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latest news

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

Brazil
Will elections mark the end of the PT government?

15/09/2014: Space for Left alternative to win support

  Brazil

Asia-Pacific
Majority of Chinese expect war with Japan

13/09/2014: Warmongering governments ratchet-up national tensions in struggle for regional dominance

  Asia, Japan

Scotland
Defeat Project Terror with socialist policies

12/09/2014: Big business, politicians and media attack independence

  Scotland

US
building a movement to end poverty pay!

12/09/2014: Spreading and organising the movement for decent wages

  US

South Africa
Community protest over corruption widens

11/09/2014: Authorities deploy heavily armed response

  Africa, South Africa

Chile
The other ‘9/11’

11/09/2014: 1973 bloody coup against Popular Unity government

  Chile

Ukraine
Fragile ceasefire holds but country remains “a tinder box”

10/09/2014: Only united working class action can secure lasting peace

  Ukraine

Bosnia
Privatise to colonise

08/09/2014: How looting of the economy led to mass social protests

  Bosnia

West Africa
Ebola outbreak - a crisis of capitalism

08/09/2014: Profit drive obstructs treatment and prevention

  Africa

Scotland
10 days that can shake British capitalism to its foundations

08/09/2014: “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.”

  Scotland

Britain
Crisis brewing on all fronts

05/09/2014: 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.

  Britain

Hong Kong
Occupy Central leader’s comments cast doubt over occupation plan

04/09/2014: After NPC ruling democracy activists are perplexed by Benny Tai Yiu-ting’s comments that the strategic part of struggle “should end”

  Hong Kong

 Iran
Support Behnam Ebrahimzadeh

04/09/2014: Support jailed labour activist’s demands against critical dentention conditions

  Iran, Solidarity

Scotland
Big swing to Yes leaves referendum vote on a knife edge

04/09/2014: Over 18,000 people have attended Hope Over Fear public meetings to hear socialist Tommy Sheridan.

  Scotland

Ukraine
Rebel forces gain territory

03/09/2014: International tensions escalate

  Ukraine

Beijing slams door shut on Hong Kong democracy

02/09/2014: Mass resistance against one-party dictatorship is the only way forward!

  Hong Kong

 Video
Revolution and counter-revolution in the world today

01/09/2014: Hannah Sell, deputy general secretary of the Socialist Party (CWI in England and Wales) speaking at recent summer camp

  Video

France
Economic stagnation and political instability

29/08/2014: Hollande removes ‘lefts’ from government

  France

Turkey
Erdoğan sworn in as country’s President

29/08/2014: Significant poll gains for the left coalition HDP

  Turkey

 Solidarity
Iranian mine workers on strike

26/08/2014: Demand the release of the arrested workers!

  Iran, Solidarity

Nigeria
Fees victory at Lagos State University!

26/08/2014: Vigilance required from LASU students and workers to ensure that victory is permanent

  Nigeria

ISIS
Capitalist slaughter in Iraq and Syria

25/08/2014: As ISIS (the Islamic State in Iraq and a-Shams) crossed the border between Syria and Iraq, it proclaimed this to be the “annihilation of the disgrace of Sykes-Picot” and the formation of an ‘Islamic state’ (IS).

  Iraq, Syria

US
Indict Michael Brown’s killer and spread the protests! The whole system is guilty!

22/08/2014: Text of a leaflet handed out by Socialist Alternative members in Ferguson and St. Louis

  US

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

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NEWS

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

West Africa: Ebola outbreak - a crisis of capitalism
08/09/2014, Peluola Adewale, Democratic Socialist Movement (CWI Nigeria):
Profit drive obstructs treatment and prevention

Hong Kong: Occupy Central leader’s comments cast doubt over occupation plan
04/09/2014, Reporters of Socialist Action (CWI Hong Kong):
After NPC ruling democracy activists are perplexed by Benny Tai Yiu-ting’s comments that the strategic part of struggle “should end”

Iran: Support Behnam Ebrahimzadeh
04/09/2014, Campaign in Support of Workers of Iran:
Support jailed labour activist’s demands against critical dentention conditions

Scotland: Big swing to Yes leaves referendum vote on a knife edge
04/09/2014, Matt Dobson, Socialist Party Scotland (CWI in Scotland):
Over 18,000 people have attended Hope Over Fear public meetings to hear socialist Tommy Sheridan.

