Tag Archive for CPI

Another Europe is possible—another EU is not

The Communist Party of Ireland expresses its solidarity with and welcomes the decision of the British electorate, with working people having played a decisive factor to vote to leave the European Union. 
The decision of the people is a victory over Project Fear, unleashed by big business, global banks and financial institutions, with the EU and the ruling elite throughout the EU, including the Irish government, playing back-up. We congratulate those in the north-east of Ireland who had the opportunity to vote in the referendum and voted to leave. 
We call for a new referendum here in the Republic on continued membership, coupled with a halt to any further or deeper integration within the EU. We need to reassert national democracy and sovereignty. Also required is an end to the secret negotiations by the institutions of the EU and the United States regarding TTIP. 
The working people of Britain have sent a resounding message to London and Brussels, that they have had enough of the bullying, enough of permanent austerity, enough of putting the interests of big business above those of the people. This is also significant rejection of the straitjacket economics of the EU. The political and economic strategy of the EU is an affront to democracy and the ability of people to democratically decide their countries’ economic and social priorities and possible alternative direction. 
Throughout the EU, millions of workers will welcome this vote to leave, which may well mark the beginning of the end of the EU itself. Project Fear, masterminded by the EU, has been used to bully the Greek, Spanish, Italian, Cypriot and Irish people into accepting debt slavery, that there was no alternative but to bail out the banks and speculators over the rights of the people. But not only them: this strategy has been used against all working people right throughout the EU, using fear to impose the feeling that there is no alternative, using it to mask savage attacks on workers’ rights and conditions, and the further erosion of democracy and national sovereignty. 
The cycle of fear has now been broken. Working people need to take the opportunity now presented to assert their own demands throughout the EU, to assert themselves and build unity of action against these massive assaults. 
Now is the time for the mobilisation of working people to assert that there is a progressive left democratic alternative to the the plans and strategies being imposed big business through the institutions of the EU.

The Brexit debate and the left

Letter in the Irish Times http://www.irishtimes.com/opinion/letters/the-brexit-debate-and-the-left-1.2674376

Sir, – Many people will have been repelled by the selective xenophobia of the Brexit campaign, concluding there is little option than to vote to Remain in the EU for fear of being tarred with the same brush. However, we would all do well to consider the membership of the “Remain Club” – the combined forces of international capitalism, including the World Bank, IMF, multinationals, the US and, of course, the European Central Bank itself.

As a result of the Brexit campaign, the idea that a country might retain a degree of sovereignty and border control has been rendered toxic and even racist. This despite the fact that it is commonplace around the non-EU world! Nor can it be in the interests of countries to see large numbers of their working population leave, many never to return.

The postwar democratic consensus of full employment, public ownership and a welfare state has been systematically dismantled. In the event of a vote to Remain we will see a continuing attack on the public sector and privatisation of services as the EU moves towards federalism.

The next step is TTIP (Transatlantic Trade and Investment Partnership), an agreement with the most far-reaching consequences to date. In essence this elevates a multinational company to have the same status as national governments, will erode further the right of a state to protect its citizens, and force states to go to a third party to justify its actions if a company deems these to have eaten into its profits!

Tell the people of Greece, Spain, Portugal and Ireland that the EU has equality as a priority. When equality has come up against the interests of employers, the latter have won (check the Viking Line and Laval judgments).

There are those in the trade union and labour movement who argue that membership of the EU will protect our members’ rights and conditions. What have they got to say about Greece, with the destruction of wages, pensions, jobs, healthcare and the forced sale of public assets and enterprise on the insistence of the EU? Or France, where the social democratic president’s decision to proceed with legislation to remove the legal protection for working hours and wages at the insistence of the EU, despite political opposition, widespread protests and national strikes? Or Ireland, where the EU insistence that no more than 2 per cent can be spent on social initiatives or infrastructure to alleviate the effects of austerity, which was caused by irresponsible behaviour of world and European banks, irrespective of GDP growth?

Britain does pay in more to the EU than it receives. The common fisheries policy has decimated the local fishing industry. There is endemic waste through the common agricultural policy. There is a trade imbalance which other countries will be loath to lose after a vote to leave. Of course, we are under no illusions that money no longer spent on EU membership will used to replace current funding, which will in any event stop as other regions take precedence. We would have to fight hard to achieve this. The point is though we would be able to do so, a capacity we will lose if the vote is to Remain.

The consensus on the impact of Brexit on Ireland is that a “Border with attitude” is unlikely and even far-fetched. There are precedents for relaxed borders between member and non-member countries.

The headline debate reflects a disagreement about the way ahead for British capitalism, and we are under no illusions regarding the anti-working class credentials of the Brexit Tories. However, a vote to Remain will further erode the capacity to defend living standards, the public sector and in particular the NHS.

The Communist Party of Ireland has opposed the “European project” in all its guises, and we take no pleasure in saying that what we predicted has happened. We support a left exit campaign – a Lexit! – Yours, etc,


Northern Area


Communist Party of Ireland,


Vote for withdrawing from the European Union

Starry Plough

Statement by the Communist Party of Ireland

1 March 2016

The Communist Party of Ireland expresses its solidarity with all progressive forces in Britain, and in particular with the Communist Party of Britain, in the forthcoming campaign for Britain to withdraw from the European Union. In particular we call on working people in the north-east of our country to vote for leaving the EU.

A vote to leave can be a vote for a different way forward, a vote against the deepening global militarisation of which the EU is one of the driving forces—not alone within the wider European continent but around the world.

A vote to leave would also call into question the southern Irish state’s continuing membership of the EU and reopen opportunities for working-class struggle on the national level.

