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Post by dodger on Oct 1, 2013 9:30:06 GMT
Forget about the self-serving squeals coming from Berlin: Germany has been directly and indirectly responsible for the mess the eurozone now finds itself in. And, it turns out, this is an issue on which the country has some form, around 80 years ago...Debt, trade imbalance, fake economic miracle. Yes, it’s happened before. In GermanyWORKERS, MAR 2012 ISSUE Germany seemed to many EU politicians a safe pair of hands to trust with the control of EU finances. But by relying on Germany’s industry-based trade surplus as collateral, a number of countries have borrowed to the extent that their economic substance is now being drained. It turns out that EU politicians have merely fed the engine of European integration and lost the sovereignty of their states. This is not the first time such a scheme has been used by Germany to centralise political power.
“Beneficial crisis” is a term often used in EU think-tank circles. The credit/debt crisis is depicted as something that sprang out of the ground at around 2007/8 – but has this crisis really come about entirely unexpectedly? Is it really so surprising that many euro countries have sovereign debt problems?
Even a basic understanding of the economics of comparative advantage between trading parties would conclude that certain euro countries should not have been able to raise credit by implied reference to the yield on German bunds (government bonds). Or put another way, how can it be right that Germany monopolises manufacture, sells its output to other EU participants and builds up a huge surplus, at the same time as other countries have been deliberately deindustrialised while accruing massive debt through trade imbalance? Yet this is what has been going on for over 20 years.
Interest rates
The policy was rationalised by EU economic gurus under the cloak of the harmonisation of interest rates, first via the Exchange Rate Mechanism (ERM) and then the euro from 1999 onwards. At the outset the raising of euro credit was hailed as an economic miracle, but is now seen as the acquiring of credit using false criteria.
To set the record straight, it was the euro rather than profligacy that disfigured the long-term interest rates of those countries now in trouble. Normally, a number of credit risk factors are used to determine the rates of interest at which a government or population can borrow. Such factors include the country’s assumed future rate of inflation, its balance of payments position, its political stability, the level of existing debt and the likelihood of default.
Ignored
But under the euro this risk assessment was ignored on a country-by-country basis. Instead, a narrow range of interest rates was applied to the euro bloc overall, with particular reference to the rate of interest on 10-year German bunds. So if German bunds were yielding 2.5 per cent per annum, then in euro terms it was considered appropriate that the governments and populations of Portugal, Ireland, Spain, Italy, Greece etc. could obtain credit at marginally higher rates of 3.0 to 3.5 per cent per annum. The normal credit risk criteria for Portugal etc. had therefore been suspended under the guise of the harmonisation of interest rates.
Nuremberg rally, Germany, 1935.
But this convergence (effectively encouragement) for borrowing, came unstuck in around 2008/9 when it became apparent that on no account should a country such as Spain be accessing capital for a 10-year term at 3 per cent per annum, given its national economic characteristics. Reality took hold and it was recognised that the low interest rates that Spain and the others had secured on their debt was completely mispriced in terms of credit risk.
The rates for these countries, now that they are being separately assessed, are currently averaging around the unaffordable level of 7 per cent per annum or more, whilst 10-year German bunds have interest rates as low as 1.7 per cent per annum.
The political point to stress is that those who control the EU realised these dangers at the outset but considered it a race: Could their political objectives of dissolving sovereign states using the euro be achieved before the likely economic outcome began to emerge?
The claiming of economic miracles under capitalism, only for things to turn out to be a disaster for the working class, is not new. One only needs to look at social and economic history to find examples of what can be described as ‘pyramid’ selling based on misplaced mass confidence. The recent mortgage boom under Labour is one example, and the circular financing under quantitative easing (QE) that is currently propping up British bank balance sheets by £325 billion is another.
A further example of a “funding miracle” was the fate suffered by the German working class in the 1930s when they convinced themselves that their economic problems had been resolved. Like now, this “miracle” involved the issuing of leveraged credit (that is, raising credit with little means to back it). It was organised by Hjalmar Schacht, who had been appointed Reichsbank Governor in 1933. Schacht later explained: “It was necessary to discover a method that would avoid inflating the investment holdings of the Reichsbank immoderately and consequently increasing the circulation of money excessively.” So he had to find some means of getting credit “without meaning for it to be long term and without having it undergo the risk of depreciation, ie loss of value. That was the reasoning behind the Mefo bonds.”
Mefo bonds were structured around a dormant company, Metallurgische Forschungs-GmbH (Mefo), whose sole purpose was to leverage huge expenditure that would not be shown as outstanding debt on the Reichsbank balance sheet. With a start-up capital of one billion marks, which Hitler and Schacht arranged to be provided by the firms Siemens, Krupp, Deutsche Werke and Rheinmetall, Mefo was eventually leveraged at least 12 times over, meaning that for every 1 mark of equity capital put behind Mefo there were 12 marks of debt. Companies that serviced the Nazi order book had only to draw on Mefo for the amounts due.
These bonds, when presented to the Reichsbank, were immediately convertible into cash. The success of the Mefo programme depended entirely on public acceptance of the bonds. But because they were short-term issues that could be cashed at any time and bore interest at 4 per cent, the bonds were eagerly accepted and created 12 billion marks worth of credit, used for such projects as rearming Germany.
But there was a limit to how far the country could go without becoming bankrupt and Schacht believed Germany was approaching this limit. He was eventually ousted from the Reichsbank Governorship in 1939. By then the pyramid selling of Mefo bonds had propped up Nazi politics to the extent that the opportunity for European conquest had arrived. Hitler, fresh from annexing Czechoslovakia through French and British appeasement, said in August 1939: ”For us it is easy to make the decision to go to war. We have nothing to lose: we can only gain. Our economic situation is such that we cannot hold out.”
What is little known is that, following the pumping of credit and the outbreak of war, in July 1940 Walther Funk – who had replaced Schacht as Reichsbank Governor – made a speech in Berlin on the Nazi proposals for the economic reorganisation of Europe. To his audience of businessmen, Funk spoke on the question of currency union between Germany and the countries that had been militarily occupied or annexed prior to 1939. On currency he said: “Regarding the question of the basis of a new currency, which has recently been the subject of a particularly lively debate, the following should be said• the price level will have to be adjusted to that of Germany. But a currency union will bring about a gradual levelling of living standards.” What Funk meant by the “levelling of living standards” became apparent through Blitzkrieg and Auschwitz.
Nazi backdrop
It is from this Nazi backdrop that the notion of a European currency union was spawned in 1940. Now in 2012 the EU weapon of choice for levelling the price of production and workers’ living standards is the euro – Greece and the other indebted countries are being smashed to smithereens. The ‘peace in our time’ connotations concerning the importance of binding European countries together, that we hear so often from today’s currency union fanatics, is an ugly lie that is hiding the most horrible stench.
