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latest news

 Video
Real nature of EU is being laid bare

02/07/2015: Ruth Coppinger, Socialist TD (Irish MP), supports Greek ‘NO’ vote, and calls for debt refutation and nationalisations

  Greece, Ireland Republic, Video

 Video
Socialist MP condemns Troika/Irish government’s bullying of Greek voters

01/07/2015: Paul Murphy TD (Irish MP) attacks Irish prime minister’s collusion with Brussels big business agenda and voices solidarity with Greek workers

  Video

Is China’s stock market bubble bursting?

01/07/2015: Billions wiped off share values in June – only the Greek stock market is more volatile

  China

Greece
Troika threatens Greeks ahead of referendum

30/06/2015: Vote ‘No’! For a mass working class campaign to oppose Troika and for socialist policies!

  Greece

South Africa
The Marikana Report – a whitewash

30/06/2015: Not a stone has been left unturned on the political landscape

  South Africa

Tunisia
Terrorist atrocity in Sousse

29/06/2015: For a renewed mass movement against poverty and terror

  Tunisia

Greece
“NO”

27/06/2015: On Sunday 5 July, we say “no” to the gang of the lenders!

  Greece

Britain’s class battle-lines are drawn

26/06/2015: A quarter-of-a-million people protested through London and Glasgow raising the need for trade union-led struggle

  Britain

Germany
Indefinite strike for more staff at Charité hospital

26/06/2015: Berlin industrial dispute of national importance

  Germany

Greece
Where are mass solidarity protests with Syriza?

26/06/2015: Troika must be defied – No more cuts! Don’t pay the debt! Socialist policies would win huge backing from Greek workers

  Greece

Egypt
Counter-revolution continues

25/06/2015: Recent strikes show workers will resist

  Egypt

Greece
Tsipras retreats before Troika threats

24/06/2015: What should the SYRIZA Left do next?

  Greece

Scotland
1,000s rally against austerity

24/06/2015: Ferry workers’ strike over jobs, pay, pensions and privatisation

  Scotland

 Video
Socialist MP condemns Troika’s blackmail of Greece

24/06/2015: "Minister Noonan lined up with Schauble, he said tighten the noose, he stabbed the Greek people in the chest and the Irish people in the back"

  Greece, Ireland Republic, Video

Greece
“Despite spin, Syriza proposals terrible for pensioners and workers”

23/06/2015: SYRIZA Left must vote against cave-in deal with Troika and act in interests of workers!

  Greece

Britain
100,000s protest against austerity

23/06/2015: Socialist Party says: "Organise! Strike! Resist! Build for a 24-hour general strike!"

  Britain

Greece
No surrender to‘Gang of Lenders’

22/06/2015: Plan an anti-austerity fight-back, with socialist policies!

  Greece

 Brazil
No to sackings and political persecution in Sabesp

22/06/2015: Reinstate Marzeni now – Solidarity needed!

  Brazil, Solidarity

Ireland North
20,000 protesters demand LGBT rights

21/06/2015: To end oppression we need to fight to end this system, uniting working people, fighting for equality

  Ireland North, Ireland Republic, LGBT

Britain
Can Jeremy Corbyn’s challenge help to develop the socialist left?

20/06/2015: Left candidate in Labour Party leadership contest

  Britain

Hong Kong
Fake democracy roundly rejected in legislative vote

19/06/2015: Government proposals end in fiasco as Beijing loyalists misjudge voting rules

  Hong Kong

Ireland
Socialist MPs’ Employment Equality Bill passed

18/06/2015: Bill would end the right of religiously run schools, hospitals and other workplaces to discriminate against LGBTQ workers

  Ireland Republic

China
Life sentence for former security boss

16/06/2015: Secret trial of Zhou Yongkang

  China

Italy
Regional elections

13/06/2015: Myth of Prime Minister’s invincibility exposed

  Italy

Iraq/Syria
US imperialist strategy in tatters

12/06/2015: A year after ISIS captured Mosul, the jihadist group controls about half of Syria and a third of Iraq – more territory than ever before

  Iraq, Syria

 Greece
Solidarity needed with Vodafone strike

12/06/2015: Appeal for international solidarity action on 25 June

  Greece, Solidarity

Iceland
Strike wave produces results

11/06/2015: Workers win thirty percent wage increase over three years

  Iceland

Greece
Crunch-time for Syriza?

10/06/2015: Workers and poor cannot take more calamitous austerity

  Greece

Germany
Multiple strikes mark changed situation

09/06/2015: Strikes in numerous sectors as workers fail to benefit from “recovery”

  Germany

Pakistan
Protest song by Jawad Ahmed

08/06/2015: Response to anti-worker measures in Pakistani budget

  Pakistan

Britain
European Union referendum:

06/06/2015: No to a capitalist EU, Yes to a socialist Europe!

  Britain, Europe

Australia
‘Beating the big end of town’ book launched

05/06/2015: How a community defeated the East-West toll road

  Australia

Greece
Syriza voters want austerity ended, not another ’compromise’ Troika deal

04/06/2015: Break with the austerity - adopt a socialist programme!