We should not be distracted by the fact that very reactionary and chauvinist forces, nostalgic for the days of the British Empire, are also opposed to the European Union. We support the demand for withdrawal not on some narrow nationalist grounds but rather from a working-class internationalist position. There is a need to break the unity of the European monopolies, to break the unity of the European employers’ network of control, by dividing them, which can only weaken the whole. A withdrawal by Britain could well trigger a response from working people in other member-states to campaign also for withdrawal. It would break the fear that the EU has so successfully propagated, that outside the EU lies economic disaster.

The deal worked out between the British state and the EU institutions is a further attack on the rights of workers throughout Europe, especially migrant workers, the most vulnerable section of the working class.

The struggle against the European Union is essentially a struggle for democracy and sovereignty. It is an anti-imperialist struggle, one that some formerly anti-EU forces in the north-east of our country have walked away from, retreating into an idealised “critical engagement” with imperialism.

We reject the illusions being peddled in support of these arguments. They undermine the potential for bringing unity to our people on a progressive basis. It is wrong to present the idea that the EU is a potential bulwark against attacks on workers and environmental rights. These are false arguments. The EU and the treaties since the Maastricht Treaty of 1992 have been for institutionalising austerity, consolidating the interests, influence and power of the big European monopolies specifically but also monopoly capitalism in general.

The attacks on workers in all Ireland will continue, inside or outside the European Union. Membership does not guarantee protection from attacks on workers’ rights and conditions—far from it: all the central institutions are above democratic control and are accountable to no-one, as designed by treaty.

The EU Central Bank, which is the central institution for imposing EU economic and monetary policy, is run by and for finance houses and big banks. The EU Commission is the guardian of conformity with the fiscal, political and military strategy of the EU. Attacks on workers, fiscal control and the primacy of the “market” above all else are hot-wired into the EU.

We do not accept that the EU is the source of, or has the potential for, progressive social and economic change, either at a transnational or the national level. EU laws, directives and institutions are designed to prevent and block change at the European and the national level. The Lisbon Treaty of 2009 consolidated the power and ideological influence of big business over the policies and the institutions of the EU. It enshrined the primacy of EU directives (i.e. laws) over national laws, in effect making illegal any progressive alternative economic or social policies. As far as the EU is concerned, there will be no way back to any serious democracy at the national level.

The anti-democratic nature of the EU and the absolute power of European big business over it will be further consolidated with the adoption of the Transatlantic Trade and Investment Partnership (TTIP).

The Communist Party of Ireland calls for the broadest coalition of progressive forces to campaign for British and also for Irish withdrawal from the European Union.

CPI encourages active engagement in the right2change initiative

By Eugene McCarten

Taken from this months Socialist Voice at http://www.communistpartyofireland.ie/sv/02-right2change.html

The trade unions that, together with the communities resisting the imposing of water charges, have been the mainstay of the Right2Water campaign have taken a bold initiative in launching the Right2Change consultative process.
They are sponsoring what will be a whole series of public forums around the 26 Counties. The first series of meetings took place in late September, with more being planned for October and November.
These forums will provide an opportunity for the trade unions and the communities to come together, to share experience and learn from each other. The unions have developed a policy platform on which they wish to engage the communities in the period coming up to the general election. They have developed policy positions on a number of important areas, including the following:
• Right2Water
• Right2Democratic Reform
• Right2Jobs and Decent Work
• Right2Health
• Right2Housing
• Right2Education
• Right2Debt Justice
• Right2Equality
• Right2National Resources
• Right2Sustainable Environment
In their statement they outline a series of political principles that should underpin a future progressive government. These were first presented in draft form to a May Day conference organised by the Right2Water unions, which was followed by a consultation process that culminated in a conference in June that amended and adopted those principles. The document emerging from that process addresses a range of areas, including housing, health, education, and water.
The Right2Change campaign is seeking to win public and political support for what its spokesperson, Brendan Ogle, termed “a fundamental change in the way we view our economy and our society.
“These policy principles are merely a starting point,” he said. “That is why, in the coming weeks, we will be organising meetings throughout the country to continue the process of consultation started on May Day.”
The unions have published a fiscal framework that could allow a progressive government to increase spending by more than €9 billion over the next four years, allowing a future government to tackle some of the biggest crises in the state.
Right2Water and Right2Change are encouraging everybody to come along to these meetings as we all endeavour to make Ireland a better, fairer country. Everyone concerned about the future of our country should actively engage with these forums.
The CPI will be attending, presenting its ideas and demands in relation to the debt, membership of the EU, and the euro, as well as arguing for a much more radical transformative strategy, one that is aimed at weakening and breaking the power of capital and strengthening the power and capacity of the working class to defend and advance its own economic and political goals.
This is a battle for a new way forward, to lay before the people the central challenges they face and the fact that there is no simple or easy way forward, that they should not allow their anger and their independent demands to be drawn into mere electoralism, buried in parliamentary procedures and rules.

Building an economy for the common good

24th Desmond Greaves Weekend School

An economy for the common good

Eugene McCartan, General Secretary, Communist Party of Ireland

16 September 2012

Firstly I would like to thank the organisers for the invitation to speak this morning at the 24th Desmond Greaves Weekend School, an event that has become an important arena for discussion and debate, raising issues and presenting challenges to all those who believe in and are committed to the struggle for national unity, sovereignty, and democracy.

This debate is timely, coming at a time when many of our fellow-citizens are struggling to make ends meet, a period in which inequality is growing, unemployment is growing, and mass emigration is laying waste towns and villages around the country.

The whole fabric of our society is being pulled asunder, with a crude and growing commodification of all areas of human life. So for us to be debating “an economy for the common good” is absolutely central, as we know that our people will experience even greater hardship in the coming years.

Our planet can no longer sustain monopoly capitalism. We now stand on the precipice of what may well be an irreversible process of significant climate change that is already affecting us as a people and will have devastating consequences for hundreds of millions, if not billions, of people.

