Showing posts with label EU. Show all posts
Showing posts with label EU. Show all posts
Saturday, 28 February 2015
Syriza's first month
with thanks to libcom
http://libcom.org/blog/syrizas-first-month-28022015A month since its election Syriza has moved far from its anti-austerity, anti-bailout rhetoric.
It's been just over a month since Syriza won the Greek elections and formed a government. A month can be a long time in the Greek crisis and already the enthusiasm and hope that greeted the Leftist victory seems like something from the distant past. The new government's first few weeks saw a mix of action, inaction, retreat and surrender as it looked to find its feet both within the Greek state and in Europe.
The news of Syriza's victory was greeted with joy from the Left across Europe. A Leftist anti-austerity party had actually won an election and was making grand promises of changing Europe. This enthusiasm was tempered somewhat by Syriza's formation of a coalition with right-wing Independent Greeks(AN.EL). This move was not surprising as the two parties have had an informal alliance for sometime as both are firmly anti-austerity. Whilst AN.EL took the valuable Defence Ministry they have so far kept themselves in the background.
The formation of a coalition with AN.EL indicated that the main goal of the new government was to create an anti-austerity front to carry on negotiations with the Troika(IMF,EU,ECB). Syriza was elected on a promise to end the memorandums, the notorious bailout agreements through which the Greek state has been ruled for the last five years. Syriza's rhetoric started off by claiming an end to the bailouts and declaring the death of the Troika.
From this rhetorical high ground Syriza gradually climbed down over the next few weeks. The claim that Greek debt would be written off was swiftly dropped. Charismatic Finance Minister Yanis Varoufakis stated that 70% of the bailout agreements was actually good and he only wanted to change the other 30%. Though Syriza demonstrated its willingness to quickly back down the talks with EU leaders dragged on. In part this was likely a deliberate move by the EU in order to push Syriza to further concessions and to punish the Leftist government in the manner of a teacher disciplining a back-talking pupil.
In the end a slow bank run in Greece helped bring about a new agreement. The Troika was not dead after all but was just renamed. Syriza agreed to an extension of the previous bailout for four months, at which point a new arrangement will be made. Syriza won a few minor concessions such as a reduction in primary surplus targets and the ability to write some of their own reforms. The wording of the agreements has been changed, for instance no naming of the Troika, but other than that the extension is exactly the same as the previous government was prepared to implement. In just a few weeks Syriza has gone from ending the bailouts to extending them.
The main substantial difference between Syriza and the previous governments in terms of the bailout agreements is that Syriza will be able to implement the deal from a position of popularity. The war of words the between the government and EU leaders during the negotiations stoked national pride in a country used to its politicians meekly submitting to Troika demands. Though there are doubts about the extension, Syriza is, for the moment, a popular government and was even able to call pro-government demonstrations-an almost unheard of event in Greece. Unrest is never far away though, there are already signs that the surrender to the Troika is causing disputes within Syriza and at the moment it is not clear if the deal will be put before parliament for a vote.
One reason behind Syriza's popularity is their adept use of symbolism. The first days of the new government saw a number of symbolic gestures aimed at creating the impression of a new start. For the first time a Prime Minister was sworn in with a civil oath rather than a religious one. The fences which have surrounded the parliament building for the last years were removed. The police were restrained also. When an anti-fascist demonstration took place the riot police were told to sit back and watch while demonstrators were even allowed to paint and graffiti police buses (apparently the police were left 'confused and uncertain'), at the same event last year the police beat and chased people even onto the metro lines.
The early symbolism was meant to demonstrate a break with the past but later moves pointed to a continuation of previous practices. Syriza proposed and elected Prokopis Pavlopoulos as president of the Republic. Pavlopoulos represents the old order of Greek politics, he was a high ranking member of conservative New Democracy and served as a government minister. Unforgivably he was Interior Minister during December 2008. His election represents a reconciliation rather than a break with the old order.
Away from symbolism and the Troika negotiations another of Syriza's actions has had a more positive impact. After another suicide in the migrant detention camp of Amygdaleza, a Syriza minister visited the infamously poor camp and ordered the release of those held there. A number of people have already been released from the network of migrant detention camps across the Greek territories and it is hoped more will be freed. Other measures may also remove the worst abuses migrants are often subjected to by the Greek state.
Other pre-election promises have so far been shelved or not acted upon. The fate of the controversial gold mine at Skouries is uncertain with Syriza seeming reluctant to act decisively against one of the only substantial recent foreign investments in the Greek state. As part of the bailout extension deal a number of privatisations are likely to go ahead rather than be frozen. The promised restoration of the minimum wage has to wait to 2016 at the earliest.
Syriza now faces the same challenge as that has faced by previous Greek governments, how to implement the unpopular bailouts and the attached austerity. Their current popularity, bolstered by various symbolic gestures, will aid them in the process. But after having spent so long waiting for Syriza to end austerity, the Leftist's swift climb down will disappoint many. On Thursday night a few hundred protesters marched through Athens and clashed with police in the first small scale riot under Syriza. While insignificant in themselves, the clashes show that not everyone is following Syriza's path.
Friday, 27 February 2015
Greece, Syriza’s predicted climbdown
As many of us who have been around for a while and were not swept up in all the excitement of a so called leftparty gaining power in Greece will have thought this recent news of a Syriza sell out comes as no surprise to us.
We take no joy in this and in fact will only serve to boost the right who will play on this.
“We won the battle, not the war,” declared Alexis Tsipras on February 21 after the euro group decided to extend the bailout deal for another four months. This was conditional upon the Syriza-led government submitting economic and other ‘reforms’ deemed acceptable to its creditors (especially Germany).
Neither part of the Greek prime minister’s statement is true, of course. Athens blinked first, as was always going to be the case, and decisively lost the battle. And you can confidently predict that the isolated Syriza government will lose the war as well: the enemy is too big. Yes, the new deal may have averted immediate bankruptcy and a potentially catastrophic ‘Grexit’, but the country remains locked into austerity. Still at the tender mercies of the despised European Commission-European Central Bank-International Monetary Fund troika (even if they are now officially called the “institutions”).
Now that the deal has been signed, with the troika (sorry, institutions) due to deliver a more detailed verdict by the end of April before the last tranche of €7.2 billion can be paid out, only the most deluded can fail to see that the agreement constitutes a headlong retreat from the Thessaloniki programme first presented last September - which itself represented a significant watering down of Syriza’s original radical goals (eg, nationalisation of the banks was dumped). The manifesto or “national reconstruction plan” was based on four central pillars: “confronting” the humanitarian crisis; “restarting” the economy and promoting tax justice; a “national plan” to regain employment; and “transforming” the political system to “deepen democracy”.1 At the wider, European, level, the programme demanded a European “New Deal” of large-scale public investment by the European Investment Bank, extending quantitative easing by the ECB and a conference for the reduction of Greek and southern European debt modelled on the London Debt Agreement of 1953.
Rather unfortunately, Tsipras stated at the time that the programme is “not negotiable” - when in reality it has been negotiated out of existence. Relatively minor concessions aside, such as a possible reduction in the primary budget surplus2 and some theoretical leeway to propose his own fiscal/economic policies (which can be rejected at any time), the Syriza government has agreed to conform to the bailout, not buck it - let alone reverse or overthrow it. If that is a victory, then one dreads to think what a defeat would look like.
Pie in the sky
Thus the six-page letter signed by finance minister Yanis Varoufakis rowed back on virtually all the campaign pledges - he may be erratic, but he is definitely not Marxist. What Syriza originally wanted (there is no reason to doubt their sincerity) was the complete overhaul-cum-cancellation of the bailout and its onerous austerity terms; no more ‘supervision’ from the hated troika; reduction in the debt owed to the rest of the euro zone and a profits transfer from the ECB’s sovereign bond purchase programme; substantial easing of the requirement for Athens to indefinitely run large budget surpluses; an increase in the statutory minimum wage from €530 a month to €751; and, of course, an end to all privatisation programmes.
What Syriza actually consented to, however, was an extension of existing bailout terms and conditions; some minimal reforms to supposedly address the humanitarian crisis (like food stamps), so long as they have no “negative fiscal effects”; a commitment to work in “close agreement” with its creditors (ie, the troika/institutions); maintaining current privatisations and “improving” the terms of privatisations that are not yet launched; the reduction/rationalisation of benefits, whilst keeping the public-sector wage bill to its current level; no debt repudiation or write-off, but a conditional promise of future transfer of central bank bond purchase profits to Athens; reduction in the required 2015 budget surplus from 4.5% to 1.5% (still harsh in a depressed economy); and the reintroduction over time of some form of collective bargaining, and no “unilateral” or “one-sided” changes to economic policies and fiscal targets - meaning minimum wage and other spending pledges are up in the air. Syriza also agreed to abandon plans to use some €11 billion in leftover European bank support funds to help “restart” the Greek economy.
Then, of course, we have the vague and maybe unfulfillable promise to ‘crack down’ on the oligarchs and criminals - drawing up a €7.3 billion ‘hit list’. In this manner, we are told, the Greek government hopes to gather €2.5 billion in tax receipts from the fortunes of powerful Greek tycoons - and a similar amount, apparently, would be drawn from back taxes owed to the state by various individuals and businesses. A clampdown on illegal smuggling of petrol and cigarettes would yield another €2.3 billion for government coffers, we discover.
Frankly, this is wildly optimistic. Obviously, such measures - assuming they ever happen - would not generate anywhere near the revenue expected or hoped: the oligarchs’ money has long left the country, relocated to London or New York. The only option, if you were serious about getting the money, would be to confiscate their assets - but clearly that would be to violate EU law and therefore will not happen. The Tsipras leadership would not risk getting kicked out of the EU.
What we now have is austerity in the colours of Syriza, which was inevitable, once Tsipras et al agreed to form a government (unless they wanted to ‘do an Albania’, of course). Germany and its close allies were never going to consent to any form of debt relief or repudiation, as that would set a dangerous precedent - sparking rebellion across Europe. Expressing this worry, one of Schäuble’s senior officials told the Financial Times: “If we go deeper into the debt discount debate, there will be no more reforms in Europe. There will be joyful celebrations in the French presidential palace and probably in Rome, too, if we go down this path.” In other words, what Germany is really worried about - quite understandably from its own point of view - is that the austerity regimes imposed on Ireland, Portugal, Spain and Italy could unravel. The latter country, it goes without saying, is too big to fail - if it did, that would be the end of the euro zone.
