European Union

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Pablo Iglesias: “put a stop to the grand coalition that is imposing austerity and financial totalitarianism.”

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This is a rush translation of the address by Podemos MEP Pablo Iglesias to the European Parliament this morning, on the occasion of presenting his candidacy for President of the European Parliament. Original text via Público.

It is an honour to speak to you all in presenting my candidacy for the presidency of this chamber. This parliament is called upon to represent the sovereignty of Europe and we must, fellow deputies, live up to what that means today.

The dream of Europe has been buried many times but it always managed to awake once again. This is what happened nearly 70 years ago: Europe awoke again in the resistance of its peoples against fascism, in the survivors of the extermination camps, in those who gave their lives for justice and for freedom. Thousands of my own compatriots, who had struggled to defend democracy in Spain, took part in that struggle and that dream of justice. You cannot imagine the pride I have as a Spanish person that the first tanks that entered Paris to liberate it were manned by Spanish combatants. Today, as intolerance and xenophobia threaten us once again, I want to call upon Europe’s memory of antifascism, and that of all those peoples who love freedom and democracy.

My fellow deputies, the best of our continent and our common history was forged in the revolutions that made the people the subject of rights, above kings, gods, noblemen and major property owners. The best heritage of Europe is the will of its citizens to be free and to be the serfs of no-one. To be no-one’s serf, my fellow deputies, that is democracy.

That is why I must tell you today that the peoples to whom we owe our social freedoms and rights did not struggle for a Europe in which its people live in fear of poverty, of exclusion, of unemployment or of abandonment when faced with illness. The expropriation of sovereignty and subjection to the rule of financial elites threaten the present and the future of Europe, they threaten our dignity, they threaten equality, liberty and fraternity, they threaten our life in common.

The creation of new supranational entities does not have to come at the price of leaving the citizens helpless. Our peoples are not children, nor are they colonies of any investment fund. They did not win and defend their freedom so as to hand it over to a financial oligarchy. These are not abstract terms, my fellow deputies: all of you are well aware of the problem.

The ease with which lobbies in the service of major corporations move around here is scandalous, as are the revolving doors that turn public representatives into millionaires in the pay of big businesses. We have to say it loud and clear: this way of operating robs the peoples of their sovereignty, attacks democracy, and turns political representatives into a caste.

My fellow deputies, democracy in Europe has been the victim of authoritarian erosion. In the European periphery the situation is tragic: our countries have almost become protectorates, new colonies, where powers that no-one has elected are destroying social rights and threatening the social and political cohesion of our societies.

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Championing the Affluent

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The affluent are blessed in their champions.  They have a myriad of commentators fighting their corner.  In the Sunday Independent Colm McCarthy, discussing the benefits or otherwise of a third tax rate on high incomes, stated:

‘In order to raise meaningful amounts, it (the threshold to enter the third rate of tax) cannot be pitched at a level much higher than the €100,000 indicated, but that pulls into the high-tax bracket many people who do not consider themselves exceptionally well-off.’

€100,000 not exceptionally well-off?  Ok, maybe, but they certainly are ‘well-off’; very well-off.  In fact, they are in the top 3 percent of income earners in the state.  If these high-earners don’t consider themselves exceptionally well-off, what would they think if they were part of the 50 percent of income taxpayers who earn below €29,000 a year?  Or the 25 percent of the population who live in official deprivation.

These kinds of comments are part of the don’t-tax-high-earners-too-much-because-then-they-will-leave-in-a-tax-huff argument.  Thomas Molly, writing in the same newspaper, puts it this way when discussing the wealth tax:

‘Any other sort of wealth tax is likely to bring in very little money as the cash moves overseas at warp speed but is guaranteed to scare away many of the people who create wealth and jobs in our society.’

