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latest news

Sri Lanka
United Socialist Party issues press statement

28/07/2014: CWI calls for protests and financial assistance

  Sri Lanka

Sri Lanka
Racist Buddhist mob ambushes United Socialist Party march

26/07/2014: CWI condemns attack and requests solidarity

  Sri Lanka

China
The great slowdown

24/07/2014: Signs the mammoth property bubble is finally bursting belie Beijing’s upbeat GDP data

  China

Trotsky
The first year of war

23/07/2014: Article by LEON TROTSKY translated into English for first time

  Trotsky

WW1
The Bolsheviks and the war

21/07/2014: The horrors of the first world war, and the economic and social turmoil it created, led to mass upheaval. In Russia alone did this lead to a successful revolution…

  World War 1

1914
The capitulation of the Second International

19/07/2014: Before 1914, the Second International resolved to act to prevent war…

  World War 1

South Africa
Metal workers’ strike

19/07/2014: Industrial action must take forward call for a new workers’ party

  Africa, South Africa

Britain
Abuse scandals reveal abusive system

18/07/2014: An Establishment cover-up?

  Britain

Sri Lanka
Vicious communalist attacks on Muslims

17/07/2014: USP mounts motor cycle ‘march’ to fight for united struggle against chauvinists

  Sri Lanka

World War One
100 years since the great slaughter

16/07/2014: Ten million killed and more than ten million seriously injured

  History, World War 1

Israel-Palestine
World outraged by Israeli State’s ferocious bombing of Gaza

15/07/2014: Mass action needed to end the slaughter and blockade!

  Israel / Palestine

History
Revolutionary US Teamsters

14/07/2014: Celebrating the 80th Anniversary of the 1934 Minneapolis Strikes

  History, US

Stop the bombing of Gaza – End Israeli state terror!

12/07/2014: Over 100 Gazans have been killed in one week, including 20 children

  Israel / Palestine

Europe
Junk Juncker, Cameron and the anti-worker EU

11/07/2014: "Cameron’s defeat was dire."

  Europe

Israel-Palestine
Netanyahu government fuels wave of protest

08/07/2014: Extracts and updates from a series of articles on the website of Socialist Struggle Movement, the Israel-Palestine section of the CWI.

  Israel / Palestine

Hong Kong
What next after massive July 1 demo?

07/07/2014: Battle-lines hardening as masses push for democracy while government steps up repression

  Hong Kong

Can capitalism put all of us first?

05/07/2014: A response to the “practical idealism” of the Common Weal

  Scotland

France
Hollande’s austerity plans must be blocked

04/07/2014: United private-public sector strike vital

  France

 Brazil
Solidarity with sacked Metro workers

04/07/2014: 42 workers sacked for going on strike

  Brazil, Solidarity

South Africa
220,000 metalworkers’ on strike

03/07/2014: Forward to a living wage – end labour broking

  South Africa

Australia
Thousands rally in Melbourne against East-West toll road

03/07/2014: Labour claim opposition to project but refuse to rip up contracts

  Australia

 Sri Lanka
Solidarity needed against nationalist attacks

02/07/2014: At least four people were killed and 100 injured in anti-Muslim attacks

  Solidarity, Sri Lanka

Video
Free Vadim Kuramshin

02/07/2014: Joe HIggins, Socialist Party (CWI) TD raises Vadim’s case in Irish parliament

  Kazakhstan

Argentina
Return to turmoil

01/07/2014: Debt crisis is back – the class struggle and tasks for the Left

  Argentina

Review
’Capital in the Twenty-First Century’

28/06/2014: Thomas Piketty: The new Marx?

  Review

South Africa
Victory in platinum miners’ strike!

27/06/2014: Significant step forward in the struggle for a living wage for all

  South Africa

Pakistan
Military launch offensive in North Waziristan

26/06/2014: Half a million people flee the area

  Pakistan

Britain
Coulson conviction - Cameron must resign!

26/06/2014: Call a general election now

  Britain

Iraq
Isis jihadists capture more territory

24/06/2014: Only organised, united working class can end war and social misery

  Iraq

Israel/Palestine
Protest in Tel Aviv against military raids

24/06/2014: Israeli nationalist thugs cowardly attacked Socialist Struggle Movement activists after the protest

  Israel / Palestine

Waging war on climate change

23/06/2014: The quickening pace of global warming poses a threat to US national security, says a leading, federally-funded military research organisation

  Environment

Pakistan
Scores killed in Taliban attacks on Karachi airport

19/06/2014: Workers need political movement to counter extremist ideology and capitalism

  Pakistan

Nigeria
200 school girls abducted

18/06/2014: Why has Boko Haram insurgency grown?

