Austeritarian Assault to Work and to the People

Austeritarian Assault to Work and to the People

Confirmed by the EL-Network Meeting of Trade Unionist Athens Nov. 12. 2011

  • To the global crisis of capitalism from 2007-2009, followed an austeritarian assault on social and labor rights, which has increased the rate of exploitation, creating new markets for accumulation, with a special appetite for natural monopolies, by a vast privatization program and a dramatic decrease in State and its social model. To the crisis of speculation and financialization of the economy that led to the collapse, followed the sovereign debt crisis. The strategy of 'markets' has been to join crisis to crisis, recession to recession, preventing European solidarity to rescue the European countries in trouble, getting these increasingly hostage to global speculation.    

  • The European crisis tends to generalize to global. The bank bailout and the imposition of the austeritarian model have been deepening the recession. The foreign loan is the warranty of a program for the maximum plunder by the bourgeoisie, putting astronomical values in the hands of private banking and ensuring higher rates of exploitation by capital.

  • The deep political subordination of the States to the power of creditors is a retreat from democratic self-determination. To an existing ECB that double-subsidizes private banks without democratic control, to Troika EC-ECB-IMF memos  higher than the government, now joins a proposal of a finance super-minister and deficit limits of the States. They want finance Europeanization without the democratization of the European Union.

  • The budget sovereignty transfer to a communitarian level without democratic legitimacy to do so, to materialize, it means a colonial tutelage. It is a muscled austeritarian offensive line over the people and democracies, removing them autonomy and self-determination in the pursuit of economic and financial policies. The measures in place are so brutal that based on blackmail will inevitably raise an increasingly authoritarian power in the European States.

  • While the centre of European policy is austerity, economic stagnation and recession in the most vulnerable and peripherals EU countries are inevitable. The Euro is at the centre of the devaluation of wage and of the prevailing economic policy, providing a generational decline of wages and of the increasing exploration.

  • As an alternative to the vicious cycle of austerity recessive we defend the ending the imposition of austerity policies in peripheral economies of the eurozone and its replacement by policies that allow realistic prospects for growth and job creation. Those policies require a restructuring of debt of peripheral countries in the Euro Zone, preferably negotiated at European level and at the service of countries in rescue and not of  the interests of creditors. The sustainability of their public finances requires  the creation of economic policy instruments at European level, such as issuing of Eurobonds and taxation of financial transactions, which should contribute to the EU budget with the capacity to combat unemployment. The path to solving the problems of the Euro zone must be economic growth and fighting unemployment.

  • The most serious example of the irresponsibility of European leaders is the set of measures announced in relation to Greece. First, the so-called partial forgiveness of debt was announced, but not decided: the negotiation with the banks it is under "voluntary" and not yet completed. Even if it comes to realize in the advertised terms, it would represent a reduction not in 50% of the Greek total public debt, as has been insinuated, but just a little over 20%, since the exchange of titles focuses on a portion of the Greek public debt to private accounts that represent less than half the overall public debt. Thus, the exchange of titles does not prevent the continuation of the unsustainable dynamic of the Greek debt. Secondly, this operation aims more at the protection of private investors - already facing a devaluation of the titles of  the Greek public debt on the secondary market between 65 and 80%, with a tendency to get worse - than any attempt to resolve the situation in Greece, which is a very serious recession and rising unemployment, with the uncontrolled increase in debt associated with this recession. The Greek government recently acknowledged the failure of its policy, announcing a referendum on the new austerity package. The Greek tragedy only anticipates what the austerity policy is making inevitable in Portugal.  
  • European workers are called to respond with conviction on behalf of the difficult road travelled. To these "austeritarian" there is only one answer: fight!  It's time for Europe, in particular, the southern countries to respond to the violence of the attacks that have been subject, making urgent the creation of an European day of joint fight actions against austerity, calling for action social movements and unions.
  • Across Europe the response has to be strong and of solidarity against the crisis! This is a requirement that has to be placed as a democratic response of workers and peoples, to the austeritarian capital. There is no response to the crisis and no growth without social cohesion and employment.


                         Workers of the world, unite!