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

latest news

Britain
100,000 attend TUC’s pay rise demo

21/10/2014: Calls for local government strike action to be reinstated

  Britain

Kazakhstan
Brutal repression in imperialism’s interests

20/10/2014: Workers pay the price for crony capitalism

  Kazakhstan

Is the US promoting a “colour revolution” in Hong Kong?

18/10/2014: Beijing’s scare propaganda doesn’t stand up to examination

  Hong Kong, US

Britain
Workers need a pay rise - how can we pay for it?

17/10/2014: End poverty, inequality and capitalism

  Britain

Scotland
10,000 attend Hope Over Fear rally

16/10/2014: ’Political awakening’ continues after independence referendum

  Scotland

 Ireland
’The people have risen, they should not kneel down again’

15/10/2014: Paul Murphy TD (MP) makes maiden speech in Parliament

  Ireland Republic, Video

Ireland
Byelection triumph marks turning point in anti-austerity struggle

14/10/2014: Paul Murphy wins parliamentary seat as 100,000 march against water charges

  Ireland Republic

Middle East
US-led policy of air attacks on Islamic State lies in ruins

13/10/2014: As battle for Kobane rages, IS forces make major gains in Iraq

  Middle East, US

 Ireland
Paul Murphy elected to Irish parliament in stunning byelection victory

12/10/2014: Anti-Austerity Alliance victory shocks political establishment, reflects mass revolt against water charges and austerity

  Ireland Republic, Video

South Africa
"A workers’ party must emerge"

11/10/2014: Dire position of South African capitalism and inequality adds momentum towards creation of workers’ party

  Africa, South Africa

Scotland
SNP budget sees another £500 million cuts

10/10/2014: For a ’no-cuts budget’ and mass campaign to win back billions stolen by ConDem government!

  Scotland

Middle East
Repel Islamic State and imperialism

08/10/2014: For democratic workers’ defence and Kurdish self-determination

  Middle East, Syria, Turkey

Israel/Palestine
After the Gaza war

07/10/2014: No justice for Palestinians and no peace for the region - For a socialist solution!

  Israel / Palestine

Hong Kong
Pro-regime thugs attack protesters

06/10/2014: Organise democratic defence committees to repel attacks and kick out CY Leung’s government!

  Hong Kong

New Zealand
National Party forms third successive government

04/10/2014: Labour Party and the Left in crisis

  New Zealand

Africa
Ebola crisis spreads

03/10/2014: Consequence of profit before health

  Africa

Kurdistan
The battle for Kobanê

02/10/2014: Regional war poses new challenges for struggle for Kurdish self-determination

  Iraq, Kurdistan, Syria, Turkey

Iraq /Syria
US-led bombings will worsen divisions

01/10/2014: Stop imperialist slaughter!

  Iraq, Syria, US

Hong Kong
Massive anti-government protests after attempted police crackdown

30/09/2014: Anger over police violence fuels spontaneous “umbrella revolution” and growing strike movement

  Hong Kong

Britain
Labour to continue austerity offensive

26/09/2014: Labour conference a carefully stage-managed affair

  Britain

Ireland South
Is Sinn Féin a genuine left alternative?

25/09/2014: Seeking alliances with austerity parties

  Ireland Republic

Scotland
Independence referendum - A working-class revolt

24/09/2014: The referendum has turned British politics upside down – even though the No vote won

  Scotland

Britain
Capitalist parties in crisis after Scotland revolt

24/09/2014: Build a working class alternative

  Britain, Scotland

Greece
"This destruction of workers’ lives serves the bankers"

23/09/2014: “We must all keep going…we have no other way to survive than to fight-back”

  Greece

Iran
Petrochemical workers sentenced to jail and flogging

22/09/2014: Protest against Iranian government’s brutal sentences!

