Category Archives: Greece

The Greek Debt Crisis: A Misnomer for the European Imperialist Crisis

Anti-austerity demonstration before the Greek Parliament, July 3, 2015

Anti-austerity demonstration before the Greek Parliament, July 3, 2015

August 2015
Hari Kumar

1. An Introduction to Greece
2. The Truman Doctrine – Greece becomes dependent upon the USA after the Second World War
3. The Greek Junta – Greece by now fully a client state of the USA
4. Capitalist Class of Greece Moves to “Democracy” and Europe
5. The USA Makes Its Move to Become the World Imperialist Leader – The Character of the European Union – from pro-USA states to anti-USA coalition
6. The Greek Economic Crisis 2009-2015
7. The Marxist View of “National Debt” under capitalism
8. The Debt Crisis leads to increasing struggle of the growing Greek working class and gives rise to The United Front of Syriza – the political parties of the left
9. What was the elected programme of Syriza?
10. Elections of 2015 and Negotiations with the Troika
11. Conclusion
APPENDIX: Select Chronology 1975 to 2015

Synopsis:
After the Second World War, Greece was a client state in the Mediterranean of the USA. The revisionist collapse of the Yugoslav communists in the neighbouring state of Yugoslavia was key in this development. Tito’s degeneration into revisionism deprived the minority of the Marxist-Leninist forces in the Communist Party of Greece (KKE) of crucial support. We describe this in a subsequent more detailed article.

This article is restricted to the post Second World War development of Greece, up to the present-day debt crisis. It argues that the entire post-war history of Greece was effectively that of a neo-colonial state serving initially the interests of USA imperialism and British imperialism. The Greek people did not have a non-revisionist proletarian leadership that could develop an independent democratic path. The Junta and the imperialist machinations in Cyprus of the island further retarded the people of Greece. Both Greece and Cyprus – endured military oligarchic dictatorships sponsored by the USA.

The later history of Greece became inextricably entwined with the slow but sure evolution of the European imperialist bloc. This bloc took multiple only slowly coalesced, and eventually it later became the European Community. However during its coming into being, it took several class forms. The post-Marshall Plan in Europe had ushered in a dominant USA which fostered the first steps towards a federal Europe. In its hopes to control the European content as a market, the USA was at first successful. During this period the elements of a united Europe adopted a pro-USA comprador position.

This is also characterised the initial European Economic Union (EEC). But the Euronationlists finally, and haltingly, moved to release Europe to some extent, from the USA embrace. Following the fall of the former Comecon countries, Germany was able to move into a new market itself. This began a new phase. Now the rising German imperialists used their industrial superiority and new market share to re-vitalise their hegemonic ambitions.

Such events were milestones on the road to today’s debacle in Greece. They were the pre-history of the chronic indebtedness of the Greek state.

After the Junta “democratised” itself, Greece swopped the USA master for that of the EU. The EU progressed to be firmly dominated by the unified single unitary state of Germany, where German capitalists became the dominant faction. German capital exported both capital and industrial exports, including… to Greece. Over-riding the total market share of Greece accruing to Germany, are the huge debts of Italy and France to Germany – both at risk of potential default. This underlies the harshness of the German ruling class towards the Greek capitalist representatives in Greece today. Finally, current differences between the International Monetary Fund leader Christine Lagard (representing the USA interests) and the German leaders Angela Merkel and Schauble, show the continuing inter-imperial contradictions. This has engulfed Greece today.

1. An Introduction to Greece

Greece is set in the Eastern corner of the Mediterranean Sea and surrounded by the Aegean Sea:

“Greece has more than 2,000 islands, of which about 170 are inhabited; some of the easternmost Aegean islands lie just a few miles off the Turkish coast. The country’s capital is Athens, which expanded rapidly in the second half of the 20th century. Attikí (ancient Greek: Attica), the area around the capital, is now home to about one-third of the country’s entire population.

(http://www.britannica.com/place/Greece)”

In the modern era industrialisation has been slow, leaving Greece dependent upon agriculture, fishing and tourism. The only segment of industry that could be considered substantial is shipbuilding and related industries:

“The manufacturing sector in Greece is weak. …. In the 1960s and ’70s Greek shipowners took advantage of an investment regime that benefited from foreign capital by investing in such sectors as oil refining and shipbuilding. Shipping continues to be a key industrial sector—the merchant fleet being one of the largest in the world—(but) are extremely vulnerable to downturns in international economic activity, as they are principally engaged in carrying cargoes between developing countries.”

(http://www.britannica.com/place/Greece/Demographic-trends#toc26455)

As far as agriculture is concerned, produce is hampered by small peasant holdings, resulting from an early restriction on large land holdings:

“large landowners appeared relatively late (with the annexation of Thessaly in 1881) and only lasted till the agrarian reforms of 1917, which abolished big landed property in Greece irreversibly.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

In addition dry conditions and poor soil make agriculture at times tenuous.
In recent years the European Community has helped with various grant subsidies. Overfishing has hampered that other resource:

“Greece’s agricultural potential is hampered by poor soil, inadequate levels of “precipitation, a landholding system that has served to increase the number of unproductive smallholdings, and population migration from the countryside to cities and towns. Less than one-third of the land area is cultivable, with the remainder consisting of pasture, scrub, and forest. Only in the plains of Thessalía, Makedonía, and Thráki is cultivation possible on a reasonably large scale. There corn (maize), wheat, barley, sugar beets, peaches, tomatoes, cotton (of which Greece is the only EU producer), and tobacco are grown. Other crops grown in considerable quantities are olives (for olive oil), grapes, melons, potatoes, and oranges, all of which are exported to other EU countries. … Although inefficient, Greek agriculture has benefited substantially from EU subsidies… In general, however, the importance of the agricultural sector to the economy is diminishing…
Greece’s extensive coastline and numerous islands have always supported intensive fishing activity. However, overfishing and the failure to conserve fish stocks properly, a problem throughout the Mediterranean, have reduced the contribution of fishing to the economy.
Greece has few natural resources. Its only substantial mineral deposits are of nonferrous metals, notably bauxite.”

(http://www.britannica.com/place/Greece/Demographic-trends#toc26455) (http://www.britannica.com/place/Greece/Agriculture-forestry-and-fishing)

The early development of modern-day Greek capitalism was that of a merchant capital that weaved itself into the matrix of the Ottoman Empire. Both these traders and arising shipping magnates, were based outside of Greece. Being non-resident they could not transfer easily all their capital resources for later industrialisation needed to keep pace with the rest of the European economies:

“The development of the Greek bourgeoisie must be traced back to the sixteenth century when Greece was under Ottoman rule…. Greek merchants… accumulated vast fortunes and control (over) Balkan trade and most of the Ottoman empire’s commercial transactions with the industrialising West. …..
With the decline of the Ottoman empire in the eighteenth and nineteenth centuries, the Greek bourgeoisie….contributed to the development of Balkan nationalism. It thus played a crucial role in the Greek war of independence against the Turks (1821). For while the Greek peasantry constituted the main revolutionary force in the war, the bourgeoisie and the intellectuals managed to direct this force towards nationalist goals. ….
The first Greek constitutions, for instance, were inspired by the French experience; and although Capo d’Istria and later King Otto tried to implement an absolutist model of government, their efforts were ultimately frustrated.
Of course, it is true that in the nineteenth century the autochthonous merchant class was rather weak. But its counterpart living abroad, the Greek diaspora merchants and ship-owners, with their formidable financial power, greatly influenced the shaping of most institutions in nineteenth-century Greece itself… .. these (Greek) merchant communities.. were flourishing both in colonial centres (Alexandria, Cairo, Khartoum, etc.), in the major capitals of ninteenth- century Europe and in Constantinople and Asia Minor.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

This large overseas Greek bourgeoisie was already prone to comprador positions. Although it helped transfer some capital to Greece itself, this was largely in the mercantile and finance sectors:

“Although relatively small by international standards, the Greek diaspora bourgeoisie, by exploiting inter-imperialist rivalries and playing the role of intermediary between metropolitan and colonial centres, managed to master formidable financial resources, some of which were channelled into mainland Greece. However, given its cosmopolitan and mercantile character, as well as the weakness of the indigenous bourgeoisie, these resources contributed to the development of a top-heavy state and a parasitic tertiary sector, geared to support a mercantile and finance capital, rather than to the development of industry and agriculture.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

By the end of the Second World War, the population of Greece can be characterised in the following break-down:

  • A very small working class, of whom the most militant were in the tobacco industry; also some in shipping (often overseas for long periods) and fishing;
  • A substantial number of small to medium petit-bourgeoisie in the urban areas (artisans, small businesses) and an even larger number of small peasants in the rural areas
  • A small but dominant comprador bourgeoisie with significant financial overseas capital – based in the shipping industry and in bank capital – with many connections to foreign traders
  • A much smaller but ambitious section of industrial capital anxious to develop their ‘home’ base of Greek production.

The first two sections of society in particular, had suffered enormous losses and hardships under the Italian-German fascist occupation; and then in the ravages of the Civil War. A good summary of the position of the Greek people following the Second World War can be taken from Enver Hoxha:

“When our people are rebuilding their country which was devastated during the war, when our country is working with all its might to strengthen the people’s democracy and advance on its peaceful and progressive course, Greek monarcho-fascism is employing a thousand and one of the basest methods to inflict harm on our people. You know what a terrible tragedy is occurring in Greece. The unfortunate but heroic Greek people are fighting against monarcho- fascists and the foreign intervention. The progressive and democratic world is profoundly indignant when it sees the great tragedy of that people who deserve to live free and sovereign, but who, unfortunately, are being mercilessly oppressed and killed by collaborators of Italo-German fascism who are now under the direct orders of Anglo-American reaction.”

(Hoxha, Enver; “We Sympathize With the Efforts of the Greek People for Freedom and Democracy.” Speech 3 October 1947; In: “Two Friendly Peoples
Excerpts from the political diary and other documents on Albanian—Greek relations
1941 — 1984”. Marx, Engels, Lenin, Stalin Institute Toronto, 1985; pp. 47-48. http://www.enverhoxha.ru/Archive_of_books/English/enver_hoxha_two_friendly_peoples_eng.pdf

2. The Truman Doctrine – Greece becomes dependent upon the USA after the Second World War

The USA implemented an overall strategy known as ‘The Truman Doctrine’ – to counter the ideological threat of the USSR after the victories led by the Marxist-Leninists had inspired the world proletariat. In the Aegean the Truman Doctrine aimed to:

“Prevent Greece and Turkey from passing under Soviet Control.”

(Woodhouse C.M. “Modern Greece, A Short History”; London 3rd Edition
1984; p. 258).

Both the USA Marshall Plan and the creation of NATO, were tactical instruments of the Truman Doctrine. They were used in Greece to build and develop a modern capitalist state structure. But before they were deployed, first the potential proletarian victory of the Greek Civil War had to be stopped.

While the British General Scopus and his forces had defeated the combined forces of the Greek Communist Party (KKE) and their military wing (ELAS), significant distrust remained in the population against British imperialism. So, after the battle of Athens (Dec 3rd 1949) was won by the British, a democratic façade was placed onto the imperialist proceedings. By this stage all leftist opposition had been essentially neutralized and no longer posed any threat to the Greek capitalist class.

When the British imperial chief Winston Churchill understood the degree of Greek popular distrust – he reversed his prior opposition to a plebiscite. The plebiscite following the defeat of left forces enabled the return. The ensuing Plebiscite supported the return of King George II to Greece. (Woodhouse C.M. “Modern Greece” Ibid; p. 254).

The Americans also dropped their previous support of the King, and become “ostentatiously neutral” (Woodhouse C.M Ibid; p. 254) – they tacitly supported the British crushing of the communist forces. Archibishop Damaskinos was appointed a Regent in the King’s stead and General Plasitiras (head of EDS) was appointed Prime Minister and head of government in lieu of George Papandreuou. Papandreuou had previously “approved” the British suppression of the mutiny of 1944 (Woodhouse C.M Ibid; p. 252).

Both the American covert support, and the British repudiation of the King’s intent – enabled the predominantly capitulationist ELAS some pretext to accede to British overlordship. Accordingly ELAS now agreed to the infamous Varizka Agreement of February 1945. Only Aris Veloukhiotis and the Political Committee of National Liberation (PEEA) had resisted Varizka – and these forces were simply hunted down and eliminated.

A succession of shaky governments was capped by the first post-war General Election of March 1946. The Communist Party of Greece (KKE) abstained and the Populist party of Constantine Taldaris, formed a government. This election:

“Marked a watershed in Greece’s foreign relations. For the first time the Government of the USA was directly involved in Greek affairs alongside Britain, though occupation in the Allied Mission for observing the Greek elections. It was a first step towards the Truman Doctrine”. (Woodhouse C.M Ibid; p. 257).

The defeat of left and communist forces at Athens had decimated left resistance.
Behind both the King and the Parliament lay the Army, and the most right-wing section of the army – the group known as IDEA (Sacred Bond of Greek Officers):

“After 1949, the ruling class was no longer threatened. … their enemies had been effectively destroyed for a generation.…..
After its victory, the Right imposed a quasi-parliamentary régime on the country: a régime with ‘open’ franchise, but systematic class exclusions. The Communist Party was outlawed and an intricate set of legal and illegal mechanisms of repression institutionalized to exclude left-wing forces from political activity. The job of guaranteeing this régime fell to the agency which created it: the army. The state was nominally headed by the monarchy and political power was supposedly vested in parliament. In reality, however, the army, and more specifically a powerful group of anti-communist officers within it, played the key role in maintaining the whole structurally repressive apparatus… in particular IDEA (Sacred Bond of Greek Officers), which was to play a key role in post-war politics.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

The Tsildardis government gave way to the more right wing Demetrios Maiximos with General Zervas (Formerly of EEDS) as Minister of Public Order. Brutal repressions of left forces continued despite both international protests and the presence of a United Nations observership. We will examine the Civil war and the Varzika Agreement in detail in a subsequent article.

By October 1948, martial law was imposed. Under this direct attack by the right-wing forces, and the simultaneous Yugoslav revisionist turn and exposure by the Marxist-Leninist Cominform of 1948:

“The rebel leaders admitted defeat by proclaiming a ‘temporary cessation of hostilities’… a caretaker government.. lifting of martial law, .. withdrawal of the British service missions and the renewal of friendly relations with Yugoslavia.”

(Woodhouse C.M Ibid p. 260)

The Greek government joined NATO in 1951, as well as the Council of Europe; and the Security Council of the UN.

Although throughout this period numerous governments based on varying participation of right-wing forces were only able to hold power for brief periods. The National Progressive Union of the Center (EPEK) – led by General Plastiras and Emmanuel Tsouderous held power until displaced by the virulently anti-communist General Papagos leading the Greek Rally:

“The days of Plastiras’ government were clearly numbered when not only the Greek public but also the US authorities became impatient … Under pressure from the US Embassy the government resigned in 1952… (leading) to electoral overwhelming victory for the Greek Rally.”

(Woodhouse C.M Ibid pp.261-263).

Army vicious actions purged all state structures – which was key to the state through the immediate post-War period:

“Military reaction established firm control over the whole of Greek territory and consolidated a system of ‘repressive parliamentarism’ or ‘guided democracy’. This was controlled by a triarchy of throne, army and bourgeois parliament. Within this power bloc it was the army, the victor of the civil war, which played the dominant role.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976)

Industrial Policy of the Greek Capitalists in this Period

For the next 11 years, both the Army (Marshall Papagos) representatives, or parliamentary figures (George Papandreou before the coup and later Constantine Karamanlis) wanted to consolidate the neo-colonial status to the USA. This started with an economy based on agriculture, tourism and a small manufacturing base.

“the country was far from self-sufficient. .. the chief market for tobacco was revived (West Germany).. expenditure of tourists which came to take second place only to agricultural products as a source of foreign exchange. The development of manufacturing industry and mining with indigenous capital, in place of foreign concessions, (was) a healthy trend. But the lack of home produced source of energy was a severe handicap. It remained true that Greece was still dependent upon foreign aid and there was no end to this condition in sight.”

(Woodhouse C.M Ibid p. 267)

Five special features of the Greek state’s path to modernisation, can be seen:

1. The political and organisational strength of the working class and peasantry was weak, having been decimated during the second world war and after by the brutality of the state. The KKE was almost devoid of leadership, with key leaders in exile.
2. The small native capitalist class was out-numbered by the many Greek capitalist who were based overseas (shipping) – and did not have the necessary local capital to invest. Hence the small resident Greek capitalists used the State machinery to develop. This state machinery swelled the size of the bureaucracy who became a large state dependent stratum. They aspired to ‘middle-class’ status but were objectively privileged sections of a growing working class.
3. The state still needed the heavy investment of the overseas imperialists. They first aligned themselves to the USA, and then by the 1970s to Europe.
4. These strategies effectively left Greece a dependent state with the beginnings of large overseas debt.
5. An immiseration – poverty and desperation – of the working peoples, led to increasing emigrations to both the USA, Canada and Europe

After the devastation of the Second World War there had been an impressive return to Greek per-war levels of production:

“The Second World War and the civil war had devastating effects on the Greek economy. For instance, at the end of the Second World War, 9,000 villages and 23 per cent of all buildings had been destroyed. It was partially a sign of the vitality of Greek capitalism that by the middle fifties, pre-war levels of output had been reached again and the economy was growing at a fast rate (the average rate of growth in the fifties was 6 per cent).”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

However, despite this growth, manufacturing industry remained undeveloped. Nor did the rise of the shipping industry enable Greek capitalists to retain revenues within Greece to more easily enable a home manufacturing base to be built up:

“the Greek economy of the fifties did not manage to overcome a major feature of its underdevelopment: its weak manufacturing sector. Greek capital, whether in its mercantile, industrial or finance form, was unable to orient itself towards the manufacturing sector—especially in those key branches (chemicals, metallurgy) which, through their multiplying effects and their great transformative powers, can contribute most to a rapid growth of the industrial sector”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“shipping… assumed colossal proportions in the post-war period. …..Greek seamen helped the economy by reducing unemployment and by providing valuable foreign currency through their remittances home. On the other hand, since shipping capital lies outside the effective control of the Greek state (it can always move elsewhere if the state bothers it with heavy taxes or other restrictions), it becomes increasingly an avenue of escape for Greek merchant capital. In this way, if migration robs Greece of its most valuable human resources, shipping plays a similar role with respect to the country’s financial resources..”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“Greece’s age-old specialization within the inter- national economy had gradually given rise to a spectacular concentration of capital among a handful of shipping magnates, mainly based in London or New York, whose aggregate holdings are widely reckoned to exceed the GNP of Greece.”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

In conclusion, Greece did not break out of the strait-jacket of a dependent economy. Despite large state structure support, Greek capitalists did not establish an effective manufacturing base:

“from a ‘under-developed’ economy: i.e. a fast-growing, highly parasitic tertiary sector, a weak and more or less stagnant manufacturing sector with a low labour absorption capacity, and a large but inefficient agricultural sector……Whereas in 1938 manufacturing output amounted to 85·6 per cent of all industrial output, it declined to 79·7 per cent in 1948–9 and to 73 per cent during the 1959–60 period.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“Thus in the late fifties more than half the labour force was still employed in agriculture, whereas the contribution of the industrial sector to the GNP was only around 25 per cent.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Correspondingly foreign investors ensured that favourable legislation was passed in 1953, and by the 1960s a large scale influx of foreign capital flowed in. This was concentrated in the heaviest key sectors, and by the mid 60’s the industrial development had qualitatively changed with heavy industry capital making goods predominating:

TABLE 1 Flow of Foreign Capital into Greece (Dollars)

1960 11,683,700
1961 13,509,809
1962 16,764,758
1963 50,026,290
1964 59,716,887
1965 111,596,368
1966 157,606,242
1967 32,265,000
1969 64,000,000
1970 70,000,000

By the end of 1973, foreign capital invested in Greece had risen to a total of approximately $725 million…. not very impressive if one takes into account that in a single year (1969) $2,504 million went to the gross formation of fixed capital in the Greek economy.

Nevertheless, as foreign capital was mainly directed to-wards the key manufacturing sectors, its impact on the economy was much greater than its relatively small size would suggest. In fact, especially during and after the years 1962–3, when the metallurgical, chemical and metal construction industries experienced a great boost due to foreign investments, one can speak of a qualitative break in the growth of Greek industry. Not only did the industrial sector start expanding at a much faster rate, but there was an important shift in investment from light consumer goods to capital goods and durables.

Whereas in the period 1948–50 light industry represented 77·5 per cent of total manufacturing output, its share went down to 60·9 per cent in 1963–70.31 This important shift is clearly reflected in the changing structure of the Greek export trade.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Correspondingly, there was shift away from agriculture in the economy. And by the 1970s the economy had become qualitatively industrialised:

“In 1960 agricultural products constituted 80 per cent of the country’s exports, but this figure went down to 54 per cent in 1966 and to 42 per cent in 1971, as Greece was more able to export industrial goods. … Despite the dramatic decrease of the agricultural population during the fifties and sixties, the agrarian structure does not show any signs of basic change: there is no marked tendency towards land concentration or the emergence of large-scale capitalist enterprises in agriculture.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

There was a major qualitative change by the 60s, towards industrial development. But it did not eliminate ‘under-development’:

“Thus the sixties saw a qualitative advance in the industrialization of modern Greece. There can be little doubt that the ability of the Greek economy to reap the benefits from concentrated foreign investment in manufacturing was due to its own pre-existing capitalist development. This was not able to generate a significant industrial sector autonomously, but it could adapt itself to, and consolidate one with exceptional rapidity. Yet this type of capitalist development not only failed to eliminate some fundamental aspects of Greek under-development, but on the contrary accentuated them, creating disruptions and dislocations which are directly relevant to an understanding of developments in the political superstructure.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

There ensued an enormous state monopoly centralized economy in the industrial sector:

“The intrusion of foreign capital, in close collaboration with Greek capital and the Greek state, reinforced the already impressive degree of capital concentration in the economy. A first rough intimation of this is conveyed by the enormous size (in terms of assets) of such giants as ESSO-Pappas or Pechiney, or the fact that out of the 200 largest companies in terms of fixed capital, seventeen were fully foreign-owned and in another thirty-nine foreign capital had a degree of participation varying from 10 to 90 per cent. As the share of foreign capital in the GNP steadily increased (from 2·15 per cent in 1962 to 8·15 per cent in 1972), the monopolistic tendencies of the Greek economy were markedly accentuated. If in the fifties monopoly or oligopoly were due mainly to indiscriminate and nepotistic state protectionism, in the sixties they were due rather to the capital intensive nature of the new industries and the small size of the Greek market.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

But the working class was still small. This is reflected in the predominance of small artisanal or petit-bourgeois production:

“This impressive concentration of industrial capital did not eliminate the plethora of small industrial units, which for the most part have a family-oriented, artisanal character. Indeed, one of the most striking characteristics of Greek industry is the persistence, especially in the more traditional sectors of the economy (footwear, clothing, leather, wood products), of small, low-productivity units side by side with large firms that exercise a quasi-monopolistic control of the market. The extent to which small firms persisted in the Greek manufacturing sector can be seen by the fact that whereas in 1930 93·2 per cent of manufacturing establishments were employing fewer than five persons, by 1958 this percentage had only gone down to 84·9 per cent. In 1958 the percentage of firms employing more than twenty persons was 2·1 per cent.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

The working class and peasantry of Greece became progressively more squeezed:

“Gross per capita in- come, approximately $500 at the beginning of the sixties, had reached the $1,000 level by the end of the decade.38 But the few rough calculations which have been made in the absence of complete data leave us in no doubt as to the inequities which disfigure this spectacular gain. For instance, according to a relatively recent estimate, 40
per cent of the lowest income groups receive 9·5 per cent of the national income (after deduction of taxes and social security benefits), whereas the 17 per cent in the top income brackets receive 58 per cent. From 1954 to 1966, when the national income approximately doubled, profits tripled (banking profits between 1966 and 1971 quadrupled).
Obviously, as the relative share of big capital increases, the relative share of all other income decreases. Those engaged in agriculture are, as usual, the worst off. Thus in 1951 agricultural income amounted to 83·3 per cent of the average national income; the proportion dropped to 60·3 per cent in 1962 and 51·1 per cent in 1971… in 1950 independent cultivators and their working family-members constituted 92·39 per cent of the agricultural labour force.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

In summary, there was an unusual dual character to the industrial landscape in Greece. It was one of a state sponsored heavy industry tied into foreign capital, while the petit-bourgeois remained very active:

“the capitalist mode of production, dominant in the Greek social formation, is linked to the mode of simple commodity production (agriculture, artisanal industry) in such a way as to keep growing continuously at the expense of the latter—neither destroying it completely, nor helping it to develop. And it is precisely here that the most crucial difference lies between the western European and the Greek models of industrialization. The former involved either the destruction of simple commodity production in agriculture and industry, or its articulated incorporation into the capitalist mode of production through a specialization which established a positive complementarity with big industry. As a result, the effects of technical progress, which originated in the dynamic sectors, spread fairly quickly to the rest of the economy, with beneficial consequences for income distribution, the expansion of internal markets and so on. In the Greek social formation, by contrast, capital intensive industrial production has taken an ‘enclave’ form. Despite its rapid growth in the sixties, it has not succeeded in expanding or even transferring its dynamism and high productivity to the backward sectors of the economy. Thus simple commodity production looms large within the Greek economy. It gives a lot (directly and indirectly) to the capitalist mode of production, but takes very little in return—just enough to reproduce itself. As a consequence, inequalities in Greece are much greater than those found in the West. For in addition to the usual inequalities between labour and capital in the sectors where the capitalist mode is dominant, Greece has inequalities resulting from the persistence of vast productivity differentials between ‘modern’ and ‘backward’ sectors of the economy.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

As the Greek countryside was becoming depopulated, many peasants emigrated. This deprived the Right wing forces in the countryside of support. The on-going immiseration-depression of the living standards of the working people led to a resurgence of left support. After some electoral gains of the left, the RIght wing army faction decided to set aside the triarchy of Army, parliamentary forces and Monarchy – and to become the sole power base.

How Cyprus Became the Focus of Imperialism and Heated Up Greek Battles

During this time, the relations between the Greek and Turkish pro-USA client states became strained with the Cyprus crisis. The Cyprus struggle had initially started as a war of liberation against the Ottoman Empire and Turkish oppression. It now pitched a small weak Cypriot national bourgeoisie against both the pro-Greek compradors and the pro-Turk compradors.

“The movement for liberation began under Turkish rule among the Greek Cypriots, who suffered particular oppression, and its main demand was for “Hellenic unity”, for “enosis” (that is, union with Greece). The movement continued to develop under British rule, and with the development of a weak Cypriot national bourgeoisie this class came to lead the liberation struggle. The effective leader of the movement was the Ethnarch of the Greek Orthodox Church, Mihail Mouskos — Archbishop Makarios — and embraced two organization
1) the National Organisation for Cypriot Struggle (EOKA), a right-wing body sponsored by the Greek government and led for many years by Greek General Georgios Grivas; and by

2) the Progressive Party of the Working People of Cyprus (AKEL) a body representing more directly the interests of the Cypriot national bourgeoisie, and presenting a left-wing image to appeal to the workers, peasants and urban petty bourgeoisie; it was led by Ezekias Papaioannou.”

(Marxist Leninist Organisation of Britain (MLOB) “THE CARVE-UP OF CYPRUS” “Class Against Class”; No.7, 1974. (http://ml-review.ca/aml/MLOB/CYPRUS_Fin.htm)

The fortunes of the Cyprus liberation movement were inextricably tied to the turn of events in Greece. Here the US imperialists held dominant sway:

“By 1966 Greece had become a semi-colony of US imperialism, and this position of dependence was reinforced by the military coup of 1967 which established a military dictatorship in Greece subservient to US imperialism. From now on the demand of the Cypriot national bourgeoisie (represented by the Makarios government) for national independence had the overwhelming 
support of the mass of the Greek Cypriots, while enosis became the demand only of the pro-imperialist Greek Cypriot comprador bourgeoisie.“

(MLOB, “The carve-up of Cyprus” Ibid)

What was the character of the ‘Independent’ state of Cyrus? In reality it was a neo-colony of Britain:

“In December 1959, prior to the granting of “independence”, elections were held for a Provisional President of Cyprus, Makarios stood on a platform of acceptance, with reservations, of the British imperialists’ plan and was elected by a large majority.
Despite the fact that Makarios represented the interests of the Cypriot national bourgeoisie, the British imperialists felt it safe to hand over “power” to a government headed by him by reason of the antagonisms artificially built up between the Greek Cypriot and Turkish Cypriot communities on the island, believing that these antagonisms and other “safeguards” could be effective in preventing the Makarios government from taking any steps to end the neo-colonial status of the island.
The “independent” Republic of Cyprus which came into being on August l6th, 1960 was, in reality a neo-colony of British imperialism.”

(MLOB “The carve-up of Cyprus” Ibid)

While Archbishop Makarios was a representative of the Cypriot national bourgeois, he was unwilling to launch a struggle that unleashed the power of the working class and peasantry. Thus he was left to resort to intrigue and maneuvers aimed at “seeking advantage of the contradictions between various powers” (MLOB). However this was ineffective as the USA blocked shipped arms from the USSR.

3. The Greek Junta – Greece by now fully a client state of the USA

As noted, the 1967 Greek military dictatorship was established by a coup backed by the USA. It was precipitated by the increasing working class struggles against the poor economic situation of the neo-colonial state of Greece, whereby:

“US civil aid came to an end in 1962; Greece was admitted as an Associate to the European Economic Community; and partial settlement was reached of Greece’s long-standing indebtedness to creditors in the USA and to private creditors in Britain. In each case the result was to add to the strain on the balance of payments..…. nearly one third of the budget was still devoted to defence… The stringency of the economic state of the country led to a number of ugly demonstrations. Strikes became increasingly frequent..”

Woodhouse C.M Ibid p. 282-283.

The then King, Constantine II was the Commander-in-chief of the army.
That the right wing forces were loosing support became clear from the 1958 electoral gains by left wing party EDA. The right wing section of the army – IDEA – launched the “Pericles” Plan:

“devised for the purpose of neutralizing the communists in case of war, this was used instead by the Right to achieve victory in the 1961 elections.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

This move by the extreme right-wing of the army, prompted George Papandreou
to start “Anendotos” — a “fight against the repressive policies of the Right.” His party was the “Center Union.”

“In the 1964 elections, Papandreou’s Centre Union successfully challenged the electoral dominance of reaction. In the elections of the following year, it further consolidated its position by gaining an unprecedented 53 per cent majority. Meanwhile, a strong left wing emerged within the Centre Union, under the leadership of Papandreou’s son Andreas.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Although George Papandreou tried to move against IDEA. He also tried to improve some aspects of working peoples lives. Together this prompted the Army and the Monarchy to plot against Center Union by slandering his son Andreas, as a traitor who shared state secrets. An interim coalition government of centrists was formed but fell quickly. Panagiotis Kanellopoulos formed a ‘Service Government’, prior to an election. However, the Army remained determined to sweep away any opposition:

“In 1967, the Greek military seized power in a coup d’état, overthrew the centre right government of Panagiotis Kanellopoulos. It established the Greek military junta of 1967-1974 which became known as the Régime of the Colonels.”
https://en.wikipedia.org/wiki/History_of_Greece

The Colonels did not change the economic direction of Greece, they made it simpler – they suppressed both workers, peasants and small petit-bourgeoisie – in support of the capitalists:

“The colonels, by following the logic of the economic model they had inherited, gave their unlimited support to big capital, foreign and indigenous. They made sure through repression that the ensuing growing inequalities would be accepted unconditionally, without protests or strikes to frighten capital away. After a short period of hesitation… private investment rose again and foreign capital continued its penetration of the Greek economy. The rate of growth soon surpassed pre-dictatorial levels and sustained an impressive acceleration. This achievement was a clear indication of the ‘fit’ between rapid capital accumulation and the dictatorship. Moreover… despite growing inequalities, the standard of living grew steadily during the period of the dictatorship. The colonels brought to fruition a process of dependent industrialization that had started before them. They did not initiate it, they merely pursued it with vigour and consistency.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Although Mouzelis is sceptical that the USA supported the coup, it most likely they did. Much later on, USA President Clinton – admitted that the USA had backed the Junta:

“When US President Clinton visited Greece in 1999, he obliquely offered what sounded like an apology when talking about a “painful” aspect of their recent history.
“When the junta took over in 1967 here, the United States allowed its interests in prosecuting the Cold War to prevail over its interests — I should say, its obligation — to support democracy, which was, after all, the cause for which we fought the Cold War.” Clinton said in his conciliatory remark,
“It’s important that we acknowledge that.”

Remarks By President Bill Clinton and Prime Minister Simitis of Greece to the Government of Greece, Business and Community leaders. Inter-Continental Hotel Athens, Greece – November 20, 1999.
Anti-Revisionism in Greece ‘The Rule of the Colonels’
– the military Junta 1967-1974 https://www.marxists.org/history//erol/greece/junta-note.pdf

But there was never any serious threat to the Parliamentary section of the Triarchy. The working class had simply been resisting the economic pressures.

They had not been organised into a meaningful communist resistance.

The Junta soon became led by George Papadopoulos, who instituted a reign of terror against leftists and communists. The King tried in 1967 to establish himself as a sole dictator, but was rebuffed and fled to exile.

As Prime Minister, Papadopoulos continued a brutal dictatorship overseen by the dreaded Military Service Police (ESA) of Ioannides. The crude overthrow of any democratic norms even led the Council of Europe to demand Greece’s resignation. But:

“The Western Alliance as a whole continued to tolerate the dictatorship, on the grounds that Greece formed an essential part of NATO….. The US went still further.. American policy became one of active support. American and Soviet strategists were engaged in a duel in the eastern Mediterranean. It became even more intense after the ‘Six-Day War’ of June 1967 between Israel and the Arab states… In September 1972, an agreement was signed by which the US Sixth Fleet would enjoy home-port facilities at Piraeus.”

(Woodhouse C.M Ibid pp.298-99)

Repressions continued and provoked even a Mutiny in the Navy in 1973. In an infamous incident, the students at Athens Polytechnic were brutally assaulted in November 1973. Using tanks to suppress a sit-in, more than 20 students died. This allowed Brigadier Ioannidis to seize power for himself, behind a puppet General Grivkas (Woodhouse Ibid p. 305). Formal martial law was again installed.

Ioannidis now also moved to oust Archbishop Makarios from Cyprus in a coup d’etat. Moreover this was coordinated with the imperialists in order to ensure the partition of Cyprus into a ‘Greek” area and a “Turkish” area. Events unfolded as follows:

“The pretext for action was a note from Makarios to Greek President Phaedon Gizikis on July 2nd., demanding the recall of the Greek officers of the National Guard on the grounds that they had been collaborating with EOKA-B (the terrorist Organisation formed by Grivas following his return to Cyprus in 1979 and continuing in existence after Grivas’s death in January 1974) in attempts to assassinate him and overthrow the government. The note set the deadline of July 20th. for compliance with the demand.

So, on July 16th, on the orders of their Greek officers, units of the (Greek Cypriot)–National Guard, in full collaboration with EOKA-B and with the Greek troops stationed on the island, staged a military coup and established a military dictatorship over the part of the island outside the enclaves under the control of the Turkish Cypriot comprador bourgeoisie’s “Transitional Administration”. A new puppet “President” was installed, one Nicos Sampson, a curfew imposed and thousands of supporters of the Makarios government arrested.

The Greek government recognised its puppet regime almost immediately. while the Turkish government threatened that unless the situation in Cyprus were reversed it would order its troops to invade Cyprus under the Treaty of Guarantee.

For four days the US imperialists and their allies in London, not only took no action, they deliberately obstructed the calling of the Security Council of the United Nations which could have taken some action. As Lord Caradon put it bluntly in a letter to the press:

“Due to the deliberate delay of the United States and the United Kingdom, it was not until after the invasion (i.e. of Cyprus by Turkish troops — Ed.) that the Security Council passed any resolution at all.”

(Lord Caradon: Letter to “The Guardian” 11 July 31st, 1974; p. 12).

Meanwhile, Makarios had managed to escape from Cyprus. He was received by the British government with formal, but non-committal, protocol, but the United States government talked with him only in his ecclesiastical capacity”:

“The President (i.e., Makarios — Ed.) had been given the chilly US reception of — in Dr. Kissinger’s terms — ‘a loser’, without hope of a comeback”.
(“The Observer”, July 28th.9 1974; p. 9).

On July 20th., therefore, some thousands of Turkish troops invaded northern Cyprus according to plan, occupying the principal area inhabited by Turkish Cypriots from the port of Kyrenia to the outskirts of the capital, Nicosia.

Later the same day, the US and British imperialists brought the Security Council into action, and it passed a resolution calling for an immediate cease-fire on Cyprus. And Greece and Turkey — despite being, according to the world press “on the verge of war” – dutifully obeyed.”

