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 International Women’s Day 2015
Scotland

06/03/2015: Exploited at work, fighting back

  Scotland, Women

 International Women’s Day 2015
China

06/03/2015: Capitalism is pushing back women’s rights

  China, Women

Netherlands
Wave of student protests

05/03/2015: For democratic reforms and end to budget cuts

  Netherlands

Austria
The year starts with antifascism

05/03/2015: Right-wing Ball events, PEGIDA, and neo-nazi Violence: A Month of Intense and Successful anti-fascism in Austria

  Austria, Venezuela

 Greece
Vodafone strike declared “illegal”

04/03/2015: “None of this will intimidate us - we will struggle until we win collective bargaining”

  Greece, Solidarity

Russia
50,000 march in Moscow after shooting of Boris Nemtsov

03/03/2015: As economic crisis deepens, social explosions loom

  Russia

Quebec
Towards a hot spring

02/03/2015: Disrupt them like they disrupt us!

  Quebec

Greece
“Yes there was a different choice!”

02/03/2015: Socialist policies needed, not deals with the Troika

  Germany, Greece

Scotland
Why Tommy is wrong to call for a vote for the SNP in May

27/02/2015: Philip Stott Socialist Party Scotland

  Scotland

Greece showdown

26/02/2015: Niall Mulholland interviewed NICOS ANASTASIADES, of Xekinima (CWI Greece), just as Syriza leaders agreed a four-month bail-out extension with the EU.

  Greece

Libya
War-torn country becoming new hub for IS activities

25/02/2015: Libyan people bearing the brunt of NATO’s fiasco

  Libya

Europe
Eurozone time-bomb

25/02/2015: Mired in recession, the eurozone is haunted by the spectre of stagnation

  Europe, World Economy

Greece
Syriza retreats under Troika threats

24/02/2015: Popular mood shows anti-austerity, socialist policies would win huge support

  Greece

Britain
Labour MP shows contempt for workers

24/02/2015: Three decades ago he debated with Militant leaders who warned about degeneration of his party

  Britain

Germany
Pegida at an end?

24/02/2015: German racist mobilizations split but danger continues

  Germany

History
The political legacy of Malcolm X

21/02/2015: 50 years after his assassination

  History

 Malaysia
Stop arrests of government opponents!

20/02/2015: Respect the right to freedom of speech!

  Malaysia, Solidarity

 Solidarity
Five Dublin anti-water charge protesters jailed

20/02/2015: International solidarity protests needed!

  Solidarity

Congo
Forty two killed during street protests in January

20/02/2015: Senate quashes Kabila’s plan to extend presidency

  Congo

Greece
What does Tsipras’s endorsement of Prokopis Pavlopoulos for President signify?

19/02/2015: Economic and social crisis requires independent pro-worker, socialist policies!

  Greece

Britain
2015 Socialist Party Congress:

19/02/2015: Preparing the forces to fight capitalist austerity

  Britain

Ireland
Socialist questions Taoiseach on political policing

18/02/2015: International solidarity protests continue

  Ireland Republic

Denmark
Terrorist attack in Copenhagen

18/02/2015: United struggle needed against right-wing policies

  Denmark

Spain
Is ‘Podemos’ the Spanish Syriza?

16/02/2015: Dangers of “moderation” and domestication

  Spain

 Ireland
“Dogs of war” unleashed in Jobstown

16/02/2015: The Gardai have simultaneously targeted the community of Jobstown, the anti-water charges movement and the Anti-Austerity Alliance

  Ireland Republic, Video

Malaysia
Opposition leader imprisoned

16/02/2015: Government conspires to quell growing opposition

  Malaysia

Hong Kong
Erwiana’s court victory – now to step up the struggle for migrant rights!

14/02/2015: Hong Kong court finds employer guilty of torture-like crimes

  Hong Kong

Ireland
Interview with Paul Murphy TD following arrest

13/02/2015: Socialist Party (CWI) and AAA TD Paul Murphy speaks following five days of political arrests of anti-water

  Ireland Republic

Greece
If the Troika does not back down?

