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	Workers Vanguard No. 983	8 July 2011

European Crisis and the Bankruptcy of Capitalism

Greece: Mass Anger Over Savage Austerity

Workers Must Rule!

For a Socialist United States of Europe!

On June 29, as a two-day general strike virtually shut down the country and tens of thousands protested outside, the Greek parliament approved a new round of brutal austerity measures demanded by the Greek bourgeoisie and its imperialist overlords. The demonstrators—who included, in addition to workers, a broad range of the population from students and other youth to professionals and retirees—were viciously attacked by club-wielding riot police. More than a year of unrelenting attacks on the living standards of the Greek population has resulted in seething unrest across broad layers of society. In the last year alone, there have been at least a dozen one-day general strikes and massive protests. Hundreds of thousands of jobs have been lost, homelessness has skyrocketed and many people, especially pensioners, are reliant on soup kitchens for their survival.

Video footage of the wanton violence meted out by the cops has provoked widespread indignation, as has another video documenting collusion between the police and hooded provocateurs who infiltrated the protesters. Police fired endless volleys of tear gas and stun grenades and pummeled protesters with chunks of masonry. At least 38 were reportedly arrested in what was blatantly a cop riot. We demand that all charges be dropped against the anarchists and other anti-austerity protesters, including those arrested during the earlier general strikes!

It is clear for all to see that working people are being fleeced to pay for a crisis they are not responsible for. The economic crisis gripping Greece—a particularly severe expression of the world capitalist crisis—was triggered in the spring of last year as global financial capitalists, fearing that the heavily indebted Greek government would default on its loan obligations, began spurning Greek government bonds. The plummeting price of those bonds threatened European banks, especially in France and Germany—foreign financial institutions are exposed to some 340 billion euros in Greek public and private debt.

To try to head off the crisis, at least temporarily, the European Union (EU) and the IMF agreed last year to a 110 billion euro “rescue package” on condition that Athens impose draconian austerity measures on Greece’s working people. The October 2009 elections replaced the right-wing New Democracy (ND) regime with the bourgeois-populist Pan-Hellenic Socialist Movement (PASOK) of George Papandreou, with the bourgeoisie calculating that the masses would more readily accept “sacrifice” if demanded by PASOK. The PASOK government answered the EU and IMF’s ultimatum with a year-long campaign of slashing public sector workers’ wages, gutting pensions and ramping up taxes. These attacks hit hardest at the poorest in society, including immigrant workers. In addition, Greek officials, in response to EU/IMF demands that they raise cash by privatizing a host of state-owned enterprises, have launched what the bourgeois press describes as a “fire sale,” auctioning off airports, ports and prime land.

European capitalists fear that a default by Greece could immediately pose a similar collapse by other heavily indebted countries such as Ireland and Portugal, which have already received bailouts from the EU and IMF, and Spain, whose economy is larger than that of Greece, Ireland and Portugal combined. Fearing the potentially catastrophic effects of such contagion, the EU/IMF hastily agreed last month on a second “rescue package” for Greece, amounting to a further 120 billion euros. Yet hardly anyone believes that these bailouts will do more than delay the inevitable default.

Everyone can see that the fate of the Greek working class, and much of the petty bourgeoisie, will be ever more dire without a radical solution. The working masses have demonstrated their combativity time and again. But the workers’ leaders, whether the despised PASOK-loyal tops of the General Confederation of Workers of Greece (GSEE) and the Confederation of Public Servants (ADEDY) or the far more militant-sounding Greek Communist Party (KKE) and its PAME labor front, have thus far succeeded in channeling workers’ anger into what amounts to militant parliamentary lobbying. In effect, they appeal to the Greek capitalists to stand up to their senior partners in Germany and France. This nationalist class collaboration is a recipe for demoralization and defeat.

The allies of the Greek proletariat are to be found not among its “own” exploiters but among the workers elsewhere in Europe and beyond. A proletarian upheaval in Greece could trigger a wave of class struggle throughout Europe against the ever more brutal and incessant attacks of the capitalists against the jobs, benefits and living standards of all workers on the continent. A workers government in Greece would immediately repudiate the imperialist debt. Such an act would require a direct appeal to the proletariat, from Germany and France to Spain and Portugal, to come to the defense of their Greek class brothers and sisters against the combined forces of the European bourgeoisies.

As long as Greek workers are mobilized primarily against the foreign diktats of the IMF and EU, they will be unable to see that opposing the imperialists is intertwined with overthrowing the Greek bourgeoisie. The Greek government is not simply a tool of the European and other imperialist powers, as some signs in the Athens demonstrations suggest, but of the Greek bourgeoisie that has always exploited, suppressed and bled the working class in the pursuit of profit.