Let us not continue to believe the false claims of economic miracles under capitalism. Economic and political delusions need to be tackled which includes of necessity Britain coming out of the EU. We do not rely on it. More than 80 per cent of our GDP is not in any way dependent on the EU. Yet the other EU countries depend on Britain as their largest export market. Time to broaden our horizons and recognise that true internationalism begins at home.
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Post by dodger on Oct 2, 2013 7:57:54 GMT
EU trade proposals: Smugglers of social dumping September 9, 2010 12:31 | Brian Denny and Linda Kaucher in: Europe
The threat of social dumping, where workers from nations with low labour costs are sent to another country to undercut local working norms, is set to hugely increase under new plans for the future of EU trade.
Mode 4 is a provision within the General Agreement on Trade in Services (Gats) trading framework (see below) covering cross-border services trade in which workers are moved across borders. Its inclusion in the international trade agenda allows transnational corporations to profit from cross-border wage differentials, national insurance exemptions, tax juggling and other benefits of "flexible labour."
Ultimately Mode 4 undermines workers' abilities to maintain wages and conditions, loading the balance of power between labour and capital in favour of transnationals. It also reduces EU member states' democratic rights to control their own migration policies, in effect handing that power to transnationals.
The EU is offering Mode 4 access in all the trade agreements it is negotiating and has already implemented it internally via the Bolkestein Directive of 2006. In Gats's "Doha Round" negotiations, begun in 2001, the EU's revised offer, tabled in June 2005, included Mode 4 offers across service sectors. Mode 4 is a particularly secret part of the trade agenda, kept from those who will be negatively affected. These EU offers are without quotas or economic means tests.
Defenders of Mode 4 argue that it is not immigration but temporary labour movement. But this does not lessen the detrimental effects on EU workers of an influx of temporary workers who will be prohibited from becoming unionised.
As labour standards are lost in the few places they have been achieved, such as in some EU countries, it will become more difficult for workers elsewhere ever to achieve them. Once signed up to, Mode 4 openings, like all trade commitments, become effectively permanent due to the prohibitive cost of withdrawal. Current EU "investor protection" proposals increase this penalty, allowing not just other states but trans-national corporations to challenge a country's failure to fulfil its trade commitments. Successful challenges will lead to prohibitive financial compensation claims for the loss of all potential profits, called "expropriation." So when workers feel the effects of the Mode 4 commitments that have been made on their behalf, it will be too late to reverse them.
India, on behalf of its transnationals such as steel giant Tata, is demanding transnational Mode 4 access to the EU and an EU/India Free Trade agreement is currently being fast tracked. A recent report on the ongoing EU-India Free Trade Agreement (FTA) negotiations said the "full ambition of the FTA can not be achieved without Mode 4 - which currently faces a range of barriers like wage-parity conditions."
From the other side, the EU is demanding very significant investment concessions, including banking liberalisation. The indications are that the movement of '"intracorporate transferees" will be used broadly, and with high expectations of megaprofits.
But bringing Indian workers into the EU displaces local workers and undermines established working conditions. A race to the bottom is inevitable across many sectors, as transnationals can bring in workers in whatever areas they are established, plus offer cheap, onshore outsourcing. The Indian government is arguing that the minimum wage stipulations of EU member states undermine its cheap labour "comparative advantage."
Yet even if minimum wage levels are maintained, wage competition for just the minimum wage represents intense downward pressure on labour standards for skilled EU workers. For a set of reasons - historic, linguistic and related to the liberalised British economy - workers in the UK are likely to be the most affected by EU commitments.
Notably in terms of secrecy, a recent British delegation to India, led by Tory Prime Minister David Cameron, failed to even mention that an EU/India Free Trade Agreement is being rapidly negotiated, even though it was specifically focused on trade. Mode 4 is considered "sensitive" and thus kept from attention because this dimension of trade - commodifying and moving labour to increase transnational profits at workers' expense - cuts much deeper than trade in goods, or even other aspects of services.
Mode 4 can be recognised as a continuum with the attacks on workers that stem from EU "freedom of movement of services," which allows EU companies to move "posted workers" across borders at cheaper rates. Similar language and concepts of "cross-border establishment" and "movement of service suppliers" are used in both sets of rules.
This is what led to the European Court of Justice (ECJ) to make anti-trade union rulings in cases such as Laval, Viking and Ruffert which, in different ways, undermined the rights of workers to protect their wages and conditions (see panel). ECJ decisions supporting firms' rights within the EU suggest Mode 4 offers "built-in" trade agreement protection.
The otherwise pro-EU British trade union federation the TUC acknowledged in a recent report that Mode 4 threatens to undermine collective bargaining, local laws and the rights of migrant workers. The TUC also accepts the parallels with recent anti-trade union ECJ judgments but offers little in the way of action to oppose either the EU rulings or the threat posed by Mode 4.
At the same time neocolonial, unequal and neoliberal EU trade policies continue to devastate Third World economies, forcing greater proportions of the world's populations to be driven abroad in a desperate search for employment and resources.
Mode 4 does not create a single job but does hand further powers to unfettered global capital to decide who works, where and for how much.
Brian Denny works for the major British transport workers' union RMT. Linda Kaucher is a researcher in the Geography Department of the London School of Economics, focusing on international trade. This article first appeared in the Morning Star
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Post by dodger on Oct 2, 2013 10:30:29 GMT
The upcoming EU-US and EU-Canada trade deals have serious implications for the NHS
LINDA KAUCHER 15 May 2013
After the government pushed through its widely opposed privatisation regulations it is time now to focus on the big trade deals and look to the G8 meeting in June. There is a reason the public are being told nothing about them - because they won't like what they hear.
Contrary to Coalition promises, the privatisation and liberalisation of the NHS, opening the publicly- funded NHS to transnational investors, has now been fixed in legislation. The Health and Social Care Act, and particularly its accompanying Section 75 regulations, enforce competitive bidding for contracts. The House of Lords motion to support the annulment of the Section 75 regulations failed on 24th April.
But what did not emerge in the prolonged and polarised debate about these NHS changes was the fact that the Act and the accompanying regulations were prepared to fit with the proposed US/EU free trade agreement which David Cameron is promoting and furthering in his current trip to the US.
While there is certainly a role for ongoing monitoring of the new NHS structures and arrangements, activists must now move beyond the focus on national legislation to recognising, exposing and challenging the wider international agenda of secretive trade deals which underpin it. This is the context into which this public health funding giveaway fits.
The EU’s international trade agreements, including corporate rights to access government spending, are actively promoted by transnational financial interests - well represented in the City of London.
The major component of the US/EU free trade agreement is ‘regulatory harmonisation’ between the US and the EU, harmonising existing but particularly new regulation for maximum benefit to transnational corporate investors.
Although the US/EU trade deal process has not yet been formally launched, the preparatory harmonisation of regulations has been in train for some time. Health was named two years ago as a primary target in an EU Trade Commission meeting on this deal.
Thus the Health and Social Care Act and its accompanying regulations have been prepared with input from trade bureaucrats with this free trade agreement in mind. When signed, it will make the NHS changes irreversible in practice.