(MLOB; Ibid).

As Woodhouse rightly comments:

“The US was legitimately suspected of having backed Ioannidis”

(Woodhouse Ibid p.305)

4. Capitalist Class of Greece Moves to “democracy” and Europe

The work of the overt and now discredited dictatorship of the generals was done, they had suppressed any internal left opposition. The stage was set for the partition of Cyprus. Now under an international odium, the Colonels “took off their uniforms” – again under pressure again from the USA imperialists. As the MLOB put it:

“The Colonels Take Off Their Uniforms

On July 23rd 1967. The military junta that had exercised a military dictatorship suddenly stepped into the background over the people of Greece since 1967, and announced that they had invited civilian politician Konstantinos Karamanlis to form a civilian Cabinet.

Karamanlis is mainly remembered for his role as Prime Minister in arranging the murder (and its subsequent cover-up) of rival politician Gregori Lambrakis (portrayed in the film “Z“). While in exile in Paris, he was in June 1965 voted into Karamanlis’ party ‘New Democracy’. He was committed for trial by an investigating committee of the Greek Parliament for “bribery, dereliction of duty and maladministration”.

Due to an unfortunate error, the “democratic revolution” in Athens was announced by US Secretary of State Henry Kissinger the day before it actually happened. Even the capitalist press was compelled to treat the “revolution” with some cynicism:

“Dr. Kissinger and his emissary Mr. Joseph Sisco have played a key role in promoting governmental change in Gioecell.”

(“The Guardian”, July 24th., 1974; p. 2).

And in fact, little fundamental in Athens seemed to be changed. True, a considerable number of political prisoners were released (a necessary step in order to obtain enough politicians to form a government). But Brigadier-General Dimtrios Ioannides remained in office as head of the hated military police, martial law continued and in his Message to the Nation Karamanlis was careful not to mention the word “democratisation.”

(Marxist Leninist Organisation of Britain (MLOB) “THE CARVE-UP OF CYPRUS” “Class Against Class”; No.7, 1974. (http://ml-review.ca/aml/MLOB/CYPRUS_Fin.htm)

Nonetheless Karamanlis did restore the Constitution of 1952 (making it again a monarchy) and released all political prisoners and “legalised the CP for the first time since 1947”. (Woodhouse; Ibid; p. 305). In actual fact he had no real choice as the prior alliance that had formed the Triarchy (Army, right-wing parliamentarians, and Monarchy) had been totally discredited.

“When Constantinos Karamanlis, the grand old man of the Greek Right, stepped into the breech and formed the first post-junta government in 1974, it was immediately apparent that there could be no simple reversion to the old model of repressive parliamentarism… (But) his freshly formed New Democracy party retained and expanded the electoral support that had previously gone to the parties of the Right. But the political discrediting of both the army and the throne—which had, in any case, regarded with suspicion Karamanlis’s sixties project of modernizing the monarchy—left him with little choice but to seek the consolidation of right-wing hegemony through a populist inflection of internal and external policy… Within months of coming to power, the National Unity Government headed by Karamanlis had withdrawn from NATO’s military command structures, legalized the Communist Party for the first time since the civil war, organized relatively free general elections, and called a referendum that produced a 69 per cent majority in favour of the republic. Subsequent trials of junta leaders—in some cases leading to sentences of life imprisonment—underlined the subordination of the officer caste in ‘normal’ political activity…”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

By November 1974, elections had elected Karamanlis’ ‘New Democracy’ party. A further plebiscite confirmed a popular rejection of the monarchy. Karamanlis tellingly revealed his government’s objective nature:

“Karamanlis once remarked that he was himself the Americans’ only friend in Greece, and he dared not admit it.”

(Woodhouse Ibid p. 308).

Where was the economic development of Greece by now?
The hopes of the Greek capitalists had in fact not been fulfilled:

“In Greece… the early seventies already witnessed a rise in the specific weight of food, clothing and construction industries, and in the latter half of the decade manufacturing as a whole was contributing less than fifteen per cent of the annual increase in GDP, while fully three-quarters of GNP growth came from the inflated services sector. Manufacturing exports, given the small size of the internal market, had originally been conceived as one of the principal keys to success, and at first a number of important openings were found in this area. However, the recessionary tides of the seventies, together with the intense competition of low-wage economies precisely in textiles and other such goods, led to a loss of Greece’s market share everywhere except in the Middle East. By 1980, when PASOK was preparing to take over the reins of government, it was possible to talk of an actual tendency of deindustrialization, as the import/export ratio of manufacturing goods had risen to 3.2:1 from 2.5:1 in 1974.”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

While Karamanlis was not anti-American, he was moving Greece towards Europe. Relations with Europe, in order to join the European Economic Community (EEC), became the focus. Karamanlis had spent 15 years as an exile in France, and the French government had sent him back to Greece on a government plane.

On 1 January 1981, Greece joined the EEC becoming its tenth member.
But Karamanlis was struggling to withstand the growing resistance as inflation drove a left shift. The by now openly revisionist Communist party of Greece (KKE) had begun to capture a portion of the electorate:

“At the left end of the spectrum, the Communist Party of Greece (KKE) rapidly consolidated a strong position in industry and a ten-per-cent bloc of the electorate”;

(Petras Ibid New Left Review 1987)

A new façade to divert the masses was urgently needed. The prior ‘centrist’ party of George Papandreou had been the ‘Centre Union’. After the Junta dissolved itself, this won 20% in the first elections, and supported Karamanlis in government. Consequently it soon disintegrated. George’s son, Andreas Papandreou had been trained as an economist in the USA. He had been instrumental in the pre-Junta parliamentary government, in attempting to curb the most right-wing elements of the Army (IDEA). He had fled into exile after the coup, and from there organised a resistance grouping – Pan-Hellenic Liberation Movement (PAK).

After the Karamanlis return to parliamentary rule, Papandreou organised the
Pan-Hellenic Socialist Movement (PASOK). Within 7 years it had won the in the Greek elections of 1981. It was an explicitly social-democratic formation proposing:

“full-scale nationalization and ‘an end to the exploitation of man by man’. …. And an all-round modernization of Greece’s productive system that would bring to the fore hi-tech industries employing local and expatriate skilled labour and producing for internal consumption and export. In foreign policy, Papandreou retained his reputation as an intransigent opponent of NATO and of any Greek involvement in the EEC .. All these themes came together in skillful and insistent propaganda centred on the need for comprehensive change or allaghi.”

(Petras Ibid New Left Review 1987)

By October, Andreas Papandreou was elected into power for the PASOK party.
It is true that early progressive moves were made during its government including early secularisation and improvements in the role of women:

“The more general secularization of Greek society, and the introduction of divorce by consent, civil marriage and equal rights for children born out of wedlock.. the Greek parliament has abolished various repressive laws from the fifties as well as some of the extreme powers given to the police, and although the military has largely remained a world apart, subject to no fundamental restructuring or parliamentary scrutiny, it has been deprived of the means of direct intervention that used to be provided by its own radio station. .. the EAM/ELAS Resistance was officially rehabilitated.”

(Petras Ibid New Left Review 1987)

However PASOK retreated quickly upon attempts to tax urban real estate, and did not try seriously to ever move on this front again. Industry remained at a comparatively low level against other countries of Europe. PASOK did not base itself on the working class, and thus never proposed any resolve to deal with either the Greek capitalists, or the petit-bourgeois small business. Corruption was a real problem and Petras proposes the term ‘kleptocrats’ to describe a stratum of especially corrupt business:

“Most of the ‘industrialists’ continued to accumulate wealth by borrowing huge amounts of capital from the state banks, investing a fraction and diverting the rest to overseas bank accounts. The debt/ capital-investment ratio remained one of the highest in the world because industry was directed not by the usual kind of entrepreneur but by a highly distinctive stratum of kleptocrats. Agriculture too suffered from underinvestment, irrational and costly marketing systems, with a multiplicity of small farms divorced from organized credits or from productive systems capable of providing cheap inputs or processing outputs.”

(Petras Ibid New Left Review 1987)

The preponderance of petit-bourgeois ownership of small businesses had bred its brand of tax evasion and corruption:

“In Greece, …the pervasiveness of petty-bourgeois ideology and the ability of the non-productive classes to evade taxes and acquire multiple sources of income. Until Greek society recognizes the working class as its most valuable asset in the drive for industrialization, it will be doomed to stagnation and crisis.”

(Petras Ibid New Left Review 1987)

PASOK would not move against the capitalist class. Instead it resorted to short term loans to head off worker and petit bourgeois discontent. PASOK rule led to inflation and the start of the debt. At the same time debt increased. Meanwhile
The financial sectors were bolstered whilst manufacturing was neglected:

“PASOK’s early spending spree… increase(d) the consumption of nearly all sections of the population without creating any new industrial capacity to meet that demand. The government raised wage income, partially offsetting the inflationary erosion in Karamanlis’s final two years; private capital responded by slowing investment to the merest trickle. Exports stagnated, while imports mushroomed and invisible earnings (the mainstay of the external sector) began a sharp decline. To secure the populist compromise the regime had turned to foreign loans, fiscal deficits and EEC subsidies; ….

Public sector borrowing soared from 12–1 per cent of GDP in 1983 to 17–1 per cent in 1985, without having any effect on domestic output; and particularly in the run-up to the June 1985 elections it was increasingly used to finance current expenditures, which rose from 39 per cent of GDP in 1984 to 41 percent in 1985. As one study has noted:

‘The fastest-growing category was employment in services, almost exclusively led by continuing substantial increases at around 3 per cent per annum in employment in the public sector and in banks . . . In the three years to 1985 employment in manufacturing declined by around 2–1 per cent.’ Table Two (below) sets out the still sharper fall in output during
the first PASOK term.

Table 2: Greek Industry, 1981–1984: 1970 =100

                                         1981 1982 1983 1984
Consumer goods 195     191      188      192
Capital goods        180     163      167      172
Source: OECD Report on Greece, 1985/86.”

(Petras Ibid New Left Review 1987)

Agriculture also saw falling production:

“Agricultural growth for its first term was as follows:
_1.6, 1981; _2.4, 1982; _6.8, 1983; _6.4, 1984; _0.5, 1985.
The reason for these meagre results was that only a small part of the funds were actually used in agriculture. The remainder were employed to ‘finance consumption, to be redeposited with banks at much higher rates, and to be used for the acquisition of real estate in urban areas.’”

(Petras Ibid New Left Review 1987)

In fact, while the now infamous external Debt of Greece, became a ballooning problem under PASOK. Petras cites figures from the OECD:

“PASOK has also increased Greece’s role as a subordinate debtor nation beyond the worst period of the old Right… (See Table 3 Below.) The foreign debt stands at 45 per cent of GDP and payments account for close to a quarter of export earnings. Given the phasing- out of EEC balance of payments assistance, commercial borrowing will soon have to increase more than twofold, on terms dictated by the foreign banks: namely, the closure of unprofitable public enterprises; greater freedom for employers to hire and fire workers; tough anti- strike legislation, relaxation of price controls, an expansion of public– private ventures, and an open door to foreign investment.

Table 3:

Greece’s External Debt (in billions of $)
                       1981 1982 1983 1984 1985 1986
Total Debt         7.9      9.5      10.6   12.3    14.8    17.0”

(Petras Ibid New Left Review 1987)”

In fact – all this is very similar to today, and the same demands for ‘austerity’ were raised then by the European banks.

This social-democratic party, now more openly objectively played the role of a pro-European comprador:

“Papandreou .. freely engaged in anti-American rhetoric… contending that the American imperialism was the most serious threat to humanity, Papandreou unnecessarily antagonised Washington.”

(Kofas JV; “Under the Eagle’s Claw – Exceptionalism in Postwar US-Greek Relations”; Westport 2003; p.184)

Meanwhile Papandreou was moving Greece firmly into dependency to the EEC:

“Dependency results from the growing EEC domination of the Greek economy. While the EEC has increased the transfer of loans and grants to Greece, this has been more than offset by the takeover of internal markets and the displacement of Greek manufacturers and farmers. To quote again from the OECD report: ‘Whereas Greek manufacturing output has remained broadly stagnant in the three years to 1985, import volume of manufactures may have risen by roughly one fourth in the same period.”

(Petras Ibid New Left Review 1987)”

Neither PASOK nor the party New Democracy (Led by Kostas Karamanlis, the nephew of the former President) – differed substantially in their political orientation towards Europe. Both were realigning from the USA to Europe:

“Greece evolved from a client-patron relationship with the US to being an EU member, subordinating its national sovereignty to the community….
With increased competition of the regional economic blocs.. after the Cold War Greece drifted further from the US, because Europe was drifting as it strengthened and expanded its own sphere economically financially, politically, and militarily…”

(Kofas JV; “Under the Eagle’s Claw – Exceptionalism in Postwar US-Greek Relations”; Westport 2003; p.248)

Greece’s leaders also did not appreciate the USA more overtly favouring Turkey as its vassal state of choice in the Aegean and Mediterranean. But in fact, Papandreou was posturing – and perhaps to the populist base that PASOK had bult, that he was ant-USA. After all, Papanadreous signaled to the USA that were better terms given to Greece, that this re-orientation could be re-visited. Correspondingly during the 1984-1985 year, the total US military aid to Greece actually went up (Kofas, p.200 Ibid). Moreover he renewed Greece’s allegiance to NATO, and enabled the US fleet continued facilities.

This hesitation of Greece’s capitalist leader to completely cut the USA off as their pay-master, reflects that of the European powers themselves (see below). The determination of the EEC to sharply diverge, reject its subordinate status and openly challenge the USA, was still to come.

By 1985, PASOK reversed all its earlier progressive steps for workers wages and trade unions. It increased unemployment to doubled its rate (it was now above 10%). It enabled employers to revert to arbitrary practices of hiring and firing, and empowered them to break strikes.

Greece’s path was set by the refusal to tackle the core problem: Refusing an independent path and adopting a pro-European comprador path – just as before it had been a pro-USA comprador path. What did this mean? Essentially it mean chronic indebtedness with no possible release. Warnings that were later to be echoed in 2014 – began to sound:

“Interest payments on the external debt have been undergoing a geometric progression (up from $466 million in 1980 to $1.1 billion in 1984), while exports have fallen from $4.7 billion in 1981 to $4.4 billion in 1984. … Capital flight has increased significantly in the 1980s, as it has done in other indebted rentier states. ….. a positive $15 million balance of payments in 1980 became a negative $312 million in 1984. For these reasons—together with the overwhelming predominance of speculative over entrepreneurial capital—it is clear that the financing of further growth is virtually excluded. Far from inducing the inflow of new resources for development, Greece’s ‘opening to the outside’ or ‘liberalization of the economy’ will facilitate the outflow of resources, thereby deepening underdevelopment. Nor will the device of lowering wages make Greek capital competitive, so long as industrial capital acts principally as a financial intermediary and fails to innovate and invent.”

(Petras Ibid New Left Review 1987)

The details of individual governmental changes up to the 2010 financial crisis in Greece, are beyond the scope of this article. In fact, they do not substantially alter the analysis. The trajectory of Greece was now set. While the political leaders were acting in the interests of the dependent capitalists (in essence all of Greek capital) – the compact with foreign imperialism would ensure the Greece crisis became a financial chain-reaction.

We must briefly examine the politics of the European coalition at this point.

The Appendix carries a detailed chronology describing the history of Greece from 1981 up to 2010.

5. The USA Moves to Become the World Imperialist Leader – The Character of the European Union – from pro-USA states to anti-USA coalition

Moving to a meaningful trans-national coalition of European capitalist states – took several steps and forms. The coalition morphed from a post-war Europe wish to re-build, through to the European Economic Community (EEC) and then to the European Union (EU):

“The Community’s initial aim was to bring about economic integration, including a common market and customs union, among its six founding members: Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. It gained a common set of institutions along with the European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM) as one of the European Communities under the 1965 Merger Treaty (Treaty of Brussels). In 1993, a complete single market was achieved allowing for the free movement of goods, capital, services, and people within the EEC…

Upon the entry into force of the Maastricht Treaty in 1993, the EEC was renamed the European Community to reflect that it covered a wider range than economic policy. This was also when the three European Communities, including the EC, were collectively made to constitute the first of the three pillars of the European Union, which the treaty also founded. The EC existed in this form until it was abolished by the 2009 Treaty of Lisbon, which incorporated the EC’s institutions into the EU’s wider framework and provided that the EU would “replace and succeed the European Community.”

(Wikipedia: https://en.wikipedia.org/wiki/European_Economic_Community)

Through these steps, the class alliances of the countries of the European alliance changed in its essential character.

Immediately post-Second World War, the European countries, were formed into a pro-USA formation. However over time they became anxious to attain autonomy from the USA. This fight-back reached a climax after the USA launched its financial attack in launching the Dollar Hegemony in the Plaza Agreement of Richard Nixon in August 1971. This act finally precipitated the formation of the Eurozone. This section traces the course of the changing class character of Europe in the post-Second World War decades.

At the end of the Second World War, the USA planned to rebuild European capitalism through the USA Marshall Plan for its own ends. This was facilitated by the fact that the Second World War had physically devastated Europe, and that many countries were in debt to the USA. Britain, for example was now completely beholden to its major competitor – the USA:

“When sales of foreign investments and of gold and dollars are added in, the net change on capital account between the outbreak of war and the end of 1945 amounted to no less than Pounds Sterling 4,700 million. The United Kingdom ended the war with the largest debt in history.”

(A.Cairncross. Years of Recovery, British Economic Policy. 1945-51. London, 1985. p.7). 

American imperialists recognised that Europe needed to be re-built as a bulwark against further socialist upheavals. Especially as the USSR successful battles, had become an inspiration across the world. The USA imperialists – as personified by James Warburg (part owner of the House of Morgan, a controller of USA international finance and industrial and utility trusts) – remarked:

“Germany was the hub of the weak German economy ‘the largest single compact mass of skilled labour on the Continent’, it should be transformed from ‘the present poor-house and plague-center’.. ‘into a powerhouse for a rapid reconstruction of Europe, without letting the powerhouse acquire too broad a permanent franchise and – above all – without letting the powerhouse ever again become an arsenal’…. ‘The Westward thrusting of communism will not be stopped by an physical frontier. It can be only stopped only a planned, US-Aided reconstruction so liberal and even revolutionary as to meet the challenge on its own grounds, and to strike the meaning from the accusation of American “dollar diplomacy.”

(Van Der Pijl, K. ‘The making of an Atlantic ruling class”; pp. 42-43,146; London 2012).

As time would show, once Europe had been rebuilt as a bulwark, the USA could not restrain European capitalists wanting their own dominance.

In postwar Europe – the Marshall Plan was one of the three trade and economic tactical instruments by which the USA imperialists wished to take advantage of the post-Second World War crippling of the European powers. The other two were the creation of the International Monetary Fund (IMF) and the creation of the General Agreement of Trades and Tariffs (GATT). The military instrument to back these up was of course the North Atlantic Treaty Organization (NATO). The Marshall Plan was conceived as an anti-communist and anti-nationalist weapon and a means to erode European independence:

“The establishment of American hegemony in the North Atlantic area was directed simultaneously against the spread of planned economy and social revolution beyond the Soviet-controlled area in Europe and against the national, self-contained reconstruction programs pursued by most West European states in the immediate post-war period. These programs in which local Communists parties participated, were judged unsuited for maintaining capitalist rule in the long run. ‘Europe would have been Communistic if it had not been for the Marshall Plan, Marshall Aid administrator Paul Hoffman claimed in February 1950.”

(Van Der Pijl, K. Ibid; p.148-9)

Van Pijil summarises that:

“Through the Marshall offensive, the Pax American was imposed on the economic ruins of the defunct Pax Britannica in Europe.”

(van Pijl Ibid p. 167) .

But the formation of the IMF was another key strand of the USA design.

“Bretton Woods.. Shorthand for the system, designed by the US and Britain, that governed international monetary and economic relations in the decades following the Second World War. … (It was) the launch of the post-war phase of super-dominance of the US and the dollar. .. All member countries pledged themselves to play by an internationally agreed set of rules…these rules were quite strict, and enforced by a new world economic policeman, the International Monetary Fund (IMF). Countries had to declare a ‘par value’ – an exchange rate – of their currency in terms of the American dollar and/or gold, and change it only in consultation with the IMF. Various forms of currency manipulation were named … to prevent a return to the competitive devaluations and currency chaos of the 1930s. While countries could keep some controls on movements of capital, they basically undertook gradually to dismantle the wartime systems of exchange and trade controls and to move towards the free convertibility of their currencies… they also pledged themselves to adhere to the rules of the multilateral trades and payments scheme”;

(Dean, Marjorie & Pringle, Robert “The Central Banks”; London 1994 p.75).

In return for this agreement, the USA agreed to take over the position as “lender of last resort” – whereby it would honour those creditors who wished to remove gold in exchange for dollar. It would:

“Submit to discipline by its agreement to convert into gold any dollar balances presented to it by overseas central banks at the fixed price of $35 an ounce. The US was the only country to accept such a gold convertibility obligation and the only one in a position to do so, having ended the war owning about two-fifths of the world’s stock of monetary gold”;

Dean and Pringle; Ibid p. 76.

This in effect took over the dominant position of lender of last resort that the British government had previously held from 1924 to September 1931 (Dean and Pringle Ibid p. 63). The US was anxious to see this agreement effected as it would enable the USA to control international monetary policy:

“In these countries (Ed -ie. those agreeing to join the IMF) national central banks of countries other than the US had little influence on policy decisions. Domestic and economic policy came to be dominated by one objective – the maintenance of the fixed exchange rate against the dollar – and exchange rate policy, was of course entirely a matter for government…. For the most part, a government would respond to an impending payments deficit by tightening fiscal policy (Ed-i.e. dropping the printing of money) or putting up interest rates; and a country with a surplus would ease fiscal policy or lower interest rates. Of the major countries only France resorted regularly to devaluation as way of maintaining its export competitiveness and growth.”

(Dean and Pringle; Ibid p. 76).

This meant that the USA did not need to try to maintain its currency value. All countries had to acquire the dollar; there was no need for the dollar to be defended at any particular rate of exchange. By 1949 the US had acquired 72 % of the world’s gold. The Bretton Woods Proposal had been resisted by Lord Maynard Keynes of Britain, but to no avail. This Agreement eased the post war period for the USA, because all other Central Banks had to have a dollar reserve:

“Making the dollar a reserve currency meant that central bankers round the world had to have dollars. They had to buy dollars in the marketplace which pushed up the price of the dollar up, threatening the parity of the currency with the dollar. Thus they could only buy when the dollar was weak… This suited the US and the US Federal Reserve which could follow a very lax monetary policy to make sure that there were always dollars to go around. It worked wonders for post-war US domestic policy, helping promote the wartime dream of full employment.”

(Bose, Mihir “The Crash” London, 1988. p.135).

The USA was in an unusual position of dominance. It had funded the war for the Western capitalist allies, detonated the Atom bomb thereby showing its military dominance, and had a home base that was unaffected to a large extent by the war. It proceeded to further dictate terms, to ensure its vote in the IMF on decisions, was a veto:

“In order to finance European and other foreign purchases from America, that is to ensure adequate financial resources to sustain US exports, (“world trade”) the US Government had taken the lead in 1944 at Bretton Woods to establish the International Monetary Fund (IMF) and the World Bank. Loans were provided by the U.S. Government and US credit markets via the World Bank to European governments, which used them mainly to pay for goods supplied by American exporters. The source of the original loan funds provided by the IMF came from foreign currency and gold subscriptions by the participating nations. America’s subscription amounted to almost $3 billion and entitled it to nearly 30% of the voting power. The member nations agreed that an 80% majority vote would be required for most rulings, thus conceding unique veto power to the US… Europe was fully aware that it was ceding to America the option of determining its own currency values and tariffs. The US was the only nation with sufficient foreign exchange to finance a program of overseas investments, long term financing and foreign aid…”

(Hudson, Michael. Global Fracture, the new international Economic Order. New York, 1977. p.11-12).

Such a ceding of power to the USA was self-evident as any debts to the USA were only made payable in dollars or gold. The Bretton Woods Agreement had after all made the dollar “as good as gold.” The USA actively hoarded gold. Until 1958 and the Korean war the gold stocks of the USA remained exceedingly high, in correspondence with the USA stipulations on repayment). The USA also ensured that the major European powers joined the Gold Pool. This served:

“To ensure that the gold parity of the dollar would be supported by the central banks, the European ones mainly, who would thus have to sell central bank’s stocks of gold as the occasion demanded. The price of gold was kept artificially low at a time when the price of goods was rising. The dollar thus stayed as good as gold and the US was freed from the threat of having to support the gold parity of the dollar by itself, or of seeing gold overtake the dollar as an international reserve instrument which remained a theoretical possibility in the framework of the Bretton Woods Agreement. The US spared no efforts in its campaign to impose and maintain the Gold Standard.”

(Fiit,Yann, Faire, Alexandre, and Vigier, Jean-Pierre; (“The World Economic Crisis, US imperialism at Bay”; London, 1980; p.76.;p.83).

Britain was being firmly eclipsed by the USA as the foremost imperialist. The pivotal point forcing even the most stubborn British imperialists to recognise this, came in the Suez disaster of 1956 (these events were described in “The Gulf war – the USA Imperialists Bid To Recapture World Supremacy” at
http://ml-review.ca/aml/allianceissues/alliance2-gulfwar.htm)

Meanwhile the other European capitalists searched for ways to move into more independence. This was a slow process. The USA continued to exert major obstruction to real independence for some time. Within each of the major European states, some elements were more inclined towards the USA (i.e. compradors – the so-called pro-‘Atlantic’ bourgeoisie), some were more interested in maintaining an independent sovereignty (the so-called ’Euro-nationalists’). These tensions played out over decades, spanning three “waves” of USA offensives:

“Three successive strategies of Atlantic unity .. corresponded to the different offensives periods of American capitalism. The first was Roosevelt’s concept of Atlantic universalism, which derived its specific Atlantic dimension from the American focus of World War Two and the key position of the British Empire in the world America wanted to expand into. The second version of Atlantic unity was the Atlantic Union idea, which surfaced at the time of the Marshall Plan and combined a status quo approach to control of the periphery with a high-pitched Cold War unity against the Soviet Union. The third Atlantic strategy was the Atlantic partnership scheme promulgated by President Kennedy in an attempt to restore unity of purpose to an Atlantic world in which the establishment of a restrictive EEC demonstrated the degree to which Western European capital had emancipated itself from American tutelage and was intent on carving out a sphere-of-interest of its own.”

(Van Der Pijl, K; Ibid; p.xxxiv; London 2012).

The so-called Atlanticists (the comprador bourgeoisie for the USA – a term usually reserved for countries of colonial or semi-colonial status) were largely representatives of finance capital. These were interested in the freedom of shipping capital reserves freely across international boundaries. They are also termed “liberal internationalists” by van der Pijil.

In contrast the “Euro-nationalists” represented industrial capital – and were interested in ensuring reinvestment in and redeveloping a European heavy industrial base. They supported single ‘sovereign’ or independent, state funding of heavy industry and can be termed state monopolists .

As an internal intra-European battle between these two segments of capital occurred, the USA imperialists initially favoured steps to a pan-European supra-national state. Of course this single supra-national state, has still not been achieved. However between 1945-1998 – there were periods where the European Euronationalist capitalist powers waxed and waned, as USA imperialism counter attacked.

Regardless of whose interests it served, the overall tendency was towards a move for unity of the smaller European countries. Only later was directed against the USA hegemony. The class character of the European coalescing would shift form a pro-USA vassal coalition to an anti-USA coalition. Ultimately this would end up being dominated by the German bourgeoisie.

Through this period, the fading British imperialists continued to rely and favour USA imperialism. In fact it was actually Ernest Bevin, British Foreign Secretary who first proposed the NATO alliance:

“The actual initiative to found a North Atlantic military alliance was taken by Ernest Bevin in 1948 following a series of defence treaties between Western European states… Bevin .. in early 1948, urged … formal Atlantic cohesion of a political nature.. to USA Ambassador Lew Douglas.. the treaty establishing the NATO was concluded in April 1949”

(Van Pijl Ibid p. 157).

Early on French imperialism, as represented by General De Gaulle, wished to utilise USA strength to stand against the USA. The early events were summarised as below:

“The war encouraged a proliferation of new schemes for European regional organisation. De Gaulle for instance repeatedly voiced the idea that European unity might be a bulwark against both the Soviet Union and the United States, and comparable arguments were heard in various segments of the German, Italian, and Dutch bourgeoisie Resistances….

Churchill’s proposal for a Council of Europe provides probably the best example of the (Atlanticist) concept of European unity… coupled to Britain’s desire to maintain its special link with the Commonwealth and the United States.. “

(Van Der Pijl, K. Ibid; p26; London 2012).

In contrast:

“The Euronational concept combined a number of state-monopolisitic attributes like a strong emphasis on a “European” economic policy with a distinct rejection of Atlantic unity” ;

(Van Der Pijl, K. Ibid; p26; London 2012).

The first USA steps to infiltrate Europe were actually before the Second World War. In most accounts, Jean Monnet the post-war Finance Minster of France figures prominently:

“Jean Monnet… was perhaps one of the foremost in the European postwar leaders to see the necessity of a coalition of European countries…. As early as 1921 Monnet had advised Eduard Benes: To address the problem of the weakness of Central European economic by establishing a “federation because of the region formed a “natural economic unit.”

(James Laxer. “Inventing Europe”; Toronto, 1991.p. 27).

Later in the Second World War: 


“Writing on behalf of the French Committee of National Liberation, Monnet for the first time advocated the formation of a federation of European states to be established following the conflict..”

(Laxer, Ibid, p. 27).

But Jean Monnet was in reality, a pro-USA comprador. He had spent many years working in banking in the USA and had married a scion of the US ruling classes. Ultimately he saw not a rivalry between the USA and pan-Europe, but a partnership, which later USA President Kennedy was also to espouse (van Pijl p. 29):

“The most important representative of the Atlantic Partnership, or Euramerican concept in France was Jean Monnet. 1962 was Monnet’s year of triumph, in which he thought the partnership of equals between the US and the EEC, by which the Soviet union could be effectively checked, was actually materializing. In Monnet’s view this would entail European military autonomy as well. ‘Equal partnership must also apply to the responsibilities of common defense, it requires amongst other things, the organisation of a European atomic force including Britain and in partnership with the US.”

(Van der Pijl: Ibid; P. 225).

Monnet’s relationship with the USA ruling class representatives of capital was close at even a personal level:

“There is no doubt.. Monnet’s initiatives .. owed much to American encouragement. His decisive advantage was the closeness of his association with the USA political elite.. the Dulles brothers, Acheson, Harriman, McCloy, Ball and Brice and others.. he was to become widely distrusted in his own country because of it..”

(Anderson, Perry. “The New Old World”; London 2009 p.15)

“Monnet’s strength as an architect of integration (i.e. of Europe – ed) did not lie in any particular leverage with European cabinets… but in his direct line to Washington.”

(Anderson, Perry. Ibid; p. 17)

By May 1949, the first concrete post-war steps for uniting Europe into a pro-Atlantic (i.e. pro-USA) bloc led to the Statute of the Council of Europe.

On 9 May 1950, the French Foreign Minister Robert Schuman proposed to integrate the coal and steel industries of Europe. The Schumann Proposal for the European Iron and Steel Community, was designed to form a competitive market in iron and steel, using substantial public sector capital. Britain refused to join at that stage. By 1958, trade in the ECSC in steel had increased by 157% and steel output by 65% (Laxer, p. 38).

In “Alliance Marxist-Leninist” of October 1992, the Schumann Plan was portrayed as an anti-American move; and Jean Monnet as a Euronationalist. Alliance was incorrect in this analysis. (Alliance Marxist-Leninist ALLIANCE (MARXIST-LENINIST (Number 3, October 1992) “Crisis In Capital And Their Solution – Free Trade And Protectionism In Developed Countries” http://ml-review.ca/aml/AllianceIssues/ALLIANCE3ECONOMICS.html

The reality was far more complex. In fact the USA had argued that the Schumann Plan was of use since:

“Secretary of State Acheson in 1951 estimated that the Schumann Plan was useful.. since it would “pull Germany, certainly Western Germany into economic relationship with Europe. It will tie it in and lay a foundation which will ally fears the Germany might come loose and go off on an independent or pro-Russian policy.”

(van Pijl Ibid p. 157) .

The USA imperialists with their European stooges – and even with the Euro-nationalists – at this stage all continued to agree that Europe needed to unite. The vision of many planners of USA strategy, was akin to that of Paul Hoffman – leading member of the Committee headed by Averell Harriman secretary of Commerce – speaking to the Senate Foreign Relations Committee in 1950:

“We know that there is no possibility of Europe becoming the kind of an economy that will make it a great force of strength in the Atlantic community unless we break down the barriers between those 17 political subdivisions with which we are working… so that you have a single market, or something close to it, in which you will have large-scale manufacturing because you have a large market in which to sell it.”

(Van Pijl Ibid p. 197)

Britain and France after Suez, had to accept that in the immediate future, their only role on the world stage would be as a junior partner to USA imperialism. They threw their lot in with the Americans. The USA used their influence with the British to disrupt attempts at a defence force independent of the US.

But as the USA became ever more hegemonic in Europe, De Gaulle and others turned to resist USA incursion. This was forseen by J.V.Stalin:

“Britain and France .. are imperialist countries.. Can it be assumed that they will endlessly tolerate the present situation in which.. Americans are penetrating into the economies of Britain and France and trying to convert them into adjuncts of the USA economy?

…Would it not be truer to say that capitalist Britain and France will be 
compelled in the end to break from the embrace of the USA and enter into conflict with it in order to secure an independent position and of course high profits?”

(J.V. Stalin, “Economic problems of the Socialism in the USSR”; Moscow, 1952. p. 38).

The loosening of the dependency chains on European nations formed by the credit of the USA Marshall Plan would take several interim steps.

By 1957, the Treaty of Rome was signed which established the European Economic Community (EEC). Consistent with its overall European strategy, the formation of the EEC was supported by the USA. In fact:

Eisenhower (said) .. that the Treaty of Rome would be one of the finest days in the history of the free world, perhaps even more so than winning the war”;

(Anderson; Ibid; p. 18).

There was now a dramatic opening of the European market for financial penetration – to take over European industries, as well as their markets:

“The shift from commercial to financial penetration (ie of Europe – by the USA -ed) was confirmed by the formation of the EEC. The Common Market dramatically changed American prospects for expansion in this respect.“

(Van der Pijil; Ibid, p.193)

In reply to De Gaulle, the USA attempted to weaken the development of the future European Union, by using its stooge the weak British imperialists. Thereupon French General De Gaulle later on vetoed the entry of Great Britain into the EEC for precisely this reason.

By the time of Nixon and Kissinger, the situation had shifted. Now the USA perceived the threat in the now built up European Community:

“(they) started to perceive the potential for a rival great power in Western Europe”;

(Anderson Ibid p. 21).

How had things changed so dramatically? The balance of power between the Euronationalists and the pro-US Atlanticists had changed after the rise of the dollar hegemony. To recap, the Bretton Woods Agreement of 1944 to stay on a gold convertibility was simply put aside by the USA. By the 1960s, under USA President Johnson, inflation was created by printing more dollars. This enabled the USA to fund the Vietnam War and its limited social reforms of the so-called ‘Great Society” (Dean & Pringle Ibid p.80; Palmer Ibid p.61). This had dire consequences:

“The net result in the succeeding decades was a scale of Federal domestic budget deficit and increasingly, balance of payments deficit without precedent in US history. At first the deficits and consequential outflow of dollars into the world economy had been regarded as benign.. The deficits initially helped to finance the mutual economic recovery of Americans’ allied (and client) economies. But as the outflow of dollars turned into a might flood, American control over banks grew by leaps and bounds, Between 1970 and 1975 the assets of overseas branches of US banks grew from $47 billion to $166 billion. The over-valued US dollar came to be seen as the means by which European industry was being acquired cheaply by US interests… fears were expressed that Western Europe was being turned into a fiefdom of US multinationals.. By the late 1960s the gap between the US dollar’s internal purchasing power and its international value had widened alarmingly. The Europeans were faced with the choice of either accepting these depreciating dollars (and thus, in effect, of subsidizing the American economy and worldwide military and political commitments) or exploiting America’s Bretton Woods commitment to swap dollars for gold at the fixed prices.”

(Palmer Ibid p. 62).

