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.

Eurocrisis melting pot CWI summer school discuss's developments and perspectives

The most crucial discussion at the CWI School 2012, held last week in Belgium, with up to 400 participants, was on Europe. This was introduced by International Secretariat member Peter Taaffe and there were a number of excellent contributions from the floor, as comrades grappled with real and immediate situations posed for socialists internationally. Kevin Parslow from the Socialist Party (CWI England and Wales) summarises the plenary session.

Socialistworld.net
The world crisis had coined a number of new words: ‘grexit’, ‘spanic’, brixit and others, to represent different possibilities in the crisis. But what nobody could do on a capitalist basis was under-write or solve this crisis economically. Not even German capitalism, as Chancellor Angela Merkel confessed, has unlimited resources. In the 1920s, the Dawes Plan, underwritten by US capitalism, saved Germany and Europe for six years until the Wall Street crash and the onset of the Great Depression; it was the economic price paid to prevent revolution. Now, no power in the world can act in a similar fashion to solve the European crisis.

The European capitalists have created the European Stability Mechanism (ESM) to bail out struggling economies. But the combined debts of Spain and Italy, next in the firing line, amount to €2.8 trillion, six times the resources of the ESM! Economists and politicians say a collapse of the euro is inconceivable yet the same was said of the Soviet Union. In both cases, the capitalists could not see how the situation could go on but could not envisage its collapse! In the case of the euro, the staggering events brought on by the world economic crisis will drive its demise; Peter pointed out that there have been 70 currency collapses since 1945.

The CWI had predicted from before the euro’s creation that it carried within it all the seeds of its own destruction. What had brought it into being and how it lasted so long was due to the prolonged boom up to 2007. But the profound economic and political crisis, rocking all capitalist institutions, means the eurozone is staggering from one crisis to another.


Northern Europe not immune
Northern Europe has been affected by the crisis, with youth unemployment reaching 28% in Sweden. Scandinavia, particularly Sweden, as Arne Johansson of Rättvisepartiet Socialisterna pointed out, once a blueprint for the welfare state and social democracy, is now a model for neo-liberalism privatisation of public services under its right-wing government and books are being written over the demise of the ‘Swedish model’. Oil workers have taken strike action in Norway and the crisis is so acute in the Netherlands that the left-wing Socialist Party there is heading the opinion polls. Even mighty Germany will not be immune; although in a boom, partly due to a long-term devaluation of the euro compared to the deutschemark, the government parties have been rocked by bad results in the regional elections.

Eastern Europe and the countries of the former Soviet Union have also been devastated by the crisis, which has caused political and economic upheavals in Hungary, Romania and elsewhere. The intervention of the CWI in Kazakhstan has shown the possibilities for winning support for genuine socialist ideas in former Stalinist countries.

But it is mainly in southern Europe where the social, economic and political situation is most acute, with Greece in the vanguard and Spain, Portugal, Italy, Ireland and others not far behind.

Greece
Greece accounts for less than 2% of eurozone gross domestic product (GDP) yet it is important for the capitalists in Europe, the working class and the CWI. We are watching avidly as our Greek section grapples with the task of giving leadership in the face of a five-year depression, terrible social conditions, worsening by the day and a society forced backwards by the barbarians of the European capitalists, represented by the ‘troika’ of the European Union, the International Monetary Fund and European Central Bank. In the recent general elections, the majority of Greek voters, although with reduced turnouts, voted for parties against the austerity packages imposed on them. However, the electoral system, which gives the winner of general elections an extra 50 seats, has allowed the right-wing New Democracy to form a pro-austerity government with the ex-socialist PASOK and its split, Democratic Left. Already, this government has called off attempts, if it ever meant its election slogans, to renegotiate the austerity package accepted by previous governments and will press on with further cuts.

