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latest news

Germany
‘Brexit’ and the German Left

30/07/2016: Reject the bosses’ EU! For a Europe of working people - a voluntary socialist federation

  Germany

US
Most contentious Democratic Convention since 1968

29/07/2016: We need a new party of the 99% to defeat the billionaire class

  US

 Cameroon
Free jailed Buea activists!

28/07/2016: 100 protest outside the court demanding release of the 15

  Cameroon, Solidarity

Cote d’Ivoire
Protests against electricity prices

28/07/2016: The straw that broke the camel’s back!

  Ivory Coast

US
A call to action

27/07/2016: Walk out from the Democratic National Convention!

  US

Chile
One million protest against private pension fund

26/07/2016: After student protests, working class returns to streets

  Chile

 CWI Summer School
Europe in the aftermath of the Brexit shock

26/07/2016: Continent enters new phase of political and economic crises

  CWI

Britain
Westminster renews Trident weapons of mass destruction

25/07/2016: Debate exposes Labour as two parties

  Britain

Belgium
Brutal repression against Hong Kong socialist at Brussels Airport

18/07/2016: Chinese methods against Marxists copied by Belgian authorities

  Belgium

Turkey
Attempted coup failed

16/07/2016: No to military rule, no to Erdogan’s rule! For a workers’ alternative!

  Turkey

France
In the face of terror in Nice we will not be intimidated !

16/07/2016: No to hatred, suspicion and racism : don’t let us be divided !

  France

US
Bernie Abandons 'the Revolution’

14/07/2016: Time to back Green candidate Jill Stein

  US

Spain
Disappointment for Left in re-run elections

12/07/2016: Mass mobilisation and struggle necessary for real change

  Spain

Greece
Rise in support for Grexit; fall in support for SYRIZA

11/07/2016: Highest levels recorded against Eurozone and EU membership following Brexit

  Greece

China’s economy
‘Dead panda bounce’

10/07/2016: Has China’s economy turned a corner?

  China

Egypt
Third anniversary of coming to power of military regime

09/07/2016: Rebuilding Workers’ and youth struggles

  Egypt

Britain
Chilcot's damning findings on Iraq war

08/07/2016: More piles of evidence against the blood-soaked war for oil

  Britain

Australia
Close election result - A crisis for the establishment

08/07/2016: To fight anti-working class measures, we must build a socialist alternative

  Australia

Austria
Presidential elections re-run

08/07/2016: Court order to re-run elections sends shockwaves through establishment

  Austria

Netherlands
After Brexit, are we heading towards ‘Nexit’?

07/07/2016: Right populist Geert Wilders promises: “Our turn is next”

  Netherlands

History
1936 - Spain’s revolutionary promise

06/07/2016: Working class and peasants rose up against capitalist exploitation, poverty and fascism

  Spain

Britain
Stand firm and organise against the Blairite coup

06/07/2016: No compromise possible in Labour’s civil war

  Britain

 Video
#KeepCorbyn solidarity from Irish parliament

06/07/2016: Socialist MPs - Ruth Coppinger and Paul Murphy - speak in support of Jeremy Corbyn against Blairite coup in Irish parliament

  Britain, Video

Turkey
Terrorist attack at İstanbul Atatürk Airport kills dozens

01/07/2016: No to war and terror! Yes to workers’ unity and solidarity!

  Turkey

Iran
Gold Miners Lashed, jailed workers on hunger strike

01/07/2016: Iranian workers need solidarity

  Iran

US
Beyond Bernie

01/07/2016: Still not with her

  US

 Video
Defend Jeremy Corbyn

30/06/2016: Fight the Blairite coup

  Britain, Video

Britain
Blairite coup against Jeremy Corbyn

29/06/2016: Defend anti-austerity struggle

  Britain

Mexico
Teachers continue strike despite extreme repression

28/06/2016: Working people in Mexico need fighting unions, an independent left party, and socialism

  Mexico

Britain
Referendum revolt

27/06/2016: Capitalist establishment shattered

  Britain

Scotland
After Brexit, SNP government threaten second Indy referendum

27/06/2016: Leave vote higher than average in many working class areas

  Scotland

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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NEWS

US: Most contentious Democratic Convention since 1968
29/07/2016, Patrick Ayers, Socialist Alternative (US):
We need a new party of the 99% to defeat the billionaire class

Cameroon: Free jailed Buea activists!
28/07/2016, CWI reporters:
100 protest outside the court demanding release of the 15

Cote d’Ivoire: Protests against electricity prices
28/07/2016, CWI in Cote d’Ivoire:
The straw that broke the camel’s back!