De Gaulle remarked early on, that this was a USA attack using dollarization of the world economy, and warned that:

“The Americans only used the atom device twice on Asia. … but they use the dollar on Europe every day”

(Cited Palmer, John: “Europe without America? The crisis in Atlantic Relations”; Oxford; 1988; p.62)

Essentially the USA was pursuing a policy of financial export to drive acquisition of European industrial and financial companies. Simultaneously it unwittingly began the financialization driving world inflation – from ‘hot money’. European nationalist leaders of many countries objected. As well as De Gaulle, French President Giscard d’Estaing objected:

“It is rather remarkable that the war in Vietnam, a localized conflict of a very special nature involving a great power and a small power could have such a far reaching effects on world economic equilibrium.. Any other country that was faced with a balance-of-payment deficit of this magnitude would have been obliged to take steps to restore balance whereas the US was not obliged to do so; the method of financing its deficit exempted it from having to restore equilibrium and it was therefore a system which caused considerable inequality in the interplay of monetary power…”

(Hudson, Michael, Global Fracture, the new international Economic Order. New York, 1977; p.31).

In another more serious threat to USA hegemony, the German state had become more pro-independent. Earlier leaders (Konrad Ardenauer Chancellor [1949-1962] and Ludwig Erhard [Chancellor 1963-1965]) of post-war West Germany had been resolutely pro-USA. The attitude of later German leaders can be gauged from a remark made by Chancellor Helmut Schmidt (Chancellor 1974-1982) when he decried:

“The misuse of the dollar as an instrument of US foreign policy.”

(Cited Palmer John: “Europe without America? The crisis in Atlantic Relations”; Oxford; 1988; p. 10)

This reaction against the USA had its counterpart in Britain in the Westland Helicopter crisis, where Defence Minister Michael Hesletine revolted against Mrs Thatcher. He was soon despatched by the stalwart pro-USA Mrs Thatcher. This was pointed out by the Communist League at the time.

The salient point is that the USA fiscal policies prompted the Euronationalists to move towards the European Monetary System (EMS) and before that the Snake. This then became the European Monetary Union (EMU):

“European Community alarm at the misuse of the dollar’s privileged position in the world currency system encouraged the EEC states to distance themselves in monetary policy from the US in the late 1970’s. President Valery Giscard D’Estaing of France led – despite British opposition – to the creation of … the EMS.. the breakup of the dollar-dominated monetary system also marked the end of the earlier Atlantic consensus enshrined in the Bretton Woods Agreement of 1944”;

(Palmer J ibid p. 11).

In Alliance Marxist-Leninist Number 3, 1992, we traced the rise of the European Union and the emerging hegemonic role of the unified single German State – after the disintegration of the Comecon states including former East Germany.

We concluded Alliance 3 by characterising the then inter-imperial rivalries as follows:

The current crisis of capital forces formation of blocs.

The current epoch is one of a disintegration of the power of the USA imperialists and an increase in power of the German and thereby European imperialists and the Japanese imperialists. Each of these competitors strive to create a super trading bloc; within whose borders free trade (or ‘ freer trade’) occurs. Outside of the bloc, protectionism is the policy.

These policies result from the major crisis of over-production that the world is experiencing. The final rupture of the Comecon capitalist block offers the only untapped market; and so the Blocs are trying to extend themselves into the ex-Comecon markets.

In the case of the USA Free Trade Bloc being set up between Mexico, the USA and Canada; the Block is clearly under the domination of the USA. Here there is no effective balance between opposing international imperialism. The differences between the European imperialists do allow for a certain balance; this is not achievable between the USA and Canada; and less so between USA and Mexico.

….. The European Economic Community is more delicately balanced between the competing imperialists. Of the nations within the fold, only Britain (now a junior partner) has significant allegiance to the USA. The others are far more committed to the EEC; even risking domination by Germany.

In the Far East, it is likely that a massive trading bloc between Japan and China is going to make it impossible for many of the Pacific basin nations not to enter an alliance dominated by the Japanese imperialists.

These maneuvers are the first salvoes of the next World War.”

(Alliance 3: Ibid: http://ml-review.ca/aml/AllianceIssues/ALLIANCE3ECONOMICS.html)

We believe that these assessments – overall – remain correct. They are also, consistent with Stalin’s famous prediction that under capitalism competitive wars for markets were inevitable, and that sooner or later – Europe would chafe under USA domination:

“Inevitability of Wars between Capitalist Countries”; Some comrades think that owing to the development of new international conditions since the Second World War, wars between capitalist countries have ceased to be inevitable. These comrades are mistaken. Outwardly everything would seem to be going well; the USA has put Western Europe, Japan, and other capitalist countries on rations; Germany (Western), Britain, France, Italy & Japan have fallen into the clutches of the USA and are meekly obeying its commands. But it would be mistaken to think that things can continue to “go well” for ” all eternity”, that these countries will tolerate the domination and oppression of the United States endlessly, that they will not endeavor to tear loose from American bondage and take the part of independent development.”

(Stalin; ‘Economic Problems of the USSR”: Peking; p.33).

Now in 2015, as we update the picture in 2015, the basic rhythm of inter-imperialist struggle has not changed dramatically but become even more intense. The final crumbling of the ex-Comecon countries postponed the ‘final reckoning’ of the European and USA rivalries. And yet rivalries have sharpened with the entry of China into the leading echelons of imperialist rivalry. In this period:

i) Germany has benefited the most and now become the leading (if not yet quite hegemonic) partner of the imperialist coalition of the EU.

ii) The EU has expanded enormously to now include the so-called Southern fringe (including Greece, Portugal, Spain, with continuing discussion with Turkey); and the ex-Comecon countries.

iii) There has been a renewed attempt of the Russian bourgeoisie led by Putin to recreate its own imperial zone.

iv) China has dramatically enhanced its imperial might and come to near logger-heads with the neighboring Pacific Oceanic states – in particular those nations most tied to the USA (Japan, Philippines).

v) The most advanced of the former under-developed colonised world (Brazil, India) have been organized by the renewed Chinese imperialists into conglomerates that pose increasing challenges to both the USA and EU hegemony. Namely BRIC (Brazil, Russia, India, China) and the newly created International Bank.

The still unresolved contradiction at the heart of the European Community

Of course the EU has a major problem: Even now, it is not a unitary state with unitary fiscal policies. Although the leaders of the EU wish to concentrate power against the USA, they are unwilling to cede complete national autonomy to a Supra-European force – (namely the European Union based at Brussels). However while EU leaders can attempt to combine the monetary resources, unless there is a complete political unity – there are centrifugal forces they cannot control. For this would require to be overcome, a single unitary Bank.

This is far from a new realisation. The insoluble contradiction was pointed out by astute economists long ago such as Lord Nicholas Kaldor (1908-1986). Kaldor was a Keynesian, who polemicized against both Milton Friedman and Mrs. Thatcher’s worship of monetarism. He cited Keynes to say:

“Keynes (a pamphlet far ahead of the times and ahead of much of his own future writing on the subject), in which he branded monetary policy as ‘simply a campaign against the standard of life of the working classes’, operating through the ‘deliberate intensification of unemployment . . . by using the weapon of economic necessity against individuals and against particular industries — a policy which the country would never permit if it knew what was being done’.

(J. M. Keynes, The Economic Consequences of Mr. Churchill (London, 1925), reprinted in the Collected Writings of John Maynard Keynes Vol. IX (London, 1972), pp. 207-30; Cited Foreword Second edition; Kaldor, N: The Scourge of Monetarism”; Oxford 1986. https://www.questia.com/read/13674203/the-scourge-of-monetarism

In 1971, Kaldor pointed out that in the proposed Eurozone, there would be a tendency for some countries “to acquire increasing (and unwanted surpluses) in their trade with other members, whilst others face increasing deficits”. This could only be overcome he foresaw, by fuller political union:

“The events of the last few years … have demonstrated that the Community is not viable with its present degree of economic integration. The system presupposes full currency convertibility and fixed exchange rates among the members, whilst leaving monetary and fiscal policy to the discretion of the individual member countries. Under this system, as events have shown, some countries will tend to acquire increasing (and unwanted surpluses) in their trade with other members, whist others face increasing deficits. This has two unwelcome effects. It transmits inflationary pressures emanating from some members to other members; and it causes the surplus countries to provide automatic finance on an increasing scale to the deficit countries.

Since exchange-rate adjustments or “floating rates” between members are held to be incompatible with the basic aim of economic integration (and are incompatible also with the present system of common agricultural prices fixed in international units) the governments of the Six, at their Summit meeting in The Hague in December 1969, agreed in principle to the creation of a full economic and monetary union, and appointed a high-level committee (the so-called “Werner Committee”) to work out a concrete programme of action..”

(Nicholas Kaldor On European Political Union Cited by Ramanan, 6 November 2012; in The Case For Concerted Action Post-Keynesian Ideas For A Crisis That Conventional Remedies Cannot Resolve; at http://www.concertedaction.com/2012/11/06/nicholas-kaldor-on-european-political-union/)

Those planning a momentary union explicitly recognised that in the ultimate “third phase” the “individual central beings (being) would be abolished altogether, or reduced to the state of the old colonial “Currency Boards”:

“The realisation of economic and monetary union, as recommended in the Werner Report, involves three kinds of measures, each introduced in stages: monetary union, tax harmonisation, and central community control over national budgets.  It envisages a three-stage programme, with each stage lasting about three years, so that the whole plan is designed to be brought into operation by 1978-80.

In the monetary field in the first stage the interest and credit policy of each central bank is increasingly brought under common Community surveillance and permitted margins of variations between exchange rates are reduced or eliminated. In the second stage exchange rates are made immutable and “autonomous parity adjustments” are totally excluded. In the third stage the individual central banks are abolished altogether, or reduced to the status of the old colonial “Currency Boards” without any credit creating power.”

(Nicholas Kaldor Ibid)

Other political issues would also pose problems including the harmonisation of tax differences and differing budget polices requiring “fiscal standardisation” between countries:

“In the field of tax harmonisation it is envisaged that each country’s system should be increasingly aligned to that of other countries, and that there should be “fiscal standardisation” to permit the complete abolition of fiscal frontiers, which means not only identical forms but also identical rates of taxation, particularly in regard to the value added tax and excise duties.

In the field of budgetary control the Werner Report says “the essential elements of the whole of the public budgets, and in particular variations in their volume, the size of balances and the methods of financing or utilizing them, will be decided at the Community level.”

(Nicholas Kaldor Ibid)

However, ominously for the proponents of a single currency – responsibilities to have individual country Budgets and tax polices set centrally – were not envisaged as necessary. This was according to Kaldor, “the basic contradiction”:

“What is not envisaged is that the main responsibility for public expenditure and taxation should be transferred from the national Governments to the Community. Each member will continue to be responsible for raising the revenue for its own expenditure (apart from the special taxes which are paid to finance the Community’s own budget but which will remain a relatively small proportion of total public expenditure and mainly serve the purposes of the Agriculture Fund and other development aid).

And herein lies the basic contradiction of the whole plan.”

(Nicholas Kaldor Ibid)

Kaldor argued this had to have harsh implications for inequity in the well-being of the peoples of different countries. It was clear that unless “harmonisation” of country provision of benefits paid through by taxation – was ensured, there would be rising inequity:

“For the Community also envisages that the scale of provision of public services (such as the social services) should be “harmonised” – i.e., that each country should provide such benefits on the same scale as the others and be responsible for financing them by taxation raised from its own citizens. This clearly cannot be done with equal rates of taxation unless all Community members are equally prosperous and increase their prosperity at the same rate as the other members. Otherwise the taxation of the less prosperous and/or the slower-growing countries is bound to be higher (or rise faster) than that of the more prosperous (or faster-growing) areas.”

(Nicholas Kaldor Ibid)

In turn, this rising inequity in the poorer countries would likely need to be countered by spiraling taxes, in order to maintain a “fiscal balance” with the remained of “the Community.” But this would then become the source of “vicious circle” as these higher taxes would lead to a further compromise of the less “competitive” countries. Worsening of the inter-country inequity would need for distributing relief funds from the center:

“The Community will control each member country’s fiscal balance – i.e., it will ensure that each country will raise enough in taxation to prevent it from getting into imbalance with other members on account of its fiscal deficit. To ensure this the taxes in the slow growing areas are bound to be increased faster; this in itself will generate a vicious circle, since with rising taxation they become less competitive and fall behind even more, thereby necessitating higher social expenditures (on unemployment benefits, etc.) and more restrictive fiscal policies. A system on these lines would create rapidly growing inequalities between the different countries, and is bound to break down in a relatively short time. …

This is only another way of saying that the objective of a full monetary and economic union is unattainable without a political union; and the latter pre-supposes fiscal integration, and not just fiscal harmonisation. It requires the creation of a Community Government and Parliament which takes over the responsibility for at least the major part of the expenditure now provided by national governments and finances it by taxes raised at uniform rates throughout the Community. With an integrated system of this kind, the prosperous areas automatically subside the poorer areas; and the areas whose exports are declining obtain automatic relief by paying in less, and receiving more, from the central Exchequer. The cumulative tendencies to progress and decline are thus held in check by a “built-in” fiscal stabiliser which makes the “surplus” areas provide automatic fiscal aid to the “deficit” areas.

(Kaldor, Nicholas “On European Political Union Ibid)

Kaldor concluded that the Community’s present plan was like the house which “divided against itself cannot stand” and that “it was “dangerous error: to have a “full economic and monetary union” preceding a political union”:

“The Community’s present plan on the other hand is like the house which “divided against itself cannot stand.” Monetary union and Community control over budgets will prevent a member country from pursuing full employment policies on its own – from taking steps to offset any sharp decline in the level of its production and employment, but without the benefit of a strong Community government which would shield its inhabitants from its worst consequences.

Some day the nations of Europe may be ready to merge their national identities and create a new European Union – the United States of Europe. If and when they do, a European Government will take over all the functions which the Federal government now provides in the U.S., or in Canada or Australia. This will involve the creation of a “full economic and monetary union”. But it is a dangerous error to believe that monetary and economic union can precede a political union or that it will act (in the words of the Werner report) “as a leaven for the evolvement of a political union which in the long run it will in any case be unable to do without”. For if the creation of a monetary union and Community control over national budgets generates pressures which lead to a breakdown of the whole system it will prevent the development of a political union, not promote it.”

(Nicholas Kaldor Ibid)

We believe that the current crisis in Greece, fully confirms these warning. However Kaldor being a representative of the ruling capitalist class in Britain, could hardly envisage a political solution of benefit to the goals of achieving a socialist Europe. It is in this backdrop, that the Greek Crisis plays out.

6. The Greek Economic Crisis 2009-2015 – How did it get to this stage?

Throughout the turn towards Europe, the ruling class of Greece faced the hostility of the Greek working class and the rural small peasants. Nonetheless the ruling class allied itself firmly to the European imperialist bloc of the European Union (Previously the EEC). To recap: the Greek state opened the doors to foreign debt. From the viewpoint of a small capitalist class, who were not about to enter a left policy – there was no alternative. In doing so they also built a bureaucratic state machine, packed with protégés of the states. In addition the overwhelming strength of petit-bourgeois production – combined to allow a nepotistic and corrupt state. In this period, the Greek capitalist economy did not do very well.

In reality profits for the leading elite of the Greek capitalist class were immense. While the international financial capitalists are a giant leech on the back of the people, the main enemy of working people, remains the Greek capitalist class.

A common complaint from European bankers is that the Greek people are lazy and inherently corrupt. This propaganda has found resonance in otherwise progressive and people – who are themselves hard-pressed by capital. It is therefore important to refute the slander on “the lazy Greek people” – and attach the charge of laziness and parasitism to where it belongs – to the ruling capitalist class of Greece. The propaganda often cites the “lax tax laws” and the ‘pampered pension clauses’. Let us examine these aspects first.

i) Tax and Pensions in Greece

The capitalist class structured the tax system to its advantage, and also enabled the petit-bourgeois:

“Greek taxation is a mess (there are six different bands and the wealthiest band of shipping is often referred to as a “tax-free zone”) and over 133 separate pension funds.” Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html

“Data from one of Greece’s ten largest banks, (allowed) economists Nikolaos Artavanis, Adair Morse and Margarita Tsoutsoura..to (estimate lost tax revenue)…. The economists’ conservatively estimate that in 2009 some €28 billion in income went unreported. Taxed at 40%, that equates to €11.2 billion — nearly a third of Greece’s budget deficit.
Why hasn’t Greece done more to stop tax evasion? The economists were also able to identify the top tax-evading occupations — doctors and engineers ranked highest — and found they were heavily represented in Parliament”.

“Greeks Hide Tens of Billions From Tax Man”; Wall St Journal 9 July 2012.

http://blogs.wsj.com/economics/2012/07/09/greeks-hide-tens-of-billions-from-tax-man/?mod=WSJBlog&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Feconomics%2Ffeed+%28WSJ.com%3A+Real+Time+Economics+Blog%29

The scandal of refusal to take action on the “Lagarde List”, makes the responsibility of the Greek ruling class for the “tax imbroglio” even more clear:

“The Greek government has not completed an investigation of a list of 1,991 persons purported to hold accounts with Swiss bank HSBC that it received in 2010 from former French finance minister Christine Lagarde. Initially, officials claimed at various times to have lost or misplaced the information. On 29 October 2012 the government changed its position saying it would not use stolen information to prosecute suspected offenders. Instead, Greek authorities arrested Kostas Vaxevanis, journalist and editor of the weekly magazine Hot Doc, who published the “Lagarde list.”

The list includes an advisor to former Greek prime minister Antonis Samaras, as well as a former minister and a member of Samaras’ New Democracy political party. The list also contains the names of officials in the finance ministry.
Mr. Vaxevanis said he thought the government had not acted on the list because it included friends of ministers, businessmen and powerful publishers.

(https://en.wikipedia.org/wiki/Tax_evasion_and_corruption_in_Greece)

ii) Pensions

First if examined by unadjusted numbers it does appear that the Greek pension system is the most expensive in the OECD countries. We follow the Wall Street Journal analysis of February 2015 (Dalton, Matthew: “Greece’s Pension System Isn’t That Generous After All”; February 27 2015; http://blogs.wsj.com/brussels/2015/02/27/greeces-pension-system-isnt-that-generous-after-all/):

Graphs 1-3 on Pensions In Greece
“First, how much does Greece spend as percentage of GDP on pensions? The data from Eurostat looks like this as of 2012, with Greece expenditure easily highest in the eurozone as a percentage of GDP:

Greece2

However – the Wall Street Journal goes on to break this down, first as a percent of GDP and then by the proportion of pensioners over the age of 65 years:

“But part of that is due to the collapse in GDP suffered by Greece during the crisis… look at pension expenditure as a percentage of potential GDP, the level of economic output were eurozone economies running at full capacity:

Greece3

“Greece is still near the top, though it’s not so far from the eurozone average. Moreover, Greece’s high spending is largely the result of bad demographics: 20% of Greeks are over age 65, one of the highest percentages in the eurozone. What if instead you attempt to adjust for that by looking at pension spending per person over 65 (graph below). Adjusting for the fact that Greece has a lot of older people, its pension spending is below the eurozone average.”

Greece4

And finally a large proportion of the population are pensioners over 65 and many households depend on the pension:

“First, demographics. About 20.5% of Greeks are over 65 – behind only Italy and Germany in the EU when it comes to an ageing population. And with the country’s youth unemployment rate still above 50%, its young people are not going to be able to pay for their grandparents pensions any time soon.

Second, Greek society has a dependency on pensioners. One in two households rely on pensions to make ends meet and the country has an old-age dependancy ratio above 30%, which means that for every 100 people of working age in Greece there are 30 people aged 65 or over.

Third, Greek pensions aren’t so generous. About 45% of pensioners receive pensions below what is considered the poverty limit of €665 per month.
Looking at the actual expenditure on beneficiaries, Greece’s figures don’t stand out as exceptional and are instead on par with the EU average.”

(Nardelli, Alberto: “ Unsustainable futures? The Greek pensions dilemma explained“; Guardian, 15 June 2015; at http://www.theguardian.com/business/2015/jun/15/unsustainable-futures-greece-pensions-dilemma-explained-financial-crisis-default-eurozone)

There is no doubt a large financial burden form the pension schemes – but they provide at an individual level a very modest income:

“What makes the country’s pension system unsustainable is not the specific size of each individual pension, but the overall cost of a grossly inefficient and badly funded system (yes, mainly due to of decades of endemic tax evasion that means as much tax revenue slips through Athens’ fingers as it collects). According to analysis by Macropolis, the average pension in Greece is roughly €700 per month, while the supplementary one is €169.
The same analysis also shows that nearly 90% (€2.07bn) of the total monthly expenditure (€2.35bn) on pensions in March went towards the main pension.
It also reveals that only 0.6% of supplementary pensions were above €500 a month.
For 60% of pensioners the total gross monthly intake is below €800. In addition, many retirees in Greece have already seen their pensions cut. Some by a third, others by nearly 50%.

(Nardelli,; Guardian, 15 June 2015; Ibid)

Moreover, although cutting them might shave off some debt – not only is this unable to repair the basic financial problem of a dependent economy:

“In 2012, pension funds, which were obliged under a law introduced in 1950 by the then king of Greece, Paul I, to keep a minimum of 77% of their assets in government bonds, took an €8.3bn hit following the restructuring of sovereign debt.
Nearly a third of what pension funds have lost since then is due to a fall in contributions on the back of surging unemployment. The unemployment rate is still painfully high (26.6%, while in 2009 it was 9.5%), and nearly eight out of 10 of the country’s jobless have been out of work for 12 months or more.
Any saving brought about by simply purging early retirees’ benefits, cutting supplementary pensions horizontally across the board, or revenue raised by squeezing a drastically depleted pool of taxpayers, would in the short-term allow Greece to unlock the €7bn tranche of bailout funds it needs to carry on servicing its debt (and not default).
However, it would do little to solve the underlying challenges in the longer term.”

(Nardelli,; Guardian, 15 June 2015; Ibid)

Debt and printing money drive Greek Inflation

As discussed in prior sections, the ruling class used inflationary funding to enable it to fool and quieten the working classes. The scale of this is shown below.

“Greece has had a tricky time with its finances. In the 1990s it consistently ran significant budget deficits while using the Drachma. As a result of this economic mismanagement it joined the Euro in 2001, rather than 1999 like many other EU nations.” (Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html)

The following Graph 4, from the ‘Michael Roberts Blog,” tracks the inflation to the deflation tipping point, after the debt crisis became evident:

Greece5

(Roberts M; ‘Greece Cannot Escape”; 2nd Nov 2014: https://thenextrecession.wordpress.com/2014/02/11/greece-cannot-escape/)

However, once it was in the Eurozone, Greece’s government could no longer so easily use inflationary economics to easily boost living standards, as it was bound by the Eurozone and the single currency.

The alternative of devaluing its currency to boost its exports was also not possible. This left only loans. Since it was now the era of financial ‘hot money’ and rampant money-speculation had become standard, this was easy at first, and the inflation graph shows that even the loan-injection money fueled a degree of inflation. But the spigot was soon to be turned off with the Wall Street crash:

“Shortly after joining the single currency, Greece enjoyed a period of growth (2001-2007). However, economist and analysts have retrospectively labeled this boom as “unsustainable,” pointing out that Greece (very broadly speaking) profited off the cheap loans available from the EU. This house of cards came tumbling down with the financial crash of 2008. Like many other countries in the EU Greece was seriously affected, but it was unable to climb out of the hole as it had in the past by printing more currency (thus boosting the economy) as the Euro was controlled by the European Central Bank (ECB). Unemployment spiraled to 28 per cent.”

(Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html)

Greece’s relationship to the EU was as a dependent colony to the leading capitalist countries of the EU. These were of course Germany and also France.
International agencies progressively lent Greek governments large amounts of money. Consequently, Greece progressively developed an external debt of gigantic proportions as seen below in the brown/dark red line (Graph 5):

Greece6

What is the nature of these debt burdens that the Greek government faces?
The German locomotive pushing the EU economy – needed markets. The “under-developed” Southern perimeter of the EU was one of the natural “new” markets:

“Economist Paul Krugman wrote in February 2012:

“What we’re basically looking at…is a balance of payments problem, in which capital flooded south after the creation of the euro, leading to overvaluation in southern Europe.”

He continued in June 2015:

“In truth, this has never been a fiscal crisis at its root; it has always been a balance of payments crisis that manifests itself in part in budget problems, which have then been pushed onto the center of the stage by ideology.”

The translation of trade deficits to budget deficits works through sectoral balances. Greece ran current account (trade) deficits averaging 9.1% GDP from 2000–2011. By definition, a trade deficit requires capital inflow (mainly borrowing) to fund; this is referred to as a capital surplus or foreign financial surplus. This can drive higher levels of government budget deficits, if the private sector maintains relatively even amounts of savings and investment, as the three financial sectors (foreign, government, and private) by definition must balance to zero.
While Greece was running a large foreign financial surplus, it funded this by running a large budget deficit. As the inflow of money stopped during the crisis, reducing the foreign financial surplus, Greece was forced to reduce its budget deficit substantially. Countries facing such a sudden reversal in capital flows typically devalue their currencies to resume the inflow of capital; however, Greece cannot do this, and has suffered significant income (GDP) reduction, another form of devaluation.”

(https://en.wikipedia.org/wiki/Greek_government-debt_crisis#/media/File:HellenicOeconomy(inCurrentEuros).png)

Lord Kaldor’s warnings about this developing were discussed above.

Who owns this debt?

Graph 6: Current account imbalances in the European Union (1997–2014)

The graph below (from Wikipedia at: https://en.wikipedia.org/wiki/File:Current_account_imbalances_EN_(3D).svg)
shows that one of the major owners is Germany. In more detail, the ‘Economist Online” of October 2011 described the major ownership of the Greek debt. The main institutions owning the Greek debt are the IMF, the European Central Bank (ECB) and various European governments:

“Greece has total debts of €346.4bn. About a third of this debt is in public hands (34.8% is attributable to the IMF, ECB and European governments), roughly another third is in Greek hands (28.8%, essentially for banks) with the remainder (36.4%) held by non-Greek private investors.
(http://economistonline.muogao.com/2011/10/who-owns-greek-debt.html)

Greece7

And the New York Times Business news cites similar data:

“Almost two-thirds of Greece’s debt, about 200 billion euros, is owed to the eurozone bailout fund or other eurozone countries. Greece does not have to make any payments on that debt until 2023”. (Editor: Graph 7: below graphically displays the ownership of the debt.)

Greece8

Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

During this period, Greece’s finances were monitored by external agencies, largely those who had loaned monies to Greece. These were the International Monetary Fund (IMF), the European Community (EU) and the European Central Bank (ECB). These formed the so-called Troika. The Troika was to become hated by the Greek peoples as they plunged Greece into major social chaos and forced the living standards of the Greek people down.

As the New York Times comments, in many ways the “crisis” can be considered as a manufactured one as only a portion of debt is coming due in the short term:

“The International Monetary Fund has proposed extending the grace period until mid-century. So while Greece’s total debt is big—as much as double the country’s annual economic output—it might not matter much if the government did not need to make payments for decades to come. By the time the money came due, the Greek economy could have grown enough that the sum no longer seemed daunting.
In the short term, though, Greece has a problem making payments due on loans from the International Monetary Fund and on bonds held by the European Central Bank. Those obligations amount to more than 24 billion euros through the middle of 2018, and it is unlikely that either institution would agree to long delays in repayment.”
Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Two additional problems have conspired to make the “original sin” of debt – of even more enormous consequence.
Firstly, quite early on during this crisis, it was clear to the Troika lenders that the Greek government was in trouble in repaying any significant fraction of this debt. However this was ignored. In fact the IMF – despite its own rules and despite the worries about “default” – continued to fuel the fire of debt by giving more loans.

Then secondly, to worsen matters, the Greek government falsified data about the extent of its debt, and was helped by the greed of USA banking capital.

As early as 2004, in its negotiations with the EU, the ruling class of Greece falsified the degree of its debt. Goldman Sachs – the giant stockbroker and trader bank of Wall Street, aided the Greek government in doing this:

“In 2001, Greece was looking for ways to disguise its mounting financial troubles. The Maastricht Treaty required all Eurozone member states to show improvement in their public finances, but Greece was heading in the wrong direction. Then Goldman Sachs came to the rescue, arranging a secret loan of 2.8 billion euros for Greece, disguised as an off-the-books “cross-currency swap”—a complicated transaction in which Greece’s foreign-currency debt was converted into a domestic-currency obligation using a fictitious market exchange rate.

As a result, about 2 percent of Greece’s debt magically disappeared from its national accounts. Christoforos Sardelis, then head of Greece’s Public Debt Management Agency, later described the deal to Bloomberg Business as “a very sexy story between two sinners.” For its services, Goldman received a whopping 600 million euros ($793 million), according to Spyros Papanicolaou, who took over from Sardelis in 2005. That came to about 12 percent of Goldman’s revenue from its giant trading and principal-investments unit in 2001—which posted record sales that year. The unit was run by Blankfein.

Then the deal turned sour. After the 9/11 attacks, bond yields plunged, resulting in a big loss for Greece because of the formula Goldman had used to compute the country’s debt repayments under the swap. By 2005, Greece owed almost double what it had put into the deal, pushing its off-the-books debt from 2.8 billion euros to 5.1 billion. In 2005, the deal was restructured and that 5.1 billion euros in debt locked in. Perhaps not incidentally, Mario Draghi, now head of the European Central Bank and a major player in the current Greek drama, was then managing director of Goldman’s international division.”

(Robert B. Reich ‘How Goldman Sachs Profited From the Greek Debt Crisis”; The Nation16th July 2015; http://www.thenation.com/article/goldmans-greek-gambit/)

Such was the pervasive greed, that of course such ‘creative’ financing’ was standard, as explained by Robert Reich:

“Greece wasn’t the only sinner. Until 2008, European Union accounting rules allowed member nations to manage their debt with so-called off-market rates in swaps, pushed by Goldman and other Wall Street banks. In the late 1990s, J.P.Morgan enabled Italy to hide its debt by swapping currency at a favorable exchange rate, thereby committing Italy to future payments that didn’t appear on its national accounts as future liabilities. But Greece was in the worst shape, and Goldman was the biggest enabler. Undoubtedly, Greece suffers from years of corruption and tax avoidance by its wealthy. But Goldman wasn’t an innocent bystander: It padded its profits by leveraging Greece to the hilt—along with much of the rest of the global economy. Other Wall Street banks did the same. When the bubble burst, all that leveraging pulled the world economy to its knees.”

(Robert B. Reich ‘How Goldman Sachs Profited From the Greek Debt Crisis”; The Nation16th July 2015; http://www.thenation.com/article/goldmans-greek-gambit/)

Of course such greed driven lying enabled the Greek Government to gain more loans. This was of itself a problem since the country was developing intractable recession.

The Crisis heats up and the infamous Troika Memorandum

By 2009, significant fears that Greece would default on its loans prompted alarm. The Troika made moves to yet another loan – this time of $110 billion – but only if there were significant “austerity measures.” Of course this was intended to be an “austerity” for the working classes and not for the ruling classes:

“From late 2009, fears of a sovereign debt crisis developed among investors concerning Greece’s ability to meet its debt obligations due to strong increase in government debt levels. This led to a crisis of confidence, indicated by a widening of bond yield spreads and risk insurance on credit default swaps compared to other countries, most importantly Germany. Downgrading of Greek government debt to junk bonds created alarm in financial markets.

“On 2 May 2010, the Eurozone countries and the International Monetary Fund agreed on a €110 billion loan for Greece, conditional on the implementation of harsh austerity measures. In October 2011, Eurozone leaders also agreed on a proposal to write off 50% of Greek debt owed to private creditors, increasing the EFSF to about €1 trillion and requiring European banks to achieve 9% capitalization to reduce the risk of contagion to other countries. These austerity measures have proved extremely unpopular with the Greek public, precipitating demonstrations and civil unrest.”

(https://en.wikipedia.org/wiki/Greek_government-debt_crisis#/media/File:HellenicOeconomy(inCurrentEuros).png)

It was the collapse of the international financial and banking industries from the USA sub-prime crisis which rapidly became an international financial crisis, that mushroomed the Greek situation into a crisis. Greece had no choice but to reveal a truer picture of its deficit financing to the world’s creditors to seek more credit:

“Greece became the epicenter of Europe’s debt crisis after Wall Street imploded in 2008. With global financial markets still reeling, Greece announced in October 2009 that it had been understating its deficit figures for years, raising alarms about the soundness of Greek finances. Suddenly, Greece was shut out from borrowing in the financial markets. By the spring of 2010, it was veering toward bankruptcy, which threatened to set off a new financial crisis.”

“Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Up to around 2011, the loan monies in Greece continued to drive an inflation.
But then a sharp deflation began, as the Troika turned the screw on Greece. The Troika insisted on marked cuts in the living standards of the Greek people the working lass and peasantry. Not the standard of the ruling class of course who has moved its savings out of reach of the Greek state or the Troika. The Troika’s conditions are noted here:

“The so-called troika — the International Monetary Fund, the European Central Bank and the European Commission — issued the first of two international bailouts for Greece, which would eventually total more than 240 billion euros, or about $264 billion at today’s exchange rates. The bailouts came with conditions. Lenders imposed harsh austerity terms, requiring deep budget cuts and steep tax increases. They also required Greece to overhaul its economy by streamlining the government, ending tax evasion and making Greece an easier place to do business.”

“Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Of course the Greek capitalists complied, and drove down and depressed the wage rates of the Greek people:

“It’s true that the crushing of the living standards and wage earnings of Greek households is making Greek industry more ‘competitive’ – labour costs per unit of (falling) production have dropped 30% since 2010 (See Graph 8 below).

Greece9

((Roberts M; ‘Greece Cannot Escape”; 2nd Nov 2014: https://thenextrecession.wordpress.com/2014/02/11/greece-cannot-escape/)

Again – the burden of ‘austerity’ – was laid only on the working class of Greece:

“When Greece did cut some of its spending, the EU and ECB asked for a reduction in wages rather than a cut in spending. So – for example – while the military budget remains intact, soldiers have seen their wages fall by 40 per cent. Their experience is replicated across other public sector fields – notably in nurses and doctors”. Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html

An external – German – research agency found that indeed, it was the poor that had suffered disproportionate cuts as compared to the rich:

“The poorest households in the debt-ridden country lost nearly 86% of their income, while the richest lost only 17-20%.  The tax burden on the poor increased by 337% while the burden on upper-income classes increased by only 9% This is the result of a study that has analyzed 260.000 tax and income data from the years 2008 – 2012.
– The nominal gross income of Greek households decreased by almost a quarter in only four years.
– The wages cuts caused nearly half of the decline.
– The net income fell further by almost 9 percent, because the tax burden was significantly increased
–  While all social classes suffered income losses due to cuts, tax increases and the economic crisis, particularly strongly affected were households of low- and middle-income. This was due to sharp increase in unemployment and tax increases, that were partially regressive.
– The total number of employees in the private sector suffered significantly greater loss of income, and they were more likely to be unemployed than those employed in the public sector.
-From 2009 to 2013 wages and salaries in the private sector declined in several stages at around 19 percent. Among other things, because the minimum wage was lowered and collective bargaining structures were weakened. Employees in the public sector lost around a quarter of their income.

Unemployment & Early Retirement
Unemployment surged from 7.3% in the Q2 2008 to 26.6% in the Q2 2014. among youth aged 15-24, unemployment had an average of 44%.
Early retirement in the Private Sector increased by 14%.
Early retirement in the Public Sector* increased by 48%
The researchers see here a clear link to the austerity policy, that’s is the Greek government managed to fulfill the Troika requirements for smaller public sector. However, this trend caused a burden to the social security funds.
* Much to KTG’s knowledge public servants with 25 years in the public administration rushed to early retirement in 2010 out of fear of further cuts in their wages and consequently to their pension rights.

Taxes
Taxes were greatly increased, but they had a regressive effect.
Since beginning of the austerity, direct taxes increased by nearly 53%, while indirect taxes increased by 22 percent.
The taxation policy has indeed contributed significantly to the consolidation of the public budget, but by doing so the social imbalance was magnified.

Little has been done against tax avoidance and tax evasion, however, the tax base was actually extended “downwards” with the effect that households with low-income and assets were strongly burdened.
Particularly poorer households paid disproportionately more in taxes and the tax burden to lower-income rose by 337%. In comparison, the tax burden to upper-income households rose by only 9%.
In absolute euro amounts, the annual tax burden of many poorer households increased “only” by a few hundred euros. However, with regards to the rapidly declining of incomes and rampant unemployment, this social class was over-burdened with taxes.

The Poor suffered more
On average, the annual income of Greek households before taxes fell from €23,100 euros in 2008 to just below €17,900 euros in 2012. This represents a loss of nearly 23 percent.
The losses were significantly different to each income class with the poorest households to have suffered the biggest losses.
Almost one in three Greek household had to make it through 2012 with an annual income below €7,000”.
(Research of the “German Institute for Macroeconomic Research (IMK) affiliated with the Hans Böckler Foundation”; given blog ‘Keep Talking Greece’; by 20 March 2015; at http://www.keeptalkinggreece.com/2015/03/20/shocking-austerity-greeces-poor-lost-86-of-income-but-rich-only-17-20/

Both the Greek ruling class and the Troika saw that this squeeze on the poor and working class, was creating such a social upheaval, as to be potentially pre-revolutionary. Yet they were caught, since the alternatives were dismal for the international capitalist. Even the IMF’s own rules were flouted. In 2010 the situation was as follows in Michael Roberts telling:

“The irony is that while austerity in Greece continues to be applied mercilessly, the IMF recently issued a report that concluded that the Troika’s approach was mistaken in imposing severe fiscal retrenchment back in May 2010 when Greece could no longer finance its spending through borrowing in bond markets (http://www.imf.org/external/pubs/ft/scr/2013/cr13156.pdf).

