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France
Department elections

31/03/2015: Valls and Hollande punished for their policies

  France

 Venezuela
Alcedo Mora must be found alive!

30/03/2015: Urgent need for international solidarity

  Solidarity, Venezuela

Netherlands
Election setback for Labour Party

30/03/2015: Main parties guarantee austerity - A mass party of the Left with a socialist programme needed

  Netherlands

Germany
20,000 people give ECB “the finger”

28/03/2015: Big demo and blockade against the reopening of the Central Bank

  Germany

 Video
Interview with a Greek socialist

28/03/2015: The Syriza government and the Troika and building the Greek Left

  Greece, Video

South Africa
NUMSA & WASP discuss international experiences of new workers’ parties

27/03/2015: South Africa’s metalworkers union in discussion with WASP and CWI

  Africa, South Africa

Obituary
Harald Mahrer (1974-2015)

27/03/2015: An active, critical and inspiring comrade

  Obituary

 Video
Dave Nellist on Russia Today TV

26/03/2015: Trade Unionist and Socialist Coalition (TUSC) standing throughout Britain in May elections

  Britain, Video

Norway
Lessons of the pilots’ strike

25/03/2015: A struggle against outsourcing

  Norway

Israel
Netanyahu mobilises far right to win election

25/03/2015: New coalition will face unresolved crises and bitter struggles

  Israel / Palestine

China
Demand release of arrested women activists

24/03/2015: Has the commemoration of International Women’s Day also now been outlawed in China?

  China

Italy
The instability of domestic capitalism

24/03/2015: Political vacuum pushes FIOM to take initiative

  Italy

Sweden
Central bank rates cut "panic measure"

23/03/2015: Eurozone’s QE intensifies currency wars

  Sweden

Greece
Varoufakis’ “erratic Marxism” is not the answer

23/03/2015: Necessary to clarify ideas upon which successful struggles of European working class will be conducted

  Greece

Tunisia
Twenty three killed in terrorist attack

20/03/2015: Down with terror! Down with capitalism!

  Tunisia

Belgium
No agreement reached between unions and government over austerity

20/03/2015: New action plan against right wing government takes off

  Belgium

Ukraine
Conflict unresolved after ’Minsk-2’ agreement

18/03/2015: Only independent working-class mass movement can remove the region’s authoritarian rulers

  Ukraine

Ireland North
Public sector workers strike against austerity

18/03/2015: For a second day of strike action in the run-up to the May general election!

  Ireland North

 North Cyprus
New strike wave against cuts

17/03/2015: Workers determined to stop austerity

  Cyprus, Solidarity

 Brazil
Urgent solidarity protests needed

17/03/2015: Faced with lack of water for the people, Sao Paulo water company SABESP cuts costs, sacks more than 500 workers and victimises trade union activists

  Brazil, Solidarity

 Scotland
Socialist Party Scotland (CWI) leaves Solidarity

16/03/2015: Tommy Sheridan departs from principled socialist position with call for “lending vote" to cuts-making SNP

  CWI, Scotland

Britain
What lies behind UKIP?

14/03/2015: Its Tory-oriented anti-immigration, anti-EU rhetoric has been adapted to a right-wing populism aimed at winning voters fed up with the political establishment

  Britain

Ireland North
Massive public sector strike against austerity

13/03/2015: Socialist MPs in Southern Ireland Parliament send message of support to strikers

  Ireland North, Ireland Republic

Ireland South
Marriage equality referendum set for May

12/03/2015: Poisonous bigotry must be challenged

  Ireland Republic

Ireland North
Stormont government crisis on eve of public sector strike

11/03/2015: Struggle can force politicians back from austerity measures

  Ireland North, Ireland Republic

Iran
Independent workers’ organizations statement about minimum wage

11/03/2015: Increasing demands for a living wage

  Iran

Ireland North
13 March public sector strike against austerity

10/03/2015: Dead-end of rightwing, sectarian politics - new anti-sectarian party which fights for working class needed

  Ireland North

  Video
Dublin ROSA demonstration on International Women’s Day

10/03/2015: Ruth Coppinger, Socialist Party TD (MP) speaks along with other activists