In mid-February, Presidents Barroso and Obama announced that the EU/US trade deal process would be launched in summer. However, David Cameron, overexcited at the prospect of the launch of this massive trade deal coinciding with his chairing of the G8 meeting, had already announced on 1st January how promoting the deal (obviously on behalf of the City of London) would be his G8 priority. This again shows how the trade deal has been lined up, and new legislation ‘harmonised’, for some time.
The end of the 90-day US Congress consultation on the trade deal coincides with the G8 Heads of State meeting on 17th/18th June in Northern Ireland. So the deal can be launched there, with Presidents Barroso and Obama, as well as the Irish chair of the EU for this period, in attendance.
This trade agreement, called the Transatlantic Trade and Investment Partnership (TTIP) by the EU Trade Commission but the Transatlantic Free Trade Agreement (TAFTA) in the US will be a neoliberal pact between the world’s two biggest economic blocs. The stated aims are not only to ‘harmonise regulation’ between the US and the EU, but also to pull in other countries including the big developing countries like India and China. In this way, the TTIP is meant to achieve the global corporate rights and benefits that the stalled World Trade Organisation Doha Development Round has failed to deliver.
‘Regulatory harmonisation’ will without doubt mean reducing corporate regulation to the lowest levels to produce the maximum corporate benefit, and the effects will reach way beyond public health systems.
However at this point, it is the UK public health system that has been very much in the spotlight and keeping the NHS public has widespread public support. Now, in this crucial lead up to the G8, a more informed level of NHS campaigning is needed. We must look beyond the limitations of the national framework and the worn-out spin about ‘choice’ and supposed privatised ‘efficiency’. It is time to grasp, expose and reject the secretive wider trade deal dimension that the government is pursuing to please transnational corporations.
There is lively civil society activity in the US in the consultation process about this agreement. We need to take up the challenge on this side of the Atlantic before this deal is in place. Calling for David Cameron to exempt the NHS from the US/EU free trade agreement is strategic, appropriate action to defend the NHS and to challenge this agenda.
In addition to the US deal, a Canada/EU Trade Agreement (CETA) has been under negotiation for the last 3 years and may be finalised in the same June G8 window if the several sticking points are overcome. One major sticking point is rejection at the Canadian provincial level of the public procurement liberalisation that the EU is demanding. Another is EU reluctance to accept hormone-fed beef and how much beef the EU will allow Canada to supply in the face of Irish and French farmer resistance.
Meanwhile the liberalisation of EU (including UK) public procurement is on offer without question because people here don’t know it is happening – where are the mainstream press?
Because of Canadian civil society awareness and resistance, public health there has so far been protected from trade deals but is now under intense pressure from EU demands in the CETA.
Both for the inherent implications of the CETA for EU and Canadian citizens, and for its interconnectedness to the US/EU trade deal, it makes sense to call for the NHS also to be exempted from the CETA. It will also show solidarity with Canadian campaigners.
The lack of public information here on trade deals is maintained by deliberate government secrecy. Underneath the spin and faux technicality is a trade agenda for which the bottom line is simply a free hand for corporations. Associated with this lack of transparency is the failure of the UK media to report these developments.
Within the BBC, for instance, all ‘business’ news is filtered through the corporate-captured Business Unit. The result is that only the big business view emerges, and briefings from civil society sources on this issue are not reported on. This is a real block to public debate, despite license fee funding to provide public service broadcasting.
Media interest and activity is essential to raising public awareness, to enable a demand for an NHS exemption from the trade deals and for the public to be informed when the G8 media machine kicks in.
Despite the force of vested interests, we, the people, can change this agenda.
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Post by dodger on Oct 3, 2013 15:27:23 GMT
10
REASONS TO LEAVE THE EUROPEAN UNION 1 Because the EU is for capitalism, not the working class It was set up to enforce “free” markets – the free movement of capital, labour and goods – to provide greater and greater profits while suppressing wages.
2 Because the EU wants to break up Britain The EU exists to destroy national sovereignty. It was created to sweep away the concept of nation. Nations are real. The EU drive is to dismember nations – divide and rule to leave the field to finance capital.
3 Because the EU is a danger to peace It is seeking to create a European Army, while inciting reaction and war on behalf of US capitalism, for example now with Syria and Iran. The call for a European state echoes Germany’s World War 2 aims.
4 Because the EU is a failure – and an expensive failure It has created only chaos and destruction, while its grand plan founders on the resistance of awkward national electorates. In 2010 our net contribution to the EU was £9.2 billion. We can use this money for ourselves.
5 Because we can only survive and prosper outside the EU EU trade represents just 20 per cent of global trade – we can trade with the other 80 per cent, and still trade with the EU outside it, as do Norway and Switzerland.They talk about “little Englanders”, but in truth the “little Europeans” are perverting and narrowing Britain’s trade and industry.
6 Because the idea of a “European people” is a lie There is no such thing as the people of Europe. Each nation has its own people and its own working class with its own interests to assert.
7 Because the EU is a capitalist prison The EU shackles its inmates with 30,000 Directives and Regulations intended to govern every aspect of our lives – imposing their laws, undermining our liberties, enforcing privatisation of public services.
8 Because the EU is using the euro crisis to gain more power The euro was intended to be the chain to bind the prisoners in perpetuity.With the euro falling apart, the bureaucrats are out of control. The EU ensures banks pocket their huge profits while workers bail out the losses incurred by their disastrous speculation.
9 Because inside the EU we cannot control our own borders The EU promotes the movement of vast numbers of people in search of work. Immigration and emigration are two sides of the same problem as migration depletes some countries of skills while undermining pay in others. They intend only unemployment and rootlessness for us as we move from country to country.
10 Because Britain must focus on its own problems We can make what we need, feed ourselves, control our territorial waters, trade with the world, be a sovereign nation. They say global capitalism can’t be resisted – but look at developments in Latin America. Like Cuba we must assert workers’ nationalism as the true basis for internationalism. We only have to decide to do it
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Post by dodger on Oct 7, 2013 16:40:38 GMT
7 October 2013 - Issue: 147
PROTESTS AT EU COMMISSION THIS WEEK DEMAND AN END TO EU RAIL PRIVATISATION
RAIL UNION RMT will be backing the European Transport Workers Federation (ETF) and Action for Rail day of action against EU rail privatisation with protests outside European Commission Offices in London, Cardiff and Edinburgh this Wednesday October 9.
The European Union’s so called “Fourth Rail Package” aims to enforce the fragmentation and privatisation of domestic rail services across the continent, including the compulsory competitive tendering of rail passenger services and separation of infrastructure and operations.
RMT General Secretary Bob Crow said that the package was just the latest in a long line of EU rail diktats designed to create a “Single European Rail Market” which would entrench privatisation in Britain and across Europe.
Bob Crow, who will be attending the London protest, said:
“The package would mean that the currently publicly owned East Coast will have to be put out to tender under EU law, unleashing a widespread attack on the jobs and conditions of rail workers and social dumping which will spark a race to the bottom of rail workers conditions.
