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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

  Latin America

Taiwan
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

  Taiwan

 World Perspectives
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

  Australia

US
An Uprising Against Police Violence

08/12/2014: From Ferguson to Staten Island

  US

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

  Britain

South Africa
Metalworkers’ union expelled from COSATU

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

  Africa, South Africa

Catalonia
9 November “consultation” on independence

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

  Spain

Greece
Workers’ victory at Diamant telesales company

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

  Greece

Israel-Palestine
Netanyahu threatens “heavy hand” response to synagogue attacks

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

  Israel / Palestine

US
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

  US

 Video
Socialist TD defends anti-water charges protests

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

  Ireland Republic, Video

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

  Indonesia

Ukraine
Competing ’elections’ deepen divisions

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

  Ukraine

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

Euro crisis

Greece heads for the exit

www.socialistworld.net, 26/05/2012
website of the committee for a workers' international, CWI

Eurozone convulsed by turbulent economic forces and political upheavals

Lynn Walsh, editor of Socialism Today, magazine of the Socialist Party (CWI England & Wales)

Ten governments have been overturned since 2008, with the rejection of austerity policies. There have been a continuous series of public-sector strikes, general strikes, protests and riots. Now, many eurozone leaders fear that the possible victory on 17 June of an anti-austerity, Syriza-led government in Greece could trigger the departure of Greece from the eurozone, with incalculable repercussions.

Even before the election, the run on the Greek banks, as depositors began to withdraw their cash or transfer it to other more stable eurozone countries, could trigger a separation. Currently, the Greek banking system is being propped up by €96 billion ‘emergency liquidity assistance’ from the Greek central bank, supported by the European Central Bank. But more than €75 billion has been taken out of Greek banks since December 2009. Moreover, eurozone leaders fear the danger of ‘contagion’, that there will be a similar flight of capital from Spanish, Italian, Portuguese banks, etc.

The taboo has been broken. Although eurozone leaders, including Germany’s Angela Merkel, proclaim that they regard Greece as a permanent member of the eurozone, there are active preparations for Greece’s departure. This was recently admitted by the European trade commissioner, Karel De Gucht: “Today there are, both within the European Central Bank and the European Commission, services that are working on emergency scenarios in case Greece doesn’t make it”. (International Herald Tribune, 19 May)

According to some reports, new drachma notes are already being printed. The multinational corporations are clearing their deposits out of Greek banks, and quite likely out of Spanish and other shaky banking systems. The euro stands on the edge of a death spiral, which could have devastating effects on the world capitalist economy. None of the capitalist leaders wants a chaotic disintegration of the eurozone, but none of them has any policies capable of resolving the crisis.

According to opinion polls, Syriza could emerge from the 17 June elections as the biggest party. Its leader, Alexis Tsipras, has rightly described Greece as a “social hell”, where the workers and large sections of the middle class have been subject to barbarous austerity measures. Tsipras has correctly rejected the austerity package of the Troika – European Central Bank, European Commission and International Monetary Fund – and repudiated the payment of unbearable debts, hugely inflated by Troika loans used to bail out the banks.

Repudiation of the Troika’s ‘rescue’ package, however, would lead to the expulsion of Greece from the eurozone. Under pressure from US president, Barack Obama, and the recently elected François Hollande in France, Merkel has softened her tone, conceding that Germany would consider some measures to boost growth. These have not been specified. But, at the same time, she has made it crystal clear that acceptance of the austerity package is the precondition of any further assistance. Yet in reality, such savage austerity measures rule out economic recovery.

What kind of Grexit?

EUROPE’S CAPITALIST LEADERS are struggling with a number of scenarios: New elections in Greece could (they hope) produce a pro-austerity government based on the right-wing New Democracy. This could result from the campaign by the leaders of New Democracy and the Panhellenic Socialist Movement (Pasok), together with eurozone leaders, to make the general election a referendum on Greece staying in the euro. Merkel even proposed a referendum in a phone conversation with the Greek president, Karolos Papoulias. While there is overwhelming rejection of the austerity measures, there is still a big majority (in the region of 80%) in favour of staying with the euro. This reflects fear of Greece, a small country, being isolated outside the eurozone, and slipping back to the backward economic conditions that prevailed before.

However, even if a new Greek government swallows the austerity measures, that would only provide temporary respite – because the debt loaded onto Greece is unsustainable, and the savage austerity measures will produce further mass movements against them. In any case, it is possible that Greece’s position within the eurozone could be undermined even before the elections by a massive run on the banks. The ECB will not be able to sustain the current level of support indefinitely. The collapse of major banks in Greece would make it impossible for Greece to stay in the eurozone.

Alternatively, Greece could be forced out of the eurozone in the near future. Some eurozone strategists are advocating a controlled exit from Greece, while others fear a chaotic separation.

A controlled exit would require an orderly transition from the euro to a new drachma, which would be exchanged at a lower value. This would still require massive Troika funding to support the Greek banks to prevent a collapse. In spite of further repudiation of its debts, the major eurozone economies would have to give support to Greece to prevent a meltdown of society.

