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latest news

Ireland North
Martin McGuinness - from IRA leader to Stormont minister

29/03/2017: The IRA campaign, the ‘peace process’ and the working class

  Ireland North

Greece
H&M workers score victory against management plans

28/03/2017: Despite very difficult times, struggle can bring results

  Greece

 Solidarity
#JobstownNotGuilty international day of action a huge success

28/03/2017: Over 30 protests around the world and 88 MPs/MEPs pledge support

  Solidarity

Russia/Belarus
A week-end of mass protests

27/03/2017: New spring of protest opens up, as 1,000s arrested

  Russia

Hong Kong
Creeping “coup” by Chinese dictatorship

27/03/2017: Defend the four Hong Kong legislators

  Hong Kong

Britain
Terror attack at Westminster

24/03/2017: Unite against terror, racism and war

  Britain

Italy
Democratic Party splits and 5-Star Movement in crisis

22/03/2017: Class struggle can build real left force

  Italy

Spain
Student strike empties classes and fills streets on 9 March

21/03/2017: Over 100,000 take to the streets in SE demonstrations

  Spain

Scotland
Second referendum on independence?

18/03/2017: SNP fire the starting gun but offer no solutions to austerity

  Scotland

Brazil
National day of strikes and protests shows Temer can be beaten

17/03/2017: For a one-day general strike as the next step

  Brazil

South Africa
Unity against poverty, crime and xenophobia

17/03/2017: Capitalist politicians use xenophobia to divert attention from failures of profit system

  South Africa

Netherlands
Election result a colossal defeat for austerity government

16/03/2017: Oppose Wilders and the ‘mainstream’ right – Build a mass workers’ party that struggles for socialism

  Netherlands

Yemen
Workers and their families left to starve by multi-billionaire companies

16/03/2017: International campaign needed to force companies to pay

  Yemen

Hong Kong
Protest against LSG Sky Chefs dismissal of union chairman

14/03/2017: Ng Chi-Fai sacked for organising union by multinational’s Hong Kong division – international solidarity needed

  Hong Kong

Ireland North
Snap election raises sectarian temperature    

14/03/2017: Workers need strong socialist alternative at ballot box and in unions

  Ireland North

Quebec
Counter protest against far-right

13/03/2017: Rise of Islamophobia and right-wing reaction poses new challenges to the left

  Quebec

 International Women's Day
Speech by Kshama Sawant

12/03/2017: Video of 8 March rally in Seattle

  Women

 International Women’s Day
Millions join marches and take action

10/03/2017: Socialists around the world demand an end to women’s oppression

  Women

 Hong Kong
Women’s march against sexism and racism

09/03/2017: International Women’s Day: “Solidarity with global mass protests and women’s strikes”

  Women

 Spain
Hundreds of thousands participate in International Women’s day student strike

08/03/2017: ‘Libres y Combativas’ and Sindicato de Estudiantes call strike against sexist violence and for working class women's rights

  Women

Pakistan
Political spectacle of the ruling class

08/03/2017: Most workers underemployed, 40% in poverty - situation demands new workers’ party

  Pakistan

 International Women’s Day 2017
A century on from the Russian Revolution

06/03/2017: Demonstrations world-wide swelled by anti-Trump anger

  Women

Britain
Massive demo shows battle to save the NHS can be won

06/03/2017: Up to 250,000 march in national protest, organised from below

  Britain

Egypt
Price hikes hit workers and middle classes

04/03/2017: Falling support for dictator Sisi portends growing opposition

  Egypt

Hong Kong’s sham election

03/03/2017: Pan-democrats sink to new low by supporting “lesser evil” John Tsang

  Hong Kong

US
Socialist response to Trump’s address to joint session of congress

02/03/2017: Kshama Sawant, Socialist Alternative councillor, speaks

  US

Sweden
“Who could believe it?"

24/02/2017: What is behind Trump's attack?

  Sweden

Britain/Ireland
Dublin's #JobstownNotGuilty

23/02/2017: Defend the right to protest - stop this political vendetta!