Now, you might have dreamed that Tsipras and Varoufakis were playing a highly sophisticated and devious game - master chess players. Knowing full well that they could not scrap or reverse the bailout deal, they actually had another secret plan up their sleeve: Grexit. They would revert back to the drachma, erect stringent capital controls and nationalise almost everything, whilst developing trade links with Russia, China, Venezuela, the Brics and Mint economies4, etc. After all, only a few weeks ago, Panos Kammenos, defence minister and leader of the Independent Greeks - coalition partners to Syriza - openly mused about a “plan B” to get “funding from other countries”: eg, Russian and China.5
True, in order to do this the Syriza government would have to effectively seal off Greek society - dig deep trenches, plant endless anti-tank mines, build millions of bunkers, massively expand the secret police and construct an enormous East German-like wall around the country to stop people fleeing: about two million have already left, after all. So just imagine how many more would want to leave after drachmaisation, which would see a considerable plunge in living standards: a ‘middle class’ exodus of doctors, lecturers, lawyers, etc. Tough, sure, but at least it would have been an act of resistance.
Pure fantasy, of course. Those grouped around Syriza’s leadership never had a plan B, or even much of a plan A - apart from getting what crumbs they could from ‘renegotiating’ the bailout and doing whatever they had to do to remain within the euro/EU. But the Socialist Worker headline correctly sums up the situation: ‘New Greek deal turns the screws on Syriza’ (February 24). Unhappily, Syriza’s problems are only just beginning.
Whilst the EC was quick to support the Greek formula, both the ECB and IMF are a lot more ambiguous about the bailout extension. Christine Lagarde, head of the IMF, and Mario Draghi, ECB president, have expressed strong reservations to Dijsselbloem. Lagarde thinks the Greek proposals are not sufficiently concrete, singling out “critical” undertakings such as VAT, pension and labour market reforms and privatisation - in these and other areas, the Greek letter is “not conveying clear assurances”. For his part, Draghi complained that the pledges outlined by the Tsipras government “differ from existing programme commitments”, meaning that the ECB will have to assess whether any possible new measures or policies are of “equal or better quality” - ie, are sufficiently committed to austerity and neoliberal reforms. The troika might come back later for yet more flesh.
In his own way, Schäuble hit the nail on the head when he said that Syriza “certainly will have a difficult time to explain the deal to their voters”. He reminded radio listeners that the Greek government had told the people “something completely different in the campaign and afterwards” - hence the question now is “whether one can believe the Greek government’s assurances or not”.
Many within Syriza are far from happy. Manolis Glezos, MEP and anti-Nazi resistance veteran - who famously in May 1941 climbed on top of the Acropolis and tore down the swastika - was one of the first to slam the deal. In a withering statement he wrote: “Renaming the ‘troika’ as the ‘institutions’, their ‘memorandum of understanding’ as an ‘agreement’ and the ‘lenders’ into ‘partners’ doesn’t change the situation.” He has called for urgent opposition inside the party on the grounds that there can be “no compromise between oppressor and oppressed”. Sofia Sakorafa, another MEP - the first MP to quit Pasok over its support for austerity - and leading Syriza economist John Milios quickly endorsed Glezos’s statement.
Similarly, Costas Lapavitsas, Syriza MP, professor of economics at the School of Oriental and African Studies - and a prominent member of the Left Platform tendency - wrote a scathing open letter on his blog, outlining how “difficult” it is see how the Thessaloniki programme (which includes writing off the biggest part of the debt and scrapping the memorandum) “can be implemented through this agreement”. He went on to say that it is necessary to “give substantial answers immediately to these questions” in order to “retain the large support and the dynamism given to us by the Greek people”.6
Perhaps even more damning was the reaction from Stathis Kouvelakis, member of the Syriza central committee. He bluntly stated that “going on this way can only mean defeat”, as under the deal the Syriza government will have “no choice other than to administer the memorandum framework”.7 In turn, this will “disappoint the hopes and expectations” of those who voted for the party. He warned that Syriza could “disintegrate” and that there could be a “reconfiguration” of the current political alliances, as there is no longer any reason why pro-memorandum forces “should go on refusing to collaborate” with Alexis Tsipras. It is far from impossible, he contended, that To Potami, Pasok and even a wing of New Democracy could end up getting into bed with Tsipras - and it was “precisely” the latter that Syriza was “giving a nod and a wink to” when it chose to support Prokopis Pavlopoulos, a leading figure from ND’s centrist wing, for president (with 233 votes in favour).
This is all turning very sour very quickly for Syriza and a left revival in Europe looks badly miss judged. We all know that any government who looks to manage the system better ends up beign managed themselves by the system itself. This is no more clear than Syriza itself who is bending its programme to fit the narrative being dictated to it by te EU.
As for Golden Dawn and other far-right formations, their attitude is totally predictable - Tsipras is a national traitor like all Marxists and communists: look at how they have betrayed the country. Greece will continue to be polarised between the far right (maybe including sections of the Independent Greeks) and the far left: the centre cannot possibly hold. Under such crisis conditions, it is not entirely inconceivable that the EU will sponsor some sort of coup - whether militarily or constitutionally. Perhaps attempt to get a technocratic government installed, as in Italy.
All this demonstrates the folly of tying yourself to the Syriza flag, as Left Unity stupidly did - making it a sister party and so on. Even worse, forces within Left Unity in the UK are now talking about an “anti-austerity alliance”, using Syriza as their model. Complete madness, when you consider that the Syriza government is now committed to implementing its version of austerity - lite or otherwise. Talk about shooting yourself in the foot.
http://weeklyworker.co.uk/worker/1047/austerity-in-the-colours-of-syriza/
with thanks to quotes from the weekly worker at
http://weeklyworker.co.uk/worker/1047/austerity-in-the-colours-of-syriza/
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Thursday, 13 June 2013
A split ruling class
From how I see it the ruling class nationally and internationally is split. More or less down the middle anyway on how to react to the crisis of their own capitalist system.
Do they go for growth or austerity? It is something which features heavily within the European Union as also with intervention from the IMF
The IMF echo’s America’s calls for growth but on what basis it doesn’t make clear. Clearly we live in a time of global economic melt down with no sign of a way out of the present crisis that anyone can see.
Even China has seen its growth rates cut by the World Bank today too.
There have been concerns whether China can sustain its high growth rate amid a global slowdown
The World Bank has cut its growth forecast for China amid warnings of slower but more stable global growth over the coming months.
The bank now expects the China to grow 7.7% in 2013, down from its earlier projection of 8.4%.
It also cut the forecast for global economic growth to 2.2% from 2.4%.
The bank said growth in China, the world's second-largest economy, had slowed as policymakers look to rebalance its growth model.
Over the past few decades China has relied heavily on exports and government-led investment to boost its economy.
However, a slowdown in key markets such as the US and Europe has seen a decline in demand for Chinese exports, prompting concerns whether China can sustain its high growth rate.
This is not just a case of world governments being split and undecided to what to do but whole sections of the bourgeoisie who are finding themselves torn further and further apart on solutions for the crisis.
Also take the example of Europe with some parts of the bourgeoisie wanting to make a hasty exit from the EU in order to boost our own competitiveness in terms of pushing down wage labour even further than possible at present whilst others warn against leaving and attack the others for even daring to suggest a exit.
The euro zone does not work. No measures have been introduced in order to make it work. In any economic union of the kind that was being envisaged, it is obvious that there will be some areas that are richer and some that are poorer. There will be some areas that import more from the richer areas and vice versa. You will consequently find an economic balance that will reflect itself in a series of economic data. Unless the richer areas are prepared to accept that, as in the US, the centre must in some way or other assist parts of its union - with the richer areas in effect subsidising the poorer areas - then it simply cannot work. This is all rather obvious and many people have been making this point for some time.
The overall result of these differing viewpoints amongst the bourgeoisie is a muddle. Whereas it is actually possible to get out of the present downturn, that will not happen, because ultimately this would be tantamount to suicide on the part of the capitalist class.
Its difficult to know which way the bourgeoisie will turn next there’re signs of a heightened turn towards protectionism in protecting your own markets with the recent flare-up of solar panels with the EU and China. I am thinking we may see more incidents like this when nations and economies start to get desperate to restart growth further and further desperate measures may be attempted. In Japan right now they are trying a plan which is noted by many economists as radical and risky so waiting to see how that one turns out will be interesting too.
What is clear though is that we are in a log jam across the world. No country, government or organisation has the magic formula for getting out of this crisis and many expect things to get a lot worse before they get better. Something will have to give eventually as jams in the system cannot last forever. Watch this space for heightened tensions between global super powers in order to deflect the blame for a lack of growth in their own country on others.
A split ruling class as Lenin once said is just one part of a successful revolution. The other parts were a middle class also awake and not sure which way to turn in support of the capitalist or the working class. Lastly a mass revolutionary party which we are far from in any country in the world. Things are just hotting up. Our time may come soon. We must prepare for all eventualities.
Monday, 20 May 2013
Tories tearing each other apart of Europe
The crisis in the Tory party grows ever deeper with sharper and sharper comments being exchanged from back bencher to back bencher from cabinet ministers now coming out and breaking ranks to support a referendum on the EU David Cameron will have a tough job on his hand to quell descent over his leadership or lack of.
Europe has always been a dividing issue for Tories many do not wish to be dictated by some faceless bureaucrats in Brussels and detest the red t ape of the EU and all the laws they have no say over.
Yet on the other side the business world the other part of the ruling class are worried and are jumping up and down worried that we may actually end up leaving the EU damaging business and trade.
So this issue the ruling class in Britain really are split more so than most other issues it would seem.
Even President O’Bama has weighed in saying the UK should remain part of Europe as they find it easier to do business with one block rather than several different nations. No doubt their interests go deeper than this with economic benefits being high on the agenda.
But the way the Tories are hammering each other over Europe and pressuring David Cameron to go for a referendum is very interesting to see. For many years it’s been a divided and faction riddled labour party we all remember the famous spats between Tony Blair and Gordon Brown and their people who couldn’t work together now its Cameron being marginalised in his own party as minister after minister decries his lack of leadership and support for a referendum for Britain.
Let’s be clear though the Tories do not want this for the so called national interest it is all about their own pure class interests all along. The fear of having the city of London dictated to by Brussels over a financial transition tax and more regulation worries their banker friends and there donors as a result.
The Tory party is so interwoven within the city of London now that any event that happens in the city and in government affects the other so acutely now.
It is to the Tories detriment that they rely so heavily on the city of London for their backing which has backed them into a corner on this issue. Where in the past they would receive backing from more industrial capitalists now they rely solely on the financial sector.
This will continue to play out right up until the general election. With a threat that it may tear the coalition apart with the Lib Dems still refusing to back a tin out referendum this will heighten tension between the coalition partners who are drifting further and further apart all the time. Deliberately maybe the closer we get towards the next election they will want to make themselves separate as much as they can but we all know they are tied on the main policies of cuts, privatisation and austerity.