Ah, tax flight – the phenomenon whereby high taxation causes people to leave the jurisdiction.  How valid is this?  Not very.  The US is a good place to study.  Individual states can set their own income and wealth taxes in addition to Federal taxes.  And moving from one state to the next is not nearly as challenging as moving from one EU country to the next.  So what happens when states like Maryland or New Jersey or Oregon raised taxes on the highest income groups?  This study – ‘Tax Flight is a Myth’– found:

‘Attacks on sorely-needed increases in state tax revenues often include the unproven claim that tax hikes will drive large numbers of households — particularly the most affluent — to other states. The same claim also is used to justify new tax cuts. Compelling evidence shows that this claim is false. The effects of tax increases on migration are, at most, small — so small that states that raise income taxes on the most affluent households can be assured of a substantial net gain in revenue.’

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European Elections 2014: 2020 Hindsight

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The results of the European Union’s Parliamentary elections are just in. They are twofold: first, there is a clear disinterest in the European Parliament as expressed by very low voting turnouts and second, of the few Europeans that did bother to vote, many have decided that it is time for a change.

Non-voters in the European Parliamentary elections are the majority in those nations without compulsory voting. The European turnout was 43% with 57% not voting or spoiling their vote. In Germany 48% voted, 46% voted in France, 36% in the UK and 35% in Portugal. There was extreme disinterest in the European elections in much of Eastern Europe: with 24% turnout in Croatia; 23% in Poland, 19% in The Czech Republic; and the Slovakians with a 13% turnout.

Christoph Hasselbach of Deutsche Welle’s Europe desk noted: “As for turnout, the picture is mixed: in some countries more people voted than before, but those votes often went to Euro-skeptic parties.” “All in all”, he added “the general public’s interest in the EU is shockingly low”.

As to the changes in voting patterns, highlights of the wave of political change include the rise of the German anti-EU AfD party (Alternative für Deutschland) which gained their first seats in the European Parliament; France, where Marine Le Pen’s party was the overall winner of 24 seats with more than 25% of the vote; Spain, which now has a new fourth party called “Podemos” with an anti-EU/Troika and an anti-capitalist stance which may have taken many of the PP and PSOE’s 17 lost seats; and the UK where non-finalised counts indicate that the right-of-centre anti-EU party UKiP (United Kingdom Independence Party) has won the election gaining, for the first time ever, more MEPs than either the Tory or Labour parties; finally there is Greece, where the “SYRIZA” far left alliance has come out on top with 27% of the national vote and seven MEPs.

On a national level Europe’s political structure has been reasonably stable since the Second World War and more specifically since the first waves of growth of the Common Market in the 1970’s. This has been broadly reflected in the European Parliamentary party groups since the Parliament began in 1979. Until today the main groups in the European Parliament reflected two broad nation political categories. The centre-left grouping in the European Parliament is the S&D “The Group of the Progressive Alliance of socialists and Democrats” which includes the German SPD, the PSOE in Spain, the French Socialist Party and Labour in the UK, among others. The large centre-right grouping in the European Parliament is called the EPP “The Group of the European People’s Party (Christian Democrats)”, it includes Germany’s CDU party, the Spanish PP and the UK Tory party. Provisional results at 11:00AM/CET on Monday, May 26 show the S&D lost seven seats since the last (2009) elections falling to 189 MEPs but the EPP did even worse, losing 60 seats to 214 seats. There are 63 new ultra-left-wing MEPs and 63 new ultra right-wing MEPs who have not yet aligned themselves to European party groups. This change is a clear demonstration of the radicalization of European politics.

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Greek Elections Update: A Small Step for SYRIZA, a Medium Step for Golden Dawn

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The first round of the Greek municipal and regional elections is over. The results, while indecisive, present a number interesting aspects, which give some idea about what may be expected in the second round as well in the European Parliament elections next Sunday. We shall summarize and comment them here.

First of all, abstention was quite high, though not higher than that in the previous, 2010 municipal and regional elections. It ranged between 53% in the city of Athens (it was 57% in 2010) to 35% in smaller provincial cities. This fact shows that the crisis of the political system still continues, without however SYRIZA or any other party clearly benefiting from it.