  Ireland Republic

Ireland
A web of intrigue sparks government crisis

22/02/2017: Smear campaign against a prominent police whistleblower

  Ireland Republic

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: President Erdogan seeks dictatorial powers in April referendum
30/03/2017, Sosyalist Alternatif (CWI Turkey) Reporters :
Vote ‘NO’ gains momentum

Greece: H&M workers score victory against management plans
28/03/2017, Statement (slightly edited) by Xekinima (CWI Greece):
Despite very difficult times, struggle can bring results

Solidarity: #JobstownNotGuilty international day of action a huge success
28/03/2017, socialistworld.net :
Over 30 protests around the world and 88 MPs/MEPs pledge support

Russia/Belarus: A week-end of mass protests
27/03/2017, Socialist Alternative (CWI Russia) Reporters:
New spring of protest opens up, as 1,000s arrested

Hong Kong: Creeping “coup” by Chinese dictatorship
27/03/2017, Dikang, Socialist Action (CWI in Hong Kong) :
Defend the four Hong Kong legislators

Britain: Terror attack at Westminster
24/03/2017, Judy Beishon, from the Socialist Party (CWI England & Wales) website :
Unite against terror, racism and war

Belarus: Protesters flood onto streets demanding scrapping of “law against parasites”
21/03/2017, Daniil Raskolnikov (translation of article from the Russian CWI site www.socialist.news):
President Lukashenko must go!

Spain: Student strike empties classes and fills streets on 9 March
21/03/2017, Sindicato de Estudiantes (SE), Spanish Students' Union :
Over 100,000 take to the streets in SE demonstrations

Scotland: Second referendum on independence?
18/03/2017, Philip Stott, Socialist Party Scotland (CWI) :
SNP fire the starting gun but offer no solutions to austerity

South Africa: Unity against poverty, crime and xenophobia
17/03/2017, Shaun Arendse, Workers and Socialist Party (CWI South Africa):
Capitalist politicians use xenophobia to divert attention from failures of profit system

International Women’s Day: March in Malaysia and week of activity in Belgium
16/03/2017, socialistworld.net :
Reports from Kuala Lumpur and Brussels

Netherlands: Election result a colossal defeat for austerity government
16/03/2017, Pieter Brans, Socialist Alternative (CWI in Netherlands), Amsterdam:
Oppose Wilders and the ‘mainstream’ right – Build a mass workers’ party that struggles for socialism

Russian Revolution: March 1917 - After the fall of Czarism, what next for the revolution?
16/03/2017, socialistworld.net:
New article on 1917revolution.org

Hong Kong: Protest against LSG Sky Chefs dismissal of union chairman
14/03/2017, Sally Tang Mei-ching, Socialist Action (CWI in Hong Kong) :
Ng Chi-Fai sacked for organising union by multinational’s Hong Kong division – international solidarity needed

Quebec: Counter protest against far-right
13/03/2017, Michele Hehn, Alternative Socialiste (CWI in Quebec) :
Rise of Islamophobia and right-wing reaction poses new challenges to the left

International Women's Day: Speech by Kshama Sawant
12/03/2017, Socialistworld.net :
Video of 8 March rally in Seattle

International Women’s Day: Millions join marches and take action
10/03/2017, Clare Doyle, CWI:
Socialists around the world demand an end to women’s oppression

Hong Kong: Women’s march against sexism and racism
09/03/2017, Socialist Action (CWI in Hong Kong) reporters:
International Women’s Day: “Solidarity with global mass protests and women’s strikes”

Spain: Hundreds of thousands participate in International Women’s day student strike
08/03/2017, Sindicato de Estudiantes, students’ union in the Spanish state :
‘Libres y Combativas’ and Sindicato de Estudiantes call strike against sexist violence and for working class women's rights

Pakistan: Political spectacle of the ruling class
08/03/2017, Tariq Shahzad, National Organiser of IYWM (International Youth and Workers Movement) :
Most workers underemployed, 40% in poverty - situation demands new workers’ party

Britain: Massive demo shows battle to save the NHS can be won
06/03/2017, Hannah Sell, Socialist Party (CWI in England & Wales) deputy general secretary :
Up to 250,000 march in national protest, organised from below

Egypt: Price hikes hit workers and middle classes
04/03/2017, David Johnson, Socialist Party (CWI England & Wales) :
Falling support for dictator Sisi portends growing opposition

Hong Kong’s sham election
03/03/2017, Dikang, Socialist Action:
Pan-democrats sink to new low by supporting “lesser evil” John Tsang

US: Socialist response to Trump’s address to joint session of congress
02/03/2017, socialistworld.net:
Kshama Sawant, Socialist Alternative councillor, speaks

Catalonia: Historic demonstration in Barcelona in support of refugees
25/02/2017, Esquerra Revolucionària :
'Volem acollir'

CWI Comment and Analysis

ANALYSIS

Ireland North: Martin McGuinness - from IRA leader to Stormont minister
29/03/2017, Michael Cleary, Socialist Party (CWI Ireland), Belfast :
The IRA campaign, the ‘peace process’ and the working class