The question that is objectively posed is the need for the revolutionary overthrow of the capitalist order and the establishment of working-class rule. Yet there is a huge disparity between the objective needs of the Greek working class and oppressed on one side and the political program of their leadership on the other. The repeated strikes and protests are designed to dissipate the anger of workers, whose militancy is clearly not the issue. The problem is that the working class is hamstrung by a leadership that accepts the need for the working class to bear some degree of austerity to “bail out” capitalism, while objecting that the terms and conditions dictated by the IMF and the European Central Bank (ECB) are too severe.

The program of the labor bureaucracy—defined by what is “practical” under capitalism—has led to disaster for the working class. To overcome the gulf between the workers’ present consciousness and the necessity for a workers government based on organs of proletarian power, a Leninist-Trotskyist vanguard party would put forward a series of transitional demands, starting from the felt needs of the masses and pointing the way toward the seizure of state power by the working class and the expropriation of the rapacious capitalist class.

To combat mass unemployment, it is necessary to demand the sharing of available work, with no loss of pay, and a massive program of public works. To protect even their current living standards—already among the lowest in Europe—workers must demand that wages be indexed to inflation. To unmask the exploitation, robbery and fraud of the industrialists and bankers, workers should demand that the capitalists open their (real) books. With the imperialists demanding the dismantling of state enterprises, the proletariat must fight for the expropriation of the productive property of the capitalist class as a whole and the establishment of a planned economy under workers rule, where production would be based on social need, not profit.

Combat National Chauvinism!

Throughout Europe, the capitalist press and politicians have been whipping up a chauvinist frenzy against Greeks, who are portrayed as lazy, ungrateful scroungers. Last year the right-wing German Bild (27 October 2010) screamed: “Sell your islands, you bankrupt Greeks…and the Acropolis too!” A recent London Financial Times (9 May) editorial demanded: “Athens must be put under the gun.” For all the talk of bailing out Greece, the only “bailout” that is taking place is that of Europe’s banks. Columnist Martin Wolf noted in the Financial Times (21 June): “It is far less embarrassing to state that one is helping Greece when one is in fact helping one’s own banks.”

With chauvinist arrogance, the European imperialists, led by Germany, are seeking to impose on Greece, an EU member state, the kind of diktat they are accustomed to issuing to neocolonial countries in the Third World. The Financial Times (17 June) reports that officials of the “troika”—the IMF, European Central Bank and European Commission—are demanding that “outsiders” be brought in “to make Greece’s privatization program happen,” adding that “because Greece seemed incapable of collecting taxes, international experts would come in to do that, too.” The article further reports that Finnish officials were insisting that “Athens assets should be securitised so they could be used as collateral. If Greece defaulted, lenders would gain an airport or some other utility.”

The imperialists’ dismissive attitude to Greece’s sovereignty has in turn fueled national chauvinism in Greece. Right-wing opponents of the EU/IMF’s bailout include New Democracy, Greece’s main opposition party. ND represents Greek business interests that have no intention of paying the imperialists’ extortion themselves and fear, as BBC economics editor Paul Mason put it, “a tax bill the like of which they have never dreamed, nor indeed paid.” However, ND and PASOK are united in the determination that Greek working people pay for the country’s economic crisis.

Recent months have seen the explosive growth of a new movement, the so-called “indignant citizens” movement. The “Indignados” placed themselves at the head of the mass mobilizations outside parliament, where Greek flags proliferated, the Greek national anthem was sung and anti-American and anti-German sentiment was rife. Protesters have waved EU flags with a swastika at the center—equating “German” with “Nazi” and invoking the spectre of World War II, when Greece was occupied by German imperialism (followed by rampaging British troops).

In Spain, the Indignados movement arose in response to the austerity measures that were being enforced by the social-democratic Spanish Socialist Party government before its huge defeat in the last elections. In Greece, the petty-bourgeois Indignados emerged in the context of the abject failure of the trade-union bureaucracy to present any way forward for the struggles of the working masses. The two main trade-union federations, the GSEE and ADEDY, representing the private and public sectors respectively, are controlled by PASOK, which is imposing the austerity measures. Despite the “socialist” reference in its name, and the credentials given to it by opportunist left groups, PASOK is a capitalist party.

