deutsch |  english |  español  |  français  |  italiano  |  nederlands  |  polski  |  português  |  svenska  |  türkçe  |  中文  |  عربي  |  русский

latest news

Haiti
225th anniversary of anti-slavery, anti-colonial revolution

27/08/2016: A heroic and lasting inspiration to the oppressed everywhere

  Haiti

Scotland
Will the Corbyn uprising save Scottish Labour?

27/08/2016: Lessons of indyref and need for active anti-cuts policies

  Scotland

Greece
Athens bus cleaners win major victory

26/08/2016: Struggle achieves public contracts for 100s cleaning workers

  Greece

Russia
Twenty five years since the coup against Gorbachev

25/08/2016: Decades of ‘shock therapy capitalism’, wars and corruption

  Russia

Chile
Up to 2 million march against pensions robbery

24/08/2016: General strike threatened for 4 November as protests grow

  Chile

Quebec
Montreal workers strike for $15 an hour

22/08/2016: "Company totally underestimated workers’ determination"

  Quebec

 Video
Militant, Liverpool and Trotskyism today

22/08/2016: Russia Today covers historic Liverpool battle, led by the CWI in Britain

  Trotsky, Video

US
Build a new party of the 99%

21/08/2016: Support Jill Stein

  US

Middle East
ISIS’ waning “caliphate”

20/08/2016: Imperialist solutions are no solution at all

  Middle East

Russia
Twenty fifth anniversary of attempted coup

19/08/2016: Attempted Stalinist counter-revolution speeds up capitalist counter-revolution

  Russia

US
Trump in trouble

17/08/2016: Political polarisation deepens

  US

Philippines
Is Duterte following in Marcos’ footsteps?

16/08/2016: New president threatens martial law while leaning on ‘left’ parties for support

  Philippines

Britain
The Corbyn insurgency 2.0

15/08/2016: Now let’s finish the job

  Britain

 Video
Socialist Party general secretary Peter Taaffe on Channel 4

14/08/2016: Socialist party media coverage amid accusations of Trotskyist "entryism"

  Video

 Video
CWI around the world

13/08/2016: Video shown at the CWI Summer school of some sections’ activities

  CWI, Video

Quebec
World Social Forum 2016

13/08/2016: Tens of thousands of activists from around the world gather WSF in Montreal, 9-14 August

  Canada, Quebec

Hong Kong
Multinational MTR takes socialist Sally Tang Mei-ching to court

12/08/2016: Political motives behind ‘David versus Goliath’ trial

  Hong Kong

Britain
#KeepCorbyn - stand firm for socialism

10/08/2016: The fight for a Labour Party for the working class

  Britain

South Africa
Local elections a thunderous rebuke for ANC

09/08/2016: ANC polls less than 60% for first time since end of apartheid

  Africa, South Africa

Zimbabwe
Mugabe must fall!

05/08/2016: Mass revolt shakes the regime to its foundations

  Zimbabwe

The Olympics, big business and dictatorship

04/08/2016: A short history of the Olympics:

  History

 CWI Summer school
Brazil

04/08/2016: New cycle of struggle following right-wing parliamentary coup

  Brazil, CWI

 CWI Summer School
Economic instability, inter-imperialist tensions, workers struggles’ and political earthquakes

03/08/2016: Report of the discussion on world perspectives at the recent CWI Summer School

  CWI, Turkey

 CWI Summer School 2016
Fighting racism and the far right 

02/08/2016: Capitalist crisis and anti-immigrant reaction

  CWI

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

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.



