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

latest news

Congo
Day of Protest 26 May

28/05/2016: New massacres in mineral-rich region

  Congo

 Kazakhstan
Embassy protests in solidarity with struggle against land privatisation and for democratic rights

27/05/2016: Soldarity actions take place internationally against Nazarbayev regime

  Kazakhstan, Solidarity

Brazil
Mass protests against new government begin

27/05/2016: LSR (CWI) forces participation highlighted

  Brazil

 Solidarity
Brutal bosses attack striking Lisbon Dockers

25/05/2016: Protest and solidarity messages needed

  Solidarity

Austria
Only 31,026 votes prevent far right’s Hofer becoming president

24/05/2016: ‘Breathing space’ offers chance to build a fighting, democratic left alternative

  Austria

Britain
EU referendum exposes gaping political fault-lines

24/05/2016: New road can open up for labour movement if working class relies on its own forces

  Britain

Kazakhstan
Massive police operation confronts demonstrators

23/05/2016: Nazarbayev regime faces mounting opposition

  Kazakhstan

Australia
Federal election looming

21/05/2016: How should the labour and social movements respond?

  Australia

Kazakhstan
 Anger against Nazarbayev expressed on the streets

20/05/2016: ‘Illegal’ protests planned for Saturday 21 May

  Kazakhstan

Brazil
Fall of President Dilma Rousseff unleashes offensive against working class

19/05/2016: The impeachment process and historic crisis of the PT (Workers’ Party)

  Brazil

Britain
Brexit, the EU and the economy

19/05/2016: Remain or Leave, workers must fight for socialist change

  Britain

Nigeria
General strike begins

18/05/2016: Determined leadership and clear strategy needed to succeed

  Nigeria

Ireland
‘Jobstown trials’ to go ahead

18/05/2016: Government loses battle on water charges but wages war on Left

  Ireland Republic

Greece
Striking Athens bus cleaners continue their struggle

17/05/2016: Court declares strike ‘lawful’

  Greece

Canada
Fire devastates Fort McMurray

16/05/2016: Capitalism equals environmental destruction

  Canada

Saudi Arabia
Gathering storms over the House of Saud

13/05/2016: Collapse of oil prices expose fragile foundations of oil Gulf monarchies

  Middle East, Qatar, Saudi Arabia

France
New stage in battle over labour law

12/05/2016: Hollande’s decision to over-rule parliament provokes another round of struggle

  France

Kazakhstan
Protests erupt

12/05/2016: Phoney elections have not brought stability

  Kazakhstan

Sweden
Successful Congress for CWI forces

12/05/2016: Political foundations laid for new branches and growth in other Nordic countries

  Sweden

Ireland
100th anniversary of the execution of James Connolly

12/05/2016: Revolutionary socialist, militant workers' leader and internationalist

  Ireland Republic

Northern Ireland
Main parties win Assembly elections…

11/05/2016: But positive moves against sectarian politics

  Ireland North

Belgium
Trade unions announce new plan of action

11/05/2016: Call for two national demonstrations, building towards general strikes

  Belgium

Quebec
The fight for $15 shows true colors of Parti Québecois

10/05/2016: No to an all-class pro-independence alliance

  Quebec

Britain
Elections show anger and fragmentation

10/05/2016: Mobilise the anti-austerity mood into a mass, democratic movement to defeat the right

  Britain

Scotland
SNP win elections

09/05/2016: New openings for a socialist left alternative emerge

  Scotland

Ireland
How long can Kenny’s government last?

07/05/2016: Minority government supported by two main parties and “Independents” formed

  Ireland Republic

 Video
Paul Murphy sets record straight on "legal aid"

06/05/2016: Socialist MP threatened with jail for protesting against water charges responds to attacks in Irish parliament

  Video

South Africa
Zuma must go!

