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latest news

Portugal
Witch hunt in Left Bloc?

05/12/2016: Solidarity in defence of CWI members and symphthisers

  Portugal

Spain
Militant struggle by Students Union succeeds

02/12/2016: Mass student strikes force PP government to retreat

  Spain

Sudan
Three day nationwide strike shuts down the country, in unique defiance of Al-Bashir’s rule

30/11/2016: Escalation of the struggle needed to overthrow repressive regime

  Sudan

Turkey
AKP regime sliding towards personal dictatorship

28/11/2016: United workers’ struggle only antidote against Erdoğan’s rule

  Turkey

US
Trump prepares attacks on working people,immigrants and women

27/11/2016: We must prepare massive resistance!

  US

Kashmir
Brutal suppression of uprising

26/11/2016: Battle zone of proxy conflicts. United working class opposition needed

  Kashmir

Cuba
Fidel Castro, leader of 1959 revolution, dies at 90

26/11/2016: Castro's life and the Cuban Revolution

  Cuba

China
New stage in power struggle

24/11/2016: Xi Jinping becomes “core leader”

  China

Spain
Students' Union surges forward in historic congress

22/11/2016: Hundreds rally to celebrate 30th anniversary of SE and 40th anniversary of Izquierda Revolucionaria / El Militante

  Spain

Pakistan
ISIS terrorists attack Sufi shrine

21/11/2016: The struggle of Baluchi people

  Pakistan

India
‘Demonetisation’ shock

19/11/2016: Modi unleashes war on poor

  India

Sri Lanka
Fair is foul - IMF Budget unleashed

18/11/2016: IMF led austerity budget has unveiled in Sri Lanka

  Sri Lanka

Hong Kong
Government purges Legislative Council

17/11/2016: “Nothing short of a coup”

  Hong Kong

Socialism 2016
Electrifying and powerful weekend puts socialism on the agenda

16/11/2016: Struggle, internationalism and socialism, these ideas - and how powerful they can be in action, electrified the magnificent rallies and workshops of the Socialism 2016 weekend.

  Britain

 Video
Socialism 2016, London

16/11/2016: An electrifying and powerful weekend which put socialism back on the agenda

  Britain, Video

US
Anti-Trump protests

12/11/2016: In less than 24 hours, 40,000 people answered our call

  US

Ireland
The Jobstown trial and the threat to democratic rights<br />

12/11/2016: Biggest political trial in decades, as Socialist Party & Anti Austerity Alliance MP and councillors face threat of lengthy prison sentences

  Ireland Republic

Spain
Student strike gives first mass response on the streets to new PP government

11/11/2016: Interview with Ana Garcia, General Secretary of the Sindicato de Estudiantes (Spanish Students’ Union)

  Spain

Kazakhstan

10/11/2016: No to land privatisation - Release Max Bokayev and Talgat Ayanov!

  Kazakhstan

 Video
Irish Socialist MPs react to Trump election

10/11/2016: Ruth Coppinger and Mick Barry speak in Irish parliament

  Ireland Republic, US, Video

US
We need mass resistance to Trump and a new party of the 99%

10/11/2016: A Presidency of chaos and struggle

  US

US
Build a grassroots movement to stop Trump's agenda

09/11/2016: Polls showed that Donald Trump was the most hated Presidential candidate in the history of this country. Yet the Wall Street, Wal-Mart, warmonger Clinton couldn't defeat him…

  US

US
Deeply damaged, the two parties limp towards the finish line

08/11/2016: Whoever wins tomorrow will enter office facing unprecedented levels of popular hostility

  US

History
Russia’s 1917 socialist revolution

07/11/2016: November 7th anniversary of workers’ taking power

  Russian Revolution

Philippines
‘China pivot’ from Duterte

07/11/2016: Philippines leader seeks to play off superpowers to win economic concessions

  Philippines

Turkey
People's Democratic Party leaders arrested

04/11/2016: Urgent appeal to demand their immediate release

  Turkey

 Capitalist system “on the edge of the volcano”

03/11/2016: Draft documents for November CWI international meeting

  CWI

Spain
PSOE leadership hands power to the PP

03/11/2016: A new phase in the class struggle

  Spain

Ireland
Police vote to take strike action

02/11/2016: Unprecedented industrial action poses crisis for Irish government

  Ireland Republic

South Africa
Victimisation of #OutsourcingMustFall activists

02/11/2016: State tries to crush worker-student unity in struggle for free education

  South Africa

History
Suez 1956

01/11/2016: The decline of British imperialism and rise of the colonial revolution