Broad layers of the middle class that could be rallied behind an insurgent proletariat struggling for power are instead being drawn into virulently chauvinist, anti-immigrant and anti-working-class movements. Displaying overt hostility to the organizations of the working class and the left, the Indignados present themselves as a “pro-democracy” movement of all classes. As in Spain, all leftist political parties and trade unions, as well as red flags and banners, were banned from the Greek protests at first. Not surprisingly, given the nationalist fervor whipped up by the Indignados, Golden Dawn and other fascist outfits have been seen at the protests.

There has been an ominous rise in racist attacks, as desperately impoverished immigrants are used as scapegoats for the economic devastation. Earlier this year, fascist thugs rampaged through a heavily immigrant area of Athens, killing one person and wounding many more. Golden Dawn got over 5 percent of the vote in municipal elections in Athens late last year. According to the London-based Institute of Race Relations, Golden Dawn’s Nikos Michaloliakos, accompanied by eight apparently armed bodyguards, gave a Nazi salute at a council meeting in Athens in January.

The fascists are emboldened by the racist policies of the government. Greece’s border with Turkey is one of the front lines of “Fortress Europe,” with EU border patrols employed to keep immigrants out. The Greek government has announced plans to build a razor-wire fence, equipped with sonar systems and thermal sensors, along the border. The workers movement must fight for full citizenship rights for all immigrants and to unionize foreign workers. For union/minority mobilizations to stop fascist provocations! For integrated workers defense guards to protect immigrant neighborhoods!

Communist Party: Left Face of Greek Nationalism

The Stalinist KKE adopts a posture of militant opposition to the PASOK government and promotes PAME as a class-struggle alternative to what it calls the “government- and employer-led” trade unions. But the Greek Stalinists present no fundamental alternative to the betrayals of the GSEE/ADEDY union misleaders. Despite its occasional verbal radicalism, the KKE is hostile to the program of workers revolution to overthrow Greek capitalism.

The KKE’s political bankruptcy is evident in regard to the Indignados. In an article in Rizospastis (5 June), the KKE correctly noted that “the ‘anonymous’ leaders of the ‘movement of the squares,’ the ‘non-partisan,’ ‘spontaneous,’ ‘non-politicized’ citizens, appear to be politicized, declaring themselves ‘anti-left’.” The article adds that with their slogans “Out with the left,” “Parties out” and “Trade unions out,” the Indignados are “not that democratic, or, to be more accurate, they are undemocratic.” What the KKE cannot challenge, though, is the virulent nationalism of the Indignados, which the KKE itself shares.

Indeed, the KKE has made defense of “national sovereignty” its own calling card, and is particularly virulent in espousing Greek nationalism in relation to Turkey, the traditional enemy of its “own” bourgeoisie. For example, in a speech last year, KKE general secretary Aleka Papariga complained that the EU was not taking account of “our national sovereignty rights” when considering Turkey’s bid for membership. She went on to chastise Papandreou for “trying to cover up the issue by dividing the Aegean, something that will have an adverse effect on the islands’ defense.” Nationalism within the workers movement is the chief obstacle to constructing a genuine revolutionary workers party in Greece.

It is a travesty that the KKE retains a reputation as militant fighters against capitalism based on the Resistance against the Nazi occupation and the subsequent Greek Civil War of 1946-49. In pursuit of its program of class collaboration with the Greek bourgeoisie, the KKE handed power back to the bourgeoisie following World War II. The working class, backed by the peasantry, was the decisive force in the anti-Nazi Resistance, mounting massive strikes and demonstrations from late 1942 until the withdrawal of German troops in 1944. The working class, arms in hand, had state power in its grasp. But its leaders, the treacherous KKE, actually welcomed the arrival of British troops into Greece, enabling the imperialists to stabilize the situation, bring back the hated monarchy and massacre the workers.

The Greek Stalinists lived up to the terms of the secret Tehran agreement, whereby Stalin granted the imperialists the “right” to preserve capitalist rule in West Europe and Greece. Politically disarming the proletariat, the Stalinists went so far as to join a “national” government of the bourgeoisie. In February 1945, they signed the Varkiza agreement, which physically disarmed the KKE-led Resistance forces as British troops and the Greek National Guard were preparing to unleash a full-scale wave of terror against the masses. Only in February 1946 did the KKE finally abandon its suicidal policy and take up the “armed struggle” again. In October 1949, after ferocious repression, the Civil War was ended. The KKE ranks had fought heroically. But needless to say, the KKE learned nothing from the tragic consequences of its treachery and continues to pursue its bankrupt program of subordination to the Greek bourgeoisie.