  Ireland Republic, Video, Women

 International Women’s Day 2015

09/03/2015: Articles from CWI sections celebrating IWD

  Women

Greece
Syriza’s first months in power

07/03/2015: The working class and social movements must enter the struggle for their rights

  Greece

Netherlands
Wave of student protests

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

  Netherlands

Austria
The year starts with antifascism

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

  Austria, Venezuela

 Greece
Vodafone strike declared “illegal”

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

  Greece, Solidarity

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

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

  Russia

Quebec
Towards a hot spring

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

  Quebec

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

France: Department elections
31/03/2015, Article from web-site of Gauche Revolutionnaire (CWI France) written by Leila Massaoudi (updated 30 March):
Valls and Hollande punished for their policies

Venezuela: Alcedo Mora must be found alive!
30/03/2015, Socialismo Revolucionario (CWI in Venezuela) reporters:
Urgent need for international solidarity

Netherlands: Election setback for Labour Party
30/03/2015, Pieter Brans, Amsterdam:
Main parties guarantee austerity - A mass party of the Left with a socialist programme needed

Germany: 20,000 people give ECB “the finger”
28/03/2015, by Michael Koschitzki, SAV – Sozialistische Alternative (CWI in Germany):
Big demo and blockade against the reopening of the Central Bank

Video: Interview with a Greek socialist
28/03/2015, Nicos Anastasiades of Xekinima (CWI Greece):
The Syriza government and the Troika and building the Greek Left

South Africa: NUMSA & WASP discuss international experiences of new workers’ parties
27/03/2015, socialistworld.net:
South Africa’s metalworkers union in discussion with WASP and CWI

Obituary: Harald Mahrer (1974-2015)
27/03/2015, Sozialistische LinksPartei (CWI Austria) Reporters:
An active, critical and inspiring comrade

Video: Dave Nellist on Russia Today TV
26/03/2015, socialistworld.net:
Trade Unionist and Socialist Coalition (TUSC) standing throughout Britain in May elections

Norway: Lessons of the pilots’ strike
25/03/2015, Elin Gauffin, Rättvisepartiet Socialisterna (CWI Sweden):
A struggle against outsourcing

China: Demand release of arrested women activists
24/03/2015, Sally Tang Mei-Ching, Socialist Action (CWI in Hong Kong):
Has the commemoration of International Women’s Day also now been outlawed in China?

Sweden: Central bank rates cut "panic measure"
23/03/2015, Per-Åke Westerlund, Rättvisepartiet Socialisterna (CWI Sweden):
Eurozone’s QE intensifies currency wars

Tunisia: Twenty three killed in terrorist attack
20/03/2015, Statement by CWI-Tunisia:
Down with terror! Down with capitalism!

Ireland North: Public sector workers strike against austerity
18/03/2015, Kevin Henry, Socialist Party (CWI Ireland), Belfast:
For a second day of strike action in the run-up to the May general election!

North Cyprus: New strike wave against cuts
17/03/2015, Özgür İnsanoğlu and Bahtiyar Girne, North Cyprus:
Workers determined to stop austerity

Brazil: Urgent solidarity protests needed
17/03/2015, Translation of a solidarity appeal from the LSR (CWI in Brazil):
Faced with lack of water for the people, Sao Paulo water company SABESP cuts costs, sacks more than 500 workers and victimises trade union activists

Scotland: Socialist Party Scotland (CWI) leaves Solidarity
16/03/2015, Statement from Socialist Party Scotland Executive Committee:
Tommy Sheridan departs from principled socialist position with call for “lending vote" to cuts-making SNP

Britain: What lies behind UKIP?
14/03/2015, Hannah Sell, Socialist Party (CWI in England & Wales):
Its Tory-oriented anti-immigration, anti-EU rhetoric has been adapted to a right-wing populism aimed at winning voters fed up with the political establishment

Ireland North: Massive public sector strike against austerity
13/03/2015, Socialistworld.net:
Socialist MPs in Southern Ireland Parliament send message of support to strikers

