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latest news

Britain
Consolidate the Corbyn victory

30/09/2016: Refound Labour as a democratic, socialist, anti-austerity party

  Britain

 Joint declaration by El Militante/Izquierda Revolucionaria and the CWI

29/09/2016: Meeting between organisations reveals important common ground

  CWI

 Video
Socialists speak in Irish parliament

29/09/2016: Ruth Coppinger and Paul Murphy giving a voice to mass pro-choice and anti-water charges movements in Dail

  Ireland Republic, Video

Germany
'Es Reicht!' (It's enough!)

28/09/2016: Dortmund demonstration against neo-Nazi-violence

  Germany

Britain
The ‘Corbynomics’ challenge

27/09/2016: What economic policies can end austerity and transform workers’ lives?

  Britain

Britain
Left candidate Jeremy Corbyn re-wins Labour leadership with bigger majority

24/09/2016:


Landslide victory another step to transforming Labour

  Britain

Britain
Labour leadership election draws to a close

23/09/2016: Battle lines drawn: build a real mass party of the 99%

  Britain

South Africa
Solidarity with students

22/09/2016: Struggle for free education

  South Africa

Leon Trotsky’s living legacy

21/09/2016: Review of "The Life and Death of Leon Trotsky", published in the latest issue of Socialism Today

  Trotsky

Britain
Damning parliamentary report into Cameron's role in overthrowing Gaddafi

21/09/2016: Imperialist intervention helped wreck revolutionary movement and ruin Libya

  Libya

Ireland South
Irish embassies face Jobstown trial protests

20/09/2016: Defend the right to protest – Drop the charges!

  Ireland Republic

Sri Lanka
United Socialist Party congress

19/09/2016: Lively meeting prepares membership for next period

  Sri Lanka

Ireland
#JobstownNotGuilty trials begin…

19/09/2016: State criminalises right to protest

  Ireland Republic

Britain
Labour Party needs democratic structures and socialist policies

16/09/2016: Tremendous opportunity to bring Labour back to power but on an entirely different, attractive basis

  Britain

China
Fierce clashes at “Democracy village”

14/09/2016: Protesters defy crackdown

  China

Ireland
 Dublin Bus workers move into action

13/09/2016: Strike launched after years of wage restraint

  Ireland Republic

Hong Kong
When Edward Snowden went underground with refugees

12/09/2016: Socialist Action’s Vanessa gave shelter to on-the-run Snowden

  Hong Kong

Britain
Trade Union Congress 2016

11/09/2016: Organise mass working class resistance to austerity

  Britain

Hong Kong
Elections redraw political map

10/09/2016: Legco elections see record turnout and big swing towards ‘radical’ newcomers

  Hong Kong

Britain
Break with Blairites essential to defeating divided Tories

09/09/2016: Huge potential for a bold, socialist Labour party

  Britain

Uzbekistan
President Karimov, the butcher of Andijan, dies

08/09/2016: West seeks “stability” under brutal dictatorship

  Uzbekistan

 Video
Irish Socialist MPs on Apple tax scandal

08/09/2016: Socialist industrial policy argued for in parilament by Paul Murphy, Ruth Coppinger and Mick Barry

  Ireland Republic, Video

Quebec
Montreal Old Port strikers reject wage offer

07/09/2016: Solidarity needed for struggle for a $15 minimum wage

  Quebec

Britain
Corbyn's Brexit opportunity

06/09/2016: Socialist, internationalist policies can rally both Leave and Remain voters

  Britain

Australia
Weak government has no mandate

05/09/2016: Time for the unions and social movements to push back

  Australia

Germany
Growing crises and the Left party

03/09/2016: War, refugees and global economic disaster knocking on Germany's door

  Germany

Brazil
Impeachment farce only serves big capital

02/09/2016: Temer out! General elections now! General strike to defend our rights!

  Brazil

India
Mass general strike across the country

02/09/2016: Fight must go on for minimum wage and against labour law ‘reform’

  India

Ireland
The €13 billion question

02/09/2016: Government supports Apple’s tax dodging

  Ireland Republic

Britain
Labour right’s purges and exclusions

31/08/2016: We must fight for a party for the 99%

  Britain

France
Burkini ban fuels Islamophobia

30/08/2016: For workers’ unity and struggle against racism, division and austerity

  France

Congo
General strike results in "villes mortes"

30/08/2016: Boiling anger as Kabila tries to cling to power

  Congo

Environment
Green China to save the world?