Britain: No compromise with Labour right wing
28/07/2016, Editorial of the Socialist, newspaper of the Socialist Party (CWI in England & Wales):
#Keep Corbyn

Chile: One million protest against private pension fund
26/07/2016, Celso Calfullan and Patricio Guzman Socialism Revolucionario (CIT/CWI Chile):
After student protests, working class returns to streets

Britain: Westminster renews Trident weapons of mass destruction
25/07/2016, Socialist Party (CWI England & Wales) Reporters:
Debate exposes Labour as two parties

Belgium: Brutal repression against Hong Kong socialist at Brussels Airport
18/07/2016, CWI reporters :
Chinese methods against Marxists copied by Belgian authorities

Turkey: Attempted coup failed
16/07/2016, Sosyalist Alternatif (CWI in Turkey) :
No to military rule, no to Erdogan’s rule! For a workers’ alternative!

France: In the face of terror in Nice we will not be intimidated !
16/07/2016, Statement by Gauche Revolutionnaire (CWI in France), 15.07.16 :
No to hatred, suspicion and racism : don’t let us be divided !

China: Permanent Court of Arbitration (PCA) verdict on South China Sea a major diplomatic blow to China
15/07/2016, From ChinaWorker.info:
Only winner from tribunal’s ruling is arms industry

Malaysia: Scandal-ridden prime minister launches crackdown on dissent
13/07/2016, Ravichandren, CWI Malaysia:
Opposition weak and divided

Spain: Disappointment for Left in re-run elections
12/07/2016, Viki Lara, Socialismo Revolucionario (CWI in Spain):
Mass mobilisation and struggle necessary for real change

Greece: Rise in support for Grexit; fall in support for SYRIZA
11/07/2016, Kyriakos Halaris (translated from the Xekinima website of the Greek section of the CWI):
Highest levels recorded against Eurozone and EU membership following Brexit

China’s economy: ‘Dead panda bounce’
10/07/2016, Analysis by chinaworker.info:
Has China’s economy turned a corner?

Egypt: Third anniversary of coming to power of military regime
09/07/2016, David Johnson, Socialist Party (CWI England & Wales):
Rebuilding Workers’ and youth struggles

Britain: Chilcot's damning findings on Iraq war
08/07/2016, Judy Beishon, Socialist Party (CWI England & Wales) :
More piles of evidence against the blood-soaked war for oil

Austria: Presidential elections re-run
08/07/2016, By Sebastian Kugler, SLP (CWI in Austria):
Court order to re-run elections sends shockwaves through establishment

Netherlands: After Brexit, are we heading towards ‘Nexit’?
07/07/2016, Pieter Brans, Socialist Alternative (CWI in Netherlands), Amsterdam:
Right populist Geert Wilders promises: “Our turn is next”

Britain: Stand firm and organise against the Blairite coup
06/07/2016, Editorial from The Socialist, paper of the Socialist Party (CWI in England & Wales):
No compromise possible in Labour’s civil war

Video: #KeepCorbyn solidarity from Irish parliament
06/07/2016, socialistworld.net:
Socialist MPs - Ruth Coppinger and Paul Murphy - speak in support of Jeremy Corbyn against Blairite coup in Irish parliament

Nigeria:  Oyo State workers' indefinite strike
04/07/2016, CWI Reporters, Nigeria:
"No Pay, No Work!"

Turkey: Terrorist attack at İstanbul Atatürk Airport kills dozens
01/07/2016, Ahmet Küçük, Sosyalist Alternatif (CWI Turkey):
No to war and terror! Yes to workers’ unity and solidarity!

Iran:Gold Miners Lashed, jailed workers on hunger strike
01/07/2016, Report from Campaign in Support of Iranian Workers :
Iranian workers need solidarity

Video: Defend Jeremy Corbyn
30/06/2016, Video with Peter Taaffe, Socialist Party (CWI in England & Wales):
Fight the Blairite coup

Britain: Blairite coup against Jeremy Corbyn
29/06/2016, Peter Taaffe, Socialist Party (CWI in England & Wales) general secretary:
Defend anti-austerity struggle

Mexico: Teachers continue strike despite extreme repression
28/06/2016, Adam Ziemkowski, Socialist Alternative, USA:
Working people in Mexico need fighting unions, an independent left party, and socialism

CWI Comment and Analysis

ANALYSIS

Germany: ‘Brexit’ and the German Left
30/07/2016, Sascha Stanicic, Sozialistische Alternative (CWI in Germany):
Reject the bosses’ EU! For a Europe of working people - a voluntary socialist federation

US: A call to action
27/07/2016, Kshama Sawant, Socialist Alternative (CWI in the US):
Walk out from the Democratic National Convention!

