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latest news

Britain
Council cuts and the Corbyn campaign

01/09/2015: Potential to resist if follow 80’s Liverpool Council example

  Britain

Kurdistan
Democratic autonomy or socialism?

29/08/2015: Articles on Öcalan’s ideas and Rojava, originally published in sozialismus.info, the quaterly magazine of SAV (German section of the CWI)

  Kurdistan, Syria, Turkey

Greece
What does “Popular Unity” stand for?

28/08/2015: New Left force launched following Tsipras’ betrayal

  Greece

Sri Lanka
Identifying the challenges after defeat of Rajapaksa

27/08/2015: Working class struggle top priority for socialists

  Sri Lanka

Britain
The Corbyn insurgency

27/08/2015: Whatever the outcome of the contest, Jeremy Corbyn’s campaign has already transformed the political situation in Britain

  Britain

Lebanon
‘Garbage protests’ shake the ruling class

25/08/2015: Interview with Tamer Mahdi, CWI member in Lebanon

  Lebanon

World economy
China crisis triggers panic on global markets

25/08/2015: More than $5 trillion wiped off global stock markets in two weeks since Chinese devaluation

  China, World Economy

Sri Lanka
Election sees Rajapaksa fail to make a come-back

23/08/2015: Neo-liberal policies of UNP-led government will not satisfy demands of workers and poor.

  Sri Lanka

Gulf War
25 years since invasion of Kuwait

22/08/2015: ’Unfinished business’ remains today

  Iraq

History
Anniversary of Trotsky’s assassination

21/08/2015: Coming mass revolts will see workers and youth look to Trotsky’s ideas

  History, Trotsky

Scotland and the Jeremy Corbyn campaign

20/08/2015: The response to Corbyn’s campaign has parallels with the outpouring of class anger that was seen during the independence referendum

  Scotland

Thailand
Bomb in Bangkok kills 20

19/08/2015: Country plagued by military junta and economic downturn

  Thailand

Socialism
Past or future?

18/08/2015: Review of ‘PostCapitalism: a guide to our future’ by Paul Mason

  Science, Theory

Greece and the latest phase of the EU crisis

18/08/2015: Alexis Tsipras and the Syriza leadership have pushed through parliament the third bailout – and further deep cuts – although only with the help of right-wing parties. However, the crises in Greece, the eurozone and wider EU are far from over…

  Greece

Britain
Corbyn challenge - a very welcome political upheaval

17/08/2015: The Labour Party’s right-wing leaders have been astonished and horrified at the over-flowing rallies for Jeremy Corbyn around the UK over the last few weeks

  Britain

Northern Ireland
Left Challenge for Largest Union’s Leadership

15/08/2015: CWI member, Patrick Mulholland, leads Left campaign for leadership of NIPSA union

  Ireland North

Ireland
Paul Murphy and 22 activists to be charged over peaceful protest

14/08/2015: Socialist MP to be charged with false imprisonment for protesting against water charges

  Ireland Republic

Technology
Will robots end capitalism?

14/08/2015: Technological developments, the threat to jobs, and perspectives for the struggle against capitalism and for the future of humanity

  Science

 CWI School 2015
New Left formations

13/08/2015: Report of discussion on New Workers’ Parties, Left Populism and the ideas and programme of PODEMOS, SYRIZA

  CWI

China
Devaluation of yuan jolts global markets

12/08/2015: Sudden reversal of Beijing’s exchange rate policy underlines seriousness of China’s economic woes

  China

France/Britain
Human tragedy of Calais crisis

07/08/2015: Tories have no solutions

  Britain, France

Kurdistan
PYD leaders call for partnership with Bashar al-Assad’s regime

06/08/2015: No faith in authoritarian rulers and Western powers!

  Kurdistan, Syria, Turkey

Japan
70th anniversary of Hiroshima atomic bomb

06/08/2015: Can a future nuclear conflict be avoided?

  Japan, Nuclear Power

 CWI School
Building the CWI

06/08/2015: Introductory video to the plenary session on ‘Building the CWI’ shown at the 2015 CWI Summer School, featuring the work of our International across the world

  Video

Britain
Jeremy Corbyn – thousands rally to anti-austerity appeal

05/08/2015: Large attendances at Corbyn rallies across country

  Britain

US
Kshama Sawant leads primary elections count on 50%

05/08/2015: Seattle socialist primary election success

  US

Greece
‘The working class showed it will return to struggle’

04/08/2015: After Syriza capitulates, taking first steps towards building a new mass Left alternative to austerity and capitalism

  Greece

 CWI School 2015
World crisis continues amid horrific consequences

03/08/2015: Report of World Perspectives discussion at the 2015 CWI Summer School

  CWI

 CWI School
Drawing the lessons from the revolutions in North Africa

03/08/2015: Life and death struggle with the process of counter-revolution.