What the Trotskyists wrote at the end of World War II holds true for the role of the Stalinists throughout the Civil War:

“The Greek masses were burning with revolutionary determination and wished to prepare the overthrow of all their oppressors—Nazi and Greek. Instead of providing the mass movement with a revolutionary program, similar to the Bolshevik program of 1917, and preparing the masses for the seizure of power, the Stalinists steered the movement into the blind alley of People’s Frontism. The Stalinists, who enjoyed virtual hegemony of the mass movement, joined with a lot of petty bourgeois politicians, lawyers, professors, who had neither mass following nor influence, and artificially worked to limit the struggle to the fight for capitalist democracy.”

—“Civil War in Greece,” Fourth International, February 1945

The social-democratic reformists in Greece—such as the Socialist Workers Party (SEK), which is affiliated to the British group of the same name, and Xekinima, the Greek affiliate of the Committee for a Workers’ International (CWI)—stand to the right of the KKE in their enthusiasm for the anti-Communist, anti-working-class Indignados. For example, Xekinima calls to “Extend the movement to all work places, workers’ neighbourhoods, and the youth” (socialistworld.net, 27 June). The notion of classless “democracy” that these groups promote has long been an anti-Communist code word that actually means support to bourgeois class rule. Thus, both the SEK and Xekinima supported capitalist restoration in the former Soviet Union in 1991-92 and hailed counterrevolutionary forces such as Polish Solidarność and Boris Yeltsin’s Russian “democrats.”

For Workers Revolution!

The Trotskyist Group of Greece fights to forge a Leninist-Trotskyist party capable of leading the working class to power. Above all, this means breaking the workers from nationalism and winning them to a revolutionary internationalist perspective. During Round One of the present crisis, the TGG issued a 28 April 2010 leaflet that opposed the widespread Greek nationalism as “poisonous to class consciousness.” Any effective struggle against the bosses’ attacks must begin with the understanding that the workers have no country, until they seize the one they’re in. Our comrades insisted: “What is needed is international workers solidarity across the EU against capital” (see “Down With PASOK Government’s ‘Stability Program’!” WV No. 959, 21 May 2010).

The Greek financial crisis has increased the seething national antagonisms in Europe, as seen in the diplomatic spats between France and Germany. German chancellor Angela Merkel, unpopular at home and with a shrinking majority in the Bundestag (parliament), has clashed with French officials and with the ECB over whether the bankers have to accept some losses. Following pressure from the IMF, Merkel agreed to a new bailout package while the French banks have offered to roll over Greek debts for 30 years. Whatever divisions there may be within bourgeois circles over how to deal with the catastrophic financial situation, in Germany, France, Britain and Europe as a whole, each government is determined to make the working masses pay for a crisis that is caused by the capitalist system itself.

The EU is an imperialist trade bloc, centered on a pact between the French and German capitalist rulers to ratchet up the exploitation of the working classes at home while trying to gain advantage over their imperialist rivals as well as the smaller European states. At the same time, the EU is an unstable formation that intensifies national antagonisms and fuels chauvinism.

We Marxists oppose the EU from the perspective of proletarian internationalism. The comrades of our German section, the Spartakist Workers Party, last year published an article titled “Solidarity with the Greek Workers! For Class Struggle Against the German Capitalists!” (Spartakist No. 183, May 2010), which noted:

“The chauvinist campaign against Greece is being set in motion so as to prevent the German working class from hitting on the idea of placing blame for the crisis at the feet of the capitalist system and its own rulers. The workers movement in Germany must mobilize in solidarity with Greek workers and all the other victims of the EU imperialists—after all, they’ll be confronted with similar attacks in the immediate future. The witchhunt against Greece also serves to split and weaken the multiethnic working class in Germany.”

Today, despite the relentless bleeding of the Greek working people, the country remains mired in deep recession. The bankrupt capitalist class manifestly does not have any crumbs that it is willing to throw to dampen workers’ anger. Short of a struggle for working-class power, the workers’ struggles will continue to be frustrated. The perspective for Greek workers must be that of common class struggle with their class brothers and sisters—from Turkey to Germany and elsewhere around the world.

As the TGG wrote in its leaflet: “What’s needed is a socialist revolution to overthrow the capitalist state and replace it with a workers state that will lay the basis for building a socialist society. For that, you need to build a revolutionary workers party—a party like Lenin and Trotsky’s Bolsheviks—which will fight for a workers government. The TGG, Greek sympathizing section of the ICL, seeks to build such a party” (our emphasis).