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latest news

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

29/04/2016: The necessity of a class approach and a socialist alternative

  Israel / Palestine

Austria
Stop the rise of the far right!

27/04/2016: Against Hofer, the government and the system of the super-rich!

  Austria

Greece
Athens bus cleaners hold solid 48 hour strike

27/04/2016: Workers resist inhuman working conditions and violation of working rights

  Greece

France
One-day strike set for 28 April

26/04/2016: A final stage before indefinite action against Hollande’s government?

  France

Germany
Huge protest against TTIP deal

25/04/2016: For decisive unions’ action to stop bosses’ plans!

  Germany

Britain
Jeremy Corbyn’s EU u-turn

23/04/2016: The bosses’ EU is no friend of workers

  Britain

Belgium
New major social conflict in the making

22/04/2016: Second action plan needed to stop the Michel government

  Belgium

US
The un-Democratic Primary

22/04/2016: Why we need new party of the 99%

  US

South Africa
Zuma & the ANC must fall

22/04/2016: Build a socialist mass workers party for a government of the working class

  South Africa

 Video
Paul Murphy speaks on Brexit referendum and for a socialist Europe

21/04/2016: Socialist Party TD (MP) exposes real nature of EU in Irish parliament

  Europe, Video

Iceland
Mass protests continue

21/04/2016: CWI’s programme explained

  Iceland

India
Workers oppose Modi proposals

21/04/2016: Eye-witness account of successful protest

  India

 Video
Peter Taaffe debates with Paul Mason on BBC TV

20/04/2016: Socialist Party General Secretary debates with author and journalist on revolutionary socialism today

  Britain, Video

 Sudan
Solidarity from the Education Rights Campaign (ERC) - Nigeria with the student protests in Khartoum

20/04/2016: The ERC, the national student campaign linked to the DSM (CWI in Nigeria) is displaying its support for the student movement in Sudan

  Nigeria, Solidarity, Sudan

Poland
Anger at abortion ban plan

20/04/2016: Protests and a new spontaneous movement for abortion rights erupt

  Poland

 Sudan
Solidarity with the students’ protests!

19/04/2016: Free all arrested students now

  Solidarity, Sudan

Iran
Jailed trade unionists announce start of hunger strikes on April 29

19/04/2016: Statement by Jafar Azimzadeh, a leader of the Free Union of Iranian Workers, and Esmail Abdi, a leader of the Iranian Teachers Trade Association

  Iran

Capitalism
a failing system

18/04/2016: 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, US

 Video
Socialist TV appearance ’goes viral’ in US

18/04/2016: FOX interview with Darletta Scruggs, Socialist Alternative member, viewed millions of times

  US, Video

Cuba
Obama’s visit

16/04/2016: Easing of embargo to promote US capitalist interests

  Cuba

Burma
Democrats have historic majority in parliament

16/04/2016: But army remains powerful force

  Burma

Belgium
Successful ‘Socialism 2016’ weekend event

14/04/2016: Inequality, war and insecurity show the urgency of the struggle for socialism

  Belgium

Review
’Militant’ by Michael Crick

14/04/2016: Lessons of Militant vital for anti-austerity struggles today

  Britain, History, Review

Britain
Panama Papers reveal corrupt system of the 1%

13/04/2016: Build a party in the interests of the millions not the millionaires

  Britain

France
Workers and youth on the streets

12/04/2016: Full-scale struggle with ‘Socialist’ government erupting

  France

Hong Kong
Panama Papers: Hong Kong protest

12/04/2016: “Tax the rich” shout protesters at Mossack Fonseca’s Hong Kong office

  Hong Kong

Netherlands
Dutch say ‘No’ to EU-Ukraine Treaty

11/04/2016: Major blow against “endless austerity” Liberal/Labour government

  Netherlands

 Brazil
Solidarity with attacked civil servants

08/04/2016: Hired thugs beat rank and file trade union protesters

  Brazil, Solidarity

Iceland
"You're fired!"

07/04/2016: Protesters stay on streets after forcing PM's resignation

  Iceland

China
Panama Papers name eight Chinese leaders

06/04/2016: Massive clampdown by state censors

  China

Britain
Panama Papers scandal

06/04/2016: ‘They’re all in it together!’

  Britain

Sri Lanka
Left political leader imprisoned

06/04/2016: Socialists demand immediate release

  Sri Lanka

US
Chicago teachers’ Day of Action

05/04/2016: 15,000 demonstrate

  US

Germany
420 attend “Socialism Days”!

05/04/2016: An expression of the recent advances and growing support for the SAV

  Germany

Euro crisis

Greece heads for the exit

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

Eurozone convulsed by turbulent economic forces and political upheavals

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

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

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

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

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

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

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

What kind of Grexit?

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

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

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

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

Devastating chain reaction

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

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

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

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

A trap for the working class

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

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

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

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

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

Overcoming national limitations

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

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

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



Europe

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NEWS

Austria: Stop the rise of the far right!
27/04/2016, Tilman Ruster, SLP (CWI in Austria):
Against Hofer, the government and the system of the super-rich!

Greece: Athens bus cleaners hold solid 48 hour strike
27/04/2016, Apostolos Kasimeris (Board Member of OASA’s Athens Bus Workers’ Union) and Eleni Mitsou (Xekinima - CWI Greece) :
Workers resist inhuman working conditions and violation of working rights

Germany: Huge protest against TTIP deal
25/04/2016, Angelika Teweleit, Socialist Alternative (SAV- the CWI in Germany):
For decisive unions’ action to stop bosses’ plans!