CWI Summer School: Europe in the aftermath of the Brexit shock
26/07/2016, Kevin Parslow, Socialist Party (CWI England & Wales):
Continent enters new phase of political and economic crises

US: Bernie Abandons 'the Revolution’
14/07/2016, Kshama Sawant, Socialist councillor Seattle City :
Time to back Green candidate Jill Stein

Australia: Close election result - A crisis for the establishment
08/07/2016, Socialist Party (CWI Australia) statement :
To fight anti-working class measures, we must build a socialist alternative

History: 1936 - Spain’s revolutionary promise
06/07/2016, Tony Saunois, from Socialism Today (July/August 2016):
Working class and peasants rose up against capitalist exploitation, poverty and fascism

US: Beyond Bernie
01/07/2016, Kshama Sawant, Socialist Alternative (CWI in the USA):
Still not with her

Britain: Referendum revolt
27/06/2016, Peter Taaffe, from Socialism Today (issue No.200, July-August 2016):
Capitalist establishment shattered

Asia: Conflict in the South China Sea
16/06/2016, This is an abridged version of an article by Vincent Kolo, originally published on chinaworker.info.:
Territorial disputes resemble pieces on a ‘geopolitical chessboard’ as the US and China struggle for hegemony in Asia

Middle East: ISIS under pressure on several fronts
15/06/2016, Niall Mulholland, CWI:
Working classes, through bitterest of experiences, will take to road of mass struggle again

EU: Left parties turning against bosses’ Europe
10/06/2016, Danny Byrne, CWI:
Progress in Portugal and Spain, confusion in Britain

Muhammad Ali: A fighter who inspired millions
09/06/2016, Hugo Pierre, Socialism Today (originally published in 2003):
Establishment forced to incorporate his legend into re-writing of history

Review: The working-class case against the EU
08/06/2016, Hannah Sell, article from Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Review of ‘And The Weak Must Suffer What They Must?’ by Yanis Varoufakis

France: Fight against Valls/Hollande government intensifies
31/05/2016, Clare Doyle, CWI:
Gauche Revolutionnaire statement underlines vital need for political alternative

Austria: Only 31,026 votes prevent far right’s Hofer becoming president
24/05/2016, Sonja Grusch, SLP (the Austrian section of the CWI):
‘Breathing space’ offers chance to build a fighting, democratic left alternative

Britain: EU referendum exposes gaping political fault-lines
24/05/2016, Peter Taaffe, from Socialism Today (monthly magazine of the Socialist Party England & Wales):
New road can open up for labour movement if working class relies on its own forces

Brazil: Fall of President Dilma Rousseff unleashes offensive against working class
19/05/2016, André Ferrari, LSR (‘Freedom, Socialism and Revolution’ - CWI Brazil):
The impeachment process and historic crisis of the PT (Workers’ Party)

Ireland: ‘Jobstown trials’ to go ahead
18/05/2016, Kieran Mahon, Anti-Austerity Alliance / Socialist Party Councillor, Dublin:
Government loses battle on water charges but wages war on Left

Saudi Arabia: Gathering storms over the House of Saud
13/05/2016, Serge Jordan, CWI:
Collapse of oil prices expose fragile foundations of oil Gulf monarchies

France: New stage in battle over labour law
12/05/2016, Clare Doyle, CWI:
Hollande’s decision to over-rule parliament provokes another round of struggle

Ireland: 100th anniversary of the execution of James Connolly
12/05/2016, Three articles on Connolly’s life and ideas :
Revolutionary socialist, militant workers' leader and internationalist

Belgium: Trade unions announce new plan of action
11/05/2016, LSP/PSL (CWI in Belgium) Reporters:
Call for two national demonstrations, building towards general strikes

Britain: 90th anniversary of epochal general strike
05/05/2016, Peter Taaffe, Socialist Party (CWI England & Wales) general secretary:
When workers tasted power

Israel/Palestine: The Marxist left, the national conflict and the
Palestinian struggle

29/04/2016, Socialist Struggle Movement (CWI Israel-Palestine):
The necessity of a class approach and a socialist alternative

France: One-day strike set for 28 April
26/04/2016, Alex Rouillard, Gauche Revolutionnaire (CWI in France):
A final stage before indefinite action against Hollande’s government?