“This disastrous EU business model of privatisation is now being rolled out across all our industries from postal services to health care, turning them into cash machines for the big global corporations which are only interested in profit.”
“The ETF/Action for Rail protests this week are a clear signal to the European Commission that unions will not allow the wholesale destruction of jobs and services at the behest of the banks and the EU bureaucracy.”
In their statement, the European Transport Workers Federation, which is co-ordinating protests across the Continent this week as part of a global transport workers week of action, said:
“Competition will put pressure to cut costs and will have the effect to decrease employment, increase outsourcing and sub-contracting of services, increase a-typical and precarious employment, increase the use of agency workers, intensify work load and work pressure, increase of flexible working hours, split work shifts, overtime, etc. All this without taking into account the consequences in terms of quality of services and in terms of safety and security for the passengers.
“Liberalisation and fragmentation do not bring any good to the railways. We have to stop it now!”
The following demonstrations will take place at 09.00 outside the offices of the European Commission and will coincide with key decisions being taken at the European Parliament’s Transport Committee.
London: Europe House, 32 Smith Square, London, SW1P 3EU
Cardiff: 2 Caspian Point/2 Pentir Caspian,Caspian Way/Ffordd Caspian, Cardiff/Caerdydd, CF10 4QQ
Edinburgh: 9 Alva Street Edinburgh EH2 4PH
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Post by dodger on Oct 10, 2013 17:01:33 GMT
A book shows how countries must accept stagnant growth and unemployment levels of 20 per cent or more indefinitely – or leave the euro. Trade imbalances and the eurozone debacleWORKERS, MAY 2013 ISSUE Heraklion, Crete: Greek workers demonstrate against EU-inspired cutsPhoto: Workers The Great Rebalancing, Michael Pettis, Princeton University Press 2013 ISBN 9780691158686 £19.95
Why is the eurozone in such a mess? Is it really, as the Germans tell it, down to the bad habits of its debtor nations? One economist has uncovered a hidden reason. In his book The Great Rebalancing Michael Pettis examines capitalist political economy in 2013. His view is that like the globalisation before 1914, the globalisation of today has caused massive trade imbalances that are currently masquerading as a debt crisis within certain countries.
Among his examples is the eurozone debacle, where the consequences of domestic trade imbalances between euro countries are disguised as a debt problem within the overall euro balance sheet. Pettis calls the exporting of capital within the eurozone by certain countries tantamount to importing demand from other euro participants. For example, exporting capital from Germany to Spain has contributed towards an ever-increasing German trade surplus matched exactly by an ever-increasing Spanish trade deficit.
He describes Germany as effectively taking the same position lampooned by Franklin Roosevelt in 1932 as the Republican position:
“A puzzled, somewhat sceptical Alice asked the Republican leadership some simple questions:
‘Will not the printing and selling of more stocks and bonds, the building of new plants and the increase of efficiency produce more goods than we can buy?’
‘No,’ shouted Humpty Dumpty, ‘the more we produce the more we can buy.’’
‘What if we produce a surplus?’
‘Oh we can sell it to foreign consumers.’
‘How can the foreigners pay for it?’
‘Why we will lend them the money.’
‘I see,’ said little Alice, ‘they will buy our surplus with our money. Of course these foreigners will pay us back by selling us their goods.’’
‘Oh no not at all,’ said Humpty Dumpty. ‘We set up a high wall called the tariff.’ (In 2013 read tariff to mean the German trade priced euro.)
‘And,’ said Alice at last, ‘how will the foreigners pay off these loans?’
‘That is easy,’ said Humpty Dumpty. ‘Did you ever hear of a moratorium?’”
Today’s euro equivalent of a moratorium is the EU memorandum, where the European Central Bank forces a country into re-scheduling debt built up through trade imbalance. The re-scheduling is conducted on the proviso that the debtor country agrees to cease to exist as a sovereign entity.
One of today’s Humpty Dumpties is Wolfgang Schaüble, the German Finance Minister, who said after the fall of Cyprus “I’m known for not giving in to blackmail, by nobody and nothing.” The tragedy in countries such as the Irish Republic, Spain and Portugal is that they fail to see the Alice analogy and instead want to be one of the virtuous countries that work hard, save and repay their debts and not be one of the EU “sinner states”.
‘Spendthrift’ nonsense
Imbalances caused by acquiescent government policies in both surplus and deficit euro countries cannot be unravelled by simplistic views on hard work, Pettis points out. To suggest that a country runs a trade deficit because its working class are spendthrift, lazy and save too little is nonsense. “A nation’s cultural preferences towards saving,’’ he says, “are irrelevant because EU policies have deliberately altered the domestic relationship between investment and savings.’’ Realising where their EU policies would eventually lead, today’s Humpty Dumpties cloak their attack with prattle about blackmail.
The book is also careful to point out that although Germany has low debt and a high trade surplus, German workers during the coming period will be highly exposed to a fall in effective product demand. Pettis explains that France in the early 1930s was in a similar position. He cites comments made by an analyst at the time:
“One of the reasons for which opinion abroad admires the French people is their resistance to the world economic depression. France’s harmonious economic structure and the prompt measures taken by the authorities have facilitated this resistance. The natural prudence of the French people, their ability to adapt, their modernity, and their courage have contributed equally.”
Conditions quickly changed. Demand for French goods vanished and very soon the French economy was in a shambles and was forced off the Gold Standard in a chaotic devaluation.
Pettis in his book shows that euro moralisers propounding populist economic thinking are really saying that peripheral countries must accept stagnant growth and unemployment levels of 20 per cent or more indefinitely, or leave the euro.
The moralisers have spotted the contradiction in the minds of many European workers – although they rail against unemployment and wage repression, they have so far failed to grasp the nettle of euro exit, instead continuing to align themselves with their national ruling class in considering that option as even more unpalatable. Hence the now ex-Cypriot Finance Minister Michael Sarris was able to say, “Cyprus has avoided a disastrous exit from the eurozone.”
Workers’ lack of confidence to take the only realistic option available and force a euro exit has led to a dangerous situation that allows the ruling class to press home its attack. This trait can also be seen in Britain, although the euro cheerleaders have had their guns spiked.
A number of British trade unions still align themselves with the British ruling class and its political parties in wanting to remain in the EU. Downward wages, high unemployment and the break-up of nations are all EU prerequisites. In reality euro recovery is a false promise and it must be dawning on even the most economically befuddled that the EU is the antithesis of British trade unionism.
Pettis (who is not a Marxist-Leninist), has made a similar contribution to that of John Hobson, whose book Imperialism: A Study in 1902 was among the publications that prompted Lenin to write Imperialism the Highest Stage of Capitalism in 1916.
Pettis not only examines the euro but also analyses various forms of trade intervention, the US/Chinese trade relationship and the role of the US dollar as the dominant reserve currency. Much of his analysis rests on counter-intuitive thinking that reveals massive flaws in current populist economic views particularly concerning the capitalist balance of trade mechanism. This makes a refreshing change to the trite nonsense written about economics so often found elsewhere.