06/05/2016: Build a socialist mass workers’ party for a government of the working class

  South Africa

 Solidarity
Portuguese dock workers’ indefinite strike

05/05/2016: What we cannot do: leave the dockers alone

  Solidarity

Britain
90th anniversary of epochal general strike

05/05/2016: When workers tasted power

  Britain

Hong Kong
Racist smear campaign against refugees

05/05/2016: Socialist Action (CWI) initiates successful anti-racist march

  Aceh

May Day 2016
Rallies and marches mark international workers' day

04/05/2016: Photo gallery of CWI's global May Day participation

  May Day

Ireland
Water charges suspended

03/05/2016: Protest movement and boycott force huge Establishment parties climb down

  Ireland Republic

Britain
'Slow coup' against left Labour leader

02/05/2016: Anti-Semitism charges a cynical campaign by right-wing to ditch Jeremy Corbyn

  Britain

Euro crisis

Greece heads for the exit

www.socialistworld.net, 26/05/2012
website of the committee for a workers' international, CWI

Eurozone convulsed by turbulent economic forces and political upheavals

Lynn Walsh, editor of Socialism Today, magazine of the Socialist Party (CWI England & Wales)

Ten governments have been overturned since 2008, with the rejection of austerity policies. There have been a continuous series of public-sector strikes, general strikes, protests and riots. Now, many eurozone leaders fear that the possible victory on 17 June of an anti-austerity, Syriza-led government in Greece could trigger the departure of Greece from the eurozone, with incalculable repercussions.

Even before the election, the run on the Greek banks, as depositors began to withdraw their cash or transfer it to other more stable eurozone countries, could trigger a separation. Currently, the Greek banking system is being propped up by €96 billion ‘emergency liquidity assistance’ from the Greek central bank, supported by the European Central Bank. But more than €75 billion has been taken out of Greek banks since December 2009. Moreover, eurozone leaders fear the danger of ‘contagion’, that there will be a similar flight of capital from Spanish, Italian, Portuguese banks, etc.

The taboo has been broken. Although eurozone leaders, including Germany’s Angela Merkel, proclaim that they regard Greece as a permanent member of the eurozone, there are active preparations for Greece’s departure. This was recently admitted by the European trade commissioner, Karel De Gucht: “Today there are, both within the European Central Bank and the European Commission, services that are working on emergency scenarios in case Greece doesn’t make it”. (International Herald Tribune, 19 May)

According to some reports, new drachma notes are already being printed. The multinational corporations are clearing their deposits out of Greek banks, and quite likely out of Spanish and other shaky banking systems. The euro stands on the edge of a death spiral, which could have devastating effects on the world capitalist economy. None of the capitalist leaders wants a chaotic disintegration of the eurozone, but none of them has any policies capable of resolving the crisis.

According to opinion polls, Syriza could emerge from the 17 June elections as the biggest party. Its leader, Alexis Tsipras, has rightly described Greece as a “social hell”, where the workers and large sections of the middle class have been subject to barbarous austerity measures. Tsipras has correctly rejected the austerity package of the Troika – European Central Bank, European Commission and International Monetary Fund – and repudiated the payment of unbearable debts, hugely inflated by Troika loans used to bail out the banks.

Repudiation of the Troika’s ‘rescue’ package, however, would lead to the expulsion of Greece from the eurozone. Under pressure from US president, Barack Obama, and the recently elected François Hollande in France, Merkel has softened her tone, conceding that Germany would consider some measures to boost growth. These have not been specified. But, at the same time, she has made it crystal clear that acceptance of the austerity package is the precondition of any further assistance. Yet in reality, such savage austerity measures rule out economic recovery.

What kind of Grexit?

EUROPE’S CAPITALIST LEADERS are struggling with a number of scenarios: New elections in Greece could (they hope) produce a pro-austerity government based on the right-wing New Democracy. This could result from the campaign by the leaders of New Democracy and the Panhellenic Socialist Movement (Pasok), together with eurozone leaders, to make the general election a referendum on Greece staying in the euro. Merkel even proposed a referendum in a phone conversation with the Greek president, Karolos Papoulias. While there is overwhelming rejection of the austerity measures, there is still a big majority (in the region of 80%) in favour of staying with the euro. This reflects fear of Greece, a small country, being isolated outside the eurozone, and slipping back to the backward economic conditions that prevailed before.