This great crisis of the system has exposed to millions of people the true nature of the system that governs their lives. The crisis has also shattered the illusion, carefully crafted by the mass media and other apologists for the system, that capitalism has overcome and has passed beyond its structural weaknesses and cyclical crises of slump and boom.

We are also witnessing how really shallow this democracy is, although flaunted and touted around the globe by the imperialist elite, backed up by massive military firepower and imposed as the best and indeed the only possible form of democracy there is. Yet we have witnessed two elected governments removed within the EU—the Italian government and the previous Greek government—two more removed in Latin America, and the surrounding of Venezuela with numerous military bases.

The living standards of the majority are being reduced, and public services are cut to shreds in order to sustain and enrich a financial oligarchy and to bolster the profit margins of corporations. James Connolly put it well in 1915: “Governments in capitalist society are but committees of the rich to manage the affairs of the capitalist class.”

If we reflect back on the ninety years of partition we can see that we have two failed entities. This state has failed our people economically. The Irish ruling class has overseen mass emigration, generation after generation of people seeking work in other countries. Large sections of our people have experienced generational poverty, chronic bad housing, and constant high levels of unemployment, interspersed with brief economic spurts.

The class that won out with the victory of the counter-revolution in 1922 were happy to maintain and sustain the economic structures and relations built up over centuries of colonial plunder, resulting in uneven economic and trade relations.

This relationship of dependence was built in to the partitionist settlement, because it was in the interests of people like William Martin Murphy and his class: it was in their class interests, just as it was with unionism in the North, whose industrial basis was dependent on its links to the British Empire and its global network of exploitation. Neither this state nor the statelet in the North has served our people well.

The development of public companies in the South did advance economic development and stabilise the decline in population and emigration. The state developed aspects of the economy that Irish capitalism was unwilling to develop. But these were developed to bolster native capitalism. This economic strategy ran its course and was replaced with a policy of opening the country up to mobile transnational capital.

We need to understand the forces at work in the present crisis, otherwise an “economy for the common good” is merely a utopian idea, doomed to fail. The vision of a better society must be linked to a strategy that is based on an understanding of class forces and class interests.

The economic system of capitalism is now in deep crisis—a crisis that can only deepen. It is global in proportion and is systemic and cyclical: crises are an inherent part of the system itself. At its core this is a crisis of over-production.

As it is driven by the profit motive, capitalism must constantly expand, to the point where it saturates existing markets and plunges into crisis and recession. It is a system based on the premise of permanent growth in order for it to survive. If profits decline or stagnate, then the whole system itself stagnates. It is driven to constantly expand its markets, to commodify all aspects of people’s lives and needs.

But how can we have permanent growth on a planet that has finite resources?

This present crisis was triggered by a combination of over-production and growing financialisation: speculation in financial products such as derivatives. The consumption of commodities has been increasingly achieved by the availability of easy credit—in other words, debt.

What is also becoming more apparent is that there is now little or no discernible period between recession and small growth spurts. It is like a football bouncing down the stairs: the bounce is shorter but domed upwards in a downward trajectory.

In Ireland the trigger was the over-extended banking system in the massive housing bubble, coupled with heavy speculation in the European and global property markets by Irish and other speculators using Irish financial institutions.

Under orders from the EU to prevent the collapse of the German and French banking systems, the Irish state took complete responsibility for the massive corporate debt built up within Irish financial institutions—cheap money loaned by German, French and other international finance houses to Irish banks for speculative investments.

This debt has now been placed on the backs of our people, a debt that now stands at about €47,000 for every single person in this state. It is not the people‘s debt: it is an odious debt, and we should not pay it. This is a transfer of wealth from the people to the monopolies. The EU has created structures of debt-dependence between the periphery countries and the centre.

This year alone we will pay €7 billion to service the debt. In the last four months of 2012 alone this state will have handed over about €2 billion to unsecured bond-holders, while the government wants to cut €3½ billion from government spending.

So where is the drive for savage cuts coming from?

Within the European Union the crisis is worsening as the policy options open to the EU elite narrow and the crisis of the euro deepens. Germany is beginning to slide, and it was to be the bail-out master.

The solutions presented by the external troika, eagerly supported and implemented by the internal troika of the three main establishment parties, is working. Austerity is working, as planned. It was designed to shift the burden of the crisis onto the backs of working people. It is for transferring wealth from working people to the big monopolies. It was never designed or intended to solve the people’s problems.

The American speculator and multi-billionaire Warren Buffet remarked in 2006 that “there’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.”

The crisis has presented an opportunity for a globalised offensive by monopoly capitalism. Throughout the capitalist world tens of millions of people are unemployed or under-employed; more are pushed into precarious employment.

We can see the same approach here in Ireland, with savage cuts in health and education and other public services, and workers facing wage reductions coupled with increased charges and taxes. Poverty and homelessness are growing; workers are being forced to work harder and longer for less; retirement ages are going up; social benefits and public services are being cut; workers’ terms and conditions are under constant attack.

What has taken decades of struggle and sacrifice by working people is being undermined and taken away on a scale not experienced before. And yet we know that the rich here in Ireland, like their counterparts abroad, are still getting richer while the poor are getting poorer.

One has to ask, What exactly is the point of economic development if it’s not to improve the lot of the people?

A number of scenarios are being put forward that I think we should look at.

