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Belgium
Massive general strike makes the government wobble

19/12/2014: Towards a second plan of action to get rid of this government and austerity!

  Belgium

 Portugal
Government attempts to forcefully break TAP strike

19/12/2014: Solidarity messages needed with “requisitioned” airline workers

  Portugal, Solidarity

Kazakhstan
Third anniversary of Zhanaozen massacre marked

18/12/2014: Struggle to free political prisoners continues

  Kazakhstan

Latin America
The end of one cycle and the beginning of another

17/12/2014: Document on Latin America, agreed by CWI International Executive Committee

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Kuomintang’s landslide election defeat redraws the political map

17/12/2014: Taiwan’s ‘Sunflower Movement’ and democracy protests in Hong Kong fuel massive rejection of ruling party

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A turbulent period in history

15/12/2014: Signs of revival of class struggle signposts the future

  CWI

Ireland
Mass water charges protest on 10 December

15/12/2014: Dublin City centre came to a standstill as different marches made their way to the Dáil

  Ireland Republic

Sweden
Political crisis and new elections

15/12/2014: Right-wing alliance relied on racist party to defeat budget

  Sweden

Greece
Government brings forward presidential election

12/12/2014: Kick out the austerity government and Troika! For a Syriza government with bold socialist policies!

  Greece

Sri Lanka
Presidential Election January 8, 2015

11/12/2014: Socialist candidate challenges all other forces

  Sri Lanka

 Video
Paul Murphy speaks at mass Dublin water charges protest

11/12/2014: For a new political movement to bring the "mob" to power

  Ireland Republic, Video

Greece
Violent clashes over prisoner hunger strike

09/12/2014: Cruel and vengeful actions by the State and ruling elite

  Greece

 Video
All out on 10 December against water charges!

09/12/2014: Paul Murphy and Ruth Coppinger speak in Irish parliament

  Ireland Republic, Video

Australia
Major community victory stops Melbourne’s East-West Toll Road

08/12/2014: Socialist Party leads successful campaign against Toll Road and for investment in public transport

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US
An Uprising Against Police Violence

08/12/2014: From Ferguson to Staten Island

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Philippines
‘Economic miracle’ – a neo-liberal nightmare for the masses

30/11/2014: Forced evictions, poverty wages and repression is the reality for millions

  Philippines

 World Perspectives
A turbulent period in history

27/11/2014: Signs of revival of class struggle signposts the future

  CWI

Britain
Right wing, populist UKIP wins second Parliament seat

26/11/2014: Labour’s pro-austerity ‘opposition’ no alternative

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South Africa
Metalworkers’ union expelled from COSATU

25/11/2014: Rebuild the trade union movement on socialist principles!

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Catalonia
9 November “consultation” on independence

22/11/2014: Another show of strength for independence - fight for a Socialist Catalonia

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Greece
Workers’ victory at Diamant telesales company

21/11/2014: Xekinima (CWI) member wins key union position in Athens Municipality sector

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Netanyahu threatens “heavy hand” response to synagogue attacks

19/11/2014: New rounds of repression answered by new wave of rage and protest

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Mid-term elections do not mean a turn to the right in society

19/11/2014: Big Gains for Republicans while Voters Support Progressive Ballot Measures

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Socialist TD defends anti-water charges protests

18/11/2014: Ruth Coppinger, Socialist Party TD (MP) appears on ‘Prime Time’

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Vital lessons of Hong Kong’s ‘Umbrella Revolution’

18/11/2014: Mass struggle needs genuine internal democracy and fighting working class programme to defeat dictatorship

  Hong Kong

 Video
Water tax revolt continues in Ireland

17/11/2014: Tanaiste (Deputy PM) trapped by protestors; AAA TD (MP) and Socialist Party member, Paul Murphy, assaulted

  Ireland Republic, Video

Indonesia
"New Hope" president faces intense pressures

16/11/2014: Initiative to build mass party of working class and rural poor urgently needed

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Ukraine
Competing ’elections’ deepen divisions

15/11/2014: Working people need socialist alternative to warring oligarchs and outside powers

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Scotland
SNP government announces £500 million cuts

14/11/2014: Majority of ‘Yes’ voters want end to austerity - anti-cuts candidates needed!

  Scotland

Afghanistan
British combat troops pull out

13/11/2014: A legacy of death and destruction

  Afghanistan, Britain, US

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

Belgium: Massive general strike makes the government wobble
19/12/2014, PSL/LSP (CWI in Belgium) reporter:
Towards a second plan of action to get rid of this government and austerity!