However, even if a new Greek government swallows the austerity measures, that would only provide temporary respite – because the debt loaded onto Greece is unsustainable, and the savage austerity measures will produce further mass movements against them. In any case, it is possible that Greece’s position within the eurozone could be undermined even before the elections by a massive run on the banks. The ECB will not be able to sustain the current level of support indefinitely. The collapse of major banks in Greece would make it impossible for Greece to stay in the eurozone.

Alternatively, Greece could be forced out of the eurozone in the near future. Some eurozone strategists are advocating a controlled exit from Greece, while others fear a chaotic separation.

A controlled exit would require an orderly transition from the euro to a new drachma, which would be exchanged at a lower value. This would still require massive Troika funding to support the Greek banks to prevent a collapse. In spite of further repudiation of its debts, the major eurozone economies would have to give support to Greece to prevent a meltdown of society.

Devastating chain reaction

GIVEN THE DISARRAY of eurozone leaders, however, it is perhaps more likely that there will be a completely chaotic exit of Greece, either as a result of a massive bank run or the election of an anti-austerity government. This would aggravate the European banking crisis. Many banks have already sold their Greek government bonds, which have been taken over by the ECB. But French and German banks would still be burned by a further default by Greece. This in turn would hit banks in Britain and other countries which have shareholdings in banks based in France, Spain, etc. There would be a chain reaction.

A major eurozone crisis, more intense than anything so far, would have a devastating effect on the European and global economy. Various estimates indicate that the eurozone GDP could fall by between 5% and 10%. This in turn would have a devastating impact on countries like Britain and also the United States, for which the eurozone is a major export market.

The unfolding of the eurozone crisis, moreover, is taking place against the background of continued stagnation in the world economy. There is a recession in the eurozone itself, with only very feeble growth in Germany, the biggest economy. The almost undetectable ‘recovery’ in the US is faltering. The recent huge losses by the investment bank JPMorgan Chase, which has lost up to $4 billion in speculative activity, shows the continued vulnerability of the finance sector, regardless of the eurozone crisis. Even the IPO (initial public offering) of Facebook, which was heralded as a great success for the hi-tech, consumer sector, proved to be a huge disappointment to investors, as its shares fell immediately after they were issued. Facebook indicates the fragility of the bubble economy that still continues.

The recent G8 summit in the United States, moreover, once again exposed the bankruptcy of capitalist leaders. Obama, supported by Hollande, called for policies to promote ‘growth and jobs’. But these were vague exhortations, with no concrete measures. Merkel made some verbal concessions to the idea of promoting growth, but made it clear that her primary concern is the implementation of austerity measures – outside Germany – despite the fact that they have ensured the prolongation of recession throughout most of Europe.

A trap for the working class

EXIT FROM THE eurozone will not provide a way out of crisis for Greek society. Repudiation of the debt would lift an immediate burden. Devaluation of a new national currency would boost exports. However, Greece is not in the same situation as Argentina in 2001: Argentina could rely on exports of food and other commodities, boosted by a devalued peso, against the backdrop of the pre-2008 world upswing. Greece does not have such raw materials, and also has very weak domestic industries. At the same time, Greece has been highly dependent on imports of fuel, food and consumer goods, which would become more expensive through devaluation of the Greek currency.

Moreover, the crisis in Argentina is a warning to the Greek working class. Most of the burden of the transition from the peso pegged to the US dollar to a devalued Argentine peso was thrown onto the working class and the middle class. Bank accounts were frozen and the value of peso deposits was drastically devalued. There was mass unemployment and a huge rise in absolute poverty. Only after several years of crisis did the Argentinean economy begin to recover, under more favourable global economic conditions than prevail at the present time.

There is no way out for the Greek working class within capitalism, either in the eurozone or outside. A national, ‘siege economy’ would be a trap for the working class. Any solution requires socialist economic measures under the democratic control of the working class.

