Sunday, 17 March 2013

Cyprus bailout, poor suffer while bond holders are protected

As another EU country goes for another financial bailout affecting millions and potentially having a larger knock on affect the crisis in the Euro zone goes from bad to worse. The emerging details of the so-called bailout agreement with Cyprus indicate that there is no change in the recipe book of Troika bailouts – senior bondholders will be protected while working people will be crucified. Small deposit holders in Cypriot banks will lose 6.75% of their savings overnight, while international speculators and bondholders are protected. The hawks of global capitalism are using the crisis to impose their neo-liberal model of capitalism to increase their profits. A €1.4bn privatisation programme will see Cypriot public services run down and sold off at rock bottom prices. This seems to be the worst of a bad lot of so-called bailouts. People in Cyprus now face a future of vicious austerity and devastation of society that point towards a Greek situation of societal collapse. Austerity policies have devastated economies across Europe. The eurozone has returned to recession and the EU as a whole saw a collapse of GDP of 0.6% in the last quarter of last year alone. Why are these policies still being pursued despite the clear evidence that they don’t work from the point of view of the economy as a whole? Because austerity is working – it’s working for the bondholders and speculators whose debts are being repaid and for a section of big business who have increased profits off the back of attack on wages and conditions. It underlines the need for common struggle and resistance across Europe and for a programme for radical socialist change – repudiating the debts to the bondholders, public investment to create jobs, and democratic planning of our economies to redevelop our economies in an environmentally and economically sustainable manner.” With extracts from Paul Murphy MEP of the socialist party

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