Ireland South: Marriage equality referendum set for May
12/03/2015, Helen Redwood, Socialist Party (CWI Ireland):
Poisonous bigotry must be challenged

Ireland North: Stormont government crisis on eve of public sector strike
11/03/2015, Kevin Henry, Socialist Party (CWI Ireland), Belfast:
Struggle can force politicians back from austerity measures

Iran: Independent workers’ organizations statement about minimum wage
11/03/2015, Statement by six Iranian workers’ organizations:
Increasing demands for a living wage

Ireland North: 13 March public sector strike against austerity
10/03/2015, Text of Socialist Party (CWI Ireland) leaflet, Belfast:
Dead-end of rightwing, sectarian politics - new anti-sectarian party which fights for working class needed

Video: Dublin ROSA demonstration on International Women’s Day
10/03/2015, socialistworld.net:
Ruth Coppinger, Socialist Party TD (MP) speaks along with other activists

International Women’s Day 2015
09/03/2015, socialistworld.net:
Articles from CWI sections celebrating IWD

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

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

CWI Comment and Analysis

ANALYSIS

Israel: Netanyahu mobilises far right to win election
25/03/2015, Yasha Marmer, Socialist Struggle Movement, Israel-Palestine:
New coalition will face unresolved crises and bitter struggles

Italy: The instability of domestic capitalism
24/03/2015, Marco Veruggio, ControCorrente (CWI Italy):
Political vacuum pushes FIOM to take initiative

Greece: Varoufakis’ “erratic Marxism” is not the answer
23/03/2015, Peter Taaffe, from Socialism Today (monthly magazine of the Socialist Party, England & Wales):
Necessary to clarify ideas upon which successful struggles of European working class will be conducted

Belgium: No agreement reached between unions and government over austerity
20/03/2015, Eric Byl, LSP/PSL (Belgian section of the CWI), Brussels:
New action plan against right wing government takes off

Ukraine: Conflict unresolved after ’Minsk-2’ agreement
18/03/2015, Rob Jones, CWI, Moscow:
Only independent working-class mass movement can remove the region’s authoritarian rulers

Greece: Syriza’s first months in power
07/03/2015, Andreas Payiatsos, from Xekinima (newspaper of the CWI Greece):
The working class and social movements must enter the struggle for their rights

Quebec: Towards a hot spring
02/03/2015, Deirdre and Bruno, Socialist Alternative (CWI Quebec):
Disrupt them like they disrupt us!

Greece showdown
26/02/2015, Article to be published in the March issue of Socialism Today (magazine of the Socialist Party, CWI in England and Wales):
Niall Mulholland interviewed NICOS ANASTASIADES, of Xekinima (CWI Greece), just as Syriza leaders agreed a four-month bail-out extension with the EU.

Libya: War-torn country becoming new hub for IS activities
25/02/2015, Serge Jordan (CWI):
Libyan people bearing the brunt of NATO’s fiasco

Europe: Eurozone time-bomb
25/02/2015, Lynn Walsh, article from Socialism Today (magazine of the Socialist Party of England and Wales):
Mired in recession, the eurozone is haunted by the spectre of stagnation

Greece: Syriza retreats under Troika threats
24/02/2015, Nicos Anastasiades, Xekinima (CWI Greece), Thessaloniki:
Popular mood shows anti-austerity, socialist policies would win huge support

History: The political legacy of Malcolm X
21/02/2015, Eljeer Hawkins, Socialist Alternative:
50 years after his assassination

Spain: Is ‘Podemos’ the Spanish Syriza?
16/02/2015, Danny Byrne, CWI:
Dangers of “moderation” and domestication

Egypt: Regime brutality on fourth anniversary of revolution
10/02/2015, David Johnson, Socialist Party (CWI England & Wales):
Masses will regain confidence and willingness to fight

Greece: Not a single step back!
08/02/2015, Statement by the Editorial Board of Xekinima (CWI Greece):
Conflict between SYRIZA government and EU escalates

Kurdistan: ‘Islamic State’ driven out of Kobanê
02/02/2015, Serge Jordan, CWI:
Will the end of Kobanê’s siege turn the tide against IS?

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

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

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

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

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

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

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

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