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latest news

May Day 2015
International workers’ day marked by marches and rallies

05/05/2015: Photo gallery of the CWI taking part in May Day event across the world

  May Day

Iceland
Fighting for better wages

05/05/2015: General strike called for 26 May

  Iceland

May Day 2015
Socialist plan or capitalist chaos

01/05/2015: What sort of new society are we struggling for?

  May Day

Nepal
Disaster in Nepal –amplified by capitalism

30/04/2015: Nepal, one of the poorest countries in the south Asian region has been further devastated by the recent earthquake.

  Nepal

US
Rage in Baltimore

29/04/2015: The aftermath of Freddie Gray’s death

  US

Book review
’No place to hide: Edward Snowden, the NSA and the US Surveillance state’

29/04/2015: What the 1% will do to defend their class interests

  Review, US

 May Day 2015
Resisting austerity, exploitation, wars and oppression

28/04/2015: 125 years since first May Day – Build a united workers’ movement for socialism!

  CWI, May Day

Italy
Migrant disasters - the human cost of budget cuts

27/04/2015: From Mare Nostrum to Triton

  Italy

Latin America
A new turn?

25/04/2015: Historic handshake between Barack Obama and Raúl Castro, turmoil in Venezuela, and stalled reforms in Bolivia – as well as crises in Brazil – symbolise a new turn in Latin America and the Caribbean

  Latin America

Finland
Worst ever election result for traditional Left

24/04/2015: Finns Party second biggest in parliament

  Finland

Iran
Proposed nuclear deal reflects transformed Middle East

24/04/2015: In aftermath of disastrous Iraq occupation, Obama administration balancing between region’s forces

  Iran, Middle East

Scotland
Labour face annihilation as millions seek an answer to austerity

23/04/2015: The SNP, according to the polls, will win 53 of Scotland’s 59 Westminster MPs

  Scotland

 Video
Paul Murphy speaking at anti-water charges demo in Dublin

23/04/2015: Socialist Partty (CWI) and Anti-Austerity Alliance TD speaks at march of tens of thosuands against water charges on April 18

  Ireland Republic, Video

 Video
Interview with Jawad Ahmed, famous Pakistani singer and activist

22/04/2015: Jawad Ahmed, Singer and central committee member of International Youth and Workers Movement (IYWM) from Pakistan spoke to CWI about the work of IYWM.

  Pakistan, Video

South Africa
Organise against xenophobia – a programme for our communities

21/04/2015: Build a country-wide socialist civic movement. Fight for jobs, houses and services for all

  Africa, South Africa

 Video
TUSC 100% anti-austerity election broadcast

20/04/2015: Broadcast goes out on all 5 national terrestrial channels

  Britain, Video

Britain
Labour - party of cuts

19/04/2015: Oppose the ’logic of capitalism’

  Britain

Tunisia
After the Bardo terrorist attack

18/04/2015: New class battles loom

  Tunisia

 Video
Paul Murphy attacks bosses’ victimisation of strikers

17/04/2015: Socialist Partty (CWI) and Anti-Austerity Alliance TD speaks in Irish Parliament

  Ireland Republic, Video

US
National day of strikes and protests for $15

17/04/2015: Snapshot of the movement – the fight for $15 in 7 major cities

  US

 Video
Kshama Sawant on Democracy Now

16/04/2015: Socialist Seattle councillor debates Hillary Clinton run for President

  US, Video

Ireland North
Hundreds protest against racist arson attack

15/04/2015: Build a united mass movement to challenge racism, sectarianism and all forms of bigotry

  Ireland North

Yemen
Brutal onslaught on country’s poor

15/04/2015: For unity of workers and poor against imperialism and sectarianism

  Yemen

Québec
A hot spring in the making?

14/04/2015: Students take strike action against austerity

  Quebec

China’s feminists
A victory for protests in China and worldwide

14/04/2015: Five women activists released in rare climb down by Beijing regime

  China

France
First one-day strike against austerity gets big response

13/04/2015: 300, 000 people marched on demonstrations across France on Thursday 9 April

  France

Australia
Budget - Who should pay for the economic crisis?

13/04/2015: Federal government preparing the ground for their second budget

  Australia

Britain
UKIP blame immigration for problems facing working class

12/04/2015: Workers’ unity to defend pay jobs and services

  Britain

Panama 2015 Trade Union and Social Alternative Summit

11/04/2015: For an end to imperialism and capitalism, long live socialist and revolutionary united solidarity in our Americas!