The issue of Europe won’t go away and with UKIP gaining more influence this will only grow. How the Tories play their hand now with a declining support now in the polls will be interesting to see. No doubt they will try and tack right play on the immigration card as much as they can and increase the divide and rule they use so effectively.
The question for the working class is how we fight back.
Labour has clearly shown they are no alternative to cuts and misery so we need a political alternative.
TUSC looks to lay down an early marker of a marker for a new workers party with anti cuts candidates standing across the country. This is just a start but is an important start none the less.
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Tuesday, 14 May 2013
Understanding UKIP’s influence on politics
today
there seems to me to be a strong urge to state how insignificant UKIP’s chances are in the parliamentary elections they tell us UKIP who currently sit on 18% in the national polls who also received 25% a quarter of the vote in the county council elections last week does not matter.
They state that the nearer we come towards the general election providing the government doesn’t fall beforehand and well who knows with the Tories currently tearing themselves apart over the EU.
But this is to completely miss the point UKIP for now have a mass media presence on news channels political chat shows and being interviewed allot. This makes them already significant in the eyes of the media and is a good choice of weapon for them at this stage.
The ruling class is torn as we know there is no consensus in what to do to solve the economic crisis they have tried almost everything and have gone back to austerity as a default now.
With UKIP holding so much influence within the media no doubt their say will set the agenda for Tories and new labour with the anti immigrant rhetoric stepped up. We are already hearing calls for Ed Miliband to take a tougher stance on welfare from some parts no doubt UKIP play their part in this pressure too.
But as the calls for an EU referendum grow louder and louder from the Tories back benchers and the UKIP poll rating staying at a steady high teen’s level they will begin to set the boundaries of the political debate in this country.
Nigel Farage who was a stock broker for many years and a Tory even up till 1992 when John Major signed the EU treaty at Maastricht... which lead to many of the UKIP’s positions today 1992 was in a way the year zero for them. Everything since has made their skin crawl with the EU and the red tape. The regulation over trade is something which gets to them and their big business and even small business friends.
But it is true that UKIP do have influence in politics today even if they do not have any seats. They do however now have many county councillors which will see how they cope with local democracy I predict not so well but in other ways this could also strengthen their base at a local level by pointing to actual policies they have carried out for people.
Much like with the BNP they got local people on side by saying simple things they can do for people getting hedges cut roads resurfaced things like this which may appear small are incredibly popular with the folk in the shires too.
A typical fascist tactic too is something we’ve seen in Greece now with Golden Dawn who is administering food at food banks now to only Greeks and turning away so called foreigners and immigrants. This strategy whilst providing fascist and anti immigrant propaganda is a way of getting people on side and I can see being a tactic of the far right in this country too in the future providing a service which the state no longer does whilst offering you a deep message of hate for other people be them disabled, benefit claimers, poles etc etc you can imagine it now.
But what is for certain UKIP’s populairist right wing nationalist politics are a sign of this crisis despite being around before the economic crisis but finding much more of an echo now in darker times.
I can’t ever imagine UKIP being a party of government but when the ruling class is desperate they can take decisions which are not always in their most obvious interests at first. UKIP are certainly a useful tool for the ruling class right now who may also want to cut across any protest vote going to a left wing alternative too they can channel anger into UKIP and fuel and deepen divisions further this way too.
Be aware of UKIP but don’t over play their threat to the left still needs to get its act together in Britain but also by UKIP’s rise this may jolt some into speeding up that process. We will see.
Thursday, 25 April 2013
Cyprus standing on the edge of the abyss
Socialist policies needed to resolve crisis in the interests of majority
By Niall Mulholland, CWI
Niall Mulholland, who recently visited Cyprus, looks at the disastrous consequences of the Anastasiades government’s bailout deal with the Troika, and the alternatives put forward by the Left.
The weather in Cyprus at this time of year is warm, with a refreshing breeze blowing over the island. The same pleasant balance cannot be said about the economy, which is in meltdown.
Cypriot society is in a state of shock after weeks of economic and political turmoil. Cypriot banks faced collapse after a steep fall in the value of Greek government bonds, many of which were bought by the Cypriot banks. This was linked to the savage bail-out package imposed on Greece by the Troika.
In March, the Cypriot government, led by President Nicos Anastasiades, agreed to a 10 billion euro bail-out package with the Troika (the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF), after the Bank of Cyprus and Laiki became insolvent. In return, Cyprus was told it must raise 5.8bn euros. The agreement saw bank depositors with more than 100,000 euros face big levies, hitting many small businesses.
The country’s second largest bank, Laiki Bank, was closed down and its 9 billion worth of debts taken on by the Bank of Cyprus. After a two-week closure, banks reopened on 28 March but with strict controls on the amount people can withdraw each day.
But as if this was not bad enough, the already stunned and angry Greek Cypriots were later told that the bailout had ballooned from 17 billion euro to 23 billion. Cyprus has to find 6 billion more than the 7 billion mooted when the preliminary agreement was reached on 25 March.
President Anastasiades’ right wing government had already decided to impose swingeing austerity measures, bank closures, property taxes, privatisations of the three most profitable semi-state sector companies (electricity, telecommunications, and ports) and many sector job losses. They are even considering selling part of the gold supplies of the Central Bank, worth 400 million euro.
“Returning Cyprus to the Stone Age”
Adding to the country’s woes, is the long running crisis at Cyprus Airlines which is near bankrupt. The government is threatening to close it entirely or to make a deal with unions that would see a halving of the 1,030 workforce and the number of planes cut from 11 to 6. Cyprus Airline’s bleak future, along with the country’s economic turmoil, has ‘numbed’ summer tourist bookings, which is a crucial part of the economy.
Political scandal surrounds the government. Anastasiades has been forced to strenuously deny that he knew a legislative bill was being prepared for the deeply unpopular ‘haircut’ of all bank depositors prior to the European Group meeting in March. Popular anger is aroused by reports that insider information enabled the rich to take out millions of euro from bank deposits before 15 March.
Officially the Cypriot economy is due to fall by 8.7% this year and by 3.9% in 2014. But many economists believe there will be a 10% fall in 2013, and a plummet of anything between 15-25% by the end of next year.
“Returning Cyprus to the Stone Age”, is how one commentator dramatically described the next months. Certainly people are finding their standard of living increasingly precarious. The government was recently forced to provide an emergency 3 million euro to small famers, whose livestock were starving due to the sudden bank credit restrictions. More people are switching from cars to (poor) public transport to save money. On weekends, instead of heading for the cooler mountains, families are now opting for the cheaper alternative of strolling along Nicosia’s ‘old town’, where they linger for hours over a single coffee or soft drink.
Even sporting events are hit hard by the economic crisis. One of the main football clubs, Omonia, is in financial crisis and facing a sudden withdrawal of sponsorship.
The government tries to dampen popular opposition to austerity by claiming the measures will not be as harsh as previously planned because some privatisations will be pushed back to 2018, there will less cuts in education and the repayment of the bail-out loans will start after 10 years and will take 12 more years (in total, Cyprus will, in effect, be under the control of Troika for the next 22 years).
But this is cold comfort to the working class and middle classes who face years of austerity, job losses or emigration. Unemployment is already sitting at 14%. ‘Social markets’ (modern soup kitchens) are springing up everywhere. Working people also expect that, like Greece, the Troika will be in Nicosia every few months, demanding a new wave of cuts in return for bailout conditions.
‘Worst since 1974’
The newspapers are full of despair. It is generally felt that the crisis is the worst since the 1974 Turkish army invasion. There is understandable widespread outrage amongst Greek Cypriots at the bailout conditions and a perception that, once again, small Cyprus is, de facto, under neo-colonial rule; this time from the Berlin government, in the interests of German capital and for electoral gain. But sometimes this outrage in Cyprus takes a potentially divisive, nationalist direction. Marios Leonida Evriviades, a professor of international relations at Panteion University in Athens, wrote about the “econcide” (destruction of an economy) and “Cratocide” (destruction of a state) imposed by Chancellor Merkel’s government in Berlin, and compared it to the Nazis’s annexation of Czechoslovakia in 1938. He went on to talk of “Nazi-sympathizing Turkey” confiscating private property in 1942.
The trade unions and Left needs to ensure they lead mass struggles against austerity or there is a danger that nationalist forces and even the far right will gain the initiative.
This needs to include deepening relations with working people in North Cyprus, who have suffered their own austerity cuts for years, as well developing common struggle with the working people in other countries of southern Europe that are hit by the Troika’s austerity policies. Otherwise the two right wing administrations may try to whip up nationalism on either side of the Green Line, diverting the class interests of the whole island’s working people.
So far, apart from organising some protests during the March crisis, the unions have given no real lead to working people. The right wing unions are in talks with the government about ‘managing’ the crisis. The Left unions, linked to AKEL (Greek Cypriot communist party), rhetorically oppose cuts but do not call for any firm action.
Members of New Internationalist Left (CWI Cyprus) participate in a broad campaign against austerity initiated mainly by forces affiliated to AKEL, the ‘Movement Against Privatisation and Austerity’, but criticise its lack of a fighting programme to effectively oppose austerity and for a real alternative. One leading figure in the campaign claims that there is “no need for a programme – we are a movement”.
But the economic crisis is deep and will only get worse. A radical alternative must therefore be posed. If the unions and Left fails to resist effectively, other populist, nationalist ‘anti-austerity’ campaigns can make headway. Ominously, Cypriot fascists, who are trying to emulate their cousins in Golden Dawn, in Greece, are now handing out anti-austerity leaflets in parts of Nicosia where they previously did not venture. These people can be a grave threat to immigrants and the Left. They must be resolutely opposed by a united workers’ movement that campaigns against the poison of racism and ultra-nationalism and for jobs, with a living wage, for all.
Referendum call
AKEL has called for a referendum, to allow the people to accept or reject the bailout deal. This was also taken up by the small Green party and an independent candidate in presidential elections held at the start of 2013. While the demand for a referendum gained an echo amongst some workers and youth who were furious at Troika-imposed austerity, it appears to have declined in recent weeks. AKEL and the former presidential candidate, Lilikas, both now put their hopes in the parliament rejecting the memorandum. However there are groups still collecting signatures in an attempt to force a referendum.
There is little possibility that the present government will opt for political suicide by calling a referendum on the bail-out deal.