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Post by dodger on Oct 12, 2013 12:03:18 GMT
A new and timely book is packed full of evidence that will help in the movement to demand withdrawal from the EU...Why the European Union is bad for BritainWORKERS, MAR 2006 ISSUE Increasingly, British workers are recognising that the EU is damaging their interests, blocking any possible gains for workers and their trade unions in any EU state. So it is timely that this highly readable and well researched analysis is now available, providing extensive and rigorous evidence. It is essential reading that undoubtedly will assist in the process of moving workers from dissatisfaction to outright, conscious opposition, demanding withdrawal from the EU.
The book's historical sweep is apparent from the opening chapter, which outlines succinctly all major developments between 1950 and 1992. It describes the inception of the European common market.
It notes that in the beginning the British political estab-lishment had no wish to join this union: the governments of Churchill, Eden and Macmillan were against participating in European integration.
In the 1950s and early 1960s, the opinion of government and people was hostile to a supranational authority that would have the right to close down our pits or steel works and interfere in our economic life. It points out that initially the EU's founding strategy was to deal with economic targets, leaving the attainment of political targets till later. The aim was a steady leaching away of sovereignty in the basic economic arena. Meanwhile behind the scenes they carefully prepared for political union.
At a certain point, when all the countries had been lured into the bag of economic union, they would tighten the drawstrings and declare full political union. Thus the European Coal and Steel Community in 1951 paved the way for the Treaty of Rome in 1957, which established the EEC.
Book Cover By the 1960s, however, attitudes in the political establishment started to change, as Britain's economic prospects darkened and its relative powers declined. In addition, the US government put increasing pressure on Britain to join Europe. Though De Gaulle's France vetoed Britain's entry during the 1960s, in 1973 Heath signed Britain into the EEC. In 1975 Wilson's Labour Government with a mix of lies and false promises managed to win a referendum on remaining in the EEC. Later Thatcher was to endorse the Maastricht Treaty and one of her last acts was to join the disastrous ERM (Exchange Rate Mechanism).
The authors then report comprehensively on the drive to a single EU state in the years since 1992. If you are interested in discovering what kind of creature the EU state is, then there is a mine of information outlining the undemocratic workings of the EU and its institutions. The EU functions like a giant corporation, its unelected quangos make the laws, the EU takes away not only our national sovereignty and independence, but also our democracy. The European Commission, the apex of everything in the EU, is an appointed not an elected body.
The book informs us not only how the Commission operates but also the EU President, the Council of Ministers, the European Council, the European Parliament, the European Court of Justice. A thorough examination follows of the endemic corruption within the EU.
There is a valuable section on the political and economic costs of EMU (Economic Monetary Union) and its effect of increasing flexibility in the labour market and worsening growth and unemployment.
Another section of the book provides a cautionary tale describing the adverse effect on the British economy and British industry of the EU with additional segments outlining the damaging effects on our agriculture, fisheries and public services.
The authors conclude with a rousing message of Yes to independence and sovereignty, and Out of the EU. These two examples from the thought-provoking conclusion are an indication of the quantity and quality of ideas expressed within it.
Sovereignty Asserting sovereignty is the root of wisdom for a country, just as joining a trade union is for workers. For each it is the birth of dignity; for neither is it an end in itself. What matters is what you do with it. We have been careless of our inheritance so now both trade unionism and British sovereignty are under attack.
To assert and fight for the sovereignty of Britain should be as natural to workers as joining a trade union. Both have the same aim: to keep our freedom. Asserting our right to decide what happens in Britain parallels asserting the right to have a say in our wages and conditions of work. Nobody has a right to interfere in Britain's affairs, any more than we have a right to interfere in any other country's affairs.
National sovereignty is vital. No country run from outside ever amounted to anything. Sovereignty has been one of the great dynamics of human development – if a country does not run its own affairs, those who control it prioritise their own interests, at the expense of the controlled country's interests.
Buy this book and your understanding of the dangers posed to our class and country by the EU will be multiplied a thousand fold.
The EU: Bad for Britain, by Will Podmore and Doug Nicholls, £8 (ISBN 0-9542112-5-1), is published by Bread Books, PO Box 1806, Coventry CV6 1YJ.
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Post by dodger on Oct 14, 2013 0:21:11 GMT
Stop the EU/India Free Trade AgreementIt is time organised workers here stopped believing in euro fairy tales of 'social partnership' with their corporate executioners within the EU and started to defend themselves by following the example set by Indian workers.
www.caef.org.uk/d123ldr.html
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Post by dodger on Oct 16, 2013 13:47:39 GMT
Brilliant demolition of the EU!, 12 May 2001 By William Podmore
This review is from: The Rotten Heart of Europe: Dirty War for Europe's Money. by Bernard Connolly.
THIS BRILLIANT book is a devastating exposure of the pretensions of those who want to rule Europe. It shows that the attempts to achieve monetary and economic union, and consequently political union, are bad for us. They will not bring monetary stability, economic growth or political harmony. Instead they will destabilise currencies, reduce growth and promote hatred between the nations of Europe. Economic and Monetary Union (EMU) is supposed to build on the experience of the Exchange Rate Mechanism (ERM). Britain's membership of the ERM forced us into a disastrous and quite unnecessary recession. After two years of suffering, Major said in July 1992 that Britain would soon be the leader of the ERM. Two months later, we were well out of it, and ERM had bermbed, as Jacques Clouseau, Major's mentor, would say.
ERM constrained British Government policy on non-monetary matters too. The Government appeased Spain over the fishing dispute to keep Spain happy about the sterling/peseta rate. So the Common Fisheries Policy, so damaging to Britain's fishing industry, is not an isolated EU aberration: it stems from the whole logic of economic and monetary union.
The ERM was described as the Eternal Recession Mechanism; EMU is likely to be Even More Useless. The ERM kept the poor countries poor; it did not help them to converge; it certainly did not help them to meet the Maastricht criteria. Spain's experience of ERM was catastrophic: 22% unemployed. The ERM forced Denmark into recession: unemployment doubled to 12%, the budget was slashed, and investment, output and wages all fell. In the ERM, Ireland's unemployment soared from 11% to 23%. ERM subordinated nations' economic interests to minorities' foreign policy goals: ruling class interests dominated working class interests. Some still claim that ERM and EMU could control capital, but actually they were and are attacks on the working class.
A 1992 report by the Monetary Committee, which advises the EU's Council of Ministers, admitted that ERM did not stabilise prices or money and did not reduce inflation. Perhaps it was after all just a tool for moving countries towards political union.
The book also depicts the present dangerous struggle between the French and German ruling classes for control over the proposed institutions of a single European state. Germany is determined to keep the Deutschmark and the Bundesbank: it wants EMU so that it can assimilate other countries into an expanded Deutschmark zone. France wants a new currency and wants to get its hands on the Bundesbank; it pushed for the Maastricht Treaty, which would destroy the Deutschmark. Who would control Europe's currency? Who would control the proposed new European Central Bank? Germany or France?