Devastating chain reaction

GIVEN THE DISARRAY of eurozone leaders, however, it is perhaps more likely that there will be a completely chaotic exit of Greece, either as a result of a massive bank run or the election of an anti-austerity government. This would aggravate the European banking crisis. Many banks have already sold their Greek government bonds, which have been taken over by the ECB. But French and German banks would still be burned by a further default by Greece. This in turn would hit banks in Britain and other countries which have shareholdings in banks based in France, Spain, etc. There would be a chain reaction.

A major eurozone crisis, more intense than anything so far, would have a devastating effect on the European and global economy. Various estimates indicate that the eurozone GDP could fall by between 5% and 10%. This in turn would have a devastating impact on countries like Britain and also the United States, for which the eurozone is a major export market.

The unfolding of the eurozone crisis, moreover, is taking place against the background of continued stagnation in the world economy. There is a recession in the eurozone itself, with only very feeble growth in Germany, the biggest economy. The almost undetectable ‘recovery’ in the US is faltering. The recent huge losses by the investment bank JPMorgan Chase, which has lost up to $4 billion in speculative activity, shows the continued vulnerability of the finance sector, regardless of the eurozone crisis. Even the IPO (initial public offering) of Facebook, which was heralded as a great success for the hi-tech, consumer sector, proved to be a huge disappointment to investors, as its shares fell immediately after they were issued. Facebook indicates the fragility of the bubble economy that still continues.

The recent G8 summit in the United States, moreover, once again exposed the bankruptcy of capitalist leaders. Obama, supported by Hollande, called for policies to promote ‘growth and jobs’. But these were vague exhortations, with no concrete measures. Merkel made some verbal concessions to the idea of promoting growth, but made it clear that her primary concern is the implementation of austerity measures – outside Germany – despite the fact that they have ensured the prolongation of recession throughout most of Europe.

A trap for the working class

EXIT FROM THE eurozone will not provide a way out of crisis for Greek society. Repudiation of the debt would lift an immediate burden. Devaluation of a new national currency would boost exports. However, Greece is not in the same situation as Argentina in 2001: Argentina could rely on exports of food and other commodities, boosted by a devalued peso, against the backdrop of the pre-2008 world upswing. Greece does not have such raw materials, and also has very weak domestic industries. At the same time, Greece has been highly dependent on imports of fuel, food and consumer goods, which would become more expensive through devaluation of the Greek currency.

Moreover, the crisis in Argentina is a warning to the Greek working class. Most of the burden of the transition from the peso pegged to the US dollar to a devalued Argentine peso was thrown onto the working class and the middle class. Bank accounts were frozen and the value of peso deposits was drastically devalued. There was mass unemployment and a huge rise in absolute poverty. Only after several years of crisis did the Argentinean economy begin to recover, under more favourable global economic conditions than prevail at the present time.

There is no way out for the Greek working class within capitalism, either in the eurozone or outside. A national, ‘siege economy’ would be a trap for the working class. Any solution requires socialist economic measures under the democratic control of the working class.

If Greece leaves the eurozone, or is forced out, it is likely that other member states will follow. Spanish banks, for instance, are on the edge of insolvency. The Spanish government was recently forced to nationalise 40% of Bankia. Other banks in Italy, Portugal, Ireland, etc, are just as shaky. The €700 billion of Europe’s stability fund is not enough to stabilise the eurozone banking system.

Greece is not the cause of the eurozone crisis but one of its symptoms. But Greece may act as a detonator, triggering an explosion or perhaps a slower disintegration. This process is an expression of the organic crisis of the eurozone and the European Union itself.

Overcoming national limitations

THE CAPITALIST LEADERS who pushed for a common currency argued that it would consolidate the single market of the EU. The EU was intended to secure peace in Europe, stability and economic prosperity. The capitalist europhiles were under the illusion that they could overcome the national borders of capitalism, which ultimately act as a fetter on economic development. But everything has turned into its opposite.

Europe has sunk into economic stagnation and the common currency has accentuated the differences between the national economies rather than bringing about a convergence. Resentment at austerity policies has led to the growth of nationalist forces and far-right trends (one example being the growth in support for Golden Dawn in Greece). These developments confirm our view that the capitalist class cannot overcome its national limitations: that is a task for the working class, which can only be accomplished on socialist lines.

The Independent newspaper recently carried a front-page headline: ‘Capitalism at a Crossroads’ (19 May). It correctly sees the eurozone crisis as one aspect of a global crisis in the system. The crisis is reflected in the massive movements of the working class that have been taking place continuously throughout Europe and elsewhere. There is no doubt that many millions of workers reject capitalist austerity and are questioning the viability of the system. What is required is a clear alternative, a socialist planned economy, run under workers’ democracy, and with the international perspective of building a global planned economy.



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Video: Paul Murphy speaks at mass Dublin water charges protest, 11/12/2014

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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!