In truth, AKEL’s campaign for a referendum is largely token and used by the party leadership to avoid other issues. In government until recently, AKEL cultivated a friendly relationship towards big business, the banks and the Russian oligarchs who spirited billions into Cypriot banks, preparing the ground for economic bust. In recent weeks, heightened government propaganda warning that there is no ‘Plan B’ and that leaving the euro and returning to the Cypriot pound currency would see the country “go back centuries”, is used to try to counter the popular call for a euro-exit. Nevertheless the issue remains live and can gather more force once austerity starts to bite deeply AKEL will unveil next week its proposals on how to leave the euro. Economists regularly appear on TV discussing a euro-exit. The influential Greek Cypriot Archbishop also raised the prospect of Cyprus leaving the euro-zone. This is in marked contrast to other euro-crisis countries, like Greece and Ireland, where although there is huge opposition to austerity most workers are fearful of leaping into the ‘unknown’ of euro-exit. Cyprus, however, only joined the euro-zone in 2008, at the start of the currency’s crisis. Cypriots therefore associate euro membership with seemingly endless financial turmoil, extreme austerity and looming slump.
Euro-exit?
But the New Internationalist Left warns that, on the basis of the continuation of the capitalist system, breaking from the euro and a return to the Cyprus pound will not mean refuge from austerity and stagnation. Certainly exiting would allow devaluation of the Cyprus currency but the boost to exports would be limited, given Cyprus’s lack of materials to sell abroad (the much-vaunted discovery of oil and gas supplies off Cyprus’s shores are years away from possible exploitation and the industry will be dominated by multi-national companies in the interests of their major shareholders). Currency devaluation would also result in a rise in import costs and therefore a hike in the cost of living. This ‘imported inflation’, along with likely government attempts to deal with paying off national debts by printing money, would cut into people’s savings.
Apart from the New Internationalist Left, none of the rest of the Left puts forward a clear, class-based analysis to the crisis or a socialist programme for change. Inevitably various ideas are temporarily fashionable at this early stage of the economic crisis and impending class confrontations. Some look to a ‘co-operatives’ based economy as an alternative, for example.
Unlike Greece, which, in effect, has suffered 28 years of austerity, many Cypriots are unprepared for the very hard landing ahead after years of economic boom. But looming class battles will radicalise more and more Cypriots in the next months and years.
In anticipation of coming struggles, the New Internationalist Left puts forward a socialist alternative. This includes repudiating the debt, nationalisation of the banks under democratic public control and management, opposing privatisations, breaking with the bosses’ euro, and for the public ownership of the key industries and major utilities, to enable the economy to be democratically planned to serve the needs of the majority, not the profits of bankers and the speculator minority.
All this immediately raises the prospect of Cyprus being forced out of the eurozone and even the EU. A workers’ government needs to plan to deal with exit from the euro and for a return to a national currency (the pound) while countering any illusions that this could provide a solution on the basis of capitalism. Adopting a new currency must be incorporated as part of a socialist programme. The struggle for the socialist transformation of society is just as relevant for Greece, Portugal, Spain and other euro-crisis countries, and beyond. A socialist federation of European states, founded on an equal and voluntary basis, is the only way to fully realise genuine co-operation amongst the working people of Europe and the utilising of the rich resources of the economy for the benefit of the great majority. This is particularly the case for small Cyprus.
A new powerful Left needs to be built in Cyprus, with the aim of forming a government based on the needs of working people. The situation facing Cypriot society is desperate and set to get much worse. Only a bold, socialist, internationalist programme can resolve the crisis in the interests of the majority.
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Friday, 29 March 2013
Answering workers fears on immigration
The Con-Dem government grows more unpopular by the day. Endless austerity is combined with falling living standards, rising unemployment, and no prospect of a return to economic growth.
If anger at austerity was harnessed into a mass, united movement the Con-Dems could be forced to call a general election within months.
Tory Prime Minister David Cameron knows this. Desperate to creep up a few points in the opinion polls, under pressure from the Eastleigh byelection result of right-wing nationalist Ukip, Cameron is attempting to tap into many workers' concerns about the potential consequences of increased immigration. This is an attempt to divide the movement against austerity.
The trade union movement needs to respond by launching a serious united struggle - starting with a 24-hour general strike - against those who are really responsible for the misery we face; this government of millionaires and the capitalist system it defends.
Trade unions must warn that the Con-Dems will attempt to use limiting access to public services for immigrants as the thin end of the wedge to attack universal access to essential services and benefits.
However, the trade union movement also has a duty to answer the fears of some workers about increased immigration.
Over the last decade there has been a rapid increase in the number of people, mainly from other parts of the EU, who have come to Britain to live and work.
This is a major factor in the increase of around two million in Britain's population in the last five years.
A small minority of new arrivals in Britain move to wealthy areas like Kensington and Chelsea - but they are almost all foreign fat cats and Cameron is more than happy to hobnob with them.
The vast majority of new arrivals, however, join the ranks of the poorest sections of the working class.
Increased population density has overwhelmingly taken place in working class communities with already over-stretched public services and over-crowded housing.
Against this background it is inevitable that tensions exist about who does, and does not, get the limited public services that are available.
It is on the question of housing that these tensions are particularly acute. By declaring that EU immigrants are to be kept off housing waiting lists for at least two years, Cameron is encouraging the idea that people from other countries are taking a disproportionately large share of social housing, and that this is causing the current acute housing crisis, where over five million people are on the waiting lists.
Is this true? Increased population has increased demand for social housing, but it is the complete absence of any other option for millions of people born in Britain that is the central reason for the increase in numbers wanting a council house or flat.
Cameron is attempting to shift the blame for the housing crisis away from its primary cause; the profit-driven housing policies of current and previous governments.
House prices have gone up 40 times since 1971 whereas prices in general have gone up tenfold while wages have mostly stagnated.
This means home ownership is now out of reach for the majority. At the same time rents in the extortionate private rented sector have increased by 86%.
But social housing is in incredibly short supply. Twenty years ago there were more than five million council homes, now there is barely half that number.
If the Con-Dems get their way even these will have their rents raised to extortionate 'market' levels.
New Labour in government also continued the previous Tory governments' policies, selling off even more council houses than Thatcher. A puny 2,019 council houses were built during New Labour's entire period in government, an average of 400 houses a year!
Contrast this to 5,000 council houses - all with front and back gardens - that just one Labour council - in Liverpool from 1983-87 - was able to build when it stood on a socialist programme.
Labour leader Ed Miliband has stated that Labour 'got it wrong' on immigration, but why doesn't he admit that Labour 'got it wrong' on housing? Labour would be elected on a landslide if Miliband was to pledge that the next Labour government would carry out a mass council house-building programme, to create high-quality, genuinely affordable, secure housing for the majority and to provide work for unemployed construction workers on union rates of pay.
This is not unprecedented - from 1948 to 1954 the Labour and Tory governments built an average of 240,000 council houses a year.
However, Labour today, wedded to big business, will never implement such a demand. The Socialist Party calls for the organised workers' movement, in the form of the trade unions, to launch a mass campaign to defend and expand council housing.
This could unite existing tenants and the five million people on waiting lists by demanding decent housing for all, regardless of their ethnic or religious background.
At the same time we recognise that, particularly given the current lack of supply, the lack of an open, democratic and accountable system of allocations, which would be accepted by most workers, increases anger and suspicion that housing is being allocated unfairly.
Cameron is whipping up this feeling in relation to migrants from other EU countries, who are in fact already only allowed to apply for social housing if they are currently in work, or have been in continuous work for at least the previous 12 months.
And that is only for the right to apply - the current acute shortage means that the vast majority of applicants for social housing languish indefinitely on a waiting list.
Statistics indicate that only 0.9% of social housing allocations have gone to workers from Eastern Europe.
This is largely because, to actually get social housing, particularly in London and other areas with a severe housing shortage, it is usually necessary to not only be homeless, but also in priority need - that is pregnant, with dependent children, or vulnerable because of old age or illness.
The mainly young economic migrants from EU countries rarely qualify. Nonetheless, there are of course cases where homeless families who are new to an area, sometimes refugees fleeing war, famine and persecution, are housed above families living in severely over-crowded conditions that have been on the waiting list for many years.
While it is the extreme lack of council housing which is the root cause, leading to a choice between housing the homeless and the 'merely' desperate, this inevitably creates resentment among those who do not get council housing against those who do.
The Socialist Party believes that the right of families to be housed in the same community is an important one.
The policies of this government and Labour councils are annihilating this right; forcing desperate families to move hundreds of miles from family and friends for social housing.
The struggle to achieve it has to be linked to both the fight for a mass council house-building programme and for the democratic control of the allocation system.
Decisions should be taken on the basis of need, including the right to be housed near relatives and friends, not by council officials, however, but by elected representatives of local community organisations, including tenants associations, trade unions, elected councillors and other community campaigns.
The workers' movement needs to take the same kind of class approach to other aspects of the government's attempts to increase divisions between immigrant and non-immigrant workers which are, unfortunately, being echoed by Labour.
The Tories hypocritically claim that immigration is undermining 'the British way of life' but it is the government's driving down of workers' living standards that will ruin our way of life unless we fight back.
Miliband has been forced to recognise belatedly that over the last decade big business in Britain used super-exploited migrant workers to lower wages for all workers.
His proposals to prosecute more employers who pay less than the minimum wage are welcome. There have only been seven prosecutions since it was introduced 14 years ago, and for the first ten years of New Labour government not a single successful prosecution took place!
Miliband should also pledge immediately to increase the minimum wage - to at least £8 an hour - a living wage rather than starvation rations. This would lift millions out of the benefit trap.
But if Miliband was serious about stopping the race to the bottom he would be calling for all workers - both non-migrants and migrants - to join a trade union and organise together to win decent pay and conditions.
This is the only way to effectively combat the employers' relentless attempts to drive down the wages of all workers.
Instead Miliband, like Blair and Brown before him, has opposed workers striking to defend their living conditions and has made no pledge to repeal Britain's vicious anti-trade union laws.
Unfortunately there is no possibility of Labour adopting even these minimal policies. Under Miliband, as under Blair and Brown, Labour remains a party wedded to capitalism.
Miliband is not willing to even vote against slave labour Workfare schemes. Promising to reverse the Tory-Lib Dem cuts is too much for him to stomach.
That is why the Trade Unionist and Socialist Coalition (TUSC) is beginning to lay the foundations for the creation of a powerful electoral voice for working class people.
TUSC brings together trade unionists, including the transport workers' union, the RMT, and socialists, including the Socialist Party.
TUSC stands in elections in opposition to all cuts in public services, and to fight for the kind of policies outlined in this article.
Socialists stand for workers' unity, explaining that the only way to effectively prevent big business's attempts to drive down wages is by uniting workers - non-migrant and migrant - to fight for everyone to get decent pay and conditions.
With most taken from
http://www.socialistparty.org.uk/issue/758/16390/27-03-2013/cameron-whips-up-immigration-fears-to-divide-movement-against-austerity
Wednesday, 27 March 2013
Is Italy’s 5 star movement something we could or should follow n the UK ?
With the emergence of a new formation based on the characture of Italian comedian Bepe Grillo gaining a very respectable vote in the recent Italian elections made many on the left in the UK sit up and take notice.