The government, the EU and the IMF have all identified debt repayment as the most important priority. To achieve this they tell us we need to do a number of things:

—to hand over the bulk of the National Pension Reserve fund (or our sovereign wealth fund), pump it into failing banks, which in turn hand it over to German and other EU banks;

—to cut government spending and reduce the role of the state in the economy;

—to further deregulate the economy; —to privatise state-sponsored companies—that is, to hand them over to foreign capital, which in turn will only further weaken the economic and political sovereignty of this state;

—to give priority to handing over the bulk of the capital raised through the sale of our public companies to repay corporate debt;

—to open up further the commercialisation of public services, with services provided only if private companies can make a profit; and as international experience shows, these services will be dominated by foreign monopolies;

—to adopt a stimulus strategy that is centred on promoting private companies over state companies—in other words, to bloat the profits of private corporations;

—to continue to entice transnational corporation to set up her as the primary industrial strategy;

—to drive down workers’ pay, terms, and conditions.

On the left, some people have been calling for

—a strategy for growth, so that we will generate more wealth and thereby pay the debt without cutting services;

—talking to our creditors and getting a better deal on the promissory notes;

—some sort of “left-wing” austerity programme: cutting this and not that;

—taxing the rich;

—some possible re-heated Keynesian approach (this of course ignores the reality that EU rules outlaw state intervention that interferes with the market);

—a return to “social Europe” definitely ruled out by the latest treaty.

Others, such as the leadership of the trade union movement, wish to keep their heads down and hope, with the Labour Party in government, that they might protect workers’ interests.

Yet these two approaches bear similarities. They do not challenge the illegitimate nature of the debt imposed upon the people. Repudiation is on the agenda. They do not challenge the anti-democratic role of the EU, imposing the central thrust of economic and social policy and priorities. We can vote for whoever we like, but the policies must remain if not the same then within very narrow parameters.

So, if we wish to move forward we have serious questions to confront, and we have to be honest with our people. I believe there is no lasting solution to the problems facing our people within the existing economic system and the present economic, political and social framework.

What has recent experience shown us?

Decisions are determined by the dominant economic forces within any given society. The Irish establishment are committed to maintaining and deepening their relationship and links with the European Union and the United States—with imperialism. It is in their class interests to do so, as it was in 1922. The policies pursued by Fianna Fáil over the last sixty year have been the gravedigger of its own demise. That element of Irish capitalism is historically exhausted.

The policies of the EU are made in the interests of the big monopolies—in the interests of imperialism. I use this term because it best reflects the class character, the nature of the European Union itself. It is an imperialist bloc. I do not believe that it can be reformed, or transformed into anything other than what it is.

Any alternative economic and political strategy must take this fact into account. We do not have “European partners,” which would imply equality among member-states, for we clearly have no such thing.

What we need is an alternative political, economic and social strategy, one that is centred on the people’s needs and interests—a strategy that will create balanced economic and social development; a strategy that will undo the uneven development that is inevitable under capitalism; a strategy that is environmentally sustainable; a strategy that is based on the interests of all our people, north and south—in other words, a strategy for socialism.

To overcome the anarchy of capitalism we need to plan the use of capital investment in a way that can develop the economic and social base of the country in a targeted way, first and foremost on what benefits the people. So the control and use of capital is a central question.

Our natural resources are abundant and, if carefully developed, could provide significant economic and social development. These are resources that can be developed on an all-Ireland basis. So the question of who owns them and how they are developed is important.

Making use of the intellectual potential of our students, academics and institutions is another area to advance, taking a more scientific approach and investing in high-tech industries. Much intellectual energy and talent is wasted in useless competitive research, skewed to meet the needs of transnational capital.

Building an economy for the people requires the active participation of the people. It will require the deliberate and conscious mobilisation of the people. It will require a radicalisation and rejuvenation of the trade union movement, a movement now tied up in the ideological straitjacket of “social partnership.” We are reaching the point where it either becomes radicalised or staggers on towards being redundant for many workers.

Democracy would have to move beyond the very narrow framework that is now allowed today. Parliamentary and electoral struggles are only one aspect. To reduce the people’s aspirations to the electoral arena is to draw their dreams and aspiration into a swamp.

Democracy must be about empowering people in every aspect of their lives—political, economic, social, and cultural. The deepening of democracy is the only way in which we can end the exploitation of man by man, to create genuine equality between men and women and between nations.

A people-centred economy requires shifting the balance of forces from capital in favour of labour. Socialism and social change require the conscious understanding and conscious action of working people. That means challenging people’s understanding of events around them to inform and educate them, to assist in drawing lessons from their own experiences. Struggle changes people; it enriches their understanding of who they are and what they can achieve.

The European Union is a major obstacle to progressive change. The main controls on economic and social development lie with the EU, which uses them to maximise the interests of monopoly capitalism and to close down any possible challenge or alternative to its power and interests.

The adoption of the euro has left monetary policy to be determined by the major economic players. This prevents us placing democratic controls or determining democratic investment priorities and the use of capital.

The Irish ruling class

The Irish ruling class in the main have made their bed with international capital. It is integrated in and depends upon that relationship to maintain its control. They are the gatekeepers for the imperialist interests of the EU and the United States.

If we are to move to an “economy for the common good” we have to present it at its core as a struggle for national democracy, a struggle to re-establish sovereignty—but not democracy and sovereignty in the old way. It is about a much more radical democracy and sovereignty, from government to factory, office, shop, community, and home.

The immediate struggle is against austerity, to oppose the odious debt and resist privatisation—the robbery of the people’s wealth.

Strategy for a way forward

We need an alliance of progressive forces to bring about a progressive radical government, centred on the working class, with working people mobilised around the following demands:

—to challenge the hegemony of the European Union; a more radical expression and assertion of national democracy and sovereignty;

—to assert democratic control over capital; this requires a break with the euro

—to establishment a state development bank;

—to take control over natural resources;

—to harness human and intellectual resources, placing them at the service of the people

—to repudiate the odious debt.

What forces still have historical momentum?

The forces of Irish capitalism have run their historical course, and I would argue they no longer have the strength to push forward. The only force that can bring about radical change is a mobilised working class and all working people. It is a struggle against imperialism and for national liberation, with democracy as its central goal, to give dignity and respect to all our people.