Our Greek section faces great challenges, defending the working class from the attacks, putting the right demands which take consciousness forward and pursuing the correct tactics, to win over the most combative workers and youth to genuine Marxist ideas. The situation was explained graphically by Nikos Kanellis and Nikos Anastasiadis of our Greek section: the regular demonstrations in the centre of Athens, the general strikes which failed to defeat the austerity measures, and the effect of the elections as a ‘political earthquake’, which lifted the depression after the failure of the general strikes. Syriza had gone from 4% of the vote in 2009 to 26% in June 2012 and it was attracting to its ranks ex-PASOK supporters, which could have its dangers in pulling Syriza rightwards. In fact, a lack of decisiveness, particularly on the euro, in the last few days of the election campaign may have cost Syriza victory.

Greece will default on its debts at some stage and will be ejected from the euro. The question of a new currency will be posed. The euro has been associated with modernity compared to the old drachma but how will workers be defended if Greece (or any country) is forced out? Therefore, we have not called for ‘Get out of the euro!” but workers, although feeling the euro was a step forward, will not tolerate years of eurozone-imposed debts and will push to leave in the future.

Some capitalist economists – such as those in Deutsche Bank – have raised the idea of a double or parallel currency to run alongside the euro for a period. This would have the effect of driving down living standards through internal devaluation. The break of Argentina from the dollar-peso peg at the turn of the 21st century was accompanied by parallel currencies but this excluded whole groups of society from the monetary system and was accompanied by the reintroduction of barter. There was some discussion on this question in the school and this will continue further.

These points raised discussion in the meeting as to the best demands to put to workers. However, as Lynn Walsh of the IS pointed out, whatever becomes of the euro, socialists in Greece have to demand cancellation of debts, nationalisation of the banks and industry, a rejection of austerity, control of foreign exchange and trade as part of a socialist plan as the only way to defend workers’ living standards.

Golden Dawn threat
The far right in Greece, in the form of Golden Dawn, gained about 7% in the two general elections this year. The rise of the far right and reaction throughout Europe is the other side of the coin of this period to the rise of socialist ideas. Whereas the crisis will force workers to the left, the far right will also gain when the working class organisations do not give a strong enough lead, as has already been seen in Greece, in Hungary with Jobbik, with the votes for the Front National in France and other far-right parties in Europe. Having the correct ideas to take on the far right, which means taking up the social problems they exploit to gain support, is vital for CWI sections.

Other alternative formations have also sprung up where the traditional parties of both right and left have been discredited by their pro-capitalist austerity policies. The successes of the Pirate party in Germany and of the comedian Bepe Grillo’s movement in Italy show the discontent with ‘old’ politics throughout Europe.

The situation in Greece has elements of civil war about it. It is not a coincidence that there have been comparisons with the Weimar Republic in Germany between 1919 and 1933, and particularly the austerity regime of Chancellor Brüning that led to the rise of the Nazis. However, we have to caution that the idea that the capitalists can go directly to military rule or fascism is wrong. The working class will have a number of opportunities before that is posed but socialists need to warn of the dangers if the working class fails to take power.

Spain
Much of the focus of attention recently has passed to Spain, where a situation reminiscent of that prior to the civil war was developing. Austerity measures have provoked a massive reaction, typified by the Asturian miners’ march to Madrid to protest at the slashing of coal subsidies. Prime Minister Rajoy had sent a text during European summit negotiations, protesting at proposed harsh measures, which said: “Spain is not Uganda”. Unfortunately for him, it was pointed out that Uganda’s economy was growing while Spain’s had contracted! The banking crisis had led to guarantees of €100 billion directly to the Spanish banks yet this would do nothing to solve the underlying problems of the economy and the Spanish government would probably need a separate bailout.

The crisis in Spain has also raised the issue of national question. The autonomous regions control almost 40% of public spending and austerity policies will come up against the anger of the nationalities and regions, particularly in Catalonia, the Basque country and even now in Andalusia. What could develop is left nationalism, with struggles against austerity fusing with nationalist sentiments. This conjuncture may also arise in Scotland and Wales, and other European countries. The task of Marxists is to put forward a programme on the national question that links it to the struggle against capitalism and towards socialism.

