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Turkey
Horrific Suruc massacre

28/07/2015: Only workers’ unity can end terrorism and division

  Turkey

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Europe’s euro-crisis and prospects for class struggle

27/07/2015: Ground prepared everywhere for new battles and rise of left formations

  CWI, Europe

Britain
Labour Left leadership candidate under fire from right wing

27/07/2015: Blairites’ terror at popularity of left-wing ideas in Corbyn campaign

  Britain

 Turkey
CWI brings solidarity with Suruç victims

22/07/2015: Message of support from the CWI and its sections

  Solidarity, Turkey

Turkey
Massacre in Suruç

20/07/2015: Kurdish and Turkish people pay price for Erdoğan’s support for ISIS

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Solidarity with workers and unions at FOGADE

20/07/2015: No to union discrimination and repression!

  Solidarity, Venezuela

Ireland
57% boycott water charges

18/07/2015: Mass non-payment campaign gets results

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 Video
Reject sectarianism in Northern Ireland

17/07/2015: Paul Murphy addresses Irish parliament

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Germany
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Migration
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14/07/2015: A socialist view on immigration crisis

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Greece
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10/07/2015: Time for a new, mass revolutionary Left to oppose all austerity!

  Greece

Britain
Union activists say, We could stop austerity in its tracks

09/07/2015: National Shop Stewards Network (NSSN) conference

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China
Stock market crash can turn into a political crisis

08/07/2015: Regime adopts panic measures as market crash threatens wider economic recession

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Greece
Mighty class-based ‘NO’ shakes bosses’ EU

06/07/2015: Referendum earthquake sees working class boldly defy Troika and Greece’s servile ruling class!

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Scotland
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06/07/2015: After 13 weeks of all-out strike action the 117 Dundee hospital porters have won an inspiring victory

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05/07/2015: Sacked Greek Vodafone trade unionist speaks in London on eve of historic referendum

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Austria
Social? Democratic? Party!

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Britain
Socialists and the EU referendum

03/07/2015: How should socialists approach the in-or-out EU debate?

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 Video
Real nature of EU is being laid bare

02/07/2015: Ruth Coppinger, Socialist TD (Irish MP), supports Greek ‘NO’ vote, and calls for debt refutation and nationalisations

  Greece, Ireland Republic, Video

 Video
Socialist MP condemns Troika/Irish government’s bullying of Greek voters

01/07/2015: Paul Murphy TD (Irish MP) attacks Irish prime minister’s collusion with Brussels big business agenda and voices solidarity with Greek workers

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Is China’s stock market bubble bursting?

01/07/2015: Billions wiped off share values in June – only the Greek stock market is more volatile

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Greece
Troika threatens Greeks ahead of referendum

30/06/2015: Vote ‘No’! For a mass working class campaign to oppose Troika and for socialist policies!

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South Africa
The Marikana Report – a whitewash

30/06/2015: Not a stone has been left unturned on the political landscape

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Tunisia
Terrorist atrocity in Sousse

29/06/2015: For a renewed mass movement against poverty and terror

  Tunisia

Greece
“NO”

27/06/2015: On Sunday 5 July, we say “no” to the gang of the lenders!

  Greece

Britain’s class battle-lines are drawn

26/06/2015: A quarter-of-a-million people protested through London and Glasgow raising the need for trade union-led struggle

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Germany
Indefinite strike for more staff at Charité hospital

26/06/2015: Berlin industrial dispute of national importance

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Greece
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Counter-revolution continues

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Greece
Tsipras retreats before Troika threats

24/06/2015: What should the SYRIZA Left do next?

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Scotland
1,000s rally against austerity

24/06/2015: Ferry workers’ strike over jobs, pay, pensions and privatisation

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Socialist MP condemns Troika’s blackmail of Greece

24/06/2015: "Minister Noonan lined up with Schauble, he said tighten the noose, he stabbed the Greek people in the chest and the Irish people in the back"

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Greece
“Despite spin, Syriza proposals terrible for pensioners and workers”

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Britain
100,000s protest against austerity

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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

Turkey: Horrific Suruc massacre
28/07/2015, Paula Mitchell, Socialist Party (CWI in England & Wales):
Only workers’ unity can end terrorism and division

Britain: Labour Left leadership candidate under fire from right wing
27/07/2015, Socialist Party (CWI in England & Wales - formerly the Militant Tendency) press statement on Labour leadership contest:
Blairites’ terror at popularity of left-wing ideas in Corbyn campaign

Turkey: CWI brings solidarity with Suruç victims
22/07/2015, :
Message of support from the CWI and its sections

Turkey: Massacre in Suruç
20/07/2015, Sosyalist Alternatif (CWI in Turkey):
Kurdish and Turkish people pay price for Erdoğan’s support for ISIS

Venezuela: Solidarity with workers and unions at FOGADE
20/07/2015, socialistworld.net:
No to union discrimination and repression!