  Iran

 Environment
Video of Climate Summit meeting with Kshama Sawant

22/09/2014: Video of New York City Climate Summit meeting with Bernie Sanders, Kshama Sawant, Bill KcKibben, Naomi Klein, Chris Hedges

  Environment, US, Video

Scotland
1.6 million vote Yes in a working class revolt against austerity

19/09/2014: Urgent to build new mass party for the working class

  Scotland

Belgium
Right wing coalition aims for structural attack on workers

19/09/2014: Massive social resistance is looming

  Belgium

Northern Ireland
Ian Paisley - peace-maker or war-monger?

18/09/2014: A right-wing, sectarian demagogue who courted paramilitary violence

  Ireland Republic

Scotland
Independence referendum

18/09/2014: "Britain will never be the same again"

  Britain

Spain
Millions take to streets calling for Catalonia’s independence

18/09/2014: Only working class struggle can guarantee the right to decide and resist austerity

  Spain

Sweden
Conservative collapse, extreme-right gains

17/09/2014: CWI success, defended four council seats

  Sweden

Scotland
Thousands mobilise to oppose Project Terror in Scotland

17/09/2014: "You will not take this opportunity away from us"

  Scotland

US
Inequality and fight-back in the world’s richest country

16/09/2014: Socialist Alternative articulates political strategy to break from Democratic Party and capitalism

  US

 Video
John McInally on Scottish Independence

16/09/2014: John McInally, PCS national vice-president (personal capacity), adresses the issue of Scottish independence at a meeting of the Trade Unionist and Socialist Coalition (TUSC)

  Video

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

Ireland : ’The people have risen, they should not kneel down again’, 15/10/2014

 further videos

CWI - get involved


solidarity

tamil solidarity campaign kazakhstan

featured links

Paul Murphy, MEP

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

Britain: 100,000 attend TUC’s pay rise demo
21/10/2014, Socialist Party Reporters, London:
Calls for local government strike action to be reinstated

Scotland: 10,000 attend Hope Over Fear rally
16/10/2014, Matt Dobson, Socialist Party Scotland (CWI), Glasgow:
’Political awakening’ continues after independence referendum

Ireland :’The people have risen, they should not kneel down again’
15/10/2014, :
Paul Murphy TD (MP) makes maiden speech in Parliament

Scotland: SNP budget sees another £500 million cuts
10/10/2014, Philip Stott, Socialist Party Scotland (CWI):
For a ’no-cuts budget’ and mass campaign to win back billions stolen by ConDem government!

Middle East: Repel Islamic State and imperialism
08/10/2014, Paula Mitchell (edited version of an article in this week’s Socialist, paper of the Socialist Party – CWI England & Wales):
For democratic workers’ defence and Kurdish self-determination

New Zealand: National Party forms third successive government
04/10/2014, Socialist Voice (CWI NZ) Reporters:
Labour Party and the Left in crisis

Africa: Ebola crisis spreads
03/10/2014, Andy Ford, health sector, and Tim Sandle, from Socialist Party (CWI England & Wales) website:
Consequence of profit before health

Britain: Labour to continue austerity offensive
26/09/2014, Matt Gordon, from the Socialist (weekly paper of the Socialist Party - CWI England & Wales):
Labour conference a carefully stage-managed affair

Ireland South: Is Sinn Féin a genuine left alternative?
25/09/2014, Conor Payne, Socialist Party (CWI Ireland), Cork:
Seeking alliances with austerity parties

Britain: Capitalist parties in crisis after Scotland revolt
24/09/2014, Editorial from the Socialist (issue 826), weekly newspaper of the Socialist Party (CWI England & Wales):
Build a working class alternative

Iran: Petrochemical workers sentenced to jail and flogging
22/09/2014, Appeal from Campaign in Support of Iranian Workers’:
Protest against Iranian government’s brutal sentences!