In the CWI we’d known about this rising movement for a year or so now with our comrades in our Italian section explaining what he and his followers wereall about at last years CWI euopean school in Belgium. I don’t hink any othr left grouping has anything like the CWI does on a international scale at present.
The CWI currently has operations and comrades in over 40 countries on every continent in the world. Not only are we trying to build our sections there but it also gives us invaluable insight in to the goings on in those countries and various movements there detailed on our fantastic website
www.socialistworld.net
Comedian Beppe Grillo and the Five Star Movement have taken centre stage following Italy’s general election in February. It is the latest, dramatic manifestation of the widespread rejection of establishment politics. CHRISTINE THOMAS of our England and Wales section writes on this new political phenomenon.
The shock result in the recent Italian elections reverberated around the world, leading to market instability and fears about the possible economic fallout. The Five Star Movement (M5S – Movimento 5 Stelle), launched by the comedian Beppe Grillo just four years earlier, emerged as the biggest single party, with more than 25% of the vote. “We channelled all the anger in society”, said Grillo, summing up this election ‘victory’ in an interview with the international press (he refuses to speak to the Italian media).
While workers and youth in Greece, Spain and Portugal have been waging general strikes and taking to the streets in their millions in opposition to a never-ending austerity onslaught, in Italy there has been relative quiescence. This is in spite of the devastating economic impact on ordinary people, with living standards falling to the level of 27 years ago. But, on 24/25 February, all the accumulated anger and dissatisfaction poured into the ballot boxes, with the M5S becoming the main beneficiary.
In packed electoral rallies in piazzas all over the country, Grillo’s cry of “tutti a casa” (send them all packing) had a particular resonance with a population sick to the stomach of the corrupt, moneygrubbing, self-seeking politicians of the establishment parties, and of the industrialists and bankers involved in scandals. With just 2% having faith or trust in political parties, more than eight million voters turned to the M5S which pledged to ‘clean up’ and ‘shake up’ the political system.
Consistent with its election pledges, the M5S is refusing at this stage to form an alliance with the PD (Partito Democratico) electoral coalition, or with the coalition of the PDL (Popolo della Libertà ), the party of Silvio Berlusconi, both of which got around 29% of the vote. The ‘grillini’, as they are often called, effectively hold the balance of power. While the immediate perspectives are unclear, if any government emerges from these elections it will be weak, unstable and short-lived. New elections are likely, possibly within months. In that situation, the M5S could even increase its support – it has already gone up three points in opinion polls to 29%.
A ‘movement’ not a party
Clearly, the Five Star Movement is a key player in the Italian political arena. But what is its character, what does it stand for and how is it likely to develop in the future? In reality, the confused, ambiguous and fluid nature of the movement makes it difficult to define. Grillo describes himself as its ‘megaphone’, because the M5S, which developed in opposition to the traditional parties, is a ‘movement’ rejecting the structures of a party and which, therefore, cannot have a ‘leader’. In actual fact, Grillo, who co-founded the M5S with Robert Casaleggio, a wealthy marketing and web businessman, has an enormous personal influence over the movement. He owns the M5S ‘franchise’ and can personally decide who can and cannot use its symbol in elections.
Grillo describes the M5S as “neither right nor left”, a “movement of ideas not ideologies”, and this is reflected in its membership, programme and electorate. The movement is mainly one of young, educated middle-class professionals. Of its MPs and senators, 24% are self-employed or small-business owners, 35% are professional/white collar workers and 15% students, pensioners or unemployed, 78% have a university degree.
The M5S votes were geographically evenly spread and came from all political parties, both ‘left’ and ‘right’. Around 25% of its electorate had previously abstained. Which parties its votes mainly came from varied from region to region. In Turin, an industrial city in the north, for example, 37% of the M5S votes came from the PD (which includes part of the ex-Communist Party), and 20% from the ‘radical’ left. In Padua, 46% came from the right-wing populist Northern League (Lega Nord). In Reggio Calabria in the south, 49% came from Berlusconi’s PDL.
The movement has a programme, voted for online by its members, but the pronouncements of Grillo in the piazzas and, in particular, posts on his blog, the most widely read in Italy, hold considerable weight. He also has a million followers on Twitter. The use of the internet and social media is central to the way in which the movement is organised, with ‘horizontal’ democracy seeking to replace the normal ‘vertical’ forms of democratic structures of elected committees, delegate conferences, etc. The 163 grillini MPs were selected online, with 20,000 people participating.
Grillo launched his blog with Casaleggio in 2005, and the first ‘friends of Beppe Grillo’ began to discuss online and organise local ‘meet-ups’ (they use the English word). Things really started to take off in September 2007 when Grillo organised his ‘V.Day’ (V standing for an Italian expletive), when tens of thousands of people queued for hours in piazzas around the country to sign a petition calling for politicians with a criminal record to be banned from holding office. The movement spread via internet and social media, and the first Five Star councillors (30) were elected in local elections in 2008. In autumn 2009, the Movimento 5 Stelle was officially launched, going on to get more councillors elected and its first mayor of an important city (Parma, in Emilia Romagna). In anticipation of what was to happen later in the national elections, M5S became the biggest party in elections in Sicily in November 2012.
Awash with corruption
The corrupt political ‘caste’ and political system are the main targets of the movement. Grillo’s comedy routines have always had a political edge to them. In the 1980s, he railed against corrupt politicians. In 1986, he was banned from public TV after a joke about the then prime minister, Bettino Craxi, who eventually fled the country to avoid charges during the Tangentopoli scandal. Tangentopoli lifted the lid on a sewer of kickbacks and corruption spanning the political spectrum, leading to the collapse and disintegration of most of the main bourgeois parties. It was against this background of political crisis that Berlusconi was ushered to power, and the Northern League began to grow, both claiming to be ‘new’, ‘fresh’ untainted forces.
Now, once again, Italy is awash with corruption scandals, undermining virtually every institution from football to the Vatican. In an international corruption league table, Italy is ranked 72nd, below Botswana, Chad and Rwanda. At national and local level, politicians of all the establishment parties, including the Northern League, and in particular Berlusconi’s PDL, but also the PD, have been found guilty of, or are under investigation for, taking bribes to give favours to friends and family members, creaming off millions of euros of public funds to finance lavish lifestyles, and a myriad of other charges. The idea, already extremely widespread in society, that they have all got their snouts in the trough, that they are all thieves, has been reinforced by these latest scandals.
This partly explains the success of the grillini. Grillo uses revolutionary sounding phraseology about sweeping away the current MPs, parties and political system. This strikes a chord, especially with young people who hold the traditional parties in contempt and see no credible, mass left/anti-capitalist alternative among the existing parties and political formations. Fifty per cent of under 25s voted for the M5S (67% in Sicily), and 60% of students.
In reality, however, the movement is proposing not revolution but democratic reform of the existing political system. This would include cuts to parliamentary salaries and expenses – the grillini representatives will only take half of their salaries, possibly less. In Sicily, the remainder of their salaries has gone to help local micro-businesses. The M5S calls for a change in the electoral law, halving the number of MPs, and abolishing the state funding of political parties, etc. The money saved, it claims, would go towards financing the rest of the M5S programme. The remainder would be financed from scrapping military spending on wars in Afghanistan and elsewhere.
Voicing deep discontent
Before the economic crisis, Grillo only really ever touched on two main issues: the political caste and the environment. The problems faced by workers in the workplace, cuts in health, education and public services were barely if ever mentioned. Even now these economic and social issues take second place to political reform. But the impact of the economic crisis has been severe both on working and middle-class people. Nearly 40% of youth are unemployed and tens of thousands of workers are on ‘cassa integrazione’ (short-time working or at home with part of their salary paid). The overwhelming majority of Italian companies are small, often family-run businesses struggling to obtain credit from the banks. A company closes down every minute.
In his ‘tsunami’ election tour of 77 piazzas, Grillo began to give voice to the deep discontent at economic crisis and austerity. ‘Borrowing’ demands from the anti-capitalist left, he called for the nationalisation of the banks, a shorter working week and a ‘citizen’s income’. He spoke about restructuring the debt and called for a referendum on the euro. The M5S programme opposes cuts in education and supports a totally free health system. It is against the privatisation of water and is for the renationalisation of telecoms.
In a context where the parties of the ‘radical left’, like the PRC (Rifondazione Comunista), have become invisible both in struggles and in elections, the fact that these issues are being raised and discussed is a positive development. The PRC stood in the elections as part of a heterogeneous electoral alliance (Rivoluzione Civile) dominated by magistrates which got a mere 2% of the vote. However, while the M5S’s reformist agenda has reflected and channelled the anger in society, it is entirely inadequate as a response to the crisis. Even if the political reforms were enacted and military spending cut, it is estimated that this would provide barely €2 billion, nowhere near sufficient to finance the proposed reforms in the M5S programme.
There are many on the left who say that the vote for the M5S is a reactionary vote. This is based primarily on comments that Grillo has made about the trade unions, public-sector workers and, in particular, CasaPound, a neo-fascist organisation. It is important that these comments and the vote for the M5S are put into context. A distinction has to be made between Grillo, the M5S and those who voted for the grillini.
A breakdown of the vote for the M5S shows that some of its best results came in areas where there have been important local struggles. In Taranto, for instance, where thousands of workers face losing their jobs due to the closure of ILVA, the biggest steel factory in Europe, the M5S got the highest vote of any party. In Carbonia Sulcis, Sardinia, where miners occupied the last pit in Italy with dynamite strapped to their bodies to stop it from closing, the grillinis got 33.7%. In Bussoleno, Val di Susa, centre of the mass No TAV campaign against a high-speed rail link, the M5S obtained a massive 45%.
Undoubtedly, in the Veneto region in the northeast, many of the grillini votes came from former Northern League voters, including small-business owners. But some of these would have voted for the left in the past and, as Grillo has shown, could be won over to a programme which included the nationalisation of the banks and low-interest credit for small businesses.
An eclectic mix of policies
If a credible anti-capitalist alternative had been on offer there is no doubt that many of the votes which went to the grillini could have been channelled in a leftward direction, as has been the experience in Greece with the rapid rise of Syriza. But this is not the case in Italy. The historic weakness and collapse of the left has created a vacuum which the M5S has filled rapidly and spectacularly. This is most definitely a complicating factor in the development of a new mass left workers’ party. But, in the absence of a viable alternative, the vote for the M5S marked an important break from the parties of austerity and a searching for radical change.