It has to be national in character to maximise the contribution of the working class and remove all imperialist influence and controls. It also requires reaching out to and building allies throughout Europe.

Democracy and a democratic state are also the only way we can end the scourge of sectarianism and its use as a political weapon in the North of Ireland.

An all-Ireland economic strategy is the only way to end the triple marginalisation experienced by the people of the North. They have little if any influence in London, little if any within the EU, and little in Dublin. An alternative radical economic and social strategy has the potential to draw significant sections of the Protestant working class to see that this strategy and approach is in their class interests.

Central to all this approach is building the class-consciousness of working people and their mobilisation as a political force—essential if we are to avoid further “bitter betrayal and heroic defeats”!

As Connolly put it, “only the Irish working class remain as the incorruptible inheritors of the fight for Irish freedom.” The liberation of the working class will finally see the liberation of Ireland.

CPI Pamphlet Repudiate the Debt

Repudiate Debt Thumb

Repudiate the debt pamphlet

This pamphlet is a contribution to the debate that is urgently needed in every home, village, town and city, by all public and private-sector workers, the unemployed, small business people, the self-employed and family farmers in relation to what our establishment calls Ireland’s “sovereign debt.” The socialisation of private and corporate debt, making our people pay a debt they neither caused nor are responsible for, constitutes the biggest transfer of wealth ever from working people in Ireland to foreign banks in Germany, France, and Britain.

Our country is being dictated to and controlled by the European Union and the International Monetary Fund, not in the interests of our people but in the service of global finance houses. Our people, our children and future generations have become virtual indentured labour for as long as it takes to pay off the debts of a speculative clique–the Golden Circle–that has controlled our country. They will sell off more and more public companies and
assets, including our rich natural resources, in their efforts to pay
back money owed to these bankers.

We are calling for the repudiation of this illegitimate, perpetual and unpayable debt. Working people have a choice to make. Do we sacrifice all that we have struggled for over many generations? Are we going to sacrifice our children and grandchildren and future generations to pay a debt that does not belong to us?

Interview with Eugene McCartan

Voz do Operário Interview with Eugene McCartan, General Secretary, Communist Party of Ireland

December 2010

During the 90s Ireland was appointed by the so-called experts the Celtic Tiger, as a comparison with the Asian countries that presented high economic growth, but it seems that the bank crisis reveals a totally different scenario. Was this a consequence of the economic model pursued by the several Irish governments or the direct action of the markets upon the weaknesses of the Irish economy?

This is a finance crisis, yes, but it is also a crisis of the capitalist system, and so it has exposed the weakness and superficiality not only of the Irish economy but of the global capitalist system. The particular sharpness of the crisis here, in the form of jobs and sovereign debt, is a direct result of the Irish state’s policy of subservience to the European Union and to monopoly finance capital. It cannot simply be attributed to a particular government’s policies and the media-backed ideology of individualism and greed that supported it: it must be seen in the context of Ireland’s position as a neo-colony or peripheral state within the European Union.

In the late 1960s the state deliberately abandoned any pretence of an independent economic policy in favour of foreign direct investment, in particular from American transnational corporations and then in subservience to Franco-German needs. Over time this manifested itself in two particular features. Firstly, domestic jobs and control over development were sacrificed for the lure of Intel, Dell, HP, Microsoft, Google, Pfizer, and others. And secondly, Ireland was flooded with the surplus capital created in the German economy that ultimately fuelled the property bubble, which was both the rise and the downfall of the so-called Celtic Tiger.

Globally, the crisis of over-production in manufacturing and the huge profits created by monopolies have created a crisis of over-accumulation. This accumulated capital requires an investment opportunity, and finance has played the central role of a pressure-cooker valve, first in stocks and shares and then increasingly in complex gambling tools known as derivatives and securities.

Globally, the financial economy is worth several times the real economy, and Ireland is a prime example of this. The banking industry grew to several times what it should have been, with Ireland boasting some of the largest banks in Europe, in such a small economy. The growing importance of this industry within the economy gave rise to speculative bubbles, such as the property bubble, as the primary source of economic growth. Consequently, the financial crisis that recently erupted exposed the particular vulnerability of the incredibly short-term and foolishly built Irish economy.

With the German economy running surpluses, the accumulated capital needed an investment opportunity. Peripheral countries in Europe were flooded with cheap credit, which was passed on to businesses and individuals and fuelled a speculative property boom and the bloated finance, insurance, legal and construction industries. The Irish economy relied on this bubble for jobs, tax revenue, and growth.

It was all superficial. Real development was sacrificed to underpin this speculative growth, which left a handful of people extremely wealthy. When the “house of cards” collapsed, the real state of Ireland was left exposed: poor health and education systems, a sub-standard IT infrastructure, a dismantled and neglected domestic manufacturing sector—and the list could go on.
Was there a reflection of the high growth rates in the salaries of average working people during that period or, on the contrary, the sacrifice of social benefits weren’t compensated by increases in the salaries?

The myth of “trickle-down” economics has been exposed. It could more accurately be described as “trickle-up” economics, as during the “good times” public services were dismantled to open up more profit-making avenues for the wealthy; tax relief was given to the wealthy, who paid the least tax; and wealth was increasingly concentrated in fewer hands. The much-vaunted rise of the “middle class” has equally been exposed as being based not on a real increase in wealth but on the irrational increasing value of their biggest debt: their home. With this collapsing and never likely to return to those irrational values, the so-called middle class now constitutes the bulk of working poor, indebted for the rest of their lives.