Environment: Video of Climate Summit meeting with Kshama Sawant
22/09/2014, Video from The Real News:
Video of New York City Climate Summit meeting with Bernie Sanders, Kshama Sawant, Bill KcKibben, Naomi Klein, Chris Hedges

Scotland: 1.6 million vote Yes in a working class revolt against austerity
19/09/2014, Philip Stott, Socialist Party Scotland (CWI in Scotland):
Urgent to build new mass party for the working class

Northern Ireland: Ian Paisley - peace-maker or war-monger?
18/09/2014, Michael Cleary, Socialist Party (CWI Ireland), Belfast:
A right-wing, sectarian demagogue who courted paramilitary violence

Scotland: Independence referendum
18/09/2014, Editorial of the Socialist, newspaper of the Socialist Party (CWI in England & Wales):
"Britain will never be the same again"

Spain: Millions take to streets calling for Catalonia’s independence
18/09/2014, Rob MacDonald, Socialismo Revolucionario (CWI in Spain) Barcelona:
Only working class struggle can guarantee the right to decide and resist austerity

Scotland: Thousands mobilise to oppose Project Terror in Scotland
17/09/2014, Matt Dobson, Socialist Party Scotland (CWI Scotland):
"You will not take this opportunity away from us"

Video: John McInally on Scottish Independence
16/09/2014, Socialistworld.net:
John McInally, PCS national vice-president (personal capacity), adresses the issue of Scottish independence at a meeting of the Trade Unionist and Socialist Coalition (TUSC)

Belgium: First school student protest against cuts in education
15/09/2014, Jeroen Demuynck, PSL-LSP (CWI in Belgium):
Anger against austerity growing

Asia-Pacific: Majority of Chinese expect war with Japan
13/09/2014, Dikang, chinaworker.info:
Warmongering governments ratchet-up national tensions in struggle for regional dominance

Scotland: Defeat Project Terror with socialist policies
12/09/2014, Philip Stott, Socialist Party Scotland (CWI):
Big business, politicians and media attack independence

US: building a movement to end poverty pay!
12/09/2014, Geoff Jones, Socialist Party (CWI in England & Wales) and Ty Moore, Socialist Alternative (CWI in the US):
Spreading and organising the movement for decent wages

South Africa: Community protest over corruption widens
11/09/2014, WASP reporters:
Authorities deploy heavily armed response

Chile: The other ‘9/11’
11/09/2014, Tony Saunois, CWI (first published on socialistworld.net, September 2011):
1973 bloody coup against Popular Unity government

Sri Lanka:Veteran trade union leader dies
09/09/2014, United Socialist Party:

Bosnia: Privatise to colonise
08/09/2014, Sonja Grusch, Socialist Left Party (CWI Austria):
How looting of the economy led to mass social protests

CWI Comment and Analysis

ANALYSIS

Kazakhstan: Brutal repression in imperialism’s interests
20/10/2014, Mike Whale, Secretary of Campaign Kazakhstan (first published in October 2014 issue of Socialism Today):
Workers pay the price for crony capitalism

Is the US promoting a “colour revolution” in Hong Kong?
18/10/2014, Dikang, Socialist Action (CWI in Hong Kong):
Beijing’s scare propaganda doesn’t stand up to examination

Britain: Workers need a pay rise - how can we pay for it?
17/10/2014, Peter Taaffe, general secretary of the Socialist Party (CWI in England and Wales):
End poverty, inequality and capitalism

Ireland: Byelection triumph marks turning point in anti-austerity struggle
14/10/2014, Eddie McCabe, Socialist Party (CWI in Ireland):
Paul Murphy wins parliamentary seat as 100,000 march against water charges

Middle East: US-led policy of air attacks on Islamic State lies in ruins
13/10/2014, Tony Saunois, CWI:
As battle for Kobane rages, IS forces make major gains in Iraq

Ireland: Paul Murphy elected to Irish parliament in stunning byelection victory
12/10/2014, socialistworld.net:
Anti-Austerity Alliance victory shocks political establishment, reflects mass revolt against water charges and austerity

South Africa: "A workers’ party must emerge"
11/10/2014, John Malanga, Democratic Socialist Movement (CWI South Africa):
Dire position of South African capitalism and inequality adds momentum towards creation of workers’ party

Israel/Palestine: After the Gaza war
07/10/2014, Shahar Benhorin, Socialist Struggle Movement (CWI Israel-Palestine):
No justice for Palestinians and no peace for the region - For a socialist solution!