  Nigeria

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

Sri Lanka: United Socialist Party issues press statement
28/07/2014, Clare Doyle (CWI Secretariat):
CWI calls for protests and financial assistance

Sri Lanka: Racist Buddhist mob ambushes United Socialist Party march
26/07/2014, socialistworld.net:
CWI condemns attack and requests solidarity

China: The great slowdown
24/07/2014, Vincent Kolo, chinaworker.info:
Signs the mammoth property bubble is finally bursting belie Beijing’s upbeat GDP data

South Africa: Metal workers’ strike
19/07/2014, By Workers and Socialist Party (WASP – South Africa) Reporters:
Industrial action must take forward call for a new workers’ party

Britain: Abuse scandals reveal abusive system
18/07/2014, Hannah Sell, Socialist Party, Deputy General Secretary:
An Establishment cover-up?

Sri Lanka: Vicious communalist attacks on Muslims
17/07/2014, Siritunga Jayasura, United Socialist Party (CWI in Sri Lanka):
USP mounts motor cycle ‘march’ to fight for united struggle against chauvinists

History: Revolutionary US Teamsters
14/07/2014, Alan Jones and Ty Moore, Socialist Alternative:
Celebrating the 80th Anniversary of the 1934 Minneapolis Strikes

Stop the bombing of Gaza – End Israeli state terror!
12/07/2014, Text of Socialist Party (CWI in England & Wales) leaflet:
Over 100 Gazans have been killed in one week, including 20 children

Europe: Junk Juncker, Cameron and the anti-worker EU
11/07/2014, Peter Taaffe, Socialist Party (CWI in England & Wales) general secretary:
"Cameron’s defeat was dire."

Britain: Millions of public sector workers prepare to strike
09/07/2014, Hannah Sell, Socialist Party (CWI in England & Wales) deputy general secretary:
Build workers’ movement

Israel-Palestine: Netanyahu government fuels wave of protest
08/07/2014, Socialistworld.net:
Extracts and updates from a series of articles on the website of Socialist Struggle Movement, the Israel-Palestine section of the CWI.

Hong Kong: What next after massive July 1 demo?
07/07/2014, Vincent Kolo, chinaworker.info:
Battle-lines hardening as masses push for democracy while government steps up repression

France: Hollande’s austerity plans must be blocked
04/07/2014, Alex Rouillard, Gauche Revolutionnaire (CWI in France):
United private-public sector strike vital

Brazil: Solidarity with sacked Metro workers
04/07/2014, socialistworld.net:
42 workers sacked for going on strike

Venezuela: Successful workers’ and popular march in Barquisimeto
04/07/2014, Socialismo Revolucionario (CWI in Venezuela) reporters:
Photo report of march

South Africa: 220,000 metalworkers’ on strike
03/07/2014, Mametlwe Sebei, Workers’ and Socialist Party (WASP) Deputy President:
Forward to a living wage – end labour broking

Australia: Thousands rally in Melbourne against East-West toll road
03/07/2014, Chris Dite, Socialist Party (CWI in Australia):
Labour claim opposition to project but refuse to rip up contracts

Sri Lanka: Solidarity needed against nationalist attacks
02/07/2014, Keerthikan Thennavan, Tamil Solidarity:
At least four people were killed and 100 injured in anti-Muslim attacks

Video: Free Vadim Kuramshin
02/07/2014, socialistworld.net:
Joe HIggins, Socialist Party (CWI) TD raises Vadim’s case in Irish parliament

South Africa: Victory in platinum miners’ strike!
27/06/2014, Workers’ and Socialist Party (WASP) statement:
Significant step forward in the struggle for a living wage for all

Pakistan: Military launch offensive in North Waziristan
26/06/2014, Khalid Bhatti , SMP (CWI in Pakistan):
Half a million people flee the area

Britain: Coulson conviction - Cameron must resign!
26/06/2014, Judy Beishon, Socialist Party executive committee:
Call a general election now

Israel/Palestine: Protest in Tel Aviv against military raids
24/06/2014, Socialist Struggle Movement (CWI in Israel/Palestine) reporters:
Israeli nationalist thugs cowardly attacked Socialist Struggle Movement activists after the protest

Waging war on climate change
23/06/2014, Manny Thain, from Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
The quickening pace of global warming poses a threat to US national security, says a leading, federally-funded military research organisation

Pakistan: Scores killed in Taliban attacks on Karachi airport
19/06/2014, Khalid Bhatti, Socialist Movement Pakistan (CWI), Lahore:
Workers need political movement to counter extremist ideology and capitalism