  Africa, CWI, Tunisia

US
Over 1,000 attend housing debate hosted by Socialist councillor Kshama Sawant

31/07/2015: Kshama Sawant, Seattle’s socialist councillor defending seat in primary elections on 4 August

  US

 CWI School
Social and political turmoil in Ireland

30/07/2015: Socialists play key role in rapidly changing situation

  CWI, Ireland Republic

Britain
Corbyn’s Labour leadership bid shows anti-austerity message popular

29/07/2015: Militant Tendency held up as bogeyman by Labour right and media - What’s the real history?

  Britain

Turkey
Horrific Suruc massacre

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

  Turkey

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

Greece: What does “Popular Unity” stand for?
28/08/2015, Interview with Andreas Payiatsos, Xekinima (CWI in Greece), by Lucy Redler, SAV (CWI in Germany):
New Left force launched following Tsipras’ betrayal

Britain: The Corbyn insurgency
27/08/2015, Editorial of Socialism Today, magazine of the Socialist Party (CWI in England & Wales), September 2015:
Whatever the outcome of the contest, Jeremy Corbyn’s campaign has already transformed the political situation in Britain

Lebanon: ‘Garbage protests’ shake the ruling class
25/08/2015, socialistworld.net:
Interview with Tamer Mahdi, CWI member in Lebanon

World economy: China crisis triggers panic on global markets
25/08/2015, Vincent Kolo, chinaworker.info:
More than $5 trillion wiped off global stock markets in two weeks since Chinese devaluation

Sri Lanka: Election sees Rajapaksa fail to make a come-back
23/08/2015, Srinath Perera, United Socialist Party (CWI in Sri Lanka):
Neo-liberal policies of UNP-led government will not satisfy demands of workers and poor.

Gulf War: 25 years since invasion of Kuwait
22/08/2015, Niall Mulholland, CWI:
’Unfinished business’ remains today

Scotland and the Jeremy Corbyn campaign
20/08/2015, Editorial taken from the current issue of the Socialist - the paper of Socialist Party Scotland (CWI):
The response to Corbyn’s campaign has parallels with the outpouring of class anger that was seen during the independence referendum

Thailand: Bomb in Bangkok kills 20
19/08/2015, Per-Ake Westerlund, Rattvisepartiet Socialisterna (CWI in Sweden):
Country plagued by military junta and economic downturn

Greece and the latest phase of the EU crisis
18/08/2015, Tony Saunois, CWI, from September 2015 issue of Socialism Today, magazine of the Socialist Party (CWI in England & Wales):
Alexis Tsipras and the Syriza leadership have pushed through parliament the third bailout – and further deep cuts – although only with the help of right-wing parties. However, the crises in Greece, the eurozone and wider EU are far from over…

Britain: Corbyn challenge - a very welcome political upheaval
17/08/2015, Interview with Judy Beishon in the Socialist, paper of the Socialist Party (CWI in England & Wales):
The Labour Party’s right-wing leaders have been astonished and horrified at the over-flowing rallies for Jeremy Corbyn around the UK over the last few weeks

Northern Ireland: Left Challenge for Largest Union’s Leadership
15/08/2015, Socialist Party (CWI in Ireland) reporters:
CWI member, Patrick Mulholland, leads Left campaign for leadership of NIPSA union

Ireland: Paul Murphy and 22 activists to be charged over peaceful protest
14/08/2015, Socialist Party (CWI in Ireland) reporters:
Socialist MP to be charged with false imprisonment for protesting against water charges

CWI School 2015: New Left formations
13/08/2015, Matt Dobson, Socialist Party Scotland (CWI in Scotland):
Report of discussion on New Workers’ Parties, Left Populism and the ideas and programme of PODEMOS, SYRIZA

China: Devaluation of yuan jolts global markets
12/08/2015, Editorial comment by chinaworker.info:
Sudden reversal of Beijing’s exchange rate policy underlines seriousness of China’s economic woes

Malaysia: Prime Minister implicated in financial scandals
11/08/2015, Socialist Alternative (CWI in Malaysia):
Power struggle in UMNO party

France/Britain: Human tragedy of Calais crisis
07/08/2015, Sarah Sachs-Eldridge, from The Socialist (weekly paper of the Socialist Party, CWI England & Wales):
Tories have no solutions

Japan: 70th anniversary of Hiroshima atomic bomb
06/08/2015, Geoff Jones and Kate Jones, from The Socialist (newspaper of the Socialist Party – CWI England & Wales):
Can a future nuclear conflict be avoided?