Portugal: Government attempts to forcefully break TAP strike
19/12/2014, Socialsmo Revolucionario (CWI in Portugal):
Solidarity messages needed with “requisitioned” airline workers

Kazakhstan: Third anniversary of Zhanaozen massacre marked
18/12/2014, Socialistworld.net:
Struggle to free political prisoners continues

Taiwan : Kuomintang’s landslide election defeat redraws the political map
17/12/2014, Vincent Kolo and CWI Taiwan reporters:
Taiwan’s ‘Sunflower Movement’ and democracy protests in Hong Kong fuel massive rejection of ruling party

Italy: Mass support for general strike expresses anger at PD government
15/12/2014, Chris Thomas, ControCorrente (CWI Italy):
New political voice vitally needed

Ireland: Mass water charges protest on 10 December
15/12/2014, Cillian Gillespie, Socialist Party (CWI in Ireland):
Dublin City centre came to a standstill as different marches made their way to the Dáil

Sweden: Political crisis and new elections
15/12/2014, From articles in Offensiv, weekly paper of Rättvisepartiet Socialisterna (CWI Sweden):
Right-wing alliance relied on racist party to defeat budget

Greece: Government brings forward presidential election
12/12/2014, Slightly edited article from the current issue of Xekinima newspaper (CWI in Greece):
Kick out the austerity government and Troika! For a Syriza government with bold socialist policies!

Video: Paul Murphy speaks at mass Dublin water charges protest
11/12/2014, socialistworld.net:
For a new political movement to bring the "mob" to power

Greece: Violent clashes over prisoner hunger strike
09/12/2014, Xekinima Reporters:
Cruel and vengeful actions by the State and ruling elite

Video: All out on 10 December against water charges!
09/12/2014, socialistworld.net:
Paul Murphy and Ruth Coppinger speak in Irish parliament

US: An Uprising Against Police Violence
08/12/2014, Eljeer Hawkins, Socialist Alternative:
From Ferguson to Staten Island

Mexico: Anger grows over missing Mexican students
04/12/2014, Led by the families of the 43 students who disappeared two months ago, thousands of protesters marched through Mexico City on 20 November to demand answers and action from the government.:
Dave Carr

Philippines: ‘Economic miracle’ – a neo-liberal nightmare for the masses
30/11/2014, By a CWI correspondent in Philippines:
Forced evictions, poverty wages and repression is the reality for millions

Britain: Right wing, populist UKIP wins second Parliament seat
26/11/2014, Editorial from The Socialist, weekly paper of the Socialist Party (England & Wales):
Labour’s pro-austerity ‘opposition’ no alternative

South Africa: Metalworkers’ union expelled from COSATU
25/11/2014, WASP Reporters:
Rebuild the trade union movement on socialist principles!

Catalonia: 9 November “consultation” on independence
22/11/2014, Rob MacDonald Socialismo Revolucionario (CWI in Spain) Barcelona:
Another show of strength for independence - fight for a Socialist Catalonia

Greece: Workers’ victory at Diamant telesales company
21/11/2014, Xekinima Reporters:
Xekinima (CWI) member wins key union position in Athens Municipality sector

Video: Joe Higgins denounces Irish government’s water charge trickery
20/11/2014, socialistworld.net:
Mass boycott will defeat water charges

US: Mid-term elections do not mean a turn to the right in society
19/11/2014, Tom Crean, Socialist Alternative:
Big Gains for Republicans while Voters Support Progressive Ballot Measures

Video: Socialist TD defends anti-water charges protests
18/11/2014, socialistworld.net:
Ruth Coppinger, Socialist Party TD (MP) appears on ‘Prime Time’

Venezuela: Scarcity and speculation - whose fault is it?
18/11/2014, Gabriela Sánchez. Socialismo Revolucionario (CWI in Venezuela):
Who is sabotaging who?

Vital lessons of Hong Kong’s ‘Umbrella Revolution’
18/11/2014, chinaworker.info:
Mass struggle needs genuine internal democracy and fighting working class programme to defeat dictatorship

Video: Water tax revolt continues in Ireland
17/11/2014, socialistworld.net:
Tanaiste (Deputy PM) trapped by protestors; AAA TD (MP) and Socialist Party member, Paul Murphy, assaulted

Indonesia: "New Hope" president faces intense pressures
16/11/2014, Iyan, CWI Malaysia:
Initiative to build mass party of working class and rural poor urgently needed

Scotland: SNP government announces £500 million cuts
14/11/2014, Philip Stott, Socialist Party Scotland (CWI):
Majority of ‘Yes’ voters want end to austerity - anti-cuts candidates needed!