As Wilhelm Nolling, a Bundesbank Council member, said: "We should be under no illusion - the present controversy over the new European monetary order is about power, influence and the pursuit of national interests."
They are already fighting about the 1996 InterGovernmental Conference. Germany wants the economic criteria for EMU met as soon as possible: it insists that economic convergence must precede monetary union. France wants the earliest possible date for monetary union, believing that monetary union would produce economic convergence. Both are wrong of course: convergence cannot and will not be achieved, either way.
EMU's implications are universally unpopular. The workers of France, Italy and Belgium are striking against the EU's schemes. The Austrian Government fell in October, unable to pass the EU-required budget.
We can see both from ERM's effects, and from the effects of the attempted imposition of the Maastricht criteria, how damaging membership of EMU would be. It would cause, as intended, a permanent lowering of wages, a permanently higher level of unemployment, and massive cuts in public spending.
Connolly sums up: "My central thesis is that the ERM and EMU are not only inefficient but also undemocratic: a danger not only to our wealth but to our freedoms and ultimately, our peace. The villains of the story - some more culpable than others - are bureaucrats and self-aggrandizing politicians. The ERM is a mechanism for subordinating the economic welfare, democratic rights and national freedom of citizens of the European countries to the will of political and bureaucratic elites whose power-lust, cynicism and delusions underlie the actions of the vast majority of those who now strive to create a European superstate. The ERM has been their chosen instrument, and they have used it cleverly." >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Bernard Connolly was fired by the European bureaucrats after this book came out. If you read this book you will understand why. This book has all the detail you could ask for. It is an incredible expose of the events leading up to European Monetary Union.
If you support the European Community, reading this book will change your mind -- if you dare read it.
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Post by dodger on Oct 18, 2013 10:45:43 GMT
This month we look at two books – one short and one longer – that grapple with the two key issues facing Britain today: the European Union, and industry...
A farewell to the EU – and how industry starved to death
WORKERS, MAR 2013 ISSUE Time to bail out? The end of the European Dream, by Paul Dixon, paperback, 50 pages, ISBN 9781478193074, published by Paul Dixon, 2012, £3.99.
In this brilliant and original little book, freelance writer Paul Dixon shows why the euro was always going to fail, why further EU integration will, and should, fail, why we need an in/out referendum, and why Britain needs to leave the EU.
He notes, “That three attempts to lock sterling into external exchange rates should have led to four financial crises and subsequent devaluations [1931, 1949, 1967 and 1992] ought to have served as a warning to anyone intending on signing up for an exchange rate which, to all intents and purposes, would be permanent.”
He points out the simple fact that it is not possible to operate a single currency, with one interest rate and uniform fiscal restrictions across 17 entirely separate sovereign states, each with their own political agendas and economic needs. He urges a return to the drachma as the only possible recourse for the Greek Government, pointing out that the longer it waits to do this the greater the ultimate cost to both the Greek people and the other Eurozone economies.
Instead, the EU, led by Germany and backed by Cameron, wants greater integration, both economically and ultimately politically, as the only option available which could preserve the euro in its current guise. But this is unwanted, undemocratic and impractical. As Dixon observes, “the right of democratic nations to choose their own government, and for that government to then run their country as mandated by the electorate, would be eroded in the event of greater European political integration ...”
He remarks, “National identities are here to stay and by imposing financial hardships, neutralising national parliaments and even foisting unelected governments upon countries, the EU is only stoking the fire of nationalism.”
The EU commitment to the free movement of labour also raises important questions. Within a year, by EU order, Britain will have to open its borders to the entire populations of Bulgaria and Romania, whose current unemployment levels are 12.4 per cent and 7 per cent respectively.
This potential mass immigration from Eastern Europe is not to meet our economic or social needs, but to obey the EU’s diktat. Immigration is an economic issue. A greater supply of labour will force wages down even further and put more strain on our housing, healthcare and education. Dixon notes, “It is important...to reflect that a sense of pride in one’s own country, a feeling that your own culture, national characteristics, and achievements are precious and should not be ignored, downplayed or forgotten, does not make an individual inherently racist or bigoted.”
We need an in/out referendum. The parliamentary parties don’t want to let the British people have a referendum on whether Britain should stay in the EU or leave it. They are terrified of the answer that we would give.
Surrender: how British industry gave up the ghost 1952-2012, by Nicholas Comfort, hardback, 354 pages, ISBN 978-1849541459, Biteback Publishing, 2012, £20.
Fighting against factory closure at Plessey in Bathgate, near Edinburgh, 1982
Photo: Workers
The Labour Party has bought into the big lie that it does not matter who owns companies. But, as Nicholas Comfort points out in his survey, foreign ownership means that “when a British plant is doing well, the profits flow overseas – and when it does badly, there is nothing to stop the owners closing it down or transferring production somewhere cheaper. Decisions on where and whether to invest – and, of equal importance, to continue to invest – are taken abroad.”
Comfort notes that foreign ownership is promoted by investment banks. “In Britain, the moment an investment bank gets close to a family-owned company it encourages it to float on the Stock Exchange, paving the way for a takeover by a foreign competitor – with the bankers taking a hefty commission from both transactions and the national interest the loser.”
Comfort deplores the importing of cheap labour when the need was for higher productivity, also the short-termism of the City and the Treasury, and near-suicidal exchange rate policies. Tight financial policies force the pound up, making our exports less competitive. As he points out, the priority given to defeating inflation causes lasting damage to industry and society.
The Korean War “forced Britain, among others, to divert resources from civilian manufacturing into armaments – and in Britain’s case reduced home demand through a round of fiscal belt-tightening which not only hastened the defeat of the Labour government at the end of 1951, but proved after the event to have been largely unnecessary.”
He observes that Thatcher’s privatisations had an impact on manufacturing industry when centralised procurement or arrangements with a single supplier were abandoned, opening up everything from buses to telecoms equipment. Where this happened, “established British manufacturers from Leyland to Plessey were the sufferers.”
The Labour Party has also bought into the big lie that finance is more important than manufacturing industry. Comfort writes, “the reluctance of the banks to support any potentially productive venture when there are greater bonuses to be earned through the rashest forms of speculation remains a significant brake, not only on manufacturing companies’ expansion but all too often on their survival.”
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Post by dodger on Oct 31, 2013 12:00:06 GMT
Eurobriefs - The latest from Brussels
WORKERS, NOV 2013 ISSUE
Stuck with the treaties
CAMERON SAID recently he wants to “claw back” competences (powers) from the EU. In response, European Commission President Jose Manuel Barroso said the only way to reform the EU was to review the EU’s body of laws, the “acquis”, on a case-by-case basis.
He continued: “The other one is to have a fundamental discussion about the competences of the EU...the second approach is doomed to failure...Britain wants to again consider the option of opting out. Fine, let’s discuss it but to put into question the whole acquis of Europe is not very reasonable...the exercise of repatriation of competences...means revising the treaties and revision means unanimity.”