There was an interesting incident with the exit polls at 7 p.m. Sunday afternoon showing that SYRIZA was heading for a spectacular win in the biggest municipality and district, respectively Athens and Attica. They forecasted a win for Dourou, SYRIZA’s candidate for the Attica district, with a margin of 6-7% against the center-left “independent” Sgouros, and also a small precedence of Sakellaridis, SYRIZA’s candidate in Athens, against the equally “independent” center-left Kaminis. This created euphoria in SYRIZA with its leader, Alexis Tsipras, making some enthusiastic comments. However, these forecasts, which would indeed mean not only an overturn of all polls, but also a triumph for SYRIZA in the decisive battles, failed to materialize. As results began to roll in, it became clear that Dourou’s margin was much lower, of the order of 2%, while Sakellaridis was second after Kaminis, even if marginally. Still, the final result was a very descent one for Dourou and Sakellaridis. Meanwhile, it turned out the neonazi Golden Dawn scored better than in forecasts, achieving two quite positive results: 16,12% of the well known Kasidiaris in Athens and 11,11% of Panagiotaros in Attica district. Both in Athens and Attica the ruling party’s ND candidates failed to make it to the second round.

Had the picture in the rest of Greece been the same, with regard to SYRIZA and ND, than even that result would be a clear victory for SYRIZA. However, this was not the case. In most districts and in the other big municipalities (Thessaloniki, Piraeus, Patra) SYRIZA’s candidates scored well below that, roughly at 15%. The governmental district candidates, on the other hand, apart from the disastrous Attica result (where the ND candidate, Koumoutsakos, took just 14.13%) averaged somewhere between 25-30% (or even more in some cases).

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Greece on the Eve of Municipal and European Parliament Elections: a Riddle Waiting to be Solved

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The double Greek elections of May 18th and 25th –municipal and regional on 18th and the European Parliament elections together with the second round of municipal and regional ones where necessary on 25th– will undoubtedly influence decisively the course of the country. They will reflect the evident as well as underground trends in Greek social and political life developed in the period after the elections of May and June 2012.

Given the specificity of the situation in Greece, which became during the last few years the workshop and test field for the most brutal neoliberal policies, forged by the Brussels European Union directory and applied by the conservative Greek government of New Democracy and PASOK, Greek elections are perhaps more critical than the respective ones in other European countries. The elections will be a crucial test for the two major political parties, the ruling conservative New Democracy (ND) party and the left opposition, SYRIZA, but they will also be critical for all other Greek political forces. The main issue, which is of great importance not only for the Greek but for the European Left as well, is whether SYRIZA, the stronger left formation presently in Europe, will be able to achieve a clear electoral victory, or if the ruling ND party will achieve a satisfactory result, such as a defeat –let alone a victory– on points. There are, of course, a series of other questions, less critical but not negligible, to be answered in these two evenings, regarding the results of the other parties.

However, with just about a week separating us from the first Sunday, most commentators agree on only one thing: that everything is completely vague and the election night will certainly present us with some big surprises. This impression is further strengthened by recent developments, shortly before and during the election period, which did not give a clear lead or superiority to any party: on the one hand, the Baltakos case undoubtedly cost the government a lot; on the other, some retractions by SYRIZA on the selection of candidates and also on the issue of the Turkish speaking minority in Thrace did not make a good impression. The situation reveals a similarly confusing picture in relation to the other political forces. While some trends do emerge, it is not at all certain how they will crystallize. The prevailing big uncertainty is reflected in most polls so far, which often produce greatly conflicting results for all parties.

In the following, we will consider first the general political scene and its tendencies in recent years. Then we will examine the developments and contrasts in the main formations of the Left, SYRIZA, KKE and ANTARSYA, and the problems of strategy and tactics that have been raised mainly in connection with the country’s relations with the EU, which are also a key dimension of the ongoing political controversy.