  History

 Solidarity
International campaign backing Spanish student strike a great success

27/10/2016: CWI sections in 25 countries organise active solidarity and support

  Solidarity

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

Portugal: Witch hunt in Left Bloc?
05/12/2016, Socialismo Revolucionario (CWI in Portugal) reporters :
Solidarity in defence of CWI members and symphthisers

Spain: Militant struggle by Students Union succeeds
02/12/2016, Socialistworld.net :
Mass student strikes force PP government to retreat

Turkey: AKP regime sliding towards personal dictatorship
28/11/2016, Sosyalist Alternatif (CWI Turkey):
United workers’ struggle only antidote against Erdoğan’s rule

Kashmir: Brutal suppression of uprising
26/11/2016, TU Senan, CWI :
Battle zone of proxy conflicts. United working class opposition needed

Spain: Students' Union surges forward in historic congress
22/11/2016, Danny Byrne, CWI :
Hundreds rally to celebrate 30th anniversary of SE and 40th anniversary of Izquierda Revolucionaria / El Militante

Pakistan: ISIS terrorists attack Sufi shrine
21/11/2016, Kristofer Lundberg, Socialist Justice Party (CWI Sweden) :
The struggle of Baluchi people

India: ‘Demonetisation’ shock
19/11/2016, Isai Priya, Tamil Solidarity :
Modi unleashes war on poor

Sri Lanka: Fair is foul - IMF Budget unleashed
18/11/2016, TU Senan, CWI :
IMF led austerity budget has unveiled in Sri Lanka

Socialism 2016: Electrifying and powerful weekend puts socialism on the agenda
16/11/2016, Socialist Party (CWI in England & Wales) reporters :
Struggle, internationalism and socialism, these ideas - and how powerful they can be in action, electrified the magnificent rallies and workshops of the Socialism 2016 weekend.

Video: Socialism 2016, London
16/11/2016, Socialistworld.net:
An electrifying and powerful weekend which put socialism back on the agenda

US: Anti-Trump protests
12/11/2016, Brian Watson, Socialist Alternative, US :
In less than 24 hours, 40,000 people answered our call

Britain: Fight for a united, working class approach to Brexit
12/11/2016, Editorial from the Socialist, paper of the Socialist Party (CWI in England & Wales) :
High Court bombshell

Morocco: Mass protests follow the assassination of a fishmonger
11/11/2016, PSL-LSP (CWI in Belgium) translation from French:
A feeling of “déjà vu”

Spain: Student strike gives first mass response on the streets to new PP government
11/11/2016, socialistworld.net :
Interview with Ana Garcia, General Secretary of the Sindicato de Estudiantes (Spanish Students’ Union)

Kazakhstan
10/11/2016, Andrei Prigor from Campaign Kazakhstan website:
No to land privatisation - Release Max Bokayev and Talgat Ayanov!

Video: Irish Socialist MPs react to Trump election
10/11/2016, socialistworld.net:
Ruth Coppinger and Mick Barry speak in Irish parliament

US: We need mass resistance to Trump and a new party of the 99%
10/11/2016, Philip Locker and Tom Crean, Socialist Alternative :
A Presidency of chaos and struggle

US: Build a grassroots movement to stop Trump's agenda
09/11/2016, Bryan Koulouris, Socialist Alternative :
Polls showed that Donald Trump was the most hated Presidential candidate in the history of this country. Yet the Wall Street, Wal-Mart, warmonger Clinton couldn't defeat him…

US: Deeply damaged, the two parties limp towards the finish line
08/11/2016, Ty Moore, Socialist Alternative, USA :
Whoever wins tomorrow will enter office facing unprecedented levels of popular hostility

Philippines: ‘China pivot’ from Duterte
07/11/2016, Vincent Kolo, chinaworker.info :
Philippines leader seeks to play off superpowers to win economic concessions

Turkey: People's Democratic Party leaders arrested
04/11/2016, Sosyalist Alternatif (CWI Turkey) :
Urgent appeal to demand their immediate release

Ireland: Police vote to take strike action
02/11/2016, Conor Payne, Socialist Party (CWI Ireland):
Unprecedented industrial action poses crisis for Irish government

South Africa: Victimisation of #OutsourcingMustFall activists
02/11/2016, Workers and Socialist Party (WASP - CWI in South Africa) :
State tries to crush worker-student unity in struggle for free education

History: Suez 1956
01/11/2016, Niall Mulholland, CWI :
The decline of British imperialism and rise of the colonial revolution

Côte d’Ivoire: Construction company workers force unprecedented bosses’ concessions
28/10/2016, CWI in Côte d’Ivoire:
Letter from Côte d’Ivoire Agencement workers

Solidarity: International campaign backing Spanish student strike a great success
27/10/2016, socialistworld.net:
CWI sections in 25 countries organise active solidarity and support

CWI Comment and Analysis

ANALYSIS

Sudan: Three day nationwide strike shuts down the country, in unique defiance of Al-Bashir’s rule
30/11/2016, Serge Jordan, CWI:
Escalation of the struggle needed to overthrow repressive regime

US: Trump prepares attacks on working people,immigrants and women
27/11/2016, Tom Crean and Philip Locker, Socialist Alternative (USA):
We must prepare massive resistance!