Back then, the Troika had three options. First, it could have provided a massive fiscal transfer to the Greek government to tide it over without demanding massive cuts in public spending that eventually led to a fall in Greek real GDP of nearly 20%, unemployment of over 25% and government debt to GDP of 170%, with economic depression likely to continue out to the end of the decade.  Or it could have allowed the Greek government to ‘default’ on its debts to the banks, pension funds and hedge funds and negotiate an ‘orderly haircut’ on those debts.  But the Troika did neither and opted instead for a third way.  It insisted that in return for bailout funds the Greek government meet its obligations in full to all its creditors by switching all its available revenues to paying its debts at the expense of jobs, health, education and other public services.

The Troika insisted on this because it reckoned 1) that austerity would be shortlived and economic growth would quickly return and 2) if the banks and others took a huge hit on their balance sheets from a Greek default it would put European banks in danger of going bust (Greek banks first).  There could be ‘contagion’ if other distressed Eurozone governments also opted not to pay their debts, using Greece as the precedent.  Of course, economic growth has not returned and despite huge efforts on the part of Greek governments to meet fiscal targets through unprecedented austerity, government debt has increased rather than fallen and the economy has nosedived.

Eventually, the Troika had to agree that the private sector took a ‘haircut’ after all, massaged as it was with cash sweeteners and new bonds with high yields.  Now the IMF in its report admits that austerity was too severe and debt ‘restructuring’ should have happened from the beginning.  The IMF, now in its semi-Keynesian mode, tries to put the blame for the failure to do this on the EU leaders and the ECB, which has not made the latter too happy, especially as the current IMF chief, Lagarde was strongly in favour of the austerity plan when she was French finance minister in 2010.

“If Greeks had defaulted back in 2010, that could have led to other defaults and Europe’s banks were in no state to absorb such losses.  As a recent study shows http://www.voxeu.org/article/ez-banking-union-sovereign-virus), German banks were heavily overleveraged back in 2010 and they are not much better even now.  There was no way the German government was going to put German banks in jeopardy and allow the ‘profligate’ Greeks to get a huge handout of German taxpayers money to boot.  No, the Greeks had to pay their debts, just as the Germans had to pay their reparations to the French after 1918, even if it meant Germany was plunged into permanent depression.  Ironically, the Germans did not and have not paid promised billions in reparations to the Greeks after 1945 – something the Greeks are pursuing in negotiations!”

(Michael Roberts Blog: “Greece, the IMF and debt default; 16th June 2013;“https://thenextrecession.wordpress.com/2013/06/16/greece-the-imf-and-debt-default/)

As noted before, this fueling of the debt by new loans, was against even the principles of the International Monetary Fund (IMF), and senior strategists in the IMF warned that the polices of the IMF in regards to Greece were seriously in error, from the year 2010.

As stated above, one underlying reason on insisting that the Greek Government paid its debt fully, was simply the usurer’s wish to ensure that debts owed by Greece to both France and Germany would be honoured. German and French banks had become vulnerable by over-leveraging themselves. (i.e they had loaned so much money that their actual capital holdings were unable to support them if there was a “run” on their deposits). The Eurozone banks had become very vulnerable:

“The Table below shows the degree of ‘domestic leverage’ of the systemically important banks in major Eurozone countries .. in most countries the domestic banking system would not survive a Greek-style ‘haircut’ on public debt. (In March 2012, holders of Greek bonds had to accept a nominal haircut of over 50%, and on a mark-to-market basis the haircut was over 80%. It is apparent that no bank that has a sovereign exposure worth over 100% of its capital would survive such a loss).

Table 4: Domestic sovereign debt leverage (sovereign exposure/capital)

Greece Table

Source: CEPS database. (From Roberts 16 June 2013; “Greece, the IMF and debt default ibid) Michael Roberts Blog: “Greece, the IMF and debt default; 16th June 2013; https://thenextrecession.wordpress.com/2013/06/16/greece-the-imf-and-debt-default/)

Amazingly, the IMF policy remained unchanged – new loans were issued to Greece – at least up till May 2015:

“Greece’s onerous obligations to the IMF, the European Central Bank and European governments can be traced back to April 2010, when they made a fateful mistake. Instead of allowing Greece to default on its insurmountable debts to private creditors, they chose to lend it the money to pay in full.
At the time, many called for immediately restructuring privately held debt, thus imposing losses on the banks and investors who had lent money to Greece. Among them were several members of the IMF’s board and Karl Otto Pohl, a former president of the Bundesbank and a key architect of the euro. The IMF and European authorities responded that restructuring would cause global financial mayhem. As Pohl candidly noted, that was merely a cover for bailing out German and French banks, which had been among the largest enablers of Greek profligacy.

Ultimately, the authorities’ approach merely replaced one problem with another: IMF and official European loans were used to repay private creditors. Thus, despite a belated restructuring in 2012, Greece’s obligations remain unbearable — only now they are owed almost entirely to official creditors.

Five years after the crisis started, government debt has jumped from 130 percent of gross domestic product to almost 180 percent. Meanwhile, a deep economic slump and deflation have severely impaired the government’s ability to repay.
Almost everyone now agrees that pushing Greece to pay its private creditors was a bad idea. The required fiscal austerity was simply too great, causing the economy to collapse. The IMF acknowledged the error in a 2013 report on Greece. In a recent staff paper, the fund said that when a crisis threatens to spread, it should seek a collective global solution rather than forcing the distressed economy to bear the entire burden. The IMF’s chief economist, Olivier Blanchard, has warned that more austerity will crush growth.

Oddly, the IMF’s proposed way forward for Greece remains unchanged: Borrow more money (this time from the European authorities) to repay one group of creditors (the IMF) and stay focused on austerity. The fund’s latest projections assume that the government’s budget surplus (other than interest payments) will reach 4.5 percent of GDP, a level of belt-tightening that few governments have ever sustained for any significant period of time.

Following Germany’s lead, IMF officials have placed their faith in so-called structural reforms — changes in labor and other markets that are supposed to improve the Greek economy’s longer-term growth potential. They should know better. The fund’s latest World Economic Outlook throws cold water on the notion that such reforms will address the Greek debt problem in a reliable and timely manner. The most valuable measures encourage research and development and help spur high-technology sectors. All this is to the good, but such gains are irrelevant for the next five years. The priority must be to prevent Greece from sinking deeper into a debt-deflation spiral. Unfortunately, some reforms will actually accelerate the spiral by weakening demand.

On April 9, Greece repaid 450 million euros ($480 million) to the IMF, and must pay another 2 billion in May and June. The IMF’s managing director, Christine Lagarde, has made clear that delays in repayments will not be tolerated.

“I would, certainly for myself, not support it,” she told Bloomberg Television.”

Ashoka Mody; Bloomberg 81 April 21 2015; The IMF’s Big Greek Mistake; http://www.bloombergview.com/articles/2015-04-21/imf-needs-to-correct-its-big-greek-bailout-mistake

Recall – Lagarde was once the Minister of Finance for France:

Graph number 5 (see above) displays that it is not only Greece in
hock” to Germany, but there are several leading Eurozone states in debt to Germany. In especial note the deficits of France and of Italy.

This is the second reason – at least for German imperialism – on insisting that the Greek Government paid its debt fully.
If the Greeks are allowed to default, what happens to the other loans that are outstanding? It has long been recognised that Germany has been running a huge trade surplus, and it has been under pressure to alleviate this for some time:

“For years, Germany has been running a large current account surplus, meaning that it sells a lot more than it buys. The gap has only grown since the start of the crisis, reaching a new record of 215.3 billion euros ($244 billion) in 2014. Such insufficient German demand weakens world growth, which is why the U.S. Treasury and the International Monetary Fund have long prodded the country to buy more. Even the European Commission has concluded that Germany’s current-account imbalance is “excessive.”

(Ashoka Mody, Bloomberg188 July 17, 2015, ‘Germany, Not Greece, Should Exit the Euro’)

Any lifting of the restrictions upon Greece will lead to repercussions as to what happens to the debts of these other leading countries. It is no doubt, for this reason, that both Italy and France have been trying to ease pressures from Germany, arguing that there must be a debt restructuring.

This fits with the later 2015 U-Turn of Cristine Lagarde and the IMF (Discussed in section 9 below) – who are now at the last moment – urging the German government to reduce the obligations of the Greek government of Tsipras. We believe also, that this U-Turn supports the USA wish to attack the German government’s current rising economic strength.

Moreover, the USA government itself – suffers from an astronomical debt.

7. The Marxist View of ‘National Debt’ under capitalism

What do Marxists and other informed economists make of the notion of a national Debt? Falling into debt of a country – or large institutions – has been a historical feature of the growth of capital. Karl Marx pointed this out in ‘Capital’, saying that the “only part of the so-called national wealth that actually enters the possession of modern people is their national debt.” In full:

“The system of public credit, i.e., of national debts, whose origin we discover in Genoa and Venice as early as the Middle Ages, took possession of Europe generally during the manufacturing period. The colonial system with its maritime trade and commercial wars served as a forcing-house for it. … National debts, i.e., the alienation of the state – whether despotic, constitutional or republican – marked with its stamp the capitalistic era. The only part of the so-called national wealth that actually enters into the collective possessions of modern peoples is their national debt. Hence, as a necessary consequence, the modern doctrine that a nation becomes the richer the more deeply it is in debt. Public credit becomes the credo of capital. And with the rise of national debt-making, want of faith in the national debt takes the place of the blasphemy against the Holy Ghost, which may not be forgiven.

The public debt becomes one of the most powerful levers of primitive accumulation. As with the stroke of an enchanter’s wand, it endows barren money with the power of breeding and thus turns it into capital, without the necessity of its exposing itself to the troubles and risks inseparable from its employment in industry or even in usury. The state creditors actually give nothing away, for the sum lent is transformed into public bonds, easily negotiable, which go on functioning in their hands just as so much hard cash would. But further, apart from the class of lazy annuitants thus created, and from the improvised wealth of the financiers, middlemen between the government and the nation – as also apart from the tax-farmers, merchants, private manufacturers, to whom a good part of every national loan renders the service of a capital fallen from heaven – the national debt has given rise to joint-stock companies, to dealings in negotiable effects of all kinds, and to agiotage, in a word to stock-exchange gambling and the modern bankocracy.

At their birth the great banks, decorated with national titles, were only associations of private speculators, who placed themselves by the side of governments, and, thanks to the privileges they received, were in a position to advance money to the State. Hence the accumulation of the national debt has no more infallible measure than the successive rise in the stock of these banks, whose full development dates from the founding of the Bank of England in 1694. The Bank of England began with lending its money to the Government at 8%; at the same time it was empowered by Parliament to coin money out of the same capital, by lending it again to the public in the form of banknotes. It was allowed to use these notes for discounting bills, making advances on commodities, and for buying the precious metals. It was not long ere this credit-money, made by the bank itself, became. The coin in which the Bank of England made its loans to the State, and paid, on account of the State, the interest on the public debt. It was not enough that the bank gave with one hand and took back more with the other; it remained, even whilst receiving, the eternal creditor of the nation down to the last shilling advanced. Gradually it became inevitably the receptacle of the metallic hoard of the country, and the centre of gravity of all commercial credit. What effect was produced on their contemporaries by the sudden uprising of this brood of bankocrats, financiers, rentiers, brokers, stock-jobbers, &c., is proved by the writings of that time, e.g., by Bolingbroke’s”

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

Not only is “National Debt” crucial for the capitalist, but it was coincident with the ‘credit system’, and this in turn was associated with an international trade of capital (i.e. money) and systems of “modern taxation”:

“With the national debt arose an international credit system, which often conceals one of the sources of primitive accumulation in this or that people. Thus the villainies of the Venetian thieving system formed one of the secret bases of the capital-wealth of Holland to whom Venice in her decadence lent large sums of money. So also was it with Holland and England. By the beginning of the 18th century the Dutch manufactures were far outstripped. Holland had ceased to be the nation preponderant in commerce and industry. One of its main lines of business, therefore, from 1701-1776, is the lending out of enormous amounts of capital, especially to its great rival England. The same thing is going on today between England and the United States. A great deal of capital, which appears today in the United States without any certificate of birth, was yesterday, in England, the capitalised blood of children.”

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

Moreover, Marx points out that governments want loans for “extraordinary expenses”. This is because they do not want to tax the people too heavily lest it anger them. But eventually these loans will need an increase in taxes to pay the loan off. Then a vicious circle begins, where even more loans are needed to off-set the higher taxation burden:

“As the national debt finds its support in the public revenue, which must cover the yearly payments for interest, &c., the modern system of taxation was the necessary complement of the system of national loans. The loans enable the government to meet extraordinary expenses, without the tax-payers feeling it immediately, but they necessitate, as a consequence, increased taxes. On the other hand, the raising of taxation caused by the accumulation of debts contracted one after another, compels the government always to have recourse to new loans for new extraordinary expenses. Modern fiscality, whose pivot is formed by taxes on the most necessary means of subsistence (thereby increasing their price), thus contains within itself the germ of automatic progression. Overtaxation is not an incident, but rather a principle. In Holland, therefore, where this system was first inaugurated, the great patriot, DeWitt, has in his “Maxims” extolled it as the best system for making the wage labourer submissive, frugal, industrious, and overburdened with labour. The destructive influence that it exercises on the condition of the wage labourer concerns us less however, here, than the forcible expropriation, resulting from it, of peasants, artisans, and in a word, all elements of the lower middle class. On this there are not two opinions, even among the bourgeois economists. Its expropriating efficacy is still further heightened by the system of protection, which forms one of its integral parts.

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

What were these “extraordinary expenditures” the state wished to fund? Even bourgeois economists recognise that wars were one key such expenditures:

“The Bank of England was created… explicitly,, to finance wars, in its case the Nine Years War with France which started in 1688……The Bank of France .. having been started with that name in 1800 specifically to satisfy Napoleon’s wartime financial needs”. (Dean and Pringle Ibid; ‘Central banks”; pp38; p. 42).

Modern bourgeois economists have of course long supported the principle of national debts. Maynard Keynes recognised the utility of deficit financing for the capitalist control of the state, as he stated:

“’Loan expenditure.. may .. enrich the community on balance”; ref 31: (Cited Van Der Pijl, K. ‘The making of an Atlantic ruling class”; p.17; London 2012).

While we cannot dwell further on the subject in this article, the amount of the USA current debt is astonishingly large. So there is nothing reprehensible about the Greek Debt per se. What is at issue is an international lack of confidence that the Greek state would be able to pay it back. There is no underlying manufacturing or trading base to support the debt, and will not be. Unless – a complete break with the past – is offered. However thus far, a meaningful solution has never been on offer by the Greek or international merchants of capital, to the Greek working people.

8. The Debt Crisis leads to an increasing struggle of the growing Greek working class and gives rise to the United Front of Syriza – the political parties of the left

By the time of the current era in 2000-2015, the Greek social and class structure had changed dramatically. Despite the absence of a major manufacturing sector, unemployment was rising, and the urban-rural divide was widening – even before the austerity moves of the Troika:

“Greece is still low on competitiveness and this undermines self-sustaining growth, with low employment rates, low R&D, high levels of poverty, especially in rural and remote areas. The Greek economy grew by 0.7 per cent in the 1980s, compared with 2.4 per cent in other EU states. Demographically, the number of over 65-year-olds, set to increase by 30 per cent between 2010 and 2050, with fewer people in employment, will create a massive dependency on social security and health care. Greece has the largest agricultural population in the EU, with a low capacity to attract foreign direct investment (FDI). The collapse of the Soviet Union and opening of markets in the Balkans means that many investors have relocated their activities in neighbouring countries.

Since 2004 there has been a drop in most manufacturing output (textiles, leather goods, paper, office equipment, furniture), steadily constant production of food, beverages, oil, with the only growth in tobacco, chemicals and plastic goods. Therefore, long-term stagnation in manufacturing has led the state to adopt ‘rescue’ interventions or public loans. Shipping and tourism contributes 17 per cent to gross domestic product (GDP) and employs 18 per cent of the working population. The uneven rural/urban divide is particularly acute as some areas, notably the islands and the farming communities, benefited more from Euro-funds for tourism or agridevelopment than others. Athens, in particular has had massive infrastructure developed.”

(Liddle, Joyce. “Regeneration and Economic Development in Greece:
De-industrialisation and Uneven Development “p.340; Local Government Studies; Vol. 35, No. 3, 335–354, June 2009)

Nonetheless, the weight of the working class had risen between 1991 and 2011, as had a class polarisation:

“Based on the Greek Statistic Service data for the fourth trimester of 2011 in comparison to those of 1991 consists in
1. an increase of the bourgeois class (3.4% from 1.4%) and of the rich rural strata (0.6% from 0.3%),
2. a huge decline of the traditional petit-bourgeois class (15.2% from 13.2%), and of the middle rural strata (2.2% from 3%),
3. a small increase of the new petit-bourgeois class (15.2% from 13.2%), due to the increasing demand of their abilities for the achievement of capital profitability, in parallel to an effort of their submission to the most direct capital exploitation and domination,
4. An important increase of the working class (62.2% from 47.5%), and
an important decrease of the poor rural strata (6% from 47.5%).
*In any case, what is clear is the tendency of intensification of class polarisation, which leads to the adoption of a social structure akin to that of other European countries (small number of farmers and of the traditional petit-bourgeois class, stable presence of the new petit-bourgeois class as the executive organizer of the productive process, broader bourgeoisie and heterogeneous uneven but
numerous working class”.

(Eirini Gaitanou. An examination of class structure in Greece, its tendencies of transformation amid the crisis, and its impacts on the organisational forms and structures of the social movement. At: http://www.academia.edu/9400998/An_examination_of_class_structure_in_Greece_its_tendencies_of_transformation_amid_the_crisis_and_its_impacts_on_the_organisational_forms_and_structures_of_the_social_movement).

Under these enormous burdens, the now sizeable working classes of Greece mounted serious struggles to resist “austerity.” The ruling classes struggled to implement their commitments to the EU and the IMF. Consequently a series of short lived coalition governments took power.

“Following the May 2012 legislative election where the New Democracy party became the largest party in the Hellenic Parliament, Samaras, leader of ND, was asked by Greek President Karolos Papoulias to try to form a government. However, after a day of hard negotiations with the other parties in Parliament, Samaras officially announced he was giving up the mandate to form a government. The task passed to Alexis Tsipras, leader of the SYRIZA (the second largest party) who was also unable to form a government. After PASOK also failed to negotiate a successful agreement to form a government, emergency talks with the President ended with a new election being called while Panagiotis Pikrammenos was appointed as Prime Minister in a caretaker government.
Voters once again took to the polls in the widely-watched June 2012 election. New Democracy came out on top in a stronger position with 129 seats, compared to 108 in the May election. On 20 June 2012, Samaras successfully formed a coalition with PASOK (now lead by former Finance Minister Evangelos Venizelos) and DIMAR. The new government would have a majority of 58, with SYRIZA, Independent Greeks (ANEL), Golden Dawn (XA) and the Communist Party (KKE) comprising the opposition. PASOK and DIMAR chose to take a limited role in Samaras’ Cabinet, being represented by party officials and independent technocrats instead of MPs.”

(https://en.wikipedia.org/wiki/Antonis_Samaras)

We discuss these parties below. The coalition government led by Samaras, proved to be another short lived and contentious government, as it toed the line of Troika conditions. As such it was unable to disguise its nature from the increasingly militant and impoverished working class of Greece.

By the time of the January 2015 elections, the situation had become even more parlous for Greece’s working people:

“Greece saw official unemployment rising up to 27% – and youth unemployment up to 50% – suffered a cumulative contraction of almost 25%, saw a massive reduction in wages and pensions, and witnessed the passage of massive legislation oriented towards privatizations, labor market liberalization, and neoliberal university reform.”

(Panagiotis Sotiris; https://viewpointmag.com/2015/01/28/a-strategy-of-ruptures-ten-theses-on-the-greek-future/)

A more credible “left” bulwark against the masses was necessary for the Greek ruling class. This coincided with a reformation of the Greek left. At this point we must discuss Syriza in more detail.

As seen, PASOK had fallen into rank opportunism and open betrayal of the working class. After ensuing scandals of corruption implicated the leader, Andreas Papandreou, its appeal to the workers and poor of Greece was falling fast:

“The socialist Prime Minister Andreas Papandreou and his key associates were under accusation of scandal, which involved party funding from illicit sources and revealed the extensive clientelistic linkages between business interests and politics which had been built up under PASOK’s eight-year rule.”

(Tsakatika, Myrto and Eleftheriou, Costas: “The Radical Left’s Turn towards Civil Society in Greece: One Strategy, Two Paths”; South European Society and Politics, 2013; p.3; http://dx.doi.org/10.1080/13608746.2012.757455)

The space on the left had opened up again. Who was there to fill it?
We reprise the main outlines of events, focusing on analyses by Syriza, the revisionist KKE, and the pro-Hoxha Anasintaxi.

After the destruction of many of its cadre after the Battle of Athens in 1949, the KKE slowly reformed, after having adopted some mistaken sectarian paths during the Second World War. The KKE went through several splits, summarized below:

“There have been a series of splits throughout the party’s history, the earliest one being the Trotskyist Organisation of Internationalist Communists of Greece.
In 1956, after the 20th Congress of the Communist Party of the USSR….
a faction created the Group of Marxist-Leninists of Greece (OMLE), which split from party in 1964, becoming the Organisation of Marxists-Leninists of Greece. In 1968, amidst the Greek military junta of 1967–1974 and the Soviet invasion of Czechoslovakia, a relatively big group split from KKE, forming KKE Interior, a Greek Nationalist Communist Party claiming to be directed from within Greece rather than from the Soviet Union.
In 1988 KKE and Greek Left (the former KKE Interior), along with other left parties and organisations, formed the Coalition of the Left and Progress.
Also in 1988, the vast majority of members and officials from Communist Youth of Greece (KNE), the KKE’s youth wing, split to form the New Left Current (NAR), drawing mainly youth in major cities, especially in Thessaloniki.
In the early 2000s, a small group of major party officials such as Mitsos Kostopoulos left the party and formed the Movement for the United in Action Left (KEDA), which in the 2007 legislative election participated in the Coalition of the Radical Left, which was to win the 2015 national elections with a plurality.”

(https://en.wikipedia.org/wiki/Communist_Party_of_Greece) and also see Tsakatika, Myrto and Eleftheriou, Costas: “The Radical Left’s Turn towards Civil Society in Greece: One Strategy, Two Paths”; South European Society and Politics, 2013; p.3; http://dx.doi.org/10.1080/13608746.2012.757455)

The Marxist Leninist party supporting Hoxha in Greece is ‘Αναρτήθηκε από’ or ‘Anasintaxi Organization’ (reorganization). They are also known as “The Movement for the Reorganization of the Communist Party of Greece 1918–55” – or KKE 1918-55. They characterize the KKE disintegration post-war as follows:

“The old revolutionary KKE, under the leadership of the then General Sceretary Nikos Zachariadis, was the only communist party from a capitalist not to have accepted Krushchevian revisionism. For this reason, it was eliminated by the brutal intervention of the soviet Krushchevian revisionists in 1955-1956 and replaced by the Greek Krushchevian revisionist party (“K”KE), a bourgeois, party of social-democratic type. More than 90% of the party members led by Nikos Zachariadis opposed and fiercely resisted Krushchevian revisionism and many tens of cadres were sent to exile in Siberia including Nikos Zachariadis himself who has murdered by the social-fascist clique of Brezhnev (CPSU) – Florakis (“K”KE) in August of 1973, in Sorgut, Siberia after of 17 years of exile. In 1968, “K”KE was split into two parties: the euro-communist part known as “K”KE (interior) and the Krushchevian-Brezhnevite part known as “K”KE. SYRIZA originates from the first part and, consequently, is a social-democratic and reformist party guided by a right opportunist general line and characterized by petty bourgeois class features”

Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015; at http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

The revisionist KKE’s attitude to the European Union is characterised as follows:

“It is important to clarify that, despite its verbal attacks against EU and the Eurozone, “K”KE does not put forward (not even for the sake of demagogy) the question of Greece’s immediate exit neither from the EU nor the Eurozone. In relation to Euro, the leadership of “K”KE has stated: “A solution outside the euro and return to the drachma in the present circumstances would be catastrophic” (30/5/2011), i.e. a position that is similar to the one expressed by the president of the Union of Greek Industrialists (20/3/2012)…: “Europe or chaos” This is also evident in the party’s program that was approved by its last congress). Since some time now, “K”KE has expressed the view that “the term “national dependence” is not applicable in contemporary conditions” (1/2/2005). After the 19th Congress, it has openly adopted Trotskyite positions that mention “imperialist Greece”, “imperialist Second World War” etc and are evident in the “Program” approved in the last party Congress: “the capitalism in Greece is in the imperialist stage of development” (“K”KE Program, p. 12, Athens 2013). Concerning the character of the Second World War it is claimed that: “the problem was not only with KKE but the overall strategy of the international communist movement before and during the Second World War. In 1941, another negative point was added when the correct assessment of the war as imperialist – with respect to both sides of capitalist states – was replaced by the position that it was only anti-fascist” (“Rizospastis,” 21/12/2104)”

Αναρτήθηκε από Anasintaxi OrganizationSome questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015; at http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

As PASOK had been fully exposed, a general disillusion enabled the formation of Synaspismo (Coalition of the Left and Progress) in 1991:

“Synaspismos emerged initially as an electoral coalition at the late 1980s, with the pro-Soviet Communist Party of Greece (KKE) and the Greek Left, one of the successors of the eurocommunist KKE Interior, as its largest constituents. The Party of Democratic Socialism, a splinter from the Union of the Democratic Centre which occupied a similar position to PASOK, was the largest non-Communist member party.”

(https://en.wikipedia.org/wiki/Synaspismos).

The many parties of the left are displayed in the diagram below, which helps to show the umbrella nature of the Syriza United front. Beneath the figure itself (at the site “Lenin’s Tomb”) is a potted history of these factions. (Seymour, R. ‘Map of the Greek Radical Left’ February 9, 2015; http://www.leninology.co.uk/2015/02/map-of-greek-radical-left.html). However the figure does not explain include the currents of the Marxist-Leninist left. The OMLE was a pro-Maoist party. We further discuss at points, the positions of Αναρτήθηκε από Anasintaxi Organization, the pro-Hoxha Marxist-Leninists. Here we continue to trace the currents of Syriza.

The revisionist KKE joined Synaspismo, which contested three national elections (June 1989, November 1989, 1990). For a period they joined in Government alliances with mainstream centre-right New Democracy, ND under the premiership of Tzannis Tzannetakis. This collaboration was not viewed kindly by the increasingly politicised Greek working class and petit-bourgeois:

“The government’s official purpose was to send the former prime minister to trial and impose a clean-up of the corrupt clientelistic politics of the time… (But) leftist voters did not appreciate the decision of the left parties’ leaderships to engage in government cooperation with the centre-right; moreover, the stated aim of the Tzannetakis government was not achieved: after a long judicial process there was ultimately very little ‘cleaning up’.. the KKE pulled out of the coalition and lost 40 per cent of its cadres after a major party split in the party’s 13th Congress (February 1991). The former coalition was re-established as a unified party… In the first part of the 1990s, the Greek left as a whole was thus delegitimised in the eyes of its traditional electorate, bruised by participation in government with the centre-right and experienced internal strife and extensive demobilisation of party members, while the collapse of the Soviet Union (USSR) added an identity crisis to its woes”. (Tsakatika, and Eleftheriou, Ibid; 2013).

Greece10

The United Front of Synapsimos – or Syn as it is known – tried to appeal to a broad front, and one that explicitly crossed class lines:

“SYN.. in 2001… established a political and electoral alliance with a host of smaller parties, groups and networks of the extra-parliamentary left in the context of the Synaspismo Pizospastikh Aristra (Coalition of the Radical Left [SYRIZA])… SYN was and remained (until 2012) the largest party in the SYRIZA coalition, representing at least 80 per cent of its cadres, activists and voters. SYRIZA was one of the core choices of the party’s new leadership after 2000.. ”
(Tsakatika, and Eleftheriou, Ibid; 2013).

“SYN.. defined itself as a pluralist left party of democratic socialism, neither orthodox communist nor social democratic, supporting a mixed economy and placing a fresh emphasis on ‘new issues’, particularly feminism, democratic rights and the environment. SYN’s original core consisted of cadres whose political origins lay in the party of the Ellhnikh Aristra ́ (Greek Left [EAR]) founded in 1987 (in turn established after the KKE-es leadership’s decision to dissolve the party and contribute to the foundation of a non-communist left party) and a large group of dissidents who broke ranks with the KKE in 1991. It also incorporated a number of individuals and small groups coming from left social democracy, ecologism and the extra-parliamentary left, as well as independents.

The party’s founding document appealed to ‘the men and women of work and culture, the young and the excluded’. This was explicitly not a class appeal, since SYN effectively presented itself as a catch-all party throughout the 1990s, one that aimed to be present in ‘every nook and cranny of Greek society’. There was also an explicit trans-class appeal to groups affected by gender inequality and environmental degradation. In practice, most of its vote share, membership and cadres have mainly been from among the ranks of highly educated employees in the public sector, professionals and small employers. However, as a result of changes in internal factional dynamics, with the radical, protest-oriented

moderate (and sympathetic to government cooperation with PASOK) Anan vtikh ryga (Renewal Wing) in the party leadership after 2000, SYN shifted to a broadly defined class appeal aimed at targeting, primarily, younger cohorts and, secondarily, precariously employed workers in the services sector, social categories that were politically under-represented”
(Tsakatika, and Eleftheriou, Ibid; 2013).

The later creation of Syriza, was also a United Front. The word commonly means “coalition of the radical left”; or originally “coming from the roots” (Wikipedia):

“The Coalition of the Radical Left (Greek: Synaspismós Rizospastikís Aristerás), mostly known by its acronym, Syriza which signifies a Greek adjective meaning “from the roots”, is a left-wing political party in Greece, originally founded in 2004 as a coalition of left-wing and radical left parties. It is the largest party in the Hellenic Parliament…
The coalition originally comprised a broad array of groups (thirteen in total) and independent politicians, including social democrats, democratic socialists, left-wing patriots, feminists and green leftist groups, as well as Maoist, Trotskyist, Eurocommunist but also Eurosceptic components. Additionally, despite its secular ideology, many members are Christians who, like their atheistic fellow members, are opposed to the privileges of the state-sponsored Orthodox Church of Greece. From 2013 the coalition became a unitary party, although it retained its name with the addition of “United Social Front.”
http://en.wikipedia.org/wiki/Syriza

Syriza between 2004-8 was led by Alekos Alavanos. They created a vigorous youth movement in the driving force of the Ellhniko ́ Koinvniko ́ Foroym (Greek Social Forum [EKF]) which later organised the 4th European Social Forum (ESF) that took place in Athens in 2006. The Syriza United Front did undergo some splinters:

“In March 2009, some 10 small groups and parties formed another coalition, Antarsya (literally, the Anti-Capitalist Left Cooperation for the Overthrow). Composed primarily of university student activists in various communist organizations of orthodox Marxist, Trotskyist and Maoist backgrounds, as well of members of the relatively new rank-and-file unions outside the established bureaucracies of the official union structure of the country, it proved effective for activism in a broad range of mobilizations, but it never managed to achieve anything more than 1.8 per cent in the regional or general elections.

(Spourdalakis, Michalis; “Left strategy in the Greek cauldron: explaining syriza’s success. Socialist Register 2013; p. 105)

By 2010, Alex Tspiras was leading the Syriza party, after a section (The Renewal Wing’) split to form DIMAR (‘Renewal Wing’):

“The exit of the ‘Renewal Wing’ faction from SYN (which evolved into DIMAR) in the summer of 2010 curtailed political disagreement and factional infighting within SYN and resulted in the effective dominance of Alexis Tsipras’s leadership in both SYN and SYRIZA.”
(Tsakatika, and Eleftheriou, Ibid; 2013).

“The “social democratic” wing of Synaspismos definitely lost control of the party in 2006 when Alekos Alavanos was elected its president. This right wing, led by Fotis Kouvelis, almost exclusively originating in the Eurocommunist right group coming from EAR, ultimately left Synaspismos and set up another party called Democratic Left (Dimar): a formation that claims to be a sort of halfway house between Pasok and the radical left.”

(Stathis Kouvelakis interview with Sebastien Budgen: Greece: Phase One https://www.jacobinmag.com/2015/01/phase-one/)

But the revisionist KKE left Syn early on, and adopted a sectarian approach. Later on the KKE did not join the Greek Social Forum (EKF). Much of the KKE’s broad front work was instead performed through a Trade Union organisation – “Panrgatiko Agvnistiko Mtvpo (All Workers’ Militant Front, PAME) formed in the late 1990s. Insisting on this tactic, the KKE lost ground amongst much of the youth. For example those joining the ‘Indignants’ movement – who rejected all parties.

“Also indicative of the qualitative new dimension of the Greek people’s resistance were the now famous mobilizations of the ‘aganaktismeni’, i.e. the ‘frustrated or indignant in the squares’. These movements, which appeared in almost every major city nationwide, used new means of political mobilization (including the internet) and developed a political language which was clearly hostile to the previously existing patronizing practices of the party system. In fact this hostility was frequently displayed by spontaneous verbal and even physical attacks on politicians of the governmental parties, which at times extended to representatives of the established trade unions and the KKE.”

(Spourdalakis, Michalis;“Left strategy in the Greek cauldron: explaining syriza’s success. Socialist Register 2013; p. 108)

Stathis Kouvelakis, is a member of the central committee of Syriza and a leading member of its Left Platform. Kouvelakis pointed to the post-1968 divisions of the Greek left as “two poles.” Supposedly bridged by Syriza: the first bridge to factions of the KKE:

“Since 1968, the radical Left had been divided into two poles. The first was the Greek Communist Party (KKE), which (after splits)… (had) a rightist wing (that) constituted the Greek Left (EAR) and joined Synaspismos from the outset, and the leftist one reforming as the AKOA. The KKE that remained after these two splits was peculiarly traditionalist… It managed to win a relatively significant activist base among working-class and popular layers, as well as among the youth, particularly in the universities.” (Stathis Kouvelakis interview with Sebastien Budgen: Greece: Phase One https://www.jacobinmag.com/2015/01/phase-one/)

Kouvelakis describes Synaspsimos, as a second ‘pole’, seeding the later Syriza:

“The other pole, Synaspismos, opened out in 2004 with the creation of Syriza, which itself came from the joining together of the two previous splits from the KKE. Synaspismos has changed considerably over time. At the beginning of the 1990s, it was the kind of party that could vote for the Maastricht Treaty, and it was mainly of a moderate left coloration.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Actually the Marxist-Leninist pro-Hoxha party – (Αναρτήθηκε από Anasintaxi Organization) – is more emphatic. It places Syriza as directly deriving from the revisionist KKE, and as having taken over the KKE “social-democratic and reformist” character. Although Syriza is “socially” anti-fascist, it has “contradictions” – that impede it:

“In 1968, “K”KE was split into two parties: the euro-communist part known as “K”KE (interior) and the Krushchevian-Brezhnevite part known as “K”KE. Syriza originates from the first part and, consequently, is a social-democratic and reformist party guided by a right opportunist general line and characterized by petty bourgeois class features.

Syriza has pledged to implement a kind of neo-Keynesian economic program with the aim, at best, of relieving the burden of the consequences coming from the economic crisis of over-production and extreme neo-liberal economic policy without, however, touching the capitalist system and the imperialist dependence of Greece. Nevertheless, the implementation of this program has met negative reactions from the representatives of the imperialist organizations Commission – ECB – IMF that continue to interfere in the internal affairs of the country provocatively and without any pretext. This attitude amounts to the annulment of the recent (editor: January 2105) elections in our country.

In the sphere of social questions, Syriza is an anti-fascist party suffering from inconsistencies and contradictions as it is evident from the fact that it formed an alliance with the bourgeois nationalist party of ANEL and the nomination of Prokopis Pavlopoulos for President of the Republic, a right-wing politician from Nea Demokratia who was responsible, as Minister of Public Order in the Karamanlis government, for the bloody police violence unleashed on the country’s school youth after the murder of Alexis Grigoropoulos in December of 2008.”