 1. The General Political Picture

What impresses one, even at first glance, is the fragmentation and liquidity of the Greek political scene today. This is a feature of the new political system that emerged in the May 2012 elections, replacing the ND and PASOK two-party system which had been dominant since 1977. However, given the partial polarization in the elections of June 2012, one would expect a relative domination of the two major parties, albeit not to the extent of the ND and PASOK before the onset of the crisis. Quite the opposite is true, with a number of 46 parties taking part in these European elections, a great record compared with the 27 of the previous ones.

Certainly, most of these “parties” do not claim a serious political role. They include 4 or 5 far Left groups, which usually elicit a few votes from the elderly and illiterate voters of the KKE, who confuse their ballot with that of the Communist Party. One will find even some fans of John Kapodistrias (the first governor of Greece after the 1821 revolution), two parties with the word “Hope” in their title, a party called “Drachma” (the old national currency before the country’s accession to the euro), the “Rural Livestock Party of Greece”, the “Party of Greek Hunters” (which however usually receives a decent 1%) and so on.

There’s even a party whose title may contain more words than the number of votes it will get in the elections. It is called “Independent Left Renewal, Right Renewal, PASOK Renewal, ND Renewal, No to War, Party of the I Donate Land Business, I Annul Debts, I Save Lives, I’m Saving the Riches of the Greeks, Greek All Workers Labor Movement”. Its completely unknown leader, Miltiadis Tsalazidis, may not be a good politician, but seems to be at least a good humorist…

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Anglo: Not Our Debt Campaigners Alarmed at ECB Pressure

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Debt Justice Action – a coalition of community, trade union, global justice, academic, faith-based and other groups that hosts the Anglo: Not Our Debt Campaign –  has described as “alarming” media reports that the Irish government is being pressured by the European Central Bank to quickly sell on to the private sector the government bonds it issued to replace the Anglo promissory notes in 2013.

Spokesperson Niamh McCrea said that any such sale would “make an already bad deal even worse”.  She said, “The debts run up by a bank like Anglo, which is under criminal investigation, should never have been taken on by the Irish people through the promissory notes, and those notes should not have been turned into sovereign debt, as the government did last year, extending the repayment period but with no write-down of the debt”.

Andy Storey pointed out that as the bonds are currently held by the Central Bank of Ireland, any interest paid on them stays with the Irish state, but that “if they are sold to the private sector, as the ECB is now pushing to happen quickly, then the same class of creditors and bondholders whose gambles were made good by the Irish government will end up making yet more money by raking in the interest payments due”.

Ms McCrea called on the Irish government to “for once, resist ECB pressure and insist that the bonds remain with the Central Bank with a view to negotiating the write-down of this odious and illegitimate debt”.

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Friday Stat Attack: Ireland Holds the Record for Longest Domestic Recession in the EU

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Some commentators are celebrating our ‘recovery’.  Some have even said that we have recovered relatively quickly, after a dramatic fall.  Here we go again – rewriting history, distorting the current situation.

Ireland holds the record for the longest domestic demand recession in the EU.  And the really bad news is that we may not be out of it yet.  The following table breaks down the length of consecutive domestic demand recession that EU countries have suffered since 1960.

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Almost all EU countries have, since 1960, suffered at least a two-year domestic demand recession – with the exception of France and Malta (though data only goes back to 1996 for the island).  Some domestic demand recessions have been harsh – Estonia’s two-year experience saw a fall of over 30 percent; some have been mild – Poland’s two-year experience saw a fall of less than one percent.

Ireland – along with Spain and Greece – have the longest consecutive domestic demand recession:  six years.  And in the tradition of breaking the tie, let’s count the number of years that domestic demand fell since 1960:

  • Ireland:  12 years
  • Greece:  10 years
  • Spain:  9 years

With 12 years where domestic demand fell, Ireland wins on points.

Indeed, Ireland wins the double:  longest domestic demand recession and the highest number of years where domestic demand fell.  Since 1960, Ireland has spent 23 percent of the time suffering from falling domestic demand. That’s the cup.

But, surely, this is nit-picking – what with all that recovery going on.  So don’t worry about it.

Enjoy the weekend.