If Greece leaves the eurozone, or is forced out, it is likely that other member states will follow. Spanish banks, for instance, are on the edge of insolvency. The Spanish government was recently forced to nationalise 40% of Bankia. Other banks in Italy, Portugal, Ireland, etc, are just as shaky. The €700 billion of Europe’s stability fund is not enough to stabilise the eurozone banking system.

Greece is not the cause of the eurozone crisis but one of its symptoms. But Greece may act as a detonator, triggering an explosion or perhaps a slower disintegration. This process is an expression of the organic crisis of the eurozone and the European Union itself.

Overcoming national limitations

THE CAPITALIST LEADERS who pushed for a common currency argued that it would consolidate the single market of the EU. The EU was intended to secure peace in Europe, stability and economic prosperity. The capitalist europhiles were under the illusion that they could overcome the national borders of capitalism, which ultimately act as a fetter on economic development. But everything has turned into its opposite.

Europe has sunk into economic stagnation and the common currency has accentuated the differences between the national economies rather than bringing about a convergence. Resentment at austerity policies has led to the growth of nationalist forces and far-right trends (one example being the growth in support for Golden Dawn in Greece). These developments confirm our view that the capitalist class cannot overcome its national limitations: that is a task for the working class, which can only be accomplished on socialist lines.

The Independent newspaper recently carried a front-page headline: ‘Capitalism at a Crossroads’ (19 May). It correctly sees the eurozone crisis as one aspect of a global crisis in the system. The crisis is reflected in the massive movements of the working class that have been taking place continuously throughout Europe and elsewhere. There is no doubt that many millions of workers reject capitalist austerity and are questioning the viability of the system. What is required is a clear alternative, a socialist planned economy, run under workers’ democracy, and with the international perspective of building a global planned economy.



Europe

 video

Video: Paul Murphy sets record straight on "legal aid", 06/05/2016

 further videos

CWI - get involved


solidarity

tamil solidarity campaign kazakhstan

featured links

Socialist Party Ireland

cwi links

Marxist.net, CWI marxist archive

cwi comment & analysis

world economic crisis

analysis and commentary


cwi publications

marxism in today's world che

Che Guevara: Símbolo de Lucha

Por Tony Saunois

A socialist world is possible, the history of the cwi with new introduction by Peter Planning green growth, a contribution to the debate on enviromental sustainability

NEWS

Congo: Day of Protest 26 May
28/05/2016, Per-Åke Westerlund, Jose Nsimba-Lobela and Congo Moko, Offensiv, weekly paper of Rättvisepartiet Socialisterna (CWI Sweden):
New massacres in mineral-rich region

Kazakhstan: Embassy protests in solidarity with struggle against land privatisation and for democratic rights
27/05/2016, Campaign Kazakhstan:
Soldarity actions take place internationally against Nazarbayev regime

Brazil: Mass protests against new government begin
27/05/2016, socialistworld.net:
LSR (CWI) forces participation highlighted

Solidarity: Brutal bosses attack striking Lisbon Dockers
25/05/2016, Socialismo Revolucionario (CWI in Portugal) reporters:
Protest and solidarity messages needed

Britain: EU referendum exposes gaping political fault-lines
24/05/2016, Peter Taaffe, from Socialism Today (monthly magazine of the Socialist Party England & Wales):
New road can open up for labour movement if working class relies on its own forces

Kazakhstan: Massive police operation confronts demonstrators
23/05/2016, Clare Doyle, CWI:
Nazarbayev regime faces mounting opposition

Australia: Federal election looming
21/05/2016, Editorial from May 2016 edition of ‘The Socialist’ (paper of the Socialist Party – CWI Australia) :
How should the labour and social movements respond?