CWI Comment and Analysis

ANALYSIS

Latin America: The end of one cycle and the beginning of another
17/12/2014, socialistworld.net:
Document on Latin America, agreed by CWI International Executive Committee

World Perspectives: A turbulent period in history
15/12/2014, CWI International Executive Committee:
Signs of revival of class struggle signposts the future

Sri Lanka: Presidential Election January 8, 2015
11/12/2014, Interview with Siritunga Jayasuriya, USP (CWI Sri Lanka):
Socialist candidate challenges all other forces

Australia: Major community victory stops Melbourne’s East-West Toll Road
08/12/2014, By Socialist Party (CWI Australia) reporters, Melbourne:
Socialist Party leads successful campaign against Toll Road and for investment in public transport

World Perspectives: A turbulent period in history
27/11/2014, International Secretariat of the CWI :
Signs of revival of class struggle signposts the future

Ireland: Lies and distortions against community protests, the AAA and the Socialist Party
21/11/2014, Socialist Party (CWI in Ireland) reporters:
Government and Water Charges completely undermined

Israel-Palestine: Netanyahu threatens “heavy hand” response to synagogue attacks
19/11/2014, Yasha Marmer, Socialist Struggle Movement (SSM):
New rounds of repression answered by new wave of rage and protest

Ukraine: Competing ’elections’ deepen divisions
15/11/2014, Rob Jones, CWI Moscow:
Working people need socialist alternative to warring oligarchs and outside powers

Northern Ireland: 20 years after the ceasefires
10/11/2014, Ciaran Mulholland, Socialist Party (CWI in Ireland):
In 1994, the IRA and Loyalist paramilitaries called ceasefires. Four years later the Good Friday agreement was declared to mark the end of the ‘Troubles’…

Germany: 25 years since November 9
09/11/2014, By Robert Bechert, CWI, who was living in Berlin in 1989:
Berlin Wall brought down by mass revolutionary movement

Elections in Brazil
07/11/2014, Andre Ferrari, LSR (CWI in Brazil):
Narrow win for Dilma sets scene for more crisis and instability

Russia’s 1917 socialist revolution
07/11/2014, Clare Doyle, CWI:
November 7th anniversary of workers taking power

Ireland: Stunning Dublin by-election victory, huge water protests…new chapter for working class resistance
04/11/2014, Kevin McLoughlin, Socialist Party (CWI Ireland):
How the Anti Austerity Alliance won a parliamentary seat and the way forward for the Left

Kurdistan: Battle for Kobanê at a crossroads
31/10/2014, Serge Jordan, CWI:
What does US military ‘assistance’ mean for the Kurdish struggle?

A ‘third industrial revolution’
28/10/2014, Peter Taaffe, general secretary of the Socialist Party (CWI England & Wales):
New technological innovations are having a huge impact on the capitalist system, a subject explored in a new book, The Zero Marginal Cost Society.

Britain: Anniversary of first issue of Militant newspaper
24/10/2014, Peter Taaffe, Socialist Party general secretary, from this week’s Socialist (paper of the Socialist Party – CWI England & Wales):
50 years of socialist ideas and workers’ struggle

Spain: Death knells of "Transition" regime
23/10/2014, Danny Byrne, CWI:
Catalonia; ’Podemos’, and the left

Kazakhstan: Brutal repression in imperialism’s interests
20/10/2014, Mike Whale, Secretary of Campaign Kazakhstan (first published in October 2014 issue of Socialism Today):
Workers pay the price for crony capitalism

Is the US promoting a “colour revolution” in Hong Kong?
18/10/2014, Dikang, Socialist Action (CWI in Hong Kong):
Beijing’s scare propaganda doesn’t stand up to examination

Britain: Workers need a pay rise - how can we pay for it?
17/10/2014, Peter Taaffe, general secretary of the Socialist Party (CWI in England and Wales):
End poverty, inequality and capitalism

Ireland: Byelection triumph marks turning point in anti-austerity struggle
14/10/2014, Eddie McCabe, Socialist Party (CWI in Ireland):
Paul Murphy wins parliamentary seat as 100,000 march against water charges

Middle East: US-led policy of air attacks on Islamic State lies in ruins
13/10/2014, Tony Saunois, CWI:
As battle for Kobane rages, IS forces make major gains in Iraq

Ireland: Paul Murphy elected to Irish parliament in stunning byelection victory
12/10/2014, socialistworld.net:
Anti-Austerity Alliance victory shocks political establishment, reflects mass revolt against water charges and austerity

South Africa: "A workers’ party must emerge"
11/10/2014, John Malanga, Democratic Socialist Movement (CWI South Africa):
Dire position of South African capitalism and inequality adds momentum towards creation of workers’ party

Israel/Palestine: After the Gaza war
07/10/2014, Shahar Benhorin, Socialist Struggle Movement (CWI Israel-Palestine):
No justice for Palestinians and no peace for the region - For a socialist solution!