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Launch of ATTAC Ireland, 5/6 April

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Disarm the Markets: Launch of Attac Ireland with a public talk by Esther Jeffers (University of Paris VIII and European Attac Network) and IFSC walking tour with Conor McCabe.

Where: Room 4-027, Dublin Institute of Technology, Aungier Street, Dublin 2

When: Saturday 5th April, 2pm.

Attac is an international movement working towards social, environmental and democratic alternatives to neoliberal globalisation. Founded in France in 1998, it fights for the regulation of financial markets, the closure of tax havens, the introduction of global taxes to finance global public goods, the cancellation of debt, fair trade, and the implementation of limits to free trade and capital flows (see www.attac.org).

5th April marks the launch of the Irish chapter of Attac. Attac Ireland is delighted to welcome Esther Jeffers who will speak at the event. Esther is a lecturer at the University of Paris VIII and a specialist on shadow banking and finance in the Euro area.

Esther’s talk will be followed by an open meeting for anyone interested in becoming involved with Attac Ireland. This meeting will provide an opportunity for people to learn more about Attac, and to discuss how Attac Ireland could be developed to challenge financial power and injustice through education and activism.

These events will be followed on Sunday morning 6th April, with a walking tour of the Irish Financial Services Centre (IFSC) by Dr Conor McCabe (UCD School of Social Justice). Time tbc.

Follow Attac Ireland on Facebook

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Bishop Accuses Spanish Women of Holocaust

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I joined the International Women’s Day march in Valencia on Saturday night. Sources estimate between 10,000 and 20,000 people turned out for the event, from my perspective about 40 percent of those marching were men. Valencia is Spain’s third largest city, after Marid and Barcelona, where marches also took place. This day is usually a day of celebration of women in history and society as well as a chance to draw some attention back to the gender inequalities still present in work and pay. However, yesterday’s event also provided an opportunity to demonstrate the anger and exasperation building up around the new anti-abortion law being carried through the Spanish parliament by the conservative Partido Popular.

The proposal would overturn a very recent law (2010) that legalises abortion on demand in the first trimester, meaning that rape or a serious threat to the woman’s health – currently the conditions for abortion in the second trimester – would have to be proven by anyone seeking an abortion. I have read that somewhere between 60 and 80 percent of the Spanish people oppose this bill. I’m not sure how accurate that is but the big turnout across Spanish cities for what is normally a fun family event was telling. The day before the protests I attended an assembly of women from the trade union Comisiones Obreras. The hall was filled with about 200 women and was brimming with anger. In one of the opening speeches tribute was paid to a lady called Concha Carretero who died on January 1st this year at the age of 95. Carretero’s story, as I grasped it in my broken Spanish, reminds me of the potency behind the word often used at Spanish protests – indignada.

Carretero, born in 1918, was first imprisoned when Franco’s army entered Madrid in 1939. Arrested after attending a meeting of the Juventudes Socialistas Unificadas (United Socialist Youth) on her first night in prison, she was beaten and electrocuted and made to clean up the blood of her fellow captives. Lying unconscious after a beating on the night of August 4th, 1939 her cellmates, thirteen women, were taken and executed by firing squad. Almost a year later, Carretero was released only to be quickly re-arrested. This time she avoided freezing to death when stripped naked and doused in buckets of cold water by exercising all night in her cell. By then Carretero’s father, an anarchist, had been found dead on the street, and her mother, who had suffered a serious injury when a lift fell on top of her while cleaning in the dark shaft, slept unbeknownst to her daughter under the archways of the prison where she was held. Not long after her release Carretero’s husband and father of her first child was arrested and shot by firing squad. Carretero’s crime had been her involvement and work with the Republican army, making clothes and minding the children of men and women on the front during the Civil War. But more than that it had been to dare challenge the might and divine authority of fascist Spain. Going on to re-marry and have five more children, Carretero attended the Almudena cemetery in Madrid every year to mark the anniversary of the execution of her thirteen cell mates, the Thirteen Roses, and every year she called for the “Third Republic”. (Further info here: Fallece Concha Carretero, compañera de las trece rosas rojas, by Gustavo Vidal Manzanares, nuevatribuna.es).