13/02/2015: Let the Greek people decide!

  Greece

India
Massive defeat for ruling BJP in Delhi election

12/02/2015: Result reflects growing mass discontent

  India

 Video
Brazilian housing movement presents Kshama Sawant with flag

12/02/2015: MTST one of Brazil’s most important social movements

  Brazil, Video

 Video
Ruth Coppinger challenges government over political policing

12/02/2015: Heated exchange in Irish parliament between deputy Prime Minister and Socialist Party (CWI) MP

  Ireland Republic, Video

Brazil
CWI Latin American summer school 2015

12/02/2015: 8th Latin American school largest ever held by the CWI on the continent

  Brazil, Latin America

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

International Women’s Day 2015: Scotland
06/03/2015, Sinead Daly, from The Socialist, newspaper of the Socialist Party Scotland (CWI):
Exploited at work, fighting back

International Women’s Day 2015: China
06/03/2015, chinaworker.info:
Capitalism is pushing back women’s rights

Netherlands: Wave of student protests
05/03/2015, Bas de Ruiter, Socialist Alternative (CWI in Netherlands):
For democratic reforms and end to budget cuts

Austria: The year starts with antifascism
05/03/2015, Stefan Gredler, SLP (CWI in Austria):
Right-wing Ball events, PEGIDA, and neo-nazi Violence: A Month of Intense and Successful anti-fascism in Austria

Greece: Vodafone strike declared “illegal”
04/03/2015, Jacqueline Gorou, President, Panhellenic Trade Union Vodafone-Panafone:
“None of this will intimidate us - we will struggle until we win collective bargaining”

Russia: 50,000 march in Moscow after shooting of Boris Nemtsov
03/03/2015, Rob Jones, CWI, Moscow:
As economic crisis deepens, social explosions loom

Greece: “Yes there was a different choice!”
02/03/2015, Interview with Nikos Kanellis, Volos City Councilor (Xekinima/ CWI Greece) by Sascha Stanicic (SAV’/CWI Germany):
Socialist policies needed, not deals with the Troika

Scotland: Why Tommy is wrong to call for a vote for the SNP in May
27/02/2015, Clear anti-austerity alternative necessary:
Philip Stott Socialist Party Scotland

Britain: Labour MP shows contempt for workers
24/02/2015, :
Three decades ago he debated with Militant leaders who warned about degeneration of his party

Germany: Pegida at an end?
24/02/2015, Michael Koschitzki, SAV (CWI Germany):
German racist mobilizations split but danger continues

Malaysia: Stop arrests of government opponents!
20/02/2015, Statement on arrests from Socialist Alternative (CWI Malaysia):
Respect the right to freedom of speech!

Solidarity: Five Dublin anti-water charge protesters jailed
20/02/2015, Socialistworld.net:
International solidarity protests needed!

Congo: Forty two killed during street protests in January
20/02/2015, Per-Åke Westerlund, Rättvisepartiet Socialisterna (CWI Sweden):
Senate quashes Kabila’s plan to extend presidency

Greece: What does Tsipras’s endorsement of Prokopis Pavlopoulos for President signify?
19/02/2015, Statement by Xekinima (CWI Greece) Editorial Board [edited translation]:
Economic and social crisis requires independent pro-worker, socialist policies!

Britain: 2015 Socialist Party Congress:
19/02/2015, Socialist Party (CWI in England & Wales) reporters:
Preparing the forces to fight capitalist austerity

Ireland: Socialist questions Taoiseach on political policing
18/02/2015, socialistworld.net:
International solidarity protests continue

Denmark: Terrorist attack in Copenhagen
18/02/2015, Arne Johansson, Rättvisepartiet Socialisterna (CWI Sweden):
United struggle needed against right-wing policies

Ireland: “Dogs of war” unleashed in Jobstown
16/02/2015, Cillian Gillespie and Councillor Mick Barry, Socialist Party (CWI in Ireland):
The Gardai have simultaneously targeted the community of Jobstown, the anti-water charges movement and the Anti-Austerity Alliance