Neither Cameron nor Barroso wants to say that any change to the treaties means referenda. They know the EU has no hope of winning them. They dare not risk repeating the last fiasco over altering the EU constitution. They’re stuck.
Assault on Greece
THE EU is attacking and destroying Greece: 28 per cent unemployment, 58 per cent youth unemployment. Since 2008 GDP is down by a quarter and debt up from 120 per cent to 175 percent of GDP, 321 billion euros.
The IMF has forecast that Greece will need to cut a further 6.7 billion euros (3.5 per cent of GDP) by 2016. The EU is destroying Greece as surely as NATO destroyed Yugoslavia. The German ruling class knows that the Greek people supported the people of Yugoslavia when NATO attacked and dismembered it.
Ireland cuts again...
IRELAND’S LATEST budget includes a further 2.5 billion euros in cuts – reducing pensions, healthcare, and unemployment benefits for young people. The Irish Central Bank has cut its growth forecast for 2013 from 0.7 per cent to 0.5 per cent, warning the government not to relax its “austerity” (poverty) programme.
...as Portugal wields the axe once more
PORTUGAL'S LATEST “austerity” budget has cut a further 3.2 billion euros from pensions and public sector wages, and increased the retirement age. The government admits that this year’s deficit will be 5.9 per cent of GDP rather than the targeted 5.5 cent.
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Post by dodger on Nov 2, 2013 4:21:26 GMT
www.workers.org.uk/features/feat_1113/eu.htmlAlmost the entire political establishment, from coalition and Labour leaders to the TUC, may all unite to hold back the tide of opinion demanding a referendum. We must stop them... Why we need an EU referendum now
WORKERS, NOV 2013 ISSUE Thanks to the rare success of a private member’s bill (304 to 0 – Labour and Lib Dems largely stayed away), Cameron has been forced to offer a conditional referendum on the EU in 2017: conditional on his party getting back into power in 2015. The question will be “Do you think Britain should remain in the EU?” Cameron himself made it clear he would vote to stay in.
The headquarters of the European Commission, Brussels Photo: WorkersIn fact almost the entire political establishment from coalition and Labour leaders to the TUC may all unite to hold back the tide of opinion demanding a referendum. Those who have their snouts in the EU trough don't want to take the risk of losing their tasty pigswill.Some try to say we have had the debate on Europe ever since 1973 after Heath took us in. But how many people under 55 feel they have had the chance to say what they think of the EU now? There are many ways of closing down debate and one is to say we have talked about that enough.Unions in their sights The unions managed to put off – for the time being – the EU-inspired recommendations in the Beecroft Report, welcomed by Vince Cable, for collective bargaining at a national level to be terminated and for unfair dismissal rules to be abolished, to be replaced with simple notice of redundancy.But the EU’s sights are still fixed on our trade unions. In Brussels they call it “High Noon for Social Europe”, the moment of truth. In the Eurozone as a whole, according to the Eurobarometer poll, the number who do not trust the EU has doubled, including 68 per cent of Brits. Only 15 per cent in Britain support the euro. The Spanish minister Barroso calls us “political extremists” and “populists”. All the Commission can respond with is more proposals for wage erosion, copying the Irish and the Latvians – such a success story with their wage cuts, job losses, low growth!So long as we remain in the EU – whether in the euro or not – we will be subject to the same pressures as those in the eurozone. Ideas which have flowed from Europe include automatic wage indexation controlled by employers, the discouraging of workers from comparing wages with company profits, local pay setting, the notion of the “working poor”, tax breaks for living wage employers, living wage cities, living wage zones sponsored by Christian charities, and Fairness Commissions promoted by Labour and lazy trade unions...Non-working class organisations have sprung up in the vacuum left by the unions, and the implication is: don't bother with unions, we’ll get you a minimum wage (though it will have no legal force), and no more bargaining, no more fighting for what you collectively decide you are worth.These patronising ideas are alien to British working class traditions. They are designed to eradicate class consciousness and struggle, and encourage dependency, fulfilling the aims of the Commission as set out in various papers. Who is to say what we need to live on, other than workers banding together? We are allowing ourselves to be taken back to the 1800s.The European Council, Brussels, where ministers meet to rubber-stamp decisions. Photo: European CouncilThere is no longer any excuse for refusing to acknowledge that the so-called freedom of movement, including move-ment of labour – immigration, economic migration – is essentially about suppress-ing wages, the first and most primitive attack of capitalism on the working class.No wages, maximum profit, is the logic of capitalism. No one should be surprised at the revelations of zero hours contracts. The lowering of wages is not just incidental to membership of the EU, not merely an unfortunate spin-off – it is deliberate, it is one of the things the EU was created for.Proclaiming itself above the nations of Europe, the European Union is a mechanism for maintaining a perpetual army of cheap foreign labour to add to the British pool of unemployed, which historically was always engineered from time to time to restore profits.In the process, standards are lowered, including professional qualifications. Higher national standards than the EU norm are regarded as anti-competitive. Distance learning rather than hands-on training, is a tool to normalise cross-border activity.“Freedom of movement” is actually a myth. The movement is real enough – but the freedom is an illusion!Why stick with it? With all this evidence before them, why do our unions stubbornly cling to the EU?Opinion polls during the year show a majority may vote NO should there be a referendum – but not a big enough majority to enable us to rest on our laurels. If anything the polls show that we have much work to do to convince a significant minority. And at TUC conferences no union, even the RMT, has yet dared risk defeat by proposing an exit from the EU.Our Party says “Referendum Now!”, sooner rather than later. It is a long time to wait till 2017 and a lot can happen in that time – the Scottish referendum, and both European and British elections. All who want independence for Britain, the restoration of Britain’s borders, manufacturing, and housing that young people can afford, are allies in this referendum, and should not be denigrated. There are waverers too, frightened by dire warnings of loss of jobs and trade – for which there is no evidence. Although the phrase is “trade with Europe”, we still trade with individual member states.Employment rights As for loss of employment rights enshrined in the Social Chapter, or protective directives such as the Working Time Directive, these have been shown to be an illusion, or at best problematic and unsuited to the particular situations British workers and service providers face.We must seek to inspire confidence that there can be a future outside the EU. We should think carefully about all the different sorts of people that make up the working class, and why they think the way they do, including small manufacturers fighting for survival in the teeth of the transnationals. Many SMEs (small and medium-sized enterprises) want to leave the EU, then negotiate a trade deal with it.Contemplating the stages people go through towards grasping the implications of the EU, and how hostility to it has deepened over the years, we get a mental flash of the EU as a 21st-century version of Dante’s Inferno, with its nine Circles of Hell.Dante is taken on a journey of increasing political awareness of the greed, fraud, treachery and violence among the politicians of his day. He is accompanied by his guide, the Roman poet Virgil, who first shows him a roomful of uncommitted people, including philosophers, writers and academics – the chattering classes of the ancient world. They are in Limbo, a sort of anteroom to Hell, unable to make up their minds which side they are on, if any.Is that still the state of half the working class? Are people