Europe

 video

Video: Militant, Liverpool and Trotskyism today, 22/08/2016

 further videos

CWI - get involved


solidarity

tamil solidarity campaign kazakhstan

featured links

Socialist Party Ireland

cwi links

Marxist.net, CWI marxist archive

cwi comment & analysis

world economic crisis

analysis and commentary


cwi publications

marxism in today's world che

Che Guevara: Símbolo de Lucha

Por Tony Saunois

A socialist world is possible, the history of the cwi with new introduction by Peter Planning green growth, a contribution to the debate on enviromental sustainability

NEWS

Scotland: Will the Corbyn uprising save Scottish Labour?
27/08/2016, Philip Stott, Socialist Party Scotland (CWI) :
Lessons of indyref and need for active anti-cuts policies

Greece: Athens bus cleaners win major victory
26/08/2016, Interview with Eleni Mitsou (Xekinima - CWI Greece) and Apostolis Cassimere’s (Board Member of OASA - Athens Bus Workers’ Union):
Struggle achieves public contracts for 100s cleaning workers

Pakistan: Vindictive management suspend and transfer Sindh teachers
24/08/2016, CWI Reporters, Sindh :
Solidarity protests needed!

Chile: Up to 2 million march against pensions robbery
24/08/2016, Socialismo Revolucionario (CWI in Chile) reporters:
General strike threatened for 4 November as protests grow

Britain: Answer right’s attacks with firm socialist programme
23/08/2016, Editorial from the Socialist, paper of the Socialist Party (CWI in England & Wales):
#KeepCorbyn

Quebec: Montreal workers strike for $15 an hour
22/08/2016, Interview with Jacques Fontaine, a striking worker at the Old Port of Montreal:
"Company totally underestimated workers’ determination"

Video: Militant, Liverpool and Trotskyism today
22/08/2016, socialistworld.net:
Russia Today covers historic Liverpool battle, led by the CWI in Britain

US: Build a new party of the 99%
21/08/2016, Joshua Koritz, Socialist Alternative, USA:
Support Jill Stein

Philippines: Is Duterte following in Marcos’ footsteps?
16/08/2016, Vincent Kolo (CWI) interviews Philippines-based socialist, Gabriel:
New president threatens martial law while leaning on ‘left’ parties for support

Video: Socialist Party general secretary Peter Taaffe on Channel 4
14/08/2016, Socialistworld.net:
Socialist party media coverage amid accusations of Trotskyist "entryism"

Video: CWI around the world
13/08/2016, socialistworld.net:
Video shown at the CWI Summer school of some sections’ activities

Quebec: World Social Forum 2016
13/08/2016, socialistworld.net:
Tens of thousands of activists from around the world gather WSF in Montreal, 9-14 August

Hong Kong: Multinational MTR takes socialist Sally Tang Mei-ching to court
12/08/2016, Socialist Action reporters (CWI in Hong Kong):
Political motives behind ‘David versus Goliath’ trial

Britain: #KeepCorbyn - stand firm for socialism
10/08/2016, Editorial from the Socialist, paper of the Socialist Party (CWI in England & Wales):
The fight for a Labour Party for the working class

South Africa: Local elections a thunderous rebuke for ANC
09/08/2016, Weizmann Hamilton, Workers and Socialist Party (CWI in South Africa):
ANC polls less than 60% for first time since end of apartheid

Ireland: Non-payment of water bills rises to 73%
09/08/2016, Katia Hancke, Socialist Party (CWI in Ireland):
Abolish the charges now

Zimbabwe: Mugabe must fall!
05/08/2016, Statement by the Executive Committee of the Workers and Socialist Party (CWI in South Africa):
Mass revolt shakes the regime to its foundations

The Olympics, big business and dictatorship
04/08/2016, Vincent Kolo, chinaworker.info:
A short history of the Olympics:

CWI Summer school: Brazil
04/08/2016, Michael O’Brien, Socialist Party (CWI in Ireland):
New cycle of struggle following right-wing parliamentary coup

CWI Summer School 2016: Fighting racism and the far right 
02/08/2016, Scott Jones, Socialist Party (CWI England & Wales):
Capitalist crisis and anti-immigrant reaction

Germany: Media seizes on violent attacks to whip up Islamophobia
01/08/2016, Sascha Stanicic, Sozialistische Alternative (CWI in Germany):
No security under capitalism

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

CWI Comment and Analysis

ANALYSIS

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

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