  Latin America

Kenya
The Garissa massacre, Al-Shabaab and US imperialism

10/04/2015: Growing regional destabilisation

  Kenya, US

US
40,000 Seattle workers get pay rise

08/04/2015: Coalition of students and workers demand $15 minimum wage at University of Washington

  US

Australia
Anti-racist protesters vastly outnumber ‘Reclaim Australia’ Melbourne rally

07/04/2015: Only ‘minority’ to blame for society’s problems is ultra-rich 1%

  Australia

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: Paul Murphy speaking at anti-water charges demo in Dublin, 23/04/2015

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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

May Day 2015: International workers’ day marked by marches and rallies
05/05/2015, Socialistworld.net:
Photo gallery of the CWI taking part in May Day event across the world

Iceland: Fighting for better wages
05/05/2015, Per-Åke Westerlund, Rättvisepartiet Socialisterna (CWI Sweden):
General strike called for 26 May

US: Rage in Baltimore
29/04/2015, Eljeer Hawkins, Socialist Alternative, New York:
The aftermath of Freddie Gray’s death

Book review: ’No place to hide: Edward Snowden, the NSA and the US Surveillance state’
29/04/2015, Reviewed by Tony Saunois, CWI:
What the 1% will do to defend their class interests

Kazakhstan: Presidential ‘election - Nazarbayev’s overwhelming victory no surprise
28/04/2015, Elizabeth Clarke, CWI:
Workers need to build mass opposition

Ireland North: Health Minister forced to resign after making homophobic remarks
27/04/2015, Daniel Waldron, Socialist Party (CWI Ireland):
LGBT and women’s rights campaigners boosted

Italy: Migrant disasters - the human cost of budget cuts
27/04/2015, From web-site of ControCorrente (CWI in Italy):
From Mare Nostrum to Triton

Finland: Worst ever election result for traditional Left
24/04/2015, Jonas Brännberg and Juha Tapio for CWI in Finland:
Finns Party second biggest in parliament

Scotland: Labour face annihilation as millions seek an answer to austerity
23/04/2015, Philip Stott, Socialist Party Scotland (CWI in Scotland):
The SNP, according to the polls, will win 53 of Scotland’s 59 Westminster MPs

Video: Paul Murphy speaking at anti-water charges demo in Dublin
23/04/2015, Socialistworld.net:
Socialist Partty (CWI) and Anti-Austerity Alliance TD speaks at march of tens of thosuands against water charges on April 18

Video: Interview with Jawad Ahmed, famous Pakistani singer and activist
22/04/2015, socialistworld.net:
Jawad Ahmed, Singer and central committee member of International Youth and Workers Movement (IYWM) from Pakistan spoke to CWI about the work of IYWM.

South Africa: Organise against xenophobia – a programme for our communities
21/04/2015, Workers and Socialist Party (WASP) leaflet text:
Build a country-wide socialist civic movement. Fight for jobs, houses and services for all

Video: TUSC 100% anti-austerity election broadcast
20/04/2015, socialistworld.net:
Broadcast goes out on all 5 national terrestrial channels

Britain: Labour - party of cuts
19/04/2015, Editorial from The Socialist, paper of the Socialist Party (CWI in England & Wales):
Oppose the ’logic of capitalism’

Video: Paul Murphy attacks bosses’ victimisation of strikers
17/04/2015, Socialistworld.net:
Socialist Partty (CWI) and Anti-Austerity Alliance TD speaks in Irish Parliament

US: National day of strikes and protests for $15
17/04/2015, Socialist Alternative (CWI in US) reporters:
Snapshot of the movement – the fight for $15 in 7 major cities

Video: Kshama Sawant on Democracy Now
16/04/2015, socialistworld.net:
Socialist Seattle councillor debates Hillary Clinton run for President

Ireland North: Hundreds protest against racist arson attack
15/04/2015, Daniel Waldron, Socialist Party (CWI), Belfast:
Build a united mass movement to challenge racism, sectarianism and all forms of bigotry

Québec: A hot spring in the making?
14/04/2015, Deirdre Grégoire, Alternative Socialiste (CWI in Quebec):
Students take strike action against austerity

China’s feminists: A victory for protests in China and worldwide
14/04/2015, chinaworker.info reporters:
Five women activists released in rare climb down by Beijing regime

France: First one-day strike against austerity gets big response
13/04/2015, Report from website of Gauche Revolutionnaire (CWI in France):
300, 000 people marched on demonstrations across France on Thursday 9 April

Australia: Budget - Who should pay for the economic crisis?
13/04/2015, Socialist Party (CWI in Australia) editorial:
Federal government preparing the ground for their second budget

Britain: UKIP blame immigration for problems facing working class
12/04/2015, Editorial of The Socialist (issue 851), weekly paper of the Socialist Party (CWI England & Wales):
Workers’ unity to defend pay jobs and services

Panama 2015 Trade Union and Social Alternative Summit
11/04/2015, The Committee for a Worker’s International, via its Venezuelan Section Socialismo Revolucionario, greets the Panama 2015 Trade Union and Social Alternative Summit.:
For an end to imperialism and capitalism, long live socialist and revolutionary united solidarity in our Americas!

