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latest news

Britain
After the referendum

24/06/2016: Tories Out! General election now! Fight for a 24 hour general strike

  Britain, Europe

Pakistan
Budget 2016-17

24/06/2016: The digits change but reality remains a nightmare for most

  Pakistan

Britain
EU referendum

23/06/2016: Whatever the result, political turmoil is ahead

  Britain

Taiwan
Student protests win important victory

23/06/2016: Education ministry retreats over increased tuition fees

  Taiwan

Italy
Prime Minister Renzi’s party routed

22/06/2016: Five Star mayors elected in Rome and Turin

  Italy

Ireland
The left wing case for leaving the EU

22/06/2016: Article by Paul Murphy, Irish MP and former MEP and CWI member

  Ireland Republic

Hong Kong
New protests as kidnapped bookseller speaks out

22/06/2016: Gangster methods of China’s regime exposed

  Hong Kong

Ireland
This weak government can be beaten

21/06/2016: “The reality is that a small clique of hard-left, Trotskyite politicians, who are quite upfront about seeking to overthrow the current system, are now arguably setting the political agenda.” (Shane Coleman, Irish Independent 17 May 2016)

  Ireland Republic

 Pakistan
Women health workers protest in Sindh

21/06/2016: Lady Health Workers organisation protests at non-payment of wages

  Pakistan, Women

Britain
EU referendum

19/06/2016: Whatever the result, political turmoil is ahead

  Britain

US
Stand together against bigotry, war and terrorism

17/06/2016: Orlando – massive wave of solidarity with LGBTQ community

  US

Asia
Conflict in the South China Sea

16/06/2016: Territorial disputes resemble pieces on a ‘geopolitical chessboard’ as the US and China struggle for hegemony in Asia

  Asia, China

Middle East
ISIS under pressure on several fronts

15/06/2016: Working classes, through bitterest of experiences, will take to road of mass struggle again

  Iraq, Middle East, Syria

France
Massive protest demonstration in Paris

15/06/2016: Workers march as Senate debates hated labour law reform

  France

 US
Over 100,000 sign petition for independent Sanders challenge

13/06/2016: Surge in support for petition initiated by socialist councillor Kshama Sawant

  US, Video

US
Orlando massacre

13/06/2016: Stand with our LGBTQ Sisters and Brothers! Fight back against Scapegoating & Islamophobia!

  US

Belgium
New trade union action plan

13/06/2016: “The cup is full !”

  Belgium

Egypt’s workers in revolt

12/06/2016: Review of "The Egyptians: a radical story"

  Egypt

Environment
EU green myths

11/06/2016: The truth about the EU and the environment

  Environment

EU
Left parties turning against bosses’ Europe

10/06/2016: Progress in Portugal and Spain, confusion in Britain

  Europe, Portugal, Spain

History
China’s ’Cultural Revolution’ 1966-67

10/06/2016: 50 years ago the ’Cultural Revolution’ began in China.

  China, History

Britain
Youth and the EU referendum

09/06/2016: Fight for our future, starting with a Leave vote to smash the Tories

  Britain

Muhammad Ali
A fighter who inspired millions

09/06/2016: Establishment forced to incorporate his legend into re-writing of history

  Sport

Review
The working-class case against the EU

08/06/2016: Review of ‘And The Weak Must Suffer What They Must?’ by Yanis Varoufakis

  Review

China
1989 mass movement and June 4 massacre

08/06/2016: Video by CWI comrades in China and Hong Kong

  China, History

Greece
Victory for Athens bus cleaners

07/06/2016: Strike action wins major concessions from contractors and bus administration

  Greece

Northern Ireland
Biggest union votes to support exit from the EU

06/06/2016: Union and Labour leaders should join NIPSA and other combative unions in opposing bosses’ club

  Ireland North

Venezuela
On the brink of collapse?

04/06/2016: Counter-revolution gaining ground

  Venezuela

Germany
After party conference, where is DIE LINKE going?

03/06/2016: SAV/CWI member Lucy Redler elected to national committee

  Germany

Portugal
Lisbon dockers victory against precarious work

02/06/2016: Militant strike action blocks bosses attempts to undermine collective bargaining

  Portugal

Britain
Tories tearing themselves apart over EU referendum

01/06/2016: Socialists say, ‘Vote Leave to get Cameron out!’

  Britain

France
Fight against Valls/Hollande government intensifies

31/05/2016: Gauche Revolutionnaire statement underlines vital need for political alternative

  France

Spain
Left government on the horizon in June elections

31/05/2016: Establishment parties panic as Podemos and United Left agree joint election challenge

  Spain

Greece
Bus cleaners renew strike after management’s broken promises

29/05/2016: "Triple-oppressed workers - immigrants, women and low-paid – show way forward"

  Greece

Congo
Day of Protest 26 May

28/05/2016: New massacres in mineral-rich region

  Congo

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: After the referendum
24/06/2016, Hannah Sell, Socialist Party deputy general secretary:
Tories Out! General election now! Fight for a 24 hour general strike

Pakistan: Budget 2016-17
24/06/2016, Muhammad Khan Ahmedani Socialist Movement Sindh, Pakistan:
The digits change but reality remains a nightmare for most

Britain: EU referendum
23/06/2016, Editorial from the Socialist, paper of the Socialist Party (CWI in England & Wales):
Whatever the result, political turmoil is ahead

Taiwan: Student protests win important victory
23/06/2016, CWI Taiwan:
Education ministry retreats over increased tuition fees

Italy: Prime Minister Renzi’s party routed
22/06/2016, Chris Thomas, ControCorrente (CWI Italy):
Five Star mayors elected in Rome and Turin