Cuba: Fidel Castro, leader of 1959 revolution, dies at 90
26/11/2016, Tony Saunois, CWI :
Castro's life and the Cuban Revolution

China: New stage in power struggle
24/11/2016, chinaworker.info reporters:
Xi Jinping becomes “core leader”

Hong Kong: Government purges Legislative Council
17/11/2016, Dikang, Socialist Action (CWI in Hong Kong) :
“Nothing short of a coup”

Ireland: The Jobstown trial and the threat to democratic rights<br />

12/11/2016, Eddie McCabe, Socialist Party (CWI in Ireland) :
Biggest political trial in decades, as Socialist Party & Anti Austerity Alliance MP and councillors face threat of lengthy prison sentences

History: Russia’s 1917 socialist revolution
07/11/2016, Clare Doyle, CWI :
November 7th anniversary of workers’ taking power

Capitalist system “on the edge of the volcano”
03/11/2016, International Secretariat of the CWI:
Draft documents for November CWI international meeting

Spain: PSOE leadership hands power to the PP
03/11/2016, Izquierda Revolucionaria editorial :
A new phase in the class struggle

Hungary: The political revolution of sixty years ago
23/10/2016, Clare Doyle, CWI :
When workers fought arms in hand to end Stalinist dictatorship

Britain: The fight for real democracy in the Labour Party
20/10/2016, Editorial of the Socialist, weekly paper of the Socialist Party (CWI England & Wales):
Defend Corbyn and transform Labour into a party acting for working class

Crisis of social democracy in Britain
19/10/2016, Peter Taaffe, from next issue of Socialism Today (monthly magazine of the Socialist Party England and Wales) :
Which way forward for the Left?

US: The disastrous failure of ‘lesser evilism’
18/10/2016, Patrick Ayers and Ty Moore, Socialist Alternative (originally published at CounterPunch.org) :
Change through mass struggle  - a new party should act as an organizing and for solidarity

Spain: Crisis in social democracy
17/10/2016, Juan Ignacio Ramos, Izquierda Revolucionaria general secretary, from Socialism Today (monthly magazine of the Socialist Party England and Wales) :
PSOE and the class struggle

Britain: Tories whip up division over Brexit
17/10/2016, Editorial from The Socialist (weekly newspaper of the Socialist Party, England & Wales):
Fight for a socialist, internationalist exit

Art: Access, freedom and organisation in the arts
16/10/2016, Rob MacDonald, from the Bad Art magazine/website:
The artist and the workers' movement

South Africa: Local government elections leave ANC in crisis
15/10/2016, Weizmann Hamilton, from the new issue of Izwi Labasebenzi:
Socialist mass workers party needed

India: Uprisings of the oppressed
12/10/2016, New Socialist Alternative (CWI-India):
New period opens

US: Presidential debate shows need for an alternative
12/10/2016, Bryan Koulouris, Socialist Alternative:
After elections, explosive struggles will provide opportunities to win victories for working people

Brazil: Local elections see collapse of PT (Workers Party) support
11/10/2016, Andre Ferrari, LSR (CWI Brazil):
Mass disillusionment with political system but gains for PSOL left

Israel: Shimon Peres and the ‘peace dove’ myth
10/10/2016, Shahar Benhorin and Yasha Marmer, Socialist Struggle Movement (CWI Israel-Palestine) :
A life spent strengthening big capital, militarism and national oppression of Palestinians

Poland: Over 140,000 women demonstrate against total ban on abortion
05/10/2016, Paul Newberry, Alternatywa Socjalistyczna (CWI in Poland) :
Women want a real choice

Joint declaration by El Militante/Izquierda Revolucionaria and the CWI
29/09/2016, socialistworld.net :
Meeting between organisations reveals important common ground

Britain: The ‘Corbynomics’ challenge
27/09/2016, Hannah Sell, from the October issue of Socialism Today (monthly journal of the Socialist Party England & Wales):
What economic policies can end austerity and transform workers’ lives?

Leon Trotsky’s living legacy
21/09/2016, Peter Taaffe, general secretary of the Socialist Party (CWI in England & Wales) :
Review of "The Life and Death of Leon Trotsky", published in the latest issue of Socialism Today