(Αναρτήθηκε από Anasintaxi OrganizationSome questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

Syriza was always an electoral alliance:

“Syriza was set up by several different organizations in 2004, as an electoral alliance. Its biggest component was Alexis Tsipras’s party Synaspismos — initially the Coalition of the Left and Progress, and eventually renamed the Coalition of the Left and of the Movements …. It emerged from a series of splits in the Communist movement. Some (smaller parties also – Editor) came out of the old Greek far left. In particular, the Communist Organization of Greece (KOE), one of the country’s main Maoist groups. This organization had three members of parliament (MPs) elected in May 2012. That’s also true of the Internationalist Workers’ Left (DEA), which is from a Trotskyist tradition, as well as other groups mostly of a Communist background. For example, the Renewing Communist Ecological Left (AKOA), which came out of the old Communist Party (Interior).” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

The United Front of Syriza, had almost electoral immediate success:

“It managed to get into parliament, overcoming the 3 percent minimum threshold.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Syriza went on to replace PASOK as increasingly, Syriza candidates won in the ballot boxes. By this stage a number of other new parties had emerged, including a fascist party – Golden Dawn:

“After three years of political instability, the system collapsed in the dual elections of May and June 2012. New Democracy’s strength was halved and PASOK’s vote share diminished by 75 per cent. Three new political actors emerged, each winning around seven per cent of the vote, namely the party of the Dhmokratikh Aristra (Democratic Left, DIMAR), a recent split from SYN, Anya rthtoi Ellhn(Independent Greeks), a recent split from ND, and the extreme-right Xrysh Aygh (Golden Dawn). (Tsakatika, and Eleftheriou, Ibid; 2013).

A short lived coalition government in 2012 was formed by ND, PASOK and DIMAR in June 2012

What does Syriza represent? According to its own leaders it is an “anti-capitalist coalition” – as “class-struggle parties – but both emphasising “electoral alliances”:

“Syriza is an anti-capitalist coalition that addresses the question of power by emphasizing the dialectic of electoral alliances and success at the ballot box with struggle and mobilizations from below. That is, Syriza and Synaspismos see themselves as class-struggle parties, as formations that represent specific class interests.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In another description, it is a “hybrid party”:

“That is, it is a political front, and even within Syriza there is a practical approach allowing the coexistence of different political cultures. I would say that Syriza is a hybrid party, a synthesis party, with one foot in the tradition of the Greek Communist movement and its other foot in the novel forms of radicalism that have emerged in this new period.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In 2012 there were about 16,000 members in Synaspismos, and the Maoist KOE had about 1-1500 members. But in the ensuring period of a year, Syriza grew rapidly further – to 35,000–36,000. By May 2012, it became the second party in Greece with 16.7 percent of the vote, beating Pasok. It relied largely on a trade union base, and pulled its voters away from the KKE. There were 3 reasons why strategists feel they did so well in the 2012 elections:

“First, The violence of the social and economic crisis in Greece and the way it developed from 2010 onward, with the austere-ian purge .. inflicted under the infamous memorandums of understanding (the agreements the Greek government signed with the troika in order to secure the country’s ability to pay off its debts). The second factor resides in the fact that Greece — and now also Spain — are the only countries where this social and economic crisis has transformed into a political crisis. .. The third factor is popular mobilization.… The real breakthrough came when Tsipras focused his discourse on the theme of constituting an “anti-austerity government of the Left” now, which he presented as an alliance proposal reaching out to the KKE, the far left, the parliamentary left, and the small dissident elements of Pasok. “ (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Within the United Front of Syriza itself, there are two main wings (See Diagram above): The Left Platform and the majority. The Left Platform is also a United Front – of the “Left Current” mainly influenced by the KKE and a Trotskyist component:

“The Left Platform has two components, the Left Current, which is a kind of traditional communist current — essentially constituted by trade unionists and controlling most of the trade union sector of Syriza. These people in their vast majority come from the KKE, so they are those who broke with the KKE in the last split of the party in 1991. And then there is the Trotskyist component (DEA and KOKKOINO, recently fused).” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In turn, this Left wing has formed a sub-group – the “Platform of the 53”:

“The left of the majority has coalesced around the “Platform of the Fifty-Three,” signed by fifty-three members of the central committee and some MPs in June 2014, immediately after the European elections. They strongly criticized Tsipras’s attempts to attract establishment politicians, and for leading a campaign that didn’t give a big enough role to social mobilizations and movements”. (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

From quite early on, Tsipras had been criticised from his Left – on charges along the lines of opportunism. What Programme did Syriza put forth?

9. What was the elected programme of Syriza?

The Thessalonika Conference is accepted as being the progaramme of the United Front of Syriza. (Syriza – The Thessalonika Programme” at http://www.syriza.gr/article/id/59907/SYRIZA—THE-THESSALONIKI-PROGRAMME.html#.VQSgEChOTdl

In broadest terms the Programme calls for cessation of “the Nazi Occupation forced loan from the Bank of Greece” – and lifting of the Greek Public Debt: A slogan “No sacrifice of the Euro” was often heard:

  • “Write-off the greater part of public debt’s nominal value so that it becomes sustainable in the context of a «European Debt Conference». It happened for Germany in 1953. It can also happen for the South of Europe and Greece.
  • Include a «growth clause» in the repayment of the remaining part so that it is growth-financed and not budget-financed.
  • Include a significant grace period («moratorium») in debt servicing to save funds for growth.
  • Exclude public investment from the restrictions of the Stability and Growth Pact.
  • A «European New Deal» of public investment financed by the European Investment Bank.
  • Quantitative easing by the European Central Bank with direct purchases of sovereign bonds.
  • Finally, we declare once again that the issue of the Nazi Occupation forced loan from the Bank of Greece is open for us. Our partners know it. It will become the country’s official position from our first days in power.
    On the basis of this plan, we will fight and secure a socially viable solution to Greece’s debt problem so that our country is able to pay off the remaining debt from the creation of new wealth and not from primary surpluses, which deprive society of income.
    With that plan, we will lead with security the country to recovery and productive reconstruction by:
  • Immediately increasing public investment by at least €4 billion.
  • Gradually reversing all the Memorandum injustices.
  • Gradually restoring salaries and pensions so as to increase consumption and demand.
  • Providing small and medium-sized enterprises with incentives for employment, and subsidizing the energy cost of industry in exchange for an employment and environmental clause.
  • Investing in knowledge, research, and new technology in order to have young scientists, who have been massively emigrating over the last years, back home.
  • Rebuilding the welfare state, restoring the rule of law and creating a meritocratic state.
    We are ready to negotiate and we are working towards building the broadest possible alliances in Europe.”

In this document it further says that “within our first days in power,” after “negotiations end” with the Troika (And on its Memorandum)– they will begin enacting the following “National Reconstruction Plan” What does this embody? There are Four Pillars to this, which we recap briefly.

The 1st Pillar is “Confronting the humanitarian crisis at an estimated Total estimated cost of €1,882 billion

“Our program…. amounts to a comprehensive grid of emergency interventions, so as to raise a shield of protection for the most vulnerable social strata. Free electricity (Total cost: €59,4 million).

  • Programme of meal subsidies to 300.000 families without income. Total cost: €756 million.
  • Programme of housing guarantee. The target is the provision of initially 30.000 apartments (30, 50, and 70 m²), by subsidizing rent at €3 per m². Total cost: €54 million.
  • Restitution of the Christmas bonus, as 13th pension, to 1.262.920 pensioners with a pension up to €700. Total cost: €543,06 million.
  • Free medical and pharmaceutical care for the uninsured unemployed. Total cost: €350 million.
  • Special public transport card for the long-term unemployed and those who are under the poverty line. Total cost: €120 million.
  • Repeal of the leveling of the special consumption tax on heating and automotive diesel. Bringing the starting price of heating fuel for households back to €0,90 per lt, instead of the current €1,20 per lt. Benefit is expected.”

The 2nd Pillar is “Restarting the economy and promoting tax justice” Total estimated cost: €6,5 billion; Total estimated benefit: €3,0 billion

“This second pillar is centered on measures to restart the economy. Priority is given to alleviating tax suppression on the real economy, relieving citizens of financial burdens, injecting liquidity and enhancing demand.

Excessive taxation on the middle class as well as on those who do not tax-evade has entrapped a great part of citizens in a situation which directly threatens their employment status, their private property, no matter how small, and even their physical existence, as proved by the unprecedented number in suicides.

  • Settlement of financial obligations to the state and social security funds in 84 installments. Estimated benefit: €3 billion

The revenue which we expect to collect on an annual basis (between 5% and 15% of the total owed) will be facilitated by the following measures:

  • The immediate cease of prosecution as well as of confiscation of bank accounts, primary residence, salaries, etc, and the issuance of tax clearance certificate to all those included in the settlement process.
  • A twelve-month suspension of prosecution and enforcement measures against debtors with an established zero income, included in the settlement process.
  • Repeal of the anti-constitutional treatment of outstanding financial obligations to the state as offence in the act (in flagrante delicto).
  • Abolition of the mandatory 50% down payment of the outstanding debt as a prerequisite to seek a court hearing. The down payment will be decided by a judge. It will be around 10%-20%, according to the financial circumstances of the debtor.
  • Immediate abolition of the current unified property tax (ENFIA). Introduction of a tax on large property. Immediate downward adjustment of property zone rates per m². Estimated cost: €2 billion.

That tax will be progressive with a high tax-free threshold. With the exception of luxurious homes, it will not apply on primary residence. In addition, it will not concern small and medium property.

  • Restitution of the €12000 annual income tax threshold. Increase in the number of tax brackets to ensure progressive taxation. Estimated cost: €1.5 billion.
  • Personal debt relief by restructuring non-performing loans («red loans») by individuals and enterprises.

This new relief legislation will include: the case-by-case partial write-off of debt incurred by people who now are under the poverty line, as well as the general principle of readjusting outstanding debt so that its total servicing to banks, the state, and the social security funds does not exceed ⅓ of a debtor’s income.

  • Establishment of a public development bank as well as of special-purpose banks: Starting capital at €1 billion.
  • Restoration of the minimum wage to €751. Zero cost.

The 3rd Pillar is “Regaining employment” Estimated cost: €3 billion

A net increase in jobs by 300,000 in all sectors of the economy – private, public, social – is expected to be the effect of our two-year plan to regain employment. …Restitution of the institutional framework to protect employment rights that was demolished by the Memoranda governments…. Restitution of the so-called «after-effect» of collective agreements; of the collective agreements themselves as well as of arbitration….. Abolition of all regulations allowing for massive and unjustifiable layoffs as well as for renting employees.

Zero cost: Employment programme for 300000 new jobs. Estimated first-year cost: €3 billion

The 4th Pillar is: “Transforming the political system to deepen democracy”

Total estimated cost: €0

From the first year of SYRIZA government, we set in motion the process for the institutional and democratic reconstruction of the state. We empower the institutions of representative democracy and we introduce new institutions of direct democracy.

Regional organization of the state. Enhancement of transparency, of the economic autonomy and the effective operation of municipalities and regions. We empower the institutions of direct democracy and introduce new ones.

Empowerment of citizens’ democratic participation. Introduction of new institutions, such as people’s legislative initiative, people’s veto and people’s initiative to call a referendum.

Empowerment of the Parliament, curtailment of parliamentary immunity, and repeal of the peculiar legal regime of MPs’ non-prosecution.

Regulation of the radio/television landscape by observing all legal preconditions and adhering to strict financial, tax, and social-security criteria. Re-establishment of ERT (Public Radio and Television) on a zero basis.”

(Thessalalonkia Programme; Ibid)

This is viewed by significant leaders of the Syriza as a “transitional programme,” as explained in an interview with Efklidis Tsakalotos, a member of Parliament with SYRIZA and responsible for the economic policy of Syriza. (An Interview With Syriza’s Efklidis Tsakalotos Syriza’s Moment; by E. AHMET TONAK” JANUARY 23-25, 2015; http://www.counterpunch.org/2015/01/23/syrizas-moment/) :

“Syriza’s programme is a transitional one. It wants to start the process of not only reversing the policies of austerity but also dismantling some of the central pillars of the neo-liberal order. As with all transitional programmes the goal is to open up fissures for more radical polices. Whether we in Europe can achieve this depends on the extent that social movements are inspired to make use of the opportunities that arise to broaden the agenda in favour of a more participatory, institutionally-diverse, and socially just economy. Left-wing governments can do only so much. Social transformations, especially in the modern era, need the active engagement of millions. Parties and governments of the Left must see their role as catalysts of these wider developments. What is certain is that we are living in interesting times!”

(Interview with Tsakalotos Ibid).

In truth, the programme that was put forward by Syriza entirely stays within the confines of the EU. Instead of breaking that mould, it attempts to lay a negotiating position to lessen the burdens that are being demanded of the Greek peoples. It is correct that Syriza has never claimed to be a Leninist type party. Nonetheless, this perspective put above, is the antithesis of Leninism. As explained by Lenin in ‘State and Revolution” “trasnational forms” are needed. Both Marx and Lenin certainly agreed that a “special stage” – or a stage of transition from capitalism to communism was needed:

“The first fact that has been established most accurately by the whole theory of development, by science as a whole–a fact that was ignored by the utopians, and is ignored by the present-day opportunists, who are afraid of the socialist revolution–is that, historically, there must undoubtedly be a special stage, or a special phase, of transition from capitalism to communism.” https://www.marxists.org/archive/lenin/works/1917/staterev/ch05.htm

However, crucially, this transition needed to be a revolutionary transition:

“Between capitalist and communist society lies the period of the revolutionary transformation of the one into the other. Corresponding to this is also a political transition period in which the state can be nothing but the revolutionary dictatorship of the proletariat.”

Previously the question was put as follows: to achieve its emancipation, the proletariat must overthrow the bourgeoisie, win political power and establish its revolutionary dictatorship.

Now the question is put somewhat differently: the transition from capitalist society–which is developing towards communism–to communist society is impossible without a “political transition period”, and the state in this period can only be the revolutionary dictatorship of the proletariat. What, then, is the relation of this dictatorship to democracy? We have seen that the Communist Manifesto simply places side by side the two concepts: “to raise the proletariat to the position of the ruling class” and “to win the battle of democracy”. On the basis of all that has been said above, it is possible to determine more precisely how democracy changes in the transition from capitalism to communism. In capitalist society, providing it develops under the most favourable conditions, we have a more or less complete democracy in the democratic republic. But this democracy is always hemmed in by the narrow limits set by capitalist exploitation, and consequently always remains, in effect, a democracy for the minority, only for the propertied classes, only for the rich. Freedom in capitalist society always remains about the same as it was in the ancient Greek republics: freedom for the slave-owners. Owing to the conditions of capitalist exploitation, the modern wage slaves are so crushed by want and poverty that “they cannot be bothered with democracy,” “cannot be bothered with politics”; in the ordinary, peaceful course of events, the majority of the population is debarred from participation in public and political life.”

Lenin State & Revolution: Experience of the Paris Commune of 1871. Marx’s Analysis (https://www.marxists.org/archive/lenin/works/1917/staterev/ch03.htm)

Lenin points out that there is a “hemming in by narrow limits” of democracy. How much “narrower” is it when not only the single state “hems it in” – but the imperialists of the EU also “hem it in?” The next period, following the January elections of 2015, would answer this question.

10. Elections of 2015 and Negotiations with the Troika

The short-lived governments could not maintain credibility, as they were always accomodating to the new Troika demands. The mass movement shifted to the left, as shown by the huge demonstrations in the central Square. The elections of January 25 2015, sealed the rise to power of Syriza:

“After the Hellenic Parliament failed to elect a new President of State by 29 December 2014, the parliament was dissolved and a snap 2015 legislative election was scheduled for 25 January 2015. Syriza had a lead in opinion polls, but its anti-austerity position worried investors and eurozone supporters. The party’s chief economic advisor, John Milios, has downplayed fears that Greece under a Syriza government would exit the eurozone, while shadow development minister George Stathakis disclosed the party’s intention to crack down on Greek oligarchs if it wins the election. In the election, Syriza defeated the incumbent New Democracy and went on to become the largest party in the Hellenic Parliament, receiving 36.3% of the vote and 149 out of 300 seats.”

http://en.wikipedia.org/wiki/Syriza

“January 25th marks a historic turning point in recent Greek history. After five years of devastating austerity, a social crisis without precedent in Europe, and a series of struggles that at some points, especially in 2010-2012, took an almost insurrectionary form, there has been a major political break. The parties that were responsible for putting Greek society under the disciplinary supervision of the so-called Troika (EU-ECB-IMF) suffered a humiliating defeat. PASOK, which in 2009 won almost 44% of the vote, now received only 4.68%; and the splinter party of Giorgos Papandreou, the PASOK Prime Minister who initiated the austerity programs, got 2.46%. New Democracy came in at 27.81%, almost 9% below SYRIZA. The electoral rise of the fascists of Golden Dawn has been halted, although they still maintain a worrying 6% of the vote. Another pro-austerity party, the RIVER, representing the neoliberal agenda (although nominally coming from the center-left) took only 6.05%, despite intensive media hype.”

(Panagiotis Sotiris; https://viewpointmag.com/2015/01/28/a-strategy-of-ruptures-ten-theses-on-the-greek-future/)

Rapidly, by 26 January 2015, Tsipras and Independent Greeks (ANEL) leader Panos Kammenos agreed on a coalition government between Syriza and ANEL. Tsipras would be the Prime Minister of Greece, with the academic economist Yanis Varoufakis as his Minister of Finance.

Yet, in a graphic display of its intended response to the rebuke that the Troika and especially the German imperialists had received, the official line was hard:

“German government official Hans-Peter Friedrich however said: “The Greeks have the right to vote for whom they want. We have the right to no longer finance Greek debt.” http://en.wikipedia.org/wiki/Syriza

The Greek pro-Hoxha Marxist-Leninist view is that the Greek people took a stand against both the Troika and the Greek capitalists:

“By voting for SYRIZA, the majority of the Greek people rejected and condemned the cruel economic measures that were imposed, the neoliberal economic policy, in general, and the great-bourgeois parties of ND and PASOK that implemented these measures with the outmost servility. The victory of SYRIZA is also explained by the people’s resentment towards the fascist re-modeling of social life promoted by the government of the fascist scoundrel Samaras”. (January 24, 2015; “BOYCOTT the elections–The elections do not solve the problem of imperialist DEPENDANCE (economic-political-military, NATO bases etc.), nor repel-cancel ongoing EU politics against the people http://anasintaxi-en.blogspot.ca/2015/01/boycott-electionsthe-elections-do-not_24.html)

However Anasintaxi also had called for abstention from the elections of 2015, arguing that:

“In contrary ALL the bourgeois parties are in favor of Greece’s STAY in imperialist European Union, and in EURO-EMU and propagate consciously, serve the interests of the EU imperialists with misleading MYTH-fantasies about “equal participation” (!) of the country in the “pit of lions” of the powerful European monopolies. At the same time they propagate that Greece leaving the Euro-EMU-EU will be a “major disaster” (!).

ALL the reformist social democratic parties (“K” KE-SYRIZA, etc.) and the extra-parliamentary organizations follow the same strategic choice of the EU monopolies and the local capital.

It is not only SYRIZA which supports the country STAY (in) EURO-EMU-EU, but also the “K” KE: “A solution outside the euro and return to the drachma in the present circumstances would be catastrophic” (A. Papariga, “Rizospastis” 31/5/2011, p.6) Moreover: the leaders of the “K” KE definitively renounced the anti-imperialist struggle for the overthrow of dependence”

(January 24, 2015; “BOYCOTT the elections–The elections do not solve the problem of imperialist DEPENDANCE (economic-political-military, NATO bases etc.), nor repel-cancel ongoing EU politics against the people http://anasintaxi-en.blogspot.ca/2015/01/boycott-electionsthe-elections-do-not_24.html)

After the election, Anasintaxi warned that Syriza had entered into coalition with right-wing ANEL. However early on, the government had taken some progressive steps:

“During the first three weeks following the elections, the SYRIZA government has taken a series of actions in order to implement its program that has won the support of wide popular strata, an attitude that is unfortunately accompanied by certain illusions. At the same time, the government’s actions have met a very negative reception from Commission – ECB – IMF whose pressure and constant interference in the country’s internal affairs is condemned by the Greek people. We think that, up to a certain extent, SYRIZA’s victory creates favorable conditions for the strengthening of class struggles. Whether this possibility becomes a reality depends, of course on many factors the most important of which is the organization of the majority of the working masses in independent and united trade unions and the influence exerted on these and, the society in general, by the consistent left-wing, anti-imperialist and revolutionary communists.”

(Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

At this early point, both Tsipras and Varoufakis were apparently determined to negotiate hard, with the threat to leave the EU if the Troika did not back down:

“Greece’s finance minister Yanis Varoufakis has spelled out the negotiating strategy of the Syriza government with crystal clarity.
“Exit from the euro does not even enter into our plans, quite simply because the euro is fragile. It is like a house of cards. If you pull away the Greek card, they all come down,” he said.
“Do we really want Europe to break apart? Anybody who is tempted to think it possible to amputate Greece strategically from Europe should be careful. It is very dangerous. Who would be hit after us? Portugal? What would happen to Italy when it discovers that it is impossible to stay within the austerity straight-jacket?”
“There are Italian officials – I won’t say from which institution – who have approached me to say they support us, but they can’t say the truth because Italy is at risk of bankruptcy and they fear the consequence from Germany. A cloud of fear has been hanging over Europe over recent years. We are becoming worse than the Soviet Union,” he told the Italian TV station RAI.
This earned a stiff rebuke from the Italian finance minister, Pier Carlo Padoan. “These comments are out of place. Italy’s debt is solid and sustainable,” he said.
Yet the point remains. Deflationary conditions are causing interest costs to rise faster than nominal GDP in Italy, Spain, and Portugal, automatically pushing public debt ratios ever higher.
Berkeley economist Barry Eichengreen warns that Grexit would be “Lehman squared”, setting off a calamitous chain reaction with worldwide consequences. Syriza’s gamble is that the EU authorities know this, whatever officials may claim in public.
Premier Alexis Tsipras is pushing this to the wire. Rightly or wrongly, he calculates that Greece holds the trump card – the detonation of mutual assured destruction, to borrow from Cold War parlance – and that all the threats from EMU power centres are mere bluster.
His cool nerve has caught Brussels, Frankfurt, Berlin, and the markets off guard. They assumed that this 40-year neophyte would back away from exorbitant demands in his landmark policy speech to the Greek parliament on Sunday night. Instead they heard a declaration of war.
He vowed to implement every measure in Syriza’s pre-electoral Thessaloniki Programme “in their entirety” with no ifs and buts. This even includes a legal demand for €11bn of war reparations from Germany, a full 71 years after the last Wehrmacht soldier left Greek soil.
There is no possible extension of Greece’s bail-out programme with the EU-IMF Troika, for that would be an “extension of mistakes and disaster”, a perpetuation of the debt-deflation trap. “The People have abolished the Memorandum. We will not negotiate our sovereignty,” he said.
Macropolis said every item was in there: a pension rise for the poorest; no further rises in the retirement age; an increase in the minimum wage to €751 a month by 2016; a return to collective bargaining; an end to privatisation of utilities; cancellation of a new property tax (ENFIA); a rise in tax-free thresholds from €5,000 to €12,000; and a rehiring of 10,000 public workers fired “illegally.”

(Ambrose Evans-Pritchard. “Greece’s leaders stun Europe with escalating defiance”. ‘The Telegraph’; 09 Feb 2015; http://www.telegraph.co.uk/finance/economics/11400778/Greeces-leaders-stun-Europe-with-escalating-defiance.html)

However in a foretaste of the future intransigence of the German imperialists, led by Wolfang Schauble the German Finance Minister – Greece’s first counter-offer was rejected out of hand:

“Schauble continues to insist that Greece sticks to the bailout conditions agreed with previous governments under which financial support will be given only in exchange for substantial structural reforms.
The finance ministry’s position risks deepening splits within Europe over how to deal with Greece as an end of February deadline nears at which the previous bailout agreement with its creditors and the European Central Bank runs out, leaving Greece facing bankruptcy.
In contrast to Berlin, the EU commission president Jean-Claude Juncker welcomed the Greek application, saying in his opinion it could pave the way for a “sensible compromise in the interest of financial stability in the Eurozone as a whole”.
But experts said Greece was merely playing for time, and that its application had indeed contained no new commitments. “The Greeks have simply tried to pass the buck back to the middle,” Matthias Kullas from the Centre for European Politics in Freiburg told The Guardian.
He stressed the German reaction was not a rejection over reaching a compromise with Greece, but did mean that expectations of an agreement on Friday when finance ministers from the eurogroup meet again, were now “slim”.
“If an agreement is reached, it will be at the last minute,” he said. “It’s in the interest of both sides to stick to their guns. The earlier one of them diverts from his course, the weaker his position becomes and the more elbow room he leaves for the other.”

(Kate Connolly. “Germany rejects Greek bailout plan – as it happened”. The Guardian 19 February 2015; http://www.theguardian.com/business/blog/live/2015/feb/19/greece-to-seek-bailout-extension-after-33bn-lifeline)

A furious cycle of media reports and counter reports paralleled a back and forth between the European Union and the Greek negotiating team of Tsipras and Varoufakis. In essence no counter-offer by the Greek team was deemed acceptable. It is true that the initial efforts of the Greek team to counter the demands were insubstantial. However even when substantial retreats had been offered, they were humiliatingly rejected. While the European team was overall untied, strains emerged. It was apparent that the Germans were the most stout in the rejections. However both the French and the Italians were wavering. Nonetheless even the IMF initially firmly supported the German position:

“Last week Greece received a four-month extension of its $277 billion bailout program. The parliaments of Finland, Estonia and, most importantly, Germany, as well as Greece’s other EU partners, approved the bailout program that was agreed to Feb. 20, provided that Greece submit a list of planned reforms. Greece submitted six pages of reforms last Monday, but not all of Greece’s creditors think they are sufficient.

Christine Lagarde, managing director of the International Monetary Fund (IMF), wrote a letter to Dutch Finance Minster Jeroen Dijsselbloem, who is also president of the Eurogroup of eurozone finance ministers, expressing her concern that Greece’s proposed reforms were not specific enough, nor did they contain sufficient assurances on their design and implementation. The letter is the most recent, and public, indication of the IMF’s hesitancy toward Greece and its bailout program.

(Maria Savel. “IMF Stands Firm, Forcing Greece and Syriza to Accept Hard Concessions” Politics Review, March 3, 2015, http://www.worldpoliticsreview.com/trend-lines/15210/imf-stands-firm-forcing-greece-and-syriza-to-accept-hard-concessions)

By March, Tsipras was still assuming the EU would not want to have a member leave:

“SPIEGEL: Many experts now fear a “Graccident” — Greece’s accidental exit from the euro. If the ECB doesn’t agree to your T-Bills, that’s exactly what might happen.
Tspiras: I cannot imagine that. People won’t risk Europe’s disintegration over a T-Bill of almost €1.6 billion. There is a saying for this in Greece: A wet man does not fear the rain.”

(Der Spiegel Interview Conducted By Manfred Ertel, Katrin Kuntz and Mathieu von Rohr: Greek Prime Minister Tsipras: ‘We Don’t Want to Go on Borrowing Forever’; March 7 2015; at http://www.spiegel.de/international/europe/spiegel-interview-with-greek-prime-minister-tsipras-a-1022156.html)

As time went on, the Greek banks were forced to put restrictions on withdrawals. The EU allowed some further liquidity in Greece by allowing Greece to print more T-Bills, but purely for internal use. This was violated by Greece. More and more comments were heard that Greece might have to exit the EU – a so called Grexit or Greccident:

“The current money-go-round is unsustainable. Euro-region taxpayers fund their governments, which in turn bankroll the European Central Bank. Cash from the ECB’s Emergency Liquidity Scheme flows to the Greek banks; they buy treasury bills from their government, which uses the proceeds to … repay its International Monetary Fund debts! …
There’s blame on both sides for the current impasse. Euro-area leaders should be giving Greece breathing space to get its economic act together. But the Greek leadership has been cavalier in its treatment of its creditors. It’s been amateurish in expecting that a vague promise to collect more taxes would win over Germany and its allies. And it’s been unrealistic in expecting the ECB to plug a funding gap in the absence of a political agreement for getting back to solvency. ……Greece’s three-year bond yield is back above 20 percent, double what it was just before Alexis Tsipras was elected prime minister on an anti-austerity platform in January. At that level, there’s no way Greece can end its reliance on its bailout partners anytime soon.
German Finance Minister Wolfgang Schaeuble was scathing yesterday about Greece’s efforts to balance its election promises with its bailout obligations, and about its standing with international investors:
“None of my colleagues, or anyone in the international institutions, can tell me how this is supposed to work. Greece was able to sell those treasury bills only in Greece, with no foreign investor ready to invest. That means that all of the confidence was destroyed again.”
Every day’s delay in cutting a deal pushes Greece a little closer to leaving the common currency. That would be a shame, since it’s an outcome no one — apart from Schaeuble — seems to desire. The mutability of euro membership could also unleash contagion and a domino effect. But it looks increasingly inevitable.”

(Mark Gilbert; “Greece’s Euro Exit Seems Inevitable”: 17 March 2015; http://www.bloombergview.com/articles/2015-03-17/greece-s-euro-exit-seems-inevitable)

By April 2015, reports circulated that secret plans were being drawn up to revive the Drachma and go into default (Evans-Pritchard A, 2 April 2015; Telegraph at http://www.telegraph.co.uk/finance/economics/11513341/Greece-draws-up-drachma-plans-prepares-to-miss-IMF-payment.html).

On May 4th the BBC reported that Greek banks were not allowing pensioners to withdraw more than a small amount, and that public sector workers were nto being paid regularly (http://www.bbc.com/news/world-europe-32580919). However on May 6th however Greece paid back $200 million to the IMF and avoided insolvency. At that time the European Central Bank (ECB) granted further liquidity to Greece. (Phillip Inman and Helena Smith; 6 May, The Guardian; at http://www.theguardian.com/world/2015/may/06/greek-debt-default-avoided-after-200m-payment-to-imf)

By June the situation was still not resolved, and Greece’s peoples were in an even more precarious position. By this time, Syriza had retreated substantially more. Michael Roberts summarises to June:

“The IMF representative in the negotiations, Poul Thomsen, has “pushed the austerity agenda with a curious passion that shocks even officials in the European Commission, pussy cats by comparison” (here are the latest demands of the Troika Greece – Policy Commitments Demanded By EU etc Jun 2015). The IMF is demanding further sweeping measures of austerity at a time when the Greek government debt burden stands at 180% of GDP, when the Greeks have already applied the biggest swing in budget deficit to surplus by any government since the 1930s and when further austerity would only drive the Greek capitalist economy even deeper into its depression. As the Daily Telegraph summed it up: “six years of depression, a deflationary spiral, a 26pc fall GDP, 60pc youth unemployment, mass exodus of the young and the brightest, chronic hysteresis that will blight Greece’s prospects for a decade to come.”

The Syriza government has already made many and significant retreats from its election promises and wishes.  Many ‘red lines’ have been crossed already. It has dropped the demand for the cancellation of all or part of the government debt; it has agreed to carry through most of the privatisations imposed under the agreement reached with the previous conservative New Democracy government; it has agreed to increased taxation in various areas; it is willing to introduce ‘labour reforms’ and it has postponed the implementation of a higher minimum wage and the re-employment of thousands of sacked staff.

But the IMF and Eurogroup wanted even more. The Troika has agreed that the original targets for a budget surplus (before interest payments on debt) could be reduced from 3-4% of GDP a year up to 2020 to 1% this year, rising to 2% next etc. But this is no real concession because government tax revenues have collapsed during the negotiation period. At the end of 2014, the New Democracy government said that it would end the bailout package and take no more money because it could repay its debt obligations from then on as the government was running a primary surplus sufficient to do so. But that surplus has now disappeared as rich Greeks continue to hide their money and avoid tax payments and small businesses and employees hold back on paying in the uncertainty of what is going to happen. The general government primary cash surplus has narrowed by more than 59 percent to 651 million euros in the 4-month period of 2015 from 1.6 billion in the corresponding period last year
The Syriza government has only been able to pay its government employees their wages and meet state pension outgoings by stopping all payments of bills to suppliers in the health service, schools and other public services. The result is that the government has managed to scrape together just enough funds to meet IMF and ECB repayments in the last few months, while hospitals have no medicines and equipment and schools have no books and materials; and doctors and teachers leave the country.

Even Ashoka Mody, former chief of the IMF’s bail-out in Ireland, has criticised the attitude of his successor in the Greek negotiations: “Everything that we have learned over the last five years is that it is stunningly bad economics to enforce austerity on a country when it is in a deflationary cycle. Trauma patients have to heal their wounds before they can train for the 10K.”

The final red lines have been reached. What the Syriza leaders finally balked at was the demand by the IMF and the Eurogroup that the government raise VAT on electricity by 10 percentage points, directly hitting the fuel payments of the poorest; and also that the poorest state pensioners should have their pensions cuts so that the social security system could balance its books. Further down the road, the Troika wants major cuts in the pensions system by raising the retirement ages and increasing contributions. The Syriza leaders were even prepared to agree to some VAT rises and pension ‘reforms’, but the two specific demands of the Troika appear to have been just too much.”

(Roberts, Michael Blog; June 15, 2015;: “Ten minutes past midnight”; https://thenextrecession.wordpress.com/2015/06/06/ten-minutes-past-midnight/)

Increasingly leading economists including Nobel Laureates Joseph Stiglitz and Paul Krugman, Amartya Sen and others – warned about a new “Versailles moment”, and insisted that German stubbornness was actually bad for Europe as a whole, and that a “hair-cut” to the debt was necessary – i.e. a dramatic waiver-cut of the debt (Simon Wren-Lewis. “Why Amartya Sen Is Right About What Is Being Done To Greece”; 12 June 2015; in ‘Social Europe’ at http://www.socialeurope.eu/2015/06/why-amartya-sen-is-right-about-what-is-being-done-to-greece/). President Obama of the USA had already agreed that:

“”You cannot keep on squeezing countries that are in the midst of depression.”
“At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits,” (Aurelia End; Obama joins ally list on Greek austerity relief http://news.yahoo.com/obama-joins-ally-list-greek-austerity-relief-033040983.html )

As the Left inside Syriza resisted Tsipras’s slippery slope of acceptance of new demands, they increasingly pointed to the example of Iceland who had defaulted on international debts in a similar situation. They got substantial agreement from even the ANSEL coalition party members also. (Ambrose Pritchard-Evans. “Syriza Left demands ‘Icelandic’ default as Greek defiance stiffens”.14 June ‘Daily Telegraph’; http://www.telegraph.co.uk/finance/11673989/Syriza-Left-demands-Icelandic-default-as-Greek-defiance-stiffens.html ).

In a twist to the pre-July series of negotiations, as even more demands were made of the package being offered by Tsipras and Varoufakis, Tsipras called a snap referendum, saying he needed to have a further mandate form the Greek people, in order to agree to the latest demands and obtain the new tranche of bail-out funds. Bizarrely however, he then wrote to the Imperialists saying he would accept – only to find that the imperialists had withdrawn their offer. Tsipras had to go on to the snap Referendum:

“Tsipras infuriated eurozone finance ministers by calling a snap referendum on proposals to agree a deal to release the €7.2bn in bailout funds it needed to meet an IMF repayment. His argument was that the concessions still being demanded by creditors, including VAT rises and rapid reform of the unaffordable pension system, and the lack of any serious prospect of debt relief, meant he could not sign up without a fresh public mandate – and, indeed, he and Varoufakis immediately urged their countrymen to vote “No”.

Yet it emerged that while publicly lambasting the troika, the very same Tsipras had dispatched a two-page letter to Brussels that caved into many of the demands he had angrily rejected a few days earlier – and continued to insist on putting to the public vote. It was too late: his exasperated creditors, and Germany in particular, in the person of Berlin’s implacable finance minister, Wolfgang Schäuble, decided enough was enough and the offer was no longer on the table. Amid the storm of political recriminations, the European Central Bank capped financial support to the Greek banking sector, forcing the government to impose capital controls, to stem the relentless slow-motion bank run that has been leaching the life out of the country’s financial system for months. And last Tuesday, as it warned it would, Athens defaulted on its payment to the IMF. To all intents and purposes, the country is bust.

So Greek voters now face trudging to the polls today, either to vote Yes to a set of proposals that are no longer on the table – presumably ushering in a new, more emollient government that would get straight back to the negotiating table – or to send a defiant no to further austerity. Tsipras and Varoufakis insist that “No” would not mean plunging out of the eurozone, let alone the EU. Instead, they say they would re-enter talks as if brandishing a petition. Yet last time they were handed a stock of political capital by the Greek public, in January’s general election, they quickly squandered it. Both Tsipras and Varoufakis have forged their political reputations by rejecting consensus and overturning the received wisdom. But international diplomacy means understanding that everyone at the table, whatever your grievances against them, has their own mandate and their own domestic audience to placate.