  Greece

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

Video: Real nature of EU is being laid bare
02/07/2015, Socialistworld.net:
Ruth Coppinger, Socialist TD (Irish MP), supports Greek ‘NO’ vote, and calls for debt refutation and nationalisations

Video: Socialist MP condemns Troika/Irish government’s bullying of Greek voters
01/07/2015, :
Paul Murphy TD (Irish MP) attacks Irish prime minister’s collusion with Brussels big business agenda and voices solidarity with Greek workers

Is China’s stock market bubble bursting?
01/07/2015, Dikang, chinaworker.info:
Billions wiped off share values in June – only the Greek stock market is more volatile

South Africa: The Marikana Report – a whitewash
30/06/2015, Weizmann Hamilton, Workers’ and Socialist Party (WASP):
Not a stone has been left unturned on the political landscape

Tunisia: Terrorist atrocity in Sousse
29/06/2015, Statement by Al-Badil al-Ishtiraki (Socialist Alternative, CWI in Tunisia):
For a renewed mass movement against poverty and terror

Greece: “NO”
27/06/2015, Statement by Xekinima (CWI in Greece):
On Sunday 5 July, we say “no” to the gang of the lenders!

Germany: Indefinite strike for more staff at Charité hospital
26/06/2015, Aron Amm, Sozialistische Alternative (CWI in Germany):
Berlin industrial dispute of national importance

Greece: Where are mass solidarity protests with Syriza?
26/06/2015, Eleni Mitsou, from Xekinima (CWI Greece) website:
Troika must be defied – No more cuts! Don’t pay the debt! Socialist policies would win huge backing from Greek workers

Egypt: Counter-revolution continues
25/06/2015, David Johnson, Socialist Party (CWI England & Wales):
Recent strikes show workers will resist

Video: Paul Murphy appeals to Greek Left - Reject the blackmail
24/06/2015, socialistworld.net:
CWI MP speaks in Irish parliament

Scotland: 1,000s rally against austerity
24/06/2015, Matt Dobson and Philip Stott, Socialist Party Scotland (CWI):
Ferry workers’ strike over jobs, pay, pensions and privatisation

Video: Socialist MP condemns Troika’s blackmail of Greece
24/06/2015, socialistworld.net:
"Minister Noonan lined up with Schauble, he said tighten the noose, he stabbed the Greek people in the chest and the Irish people in the back"

Greece: “Despite spin, Syriza proposals terrible for pensioners and workers”
23/06/2015, Andreas Payiatsos and Niall Mulholland:
SYRIZA Left must vote against cave-in deal with Troika and act in interests of workers!

Britain: 100,000s protest against austerity
23/06/2015, From Socialist Party website (CWI England & Wales):
Socialist Party says: "Organise! Strike! Resist! Build for a 24-hour general strike!"

Brazil: No to sackings and political persecution in Sabesp
22/06/2015, André Ferrari, LSR (CWI in Brazil):
Reinstate Marzeni now – Solidarity needed!

Ireland North: 20,000 protesters demand LGBT rights
21/06/2015, Kevin Henry, Socialist Party (CWI Ireland), Belfast:
To end oppression we need to fight to end this system, uniting working people, fighting for equality

Britain: Can Jeremy Corbyn’s challenge help to develop the socialist left?
20/06/2015, Peter Taaffe, Socialist Party general secretary:
Left candidate in Labour Party leadership contest

Hong Kong: Fake democracy roundly rejected in legislative vote
19/06/2015, Socialist Action reporters in Hong Kong:
Government proposals end in fiasco as Beijing loyalists misjudge voting rules

Ireland: Socialist MPs’ Employment Equality Bill passed
18/06/2015, Oisin Kelly, Socialist Party (CWI in Ireland):
Bill would end the right of religiously run schools, hospitals and other workplaces to discriminate against LGBTQ workers

China: Life sentence for former security boss
16/06/2015, Vincent Kolo, chinaworker.info:
Secret trial of Zhou Yongkang

Turkey: Historical breakthrough for the left as AKP suffers its worst defeat in 13 years
15/06/2015, Michael Gehmacher SLP (CWI in Austria) & Sosyalist Alternatif (CWI in Turkey) reporters:
What future for the HDP?

Italy: Regional elections
13/06/2015, Marco Veruggio, Controcorrente (CWI in Italy):
Myth of Prime Minister’s invincibility exposed

Greece: Solidarity needed with Vodafone strike
12/06/2015, Alexandros Prandunas, Xekinima (CWI in Greece):
Appeal for international solidarity action on 25 June

Iceland: Strike wave produces results
11/06/2015, Per-Åke Westerlund (CWI Sweden):
Workers win thirty percent wage increase over three years

Greece: Crunch-time for Syriza?
10/06/2015, Niall Mulholland, from The Socialist, Issue 859, weekly newspaper of the Socialist Party (CWI England & Wales):
Workers and poor cannot take more calamitous austerity

Germany: Multiple strikes mark changed situation
09/06/2015, Sascha Stanicic from Sozialistische Alternative (CWI in Germany):
Strikes in numerous sectors as workers fail to benefit from “recovery”

CWI Comment and Analysis

ANALYSIS

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

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