The programme of the grillini is a confused, incoherent, eclectic mix of policies reflecting its middle-class make-up. Grillo’s comments are often ambiguous and open to different interpretations. They also express clumsily the genuine feelings of many middle- and working-class people. His comments on CasaPound were not an open endorsement of fascism but a recognition of the reality that some of CasaPound’s policies overlap with those of the M5S (and even with the anti-capitalist left), and that some youth attracted to fascism could be won over to the M5S. However, many on the left interpret Grillo’s comments as being sympathetic to fascism.
The question of the character of fascism needs to be addressed – the grillini group leader in the lower house has also made comments revealing an ignorance of its real nature. So do some of the comments Grillo has made regarding immigrants: saying that Italy cannot take on all the world’s problems, and that the children born in Italy to immigrants should not be given the right to citizenship automatically. However, this needs to be done not by labelling the M5S as ‘fascists’ or in a moralistic way, but by putting forward a programme which explains how it is possible to fight for an extension of jobs, workers’ rights and quality public services for all, and how this entails challenging the economic base of society.
When Grillo called for trade unions to be ‘eliminated’ because they are ‘old structures’ like the parties, some interpreted this as an attack on unions in general. Others, including many organised workers, saw it as a welcome attack on the union bureaucracy, especially as Grillo said that, if the unions were like the FIOM (the more militant union of engineering workers) or COBAS (union of the base), things would be different. In the same speech he went on to declare that companies should belong to those who work in them.
This is consistent with the grillini support for ‘direct democracy’ over a democracy which requires intermediaries such as parties. The real issue here, however, and which has been expressed in Grillo’s praise of workers’ participation in Germany, is a denial of class conflict and the promotion of the idea that workers and bosses have a common interest in working together for the good of the economy, a position which flows from the M5S’s middle-class composition and outlook.
Conflicting pressures
In the very short term, the movement is likely to grow both in terms of members and electoral support. But very quickly the political and organisational contradictions are likely to intensify, leading to its decline and fragmentation, especially if it enters or forms a government at national level. Some reforms will be possible. In Sicily, the grillinis have blocked the building of a controversial US satellite ground station, and the same could happen with the TAV. But the weakness of the Italian economy and the ongoing crisis mean that these reforms will be very limited. The movement will come under conflicting pressures from the capitalist class, on the one hand, demanding austerity and labour market ‘reform’ and, on the other, from the working- and middle-class people who voted for it in the hope of real political and economic change.
The limits of the M5S’s reformist policies and the methods of the movement can be seen in Parma, where the mayor, Federico Pizzarotti, is a grillino. As a legacy of the previous corrupt administration the mayor inherited a budget deficit of almost €1 billion. Already the administration has started to increase charges for local services and impose cuts ‘because the money isn’t there’. The grillini were elected in Parma partly in opposition to the building of a local incinerator which, they claimed, would go ahead ‘over their dead bodies’. The incinerator has now been activated and cannot be stopped, they say, because of the crippling compensation that would have to be paid.
There is no concept of building a mass campaign among local people to demand more money for local services from central government or to stop the incinerator. While individual councillors have recently begun to go to factories faced with closure, and individual members are involved in local environmental struggles, like that of the No TAV in Val di Susa, the main M5S campaign initiatives have been limited to the question of democratic political reform.
The absence of party structures in the M5S means a lack of accountability and democratic control over elected representatives, especially at a national level. The unrest among members in Emilia Romagna and the expulsion of two councillors, including the first ever elected M5S councillor, who criticised Grillo for undemocratic methods, is a foretaste of future rebellions against the political and organisational dominance of Grillo over the movement. Already, Grillo has threatened around ten to twelve senators with ‘consequences’ for the ‘betrayal’ of voting for the PD candidate (an anti-mafia magistrate) for president of the Senate, causing uproar among the movement’s members in blogland. As the political and organisational contradictions emerge this will open up space for discussion about the need for an anti-capitalist political party based on the workers’ movement and on struggle.
The M5S represents a new and important factor in a situation of political, economic and social crisis. An analysis and understanding of the character and the weaknesses of this movement is necessary but is not, in itself, sufficient. Those on the left in Italy need to engage politically with the grillini and their ideas and, most importantly, with those radicalised workers’ and youth who voted for them as part of the process of building a real working-class alternative to the capitalist system.
Thursday, 8 November 2012
Greek parliament pass’s more cuts, how much more can the working class take?
With last nights vote by the Greek government passing another austerity package to receive their next round of bailout funds many are asking how much more can Greece take and more specifically how much more hardship can the working class take.
This week the Greek working class turned out for their 21st general strike since the financial crisis hit back in 2008. There doesn’t look to be any end in sight.
But things in Greece are happening very quickly and events are unfolding all the time. Things are changing on the ground as well as on the left. Below I republish an interview which was conducted recently with a member of the Greek section of the CWI Xekinima (Greek CWI
An interview with Paris Makrides, Xekinima (Greek CWI)
Yesterday was the first day of another 48 hours general strike. How big was the strike and protests of the Greek workers and youth?
The strike paralysed Greece completely. Athens was like a deserted city as nothing moved except the demonstration of the striking workers. Not only workers were on strike but small shopkeepers as well, even taxi drivers, who together with the strike in public transport paralysed Athens entirely. The picture was similar in every other city of Greece.
The numbers on the Athens strike demonstration however were not that big, due to the lack of transport; workers and youth had no means of getting to the centre of Athens other than by foot. Despite this, we estimate that 30,000 to 40,000 people were on the streets of Athens.
Today’s rally at Syntagma Square, which is intended to encircle the parliament building, where MPs will be voting on the new (third) Memorandum [new austerity measures at the behest of the Troika] at 5.00pm, will probably be much bigger. But there is always an element of uncertainty, as the broad population, including workers and youth, know that most probably there will be violent clashes largely between anarchists and provocateurs (secret police agents), on the one hand, and the riot police, on the other hand. These clashes turn away the mass of the population from taking part in the demos. If this element did not exist, we can safely say that this afternoon one million people, if not more, would be on the streets of Athens surrounding Syntagma Square.
What does the new, third ’Memorandum’ mean for the Greek people?
The third Memorandum will be a disaster, added to an economy and society already devastated by the two previous Memorandums.
According to estimations of the Troika [European Union, European Central Bank and International Monetary Fund], Greece’s GDP will be reduced for a sixth consecutive year. And public debt, notwithstanding the austerity measures that have been adopted these last years and “haircut”, for 2013 will reach 346 billion € (189% of GDP) increased by 66 billion since last February!
Over the last years, Greek people have paid much higher taxes, have see their wages slashed, unemployment has reached 24% and youth unemployment 55% (these are the official figures). Public health and education have been destroyed and public services and companies privatized and sold off for peanuts. But European and Greek capitalists have no interest in the terrible social effects their policies are having.
The third Memorandum contains new cruel austerity measures, such as increase on the retirement age to 67 years, massive dismissals of public employees, more taxes, greater so-called “flexibility” concerning labour relations and privatisations. And it is clear this will lead to more social misery and catastrophe, just like the earlier Memorandums.
How do you explain the fact that despite all this huge mobilisations of the Greek people, the Troika is still able to apply its anti-working class policies?
The Greek people’s struggles over the last two years have been massive. People understand that they have to do something to stop the Troika’s policies. So they participated in general strikes, refused to pay taxes and occupied squares. People want to resist and fight. On the other hand, the trade union leaderships don’t. These leaderships don’t want to overthrow the government because they are tied with the government parties.
The parties of the Left support people’s demands but do not have a plan about how the capitalist’s policies will be stopped and how the government will fall. SYRIZA (Coalition of the Radical Left) recently called for new elections. But elections are not the Left’s primary field of battle at this moment. What is necessary is an indefinite general strike which, of course, will raise the question of power in society – who decides, who controls and who manages the economy and society. This is the only way to go forward, to overthrow the government, and to pave the way for a government of the Left which will be based on worker’s power, through democratic rank and file committees and assemblies, in every workplace, neighbourhood, university and school etc.
Is the huge anger of the Greek working class reflected inside the trade unions?
The role of the leaders of trade union is absolutely exasperating. But whatever they do they cannot stop the class struggle. People are outraged with the Troika’s policies. This anger has pushed several rank and file unions and union federations to call the GSEE and ADEDY (the private and public sector trade union centres) for an indefinite general strike, as the only reply that corresponds to the scale of government’s and the Troika’s vicious austerity attacks.
However, the GSEE and ADEDY refused to call an all-out general strike (which was to be expected) and the unions calling for this action did not try to take the next necessary step, which is to co-ordinate actions between themselves; to prepare for and set a day of strike action and to call on the rest of the union movement to come out in coordinated, indefinite strike activity. We are convinced that such an initiative, given the explosive mood in Greek society, would trigger an avalanche of class action and would push aside the official union federation leaderships. Militant, mass industrial action, as described, could maximize workers’ mass pressure against the government and Troika and give society with a perspective to defeat the attacks.
But what really infuriates working class people and drives them “mad” is that often breaks on the strikes movement are made by the parties of the Left. For example, a resolution for at least one week’s strike action was voted down on the Central Council of the ADEDY federation (civil servants’ union) because of the votes of the KKE (Communist Party) faction. The resolution for a week’s long strike had the support of 19 votes, with 17 votes against, but the KKE used its seven votes to defeat it.
In the journalists’ union, two days ago, a similar role was played by the SYRIZA faction, which is the biggest faction in that union. The PASOK vote split, with half supporting the demand of the anti-capitalist Left for indefinite strike action. But SYRIZA voted, together with the conservative section of the union, to have only one 24 hour strike and some three hour stoppages.
These examples show the extent to which the mass parties of the Greek Left are far behind the needs of the situation and the mood of the working masses.
What impact do these developments have on the political landscape?
Despite dissatisfaction with the Left, a big section of the population now regards a new government of the Left as the only hope on the horizon. There is thus a huge turn in favour of SYRIZA (although opinion polls reveal that Syriza’s support has not essentially grown, but it is the largest party because support for the New Democrats, the main party in government, has fallen). But this turn towards SYRIZA is not enthusiastic. This is not without reason. SYRIZA’s political platform is not clear. People do not know exactly what SYRIZA is going to do if it takes the power, and that makes them suspicious. On the other hand, the KKE (communist party) is continuously isolated from the bulk of the working class because of its sectarian tactics. The KKE speaks, in general, about the need for “revolution” and “socialism” but it refuses to link this call, in any way, to today’s reality and to mass consciousness. On the contrary, the KKE say that things are not ‘mature enough’ yet for system change. So, in practice, they have ‘maximum and minimum’ approach (i.e. make radical and general rhetoric for ‘socialism’ etc, while only putting forward minimum demands and without linking the two concretely), rather than a transitional approach (campaigning on the key class demands of the day, while linking this up with the need for a workers’ government and to change society). In reality, as we can see from the union votes mentioned above and other actions, the KKE leadership functions like a strike breaking force.