Britain: Jeremy Corbyn’s EU u-turn
23/04/2016, Hannah Sell, Socialist Party deputy general secretary:
The bosses’ EU is no friend of workers

Belgium: New major social conflict in the making
22/04/2016, Els Deschoemacker, LSP/PSL (CWI in Belgium):
Second action plan needed to stop the Michel government

South Africa: Zuma & the ANC must fall
22/04/2016, Workers and Socialist Party (CWI in South Africa):
Build a socialist mass workers party for a government of the working class

Video: Paul Murphy speaks on Brexit referendum and for a socialist Europe
21/04/2016, socialistworld.net:
Socialist Party TD (MP) exposes real nature of EU in Irish parliament

Iceland: Mass protests continue
21/04/2016, Jonas Brännberg, Rättvisepartiet Socialisterna (CWI Sweden), in Reykjavik:
CWI’s programme explained

India: Workers oppose Modi proposals
21/04/2016, New Socialist Alternative (CWI India):
Eye-witness account of successful protest

Video: Peter Taaffe debates with Paul Mason on BBC TV
20/04/2016, socialistworld.net:
Socialist Party General Secretary debates with author and journalist on revolutionary socialism today

Sudan: Solidarity from the Education Rights Campaign (ERC) - Nigeria with the student protests in Khartoum
20/04/2016, Socialistworld.net:
The ERC, the national student campaign linked to the DSM (CWI in Nigeria) is displaying its support for the student movement in Sudan

Poland: Anger at abortion ban plan
20/04/2016, Paul Newberry, Alternatywa Socjalistyczna (CWI in Poland):
Protests and a new spontaneous movement for abortion rights erupt

Sudan: Solidarity with the students’ protests!
19/04/2016, Statement of Socialist Alternative (CWI in Sudan):
Free all arrested students now

Iran: Jailed trade unionists announce start of hunger strikes on April 29
19/04/2016, socialistworld.net:
Statement by Jafar Azimzadeh, a leader of the Free Union of Iranian Workers, and Esmail Abdi, a leader of the Iranian Teachers Trade Association

Video: Socialist TV appearance ’goes viral’ in US
18/04/2016, socialistworld.net:
FOX interview with Darletta Scruggs, Socialist Alternative member, viewed millions of times

Cuba: Obama’s visit
16/04/2016, Rogelio Manuel Díaz Moreno, socialist corespondent in Havana, Cuba:
Easing of embargo to promote US capitalist interests

Burma: Democrats have historic majority in parliament
16/04/2016, Keith Dickinson, Socialist Party (England and Wales):
But army remains powerful force

US: The Battle of New York: Sanders Campaign Faces Decisive Test
15/04/2016, Tom Crean, Socialist Alternative :

Belgium: Successful ‘Socialism 2016’ weekend event
14/04/2016, PSL-LSP (CWI in Belgium):
Inequality, war and insecurity show the urgency of the struggle for socialism

Britain: Panama Papers reveal corrupt system of the 1%
13/04/2016, Editorial from The Socialist (weekly paper of the Socialist Party, CWI England & Wales) :
Build a party in the interests of the millions not the millionaires

France: Workers and youth on the streets
12/04/2016, Clare Doyle, CWI :
Full-scale struggle with ‘Socialist’ government erupting

Hong Kong: Panama Papers: Hong Kong protest
12/04/2016, Socialist Action (CWI in Hong Kong) reporters:
“Tax the rich” shout protesters at Mossack Fonseca’s Hong Kong office

Netherlands: Dutch say ‘No’ to EU-Ukraine Treaty
11/04/2016, Pieter Brans, Socialist Alternative (CWI in Netherlands), Amsterdam :
Major blow against “endless austerity” Liberal/Labour government

Brazil: Solidarity with attacked civil servants
08/04/2016, LSR (CWI in Brazil) reporters:
Hired thugs beat rank and file trade union protesters

Iceland: "You're fired!"
07/04/2016, Natalia Medina, Rättvisepartiet Socialisterna (CWI Sweden), reports from Reykjavik :
Protesters stay on streets after forcing PM's resignation

China: Panama Papers name eight Chinese leaders
06/04/2016, Vincent Kolo, chinaworker.info :
Massive clampdown by state censors

CWI Comment and Analysis

ANALYSIS

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

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.

CWI 11th World Congress: South Asia wracked by instability
15/02/2016, Geert Cool, CWI Belgium:
Huge potential for workers’ struggles

US: Bernie’s political revolution opens new era for American politics
13/02/2016, Patrick Ayers, Socialist Alternative (CWI in the USA):
Build a #Movement4Bernie to Defeat the Billionaire Class and the Democratic Party Establishment.

CWI 11th World Congress 2016: Women and oppression in class society
13/02/2016, CWI World Congress Document:
A socialist approach

CWI 11th World Congress: Upheaval of traditional European political framework
12/02/2016, Sarah Wrack, Socialist Party (CWI England & Wales):
Workers’ fury at austerity and capitalist system will find more expression

11th CWI World Congress: A World in turmoil
11/02/2016, Kevin Parslow, Socialist Party (CWI England & Wales):
Renewed economic crisis, wars, political polarisation & class struggle perspectives

Africa: New political storms and mass struggles
08/02/2016, CWI 11th World Congress Document:
Opportunities will arise for working class and poor to organise

India: Rising class struggle reflects seething anger of working class
08/02/2016, Anand Kumar, from Dudiyora Horaata (Workers’ Struggle – newspaper of the CWI in India), Bangalore:
Is ‘Modimania’ on the wane?

World relations, economy and the class struggle
08/02/2016, Socialistworld.net:
CWI 11th World Congress document

Spain: A break in the political establishment
07/02/2016, Danny Byrne, CWI (article from issue 195 of ’Socialism Today’):
December’s elections broke the hold of the two main capitalist parties for the first time since the Franco dictatorship. The high vote for representatives of workers’ and social movements, and the recovery of the left-populist Podemos, open up a new phase in the struggle against austerity.