cynical, inured to corruption everywhere? At home they see MPs, police, judges, bankers. But how much more difficult it is to root out corruption thousands of miles away.Are some sections still uncommitted because they see the EU merely as a bureaucratic irritant rather than a serious danger? Those early bureaucratic directives – the size of the British pint, the precise curvature of bananas – were really the opening salvos in the attack on our sovereignty. (And no laughing matter for one greengrocer, the so-called metric martyr, who was driven to suicide.)Do workers believe that the more unpalatable aspects of the EU can be sweetened, reformed?Competences It is clear already from Hague’s Balance of Competences Review that the government will get the answers it wants. It’s obvious that if they only consult big corporate groups like the CBI, or the Russell Group of universities, or the TUC, they are bound to get broad support for staying in. But this exercise does not reach the worker in the street, or the rank and file union members trying to protect their jobs. It is intended to obstruct and reconfigure popular opinion before the referendum.The TUC questions Hague’s methodology, but clings to the old illusions: More Social Europe please. Please sir, can we have some more? Pathetic supplication! Frances O’Grady at Congress says: “Stick together and neoliberalism will take its last gasp.” What do they think the EU is about?Cameron’s renegotiation and repatriation of competences will yield negligible results. He will return from Berlin waving a piece of paper. There will be protection for bankers, nothing for workers. Immigration, crime and red tape will be mentioned, but not resolved.Re-negotiation will not touch the fundamentals of overarching EU power such as free movement of labour. We may yet need to consider ways of leaving without a referendum. Labour and the Lib Dems will be able to oppose a referendum on the grounds that there has been no material change in our relationship with the EU.This masks the fact that the material change took place years ago, with the Maastricht and Lisbon Treaties intended as the definitive blow against the concept of a sovereign nation. This should be the referendum on the EU Constitution, the referendum we never had. It should be the British people’s judgement on the weasel way our governments have wriggled out of consulting their people.The legacy of Thatcherism, the lifting of exchange controls, paved the way for EU liberalisation, for Germany’s success. The EU with its rules on state aid and procurement did the opposite of liberating Britain. It has attempted to force the break-up of British industry – war by other means.In the real world (as opposed to Dante’s vision) it is not the rich and greedy, the warmongers, the fraudsters, the traitors who are suffering, it is the exploited working class.So, where are we today? We know that democracy plays no part within the EU. Britain should take a leaf out of Iceland’s book, where both parties recently campaigned and voted against EU membership. Their foreign minister said: “This is how democracy works.”We are now out of the comfort zone of Hell's waiting room, but not so far down the pit that we can’t get out. However, first the working class has to recognise how grim the alternative will be. Make the connections. Not see just a little piece of the jigsaw and think the other pieces don't matter. To vote out, they have to want to get out.We have a duty, in our unions and other organisations, to act the guide like Virgil to show the doubters why they must get out. ■ This article is an edited version of a speech given at a CPBML public meeting in London in September.
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Post by dodger on Nov 30, 2013 7:01:51 GMT
www.workers.org.uk/news/news_1213/trafficking.htmlTrafficking - 50 per cent rise
WORKERS, DEC 2013 ISSUE Detected cases of people trafficking during the last 12 months in Britain rose by 50 per cent on the previous year. These included 371 children being used as domestic slaves or being sexually abused and, in one horrific example, a Somalian child brought specifically to harvest her organs; the child was intercepted by police. The traffic in women increased by 12 per cent, men by 33 per cent.
The Anti-Slavery Society, a Victorian museum piece, has seen its membership rejuvenated. 2013 has seen two prosecutions under anti-slavery legislation in 21st-century Britain. Workers must stand firm against those who promote such a trade irrespective of what façade they hide behind – culture, clan, tribe, caste, gang, family etc.
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Post by dodger on Nov 30, 2013 14:06:30 GMT
Jilted by the European Commission
WORKERS, DEC 2013 ISSUE
The TUC and trade union love affair with the European Union began in the dark days of Thatcher, when then-President of the European Commission Jacques Delors addressed Congress and said Europe would save them from Thatcherism. It was always a false boast. Now even the boasting has stopped.
Under the REFIT (“Regulatory Fitness and Performance”) proposals the Commission will review EU legislation on workers’ rights. In language familiar to British ears it talks of “easing the burden” on business and of making EU law “lighter and simpler”.
It’s doing this by “streamlining” directives on information and consultation rights in collective redundancies and business transfers (in particular, the transfer directive known as TUPE), despite a recent review concluding they were “fit for purpose”. Nothing that could even slightly get in the way of capital is to remain.
Plans to extend these rights to smaller companies and the public sector have been shelved, permanently. Nor will the Commission be going ahead with legislation on illness or injuries associated with screen displays, tobacco smoke or carcinogens. And there will be no legislation on health and safety in hairdressing which had been agreed between unions and employers.
The European Trade Union Confederation says it only accepted the internal market on the proviso that there would be strong “social” rules. More fool it, and more fool anyone who believes in the EU. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Maybe me just getting old and corny...."If anything looks too good to be true--it probably is." Certainly was with the EU...TOO GOOD TO BE TRUE. Didn't mummy tell me?
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Post by dodger on Dec 2, 2013 8:57:28 GMT
Eurobriefs - The latest from Brussels
WORKERS, DEC 2013 ISSUE
Megalomaniac Merkel
German Chancellor Angela Merkel wants the EU to have more powers over eurozone members’ national budgets. Merkel wants legally enforceable contracts between the European Commission and individual states. These would set out obligations to maintain budgetary discipline and improve competitiveness; in other words, to reduce public spending and lower wages.
Waiting for assurances...
British, French and Spanish intelligence services have been regularly sharing data with the US National Security Agency, which is said to have monitored Angela Merkel’s phone and those of 34 other heads of government. On 23 October MEPs voted to suspend the Terrorist Finance Tracking Programme with the US because the NSA has been spying on EU citizens’ bank data. The resolution is non-binding. EU Commissioner Cecilia Malmström said the US had given explanations and assurances and that there were no indications that the agreement has been violated. She is “still waiting for additional written assurances”.
Rules? What rules?
Barclays Bank believes it can avoid EU rules capping bankers’ bonuses by splitting pay into three elements including a new monthly sum based on an employee’s responsibilities.
The Mafia Union
Italian MEP Sonia Alfano, who chairs the European Parliament’s Special Committee on Organised Crime, said in an interview with Euronews, “Sadly, the mafia is already in the control room when it comes to Europe. [They] have advance knowledge of what is happening, where it’s happening and who is taking the decisions. They have relations with people within all EU institutions.”
San Marino still not in
A referendum in San Marino to join the EU failed; only 20 per cent of its people took part, so the minimum threshold of 32 per cent was not met. The tiny state has voluntarily adopted the euro, but does not fit EU rules. This is the third attempt since 2010 to force it into the EU, but the first time there has been a vote. ■
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