29/08/2016: Article published in latest edition of Socialism Today

  China, Environment

Book review
Iraq, IS and the failing war on terror

28/08/2016: Published earlier this year before the Chilcot report was finally released, Blood Year by counter-insurgency strategist David Kilcullen is a damning indictment of the so-called war on terror unleased by US imperialism in 2001, with the full support of Tony Blair.

  Iraq, Middle East

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

Britain: Consolidate the Corbyn victory
30/09/2016, Editorial of the Socialist (issue 918), weekly paper of the Socialist Party (England & Wales):
Refound Labour as a democratic, socialist, anti-austerity party

Joint declaration by El Militante/Izquierda Revolucionaria and the CWI
29/09/2016, socialistworld.net :
Meeting between organisations reveals important common ground

Video: Socialists speak in Irish parliament
29/09/2016, socialistworld.net:
Ruth Coppinger and Paul Murphy giving a voice to mass pro-choice and anti-water charges movements in Dail

Germany: 'Es Reicht!' (It's enough!)
28/09/2016, Ken Oss, SAV (CWI Germany) :
Dortmund demonstration against neo-Nazi-violence

Britain: Left candidate Jeremy Corbyn re-wins Labour leadership with bigger majority
24/09/2016,


From Socialist Party (CWI England & Wales) website
:



Landslide victory another step to transforming Labour

Britain: Labour leadership election draws to a close
23/09/2016, Editorial of the Socialist (issue 917), weekly paper of the Socialist Party (CWI England & Wales)
:
Battle lines drawn: build a real mass party of the 99%

South Africa: Solidarity with students
22/09/2016, Statement of the Executive Committee of the Workers' And Socialist Party (WASP, section of the CWI in South Africa) :
Struggle for free education

Britain: Damning parliamentary report into Cameron's role in overthrowing Gaddafi
21/09/2016, Robert Bechert, CWI :
Imperialist intervention helped wreck revolutionary movement and ruin Libya

Ireland South: Irish embassies face Jobstown trial protests
20/09/2016, CWI Reporters:
Defend the right to protest – Drop the charges!

Sri Lanka: United Socialist Party congress
19/09/2016, Clare Doyle, CWI :
Lively meeting prepares membership for next period

Ireland: #JobstownNotGuilty trials begin…

19/09/2016, Paul Murphy, Socialist Party (CWI in Ireland) MP
:
State criminalises right to protest

Britain: Labour Party needs democratic structures and socialist policies
16/09/2016, Editorial of the Socialist, paper of the Socialist Party (CWI in England & Wales)
:
Tremendous opportunity to bring Labour back to power but on an entirely different, attractive basis

China: Fierce clashes at “Democracy village”
14/09/2016, chinaworker.info reporters:
Protesters defy crackdown

Ireland: Dublin Bus workers move into action

13/09/2016, Councillor Michael O’Brien, Socialist Party (CWI in Ireland)
:
Strike launched after years of wage restraint

Hong Kong: When Edward Snowden went underground with refugees
12/09/2016, Pasha, Socialist Action (CWI) in Hong Kong:
Socialist Action’s Vanessa gave shelter to on-the-run Snowden

Britain: Trade Union Congress 2016

11/09/2016, Rob Williams, Socialist Party (CWI in England & Wales) industrial organiser
:
Organise mass working class resistance to austerity

Hong Kong: Elections redraw political map
10/09/2016, Dikang, Socialist Action (CWI) in Hong Kong :
Legco elections see record turnout and big swing towards ‘radical’ newcomers

Britain: Break with Blairites essential to defeating divided Tories

09/09/2016, Editorial of the Socialist, issue 915, paper of the Socialist Party (CWI in England & Wales)
:
Huge potential for a bold, socialist Labour party

Uzbekistan: President Karimov, the butcher of Andijan, dies
08/09/2016, Rob Jones, CWI, Moscow :
West seeks “stability” under brutal dictatorship