The so-called “social partnership” brought no social benefits or legislative benefits for workers and instead provided only inflation-rate increases. The increased consumption ability of working people was not based on increased wealth or an increased share of the pie: it was based on debt. Rising house prices enabled the owners to borrow more. The latest DVD player and flat-screen television was bought with shop credit; the car was bought with a car loan; the family holiday was paid with a loan from the credit union or the bank; and the credit card was used to pay utility bills and even to buy groceries.

There was no real or substantial trickle-down, nor a real growth in wages. The rise of the “middle class” was entirely based on debt and increasing indebtedness. In real terms, social wealth was privatised and transferred gradually to the rich. This is now being done on an unprecedented scale through the socialisation of banking debt, the recapitalisation of banks by the state, and an all-out assault on working people’s services, jobs, and terms and conditions of employment.
The loss of social benefits was criticised by the CPI, but this criticism doesn’t seem to have generated an echo in Irish society, at least until now. In your opinion, has this delay between the loss of the benefits and the gain in consciousness of the Irish people about the implications of this loss jeopardised in any way the struggle against these social cuts?

Milton Friedman correctly said that it is during times of crisis that the politically impossible becomes possible, and that crisis should be utilised to impose policies that ordinarily would be resisted. The establishment and European Union have seized this crisis with both hands, and—like the “shock doctrine” described by Naomi Klein—have implemented cuts and will impose privatisation that ordinarily would be politically unpalatable.

Until now the trade union movement, and in particular the Irish Congress of Trade Unions (the all-Ireland trade union centre), have failed to respond effectively to this national assault upon workers. They are too busy concentrating on the sectional “firefighting” of small disputes. Members, and workers generally, are still too wrapped up in individualism to demand a collective response from the union leadership. But this is beginning to change. The CPI produced a significant pamphlet on the crisis, and has been demanding the creation of a national-democratic economy to challenge the power of monopoly finance capital. This has been well received by some communities, trades councils (regional trade union centres), and indeed church groups, which have invited the CPI to address them.

There have been numerous small demonstrations in response to each attack and a number of larger ones, one with the participation of more than 100,000 people in late November organised by the Irish Congress of Trade Unions. This confidence needs to be built on in 2011 if we are to begin not only to hold on to what we have but to fight back and seize the advantage in this crisis.
In the face of this social setback how could you classify the role of the Irish unions?

Irish unions have for decades been incorporated as a pillar of the state through “social partnership,” their role being to manage workers’ expectations and to manage their members, in return for inflationary pay increases and a national profile for the leaders.

Union members, increasingly subject to bourgeois ideology, have demanded an individual service from their union rather than a collective organisation. Members expect the staff of the union to sort out their problem rather than participating and mobilising their colleagues to address all their issues and concerns. Trade unions stopped mobilising their members and ceased to collectively organise. Once the crisis hit, those unions that wished to mobilise found—not surprisingly—that you cannot just switch members on when you wish.

“Partnership” decapitated the trade union movement and demobilised working people. In some unions membership is declining sharply.

There are signs that the message of struggle the CPI has been making to unions is beginning to find an echo. A number of large unions have called for civil disobedience as well as for members to become politically active. They have begun to speak on our public platforms, which is a very significant break in the policy of Cold War anti-communism.
Before the crisis, what were the social problems affecting the Irish working class that remained disguised by the so-called economic miracle?

Like elsewhere, debt disguised the poverty of many working people and created the mirage of a “middle class.” This brought with it—stridently supported by the media and popular culture—an individualist ideology and the destruction of collective spirit and struggle (with notable exceptions, of course).

After the United States, Ireland is the most unequal country in the developed capitalist world. In 2009 the number of millionaires and multi-millionaires grew, and wealth became concentrated in fewer and fewer hands.

The increased consumption power of working people disguised the fact that they were receiving a smaller slice of the pie, that wealth was increasingly concentrated in fewer hands, and that Ireland had become one of the most unequal societies on the planet.

This brought the scourge of drugs and criminal gangs to many communities. With increasing unemployment and the reality of long-term unemployment as a result of this crisis, these social problems are only likely to worsen, unless political interventions can invigorate and build upon the signs of a growing resistance.
For some time, economists and governments presented Ireland as a role model for Portugal, and even now during this crisis some persist in presenting Ireland as more capable of overcoming the situation of a depressed economy and high interest rates on the debt due to its greater labour-market flexibility. Can this flexibility help in any way the working people to a better life? Would it be in any way defensible, from the workers’ point of view, to adopt such a model in Portugal?

Ireland has indeed one of the most flexible labour markets in Europe: our minimum notice period, five days, is among the lowest in Europe, where most countries require at least a month’s notice and some workers, as in Belgium, are entitled to fifteen months.

However, while already imposing austerity on workers, through devastating cuts in public services and social benefits, the European political class are also keen to push through a project of greater labour-market flexibility. This has been most evident in the EU-speak of “flexicurity” in recent years.

The conventional wisdom behind the talk about flexible labour markets is that, by allowing business to get rid of workers more easily, employers will bring forward the decision to re-hire workers. In turn, the additional purchasing power coming from the front-loading of jobs would support aggregate demand and accelerate economic recovery.

Clearly capital is interested in easy firing or flexible contracts—for two reasons in particular. Bearing in mind the sudden and spectacular collapse of demand and activity that companies faced at the end of 2008, capital is now reluctant to hire workers on the basis of open-ended contracts. Capital has all the rights; labour has only responsibilities.

Another motive for businesses turning to short-term contracts is the credit squeeze that many companies have been facing or are still facing as a result of the financial crisis. To reduce dependence on bank lending, capital is now keen to maximise profits as a source of new capital; and one way to cut wages and increase profits is to hire temporary workers, who tend to be cheaper than normal labour.      There is no evidence to support the argument that labour-market flexibility can help in surmounting the difficulties presented by a depressed economy. Indeed flexible (or, to be more accurate, insecure) employment conditions tend to generate low training, lower productivity and lower levels of innovation in national economies while having particularly negative consequences for working people.

