party

France/Britain: Human tragedy of Calais crisis
07/08/2015, Sarah Sachs-Eldridge, from The Socialist (weekly paper of the Socialist Party, CWI England & Wales):
Tories have no solutions

Japan: 70th anniversary of Hiroshima atomic bomb
06/08/2015, Geoff Jones and Kate Jones, from The Socialist (newspaper of the Socialist Party – CWI England & Wales):
Can a future nuclear conflict be avoided?

CWI School: Building the CWI
06/08/2015, Socialistworld.net:
Introductory video to the plenary session on ‘Building the CWI’ shown at the 2015 CWI Summer School, featuring the work of our International across the world

Britain: Jeremy Corbyn – thousands rally to anti-austerity appeal
05/08/2015, Steve Score, Socialist Party (CWI in England & Wales):
Large attendances at Corbyn rallies across country

US: Kshama Sawant leads primary elections count on 50%
05/08/2015, Socialist Alternative reporters:
Seattle socialist primary election success

CWI School: Drawing the lessons from the revolutions in North Africa
03/08/2015, David Johnson, Socialist Party (CWI in England and Wales):
Life and death struggle with the process of counter-revolution.

US: Over 1,000 attend housing debate hosted by Socialist councillor Kshama Sawant
31/07/2015, Kshama Sawant:
Kshama Sawant, Seattle’s socialist councillor defending seat in primary elections on 4 August

CWI School: Social and political turmoil in Ireland
30/07/2015, Eddie McCabe, Socialist Party (CWI in Ireland):
Socialists play key role in rapidly changing situation

Britain: Corbyn’s Labour leadership bid shows anti-austerity message popular
29/07/2015, Editorial from The Socialist, weekly paper of the Socialist Party (CWI England & Wales):
Militant Tendency held up as bogeyman by Labour right and media - What’s the real history?

Turkey: Horrific Suruc massacre
28/07/2015, Paula Mitchell, Socialist Party (CWI in England & Wales):
Only workers’ unity can end terrorism and division

Britain: Labour Left leadership candidate under fire from right wing
27/07/2015, Socialist Party (CWI in England & Wales - formerly the Militant Tendency) press statement on Labour leadership contest:
Blairites’ terror at popularity of left-wing ideas in Corbyn campaign

CWI Comment and Analysis

ANALYSIS

Kurdistan: Democratic autonomy or socialism?
29/08/2015, Socialistworld.net:
Articles on Öcalan’s ideas and Rojava, originally published in sozialismus.info, the quaterly magazine of SAV (German section of the CWI)

Sri Lanka: Identifying the challenges after defeat of Rajapaksa
27/08/2015, Siritunga Jayasuriya, United Socialist Party (CWI in Sri Lanka):
Working class struggle top priority for socialists

History: Anniversary of Trotsky’s assassination
21/08/2015, Peter Taaffe, General Secretary Socialist Party (CWI England and Wales), article published on 70th anniversary of Leon Trotsky’s assassination, in 2010:
Coming mass revolts will see workers and youth look to Trotsky’s ideas

Socialism: Past or future?
18/08/2015, Peter Taaffe, Socialist Party (CWI in England & Wales) General Secretary:
Review of ‘PostCapitalism: a guide to our future’ by Paul Mason

Technology: Will robots end capitalism?
14/08/2015, Interview with Peter Taaffe, conducted by Shahar Ben-Horin from Socialist Struggle Movement (CWI in Israel-Palestine):
Technological developments, the threat to jobs, and perspectives for the struggle against capitalism and for the future of humanity

Ireland: Mass non-payment campaign transforms political landscape
10/08/2015, Cillian Gillespie, Socialist Party (CWI in Ireland):
57% refuse to pay hated water charge

Kurdistan: PYD leaders call for partnership with Bashar al-Assad’s regime
06/08/2015, Serge Jordan, CWI:
No faith in authoritarian rulers and Western powers!

Greece: ‘The working class showed it will return to struggle’
04/08/2015, Interview with a Greek socialist:
After Syriza capitulates, taking first steps towards building a new mass Left alternative to austerity and capitalism

CWI School 2015: World crisis continues amid horrific consequences
03/08/2015, Cillian Gillespie, Socialist Party (CWI in Ireland):
Report of World Perspectives discussion at the 2015 CWI Summer School

CWI School: Europe’s euro-crisis and prospects for class struggle
28/07/2015, Kevin Parslow, Socialist Party (CWI England & Wales):
Ground prepared everywhere for new battles and rise of left formations

China: Stock market crash can turn into a political crisis
08/07/2015, Interview, with chinaworker.info editor, Vincent Kolo:
Regime adopts panic measures as market crash threatens wider economic recession

Greece: Mighty class-based ‘NO’ shakes bosses’ EU
06/07/2015, Editorial comment by Xekinima (CWI Greece), 6 July 2015:
Referendum earthquake sees working class boldly defy Troika and Greece’s servile ruling class!

Britain: Socialists and the EU referendum
03/07/2015, Clive Heemskerk, Socialist Party (CWI in England & Wales):
How should socialists approach the in-or-out EU debate?

Greece: Troika threatens Greeks ahead of referendum
30/06/2015, Andreas Payiatsos and Niall Mulholland:
Vote ‘No’! For a mass working class campaign to oppose Troika and for socialist policies!

Britain’s class battle-lines are drawn
26/06/2015, Hannah Sell, Socialist Party (CWI in England & Wales) Deputy General Secretary - article from ’Socialism Today’:
A quarter-of-a-million people protested through London and Glasgow raising the need for trade union-led struggle

Greece: Tsipras retreats before Troika threats
24/06/2015, Statement by Xekinima (CWI Greece) [dated 23 June 2015]:
What should the SYRIZA Left do next?

Greece: No surrender to‘Gang of Lenders’
22/06/2015, Editorial article from Xekinima (CWI Greece) [dated 17 June 2015]:
Plan an anti-austerity fight-back, with socialist policies!

Iraq/Syria: US imperialist strategy in tatters
12/06/2015, Serge Jordan (CWI):
A year after ISIS captured Mosul, the jihadist group controls about half of Syria and a third of Iraq – more territory than ever before

Greece: Syriza voters want austerity ended, not another ’compromise’ Troika deal
04/06/2015, Editorial article from Xekinima (CWI Greece) website [dated 3 June 2015]:
Break with the austerity - adopt a socialist programme!

China: Is China heading for a new Tiananmen?
04/06/2015, Vincent Kolo, chinaworker.info:
26th anniversary of the Beijing massacre on June 4, 1989, is also a warning of revolutionary shocks ahead

Hong Kong: Endgame for Beijing’s fake democracy plan
03/06/2015, Vincent Kolo, chinaworker.info:
Government’s electoral reform proposals meet with mass opposition

Spain: Victories for Left “popular unity” lists in local elections
02/06/2015, Danny Byrne, CWI:
Two-party system dealt a new blow in local and regional elections

Belgium: Momentum to bring down right wing government lost
01/06/2015, Els Deschoemacker and Eric Byl, LSP/PSL (Belgian section of the CWI), Brussels:
Learn from the struggle, as new opportunities open up

Ireland: Massive ‘Yes’ to Marriage Equality referendum
28/05/2015, Conor Payne, Socialist Party (CWI in Ireland):
Growing opposition to conservative establishment

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