Despite SYRIZA’s inadequacies, the struggle for a government of the Left is what the movement needs to campaign for and this is the approach of Xekinima. Of course, we link this struggle to the absolute need for a socialist programme and the need to base this on rank and file assemblies and committees of action. We emphasise that if a government of the Left, based around SYRIZA, fails to adopt a socialist platform this will represent a massive defeat for the Greek Left and the working class, particularly given the fact that the neo-fascist Golden Dawn received around 12% to 14% in recent polls.
How is Golden Dawn being combated?
The far right, anti-immigrant Golden Dawn is not invincible, however. Opposition to it is growing. There are many anti-fascist committees being set up. The mass parties of the Left do not really understand how to tackle the problem of rising fascism, which requires working class unity, combating the real danger and propaganda of the far right and also fighting for an end to cuts, and for jobs, decent homes, a living wage and for decent public services, health and education for all etc.
But things are changing. In September, every proposal made inside SYRIZA to create anti-fascist committees (usually made by members of Xekinima who participate in local branches of SYRIZA) was voted down. In the course of the last week, however, the central secretariat of SYRIZA changed its stand and is now in favour of anti-fascist committees. The KKE, on the other hand, makes no such call but it has a sectarian, abstract approach towards resisting Golden Dawn and the need for a united front against the far right threat. The KKE continues to live on its own isolated planet, refusing to understand what is happening around it.
How is the Left responding to the crisis?
SYRIZA is not the only field where developments are taking place. In the rest of the Left important developments are taking place. It is correct to say that the Greek Left, in general, is in a state of crisis, which takes different forms for different parties of the Left. There are splits inside ANTARSYA (the anti-capitalist Left Alliance); there is a mass exodus from the KKE; there are major clashes inside SYRIZA as the leadership turns to the right; and the Left Current of SYNASPISMOS (the main constituent force making up SYRIZA) is reacting to this rightward turn but without clarity as regards what should be done; and, of course, the huge mass of Left voters remain outside the Left parties and formations.
In this context, Xekinima (CWI in Greece), came together with other forces of the Left, from ANTYARSYA and the rest of the anti-capitalist Left and we have also linked up with forces inside SYRIZA, to create the ‘Initiative of the 1000’, as it has become known (1013 individuals signed the launching statement before it became public). This initiative bases itself on the need for a radical anti-capitalist programme, as the only way to come out of the devastating social and economic crisis. This includes calling for a repudiation of the debt, nationalisation of the banks and the commanding heights of the economy, and for a planning of the economy, on the basis of social needs, and under workers’ control and management. The programme also calls for a united front of the parties of the Left and for support for a Left government i.e. a government based around SYRIZA. At the same time, this means fighting against the reformist programme of the leadership of SYRIZA. The majority of the leadership think they can manage the crisis better than the ruling class and do not prioritise fighting to get rid of the capitalist system and for a socialist society.
The Initiative of the 1000 has only been publically alive for a few days but it has already been noted by the whole of the Left. It is an entirely new innovation, uniting forces from all sections and parties of the Left, on the same programme and with similar aims for the mass movement in the immediate period ahead. Its development and potential are not yet clear. But it is certainly worth the attempt to build the Initiative of the 1000. We will be able to say more about its role and perspectives in the very near future.
Tuesday, 30 October 2012
N14 could open new chapter of class struggle in Europe
For a Southern European-wide general strike on 14 November!
CWI Statement
• Towards an all-European general strike!
• Down with the governments of the Troika!
• Down with the Europe of the markets!
• For a democratic socialist Europe of the working people!
• CWI solidarity on November 14th
On 17 October, Europe’s “leaders” gathered in preparation for a summit of heads of state in Brussels. This was their umpteenth crisis meeting since the capitalist economic crisis and resulting social and political turmoil began to violently shake the foundations of the bosses’ “European unity project”. Little surprise then that this summit, like those which preceded it, ended without the slightest indication of moves towards successfully stabilising the continent’s explosive economic and debt crises. Under the rule of the Troika (IMF, ECB and EU), the markets and capitalist political leaders, Europe continues along the path towards a deepening social disaster, with the economic recession accelerating and a slash and burn policy, of attacking the living standards and livelihoods of workers, young people, the unemployed and pensioners across the continent. In the last three weeks alone, governments in Greece, Portugal and Spain have introduced new super-austerity packages, the latest in a never-ending offensive.
However, on the same day in the same city, an important decision - for a European-wide day of workers’ action against austerity - which could potentially represent a turning point in the struggle of workers was made at a summit of the European Trades Union Confederation. 14 November was declared a European-wide day of action, with coordinated general strikes confirmed for Portugal and Spain, at least, to be accompanied by mass demonstrations in other European capitals. This will be a day of international struggle on a higher level then seen before, and the first attempt in the current crisis at coordinated general strike action. The CWI welcomes this decision, and will struggle to ensure that 14 November is a successful day of struggle that can lay the basis for further more generalised actions. A successful day of strike action and protests can send a message of unity, demonstrate the anger of working people across the EU and help overcome feelings of isolation which exist amongst some sections of workers and youth, in countries like Greece.
Since the beginning of the current crisis, the CWI has stressed the need for the European-wide coordination of the fight-back - including in this statement published shortly before the ETUC formal announcement – and has taken concrete initiatives to popularise and promote international action, beyond the symbolic European-wide demonstrations called by the ETUC, up until now. The positive decision by the ETUC leadership to coordinate action on 14 November, which flows logically from the continental-wide character of the attacks on workers and the growing fightback, is also the result of growing pressure from below in the workers’ movement, particularly in Spain and Portugal and other countries of Southern Europe. Although it comes late in the day, and is the result of the massive pressure for action which is building up, 14 November represents a key development and lets the “genie” of international general strike action out of the bottle. It could lay the basis for international struggle on an even higher level in the next period.
However, the full scale of this action, broadly agreed by the tops of the European trade union movement, has not yet been fully clarified. In many countries, the trade union leadership is hesitating and delaying calling action. In Spain and Portugal, they have been compelled to call a general strike. In Italy, the COBAS have called for a strike although the CGIL has yet to decide. Outside of the Iberian penninsula, there is a clear basis to add to the number of countries in which general strike action could and should take place, if the trade union leadership were to make the call. In Greece, five general strikes have taken place already this year, and the rotten coalition government has just agreed a new list of brutal measures to further the destruction of the lives of millions, including a 6-day working week. The inclusion of 14 November as a key date in the ongoing struggle of the Greek working class movement to do away with the government of the Troika and for a workers’ government, is possible and would represent a uniting in battle of the inspirational Greek working class fighters, with those whom they have inspired in Spain and Portugal. The conditions exist for 14 November to include a general strike across the whole of Southern Europe. In Spain and Portugal, strikes have been called. In Greece, Italy, Cyprus, and Malta the question is being discussed. In Belgium, important sections of the trade union movement have come out in favour of a general strike on 14 November. There is anger and demand for action throughout the EU. Even in some countries where protests have yet to be called, the situation is ripe for the calling of a general strike. We urge the organisation of solidarity protests in those countries where no general strikeare officially being called. Following on from a day of international action, including a Southern European wide strike on 14 November, a plan of escalating and widening international action could be put in place.
Crisis nightmare
The worsening of the crisis nightmare throughout Europe and the determination of the working class and youth to fight back, is creating the conditions for such a process. On 20 October, 150,000 marched in London against austerity, where massive pressure is being brought to bear on the leadership of the TUC to call a 24 hour general strike, with three major trade union general secretaries speaking out in favour. The TUC leaders have been compelled to discuss such a possibility in great part due to the struggle for a 24 hour general strike by trade union activists organised in the National Shop Stewards Network (NSSN). As in other countries, anti-union legislation makes the organising of a general strike extremely complicated in Britain but this cannot be used as an excuse for inaction by the union leadership.
In Ireland, tens of thousands continue to refuse to pay the Troika’s “household tax”. In France, the Hollande government’s turn towards austerity, following its election just a few months ago, is preparing the ground for a new period of class confrontations. Thus we see how, while not immediately realisable, there is the basis for socialists and working class and young activists to set their sights on an all-European general strike. Action on ‘14N’ could be an important springboard for a campaign in favour of such a strike. But just calling strikes is not enough. Such a campaign would have to be taken up in workplaces and throughout the workers’ movement, to be explained and popularised, building confidence and developing a strategy to take on anti-trade union laws which are put forward as an obstacle to general strike action in countries like Britain and Germany.
Despite the importance of an international plan of coordinated action, it is important that this question is not used to put a break on the class struggle in any given country. International coordinated action flows organically from the calendar of the class struggle in each country, and begins with the fight against national governments and bosses. In Spain, Portugal and Greece, for example, we must not allow the need to coordinate action on a continental level to allow trade union bureaucracies to hold back from quickly escalating action following 14N. Forty eight hour strikes, for example, to build momentum against the weakened governments of the Troika and big business in these countries are an essential next step.
November 14 must be the start and not the end of a struggle to unify the fight-back of workers across the EU.
• Down with the capitalist EU!
• For a Europe of the working people!
The European class struggle is entering a new stormy phase, where the bringing down of bosses’ governments will come within the reach of explosive movements of the workers and youth. With the forced withdrawal of the TSU wage attacks in Portugal we have already seen how victories can be forced from pro-austerity governments and capitalism’s representatives. However, we believe that to achieve lasting victories and to break from the cycle of desperation and impoverishment, our movements need to be armed with alternative policies, to invest the wealth of society in jobs and regenerating living standards, instead of the payment of the speculators’ debts and bank bailouts. Socialists have a key role to play in intervening in the coming battles to popularise the struggle for workers’ governments based on such policies and the nationalisation, under democratic control, of the banks and key sectors of the economy. As the struggles of European workers become coordinated across borders, we see the potential opening up for a workers’ alternative to the capitalist EU of the markets. An international movement, under the banner of a struggle for an alternative, equal and voluntary, democratic socialist confederation of Europe, is on the order of the day.
A CWI statement republished from www.socialistworld.net
Friday, 28 September 2012
Working class struggle returns to Greece
This fantastic article below posted on the CWI website gives a excellent account of the current state of Greece and how a socialist programme could be fought for and could transform the situation there.you can find out more at www.socialistworld.net
"One of the biggest strikes and demonstrations in the recent period in Greece took place on Wednesday 26 September."
Interview with Andros Payiatsos, Xekinima (CWI Greece)
The Greek working class has put up an incredible struggle against the vicious austerity measures raining down on them. Since 2010 Greece has been rocked by 17 general strikes, three of them lasting 48 hours. A prime minister has been removed and a government brought down. After some quiet months a one-day strike was called for 26 September. The following day Andros Payiatsos, leader of Xekinima spoke to the Socialist (Paper of the Socialist Party, CWI England & Wales). Xekinima is the Greek section of the Committee for a Workers’ International.