Italy: Democratic Party splits and 5-Star Movement in crisis
22/03/2017, Marco Veruggio, ControCorrrente, (CWI in Italy) :
Class struggle can build real left force

Brazil: National day of strikes and protests shows Temer can be beaten


17/03/2017, André Ferrari LSR (CWI in Brazil) :
For a one-day general strike as the next step

Yemen: Workers and their families left to starve by multi-billionaire companies
16/03/2017, Cedric Gerome, CWI :
International campaign needed to force companies to pay

Ireland North: Snap election raises sectarian temperature    
14/03/2017, Daniel Waldron, Socialist Party (CWI Ireland), Belfast :
Workers need strong socialist alternative at ballot box and in unions

International Women’s Day 2017: A century on from the Russian Revolution
06/03/2017, Clare Doyle, CWI :
Demonstrations world-wide swelled by anti-Trump anger

February revolution 1917: What lessons for today?
21/02/2017, Peter Taaffe, Socialist Party (CWI in England & Wales), printed in the Socialist (paper of the Socialist Party):
23 February 1917 (8 March in today’s calendar) marked the beginning of the socialist revolution in Russia, which sparked a revolutionary wave that would travel around the world.

India: Upheaval in Tamil Nadu
09/02/2017, Sajith Attepuram, New Socialist Alternative (NSA) (CWI India) :
Corruption, nepotism, and other crimes of ruling party exposed

Britain: Universal basic income demand gains ground
08/02/2017, Judy Beishon, from The Socialist (weekly newspaper of the Socialist Party – CWI England & Wales) :
What approach should socialists take?

CWI and Izquierda Revolucionaria – Towards unification
06/02/2017, Socialistworld.net :
Joint declaration of the CWI’s IEC and Izquierda Revolucionaria’s IEC

France: After Sarkozy, Juppé and Valls, now Fillon is on the way out
06/02/2017, Alex Rouillard, Gauche Révolutionnaire (CWI in France) :
Space opening up to left of Socialist Party

Syria: Is an end to the war in sight?
03/02/2017, Serge Jordan (CWI) :
New movements for change will need to arm themselves with the lessons of the Syrian tragedy

Sri Lanka: The year 2017
31/01/2017, Siritunga Jayasuriya, United Socialist Party (CWI in Sri Lanka) :
Between oppression and struggle

Canada: Where are Trudeau’s ‘Sunny Ways’?
31/01/2017, Tim Heffernan, Socialist Alternative (CWI Canada), Toronto

:
Battles of Indigenous peoples, youth, workers will test Liberal government

Russian Revolution Centenary: January 1917 - On the eve of revolution
29/01/2017, Niall Mulholland, from 1917revolution.org :
War, hunger, hated Tsarist regime: class tensions reach breaking point

Afghanistan: The limits of US power
28/01/2017, Judy Beishon, from Socialism Today (February 2017 issue), monthly magazine of the Socialist Party (CWI England & Wales)<br />
<br />
:
Imperialism’s 15-year adventure a bloody catastrophe for millions

US: Build 100 days of resistance to Trump’s agenda!
27/01/2017, Bryan Koulouris, Socialist Alternative, US :
Establishment deeply divided as mass resistance explodes

Millions on women's marches around the world
25/01/2017, Editorial from the Socialist, paper of the Socialist Party (CWI in England & Wales) and reports from US marches :
Reports from mass women's marches against Trump

China: New US President’s approach to China
21/01/2017, Vincent Kolo, chinaworker.info :
Outbursts raise fears of confrontation

Ireland North: Snap elections called to Stormont Assembly
17/01/2017, Daniel Waldron, Socialist Party (CWI Ireland), Belfast :
Build a socialist alternative to the ‘Orange’ versus ‘Green’ headcount

Spain: What kind of Podemos do workers and youth need?
17/01/2017, Izquierda Revolucionaria, Spanish state, editorial :
Debate within leadership touches on fundamental issues for future of party

US: Trump prepares vicious attacks
05/01/2017, Philip Locker and Tom Crean, Socialist Alternative (US):
Mass resistance needed!

Russian Revolution centenary
02/01/2017, Editorial from Socialism Today, Dec/Jan 2017 edition:
Defending the legacy in a new era

2017:Upheaval and fightback will continue
01/01/2017, Peter Taaffe, Socialist Party (CWI in England & Wales) general secretary :
Everything to play for in 2017

Britain's shifting political contours
22/12/2016, Hannah Sell, Socialist Party (CWI in England & Wales) from Socialism Today Dec/Jan 2017 edition :
Capitalist establishment in disarray