Instead of opening up ways for the troika to save face, Tsipras and Varoufakis have used every means available – from provocative tweets to spiky speeches in Syntagma Square – to heighten the divisions between Greece and its eurozone partners, accusing them of trying to blackmail and humiliate the Greek people into submission.”

(Observer Editorial. “The Observer view on Greece’s referendum “5 July 2015; http://www.theguardian.com/commentisfree/2015/jul/05/greece-let-down-by-partners-and-leaders).

In the midst of this circus, before the Referendum – the USA and the IMF (in the person of Christine Lagarde) exerted further pressure on the Germans to bend. Already calls had been made by many economists, that Germany had been granted a waiver on the demands at the end of the First Word war (the Versailles treaty). These had been firmly ignored by the German imperialists. Now the IMF threw a spanner into the erst-while United Front of the imperialists:

“The International Monetary Fund has electrified the referendum debate in Greece after it conceded that the crisis-ridden country needs up to €60bn (£42bn) of extra funds over the next three years and large-scale debt relief to create “a breathing space” and stabilise the economy.
With days to go before Sunday’s knife-edge referendum that the country’s creditors have cast as a vote on whether it wants to keep the euro, the IMF revealed a deep split with Europe as it warned that Greece’s debts were “unsustainable”.
Fund officials said they would not be prepared to put a proposal for a third Greek bailout to the Washington-based organisation’s board unless it included both a commitment to economic reform and debt relief.
According to the IMF, Greece should have a 20-year grace period before making any debt repayments and final payments should not take place until 2055. It would need €10bn to get through the next few months and a further €50bn after that.
The Greek prime minister Alexis Tsipras welcomed the IMF’s intervention saying in a TV interview that what the IMF said was never put to him during negotiations.”

(Philipp Inman, Larry Elliot, Alberto Nardelli; IMF says Greece needs extra €60bn in funds and debt relief”; The Guardian 2 July 2015; at http://www.theguardian.com/business/2015/jul/02/imf-greece-needs-extra-50bn-euro).

The Referendum was held on 5th July 2015. The result was a defiant “NO!” to the European imperialists:

“The final result in the referendum, published by the interior ministry, was 61.3% “No”, against 38.7% who voted “Yes.”
Greece’s governing Syriza party had campaigned for a “No”, saying the bailout terms were humiliating.
Their opponents warned that this could see Greece ejected from the eurozone, and a summit of eurozone heads of state has now been called for Tuesday.
Greek Prime Minister Alexis Tsipras said late on Sunday that Greeks had voted for a “Europe of solidarity and democracy”.
“As of tomorrow, Greece will go back to the negotiating table and our primary priority is to reinstate the financial stability of the country,” he said in a televised address.
“This time, the debt will be on the negotiating table,” he added, saying that an International Monetary Fund assessment published this week “confirms Greek views that restructuring the debt is necessary.”

(Mark Lowen; “Greece debt crisis: Greek voters reject bailout offer”; 6th July; BBC http://www.bbc.com/news/world-europe-33403665).

Strangely – Tsipras appeared not too happy. It became clear that he had been expecting a ‘Yes’ vote, which would enable him to cave in to the EU demands. He had relied on the often remarked on “wish of the Greek peoples to see themselves as European” and thus not to risk leaving the EU. But the Greek people had seen the callous manipulations of the EU leaders.

On the same day the results were announced, Yanis Varoufakis resigned – saying that this would help the negotiations going forward, but that this resignation had been essentially, at the request of Tsipras.

Proponents of the logical outcome of the “No” Vote – such as Yanis Varoufakis – were simply told to drop alternative plans. Varoufakis had been drawing up “Plan B” – whereby if the Troika did not retreat to any key extent – Greece would resurrect the pre-Euro currency of the Drachma.

Astonishingly, given this pledge by the Greek people to stand fast, in the final run of negotiations with the EU, Tsipras – then completely capitulated to Eurozone, primarily German imperialists. Unsurprisingly, in the renewed negotiations – the European leaders and most sections of banking capital – had simply turned their backs on the Greek populations views and demanded even harsher terms:

“The Greek government capitulated on Thursday to demands from its creditors for severe austerity measures in return for a modest debt write-off, raising hopes that a rescue deal could be signed at an emergency meeting of EU leaders on Sunday….Athens has put forward a 13-page document detailing reforms and public spending cuts worth €13bn with the aim of securing a third bailout from creditors that would raise €53.5bn and allow it to stay inside the currency union.
A cabinet meeting signed off the reform package after ministers agreed that the dire state of the economy and the debilitating closure of the country’s banks meant it had no option but to agree to almost all the creditors terms.”

(Phillip Inman, Graeme Wearden and Helena Smith: ”; 9 July 2015 Greece debt crisis: Athens accepts harsh austerity as bailout deal nears “Greek cabinet backs a 13-page package of reforms and spending cuts worth €13bn to secure third bailout and modest debt writeoff http://www.theguardian.com/business/2015/jul/09/greece-debt-crisis-athens-accepts-harsh-austerity-as-bailout-deal-nears)

As even the Guardian concluded: “Generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone:

“Greece and the rest of the eurozone have finally reached an agreement that could lead to a third bailout and keep the country in the eurozone.
Greek PM Alexis Tsipras conceded to a further swathe of austerity measures and economic reforms after more than 16 hours of negotiations in Brussels. He has agreed to immediately pass laws to further reform the tax and pension system, liberalise the labour market, and open up closed professions. Sunday trading laws will be relaxed, and even milk producers and bakers will be deregulated.
The Financial Times has dubbed it:
‘The most intrusive economic supervision programme ever mounted in the EU’.
Greece was forced to accept these measures after Germany piled intense pressure, as a price for a new deal. EU officials told us that Tsipras was subjected to “mental waterboarding” in closed-door meetings with Angela Merkel, Donald Tusk and Francois Hollande.
The plan must now be approved by the Athens parliament by Wednesday, and then voted through various national parliaments. If agreement is reached, talks can then begin towards a a new three-year bailout worth up to €86bn (£61bn), accompanied by further monitoring by Greece’s creditors.
The deal appears to end Greece’s five-month battle with its creditors, which has gripped the eurozone, dominated the political agenda and alarmed the markets.
Emerging from the summit, Tsipras admitted it had been tough – but insisted he had won concessions on debt relief (sometime in the future) as well as the medium-term funding plan.
He also managed to persuade the eurozone that a new investment fund, that will manage and sell off €50bn Greek assets, would be based in Athens not Luxembourg.
But generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone.”

(Graeme Wearden and Helen Davidson. “Greek debt crisis: deal reached after marathon all-night summit – as it happened”. The Guardian 13 July 2015;
http://www.theguardian.com/business/live/2015/jul/12/greek-debt-crisis-eu-leaders-meeting-cancelled-no-deal-live)

Yanis Varoufakis summed the story up to that point as a “coup”:

“The recent Euro Summit is indeed nothing short of the culmination of a coup. In 1967 it was the tanks that foreign powers used to end Greek democracy. In my interview with Philip Adams, on ABC Radio National’s LNL, I claimed that in 2015 another coup was staged by foreign powers using, instead of tanks, Greece’s banks. Perhaps the main economic difference is that, whereas in 1967 Greece’s public property was not targeted, in 2015 the powers behind the coup demanded the handing over of all remaining public assets, so that they would be put into the servicing of our un-payble, unsustainable debt.”

(Varoufakis, Y. “On the Euro Summit’s Statement on Greece: First thoughts”; 14 July 2015. http://yanisvaroufakis.eu/2015/07/14/on-the-euro-summits-statement-on-greece-first-thoughts/)

While the Referendum gave a clear signal that the Greek people had rejected the spirit of compromise being forced by the Western Banks – the questions had been framed deliberately imprecisely. It did not ask the Greek people to consider the option of leaving the Eurozone as such. This allowed the Tsipras government to posture it did “not have a mandate” to reject the harsh terms of the Troika and move Greece to leave the Eurozone.

Inevitably this will lead to a rupture of the Syriza United Front:

“…. Syriza, which is in coalition with the rightwing populist Independent party, is expected to meet huge opposition from within its own ranks and from trade unions and youth groups that viewed the referendum as a vote against any austerity.

Panagiotis Lafazanis, the energy minister and influential hard-leftist, who on Wednesday welcomed a deal for a new €2bn gas pipeline from Russia, has ruled out a new tough austerity package. Lafazanis represents around 70 Syriza MPs who have previously taken a hard line against further austerity measures and could yet wreck any top-level agreement.”

(Phillip Inman, Graeme Wearden and Helena Smith: Guardian Ibid; 9 July 2015)

The concession made by Greece in accepting the further round of “austerity” measures is huge:

“The new proposals include sweeping reforms to VAT to raise 1% of GDP and moving more items to the 23% top rate of tax, including restaurants – a key battleground before. Greece has also dropped its opposition to abolishing the lower VAT rate on its islands, starting with the most popular tourist attractions. Athens also appears to have made significant concessions on pensions, agreeing to phase out solidarity payments for the poorest pensioners by December 2019, a year earlier than planned. It would also raise the retirement age to 67 by 2022. And it has agreed to raise corporation tax to 28%, as the IMF wanted, not 29%, as previously targeted.
Greece is also proposing to cut military spending by €100m in 2015 and by €200m in 2016, and implement changes to reform and improve tax collection and fight tax evasion. It will also press on with privatisation of state assets including regional airports and ports. Some government MPs had vowed to reverse this.
In return, Greece appears to be seeking a three-year loan deal worth €53.5bn…….
Several EU leaders said the troika of creditors – the European commission, the International Monetary Fund and the European Central Bank – must also make concessions to secure Greece’s future inside the eurozone.
Donald Tusk, who chairs the EU summits, said European officials would make an effort to address Greece’s key request for a debt write-off. …
On Thursday, the German finance minister, Wolfgang Schäuble said the possibility of some kind of debt relief would be discussed over coming days, although he cautioned it may not provide much help.
“The room for manoeuvre through debt reprofiling or restructuring is very small,” he said.
Greece has long argued its debt is too high to be paid back and that the country requires some form of debt relief. The IMF agrees, but key European states such as Germany have resisted the idea…..
German ECB governing council member Jens Weidmann argued Greek banks should not get more emergency credit from the central bank unless a bailout deal is struck.
 He said it was up to eurozone governments and Greek leaders themselves to rescue Greece.
The central bank “has no mandate to safeguard the solvency of banks and governments,” he said in a speech.
The ECB capped emergency credit to Greek banks amid doubt over whether the country will win further rescue loans from other countries. The banks closed and limited cash withdrawals because they had no other way to replace deposits.
Weidmann said he welcomed the fact that central bank credit “is no longer being used to finance capital flight caused by the Greek government.”
http://www.theguardian.com/business/2015/jul/09/greece-debt-crisis-athens-accepts-harsh-austerity-as-bailout-deal-nears

11. CONCLUSION

At the time of writing the final scenes in the disintegrating Syriza “United Front’ parliament have yet to be played out.

However the shrewdest elements of the non-Marxist-Leninist left recognize that the time is long due, for Greece to exit the European Union to regain its own measure of independence. Many on the left agree that this will be hard.

The leading proponent of this has been Costas Lapavitas – a MP in the Greek Parliament but not a member of Syriza – and radical economist. His view has been put in several books and articles for example these cited here: ([1], Lapvitas, C. Interview with Sebastien Budgen: ‘Greece: Phase Two”; in Jacobin. At https://www.jacobinmag.com/2015/03/lapavitsas-varoufakis-grexit-syriza/ [2] Costas Lapavitsas: The Syriza strategy has come to an end’. Interview with Press Project and Der Spiegel; http://www.thepressproject.gr/details_en.php?aid=74530. [3[ The crisis of the Eurozone”, July 10, 2010 ; Greek Left Review. At https://greekleftreview.wordpress.com/2010/07/10/the-crisis-of-the-eurozone/)

Although this view has certainly been challenged (Bach, Paula. “Exit the Euro? Polemic with Greek Economist Costas Lapavitsas.” Left Voice News Project, at: http://leftvoice.org/Exit-the-Euro-Polemic-with-Greek-Economist-Costas-Lapavitsas).

Marxist-Leninists argue that leaving the imperialist bloc of the EU – would be the correct policy for the working class, peasantry and poor sections of Greece.

When asked on how the Anasintaxi Organization sees the future events, they replied:

“Both reformist parties (“K”KE and SYRIZA) have accepted the Greek capital’s present strategic choice to maintain the country in the EU and the Eurozone… In order to contribute to the growth of the working class struggles and the rise of the revolutionary movement, the Movement for Reorganization of KKE (1918-1955) is striving, under very unfavorable conditions, to achieve the following:

A) Together with the reorganization, the re-birth of KKE (1918-1955) and the ideological-political-organizational unity of the Greek communists on basis of Marxism-Leninism-Stalinism and the dissemination of the Marxist conception of socialism-communism;
it actively supports and participates in the struggle of the working class and all the toilers against the reduction of salaries and pensions, against the deterioration of their position in general and supports all demands that aim to defend their (economic, trade-union, social and political) class interests in opposition to the foreign and Greek capital and in particular, the EU monopolies which impose directly the current austerity measures.

B) The formation of united, massive and truly independent trade unions whose aim will be the resistance to the extreme neo-liberal policy of austerity and the further development of the workers’ and people’s struggles combined with the struggle against nationalism-racism-fascism-Nazism (all very dangerous enemies of the working class and the people) as well as “anti-Germanism” and “anti-Hellenism” (the two sides of the bourgeois nationalism) incited, during this period, by the nationalist circles of the two countries. At the same time, these new trade unions will put forward the demand for the exit of the country from the imperialist EU not only because of the increasing dependence and the deterioration of the Greece-EU relations at the expense of our country but also because of the fact that the economic policy and the hard, anti-popular measures are directly imposed by Brussels.

C) The cooperation between the consistent left-wing, anti-imperialist and anti-fascist forces that will aim at the formation of a massive, anti-fascist, popular, front that will fight against the dependence on imperialism, in general, and the exit of Greece from the EU, the Eurozone and NATO.”

(Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html

APPENDIX: Select Chronology 1975 to 2015:
Amended from BBC version at: http://www.bbc.com/news/world-europe-17373216

1975 – New constitution declares Greece a parliamentary republic with some executive powers vested in a president.
1980 – Conservative Constantine Karamanlis elected president.
1981 – Greece joins EU. Andreas Papandreou’s Socialist Party (Pasok) wins elections.
1985 – President Karamanlis resigns in protest at government plans to reduce powers of president. Christos Sartzetakis becomes head of state.
1990 – Centre-right New Democracy party forms government under party leader Constantine Mitsotakis
1993 – Election returns Papandreou to power for PASOK.
2004 March – Conservative New Democracy party led by Costas Karamanlis wins general election, ending over a decade of Pasok government.
2005 April – Parliament ratifies EU constitution.
2005 December – Amid protest strikes by transport workers, parliament approves changes to labour laws, including an end to jobs for life in the public sector. The plans sparked industrial action in June.
2006 March – Public sector workers strike over pay and in protest at government plans to scrap job security laws and intensify privatisation.
2007 September – Minister Karamanlis wins a narrow majority in the poll. He says he now has a mandate for more reforms but also pledges to make national unity a priority.
2008 March – Parliament narrowly passes government’s controversial pension reform bill in face of general public sector strike and mass protests.
2008 December – Students and young people take to city streets in nationwide protests and riots over the police killing of a 15-year-old boy in Athens. Major public-sector strikes coincide to increase pressure on the government over its economic policies.

Economic meltdown
2002 January – Euro replaces drachma.
2004 December – European Commission issues formal warning after Greece found to have falsified budget deficit data in run-up to joining eurozone.
2009 October – Opposition Pasok socialist party wins snap election called by PM Karamanlis. George Papandreou takes over as new prime minister.

Debt crisis
2009 December – Greece’s credit rating is downgraded by one of world’s three leading rating agencies amid fears the government could default on its ballooning debt. PM Papandreou announces programme of tough public spending cuts.
2010 January- March – Government announces two more rounds of tough austerity measures, and faces mass protests and strikes.
2010 April/May – Fears of a possible default on Greece’s debts prompt eurozone countries to approve a $145bn (110bn euros; £91bn) rescue package for the country, in return for a round of even more stringent austerity measures. Trade unions call a general strike.
2011 June – 24-hour general strike. Tens of thousands of protesters march on parliament to oppose government efforts to pass new austerity laws.

Crisis deepens
2011 July – European Union leaders agree a major bailout for Greece over its debt crisis by channelling 109bn euros through the European Financial Stability Facility.
All three main credit ratings agencies cut Greece’s rating to a level associated with a substantial risk of default.
2011 October – Eurozone leaders agree a 50% debt write-off for Greece in return for further austerity measures. PM George Papandreou casts the deal into doubt by announcing a referendum on the rescue package.
2011 November – Faced with a storm of criticism over his referendum plan, Mr Papandreou withdraws it and then announces his resignation.
Lucas Papademos, a former head of the Bank of Greece, becomes interim prime minister of a New Democracy/Pasok coalition with the task of getting the country back on track in time for elections scheduled provisionally for the spring of 2012.

New bailout plan
2012 February – Against a background of violent protests on the streets of Athens, the Greek parliament approves a new package of tough austerity measures agreed with the EU as the price of a 130bn euro bailout.
2012 March – Greece reaches a “debt swap” deal with its private-sector lenders, enabling it to halve its massive debt load.
2012 May – Early parliamentary elections see support for coalition parties New Democracy and Pasok slump, with a increase in support for anti-austerity parties of the far left and right. The three top-ranking parties fail to form a working coalition and President Papoulias calls fresh elections for 17 June. The far-right Golden Dawn party based its 2012 election campaign on hostility towards immigrants
2012 June – Further parliamentary elections boost New Democracy, albeit leaving it without a majority. Leader Antonis Samaras assembles a coalition with third-placed Pasok and smaller groups to pursue the austerity programme.

Anti-austerity protests
2012 September – Trade unions stage 24-hour general strike against government austerity measures. Police fire tear gas to disperse anarchist rally outside parliament.
2012 October – Parliament passes a 13.5bn-euro austerity plan aimed at securing the next round of EU and IMF bailout loans; the package – the fourth in three years – includes tax rises and pension cuts.
2013 January – Unemployment rises to 26.8% – the highest rate in the EU.
2013 April – Youth unemployment climbs to almost 60%.
Public broadcaster closed
2013 June – The government announces without warning that it is suspending the state broadcaster ERT in a bid to save money. The decision gives rise to mass protests and a 24-hour strike.
2013 August – New state broadcaster EDT is launched.
2013 September – Government launches crackdown on far-right Golden Dawn party. Party leader Nikolaos Michaloliakos and five other Golden Dawn MPs are arrested on charges including assault, money laundering and belonging to a criminal organisation.
2013 December – Parliament passes 2014 budget, which is predicated on a return to growth after six years of recession. Prime Minister Samaras hails this as the first decisive step towards exiting the bailout.
2014 February – Greek unemployment reaches a record high of 28%.
2014 March – Parliament narrowly approves a big reform package that will open more retail sectors to competition, part of a deal between Greece and its international lenders.
2014 April – Eurozone finance ministers say they’ll release more than 8bn euros of further bailout funds to Greece.
Greece raises nearly four billion dollars from world financial markets in its first sale of long-term government bonds for four years, in a move seen as an important step in the country’s economic recovery.

Left in power
2014 May – Anti-austerity, radical leftist Syriza coalition wins European election with 26.6% of the vote.
2014 December – Parliament’s failure to elect a new president sparks a political crisis and prompts early elections.
2015 January – Alexis Tsipras of Syriza becomes prime minister after winning parliamentary elections, and forms a coalition with the nationalist Independent Greeks party.
2015 February – The government negotiates a four-month extension to Greece’s bailout in return for dropping key anti-austerity measures and undertaking a eurozone-approved reform programme.
2015 June – European Central Bank ends emergency funding. Greece closes banks, imposes capital controls and schedules referendum on European Union bailout terms for 5 July.Government reinstates former state broadcaster ERT as promised in Syriza manifesto.
2015 July – Greece becomes first developed country to miss a payment to the International Monetary Fund, having already delayed it

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Anasintaxi (KKE 1918-55): The New Bailout Agreement

 

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  • Crude, barbarous trampling on the national sovereignty of the country by the EU imperialists
  • Violent enslavement of the Greek people with the support of the subservient bourgeois class and its parties (great-bourgeois, reformist, fascist)

The new bailout agreement constitutes a complete surrender to the fascist extortion of the EU representatives (primarily of Germany and its satellite states) and is in total opposition to the will of the Greek people expressed with the NO vote in the recent referendum; in the name of the detrimental membership of the country in the Eurozone.

It cannot be left unnoticed that there were and there still are plans made by the EU imperialists to remove the elected government and replace it with another one without elections as it was the case with the government led by the former banker Papadimos in 2011.

The only path for the working class and the people is the one of class struggle against the imperialist intervention in the internal affairs of the country and the new harsh, barbarous, anti-popular measures.  At the same time, the plans of forming a government without elections, clearly a fascist constitutional violation, should be disrupted.  The central slogan of this struggle cannot be any other than the immediate exit from EU-EMU-Eurozone.

Movement for the Reorganisation of KKE 1918-55

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Anasintaxi (KKE 1918-55): Announcement Concerning the Referendum

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Athens, 27 June 2015

The prime minister’s proposal for a referendum calls the people to decide whether to accept the measures promulgated by the imperialist creditors or not, gives the opportunity to the Greek people to express his will and reject the detrimental measures.

The Movement for the Reorganisation of KKE (1918-55) invites the people to participate in the referendum and reject these measures. At the same time, the referendum amounts, most and foremost, to checking the imperialist intervention in the internal affairs of our country.

Finally, we remind that our Movement adopted a similar attitude in 2011 in relation to the then proposed referendum which was not held due to its dismissal by the imperialists, the local reactionary bourgeois circles and all the bourgeois parties displaying all of them a shameful subservient attitude towards the EU imperialists.

Movement for the Reorganisation of KKE (1918-55)

ICMLPO (Unity & Struggle): The regional meeting of the Marxist-Leninist parties and organizations of Europe was held in Paris

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In June, our party had the joy and the honor of hosting the regional meeting of the Parties and Organizations of Europe, members of the International Conference of Marxist-Leninist Parties and Organizations.

Intense exchanges and discussion allowed us to draw up and adopt a political resolution on the situation in Europe and on the tasks and mobilizations that our parties intend to develop.

An important part of the discussion focused on the attacks of the liberal and social-liberal governments against the working class and the popular masses and on the development of the resistance. Particular attention was paid to developing solidarity with the working class and the people of Greece in order to break the blackmail of the troika (IMF, EU and ECB) and of the governments of the EU states, which are united against the Greek people.

We also addressed the issue of the criminal policy being carried out by the States and the EU against refugees and immigrants.

We analyzed the tensions, the armed conflicts, the militarization of the economies of several EU States, particularly the imperialist powers, linked to the greater involvement of NATO.

On these different issues, plans were discussed in order to develop joint work among our parties and organizations, with the objective of taking part in existing mobilizations with our analysis and proposals, or of creating them with the aim of winning other forces.

Here are the various texts adopted by the Regional Conference.

Communique

In June 2015, the regional meeting of the Marxist-Leninist parties and organizations, members of the International Conference of Marxist-Leninist Parties and Organizations (ICMLPO), was successfully held in France in a fraternal atmosphere of internationalist solidarity.

At the beginning of the meeting, the participants paid tribute to the memory of recently deceased comrades, Frede Klitgard, of the Workers’ Communist Party of Denmark (APK) and Juan Marte, of the Communist Party of Labor (PCT) of the Dominican Republic. The meeting was dedicated to these two resolute Marxist-Leninists, and pledged to follow their example.

The parties and organizations congratulated the Party of Labor (EMEP) of Turkey for their success in the electoral battle through the alliance with the party HDP [People’s Democratic Party].

The participants exchanged views on the situation and experiences of work developed in their countries. They discussed the capitalist crisis in Europe, the rise of the rejection of neoliberal policies and austerity policies of the EU, the threats of imperialist war and their consequences.

After a long debate, an important political declaration was adopted unanimously, in which we express our solidarity with the struggle of the Greek workers and people against the blackmail of the EU, the IMF and the liberal and social-liberal governments of the EU States. We call on everyone in all countries to take part in the initiatives of solidarity with the workers and people of Greece, and to take part in the demonstrations of June 20.

We also approved a motion of solidarity with the Norwegian dockers.

We call on the workers and peoples of Europe to develop and implement the orientations contained in this political declaration.

The participants established common tasks and political activities for the coming months, to advance in the struggle for the revolutionary transformation of society and the development of proletarian internationalism.

France, June 2015

Workers’ Communist Party of Denmark – APK
Communist Party of the Workers of France – PCOF
Organization for the Construction of the Communist Party of the Workers of Germany
Movement for the Reorganization of the Communist Party of Greece (1918-1955)
Communist Platform for the Communist Party of the Proletariat of Italy
Marxist-Leninist Organization Revolusjon of Norway
Communist Party of Spain (Marxist-Leninist) – PCE (ML)
Party of Labor of Turkey – EMEP

POLITICAL RESOLUTION

Let us mobilize against policies of austerity and war
Long live international solidarity!

For years, the EU and the governments of various countries have imposed austerity policies on the workers and the popular masses. The result of the crisis of the capitalist system, aggravated by these austerity policies, have been more than 25 million unemployed in the EU, a massive unemployment that primarily affects young people, who are condemned to insecurity, but also older workers, who are threatened with sinking into poverty. The poverty extends everywhere, in the cities and the countryside. With these austerity policies, “growth” destroys more and more jobs and further enriches the rich and large shareholders. It means more insecurity, lower wages, drastic cuts in social spending: health care, education, public transport, etc.

These neoliberal policies are being implemented by the governments that are applying the “road map” of big business, of the financial oligarchy, who want to reverse the social and political gains that the working class, toilers and peoples have won through years of struggle and who today are resisting and fighting to maintain them. The various European treaties and directives, particularly since the Maastricht Treaty (and its “convergence criteria” that established the euro), have continued and deepened this anti-worker and anti-people policy, in the name of the dogma of “free and undistorted competition,” which means the organized competition of all against all, social dumping, “liberalization of the labor market,” which means freedom for the bosses to fire, the super-exploitation of the workers and instability. Whether they are called the “mobility law” of Rajoy [Prime Minister of Spain], the “Jobs Act” de Renzi [Prime Minister of Italy], the “Hartz Law” in Germany, the “Macron Law” in France, etc. these counter-reforms are all aimed at lowering the price of labor power, facilitating dismissals, developing even more flexibility and challenging the collective rights of the workers.

In recent years, it is the “debt crisis” that serves to justify the policies of privatization, of drastic cuts in social budgets, the liquidation of measures of social protection, while they are more necessary than ever for the large impoverished masses. These include particularly women of the popular strata, working women, who are the first victims of the elimination of public services.

It is not the popular masses who are responsible for these debts. These debts were contracted the billions in public money were used to bail out the banks and help the big monopolies to become ever bigger, to finance the policies of armaments, “major projects” that are useless for the people but very profitable for the monopolies who build and manage them.

The rejection of these national and European austerity policies is general. This is shown in the workers’ and popular resistance, in the demonstrations, the strikes, etc. that are the results of these policies. It is also shown in the elections, particularly through the very high rate of abstention among the popular strata and the disavowal of the governing parties, whether of the right or of the social-democrats.

The right-wing populist parties, the parties of the extreme right are able to use their electoral capital on a sector of this protest movement to highjack it into “solutions” that avoid attacking the capitalist system and that are promoting nationalism, division and xenophobia. While some do not hide their fascistic and even fascist references, others hide them behind an increasingly “social” discourse.

But this rejection is also expressed in a progressive way, particularly through the support given to the forces that take a stand against the austerity policies, against the payment of the debt for life, against the orders of the IMF, the ECB, the EU and the imperialist powers in Europe.

We are in solidarity with the struggle of the Greek people and denounce the blackmail of the leaders of the EU

This is what happened in Greece, with the victory of Syriza in the January elections.

Simply calling for “renegotiating” the debt, for having announced the end of the policy of mega-austerity imposed by the troika, has unleashed an intense campaign of pressure, blackmail, etc. by the leaders of all the EU countries, the officials of the IMF and the European institutions, in order to impose the continuation of the austerity policy.

The hatred of these leaders is explained by the fact that in no case do they want a people to refuse to continue to suffer the austerity policies that they themselves are imposing on “their” people. They do not want the fight of the people, the workers, the youth of Greece, etc. to serve as an example to other peoples. They want to avoid the “contagious effect” that this resistance can cause. Therefore, they want to make the Greek government capitulate.

It is not possible to resist these pressures without the mobilization of the Greek workers and people. This is what must be developed.

But we also need the solidarity of the workers and peoples, especially in Europe, to develop. That is why we are working with all political, union and social forces that share this goal.

We must denounce and put pressure on the governments of the EU countries, particularly those of the imperialist powers such as Germany and France, to stop this policy of blackmail towards Greece.

We must demand the cancellation of the Greek debts.

We must develop the fight against the same austerity policies in all countries.

Down with “Fortress Europe”

Every day boats of refugee from Africa and the Middle East capsize, causing dozens of deaths. If they manage to enter the EU, which is continuing to build walls, police and military barriers, etc., they find themselves chased and harassed by the police of all the EU countries. They are forced to hide and to live in inhuman conditions. They are also the target of parties and organizations of the far-right and fascists who are carrying out racist and xenophobic campaigns on the theme of the dangers of the “invasion” of refugees.

These refugees, men, women and children, are fleeing poverty and wars. They come from Syria, from the Horn of Africa, from the countries of the Sahel, etc., in short, from countries where the great imperialist powers are waging wars. Under the pretext of the “fight against terrorism,” there is the war for control of mineral and oil resources, the control of strategic zones, the rivalries among the great powers and their local allies.

In other words, the warmongers are the main ones responsible for this immigration.

While the peoples are showing their solidarity, as in Italy, in welcoming the refugees, the governments are putting in place increasingly reactionary policies aimed at “preventing immigration” and criminalizing the migrants and all those in solidarity with them.

No to the policy of tension and war

Several EU States are taking part in imperialist wars in Africa and the Middle East.

The decision of the leaders of the European imperialist powers to integrate Ukraine into the economic and political sphere of influence of the EU, the direct interference of US imperialism through the growth in power of NATO at the borders of Russia and the support given to the reactionary government of Kiev and to the reactionary and fascist forces in Ukraine, have resulted in a situation of great tension at the very frontiers of the EU.

We are currently witnessing a “re-engagement” of NATO in Europe, strongly supported by the leaders of several countries of Eastern Europe, particularly Poland and the Baltic countries. This is accompanied by an increase in their military budgets.

For several years US imperialism has put pressure on its allies to “share the burden of defense.”

The danger of war in Europe is real.

We demand the cancellation of the treaty linking Ukraine to the EU, a treaty that subjects the workers and the peoples of Ukraine to the economic and political orders of the EU.

We denounce the policy of confrontation with Russia and we demand the withdrawal of the arms deployed by NATO in this region.

We call for mobilization for the withdrawal from NATO, the armed wing of US imperialism and its allies, as an important step towards its dissolution.

We call on all people to develop the mobilization against the rising war budgets.

We denounce the increasing establishment of police States

The involvement of several European imperialist powers in the “war against terrorism” in the Middle East and the Sahel is accompanied by the establishment of mechanisms of surveillance and mass control and the closer coordination between the police, civil and military intelligence services, linked with the US intelligence services, particularly through NATO.

In all countries, one can see the strengthening of the criminalization of “social protest,” the questioning of democratic freedoms, particularly in the area of the right to strike, the right to organize and demonstrate. These attacks are concentrated against the militant organizations and unionists who denounce the class collaboration of the leaders who are “negotiating” with the employers and the government the implementation of austerity policies.

We call on the people to denounce and combat the rise of fascism in the States that is currently developing.

The myth of a Europe of peace and shared prosperity is collapsing

The crisis in Europe is sharpening the contradictions within it, among the States, and within each country and, more generally, between the social classes. Inequality is deepening and tensions are becoming exacerbated.

The economic mechanisms put in place by the EU and the euro zone are increasing the unequal development and are posing the question, repeatedly and publicly, of maintaining the euro zone as it exists.

In the countries where the people have spoken out against joining the euro zone or against joining the EU, this opposition is continuing to grow.

Certain countries applied to join the EU, and then withdrew their application, such as Iceland.

Everywhere opposition to the EU, to its policies, its anti-democratic way of functioning is growing and, in the increasingly important sectors, this challenge also affects its decision to establish itself as an imperialist bloc in ever stronger competition with the other great powers, and its even greater aggressiveness on the economic and political level towards the dominated countries of Africa, Asia, Latin America, etc.

Everywhere the consciousness is also growing that it is not possible to change the EU from within into a supposedly progressive institution at the service of peoples.

Therefore, we unconditionally defend the right of the peoples to break with the EU, the euro and all its political and economic mechanisms.

Paris, June 2015

Workers’ Communist Party of Denmark – APK
Communist Party of the Workers of France – PCOF
Organization for the Construction of the Communist Party of the Workers of Germany
Movement for the Reorganization of the Communist Party of Greece (1918-1955)
Communist Platform – for the Communist Party of the Proletariat of Italy
Marxist-Leninist Organization Revolusjon of Norway
Communist Party of Spain (Marxist-Leninist) – PCE (ML)
Party of Labor of Turkey – EMEP

Members of the International Conference of Marxist-Leninist Parties and Organizations

MOTION OF SOLIDARITY WITH THE DOCKERS OF NORWAY

Call for support for the Norwegian dockers

The dockers are known worldwide for their internationalism and their solidarity with the workers and seamen who are fighting for their rights. Now the dockers themselves are in urgent need of international support and solidarity.

The dockers of Norway have been in conflict since November 2013, that is, for almost 12 months. They have been repressed and arrested by the police. Their only demand is that the employers ratify the collective agreement and abide by the Convention 137 of the ILO which grants the unionized dockers the prerogative to load and unload the cargo ships. But this right is being denied them, including in the port of Oslo.

In the port of Oslo, this fight has another international aspect, because the Turkish company Yilport obtained the “exclusive right” to operate in the port for the next twenty years. But Yilport not only refuses to negotiate a collective agreement, but even refuses any discussion with the dockers’ union. Yilport is also hiring unskilled workers from temporary employment agencies, which results in dismissing the dockers from their work. This attempt to eliminate the dockers’ union and to undermine the collective agreements is totally unacceptable. In reality this is an attack against the workers in all countries and in all sectors.

The Marxist-Leninist parties and organizations of Europe call on the workers, unions and democratic forces to show their solidarity and boycott Yilport until it rehires the union dockers in the port of Oslo and signs a collective agreement with them.

Workers of the world, unite!

Resolution adopted by the regional conference of Marxist-Leninist parties and organizations, held in France in June 2015

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Putin’s Western Allies

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Why Europe’s Far Right Is on the Kremlin’s Side

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Given that one of Russian President Vladimir Putin’s stated reasons for invading Crimea was to prevent “Nazis” from coming to power in Ukraine, it is perhaps surprising that his regime is growing closer by the month to extreme right-wing parties across Europe. But, in both cases, Putin’s motives are not primarily ideological. In Ukraine, he simply wants to grab territory that he believes rightly belongs to him. In the European Union, he hopes that his backing of fringe parties will destabilize his foes and install in Brussels politicians who will be focused on dismantling the EU rather than enlarging it.

In Hungary, for example, Putin has taken the Jobbik party under his wing. The third-largest party in the country, Jobbik has supporters who dress in Nazi-type uniforms, spout anti-Semitic rhetoric, and express concern about Israeli “colonization” of Hungary. The party has capitalized on rising support for nationalist economic policies, which are seen as an antidote for unpopular austerity policies and for Hungary’s economic liberalization in recent years. Russia is bent on tapping into that sentiment. In May 2013, Kremlin-connected right-wing Russian nationalists at the prestigious Moscow State University invited Jobbik party president Gabor Vona to speak. Vona also met with Russia Duma leaders including Ivan Grachev, chairman of the State Duma Committee for Energy and Vasily Tarasyuk, deputy chairman of the Committee on Natural Resources and Utilization, among others. On the Jobbik website, the visit is characterized as “a major breakthrough” which made “clear that Russian leaders consider Jobbik as a partner.” In fact, there have been persistent rumors that Jobbik’s enthusiasm is paid for with Russian rubles. The party has also repeatedly criticized Hungary’s “Euro-Atlantic connections” and the European Union. And, more recently, it called the referendum in Crimea “exemplary,” a dangerous word in a country with extensive co-ethnic populations in Romania and Slovakia. It seems that the party sees Putin’s new ethnic politics as being aligned with its own revisionist nationalism.