Ireland: The left wing case for leaving the EU
22/06/2016, Originally published on sluggerotoole.com:
Article by Paul Murphy, Irish MP and former MEP and CWI member

Hong Kong: New protests as kidnapped bookseller speaks out
22/06/2016, Dikang, Socialist Action (CWI in Hong Kong):
Gangster methods of China’s regime exposed

Ireland: This weak government can be beaten
21/06/2016, By Paul Murphy, Anti-Austerity Alliance MP and Socialist Party (CWI in Ireland) member:
“The reality is that a small clique of hard-left, Trotskyite politicians, who are quite upfront about seeking to overthrow the current system, are now arguably setting the political agenda.” (Shane Coleman, Irish Independent 17 May 2016)

Pakistan: Women health workers protest in Sindh
21/06/2016, Sughran Khaskheli:
Lady Health Workers organisation protests at non-payment of wages

Britain: EU referendum
19/06/2016, Editorial of the Socialist, issue 906:
Whatever the result, political turmoil is ahead

US: Stand together against bigotry, war and terrorism
17/06/2016, Tom Crean, Socialist Alternative:
Orlando – massive wave of solidarity with LGBTQ community

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

France : Massive protest demonstration in Paris
15/06/2016, Naomi Byron in France for The Socialist, paper of the Socialist Party (CWI in England and Wales):
Workers march as Senate debates hated labour law reform

US: Over 100,000 sign petition for independent Sanders challenge
13/06/2016, socialistworld.net:
Surge in support for petition initiated by socialist councillor Kshama Sawant

US: Orlando massacre
13/06/2016, Immediate reaction from Kshama Sawant, Socialist Alternative councillor, Seattle:
Stand with our LGBTQ Sisters and Brothers! Fight back against Scapegoating & Islamophobia!

Belgium: New trade union action plan
13/06/2016, Nicolas Croes, PSL-LSP (CWI in Belgium):
“The cup is full !”

Egypt’s workers in revolt
12/06/2016, Christine Thomas:
Review of "The Egyptians: a radical story"

Environment: EU green myths
11/06/2016, Claire Laker Mansfield, originally published in Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
The truth about the EU and the environment

History: China’s ’Cultural Revolution’ 1966-67
10/06/2016, Edited version of article written by Socialist Party general secretary Peter Taaffe for Militant (predecessor of the Socialist) in February 1967.:
50 years ago the ’Cultural Revolution’ began in China.

Britain: Youth and the EU referendum
09/06/2016, Editorial from the Socialist (weekly paper of the Socialist Party – CWI England & Wales):
Fight for our future, starting with a Leave vote to smash the Tories

China: 1989 mass movement and June 4 massacre
08/06/2016, Socialist Action (CWI) reporters in Hong Kong:
Video by CWI comrades in China and Hong Kong

Greece: Victory for Athens bus cleaners
07/06/2016, Eleni Mitsou (Xekinima - CWI Greece) and Apostolis Kasimeris (Board Member of OASA - Athens Bus Workers’ Union):
Strike action wins major concessions from contractors and bus administration

Northern Ireland: Biggest union votes to support exit from the EU
06/06/2016, Kevin Henry, Socialist Party (CWI in Ireland):
Union and Labour leaders should join NIPSA and other combative unions in opposing bosses’ club

Venezuela: On the brink of collapse?
04/06/2016, Tony Saunois, Committee for a Workers’ International (CWI):
Counter-revolution gaining ground

Germany: After party conference, where is DIE LINKE going?
03/06/2016, Michael Koschitzki, SAV (CWI in Germany):
SAV/CWI member Lucy Redler elected to national committee

Portugal: Lisbon dockers victory against precarious work
02/06/2016, João Félix Socialismo Revolucionário (CWI in Portugal):
Militant strike action blocks bosses attempts to undermine collective bargaining

CWI Comment and Analysis

ANALYSIS

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

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?

US: The un-Democratic Primary
22/04/2016, Kshama Sawant, Socialist Alternative Seattle, originally published on counterpunch.org:
Why we need new party of the 99%

Capitalism: a failing system
18/04/2016, Peter Taaffe, from May edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
A new book, The Rise and Fall of American Growth, analyses the downward course of the US economy – and the limits of the whole capitalist system

Review: ’Militant’ by Michael Crick
14/04/2016, Peter Taaffe, Socialist Party (CWI in England & Wales) general secretary:
Lessons of Militant vital for anti-austerity struggles today

US election turmoil
01/04/2016, By Tony Saunois (CWI Secretary) who recently visited the US for meetings of Socialist Alternative:
Bernie Sanders campaign - an opportunity to build a new party of the 99%

Britain: A new moment
28/03/2016, Socialist Party (CWI in England & Wales), published in April 2016 issue of Socialism Today:
Extracts from a statement discussed at the Socialist Party’s recent congress

Ireland: 100th anniversary of Easter 1916 Rising
26/03/2016, Cillian Gillespie, Socialist Party (CWI Ireland):
A revolt against imperial power and war

History: When Khrushchev denounced Stalin
26/03/2016, Niall Mulholland, from Socialism Today (April 2016 issue of the monthly journal of Socialist Party, England & Wales):
1956 ‘secret speech’ a devastating blow to Stalinist regimes

11th CWI World Congress: World Perspectives
22/03/2016, socialistworld.net:
Amended agreed version of the World Perspectives document agreed by the CWI’s 11th World Congress

Germany: Big gains for right-wing, nationalist, AfD in state elections
22/03/2016, Sascha Stanicic, Sozialistische Alternative (CWI in Germany):
DIE LINKE (Left Party) urgently needs to change course