Ireland: 57% boycott water charges
18/07/2015, Michael O’Brien, Anti-Austerity Alliance (AAA) Councillor and Socialist Party member:
Mass non-payment campaign gets results

Video: Reject sectarianism in Northern Ireland
17/07/2015, socialistworld.net:
Paul Murphy addresses Irish parliament

Germany: Capitalists strangling Greece
15/07/2015, Georg Kümmel, Cologne, Sozialistische Alternative (CWI in Germany):
No to the dictatorship of banks and big business – For a socialist Europe!

Migration: Fleeing horrors created by capitalism
14/07/2015, Editorial from the Socialist, paper of the Socialist Party (CWI in England & Wales):
A socialist view on immigration crisis

Greece: Tsipras crosses the Rubicon
10/07/2015, Editorial Statement by Xekinima(CWI Greece):
Time for a new, mass revolutionary Left to oppose all austerity!

Britain: Union activists say, We could stop austerity in its tracks
09/07/2015, From The Socialist (weekly paper of the Socialist Party, CWI England & Wales):
National Shop Stewards Network (NSSN) conference

Scotland: Dundee porters’ victory proves strike action can deliver
06/07/2015, By Philip Stott:
After 13 weeks of all-out strike action the 117 Dundee hospital porters have won an inspiring victory

Video: Harris Sideris on Greek referendum and Vodafone battle
05/07/2015, socialistworld.net:
Sacked Greek Vodafone trade unionist speaks in London on eve of historic referendum

Austria: Social? Democratic? Party!
04/07/2015, Sonja Grusch, Socialist Left Party (CWI in Austria):
The Fragmentation of the Social Democracy in Austria

Video: Real nature of EU is being laid bare
02/07/2015, Socialistworld.net:
Ruth Coppinger, Socialist TD (Irish MP), supports Greek ‘NO’ vote, and calls for debt refutation and nationalisations

Video: Socialist MP condemns Troika/Irish government’s bullying of Greek voters
01/07/2015, :
Paul Murphy TD (Irish MP) attacks Irish prime minister’s collusion with Brussels big business agenda and voices solidarity with Greek workers

Is China’s stock market bubble bursting?
01/07/2015, Dikang, chinaworker.info:
Billions wiped off share values in June – only the Greek stock market is more volatile

South Africa: The Marikana Report – a whitewash
30/06/2015, Weizmann Hamilton, Workers’ and Socialist Party (WASP):
Not a stone has been left unturned on the political landscape

Tunisia: Terrorist atrocity in Sousse
29/06/2015, Statement by Al-Badil al-Ishtiraki (Socialist Alternative, CWI in Tunisia):
For a renewed mass movement against poverty and terror

Greece: “NO”
27/06/2015, Statement by Xekinima (CWI in Greece):
On Sunday 5 July, we say “no” to the gang of the lenders!

Germany: Indefinite strike for more staff at Charité hospital
26/06/2015, Aron Amm, Sozialistische Alternative (CWI in Germany):
Berlin industrial dispute of national importance

Greece: Where are mass solidarity protests with Syriza?
26/06/2015, Eleni Mitsou, from Xekinima (CWI Greece) website:
Troika must be defied – No more cuts! Don’t pay the debt! Socialist policies would win huge backing from Greek workers

Egypt: Counter-revolution continues
25/06/2015, David Johnson, Socialist Party (CWI England & Wales):
Recent strikes show workers will resist

Video: Paul Murphy appeals to Greek Left - Reject the blackmail
24/06/2015, socialistworld.net:
CWI MP speaks in Irish parliament

Scotland: 1,000s rally against austerity
24/06/2015, Matt Dobson and Philip Stott, Socialist Party Scotland (CWI):
Ferry workers’ strike over jobs, pay, pensions and privatisation

Video: Socialist MP condemns Troika’s blackmail of Greece
24/06/2015, socialistworld.net:
"Minister Noonan lined up with Schauble, he said tighten the noose, he stabbed the Greek people in the chest and the Irish people in the back"

CWI Comment and Analysis

ANALYSIS

CWI School: Europe’s euro-crisis and prospects for class struggle
27/07/2015, Kevin Parslow, Socialist Party (CWI England & Wales):
Ground prepared everywhere for new battles and rise of left formations

China: Stock market crash can turn into a political crisis
08/07/2015, Interview, with chinaworker.info editor, Vincent Kolo:
Regime adopts panic measures as market crash threatens wider economic recession

Greece: Mighty class-based ‘NO’ shakes bosses’ EU
06/07/2015, Editorial comment by Xekinima (CWI Greece), 6 July 2015:
Referendum earthquake sees working class boldly defy Troika and Greece’s servile ruling class!