Video: Irish Socialist MPs on Apple tax scandal
08/09/2016, socialistworld.net:
Socialist industrial policy argued for in parilament by Paul Murphy, Ruth Coppinger and Mick Barry

Quebec: Montreal Old Port strikers reject wage offer
07/09/2016, Interview with a striker :
Solidarity needed for struggle for a $15 minimum wage

Australia: Weak government has no mandate
05/09/2016, Editorial comment from the September 2016 edition of The Socialist
(journal of the CWI Australia) :
Time for the unions and social movements to push back

Pakistan: Teachers continue to be victimised in Sindh
03/09/2016, CWI reporters, Sindh:
Solidarity protests needed

India: Mass general strike across the country
02/09/2016, New Socialist Alternative (CWI in India):
Fight must go on for minimum wage and against labour law ‘reform’

Ireland: The €13 billion question
02/09/2016, Cillian Gillespie, Socialist Party (CWI Ireland) :
Government supports Apple’s tax dodging

Britain: Labour right’s purges and exclusions
31/08/2016, Editorial of the Socialist, paper of the Socialist Party (CWI in England & Wales):
We must fight for a party for the 99%

CWI Comment and Analysis

ANALYSIS

Britain: The ‘Corbynomics’ challenge
27/09/2016, Hannah Sell, from the October issue of Socialism Today (monthly journal of the Socialist Party England & Wales):
What economic policies can end austerity and transform workers’ lives?

Leon Trotsky’s living legacy
21/09/2016, Peter Taaffe, general secretary of the Socialist Party (CWI in England & Wales) :
Review of "The Life and Death of Leon Trotsky", published in the latest issue of Socialism Today

Britain: Corbyn's Brexit opportunity
06/09/2016, Clive Heemskerk, from Socialism Today, September 2016 issue (monthly magazine of the Socialist Party - CWI England & Wales) :
Socialist, internationalist policies can rally both Leave and Remain voters

Germany: Growing crises and the Left party
03/09/2016, Wolfram Klein (SAV – CWI Germany) :
War, refugees and global economic disaster knocking on Germany's door

Brazil: Impeachment farce only serves big capital
02/09/2016, LSR (CWI in Brazil) statement:
Temer out! General elections now! General strike to defend our rights!

France: Burkini ban fuels Islamophobia
30/08/2016, Judy Beishon, from The Socialist (weekly paper of the Socialist Party, CWI England & Wales):
For workers’ unity and struggle against racism, division and austerity

Book review: Iraq, IS and the failing war on terror
28/08/2016, Manny Thain, Socialist Party (CWI in England & Wales), from the September edition of Socialism Today:
Published earlier this year before the Chilcot report was finally released, Blood Year by counter-insurgency strategist David Kilcullen is a damning indictment of the so-called war on terror unleased by US imperialism in 2001, with the full support of Tony Blair.

Haiti: 225th anniversary of anti-slavery, anti-colonial revolution
27/08/2016, Niall Mulholland, CWI:
A heroic and lasting inspiration to the oppressed everywhere

Russia: Twenty five years since the coup against Gorbachev
25/08/2016, Rob Jones, CWI in Russia :
Decades of ‘shock therapy capitalism’, wars and corruption

Middle East: ISIS’ waning “caliphate”
20/08/2016, Serge Jordan, CWI:
Imperialist solutions are no solution at all

Russia: Twenty fifth anniversary of attempted coup
19/08/2016, Clare Doyle, International Secretariat of the CWI:
Attempted Stalinist counter-revolution speeds up capitalist counter-revolution

US: Trump in trouble
17/08/2016, Tom Crean, Socialist Alternative, USA:
Political polarisation deepens

Britain: The Corbyn insurgency 2.0
15/08/2016, Hannah Sell, Socialist Party (CWI in England & Wales):
Now let’s finish the job

CWI Summer School: Economic instability, inter-imperialist tensions, workers struggles’ and political earthquakes
03/08/2016, James McCabe, Socialist Party (CWI in Ireland):
Report of the discussion on world perspectives at the recent CWI Summer School

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