Francois Hollande won the French presidential elections, and the Socialist Party the assembly elections, promising some concessions, but nothing on the scale of Francois Mitterrand’s presidency that nationalised 38 banks before forced to reverse his policies in the early 1980s. The scepticism towards all parties was shown by the much lower turnout for the elections. The vote was more against Sarkozy and the UMP than pro-Socialist. The significant factor was the rise of the Front de Gauche led by Mélenchon.

Left parties
As the CWI explained from the mid-1990s, the move of the old social-democrat and Labour parties throughout Europe to openly embrace capitalism would leave a space for new formations to put forward socialist ideas. Parties such as Rifondazione Comunista in Italy grew in the 1990s but fell back when they failed to develop clear socialist policies. But the crisis has spurred the formation and enlargement of new left formations, including the Front de Gauche, the Socialist party in the Netherlands, Die Linke in Germany and others. Syriza has been pushed into a position where it is openly challenging for government and could form the next administration in Greece when the current one falls, as it most likely will and probably not after long. The CWI has orientated towards these formations and, while not necessarily mass in numbers yet, electorally they represent a force and workers and youth will join them, or similar organisations, in the future. The CWI will be present in these organisations to give a clear socialist direction to them.

Peter also referred to the situation in Ireland, where the United Left Alliance, including the CWI section, the Socialist Party, now has 5 TDs (members of parliament) and is leading the mass campaign against the household tax. Sinn Fein, the party of Republicanism in Ireland, could become the largest party in the South at the next election, and a stronger socialist contingent could also be elected. As Joe Higgins, one of the Socialist Party TDs pointed out, the Socialist Party has come under attack in sections of the right-wing press, using a spurious pretext of the TDs’ ‘expenses’ for supporting the household tax campaign. The government is intimidating non-payers of the household tax but this campaign could be as big as the poll tax in Britain, which led to the downfall of Prime Minister Thatcher.

Similarly, Britain’s coalition government is riven with divisions and there has been an upsurge in strikes in the public and private sectors. The National Shop Stewards Network is playing an important role in galvanising the trade union movement and the Trade Unionist and Socialist Coalition is beginning to make small but important moves forward on the electoral plane.

Europe has become “ungovernable”, as it enters its ‘Japanisation’ phase, a long period of depression. “How much pain can the countries under stress endure? Nobody knows. What would happen if a country left the eurozone? Nobody knows. Might even Germany consider exit? Nobody knows. What is the long-run strategy for exit from the crises? Nobody knows. Given such uncertainty, panic is, alas, rational. A fiat currency backed by heterogeneous sovereigns is irremediably fragile.

Before now, I had never really understood how the 1930s could happen. Now I do.” This was the gloomy prognosis for capitalism of Martin Wolf in the Financial Times. It shows the extreme pessimism of the European capitalist class.

Trade union militancy
Peter concluded that Marxists must root themselves in the situation. The current young generation will be the ‘lucky generation’. For 50 years, the pioneers of Marxism in Europe have seen marvellous developments but would give it all up to participate in current events. We can now look forward to the socialist revolution which is developing in Europe and worldwide.

In his reply to an excellent discussion, Tony Saunois of the IS remarked on the increase in trade union militancy. The general strikes that have taken place have tended to be protests, which some right-wing leaders of the trade unions have been only too eager to choke off. Not yet have these strikes raised the question of power for the working class. This will come in the future, as will the need for workers to get organised politically, either in broad mass formations or revolutionary parties directly. At the moment though, there is still an anti-party mood in most countries of Europe.

The tasks of the CWI include building our own sections but also to fight for new mass parties with demands to transform these new organisations as part of the struggle to transform society. In that way, our sections need to grow into bigger parties and shape events. Tony said we are in a protracted crisis and in a race against time. The key question for the CWI is to face up to the challenges and build our forces to transform society