Britain: Socialists and the EU referendum
03/07/2015, Clive Heemskerk, Socialist Party (CWI in England & Wales):
How should socialists approach the in-or-out EU debate?

Greece: Troika threatens Greeks ahead of referendum
30/06/2015, Andreas Payiatsos and Niall Mulholland:
Vote ‘No’! For a mass working class campaign to oppose Troika and for socialist policies!

Britain’s class battle-lines are drawn
26/06/2015, Hannah Sell, Socialist Party (CWI in England & Wales) Deputy General Secretary - article from ’Socialism Today’:
A quarter-of-a-million people protested through London and Glasgow raising the need for trade union-led struggle

Greece: Tsipras retreats before Troika threats
24/06/2015, Statement by Xekinima (CWI Greece) [dated 23 June 2015]:
What should the SYRIZA Left do next?

Greece: No surrender to‘Gang of Lenders’
22/06/2015, Editorial article from Xekinima (CWI Greece) [dated 17 June 2015]:
Plan an anti-austerity fight-back, with socialist policies!

Iraq/Syria: US imperialist strategy in tatters
12/06/2015, Serge Jordan (CWI):
A year after ISIS captured Mosul, the jihadist group controls about half of Syria and a third of Iraq – more territory than ever before

Greece: Syriza voters want austerity ended, not another ’compromise’ Troika deal
04/06/2015, Editorial article from Xekinima (CWI Greece) website [dated 3 June 2015]:
Break with the austerity - adopt a socialist programme!

China: Is China heading for a new Tiananmen?
04/06/2015, Vincent Kolo, chinaworker.info:
26th anniversary of the Beijing massacre on June 4, 1989, is also a warning of revolutionary shocks ahead

Hong Kong: Endgame for Beijing’s fake democracy plan
03/06/2015, Vincent Kolo, chinaworker.info:
Government’s electoral reform proposals meet with mass opposition

Spain: Victories for Left “popular unity” lists in local elections
02/06/2015, Danny Byrne, CWI:
Two-party system dealt a new blow in local and regional elections

Belgium: Momentum to bring down right wing government lost
01/06/2015, Els Deschoemacker and Eric Byl, LSP/PSL (Belgian section of the CWI), Brussels:
Learn from the struggle, as new opportunities open up

Ireland: Massive ‘Yes’ to Marriage Equality referendum
28/05/2015, Conor Payne, Socialist Party (CWI in Ireland):
Growing opposition to conservative establishment

Britain: The struggles to come
27/05/2015, Peter Taaffe, Socialist Party (CWI England and Wales) General Secretary:
No fundamental change to be expected from the Labour Party

Canada’s ‘carbo-state’
26/05/2015, Bill Hopwood, Socialist Alternative (CWI Canada):
Only a socialist alternative can challenge the carbo-capitalists’ grip on Canadian politics

Iraq/Syria: ISIS rout national armies at Ramadi and Palmyra
23/05/2015, Niall Mulholland, CWI:
United working class movement needed to sweep away sectarian militias and reactionary politicians

Ireland North: Election marks growing rejection of sectarian status quo
21/05/2015, Daniel Waldron and Kevin Henry, Socialist Party (CWI Ireland), Belfast:
Opportunities to build new anti-sectarian political voice for working class and youth

Spain: Is Podemos in crisis?
20/05/2015, Danny Byrne, CWI:
Left and social movements in a state of flux, as key elections loom

USA: Presidential candidate declares "political revolution" against billionaires
12/05/2015, Philip Locker, Socialist Alternative, Seattle:
Campaign needs to build independent political power

Britain: Fight against "five more damned years" of Tory rule
12/05/2015, Peter Taaffe, Socialist Party )CWI England & Wales) General Secretary:
Labour leader’s ’responsible capitalism’ shows its bankruptcy

China: “In a hard landing now”
11/05/2015, Dikang, chinaworker.info:
Stock market frenzy and fabricated GDP figures cannot hide the reality of an economy in deep trouble

Ireland North: Socialist Party replies to leading Sinn Fein councillor’s attacks
06/05/2015, Socialist Party (CWI Ireland) Statement:
How to fight cuts, sectarianism and to build workers’ unity

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?