Hong Kong: Pro-regime thugs attack protesters
06/10/2014, Dikang, Socialist Action (CWI Hong Kong):
Organise democratic defence committees to repel attacks and kick out CY Leung’s government!

Kurdistan: The battle for Kobanê
02/10/2014, Serge Jordan, CWI:
Regional war poses new challenges for struggle for Kurdish self-determination

Iraq /Syria: US-led bombings will worsen divisions
01/10/2014, Judy Beishon, from the Socialist (weekly newspaper of the Socialist Party – CWI England & Wales):
Stop imperialist slaughter!

Hong Kong: Massive anti-government protests after attempted police crackdown
30/09/2014, Vincent Kolo, chinaworker.info:
Anger over police violence fuels spontaneous “umbrella revolution” and growing strike movement

Scotland: Independence referendum - A working-class revolt
24/09/2014, Peter Taaffe, General Secretary, Socialist Party (CWI England & Wales):
The referendum has turned British politics upside down – even though the No vote won

Greece: "This destruction of workers’ lives serves the bankers"
23/09/2014, Speech by Apostolis Kasimeriss, an Athens bus driver, to Italian socialists:
“We must all keep going…we have no other way to survive than to fight-back”

Belgium: Right wing coalition aims for structural attack on workers
19/09/2014, Eric Byl, LSP/PSL (Belgian section of the CWI), Brussels:
Massive social resistance is looming

Sweden: Conservative collapse, extreme-right gains
17/09/2014, Per Olsson, from Offensiv (newspaper of the Rättvisepartiet Socialisterna - CWI Sweden):
CWI success, defended four council seats

US: Inequality and fight-back in the world’s richest country
16/09/2014, Peter Taaffe, General Secretary, Socialist Party (CWI England & Wales):
Socialist Alternative articulates political strategy to break from Democratic Party and capitalism

Brazil: Will elections mark the end of the PT government?
15/09/2014, Andre Ferrari, LSR (CWI in Brazil):
Space for Left alternative to win support

Ukraine: Fragile ceasefire holds but country remains “a tinder box”
10/09/2014, Rob Jones, CWI, Moscow:
Only united working class action can secure lasting peace

Scotland: 10 days that can shake British capitalism to its foundations
08/09/2014, Philip Stott, Socialist Party Scotland (CWI in Scotland):
“In the past four weeks support for the union has drained away at an astonishing rate. The Yes campaign has not just invaded No territory; it has launched a blitzkrieg.”

Britain: Crisis brewing on all fronts
05/09/2014, Hannah Sell, deputy general secretary of the Socialist Party (CWI in England and Wales):
The 2015 general election is a mere eight months away yet impossible to call. But what is clear is that none of the capitalist parties hold any real attraction for working class voters.

Beijing slams door shut on Hong Kong democracy
02/09/2014, Statement by Socialist Action (CWI Hong Kong):
Mass resistance against one-party dictatorship is the only way forward!

Iraq: Only united action can stop sectarian war
16/08/2014, Robert Bechert, CWI:
Iraqis and Kurds must not trust imperialist ‘helpers’

Socialism and national rights
15/08/2014, From Socialism Today No.181, September 2014 by Peter Taaffe, General Secretary of Socialist Party (England and Wales), CWI Secretariat:
Ukraine, Israel/Palestine and other countries

Ukraine: Crisis deepens
09/08/2014, Clare Doyle, CWI Secretariat:
Military conflict escalates