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Ukraine: The Next Domino to Fall to the West?

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The events currently taking place in Ukraine have an eerie feeling of familiarity about them – indeed, that feeling is becoming normalised in the western media. From Afghanistan in the late 1970s and 80s, to Yugoslavia in the 1990s, to Iraq, Libya, Syria, and now Ukraine, the pattern of ‘humanitarian’ imperialism is becoming the standard blueprint for the western geo-political agenda.

On the face of it, the events in Ukraine are clear-cut: a corrupt and repressive government, the age-old spectre of the Russian bogey-man in the shadows, and of course, the innocent, peace-loving, flowers-in-gun-barrels forces of democracy and liberty. It really should sound familiar by now. The story was the same in Afghanistan, it was the same in Iraq, it was the same in Libya, it is the same in Syria. Inconveniently for those of the humanitarian-intervention brigade in such influential western liberal institutions (and, by miraculous coincidence, US government puppets) as Amnesty International, these stories were and are, for the most part, propaganda – that is to say, lies, designed to achieve the support of the general public for what would otherwise be barefaced military aggression. This wouldn’t fly – the west has to play the great saviour in order for its unparalleled savagery to be acceptable.

If we look closer at the protesters in Ukraine, closer at least than the western propaganda machine does, we can clearly see a motley crew of fascists, ultra-nationalists, and conservatives; chief among these are the balaclava-clad thugs of the ‘Svoboda’ party, which, for instance, glorifies the WWII-era Ukrainian fascists who collaborated with the Nazis in rounding up and executing Jews, communists, partisans and other undesirables. Photos and videos from the riots in Ukraine show what are essentially camouflage-clad, helmeted and masked urban guerrillas, assaulting and kidnapping police officers, humiliating and beating people on the streets, vandalising government buildings, and whatnot – all the while wearing EU-flag patches on their sleeves and waving the flags of the EU and various neo-fascist slogan side-by-side.

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A Union for Big Banks

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This report was originally published on the Corporate Europe Observatory website today, the 24th of January 2014.

Far from being a solution to avoid future public bailouts and austerity, Europe’s new banking union rules look like a victory for the financial sector to continue business as usual.

In late 2013, the EU took a major step towards a “banking union”. This has been presented as a series of measures in response to the financial crisis to avoid a repeat of the vision of contagious risk and bailed out banks.  In the preceding months a “single rule book” for banks and a European-wide system of supervision had been adopted. Finally in December a set of rules on a common regime of “resolution” (winding up) of ailing banks was agreed, and the European Council decided its version of rules on how to manage the question of the costs of resolution.

EU Single Market Commissioner Michel Barnier was a happy man:

“Today is a momentous day for banking union. A memorable day for Europe’s financial sector… We are introducing revolutionary changes to Europe’s financial sector… I have now delivered 28 proposals to better regulate, supervise, and govern the financial sector and a more integrated, less fragmented single market. So that taxpayers no longer foot the bill when banks make mistakes. Ending the era of massive bail-outs.”1

These bold promises are bound to be received well by the public in most parts of Europe. With the financial crisis, member states took over massive debts originated in the financial sector to save banks. Four and a half trillion euros had been risked for bailouts – and the final bill was 1,7 trillion euro. Not only did this send national economies spiralling downwards and set off a public debt crisis, it also led to a regime of harsh austerity policies, imposed by the EU institutions and the IMF as conditions for loans.

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Exhibition on Ireland’s EEC Accession Referendum in May 1972

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From the 16 November until Thursday, 21 November next an exhibition on Ireland’s EEC Accession referendum is taking place at the Culture Box, 12 East Essex Street, Temple Bar, Dublin 2.

The exhibition consists of material on the referendum campaign around Ireland’s accession to the then EEC on 10 May 1972.