Hong Kong: Pro-Beijing newspaper launches attack on CWI
16/06/2014, Dikang, Socialist Action in Hong Kong:
1989 massacre apologists accuse Socialist Action (CWI) and radical legislator ‘Long Hair’ of ‘violence’

CWI Comment and Analysis

ANALYSIS

Trotsky: The first year of war
23/07/2014, Originally published in in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Article by LEON TROTSKY translated into English for first time

WW1: The Bolsheviks and the war
21/07/2014, Peter Taaffe, article originally published in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
The horrors of the first world war, and the economic and social turmoil it created, led to mass upheaval. In Russia alone did this lead to a successful revolution…

1914: The capitulation of the Second International
19/07/2014, Robert Bechert (a longer version of an article published in the July/August 2014 issue of Socialism Today):
Before 1914, the Second International resolved to act to prevent war…

World War One: 100 years since the great slaughter
16/07/2014, Tony Saunois, article originally published in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Ten million killed and more than ten million seriously injured

Israel-Palestine:World outraged by Israeli State’s ferocious bombing of Gaza
15/07/2014, Judy Beishon, from The Socialist (weekly newspaper of the Socialist Party – CWI England & Wales):
Mass action needed to end the slaughter and blockade!

Can capitalism put all of us first?
05/07/2014, By Philip Stott:
A response to the “practical idealism” of the Common Weal

Argentina: Return to turmoil
01/07/2014, Danny Byrne, CWI:
Debt crisis is back – the class struggle and tasks for the Left

Review: ’Capital in the Twenty-First Century’
28/06/2014, Hannah Sell, Socialist Party (CWI England and Wales):
Thomas Piketty: The new Marx?

Iraq: Isis jihadists capture more territory
24/06/2014, Niall Mulholland, CWI:
Only organised, united working class can end war and social misery

Nigeria: 200 school girls abducted
18/06/2014, By Segun Sango, National Chairperson, Socialist Party of Nigeria (SPN), a party initiated by the DSM (CWI in Nigeria):
Why has Boko Haram insurgency grown?

Iraq: Oil war’s bloody legacy
17/06/2014, Judy Beishon, from The Socialist, weekly paper of the Socialist Party (CWI England & Wales):
Escalating sectarian conflict threatens to draw in surrounding countries

Ukraine: Hundreds killed in military clashes
13/06/2014, Rob Jones, CWI, Moscow:
Working people fearing all-out war

Review: ’The Snowden Files’
12/06/2014, Clare Doyle, from Socialism Today (June 2014 issue), monthly magazine of the Socialist Party (CWI in England and Wales):
Exposing the ‘architecture of oppression’

Britain: The Battle of Orgreave
11/06/2014, Ken Smith, from Socialism Today (June 2014 issue), monthly magazine of the Socialist Party (CWI in England and Wales):
1984 state-organised riot against striking miners

Brazil: Homeless struggle and Metro strike as World Cup approaches
09/06/2014, André Ferrari, LSR (CWI in Brazil):
New stage of the class struggle

Euro polls warning
05/06/2014, Robert Bechert, CWI:
In country after country, May’s elections to the European parliament saw governments and traditional parties defeated

2014: The ’rejection election’
30/05/2014, Hannah Sell, Socialist Party (CWI in England and Wales):
Now Trade Unions must lead our fightback

Ireland: Electoral surge against austerity
28/05/2014, Danny Byrne, CWI:
Socialist Party wins a second TD and Anti Austerity Alliance 14 councillors

Euro elections: A revolt against the capitalist establishment
27/05/2014, Peter Taaffe, general secretary of the Socialist Party (CWI in England and Wales):
Gains for the far right but some successes for genuine Left

Turkey: Mass protest and strikes erupt against AKP government and mine-owning cronies
15/05/2014, Socialistworld.net:
Soma mine disaster deadliest in the country’s history

China: What lies behind anti-corruption drive?
13/05/2014, Editorial from Socialist 《社会主义者》magazine (issue 26) (CWI):
Case against former security czar risks dangerous splits in ruling party

Nigeria: Boko Haram’s abduction of school girls horrifies the world
12/05/2014, Hassan Taiwo Soweto, Democratic Socialist Movement (CWI Nigeria), Lagos:
Can a solution to the insurgency be found under capitalism?

Ukraine: Descending into bloody conflict
09/05/2014, Rob Jones, Moscow:
Only united working class action can stop the catastrophe

South Africa: Elections 2014
09/05/2014, By Weizman Hamilton, General Secretary of WASP:
The ANC victory, WASP and the EFF.

Algeria: Abdelaziz Bouteflika sworn in for a fourth presidential term
07/05/2014, Serge Jordan, CWI:
Instability sets to grow