Malaysia: Opposition leader imprisoned
16/02/2015, Socialist Alternative (CWI in Malaysia):
Government conspires to quell growing opposition

Hong Kong: Erwiana’s court victory – now to step up the struggle for migrant rights!
14/02/2015, Vincent Kolo, Socialist Action (CWI) in Hong Kong:
Hong Kong court finds employer guilty of torture-like crimes

Ireland: Interview with Paul Murphy TD following arrest
13/02/2015, socialistworld.net:
Socialist Party (CWI) and AAA TD Paul Murphy speaks following five days of political arrests of anti-water

Greece: If the Troika does not back down?
13/02/2015, Andros Payiatsos, Xekinima (CWI Greece):
Let the Greek people decide!

India: Massive defeat for ruling BJP in Delhi election
12/02/2015, Youvraj B, Pune, New Socialist Alternative (CWI India):
Result reflects growing mass discontent

Video: Brazilian housing movement presents Kshama Sawant with flag
12/02/2015, socialistworld.net:
MTST one of Brazil’s most important social movements

Video: Ruth Coppinger challenges government over political policing
12/02/2015, socialistworld.net:
Heated exchange in Irish parliament between deputy Prime Minister and Socialist Party (CWI) MP

Brazil: CWI Latin American summer school 2015
12/02/2015, Socialistworld.net:
8th Latin American school largest ever held by the CWI on the continent

CWI Comment and Analysis

ANALYSIS

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?

Greece: Why did Syriza and the KKE fail to reach agreement?
29/01/2015, Article from Xekhinima (CWI Greece) website [dated 26 January 2015] translated and slightly edited:
For socialist policies to end austerity nightmare!

Greece: Syriza comes to power, as old ruling parties collapse
27/01/2015, Niall Mulholland, socialistworld.net, interviews Andros Payiatsos, from Xekinima (CWI Greece):
Left parties fail to form government - Syriza goes into coalition with populist right Independent Greeks

Cuba: Diplomatic relations with US restored, embargo eased
24/01/2015, Tony Saunois, CWI:
Threat of capitalist restoration accelerates

Russia/Ukraine: Facing a turbulent 2015
21/01/2015, Rob Jones, CWI, Moscow:
As death toll rises, economies plunge into freefall

Greece: Prospect of Syriza victory raises workers’ hopes
20/01/2015, Interview with Andros Payiatsos, from Xekinima (CWI in Greece):
Mass intervention of working class to struggle for socialist policies is vital

Nigeria: The Massacre in Baga
19/01/2015, H.T Soweto, DSM (CWI in Nigeria):
Socialism or Barbarism

Germany: What is behind the ‘PEGIDA’ anti-immigrant demonstrations?
13/01/2015, Wolfram Klein, Socialist Alternative (SAV- CWI Germany):
Unions and Left must organise against racism and for jobs and decent living standards for all

Greece: Towards a Syriza government?
08/01/2015, Interview with Andros Payiatsos, Xekinima (CWI in Greece):
General elections on 25 January

Northern Ireland: The Stormont House Agreement
05/01/2015, Michael Cleary, Socialist Party (CWI in Ireland):
Agreeing Not To Agree, Again

New Year: Political and economic ingredients for volatile 2015
31/12/2014, Peter Taaffe, General Secretary Socialist Party (CWI England & Wales):
As crisis of capitalism worsens, vital to organise and continue the struggle

Latin America: The end of one cycle and the beginning of another
17/12/2014, socialistworld.net:
Document on Latin America, agreed by CWI International Executive Committee

World Perspectives: A turbulent period in history
15/12/2014, CWI International Executive Committee:
Signs of revival of class struggle signposts the future

Sri Lanka: Presidential Election January 8, 2015
11/12/2014, Interview with Siritunga Jayasuriya, USP (CWI Sri Lanka):
Socialist candidate challenges all other forces

Australia: Major community victory stops Melbourne’s East-West Toll Road
08/12/2014, By Socialist Party (CWI Australia) reporters, Melbourne:
Socialist Party leads successful campaign against Toll Road and for investment in public transport