The Kremlin’s ties to France’s extreme-right National Front have also been growing stronger. Marine Le Pen, the party leader, visited Moscow in June 2013 at the invitation of State Duma leader Sergei Naryshkin, a close associate of Putin’s. She also met with Deputy Prime Minister Dmitry Rogozin and discussed issues of common concern, such as Syria, EU enlargement, and gay marriage. France’s ProRussia TV, which is funded by the Kremlin, is staffed by editors with close ties to the National Front who use the station to espouse views close to National Front’s own perspective on domestic and international politics. The National Front wishes to replace the EU and NATO with a pan-European partnership of independent nations, which, incidentally, includes Russia and would be driven by a trilateral Paris-Berlin-Moscow alliance. Le Pen’s spokesman, Ludovic De Danne, recently recognized the results of the Crimea referendum and stated in an interview with Voice of Russia radio that, “historically, Crimea is part of Mother Russia.” In the same interview, he mentioned that he had visited Crimea several times in the past year. Marine Le Pen also visited Crimea in June 2013.

The list of parties goes on. Remember Golden Dawn, the Greek fascist party that won 18 seats in Greece’s parliament in 2012? Members use Nazi symbols at rallies, emphasize street fighting, and sing the Greek version of the Nazi Party anthem. The Greek government imprisoned Nikos Michaloliakos, its leader, and stripped parliamentary deputies of their political immunity before slapping them with charges of organized violence. But the party continues to take to the streets. Golden Dawn has never hidden its close connections to Russia’s extreme right, and is thought to receive funds from Russia. One Golden Dawn­­–linked website reports that Michaloliakos even received a letter in prison from Moscow State University professor and former Kremlin adviser Alexander Dugin, one of the authors of Putin’s “Eurasian” ideology. It was also Dugin who hosted Jobbik leader Vona when he visited Moscow. In his letter, Dugin expressed support for Golden Dawn’s geopolitical positions and requested to open a line of communication between Golden Dawn and his think tank in Moscow. Golden Dawn’s New York website reports that Michaloliakos “has spoken out clearly in favor of an alliance and cooperation with Russia, and away from the ‘naval forces’ of the ‘Atlantic.’”

Finally, a cable made public by WikiLeaks shows that Bulgaria’s far right Ataka party has close links to the Russian embassy. Reports that Russia funds Ataka have swirled for years, but have never been verified. But evidence of enthusiasm for Russia’s foreign policy goals is open for all to see. Radio Bulgaria reported on March 17 that Ataka’s parliamentary group “has insisted that Bulgaria should recognize the results from the referendum for Crimea’s joining to the Russian Federation.” Meanwhile, party leader Volen Siderov has called repeatedly for Bulgaria to veto EU economic sanctions for Russia.

In addition to their very vocal support for Russia’s annexation of Crimea within the EU, Jobbik, National Front, and Ataka all sent election observers to validate the Crimea referendum (as did the Austrian Freedom Party, the Belgian Vlaams Belang party, Italy’s Forza Italia and Lega Nord, and Poland’s Self-Defense, in addition to a few far-left parties, conspicuously Germany’s Die Linke). Their showing was organized by the Russia-based Eurasian Observatory For Democracy & Elections, a far-right NGO “opposed to Western ideology.” The EODE specializes in monitoring elections in “self-proclaimed republics” (Abkhazia, Transnistria, Nagorno-Karabakh) allied with Moscow, according to its website.

The Putin government’s cordial relations with Europe’s far right sit oddly, to say the least, with his opposition to “Nazis” in the Ukrainian government. Yet Putin’s dislike for Ukrainian “fascists” has nothing to do with ideology. It has to do with the fact that they are Ukrainian nationalists. The country’s Svoboda and Right Sector parties, which might do well in the post–Viktor Yanukovych Ukraine, stand for independence in a country that Putin does not believe should exist separate from Russia.

Similarly, Russian support of the far right in Europe has less to do with ideology than with his desire to destabilize European governments, prevent EU expansion, and help bring to power European governments that are friendly to Russia. In that sense, several European countries may only be one bad election away from disaster. In fact, some would say that Hungary has already met it. As support for Jobbik increases, the anti-democratic, center-right government of Prime Minister Viktor Orban has tacked heavily to the right and recently signed a major nuclear deal with Russia. Russia plans to lend Hungary ten billion euro to construct two new reactors at its Paks nuclear plant, making Hungary even more dependent for energy on Russia. Jobbik’s Vona wants to go even further, taking Hungary out of the EU and joining Russia’s proposed Eurasian Union.

European parliamentary elections, which are scheduled for the end of May, are expected to result in a strong showing for the far right. A weak economy, which was weakened further by the European Central Bank’s austerity policies, has caused the extreme right vote to surge. Current polls show the far-right parties in France and Holland winning the largest share of seats in their national delegations. Brussels strategists worry that 20 percent of members of the new European parliament could be affiliated with parties that wish to abolish the EU, double the current number. That could cause an EU government shutdown to rival the dysfunction of Washington and deal a major blow to efforts to enlarge the Union and oppose Russian expansionism.

It is strange to think that Putin’s strategy of using right-wing extremist political parties to foment disruption and then take advantage — as he did in Crimea — could work in southern and western Europe as well. Or that some of the extreme right parties in the European parliament, who work every day to delegitimize the European Union and whose numbers are growing, may be funded by Russia. Yet these possibilities cannot be dismissed. Russia might soon be able to disrupt the EU from within.

To counter Russia, European leaders should start launching public investigations into external funding of extreme-right political parties. If extensive Russia connections are found, it would be important to publicize that fact and then impose sanctions on Russia that would make it more difficult for it to provide such support. Pro-European parties must find a way to mobilize voters who are notoriously unwilling to vote in European parliament elections. Europe will also have to rethink the austerity policies that have worsened the grievances of many Europeans and pushed them to support the anti-system, anti-European right. Although Germany has banned extreme right parties from representation, other countries have not. Germany may have therefore underestimated the extent of damage austerity policies could do to the European project and should rethink how its excessive budget cutting, monetary prudence, and export surpluses are affecting politics in the rest of Europe.

Putin’s challenge to Europe must be taken seriously. Rather than making another land grab in his back yard, he might watch patiently from the sidelines at the end of May as pro-Russia far-right parties win a dramatic election victory in European parliamentary elections. These elections could weaken the European Union and bring Russia’s friends on the far right closer to power.

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Anasintaxi (KKE: 1918-55): Some questions and answers about the current situation in Greece

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1. Several dozen glorious general strikes and constant struggles of the masses in Greece against the austerity policies of ND and PASOK that plunged Greece into poverty and unemployment expressed the anger of the people and demanded a change in Greek society. How do you see and interpret the victory of SYRIZA in the elections?

By voting for SYRIZA, the majority of the Greek people rejected and condemned the cruel economic measures that were imposed, the neoliberal economic policy, in general, and the great-bourgeois parties of ND and PASOK that implemented these measures with the utmost servility. The victory of SYRIZA is also explained by the people’s resentment towards the fascist re-modeling of social life promoted by the government of the fascist scoundrel Samaras.

2. Tsipras and some political forces characterize SYRIZA as “radical left” that is going to somehow liberate the people of Greece from the economic misery. What is the class nature of SYRIZA and what program has the government of Tsipras promised the people to implement?

The revolutionary KKE, which never adopted the Khrushchevite revisionism, was eliminated by the brutal intervention of the soviet Khrushchevite revisionists in 1955-1956 and replaced by the Greek Khrushchevite revisionist party (“K”KE), a bourgeois party of a social-democratic type.

In 1968, “K”KE was split into two parties: the euro-communist part known as “K”KE (interior) and the Khrushchevite-Brezhnevite part known as “K”KE. SYRIZA originates from the first part and, consequently, is a social-democratic and reformist party guided by a right-opportunist general line and characterized by petty bourgeois class features.

In the sphere of social questions, SYRIZA is an anti-fascist party suffering from inconsistencies and contradictions as it is evident from the fact that it formed an alliance with the great-bourgeois nationalist party of ANEL.

3. Greece is a member of European Union, a member of NATO, and has implemented the neoliberal policies of the Western imperialist powers. Has Tsipras the will and determination to eliminate political, economical, and military dependency on the Western imperialist powers and to cut the hands of EU-ECB-IMF from the lives of Greek people?

Tsipras and the leading group of SYRIZA is neither willing nor determined to eliminate Greece’s political, economical and military dependence on imperialism. The only thing that he seems determined to do is to reduce the pressure coming from European Union and the European Central Bank regarding the implantation of extreme austerity programs. SYRIZA has made the strategic choice to support Greece’s membership in the European Union and the Eurozone.

4. Certainly, the victory of the people of Greece against the austerity measures of ND-PASOK governments is good news. How is the dialectical development of the situation after the elections? Will the conditions created by the Tsipras victory strengthen the class struggles of the Greek working masses?

During the first three weeks following the elections, the SYRIZA government has taken a series of actions in order to implement its program that has won the support of wide popular strata, an attitude that is unfortunately accompanied by certain illusions. We think that, up to a certain extent, SYRIZA’s victory creates favorable conditions for the strengthening of class struggles. Whether this possibility becomes a reality depends, of course, on many factors, the most important of which is the organization of the majority of the working masses in independent and united trade unions and the influence exerted on these, and the society in general, by the consistent left-wing, anti-imperialist and revolutionary communists.

5. The so-called Communist Party of Greece (KKE) participated in the European elections. Despite all its phrase-mongering demand about Greece leaving the Eurozone, how different are the politics of this reformist party from those of SYRIZA?

It is important to clarify that, despite its verbal attacks against EU and the Eurozone, “K”KE does not put forward (not even for the sake of demagogy) the question of Greece’s exit neither from the EU nor the Eurozone. This is also evident in the party’s program that was approved by its last congress. “K”KE considers Greece an imperialist(!) country and favors the view that “the term “national dependence” is not applicable in contemporary conditions” (1/2/2005). Furthermore, in relation to Euro, the leadership of “K”KE has stated: “A solution outside the euro and return to the drachma in the present circumstances would be catastrophic” (30/5/2011). Therefore, in essence, the policy of this reformist party is not different than that of SYRIZA.

6. The crises in Greece demand a vast mobilization of the popular sectors of the society and the development of a revolutionary alternative to capitalism. Could you tell us about the tactics adopted by KKE (1918-55) in the present situation in order to strengthen the struggles of the working class and to deepen the revolutionary demands of the protesters on the streets?

In order to contribute to the growth of the working class struggles and the rise of the revolutionary movement, the Movement for Reorganization of KKE (1918-1955) is striving, under very unfavorable conditions, to achieve the following:

A) The reorganization, re-birth of KKE (1918-1955) and the ideological-political-organizational unity of the Greek communists on basis of Marxism-Leninism-Stalinism.

B) The formation of united, massive and truly independent trade unions whose aim will be the resistance to the extreme neo-liberal policy of austerity and the further development of the workers’ and people’s struggles combined with the struggle against fascism-Nazism.

C) The cooperation between the consistent left-wing, anti-imperialist and anti-fascist forces that will aim at the formation of a massive popular front that will fight against the dependence on imperialism, in general, and the exit of Greece from the EU, the Eurozone and NATO.

Αναρτήθηκε από Anasintaxi Organization στις

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KKE (1918-55) (Anasintaxi): Video and Photos from Presentation of Books

K. Natsikas (member of the PC of Anasintaxi), S. Zachariadis, T. Mpallos, et al.

K. Natsikas (member of the PC of Anasintaxi), S. Zachariadis, T. Mpallos, et al.

Alexis Parnis (poet and close friend of N. Zachariadis) and Tassos Mpallos

Alexis Parnis (poet and close friend of N. Zachariadis) and Tassos Mpallos

Sifis (Josef) Zachariadis under his father’s portrait

Sifis (Josef) Zachariadis under his father’s portrait

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KKE (1918-55) (Anasintaxi): BOYCOTT the elections – The elections do not solve the problem of imperialist DEPENDANCE (economic-political-military, NATO bases etc.), nor repel-cancel ongoing EU politics against the people

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GREECE OUT OF EURO – EU RIGHT NOW

The elections do not solve the problem of imperialist DEPENDANCE (economic-political-military, NATO bases etc.), nor repel-cancel ongoing EU politics against the people

BOYCOTT THE ELECTIONS

Effective ONLY WAY: All-worker’s UNITY and intensity of the class struggle against the EU and its local chapter  – Militant MASSIVE demonstrations

In the last 6 years with the open and complete collapse of the economy all known myths of “equal participation in the EU”, “the country’s economic development”, “convergence of the economies of EU member-countries, “continuous growth of prosperity “, etc., etc. collapsed completely.

Today the status of the country, the working class and the people is very bad, worse than ever:

1. Extreme deepening of imperialist DEPENDENCE whilst stifling international financial control and strict supervision for decades by European Commission-ECB-IMF,
2. indebtedness of the country with a huge external ever-growing debt which is a loop neck of the country and younger generations,
3. deep protracted economic cyclical crisis of overproduction, dropping production, mass closure of businesses, falling exports, etc., etc.,
4. large and rapid increase of mass unemployment, the actual amount of around 2,000,000 and for young people reaches a percentage of 65-70%, with hundreds of thousands of people forced to migrate permanently creating an unprecedented haemorrhage,
5. beyond the intensive exploitation and annihilation of all the conquests of the workers, there were: a large reduction of salaries and pensions, unprecedented cuts in social spending (health, education, etc.) And huge increases in taxes and prices, etc., which led to a great sharp deterioration of the situation of the working class and the people and lasting deepening of the process of absolute misery of the proletariat,
6. restrictions on democratic freedoms, deepening fascistation and dangerous rise of fascist and Nazi-fascist forces (“Golden Dawn” -LAOS etc.).

Despite the above and although, both basic and key issues of the struggle of the working class and the country which are directly and closely tied with the EU: that of DEPENDENCE and the attacks-measures against the people, have extreme worsen: ie.

first, with the constant deepening of DEPENDANCE has major negative impacts on the country, but also the continuous provocative interference in its internal affairs on all levels, even in the current election campaign, (see statements by Juncker, Moscovici, Schaeuble, et al. )

second, with durable continuous unpopular measures, not imposed only by the local capital but also directly from the EU,

NONE of the political parties, bourgeois and reformist, is not in favor of Greece’s immediate exit of Euro-EMU-European Union

In contrary ALL the bourgeois parties are in favor of Greece’s STAY in imperialist European Union, and in EURO-EMU and propagate consciously, serve the interests of the EU imperialists with misleading MYTH-fantasies about “equal participation” (!) of the country in the “pit of lions” of the powerful European monopolies. At the same time the propagate that Greece leaving the Euro-EMU-EU will be a “major disaster” (!).

ALL the reformist social democratic parties (“K” KE-SYRIZA, etc.) and the extra-parliamentary organizations follow the same strategic choice of the EU monopolies and the local capital.

It is not only SYRIZA which supports the country STAY EURO-EMU-EU, but also the “K” KE: “A solution outside the euro and return to the drachma in the present circumstances would be catastrophic” (A. Papariga, “Rizospastis” 31/5/2011, p.6)

Moreover: the leaders of the “K” KE definitively renounced the anti-imperialist struggle for the overthrow of dependence.

[…]

In order the working class and the workers to defend their class interests against the attacks of the local and foreign capital (EU, etc.) they have to fight against capital and local governments but also EU in conjunction with the struggle against imperialist DEPENDENCE generally, particularly that of the EU and for the here and now, EXIT of Greece from Euro-EMU-EU.

Alongside they have to fight against nationalism and fascism

The ONLY EFFECTIVE WAY is the unity of all workers and intensity of the class struggle against the EU and the local capitali with MASSIVE militant protests.

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Anasintaxi (1918-55): Photos from the discussion about Ukraine–fascism (16.11.2014)

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The Movement for the Reorganisation of KKE 1918-1955 outside the Polytechic School in Athens

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ICMLPO (Unity & Struggle): The International Situation and the Tasks of the Proletarian Revolutionaries

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The imperialist capitalist world is trapped in its irresolvable contradictions

The significant development of the productive forces, the gigantic capitalist accumulation and concentration, is unfolding in the midst of the anarchy of production and the realization of commodities; it is marked by the desire for profit of the owners of private property; it is determined by the uneven development; it is marked by competition which is expressed primarily at the level of the imperialist monopolies and countries, leading to an intense and sharp contention in all areas, economic, financial, commercial, political, diplomatic and military.

The expansion of capitalism and imperialism cannot escape the economic crises that occur at increasingly shorter terms and with greater depth. One cannot hide the general decline of the economy. Although there will be new levels of development of the productive forces, the capitalist-imperialist system remains trapped in the general crisis, it is manifested in the wars of aggression and genocide, it is built on the super-exploitation of thousands of millions of workers in all countries on earth, it is responsible for the poverty of thousands of millions of human beings. It has nothing new to offer to the workers and peoples. It is a rotten system, a system in decline.

A new economic crisis is looming

The economic crisis of 2008, which began in the US and had an impact on the vast majority of countries and was identified as the most serious since the Great Depression of 1929, caused massive destruction of the productive forces, the unemployment of more than 10 million workers, the lowering of wages, the raising of the retirement age and the cuts to pensions, as well as the use of public funds to favor the large industrial enterprises and banks by the States, which had in turn to resort to a new and aggressive indebtedness. It was an economic crisis that arose in the heart of the capitalist world, in the US, and which spread throughout the world. It was a result of the very nature of the capitalist system, it affected the big monopolies, but its most dramatic effects were thrown onto the shoulders of the working classes, the peoples and youth and on the dependent countries.

The economy of the US, of the countries of Western Europe, of some of the dependent countries in Asia and Africa that were affected by the crisis of 2008 are in the process of recovering, but in an embryonic, limited, slow and above all partial manner, since unemployment is still very high in almost all countries. The level of global production has reached the dimensions of before the crisis, in good part due to the growth of the emerging economies.

The pressure of the high external debt is one of the most serious consequences of the crisis of 2008 and could become one of the triggers of a new economic crisis. According to the data of the World Bank, the US debt exceeds 110% of its GDP, which was $16 billion in 2013. England has a debt 5 times greater than its GDP. In France the external debt is more than twice the GDP. In Germany, the external debt is almost twice the GDP. Although the debt of the dependent countries has not reached the dimensions of the 1970s, it is steadily growing. In fact, only China has recorded a GDP that is significantly greater than its external debt.

The ability of the countries to pay this debt is seriously threatened. The US had to resort to a political measure, to raise the limit of its borrowing capacity by a decision of Congress. Argentina has just been declared in default by the holders of its debt. The initial recovery of the economies of Greece, Spain, Portugal and Hungary relies on the injection of large sums of capital from banks at high interest rates and shorter terms, on a new and higher debt that makes them very vulnerable. Italy’s economy has been in the red.

Since 2012, the slowing of the growth of the Chinese economy has been clear, as well as the difficulties of India and the decline of the economies of Turkey and South Africa.

In Latin America we are experience a slowdown in economic growth. Brazil has been declared in technical recession, while in the first quarter of this year 2014 Argentina had a growth of 0.9%

How is this new economic crisis expressed? Where will the financial bubble burst? Will regional crises occur? Will there be a crisis of major proportions as in 2008? These are various questions that cannot yet be answered completely.

The ills of the capitalist world continue to punish the workers and peoples. According to the International Labor Organization, absolute unemployment affects more than 202 million people; unemployment is noticeably most evident in Spain and Greece where it exceeds 25%, and for the youth, including university graduates, the rates exceed 50%. South Africa has an unemployment rate above 26%.

The poverty rates for 2013 show that there are 1,000 million people subsisting on less than $1 per day; 2,800 million people had incomes below $2 a day; 448 million children were underweight, while 30,000 children under one year die every day from diseases that can be cured.

In various countries in every continent the emergence and development of fascism has become evident as an expression of the interests of the arms manufacturers, of the ultra-reactionary sectors of the ruling classes, as a manifestation of racist and xenophobic groups who lash out against immigrants, the national minorities, against the workers, the trade unionists and revolutionaries. In some countries these fascist manifestations are expressed in the electoral political struggle and they achieve significant results that make them a threat to democracy and freedom. Fascism is a reactionary, anti-communist, anti-people and anti-democratic policy of a section of the bourgeoisie; in some cases it is expressed in the repressive practices of reactionary governments. For the proletarian revolutionaries, the unmasking, denunciation and fight against the expressions of fascism are the inescapable responsibility in the process of organizing the revolutionary struggle for socialism.

An unprecedented wave of migration has struck the world today; millions of workers from the dependent countries, particularly from the poorest due to the imperialist plunder, are seeking to reach the developed capitalist countries by any means; they are seeking jobs and opportunities, they had to face incredible obstacles, long treks, unsafe boats with which they defy the fury of nature, they go through sewers and turbulent rivers, trying to climb the walls put in place to prevent their arrival. Those who manage to arrive at the country of their destination are subjected to discrimination, low wages, the worst living conditions, as well as being victims of the reactionary policies, of racial hatred and xenophobia.

The inter-imperialist contention is intensifying

The US remains the largest international economic power, the main military power. It possesses the leading technology in important areas of the economy, mainly in the production of shale oil that is permitting a significant reduction in energy costs. Despite these circumstances the US is losing the hegemony that it held in the economic, political and military spheres, it now faces greater competition from the other imperialist monopolies and countries. Its traditional allies, England and other countries of the European Union, at the same time as in certain circumstances they agree on common actions, they are refusing to endorse some of the warmongering actions such as the decision to bomb Syria and they are openly contending for their interests, especially in Eastern Europe, Africa and Asia, also penetrating Latin America. Within the European Union itself the actions of Germany to dominate that bloc are visible, as are the policies of France and England to contend for those positions. Further, the strengthening of Russia’s economy and particularly its great military might make it a stronger power with a significant nuclear arsenal, which seeks to participate for its own interests in a new redivision of the world. The economic growth of China, its position as the second largest economy in the world, make it an economic, financial and commercial rival which is affecting all countries and continents, with the decline of US power and that of the other imperialist countries; it is part of the club of nuclear powers and has the largest army on earth. India is developing its growth to a great degree and is taking part in the redivision, even though much of its economy represents direct investments by the international monopolies. In addition, new countries are emerging in the international arena in the economic field, such as Brazil, South Africa, Turkey, Indonesia and Mexico, seeking to take part in the club of the powerful.

Clearly the unipolar world does not exist; the participation of various economic powers, of old and new imperialist countries has been developing since the end of the last century. They all are taking part in a world divided among the old imperialist countries, they are demanding their place in the new international situation, they are ready to contend for this position.

The rapacious and warlike nature of the imperialist countries is clearly seen in the military intervention, bombardments, invasions and deployment of occupation troops where their interests are threatened. The US and its allies continue to occupy Afghanistan, they are present in Iraq even though they have officially withdrawn, they carry out military actions in Pakistan, they maintain troops in Haiti, they intervene to support reaction and the oligarchies in Venezuela and they continue the economic blockade against Cuba. France invades Mali; it intervenes in Ivory Coast and the Central African Republic. Russia is forcefully annexing several republics and regions that were in the territory of the former USSR.

In 2014, Israel supported by the US and the Europeans carried out a brutal military aggression against Palestine, it unleashed intense air bombardments and repeated barrages of missiles, a military offensive with tanks and troops on the Gaza Strip, killing more than 2,000 civilians, children and the elderly. Presently there is a truce and some agreements that validate Palestinian demands to a certain extent; but they are not a definitive solution for the sovereign and popular future of the Palestinian people. The Israeli Zionists, despite having been unmasked and condemned by the whole world as genocidal terrorists, have not given up their desire to eliminate Palestine as a State and depopulate its territories in order to occupy them.

The inter-imperialist contradictions cause the assertion of the former economic blocs, NAFTA composed of the US, Canada and Mexico, the FTA between the US and the European Union, the European Union, Mercosur, the Asia Pacific bloc and the strengthening of the new groupings such as BRICS, the Shanghai Cooperation Organization and the Pacific Alliance.

We are experiencing an intense contention for the markets of the imperialist countries themselves as well as for the dependent states of Asia, Africa and Latin America. China is particularly aggressive in placing its commodities in all countries; it is currently the economy with the third greatest direct investments in other countries.

Another area of inter-imperialist contention is seen in the race for mining and oil concessions, to buy large tracts of agricultural land by the transnational companies and the States themselves. The development of the productive forces, the progress of science and technology demand large quantities of raw materials, sources of energy and food that must be found mainly in the dependent countries.

The economic, financial and commercial confrontation rests on the policy of military deterrence and, going beyond threats, we are witnessing localized armed clashes to seize and/or maintain control of countries rich in oil and other natural resources, as well as to seize strategic spaces for the control of regions and/or to threaten, intimidate and blackmail the rival imperialist powers, countries labeled as “terrorists” or which “support terrorism.”

The alleged fight against terrorism has become the “reason,” the pretext for the imperialist countries and the reactionary governments to justify police policies of control of their own populations and those of other countries, to discriminate and repress immigrant groups of Arabs and those from other countries whom they classify as terrorists or “financiers of terrorists,” as revolutionaries and as social fighters.

There are various localized military conflicts in which the various imperialist countries intervene directly for their own interests.

In Syria a reactionary civil war is continuing to develop between the most reactionary forces supported by the US and Western European imperialists, the Arab governments that seek to establish a puppet regime that can continue the encirclement of Iran; and, on the other hand, the government of Al Assad that is the continuation of an anti-popular regime established several decades ago that currently receives military support from Russia.

The policies of imperialist intervention towards the Middle East are provoking religious-confessional conflicts. One part of this situation is the aggression of the armed groups of Al Qaeda-Radical Islamists, especially the Islamic State, which is increasing. These groups aim at different nationalities and religions in the region, mainly Kurds, Yazidis, the Christian minority and Alawis.

In these circumstances there is a battle and polarization between the imperialists and reactionaries in the region on one hand, and the power and actions of the Kurds on the other hand. The Kurdish nation is one of the oldest in the Middle East, it is divided up among four countries and in the midst of the confrontation it has progressed towards cementing its identity, to place itself as the alternative of self-determination despite the pressure of the imperialists and their reactionary allies.

The outrage that is developing in all parts of the world against the siege of Kobane* by the Islamic State is being expressed in high levels of solidarity that encourage the struggle of the Kurds and has forced the US, other imperialist countries and various Arab states to create a Coalition against the Islamic State.

* Kobane is a small town located in one of the Democratic Cantons of Rojava in Syrian Kurdistan.

The resistance of the democratic cantons of the Kurds against the brutality of the Islamic State and the reactionary forces of the region that support it is encouraging the hope and pointing the way for the struggle of all the oppressed peoples of the Middle East.

Ukraine is a scene of heavy fighting between government troops under fascist leadership, supported unconditionally by the US and the European Union; and “pro-Russian” sectors of the population that are seeking annexation to Russia, as did the inhabitants of the Crimea. The democratic, patriotic and advanced sectors that are resisting fascism and stand for independence, freedom, democracy and socialism are fighting in very hard and uneven conditions. The soldiers and civilians who are facing each other in combat are Ukrainians but they are mainly led by the expansionist interests of the Western imperialists on the one hand and the geopolitical interests of Russia on the other. That confrontation has led to the imposition of economic sanctions on Russia and the defiant response of the Putin government. This is an open contention to show the world who is who: the Western military force or the military power of Russia.

The arms race is being dangerously revived

According to the Stockholm International Peace Research Institute, SIPRI, military spending has returned to the levels of the Cold War. Data from 2013 show that world spending for military objectives has risen to $3.3 million per minute, $198 million per hour, almost $4,800 million per day.

The US occupies the first place by far with an annual spending of $640,000 million, followed by China with $188,000 million, Russia with $88,000 million, and then Saudi Arabia, France, Britain, Germany and Japan. Note that both Germany and Japan are venturing dangerously into the arms race and have begun sending their troops abroad. Israel and Zionism are the enclave and spearhead of US imperialism to attack Palestine and threaten other nationalist governments in the region; it has one of the largest and best equipped armies in the world.

In general, all countries have joined the arms race, fueling the war industry that is in the hands of the transnational corporations and large state enterprises.

The proliferation of nuclear weapons, the large number of imperialist military bases spread throughout the world, the process of renewal of military arsenals, go beyond the deterrent policy practiced by the great powers. They are preparations for an eventual general conflagration for a new redivision of the world.

Russia and China are seeking to create an imperialist bloc

The expansion of the Chinese economy to all continents, the supply of heavy and light industrial products at competitive prices is flooding the markets of the great majority of countries, including the imperialist and developed capitalist states. The direct investment of Chinese capital for oil exploration, mining, the construction of large public works are in first place in the dependent countries of Asia, Africa and Latin America. The aggressive diplomatic policy and the creation of commercial, economic and military blocs make China the second largest economy, an economic great power and an important military power.

Russia has regained significant levels of its economy and continues to develop its military capacity, today taking second place as a military power. It is rebuilding its geopolitical spheres, yoking several of the former countries of the ex-USSR to its designs. Despite its present difficulties, caused by the fall in oil prices, it has proclaimed its decision to participate in the management of the destinies of the world.

It can be seen that there are significant levels of commercial, economic and military cooperation between China and Russia, who are working together on various commercial and military initiatives. However, it is also clear that there are serious contradictions to be resolved for the eventual formation of an imperialist military bloc.

The BRICS, a new pole in the international economic and commercial confrontation

The coming together of Brazil, Russia, India, China and South Africa to form BRICS began several years ago; it has 3,000 million people who make up 40% of the world’s population, produce 20% of the world’s GDP and in 2014 represent 18% of the world economy.

The BRICS’ summit held in Brazil in 2014, relaunched the international initiative, becoming an economic, financial and commercial bloc to have its own voice in the international arena. It established the BRICS Development Bank and a reserve currency for international transactions in order to compete with the World Bank and the International Monetary Fund. It is seeking to integrate the dependent countries of Asia, Africa and Latin America into its orbit.

In the reformist views that exist in all countries, BRICS is an anti-imperialist bloc that should be supported and on which the peoples and the “progressive governments” should rely. They start from the assumption that Russia and China are a bloc that will hold back the US, that they will side with the interests of peoples, as they supposedly did in Syria; they assume that Brazil has a progressive government and represents the interests of the people of Brazil and Latin America. These ideas are spread among the masses and cause confusion, which it is up to us proletarian revolutionaries to clear up. Moreover, there is no shortage of gullible people who preach that BRICS is a counterweight to the hegemony of the US and its allies that could create a deterrent force internationally.

BRICS is a new economic and commercial bloc, a group of great powers, whose main objectives are to strengthen itself at the expense of the looting of the dependent countries and of the export of capital. On the other hand, as the events unfolding in Ukraine show, BRICS has major fissures and contradictions within it. Russia has not received the full backing that it demands in its contention with the US and the European Union. China, at the same time as it contends with the US and the imperialist countries of the European Union, reaches economic and trade agreements with them. Among China, India and Russia, at the same time as they sign agreements, have important economic and geopolitical contradictions.

Various cultural and religious conflicts are exacerbated

In the Middle East for several decades, religious groups and sects are emerging that wave the banner of Islam in opposition to the Western and Christian world, that define their differences among various Muslim sects by means of a “holy war.” These groups are supported and financed by economic groups in the Arab countries and by certain governments. Al Qaeda, which was initiated, trained and financed by the CIA, played a dirty role in torpedoing the progressive national struggle of the Arab peoples and imposing terror. Presently the Islamic State, which was initially part of Al Qaeda, is militarily occupying much of Syria and Iraq and has proclaimed a Caliphate; it is powerfully armed and challenges other Islamic beliefs and other religions from Sunni positions, committing all kinds of crimes and atrocities. The actions of the Islamic State are serving as a pretext for a new intervention by the US-led imperialist coalition that involves certain Arab states that propose to eliminate it with the scorched earth policy, bombing Iraq and Syria. In Africa the organization Boko Haram is proclaiming Islamic fundamentalism, it is active in Nigeria, proclaiming the formation of a Muslim State and killing civilians and kidnapping hundreds of girls.

In sub-Saharan Africa ethnic and religious conflicts are breaking out between ethnic and religious groups, using weapons provided by the imperialist countries; many of these conflicts are fueled by the inter-imperialist contention over natural resources, oil and coltan.

The ethnic, cultural and religious feelings that serve as instruments for the formation of groups of fanatics are fueled by the imperialist countries and the ruling classes to divert the struggle of the peoples for national and social liberation.

The struggle of the working class and peoples

In no country on earth is there social peace; everywhere the working class confronts the exploitation and oppression of the capitalists for their interests.

Those expressions of dissatisfaction by the working class are developing unevenly, they pass through the stages of the debate over the defense of their interests and how to win them, from the sit-down strikes, company strikes and the general strike, from street demonstrations, the formation of initiatives of coordination and of trade union struggle, for the building of political platforms and the participation in the electoral struggle.

This year, the event of major importance was led by the workers, peoples and youth of Burkina Faso who, through massive and heroic demonstrations, overthrew the dictatorship of Campaore, who had established a repressive, reactionary and pro-imperialist regime for more than thirty years. In this process, the Revolutionary Communist Party of Upper Volta, our fraternal party of the ICMLPO, has played an outstanding role in the organization and development of the struggle to come from behind and reached its climax and victory in late October. The local ruling classes, the French and Yankee imperialists and the armed forces at their service acted to divert the course of the struggle towards the recomposition of imperialist domination and of local domination through elections and the renovation of the institutions. The workers, peoples, youth and proletarian revolutionaries are persisting in the decision to continue fighting for the final objectives of emancipation and are joining in the new ideological and political battles with renewed energy.

In Mexico large demonstrations of the youth, workers and the population have been held rejecting the brutal action of the official repressive forces, the armed forces and the police, of paramilitary groups in the murder of several youths and the disappearance of 43 students from the school for teachers. These struggles are putting pressure on the bourgeois institutions; they are becoming political expressions that demand the resignation of the government. In these days our fraternal party, the Communist Party of Mexico (Marxist-Leninist) is valiantly fulfilling its responsibilities, it is present together with the masses in the battles being waged. The brutalities of the reactionary regime of Mexico are receiving the condemnation of the workers and peoples of the world and of democratic public opinion; the popular movement is receiving the encouragement and solidarity of the social fighters and revolutionaries.

Tunisia has been reviving the ideals of the Arab Spring, of the struggle for freedom, democracy and social change. The workers, people and youth are developing new struggles to put into effect the gains of the popular uprising; they are fighting under all circumstances and using all forms of struggle; they are advancing in building the unity of the workers, peoples and youth, of the dissatisfied ones, of those who want change, in the Popular Front. In the last legislative elections the Popular Front achieved important results; it elected 15 deputies and in the presidential elections comrade Hamma Hamammi won third place among 27 candidates through hard struggle. In Tunisia the struggle for social and national liberation are still being raised; we communists have one of the boldest detachments.

The large demonstrations of workers in Spain, Greece, Italy and other European countries continue to show an important revival and an anti-capitalist orientation of the workers’ movement. In South Africa strikes by miners took place over several months. In China the strikes of the workers are numerous and combative.

The working classes and peoples are fighting for civil liberties and democracy, they are actively taking part in the political struggle, they are channeling popular opposition to the reactionary and sellout governments. The youth, particularly the secondary and university students, are taking part in the fighting in defense of public education, in opposition to the anti-popular measures of the governments of the bourgeoisie; they form a tributary to the struggle against imperialism, in defense of national sovereignty.

Reformism is no real alternative for social and national liberation.

A sector of the capitalist class, including some liberal bourgeois governments, social-democracy, the revisionists and opportunists continue to develop the politics of class conciliation, proposals for agreements among the workers, employers and governments to address the crisis, for the country’s growth, for social welfare.

These policies and practices have caused serious damage to the trade-union organization and the workers’ movement, it has allowed them to prop up the labor aristocracy, to promote the trade union bureaucracy that ties the hands of the unions, demobilizes the workers and diverts them from their class objectives.

In opposition to the leadership of the large unions, important sectors of the workers are seeking alternatives, they are forming coordinating collectives to fight for their rights, they are promoting union democracy and, in some countries they are forcing the bureaucracy to call strikes and demonstrations. Within the working class a sense of unity and struggle is being strengthened to oppose exploitation and oppression, to fight for their rights and new gains.

The struggles against the reactionary and neoliberal regimes in various countries and continents that have unfolded in the recent past have done away with several of these governments and have established through elections some governments that called themselves “progressive.”

Soon, these supposed alternative governments showed their class nature; they were expressions of another sector of the ruling classes, they used some reformist measures and especially welfare practices to deceive the working masses, to form a social base of political support, to promote ideological confusion that allowed them to fulfill the purpose of preserving the system of private property.

These various expressions of reformism that occurred in various countries and continents, mainly in Latin America, are becoming worn out; they were not able to confront the great problems of society or to meet the basic demands of the working masses; they are especially melting under the consciousness of the working class and peoples.