CWI School: Building the CWI
06/08/2015, Socialistworld.net:
Introductory video to the plenary session on ‘Building the CWI’ shown at the 2015 CWI Summer School, featuring the work of our International across the world

Britain: Jeremy Corbyn – thousands rally to anti-austerity appeal
05/08/2015, Steve Score, Socialist Party (CWI in England & Wales):
Large attendances at Corbyn rallies across country

US: Kshama Sawant leads primary elections count on 50%
05/08/2015, Socialist Alternative reporters:
Seattle socialist primary election success

CWI School: Drawing the lessons from the revolutions in North Africa
03/08/2015, David Johnson, Socialist Party (CWI in England and Wales):
Life and death struggle with the process of counter-revolution.

US: Over 1,000 attend housing debate hosted by Socialist councillor Kshama Sawant
31/07/2015, Kshama Sawant:
Kshama Sawant, Seattle’s socialist councillor defending seat in primary elections on 4 August

CWI School: Social and political turmoil in Ireland
30/07/2015, Eddie McCabe, Socialist Party (CWI in Ireland):
Socialists play key role in rapidly changing situation

Britain: Corbyn’s Labour leadership bid shows anti-austerity message popular
29/07/2015, Editorial from The Socialist, weekly paper of the Socialist Party (CWI England & Wales):
Militant Tendency held up as bogeyman by Labour right and media - What’s the real history?

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

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

CWI Comment and Analysis

ANALYSIS

Britain: Council cuts and the Corbyn campaign
01/09/2015, Clive Heemskerk, from Socialism Today, September 2015 issue (monthly magazine of the Socialist Party England & Wales):
Potential to resist if follow 80’s Liverpool Council example

Kurdistan: Democratic autonomy or socialism?
29/08/2015, Socialistworld.net:
Articles on Öcalan’s ideas and Rojava, originally published in sozialismus.info, the quaterly magazine of SAV (German section of the CWI)

Sri Lanka: Identifying the challenges after defeat of Rajapaksa
27/08/2015, Siritunga Jayasuriya, United Socialist Party (CWI in Sri Lanka):
Working class struggle top priority for socialists

History: Anniversary of Trotsky’s assassination
21/08/2015, Peter Taaffe, General Secretary Socialist Party (CWI England and Wales), article published on 70th anniversary of Leon Trotsky’s assassination, in 2010:
Coming mass revolts will see workers and youth look to Trotsky’s ideas

Socialism: Past or future?
18/08/2015, Peter Taaffe, Socialist Party (CWI in England & Wales) General Secretary:
Review of ‘PostCapitalism: a guide to our future’ by Paul Mason

Technology: Will robots end capitalism?
14/08/2015, Interview with Peter Taaffe, conducted by Shahar Ben-Horin from Socialist Struggle Movement (CWI in Israel-Palestine):
Technological developments, the threat to jobs, and perspectives for the struggle against capitalism and for the future of humanity

Ireland: Mass non-payment campaign transforms political landscape
10/08/2015, Cillian Gillespie, Socialist Party (CWI in Ireland):
57% refuse to pay hated water charge

Kurdistan: PYD leaders call for partnership with Bashar al-Assad’s regime
06/08/2015, Serge Jordan, CWI:
No faith in authoritarian rulers and Western powers!

Greece: ‘The working class showed it will return to struggle’
04/08/2015, Interview with a Greek socialist:
After Syriza capitulates, taking first steps towards building a new mass Left alternative to austerity and capitalism

CWI School 2015: World crisis continues amid horrific consequences
03/08/2015, Cillian Gillespie, Socialist Party (CWI in Ireland):
Report of World Perspectives discussion at the 2015 CWI Summer School

CWI School: Europe’s euro-crisis and prospects for class struggle
28/07/2015, Kevin Parslow, Socialist Party (CWI England & Wales):
Ground prepared everywhere for new battles and rise of left formations

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

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

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

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

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

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

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

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

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

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

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

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

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

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