Firstly, temporary workers tend to receive lower wages than workers in open-ended contracts. This had wider macro-economic effects, in that workers on temporary contracts, having lower wages, tend to consume less and save more as the insecurity inherent in such contracts drives them to precautionary saving.

In contrast to the widespread view that core workers are protected from flexibility, there are consequential effects on the rest of the work force. The very use of temporary contracts functions as a threat to workers under open-ended contracts to be careful not to lose their job and find themselves in a situation in which they would be forced into precarious contracts when re-entering the labour market.

This makes workers more inclined to accept wage cuts, longer working hours and other diminutions of their rights simply to keep their present job. It is hard to see what further labour-market flexibility could contribute to working people, over and above the exacerbation of what is already a highly asymmetrical and unequal power relationship with their employers.
Germany pressed Ireland within the EU to access the newly created European system of financial rescue, and to negotiate an IMF financing. These proceedings are probably to generate new actions against the Irish welfare system. The CPI took a stand on this issue. In its statement the CPI strongly criticises the principles of this financial supports and states that the Irish people, both North and South, are now paying the price of Irish and British governments’ failed policies as well. Can you enlighten us on the effects of this so-called rescue, as well as on the policies followed by the Irish and British governments over the past twenty years?

In response to the first part of the question: Germany did indeed press Ireland to access the rescue package. The imposed supports to the Irish state have been made to ensure that the interests of EU finance houses, in particular German banks and bond-holders, can be protected.

However, in response to the question on the effects of this rescue package, it is useful to consider some important facts and figures. The EU-IMF financing package was €85 billion. The Irish state is contributing €17½ billion to this effort by raiding the country’s pension reserves. The interest on the deal is 5.8 per cent. One way to put this figure into context is to consider that in 2014 Ireland’s national income, measured by gross domestic product, will be €183 billion. At the end of 2009 the national debt stood at €75 billion.

This year’s deficit, plus the deficits to 2014, will bring the national debt up to €183 billion by 2014—that is, 100 per cent of gross domestic product. This is just the principal owed and does not include interest. The interest on the deal will be €45 billion, bringing it to a total of €114 billion. This is to be paid by the beginning of 2020 and covers nine years. A further €50 billion will be added to the €100 billion that is not part of the IMF deal and already exists.

The total government debt in 2019, without anything paid off it, will be €264 billion. Yet the government’s own four-year national recovery plan shows it will run a deficit until 2014 and might break even by 2015. However, the maximum surplus secured by the government during the period of economic boom was usually €3 billion. So, the government would be lucky to gather €1 billion a year in surplus from 2016 to 2019. This would give it a tiny repayment capacity of €4 billion to the IMF, which will be owed, with the interest, €114 billion.

This figure would include nine years of economic hardship and cuts in public spending. At the end of the period Ireland would still owe 133 per cent of everything produced in the country in one year. Knowing how the IMF operates in Africa, Asia and Latin America, we can see that thousands of jobs will be lost, social services will be ravaged, and the state sector will be destroyed.      In response to the second part of this question: the economic policies pursued by the Irish government are a crucial factor in explaining the origin and the character of the crisis here. Apart from the crisis being a structural example of a general capitalist crisis of over-accumulation, there were particular superstructural institutional features peculiar to Ireland, namely failures in banking regulation combined with excessive and high-risk lending by the banks. These were buttressed by the government’s budgets, which contributed significantly to economic overheating and which in turn relied heavily on an unsustainable property and construction bubble, which they encouraged through tax reliefs.

However, such institutional policies did not operate in a vacuum but were directly shaped by the influence of the European Union. Joining the euro in 1999 meant that Ireland no longer had the power to control its own monetary and exchange-rate policy. During the bubble years, up to 2007, when unsustainable lending practices were being taken by Irish banks, Ireland should have had very high interest rates to rein in cheap consumer and mortgage credit and inflationary pressures.

However, in January 2006 the European Central Bank’s main interest rate was only 2.25 per cent, with inflation reaching 4.2 per cent, while for 2006 as a whole Ireland’s GDP surged by 6 per cent and its gross national product by 7.45 per cent. This was done because growth in the euro area, particularly Germany, was low. This negative real interest of 1.95 per cent resulted in companies and households being paid to borrow and in development projects going ahead at absurdly artificial rates of return. The country was awash with cheap credit, with the commercial banks acting as the transmission mechanism, linking the Central Bank to consumers. Real interest rates at this time should have been in the region of 8 to 10 per cent in order to rein in the unsustainable behaviour of consumers and bankers.

If Ireland had retained its own currency it would have had the ability to set its own interest rates and inflation targets as essential components of its own monetary policy, rather than being subject to the dictates of the European Central Bank. In addition, by having its own currency and monetary policy Ireland would have had more control over its exchange rate.

In relation to this matter, the CPI recently called for breaking the connection with the euro and the repudiation of this illegitimate debt placed on the backs of a mere 4½ million people. It is not the people’s debt, therefore the people should not pay for it.

On the question of the policies of the British government and their influence in the North of Ireland: clearly the policies pursued by the British government in support of British finance capital have also affected the Irish people living under British jurisdiction in the North of Ireland. In response to their national deficit and the socialisation of debt in support of the banks, the British government is implementing a programme of austerity that directly affects the North of Ireland.

An estimated £2 billion is to be taken out of the Northern economy after cuts of between 20 and 25 per cent in the public sector. For various historical reasons, the Northern economy is heavily reliant on the public sector; and cuts in the British government’s subvention to the North will lead to significant job losses, a deterioration in the provision of social goods, and significant hardships for working people.
As far as we can see, the CPI is well informed on the situation in Portugal as well as on the analyses of the PCP. Is there any kind of co-operation or regular exchange of information between the two parties?