Kazakhstan: Anger against Nazarbayev expressed on the streets
20/05/2016, socialistworld.net :
‘Illegal’ protests planned for Saturday 21 May

Britain: Brexit, the EU and the economy
19/05/2016, Judy Beishon, from The Socialist (weekly paper of the Socialist Party England & Wales) :
Remain or Leave, workers must fight for socialist change

Nigeria: General strike begins
18/05/2016, HT Soweto, Democratic Socialist Movement (CWI Nigeria):
Determined leadership and clear strategy needed to succeed

Greece: Striking Athens bus cleaners continue their struggle
17/05/2016, Articles from Xekinima (CWI Greece) website :
Court declares strike ‘lawful’

Canada: Fire devastates Fort McMurray
16/05/2016, Bill Hopwood, Socialist Alternative (CWI Canada) Vancouver :
Capitalism equals environmental destruction

Kazakhstan: Protests erupt
12/05/2016, Sergei Skobelev, CWI Russia:
Phoney elections have not brought stability

Sweden: Successful Congress for CWI forces
12/05/2016, Kristofer Lundberg, Rättvisepartiet Socialistern:
Political foundations laid for new branches and growth in other Nordic countries

Northern Ireland: Main parties win Assembly elections…
11/05/2016, Daniel Waldron, Socialist Party (CWI Ireland), Belfast:
But positive moves against sectarian politics

Quebec: The fight for $15 shows true colors of Parti Québecois
10/05/2016, Bruno, Alternative Socialiste (CWI in Quebec):
No to an all-class pro-independence alliance

Britain: Elections show anger and fragmentation
10/05/2016, Hannah Sell, from The Socialist (weekly paper of the Socialist Party, CWI England & Wales):
Mobilise the anti-austerity mood into a mass, democratic movement to defeat the right

Scotland: SNP win elections
09/05/2016, Philip Stott, Socialist Party Scotland (CWI):
New openings for a socialist left alternative emerge

Ireland: How long can Kenny’s government last?
07/05/2016, By Kevin McLoughlin, Socialist Party (CWI in Irelnd):
Minority government supported by two main parties and “Independents” formed

Video: Paul Murphy sets record straight on "legal aid"
06/05/2016, socialistworld.net:
Socialist MP threatened with jail for protesting against water charges responds to attacks in Irish parliament

South Africa: Zuma must go!
06/05/2016, Editorial from Izwi Labasebenzi (WASP - CWI South Africa) :
Build a socialist mass workers’ party for a government of the working class

Solidarity: Portuguese dock workers’ indefinite strike
05/05/2016, Socialismo Revolucionário (CWI in Portugal) Statement:
What we cannot do: leave the dockers alone

Hong Kong: Racist smear campaign against refugees
05/05/2016, Dikang, Socialist Action (CWI in Hong Kong):
Socialist Action (CWI) initiates successful anti-racist march

France: Striking workers join students and youth in mass demonstrations
04/05/2016, Naomi Byron, Paris (first published in The Socialist):
Build a general strike movement!

May Day 2016: Rallies and marches mark international workers' day
04/05/2016, socialistworld.net :
Photo gallery of CWI's global May Day participation

Ireland: Water charges suspended
03/05/2016, Katia Hancke, Socialist Party (CWI Ireland), Dublin:
Protest movement and boycott force huge Establishment parties climb down

CWI Comment and Analysis

ANALYSIS

Austria: Only 31,026 votes prevent far right’s Hofer becoming president
24/05/2016, Sonja Grusch, SLP (the Austrian section of the CWI):
‘Breathing space’ offers chance to build a fighting, democratic left alternative

Brazil: Fall of President Dilma Rousseff unleashes offensive against working class
19/05/2016, André Ferrari, LSR (‘Freedom, Socialism and Revolution’ - CWI Brazil):
The impeachment process and historic crisis of the PT (Workers’ Party)

Ireland: ‘Jobstown trials’ to go ahead
18/05/2016, Kieran Mahon, Anti-Austerity Alliance / Socialist Party Councillor, Dublin:
Government loses battle on water charges but wages war on Left

Saudi Arabia: Gathering storms over the House of Saud
13/05/2016, Serge Jordan, CWI:
Collapse of oil prices expose fragile foundations of oil Gulf monarchies

France: New stage in battle over labour law
12/05/2016, Clare Doyle, CWI:
Hollande’s decision to over-rule parliament provokes another round of struggle

Ireland: 100th anniversary of the execution of James Connolly
12/05/2016, Three articles on Connolly’s life and ideas :
Revolutionary socialist, militant workers' leader and internationalist