Kenya: The Garissa massacre, Al-Shabaab and US imperialism
10/04/2015, Shaun Arendse, CWI South Africa:
Growing regional destabilisation

US: 40,000 Seattle workers get pay rise
08/04/2015, Kailyn Nicholson, republished from 15Now.org:
Coalition of students and workers demand $15 minimum wage at University of Washington

CWI Comment and Analysis

ANALYSIS

May Day 2015: Socialist plan or capitalist chaos
01/05/2015, Peter Taaffe, Socialist Party General Secretary, (CWI England & Wales):
What sort of new society are we struggling for?

Nepal: Disaster in Nepal –amplified by capitalism
30/04/2015, TU Senan, CWI:
Nepal, one of the poorest countries in the south Asian region has been further devastated by the recent earthquake.

May Day 2015: Resisting austerity, exploitation, wars and oppression
28/04/2015, CWI:
125 years since first May Day – Build a united workers’ movement for socialism!

Latin America: A new turn?
25/04/2015, Tony Saunois, article from May issue of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Historic handshake between Barack Obama and Raúl Castro, turmoil in Venezuela, and stalled reforms in Bolivia – as well as crises in Brazil – symbolise a new turn in Latin America and the Caribbean

Iran: Proposed nuclear deal reflects transformed Middle East
24/04/2015, Robert Bechert, CWI:
In aftermath of disastrous Iraq occupation, Obama administration balancing between region’s forces

Tunisia: After the Bardo terrorist attack
18/04/2015, Serge Jordan:
New class battles loom

Yemen: Brutal onslaught on country’s poor
15/04/2015, Judy Beishon, from The Socialist (weekly paper of the CWI England & Wales):
For unity of workers and poor against imperialism and sectarianism

Economy: What low oil prices cost the world economy
03/04/2015, Lynn Walsh, article from Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
The sudden plunge of oil and gas prices has underlined the volatility in the world capitalist economy

Israel: Netanyahu mobilises far right to win election
25/03/2015, Yasha Marmer, Socialist Struggle Movement, Israel-Palestine:
New coalition will face unresolved crises and bitter struggles

Italy: The instability of domestic capitalism
24/03/2015, Marco Veruggio, ControCorrente (CWI Italy):
Political vacuum pushes FIOM to take initiative

Greece: Varoufakis’ “erratic Marxism” is not the answer
23/03/2015, Peter Taaffe, from Socialism Today (monthly magazine of the Socialist Party, England & Wales):
Necessary to clarify ideas upon which successful struggles of European working class will be conducted

Belgium: No agreement reached between unions and government over austerity
20/03/2015, Eric Byl, LSP/PSL (Belgian section of the CWI), Brussels:
New action plan against right wing government takes off

Ukraine: Conflict unresolved after ’Minsk-2’ agreement
18/03/2015, Rob Jones, CWI, Moscow:
Only independent working-class mass movement can remove the region’s authoritarian rulers

Greece: Syriza’s first months in power
07/03/2015, Andreas Payiatsos, from Xekinima (newspaper of the CWI Greece):
The working class and social movements must enter the struggle for their rights

Quebec: Towards a hot spring
02/03/2015, Deirdre and Bruno, Socialist Alternative (CWI Quebec):
Disrupt them like they disrupt us!

Greece showdown
26/02/2015, Article to be published in the March issue of Socialism Today (magazine of the Socialist Party, CWI in England and Wales):
Niall Mulholland interviewed NICOS ANASTASIADES, of Xekinima (CWI Greece), just as Syriza leaders agreed a four-month bail-out extension with the EU.

Libya: War-torn country becoming new hub for IS activities
25/02/2015, Serge Jordan (CWI):
Libyan people bearing the brunt of NATO’s fiasco

Europe: Eurozone time-bomb
25/02/2015, Lynn Walsh, article from Socialism Today (magazine of the Socialist Party of England and Wales):
Mired in recession, the eurozone is haunted by the spectre of stagnation

Greece: Syriza retreats under Troika threats
24/02/2015, Nicos Anastasiades, Xekinima (CWI Greece), Thessaloniki:
Popular mood shows anti-austerity, socialist policies would win huge support

History: The political legacy of Malcolm X
21/02/2015, Eljeer Hawkins, Socialist Alternative:
50 years after his assassination

Spain: Is ‘Podemos’ the Spanish Syriza?
16/02/2015, Danny Byrne, CWI:
Dangers of “moderation” and domestication

Egypt: Regime brutality on fourth anniversary of revolution
10/02/2015, David Johnson, Socialist Party (CWI England & Wales):
Masses will regain confidence and willingness to fight

Greece: Not a single step back!
08/02/2015, Statement by the Editorial Board of Xekinima (CWI Greece):
Conflict between SYRIZA government and EU escalates

Kurdistan: ‘Islamic State’ driven out of Kobanê
02/02/2015, Serge Jordan, CWI:
Will the end of Kobanê’s siege turn the tide against IS?