Ukraine: Rebel forces gain territory
03/09/2014, Niall Mulholland, CWI:
International tensions escalate

Video: Revolution and counter-revolution in the world today
01/09/2014, Socialistworld.net:
Hannah Sell, deputy general secretary of the Socialist Party (CWI in England and Wales) speaking at recent summer camp

France: Economic stagnation and political instability
29/08/2014, Leila Massaoudi, Gauche Revolutionnaire (CWI in France):
Hollande removes ‘lefts’ from government

Turkey: Erdoğan sworn in as country’s President
29/08/2014, Coşku Mıhcı:
Significant poll gains for the left coalition HDP

Ireland: Greyhound lockout enters ninth week
28/08/2014, Paul Murphy, Socialist Party (CWI Ireland), Dublin:
A fight for all workers!

Solidarity: Iranian mine workers on strike
26/08/2014, Campaign in support of workers of Iran:
Demand the release of the arrested workers!

Nigeria: Fees victory at Lagos State University!
26/08/2014, Education Rights Campaign, Nigeria statement:
Vigilance required from LASU students and workers to ensure that victory is permanent

ISIS: Capitalist slaughter in Iraq and Syria
25/08/2014, Georg Maier, SLP (CWI in Austria):
As ISIS (the Islamic State in Iraq and a-Shams) crossed the border between Syria and Iraq, it proclaimed this to be the “annihilation of the disgrace of Sykes-Picot” and the formation of an ‘Islamic state’ (IS).

CWI Comment and Analysis

ANALYSIS

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

CWI School: World capitalism fails working people
07/08/2014, Kevin Parslow, Socialist Party (CWI England & Wales):
System offers economic crisis, insecurity, poverty and wars

Israel/Palestine: After weeks of mass slaughter in Gaza, IDF forces ‘withdraw’
06/08/2014, Niall Mulholland, from articles in this week’s Socialist (paper of the Socialist Party, England & Wales):
What is the role of imperialism in the conflict?

CWI Summer School: European capitalism fails to recover
02/08/2014, Sarah Sachs-Eldridge, Socialist Party (CWI England & Wales):
Working class must organise for future struggles

Gaza in crisis
29/07/2014, Shahar Benhorin, Socialist Struggle Movement (CWI in Israel-Palestine):
Mass action needed to stop bloodshed

Trotsky: The first year of war
23/07/2014, Originally published in in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Article by LEON TROTSKY translated into English for first time

WW1: The Bolsheviks and the war
21/07/2014, Peter Taaffe, article originally published in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
The horrors of the first world war, and the economic and social turmoil it created, led to mass upheaval. In Russia alone did this lead to a successful revolution…

1914: The capitulation of the Second International
19/07/2014, Robert Bechert (a longer version of an article published in the July/August 2014 issue of Socialism Today):
Before 1914, the Second International resolved to act to prevent war…

World War One: 100 years since the great slaughter
16/07/2014, Tony Saunois, article originally published in special WWI edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Ten million killed and more than ten million seriously injured

Israel-Palestine:World outraged by Israeli State’s ferocious bombing of Gaza
15/07/2014, Judy Beishon, from The Socialist (weekly newspaper of the Socialist Party – CWI England & Wales):
Mass action needed to end the slaughter and blockade!

Can capitalism put all of us first?
05/07/2014, By Philip Stott:
A response to the “practical idealism” of the Common Weal

Argentina: Return to turmoil
01/07/2014, Danny Byrne, CWI:
Debt crisis is back – the class struggle and tasks for the Left

Review: ’Capital in the Twenty-First Century’
28/06/2014, Hannah Sell, Socialist Party (CWI England and Wales):
Thomas Piketty: The new Marx?

Iraq: Isis jihadists capture more territory
24/06/2014, Niall Mulholland, CWI:
Only organised, united working class can end war and social misery

Nigeria: 200 school girls abducted
18/06/2014, By Segun Sango, National Chairperson, Socialist Party of Nigeria (SPN), a party initiated by the DSM (CWI in Nigeria):
Why has Boko Haram insurgency grown?