After a quiet summer is the Greek struggle back on the agenda?
One of the biggest strikes and demonstrations in the recent period in Greece took place on Wednesday 26 September. There have been small sectional strikes all along but nothing on this scale in the recent months. We estimate about 100,000 in the streets of Athens, which is big, and many tens of thousands in other cities in the rest of Greece.
The mood was good on the demo. It was quite determined and rather optimistic – this is in contrast to the mood in the previous period. After the victory of New Democracy in June and the formation of the new government a lull developed because there was a feeling of ‘we can’t get rid of them’ following the elections.
But this lull was partially overcome by the size of the demo. Also the Greek people are watching with intense interest what is taking place in Spain and Portugal. This has given them hope.
The Guardian newspaper reflected some of the anger:
Echoing a view held by many Greeks, Penelope Angelou, an unemployed mother, said passing the measures would be tantamount to a "parliamentary coup".
“These parties were given our vote back in June because they promised to re-negotiate the terms of the loan agreement," she said, referring to the onerous conditions of the bailout accord Athens signed with its "troika" of creditors — the EU, ECB and IMF – earlier this year. "We are all tired," she said. "This is the third year of non-stop cuts and tax increases which have made us poor and divided us as a society. And they have not solved our problem. The recession is going from bad to worse.”
Given the situation people must have little confidence in the government?
New Democracy is in deep crisis and its supporters are deserting the ship. Samaras was elected on the basis of forcing the Troika to renegotiate the memorandum but in fact he’s heading in the other direction.
Is the effect of austerity on people’s lives a factor?
It’s a desperate situation for the masses because the situation already is extremely bad. According to the EU statistics of July 68% of the population lives below the poverty line – this is a staggering figure. But it’s realistic – we know because we live here. It’s the first time they are giving the figures that reflect the effect of their policies.
Unemployment is now officially at 23.6%. This official figure, of course, hides all those who have just given up looking for a job. And youth unemployment is an unbelievable 55%. So this is an absolute catastrophe for Greek society.
Then, in these conditions, they try to impose further cuts of €11.5 billion in the course of two years – this is more than 5% of the GDP of the economy.
Unsurprisingly there is a mass exodus into migration and into the countryside; back to the villages where people can survive by living with their families and maybe cultivating a bit of a living from the land.
All the youth are thinking of leaving the country. It’s a mass phenomenon – there are no youth, particularly university students who can see any point in staying in the country – although they want to stay in the country. Even left activists who want to stay and fight – they have no options as this is not just poverty – this is absolute emiseration.
Can you comment on reports that the opposition movement has reached the police and army?
For the whole of September we have seen protest action by state forces. Sections of the police have gone on strike including protesting against the riot police. Yesterday there was a press statement by the firefighters who said we refuse to be used by the state to suppress demonstrations. This is a he crisis in society and in the economy and it is even reflected in the security forces and we have seen demonstrations by army officers.
What way forward does Xekinima suggest?
We call for a clear plan of a programme of repeated sectional and general strikes and mass occupations of workplaces with the concrete aim of bringing down the government.
This is the slogan we have used for the past weeks and especially yesterday. It is going down very well. You can hear it everywhere.
We especially appeal to the public utility unions which are at the centre of the storm.
The initial response of the Greek people to the call for a 24-hour general strike was, ‘this is nothing, this is ridiculous’, ‘we can’t bring the government down with one 24-hour general strike and they won’t come down even with one 48-hour general strike’. ‘We need something much much more than that’. So there is a mass tendency in the direction of an all-out strike. If the union leaders were to call it they would get a huge response – but they won’t. They just want to let off steam.
You can also say now that nearly the whole of the left – excluding the majority in the leadership of Syriza – accepts the programme (which we initially posed from the beginning of 2010 when the debt crisis came to the fore) that the debt cannot be paid, that the banks have to be nationalised, that the commanding heights of the economy have to be nationalised, and it has to be put under democratic control of society. It’s also accepted by millions of people whether they take part in the demonstrations and strikes or not.
The question now is how to build a movement on the ground to bring the government down and to replace it with a left government which will be pushed by the mass movement to implement this programme.
We also explain the need for the whole of the Southern Europe to be united in huge and unbeatable/invincible struggles.
Golden Dawn has been rising in the polls. What does this signify?
Golden Dawn did not take part in yesterday’s demo - they never take part in workers’ demos, only some of them on the side of the riot police. But that does not mean they are not a factor, they are the only force in society which is rising in the polls. Apart from Golden Dawn, all the parties are falling in the polls. While in some polls Syriza is now the most popular party because New Democracy has fallen more, the fact that the left is also falling in the polls is something which should warn the parties of the left.
But at the same time it’s correct to say that Golden Dawn itself may have gone through its, let’s say, golden period. They’ve been using violence since 6 May elections every day – attacking migrants, attacking lefts, attacking LGBT people, etc. This has been creating an impression that they are a very determined force which contributes to why people go behind their banner and support them in the polls. But it’s starting to consolidate a resistance.
For the first time we have had a number of counter demos that have pushed them back which is very important. This is the first time they are starting to feel defeat. On one occasion we had migrants mobilising against them and pushing them back when they tried to attack them. This is very important, but needs to be linked to a wider movement.
Xekinima’s national initiative to build mass anti-fascist local committees and campaigns is very successful with some fantastic effects. We think that the movement is beginning to respond. We hope that we’ll be able to push them in a corner but at the end of the day the perspectives for GD and the far right mainly depends on the role of the parties of the left. We are fighting to push these parties in a more leftward and determined direction, while at the same time striving to build support for Xekinima and the ideas of revolutionary socialism – this is the only way the crisis can be solved.
Greece – the unfolding social tragedy
The savage austerity policies, implemented in Greece by the ruling class, the government and the Troika of the EU, ECB and IMF have already had disastrous effects on the lives of millions. Living standards have crashed as a result of mass unemployment, the onslaught on wages, and tax rises in combination with the huge cuts in social welfare and the complete destruction of social benefits and the social state. With no exaggeration the Athens Doctors Association wrote to the government of the danger of a humanitarian crisis taking place in the country if the ‘new’ austerity measures of €11.5 billion are implemented. Nikos Kanellis, Xekinima, CWI in Greece, writes of the impact of austerity on the lives of those who bear no responsibility for the crisis.
Public health collapses
The public health system is being destroyed day by day. Public hospitals are often short of the necessary materials for proper and safe treatment of patients. There is a shortage of nurses and doctors and tens of clinics in different hospitals are closed because of the cuts.
It was reported that patients at the Leros mental health hospital were malnourished because public funding fell short of covering the food needs of the hospital. This is not the only such case.
Pharmacists refuse to give any more medicine on credit as the government refuses to provide the necessary funding to pay back old debts. Pharmacists say they cannot buy new medicine from big medicine dealers whose policy is upfront cash. Those who suffer from serious and permanent conditions and diseases (such as diabetes, heart conditions, or cancer) need hundreds of euros every month in order to stay alive.
The Athens Doctors Association reported that numerous people who have no health insurance visit the Social Clinic of Athens (organised by the Association and the church) for free medical treatment. There are cases of people who were diagnosed with cancer but could not afford to be immediately operated on. They even reported pregnant women who put their life and their child’s life in danger because they could not spend the €800 that are needed for a cesarean.
Mass unemployment and poverty
At the same time poverty is expanding day by day on a mass scale. Millions live close or under the poverty line. According to an EU survey last July, a staggering 68% live below the poverty line – compared to 21% back in 2009!
According to recent research by the GSEE (Greek TUC) the real income of working class people has returned to the level of the late 1970s. This is not only the result of mass unemployment, which has now officially reached 23. 6%, or 1,168,761 people with 1,000 people losing their job every day. Young people and mainly women are the more affected as youth unemployment is 53.9% (for people between 15 and 24) and 62.1% for women at the same age.
Given the fact that 59% of unemployed search for a job for more than a year (long-term unemployment) it is no exaggeration to speak of a ‘lost generation’. Young people, the most dynamic part of society, are out of production and this pushes greater and greater numbers to take to the road of migration. 25,000 Greeks migrated to Germany alone during 2011 and this tendency will develop as the social disaster spreads.
Workers in vice-grip of poverty
Poverty does only have to do with unemployment. More and more workers are unable to make ends meet as their wages are slashed. The minimum wage is now around €480 a month (since the second memorandum, voted on 12 February) and for those under 25 and on ‘training schemes’ 430 € a month.
It is also officially estimated that around 400,000 people work but they are not being paid on time and in many cases this would mean getting paid with a delay even of three or four months or nine months. According to the GSEE only 10% of the workforce in the private sector are being paid on time.
Now the Troika and Greek ruling class demand that workers in Greece work six days a week and up to 13 hours a day. This means that working hours per week will rise from 40 to 78 and at the same time as workers will be less protected from being fired. If these plans are put into practice, on top of all the attacks of the last two years, the working class will be turned into slaves.
These attacks have left tens of thousands of people homeless and around 250,000 rely on soup kitchens organised by the church and the charities. In Crete, one of the wealthiest areas of Greece, it is estimated that 8,500 families are dependent on ‘social supermarkets’ in order to cover their everyday food and other basic needs. ‘Social markets’ organised by local councils, charity organisations or left-wing volunteers, distribute food and basic goods for free to the poorest people.
Suicides and depression
The fear of unemployment and poverty, the debts that are accumulated by thousands of families, the uncertainty of what is more to come in the future are the bases of mass depression among big layers of society. The numbers who ask for psychological help have risen by 20-30% and suicide attempts have risen by 22% over the last two years.
The whole society was shocked in late May when a 60 year old unemployed musician committed suicide together with his 90 year old mother, jumping from the roof of the block of flats where they lived. In the letter that was found, the man explained that because of unemployment he was not able to continue to take care of his mother who suffered from Alzheimers and he could no longer stand asking for charity and food from others. In his last poem he condemned the bankers and the rulers for the drama of Greek society urging society to seek revenge and to throw off those in power responsible for this situation.
The hope of struggle
And actually this is the only way forward, the struggle for the overthrow of the government and the ruling class that turns the lives of millions into a tragedy. Over the past two years millions have come to the streets again and again in 17 general strikes, three for 48 hours, and numerous mass protests. There have also been heroic sectional strikes, demonstrations and occupations.
Leftward radicalisation and hope for change was expressed in the elections of May and June with the mass support and vote for Syriza. But until now the working class and mass movement hasn’t succeeded in the struggle to bring down the government, Troika and the rule of the capitalist class. This is in large part due to a lack of a mass socialist and revolutionary party. The building of these forces is the task of all genuine socialists and working class militants.
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