That referendum debate saw many political and cultural figures contributing, including Garret Fitzgerald, Tom Barry, Alan Dukes, Desmond Fennell, Jack Lynch, Michael D. Higgins, Charlie Haughey, Mary Robinson, Declan Costello, Niall Tóibín, George Colley and Luke Kelly.

Ireland into the EEC: The 1972 Debate from Connolly Media Group on Vimeo.

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On the Irish government’s “precautionary credit line” and “exiting the bailout” – The Emperor has no clothes

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Statement from the Communist Party of Ireland

The Communist Party of Ireland today warned Irish workers not to fall for the latest ruse by the bankrupt political establishment with its announcement that this failed state will leave the “bail-out programme” — which is in fact a restructuring programme — by 15 December with or without a “precautionary credit line.”

This will not mean an end to any of the current or planned cuts in health, education, or social welfare, nor end the drive for privatisation. Nor will it prevent the need for continuous cuts in the future. The servicing of the debt is costing the Irish people nearly €9 billion per year — similar to the annual education budget. Austerity will be a permanent feature of the lives of working families far into the future.

Debt has become the principal political means for strengthening external mechanisms of control by the EU Commission – dominated by Germany – not just of this state but all member states and in particular over the other heavily indebted peripheral states. The capacity of the peoples across the European Union to democratically affect political and economic changes is being rapidly diminished. Democracy is being hollowed out.

It is simply not in the interests of the Irish political and economic establishment to assert independent actions, their interest lies in ensuring that the current process continues and deepens.

Ireland continues to be at the mercy of “the markets” – those who control the markets are those who control the troika.

Debt is also being used to push through the long-term strategic imperative of economic restructuring that is intended to restore lost inequalities and to impose new ones, not only in Ireland.

The announcement today has more to do with appearances than with reality. Just as we were the poster boy for economic development during the “Celtic Tiger” period, we are now being touted as the poster boy of good behaviour for accepting austerity without a whimper.

The European Union has to show to the people of Greece, Spain, Portugal and other EU member-states that if they take the austerity medicine without resistance, it works.

The system itself is in a deep and deepening structural crisis with debt and stagnation just the latest manifestations.

The emperor has no clothes.

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The Euro – exit stage Left?

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Paul Murphy MEP (Socialist Party) contributes to a discussion on what position the Left should take on the euro.

It hasn’t gone away, you know. Although much of the media and political commentary would suggest otherwise, the eurozone crisis is very far from resolved. The economies on the periphery of Europe all face deep economic crisis, the burden for which has been heaped upon working class and poor people, with the devastating social consequences seen at their most extreme in Greece. The situation in much of the rest of Europe is not much better. The political consequences of this ongoing crisis have been seen with near government collapse in Greece, Spain, Portugal and Italy over the course of the summer – with mass disillusionment with austerity a key underlying feature in all cases.

The Irish capitalist class has long tried to separate itself from the other peripheral countries – repeating the mantra that Ireland is not Greece and trying to demonstrate it by more effectively implementing austerity. It has been assisted in that task by the leadership of the trade union movement, which tied to the Labour Party, has attempted to stifle opposition

However, the facts and the crisis remain. The debt to GDP ratio is now at 125% in Ireland and rising. Another dramatic wave of the eurozone crisis could be unleashed at anytime by political or economic developments, the effects of which would be strongly felt in Ireland. The euro will again be at the centre of political developments.

As Ireland moves into primary surplus, the euro could become an important justification for austerity used by the political establishment and a battering ram against the Left. An important reason given not to default on debt or break from austerity policies may be the possible consequence of Ireland being forced out of the common currency. If the experience of Greece tells us anything, it is that an important argument of right wing forces in the next local and European elections, but in particular in the next general elections could well be – if you implement left or socialist policies, Ireland will be out of the euro and economic disaster will result.

Socialists and the Left must prepare to tackle this scaremongering, to demystify the euro and to put forward a left ‘exit strategy’ from the crisis that accepts the possibility of exiting the euro and puts forward radical socialist economic measures to deal with the consequences. There are two pitfalls common on much of the left to be avoided here.

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