Belgium: Trade unions announce new plan of action
11/05/2016, LSP/PSL (CWI in Belgium) Reporters:
Call for two national demonstrations, building towards general strikes

Britain: 90th anniversary of epochal general strike
05/05/2016, Peter Taaffe, Socialist Party (CWI England & Wales) general secretary:
When workers tasted power

Israel/Palestine: The Marxist left, the national conflict and the
Palestinian struggle

29/04/2016, Socialist Struggle Movement (CWI Israel-Palestine):
The necessity of a class approach and a socialist alternative

France: One-day strike set for 28 April
26/04/2016, Alex Rouillard, Gauche Revolutionnaire (CWI in France):
A final stage before indefinite action against Hollande’s government?

US: The un-Democratic Primary
22/04/2016, Kshama Sawant, Socialist Alternative Seattle, originally published on counterpunch.org:
Why we need new party of the 99%

Capitalism: a failing system
18/04/2016, Peter Taaffe, from May edition of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
A new book, The Rise and Fall of American Growth, analyses the downward course of the US economy – and the limits of the whole capitalist system

Review: ’Militant’ by Michael Crick
14/04/2016, Peter Taaffe, Socialist Party (CWI in England & Wales) general secretary:
Lessons of Militant vital for anti-austerity struggles today

US election turmoil
01/04/2016, By Tony Saunois (CWI Secretary) who recently visited the US for meetings of Socialist Alternative:
Bernie Sanders campaign - an opportunity to build a new party of the 99%

Britain: A new moment
28/03/2016, Socialist Party (CWI in England & Wales), published in April 2016 issue of Socialism Today:
Extracts from a statement discussed at the Socialist Party’s recent congress

Ireland: 100th anniversary of Easter 1916 Rising
26/03/2016, Cillian Gillespie, Socialist Party (CWI Ireland):
A revolt against imperial power and war

History: When Khrushchev denounced Stalin
26/03/2016, Niall Mulholland, from Socialism Today (April 2016 issue of the monthly journal of Socialist Party, England & Wales):
1956 ‘secret speech’ a devastating blow to Stalinist regimes

11th CWI World Congress: World Perspectives
22/03/2016, socialistworld.net:
Amended agreed version of the World Perspectives document agreed by the CWI’s 11th World Congress

Germany: Big gains for right-wing, nationalist, AfD in state elections
22/03/2016, Sascha Stanicic, Sozialistische Alternative (CWI in Germany):
DIE LINKE (Left Party) urgently needs to change course

US: Sanders needs to run as an independent in November
18/03/2016, Calvin Priest, Socialist Alternative (CWI supporters in USA):
Continuing the Political Revolution

European Union: Alliance with Turkey to close borders
09/03/2016, Per-Ãke Westerlund, from Offensiv - the weekly paper of Rattvisepartiet Socialisterna (CWI in Sweden):
Crises for refugees - and the EU – continues

Germany: Between hatred and solidarity
08/03/2016, By Sascha Stanicic, Sozialistische Alternative (CWI in Germany):
The situation in Germany

Turkey: No intervention in Syria! Stop the war on the Kurds!
01/03/2016, By Murat Karin, Sosyalist Alternatif (CWI in Turkey) and Paula Mitchell, Socialist Party (CWI in England & Wales):
Two articles on the current situation in Turkey and Kurdistan

US: Nevada Goes to Clinton – Sanders Looks to Super Tuesday
26/02/2016, Calvin Priest, Socialist Alternative (CWI in the USA):
Huge enthusiasm for Bernie Sanders’ call for a political revolution leads to serious challenge to Hillary Clinton

Five years on from the “Arab Spring”
20/02/2016, Serge Jordan (CWI), article to be published in the March 2016 edition of Socialism Today, No.196.:
The “Arab Spring” revolutionary wave brought dictators in Tunisia and Egypt crashing down. It swept through the Middle East, inspiring workers and youth the world over. It has since ebbed, however, leaving the region wracked with war and sectarian conflict.