The CPI receives regular updates on the situation in Portugal from the International Department of the PCP. Our two parties also meet at the International Meetings of Communist and Workers’ Parties, the most recent one being in South Africa.

We are aware of the central role played by the PCP in the Portuguese Revolution and the overthrow of the dictatorship, which also led to the collapse of Portuguese colonialism. We have a common theoretical understanding of the European Union and its class character and the forces driving ever greater European integration. We have a common understanding of imperialism and the importance of the unity of all anti-imperialist forces.
As Ireland is still divided into two territories, the Republic and Northern Ireland, and the Communist Party acts in all Ireland, it must deal with two different and complex realities: the Irish Government in Dublin and the UK authorities, namely the Autonomous Government in Belfast. How does the CPI deal with this situation?

As an all-Ireland party, our policies are determined by the national congress of the party, which determines policy on central questions for the whole country. However, reflecting the partition of the country, the party is organised as two areas: a Southern Area for the Republic and a Northern Area for the North of Ireland. Each of the two areas holds an area congress after the national congress. The area congresses are empowered to flexibly formulate policies and procedures relevant to the area, in accordance with the decisions of the national congress. This is necessary because the political and economic situation varies markedly between the North and the South, for historical and social reasons. However, as a republican party we strive to promote all-Ireland policies that we see as the most viable means of meeting the needs of our people.

While the Republic is a sovereign state, the Northern Ireland Assembly in Belfast has no fiscal powers, and its budget is controlled by London. The people in the North of Ireland are triply marginalised: they have little influence in London, little influence in Dublin, and even less in Brussels. That is why our party has adopted a “National-Democratic Transformative Strategy.”
Although the interests of the working class tend to be the same everywhere, different societies tend to generate different awareness of the class interests. Adding to this, there are contradictions and conflicts with deep historical roots among the working class, especially in the North. How did the CPI deal with this question?

For complex historical reasons, the working people of the North have been divided along a combination of political and religious-cultural lines. While historically that section of the working class falling within the Protestant “Loyalist” strata secured some marginal benefits from the Unionist state in comparison with the Catholic-Nationalist strata, such material distinctions have progressively dissipated over the years. Northern society has changed dramatically over the past decade. The Unionist monolith has been shattered, and historical divisions within the working class have far less objective meaning. Particularly in the light of the present economic crisis, all sections of the working class throughout the North will be affected by cuts in the British subvention, regardless of their religious or cultural caste.      Indeed, in the light of the attacks that working people, both North and South, will face in the coming years, the CPI seeks to develop the maximum unity of our class to protect its shared interests on core issues, such as employment and social spending.
We are aware that the electoral systems both in Northern Ireland and in the Republic make difficult the election of MPs from parties outside the system, so this is a real barrier to the CPI in having a voice both in the Dáil as well as in Stormont. Would the election of a communist MP make any difference in CPI strategy? And if not, why?

In answering this question, one must understand the historical context in which the CPI has operated throughout Ireland. As one front in the struggle for change, it has been historically difficult for Irish communists to make electoral gains. There is a variety of reasons for this. In the Republic, a mixture of active state repression, ideological scaremongering and the fanning of religious fears played a crucial role, with the additional complication of mass emigration—about a million people from the foundation of the state in 1922 up to the 1960s. It was also mainly an agricultural economy, and the working class was small.

Meanwhile, progressive forces in the North have notably suffered from the straitjacket created by religious and cultural sectarianism, and the working class was split along religious-ideological lines. Therefore, our principal fighting ground, and principal successes hitherto, have been on other fronts of struggle, notably the organised labour movement, and in broad social campaigns for democratic change.

In the South we were presented as an alien force, controlled by Moscow, while in the North we were presented as being in favour of a united Ireland, which was a political stick with which to beat us within the Protestant community. This was further complicated by the general Cold War politics and the strong British and American influences.

We are fully aware of the limitations of existing political institutions. It is also clear that for a considerable—although perhaps declining—body of people, such institutions are still perceived as vehicles for change; and they do offer an important platform on which to put forward progressive arguments and to challenge the cosy establishment consensus.

Therefore, while we would support the election of communist, left and progressive candidates to the existing political institutions, this would not make any difference to our general strategy for progressive social change which we seek to bring about through the mobilisation of the people through struggle on numerous fronts.

Outsourcing is a further transfer of wealth to big business

Statement by the Communist Party of Ireland 3 September 2012

The Government is to outsource services in health, justice, education and local authorities as part of the EU-IMF cuts programme. Each department has been given until the end of the year to propose areas for outsourcing; but given the history of these major decision being discussed beforehand in foreign parliaments, it is likely that the principal areas have already been picked and that this is merely a rubber-stamping of this major negative development in the provision of services to Irish people.Private companies will carry out these services only if there is profit to be made off citizens. This will drive a reduction in the quality of services, accompanied by extra costs, either direct to the citizen or by way of government contract. These companies will put their own profit agenda ahead of citizens’ needs. It is likely that any outsourcing will also lead to offshoring as jobs are sent to the cheapest country.

We are still suffering the consequences of this private-sector agenda in banking that has bankrupted the country.

What outsourcing really represents is a transfer of money from citizens to big business. It will be the usual global monopolies that will win contracts through their cut-throat cost-cutting, and the state will hand over millions to boost their profits.

Once again Irish taxpayers will be paying for the lavish and outrageous lifestyles of a global elite while our services are cut, jobs outsourced and offshored, and our young people forced to emigrate.

Unions and citizens need to combine to defend jobs and services. The trade union movement, if it is to remain relevant, must no longer allow the tail to wag the dog but must break with Labour Party policy.