The proponents of reformism as a means of overcoming inequities are propagating the idea that putting an end to these processes will send us back to the past, to the rule of the old parties. That is a false premise that ignores the objective fact that those governments and programs represent the same old capitalism, a capitalism that actually does not remain static, that is always developing, always to the benefit of the propertied classes.

In Venezuela a particular process is unfolding: The economic and social measures of the government of Hugo Chavez were always significant in favor of the popular sectors; its patriotic and anti-US imperialist positions were consistent; it was the only government that relied on the mobilization of the masses. After the passing of Chavez, his successor is facing an aggressive campaign of destabilization and street fighting promoted by reaction with the direct support of the US. These actions are based on the social dissatisfaction due to the scarcity of food and other basic necessities, an inflation rate of over 60%, successive currency devaluations, the insecurity caused by an increase in crime. In Venezuela a tough battle is being waged between the left and right, between the patriots and sellouts, between revolutionary positions and reaction. Obviously, in Venezuela, there has not been a revolution despite the proclamations of the supporters of Chavez, nor is socialism being built. But there is a patriotic, democratic and revolutionary process that is confronting a fierce onslaught from reaction. The situation is proving that reformism, despite having assumed radical positions, is not the road to the revolution. It is not possible to predict the outcome of this confrontation in the short term. In any case the workers, people and youth of Venezuela are learning to fight in the midst high levels of struggles; they are developing an understanding of their role in the process of social transformation. The revolutionary party of the proletariat, the Marxist-Leninist Communist Party of Venezuela, has before it great challenges and responsibilities.

The thesis that there are warmongering and aggressive imperialist countries and progressive imperialist countries that help the peoples and can be relied on for the national liberation process is false. With these ideas the “progressive governments” hide the links to a new dependence.

The class struggle continues to be the motive force of history

The constant development of the means of production caused by the extraordinary development of science and technology and the incorporation of millions of human beings to industrial production is generating huge profits and a more pronounced concentration of wealth in the coffers of the great international monopolies and the imperialist countries. Despite new inventions and discoveries, information technology, cybernetics, automation and robotics, the size of this accumulation is primarily a result of the labor power of millions of men and women who work in the factories established in every country of the earth.

The expansion of capital and the accumulation and concentration of wealth are the result, in the first place, of the appropriation of surplus value by the capitalist class. Without the existence and labor of the working class there would not be any wealth, the world of capital would not be possible.

The working class today is at the center of the epoch; it is the creator of wealth, the basic force of society not only because of its role in production but also because of its numbers. As never before, billions of workers form part of the working class, industrial production energizes economic development.

The increasing socialization of production and the concentration of wealth are the pillars of the capitalist-imperialist system; two fundamental classes of the epoch confront each other, the workers and the capitalists, who have built up a world of exploitation and oppression for millions of human beings in the interest of a handful of bosses, a circumstance of social shame and inequality, a society in decay, a world that is irretrievably heading to extinction, a situation that will be negated by the advent of a new world, the world of the workers, socialism.

We Marxist-Leninist communists will fulfill our responsibilities

The responsibility of the communists to support the revolutionary new as opposed to the reactionary old, to promote the advanced positions, to fight for the immediate needs of the workers, demands the continuation of the struggle to unmask the revisionist and opportunist positions within the workers and popular movement.

We Marxist-Leninists are standard bearers of the unity of the working class in each country and on an international scale; we are working for the building of a great front that would include the workers of the city and the countryside, the working class and the peasantry, the oppressed peoples and nations, the peoples and nationalities who are oppressed and discriminated against within the capitalist states; that includes the working youth, students and intellectuals.

For us it is vital to perfect our policies and activities to win over for the economic and political struggle, important sectors of the youth who are suffering from the impact of imperialist plunder and capitalist exploitation. The awareness and potential of youth is in contention: one or another faction of the ruling classes is taking advantage of this, either anarchist positions will seduce them or we communists will win them over to involve them in the process of social and national liberation, in the struggle for emancipation.

We Marxist-Leninist communists have been fulfilling our responsibilities in our countries. We are in the front ranks of the fights of the working class and youth, we represent the interests of the proletariat and we must strive to give them direction and guidance, to convert them in the stages of the process of the accumulation of revolutionary forces. The duty of the proletarian revolutionaries to fight against imperialism and the bourgeoisie, for the revolution and socialism, imposes on us the responsibility to deal with the various situations in which the revolutionary struggle unfolds, to fight against fascism and repression, against demagogy and reformism, to involve ourselves actively in the problems of society from the positions of the working class, to seek the formation of the popular fronts, to participate actively in the day-to-day situation without losing sight of the strategic objective of the struggle for power.

ICMLPO, Turkey, November 2014

Source

Are Popular Fronts Necessary Today?

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Raul Marcos
Member of the Communist Party of Spain ML
August 2014

The answer is a resounding YES. They are necessary and indispensable given the condition of oppression and exploitation that are worsening, and from which the people are suffering. The proletariat, with its party at the forefront, should be at the head of the popular masses, to organize and lead their struggles. It is not an easy task, but all difficulties can be overcome. For that to happen, it is necessary to work to link up in a broad manner with the advanced masses, to win their recognition.

The Congress of the Communist International (1921) stated that “The United Front [of the proletariat] is the unity […] of the workers who are decisive in the fight against capitalism”. Dimitrov insisted that the Popular Front, given the circumstances that existed in the world, was an urgent necessity and that its essential basis must be the United Front of the Proletariat.

The fundamental contradictions of the period in which we live and struggle, are perfectly defined: The contradiction between the proletariat and the bourgeoisie; the contradiction between capitalism and socialism; the contradiction between oppressed peoples and nations on the one hand and imperialism on the other; the contradiction among imperialist and financial powers. The last contradiction manifests itself in the local wars, the aggressions against the peoples, the contention for geostrategic zones and the exploitation of the neo-colonies, the manipulation of the democratic and patriotic sentiments of the peoples. It is a rapidly growing contradiction.

We live in the period which Lenin defined, but with new characteristics and forms. Presently, we see the expression of a tendency towards fascism as organized groups of neo-Nazis carry out actions in various countries, and this should concern us. In many cases they are protected by the governments (such is the case in Greece, Hungary, Spain, etc.). Power and state apparatus, with some exceptions, are in the hands of parties and governments which are reactionary and anti-popular. The big powers and their puppet governments speak of democracy, of human rights, of peace among the people… while they are savagely subjugating and exploiting the people, who are oppressed, in many cases through force of arms.

This is a general situation, not in this or that country: in different degrees and different forms and intensity; it is a general tendency. The communist parties must daily confront situations of repression, of struggles for social conquests, against laws which encroach upon and suppress labor and social rights which had been achieved through many decades of struggle.

In his report to the VII Congress of the Communist International (1935), and with a similar situation at hand, Dimitrov focused on the importance of creating popular fronts against the conditions which arose with the growth of Nazi-fascism (Italy, Germany, Portugal, Japan, etc.). Despite the years which have passed and the events that have taken place, the report is still very relevant and can serve as a general orientation to the parties. It is evident that the present circumstances are not the same as the 1930s. The context in which we live is very different from that period, and it is enough to recall the dismemberment of the Soviet Union, the opportunist degeneration of many of the parties at that time, and that today, with some rare exceptions, the Marxist-Leninist parties are very weak, without much influence upon the broad masses.

The importance of Dimitrov’s writing is undeniable, yet we should keep in mind that the international situation is not the same, although there are problems of a similar nature (which are reflected in the fundamental contradictions), and it is also necessary to act according to the particular circumstances of each country and party. The work of a front cannot be carried out in the same manner in every country, since we have to take into consideration the inevitable unequal development, of the political forces as well as the Party and of society itself. Its undeniable that we cannot compare the situation which Ecuador is living under (in all of the aspects pointed out), with that of Germany, for example, in Spain, Denmark, Turkey, Morocco, France, Venezuela, etc. etc., there are different conditions and therefore, tactically there will be differences, secondary differences, but in the end differences.

Defending the importance and the present aspects of Dimitrov’s speech should not lead us to apply every detail, each and every aspect which his text deals with. To study, analyze and discuss the writings of great communist leaders, and Dimitrov is one of them, should not lead us to convert them into catechism, infallible doctrines, something which is opposed to the Marxist Leninist dialectic.

Each of our parties should consider these questions. There are no prefabricated answers. Only the dialectic examination, that is of the moment which can change from one day to the other, without separating ourselves from tomorrow’s strategy, whose course cannot be predicted or defined, will allow us to take up tactical positions and measures to confront and attempt to solve the problems.

The important thing is to keep in mind at all times the reality in which our parties live and evolve, work and struggle. Therefore, we must keep in mind a decisive fact: In almost all countries, with different levels of development, the working class is the most revolutionary and its advanced members are at the head of the struggles for justice. But the working class is not the only class exploited by capitalism. There are sectors of the small and middle bourgeoisie which also suffer oppression. And although their mentality is not that of the conscious proletariat, we should take those sectors into consideration and try to get closer to them. We should keep in mind that if the working class and its party do not try to unite the other working classes, including certain patriotic and democratic sectors of the middle classes, these could be manipulated by some faction of the bourgeoisie. Undoubtedly, the working class must win over, in the ideological and political combat, the role of vanguard of all those exploited and oppressed sectors and defend their demands.

This could be the basis for forging tactical, momentary alliances. But we should not confuse or counterpoise those tactical alliances of a given moment, to the strategic alliances. That is, we do not subordinate strategic alliances to questions of the moment, circumstantial ones, but neither do we subordinate tactical alliances to the establishment of possible strategic alliances, so long as this does not imply abandoning essential questions. To be clearer: we should be vigilant so as not to confuse with the Popular Front tactical, partial, or momentary alliances, in many cases local ones or of a city, region or province, including agreements with special sectors, but which cannot include the  most advanced general sectors.

The Popular Front should respond to the general needs of the struggle, to political questions which are proposed, and above all, to mobilize the advanced masses to incorporate them into action.

The working class, theoretically the proletariat, should be the principal force of the Popular Front. This means that in practice it should also be the leading force. We should keep in mind that theory without practice is just empty words, and that practice without theory is like blindly striking out blows.

Given the broad political nature of the forces which could become part of the Front, the Party should strive to be at the head, be the leader (in relative terms depending on the circumstances) so that the proletariat can exercise its influence as the main force. That leading role is not achieved by force of will, or by a decree; it must be won in daily practice, by the clarity of our political proposals, with the respectful and faithful application of agreements.

If the party does not fulfill that role, in the long run it will tail behind the petit bourgeoisie and that would be a grave error. Here we should keep in mind the “Law of the unity and struggle of opposites”.

This leads us to the question of the ideological independence of the Party. A Popular Front, built upon minimum agreements (depending on the circumstances), cannot take up all our proposals. But that should not lead us to renounce our political and ideological positions. Within the framework of the tasks of the Front, communists are, and will be, very careful at the time of fulfilling our agreements even if these are not exactly what we would have preferred.

The policy of unity in any alliance, and also in the Popular Front, should not lead us to forget the class struggle. In fact, the alliances, agreements or tactical compromises with other political forces should help us to reinforce the strength of the Party and not the other way around. That is not always understood, so that if the Party, communists, become diluted as a result of such an alliance, that would result in a grave weakening or possibly the disappearance of the Party.

With much ability and tact, and without high-handedness or strange maneuvers, the Party should, as Lenin stated, lead everything. This forces us to carry out a clear and sincere work with the forces which make up the Front, to respect and fulfill the agreed-upon commitments and programs, but without forgetting that:

”…only the political party of the working class, i.e., the Communist Party, is capable of uniting, training and organizing a vanguard of the proletariat and of the whole mass of the working people that alone will be capable of withstanding the inevitable petty-bourgeois vacillations of this mass (Lenin, Preliminary Draft Resolution of the Tenth Congress of the R.C.P. on the Syndicalist and Anarchist Deviation in Our Party. Our emphasis.)

We should be with the advanced masses, becoming more and better, to mobilize within the Popular Front and in all the fronts created which include the masses. That requires defeating the relative weakness of the parties, (without forgetting the inevitability of unequal development), since without a strong party we can do very little; and it is also necessary to be conscious of the fact that regardless how big and powerful a Party may be, we will always be a minority in society:

“…We communists are but a drop in the ocean, a drop in the ocean of the people”, but “without a party of the proletariat we cannot even consider the defeat of imperialism, the conquest of the dictatorship of proletariat…” and also the Party “is the vanguard of a class and its duty is to guide the masses, and not to reflect the average mental state of the masses,” Lenin sharply stated.

For communists it is of prime importance to carry out a constant work face-to-face with the masses. But this must be well planned and we should not speak of the masses in a superficial way, without being precise: we should lead the advanced masses and keep in mind that there are various levels of understanding among them regarding the struggle. Dimitrov said that Sectarianism finds expression particularly in overestimating the revolutionization of the masses…” and he quoted Lenin, “…we must not regard that which is obsolete for us, as obsolete for the class, as obsolete for the masses.”

Lenin, like Stalin, Dimitrov, the great leaders, were constantly concerned about the work towards the masses. Lenin specified and warned:

There is nothing more warranted than the urging of attention to the constant, imperative necessity of deepening and broadening, broadening and deepening, our influence on the masses, our strictly Marxist propaganda and agitation, our ever-closer connection with the economic struggle of the working class, etc. Yet, because such urging is at all times warranted, under all conditions and in all situations, it must not be turned into special slogans, nor should it justify attempts to build upon it a special trend in Social- Democracy. A border-line exists here; to exceed the bounds is to turn this indisputably legitimate urging into a narrowing of the aims and the scope of the movement, into a doctrinaire blindness to the vital and cardinal political tasks of the moment.

But for the very reason that the work of intensifying and broadening our influence on the masses is always necessary, after each victory as after each defeat, in times of political quiescence as in the stormiest periods of revolution, we should  not turn the emphasis upon this work into a special slogan or build upon it any special trend if we do not wish to court the risk of descending to demagogy and degrading the aims of the advanced and only truly revolutionary class. (On Confounding Politics with Pedagogics, 1905)

To overestimate the role of the masses is as dangerous as to underestimate it, since both errors distort the role of the Communist Party. This also has to do with the Popular Front since its work is oriented precisely towards the popular masses. One of the conditions for considering an alliance as a Popular Front is that it include, as a minimum, sectors of the exploited and oppressed classes whether they are organized or unorganized.

It is necessary to pay attention, in all our activity, the Leninist Communist Party, leader of the proletariat, of the advanced sectors of the working class, so as not to confuse it with the “mass party” which is amorphous and includes the revisionists and right-wingers of every type. There exists a line of demarcation which must not be underestimated. For communists, what we define as “mass line” is to implement our politics and proposals in a decisive and capable manner outside of the Party. We should not limit ourselves just to our own members and intimate friends.

It is important to have a clear understanding of the lines of demarcation between Marxist-Leninists and opportunists, Khrushchevites, Maoists, including those who preach socialism of the 21st century. Does this mean that we should not have agreements, compromises, and unity pacts with all those who do not share our principles? Clearly not! If we only unite with those who share our ideas and principles, we would not be talking about alliances, popular fronts, etc.; we would only be talking about unity with communists. And that is a different problem.

Presently, many of our parties have a problem which is a history of weak organizing, which is trying to fulfill the role of leaders. This is not achieved through decrees; there are no magic formulas. It will be achieved, depending upon the circumstances, through our work and dedication. Alliances tactical agreements, etc. with other political forces or groups are proposed to us. We are not in a situation in which we can impose our positions. However, we should not refuse the offer because of that. On the contrary, we should participate loyally and in the discussions present our political proposals; we should discuss and confront opinions and little by little go about winning political and ideological ground.

A very simple question, but one which we do not always keep in mind, is that alliances of broad fronts are not meant to last forever. They must be seen as developing; they are not static alliances; what we propose and approve today as just and valid, can stop being so at another time.

The Popular Front is created depending upon the circumstances and we do not create circumstances; we find ourselves in them and we must take them up, always having in mind the evolution of these circumstances. As Dimitrov warns with a great deal of reason: “…it is particularly dangerous to confuse the wish with fact. We must base ourselves on the facts, on the actual concrete situation.”

The Popular Front is an important task which must be dealt with under all circumstances in which the political struggle is developing; it is not an option, it is a necessary task. To promote it and to advance in completing that task, the revolutionary party of the proletariat must draw up a correct revolutionary policy which takes into consideration the concrete conditions, always keeping in mind the strategic objectives. The application of that policy depends not only on its correctness, but also on the potential of the Party, of its forces. A just and correct revolutionary policy can remain as a proposal if there is not a firm decision to carry it out with the advanced sectors of the masses.

The experience of the international communist movement leads us to seriously consider the danger of deviations which can occur. Generally, the existing opportunism has been, and is, of the right. But we cannot forget that there is also left opportunism; both are particularly harmful to the work of a broad front. It is convenient to remember Marx’s warning in his Critique of the Gotha Program: “no bargaining about principles.”

Right-wing opportunism tends to appear with the following expressions or characteristics: to make concessions of principles in order to make allies; to reduce the level of the struggle for fear of the enemy; to lag behind the level of consciousness of the masses instead of going in front of them; to exaggerate the importance of national or regional particularities without taking into account the general principles; and liberalism in matters of organization, of which the most dangerous is to hide the Party as if it did not exist. We should always keep Lenin in mind: Eenter into agreements to satisfy the practical aims of the movement, but do not allow any bargaining over principle.” (What Is To Be Done?)

Opportunism of the left has the following main characteristics: the false criteria of all or nothing; not knowing how to make the needed concessions and compromises useful for the development of this work; not knowing how to adapt Marxism-Leninism to the particular conditions of the reality in which we live, allowing us to be influenced by the experiences of others, which leads to not know how to adapt or to make mistakes about the level and forms of the struggle and the objective conditions of the masses; in adopting rigid criteria in matters of organizing.

In his Poverty of Philosophy, Marx criticized opportunism. Quoting Juvenal: “Et propter vitam vivendi perdere causas”, in other words, “And for the sake of life to lose the reasons for living!” Let us not forget this old lesson.

Source

Marx and Engels on Islam

Marx and Engels

This article was published by Alliance (Marxist-Leninist) as part of the publication Alliance, issue #51, “Pan-Arabic or Pan-Islamic ‘Socialism.’”

Both Marx and Engels wrote only in passing on Islam. However they provide some insights. Their view can be summarised briefly, in three main points:

(i) That the relationship between Jews and the Arabs (Bedouin) was historically, extremely close, and that the Jews had become separated away from the Arabs over time:

“The supposed genealogy of Noah, Abraham, etc., to be found in Genesis is a fairly accurate enumeration of the Bedouin tribes of the time, according to the degree of their dialectal relationships, etc. As we all know, Bedouin tribes continue to this day to call themselves Beni Saled, Beni Yusuf, etc., i.e. sons of so and so. This nomenclature, which owes its origins to the early patriarchal mode of existence, ultimately leads up to this type of genealogy. The enumeration in Genesis is plus ou moins confirmed by ancient geographers, while more recent travellers have shown that most of the old names still exist, though in dialectally altered form. But from this it emerges that the Jews themselves were no more than a small Bedouin tribe like the others, which was brought into conflict with the other Bedouins by local conditions, agriculture, etc. “

Engels Letter Volume 39: written 1853 (see below for full text).

“It is now quite clear to me that the Jews’ so-called Holy Writ is nothing more than a record of ancient Arab religious and tribal traditions, modified by the Jews’ early separation from their tribally related but nomadic neighbours. The circumstance of Palestine’s being surrounded on the Arabian side by nothing but desert, i.e. the land of the Bedouins, explains its separate development. But the ancient Arabian inscriptions and traditions and the Koran, as well as the ease with which all genealogies, etc., can now be unravelled, show that the main content was Arab, or rather, generally Semitic, as in our case the Edda and the German heroic saga.”

Engels To Marx In London Source: Collected Works Volume 39, p. 325. (see below for full text).

(ii) That Judaism was an early form of Christianity, and it was as an “intermediary,” “covering”  Greek world views –  that allowed it to become a world religion:

“It was only by the intermediary of the monotheistic Jewish religion that – the cultured monotheism of later Greek vulgar philosophy could clothe itself in the religious form in which alone it could grip the masses. But once this intermediary found, it could become a universal religion only in the Greco-Roman world, and that by further development in and merging with the thought material that world had achieved.”

On the History of Early Christianity”; written 1894; Find at: http://www.marxists.org/archive/marx/works/1894/early-christianity/index.htm

(iii) That when looked at superficially, the history of “the East” did appear as one of “religions.”

“So far as religion is concerned, the question may be reduced to a general and hence easily answerable one: Why does the history of the East appear as a history of religions?”

Marx to Engels, Volume 39: 1853. (see below for full text).

These texts also cover the ground of Oriental Despotism.


TEXT 1:

Engels To Marx In London Source: Collected Works; Moscow 1983; Volume 39, p. 325-328.

Written Manchester, before 28 May 1853

Dear Marx,

So the bomb is at long last about to go off, as you will see from the enclosed scrappy proof and Weydemeyer’s letter. Willich’s manner of extricating himself is strange, at any rate; you will undoubtedly be much amused by these lame circumlocutions and the awkward and embarrassed style. The fellow’s been hard hit. But papa Schramm [i.e. Conrad Schramm-original notes by publisher] would seem to have gravely insulted him in Cincinnati; all grist to the mill. One thing we may be sure of is that the only effect of this statement will be to compromise the chivalrous one even more.

So just because the New-Yorker-Criminal Zeitung!!!!! has published attacks upon him, the gallant Willich feels compelled to break his heroic silence.

‘Putting the case at its highest!,’ In Willich’s case bodies do not fall downwards but upwards! Good-bye to gravity! The fellow’s quite mad. The same old tale of  assassination too! We shall now see the aforesaid Schramm leap promptly into the lists, statement in hand [Willich slanderously represented his duel with Schramm in Spetember 1850, as an attempt by Marx and Engels to get rid of him by having him killed].

To put your mind at rest, I can inform you that the Neu-England-Ztg. today advised me of the dispatch of 420 copies of Revelations [Concerning the Communist Trial in Cologne by Marx] to my address, so they may be here tomorrow or, if the parcel didn’t go off by the last steamer, in a week at the most.

The fellows have the effrontery to send me a letter signed semi-anonymously ‘Office of the N.-E.-Z.’ inviting me to contribute. That’s the last straw!

At all events, it’s a good thing that we now possess in the Reform [Die reform was the organ of the American Workers Association consisting mostly of German emigrant workers. Though officially its editor was the petty-bourgeois democrat Kellner, the newspaper’s tendency was determined to a great extent by Wedemeyer, who became the actual editor in the summer of 1853. Under his influence the paper retained its commitment of the working class for some time. It often reprinted Marx’s and Engel’s articles form the New York Daily Tribune. Marx persuaded his associated (Eccarious, Piper and Dronke) to cooperate with Die Reform, which regularly published articles and reports by Cluss and Wedermeyer, some based on materials from Marx’s letters. Towards the end of  its existence, the petty-bourgeois influence of its editor-in-chief, Kellner, became dominant]. an organ in which, if the worst comes to the worst, we can still make ourselves heard in the polemic against Willich and Co. As a result of the rumpus, Kellner is becoming more and more embroiled.

Weydemeyer’s misprint shouldn’t surprise you. After all, you must know that when Weydemeyer does something, it is always ‘similar’ rather than ‘glorious’.

The little fellow is coming here next Sunday. I am curious to see how he is shaping as a clerk in Bradford. At all events the good Buckup seems to be working him very hard.

Yesterday I read the book on Arabian inscriptions which I told you about. The thing is not without interest, repulsive though it is to find the parson and biblical apologist  forever peeping through. His greatest triumph is to show that Gibbon made some mistakes in the field of ancient geography, from which he also concludes that Gibbon’s theology was deplorable. The thing is called The Historical Geography of Arabia, by the Reverend Charles Forster. The best things to emerge from it are:

1. The supposed genealogy of Noah, Abraham, etc., to be found in Genesis is a fairly accurate enumeration of the Bedouin tribes of the time, according to the degree of their dialectal relationships, etc. As we all know, Bedouin tribes continue to this day to call themselves Beni Saled, Beni Yusuf, etc., i.e. sons of so and so. This nomenclature, which owes its origins to the early patriarchal mode of existence, ultimately leads up to this type of genealogy. The enumeration in Genesis is plus ou moins [more or less] confirmed by ancient geographers, while more recent travellers have shown that most of the old names still exist, though in dialectally altered form. But from this it emerges that the Jews themselves were no more than a small Bedouin tribe like the others, which was brought into conflict with the other Bedouins by local conditions, agriculture, etc.

2. As for the great Arab invasion, you will remember our discussion when we concluded that, like the Mongols, the Bedouins carried out periodic invasions and that the Assyrian and Babylonian Empires were founded by Bedouin tribes on the very same spot as, later, the Caliphate of Baghdad. The founders of the Babylonian Empire, the Chaldeans, still exist under the same name, Beni Chaled, and in the same locality. The rapid construction of large cities, such as Nineveh and Babylon, happened in just the same way as the creation in India only 300 years ago of similar giant cities, Agra, Delhi, Lahore, Muttan, by the Afghan and/or Tartar invasions. In this way the Mohammedan invasion loses much of its distinctive character.

3. In the South-West, where the Arabs settled, they appear to have been a civilised people like the Egyptians, Assyrians, etc., as is evident from their buildings. This also explains many things about the Mohammedan invasion. So far as the religious fraud is concerned, the ancient inscriptions in the South, in which the ancient Arab national tradition of monotheism (as with the American Indians) still predominates, a tradition of which the Hebrew is only a small part would seem to indicate that Mohammed’s religious revolution, like every religious movement, was formally a reaction, a would-be return to what was old and simple.

It is now quite clear to me that the Jews’ so-called Holy Writ is nothing more than a record of ancient Arab religious and tribal traditions, modified by the Jews’ early separation from their tribally related but nomadic neighbours. The circumstance of Palestine’s being surrounded on the Arabian side by nothing but desert, i.e. the land of the Bedouins, explains its separate development. But the ancient Arabian inscriptions and traditions and the Koran, as well as the ease with which all genealogies, etc., can now be unravelled, show that the main content was Arab, or rather, generally Semitic, as in our case the Edda [A collection of Scandinavian mythological and heroic saga and lay: two versions dating back to the 13th Cnetury are still extant] and the German heroic saga.

Your
F. E.


TEXT 2:

Marx To Engels. 2 June 1853; Collected Works; Moscow 1983; Volume 39, p. 330-334.

Written 28 Dean Street, Soho.

Dear Frederic,

The first half of the £20 note has turned up. I am writing this before going to the Museum, i.e. at a very early hour.

I would have sent you long ago the enclosed great Willich’s statement to the      Neu-England-Zeitung had I not assumed that you’d had the thing from Weydemeyer. In conception this second statement is pure, genuine Willich. Others write ‘essays’, he writes ‘facts,’ and only if one has been on a ‘personal footing’ with him does the calumny lose its sting. It is the manoeuvre of your petty partisan. He does not answer for his own Hirsch. Rather, he explains to the public Marx’s ‘motives’ for not refuting his Hirsch. And now he has discovered a terrain where he can operate with a measure of virtuosity. And it is with ‘reluctance’ that the noble man reveals the facts to the ‘public.’ Needless to say, he has preferred to whisper them to the philistines in the privacy of the beer-parlour and, for the past three years, to peddle them ‘contraband-wise’ throughout two hemispheres, juvante Kinkelio. Then his manoeuvring to keep the public on tenterhooks. They forget the facts among which he twists and turns and eagerly await the  facts which are to demolish the ‘critical authors.’ And the noble man is ‘distinguished’ withal, as befits a ‘public figure.’ When he does reply, it will not be to Marx’s uncouth ‘agents’ but to the ‘ingenious’ quill-pushers themselves. Finally, he gives the public to understand that what makes his opponents so cocksure is their belief in his ‘decision’ to retire and, with a roll of drums, this important personage proceeds to announce that he has ‘changed’ his mind.

Tout ça nest pas trop mal pour un vieux sous-lieutenant. [Not too bad for an old second lieutenant] But as for the style of statement No. 2 — bad as it is, it is nevertheless apocryphal. Other hands have been at work on it, probably those of Madame Anneke. At all events, the necessary supplement to Tellering’s pamphlet will now be published by Mr Willich and, the dirty business having been once placed before the public, il faut aller jusqu’au bout [It must be taken to its conclusion]. If Weydemeyer, Cluss and Co. operate with skill, they should now be able to put a spoke in Willich’s wheel and ruin the impact and novelty of the surprises he is holding in store for the public. Nous verrons [we shall see].

The praise you accord to my ‘budding’ English, I find most encouraging. What I chiefly lack is first, assurance as to grammar and secondly, skill in using various secondary idioms which alone enable one to write with any pungency. Mr Tribune has given special prominence to a note about my 2nd article on Gladstone’s Budget, drawing the attention of readers to my ‘masterly exposition’ and going on to say that nowhere have they seen ‘a more able criticism,’ and do ‘not expect to see one.’ Well, that is all right. But in the following article it proceeds to make an ass of me by printing under my name a heading of mine which is quite trifling and intentionally so, whereas it appropriates your ‘Swiss’ thing. I shall write and tell Dana that, ‘flattering’ though it may be if they occasionally use my things for a leader, they would oblige me by not putting my name to trifles. I have now sent the jackasses, amongst other things, 2 articles on ‘China’ with reference to England. If you have the time and happen to feel like writing about something — Switzerland, the East, France, England or cotton, or Denmark, say  — you should do so on occasion, for I am now slogging away with an eye to the fellow’s money-bags in order to make good the 3 weeks I have lost. If you send me something from time to time — de omnibus rebus [anything under the sun]— I shall always be able to place it, for as you know, I am the fellows’ ‘maid of all work’, and it’s always easy to relate one thing to another and to every day. All in all.

As regards the Hebrews and Arabs, I found your letter most interesting. It can, by the by, be shown that 1. in the case of all eastern tribes there has been, since the dawn of history, a general relationship between the settlement of one section and the continued nomadism of the others. 2. In Mohammed’s time the trade route from Europe to Asia underwent considerable modification, and the cities of Arabia, which had had a large share of the trade with India, etc., suffered a commercial decline — a fact which at all events contributed to the process. 3. So far as religion is concerned, the question may be reduced to a general and hence easily answerable one: Why does the history of the East appear as a history of religions?

On the subject of the growth of eastern cities one could hardly find anything more brilliant, comprehensive or striking than Voyages contenant la description des états du Grand Mogol, etc. by old Franoçois Bernier (for 9 years Aurangzeb’s physician). He provides in addition a very nice account of military organisation and the manner in which these large armies fed themselves, etc. Concerning both these, he remarks inter alia [Original is in French- translated by publishers]:

“The main body consists of cavalry, the infantry not being so numerous as is commonly supposed unless all those serving-people and bazaar or market folk who follow the army are taken for true warriors; for, if such were the case, there would, I think, be good reason to put at 2 to 300,000 men the strength of that army alone that is with the king, and sometimes even more, as, for example, when it is known that he will be long absent from the capital city; which would not, indeed, seem so very surprising to anyone familiar with all the strange impedimenta of tents, kitchen, clothing, furniture, and even women quite often, and, consequently, elephants, camels, oxen, horses, porters, foragers, sutlers, merchants of all kinds and servants who follow in the wake of these armies, nor to anyone familiar with the conditions and government peculiar to the country, namely that the king is the sole and unique proprietor of all the lands in the kingdom, whence it necessarily follows that every capital city, such as Delhi or Agra, fixes almost wholly on the militia and is therefore obliged to follow the king whenever he goes campaigning for a time, these cities neither being, nor indeed able to be, in any respect a Paris, but being really nothing but an army encampment rather better and more commodiously situated than if it were in the open country.” [in French, with Marx’s italics]

In reference to the Grand Mogul’s march on Kashmir, with an army 400,000 strong, he writes:

“How and upon what so great an army can subsist in the field, or so large a concourse of men and animals, is difficult to conceive. To that end one can only surmise, and such is indeed the case, that the Indians are very sober and very simple in what they eat and that, of this great number of horsemen, not one tenth, nay, not even one twentieth, eats meat during the march; provided they have their khichri, or mess of rice and other vegetables, whereon they pour brown butter when cooked, they are content. It should also be known that camels are extremely resistant to work, hunger and thirst, live on very little and eat anything and that, as soon as the army reaches camp, the camel-drivers lead them out to graze in the countryside, where they eat everything that comes their way; further, that the same merchants that keep the bazaars in Delhi are obliged to keep them in the field also, likewise the lesser merchants, etc. … finally, concerning forage, all these poor people go roving in every direction to the villages to buy the same and to earn something there, and that their chief and habitual recourse is to scratch up whole stretches of country with a kind of trowel, pounding and washing the little herbs thus scratched up, and taking them to the army for sale…”

Bernier rightly sees all the manifestations of the East — he mentions Turkey, Persia and Hindustan — as having a common basis, namely the absence of private landed property. This is the real clef, even to the eastern heaven.

It would seem to be no go with Borchardt; nevertheless I think the fellow might be prepared to try and obtain recommendations for Lupus from Steinthal, etc., to London merchants. So much, at least, you could compel him to do, and it would mean a great deal to Lupus.

What do you think about the failure of the hudibrastic Rodolpho [An allusion to Ralpho – a charactar in Samuel Butler’s satirical peom Hudibras] Gladstone’s ‘Financial Scheme for reducing the national Debt’?

The day before yesterday the Journal des Débats revealed the true secret of Russia’s impudence. The Continent, it says, must either expose its independence to danger from Russia, or it must expose itself to war, and that is ‘la revolution sociale’. What the wretched Débats forgets, however, is that Russia is no less afraid of revolution than Mr Bertin, and that the whole question now is who can most convincingly simulate ‘non-fear’. But England and France — the official ones — are so abject that Nicholas, if he sticks to his guns, will be able to do what he likes.

Vale faveque [Good-bye & farewell].

C. M.

Have written to Lassalle, who will probably be ready to take receipt of a few 100 copies of the pamphlet and distribute them in Germany. The question now is how are we to get them across? When I was in Manchester Charles suggested it might be done by including them in a consignment of merchandise. You might ask him about this again.

P.S. There’s been a delay over the posting of this letter and so I can include an acknowledgment of the parcel of books and the other half of the note.


TEXT 3:

Engels to Marx. Collected Works; Moscow 1983; Volume 39, p. 335-342.

Written 6 June 1853; Manchester.

Dear Marx,

I had intended to write to you by the first post today, but was detained at the office until 8 o’clock. You will have received both Weydemeyer’s and Cluss’ anti-Willich statements in the Criminal Zeitung, i.e. direct from America. If not, write to me at once. As usual, papa Weydemeyer is too long-winded, very seldom makes a point, then promptly blunts it with his style, and unfolds his well-known lack of verve with rare composure. Nevertheless, the man has done his best, the story about Hentze, the ‘comrade-in-arms’, and the influence of others on Hirsch’s pen is nicely fashioned; his incredible style and his composure, regarded over there as impassibility, will appeal to the philistines, and his performance can, on the whole, be regarded as satisfactory. Cluss’ statement, on the other hand, pleases me enormously. In every line we hear the chuckle of l’homme suprieur who, through ‘personal contact’ with Willich, has, as it were, become physically conscious of his superiority. For lightness of style, this surpasses everything that Cluss has ever written. Never a clumsy turn of phrase, not a trace of gêne [constraint] or embarrassment. How well it becomes him thus to ape the worthy citizen of benevolent mien who nevertheless betrays the cloven hoof at every turn. How splendid, the sentence about ‘revolutionary agencies’ being ‘a swindle’ off which, according to Willich, he lives. The chivalrous one will have been surprised to find among the uncouth agents, a fellow who is so dashing, so adroit, so aggressive by nature and yet so unassumingly noble in his bearing, and who returns thrust for thrust a tempo. So subtly — far more subtly and deftly than himself. If only Willich had the discernment to discover this! But irritation and due reflection will, I trust, give him a little more insight.

It is obvious that we shall have to see this dirty business through to the bitter end. The more resolutely we tackle it the better. You’ll find, by the way, that it won’t be so bad after all. The chivalrous one has promised vastly more than he can fulfill. We shall hear of assassination attempts, etc., the Schramm affair will be glamorously tricked out, and such chimeras will be evoked as will cause us to stare at one another in amazement, not having the faintest idea what the man is actually talking about; at worst he will tell the story about Marx and Engels arriving drunk one evening at Great Windmill Street (vide Kinkel in Cincinnati, coram Huzelio) [In Huzels presence]. If he goes as far as that, I shall tell the scandal-loving American public what the Besançon Company used to talk about when Willich and the formosus [comely] pastor Corydon Rauf [Office Rau is compared to shepherd Corydon, a character in pastoral poems who suffers from unrequited love] were not present. Au bout du compte, [come, to that] what can a brute of this kind find to tax us with? Mark my word, it will be just as pauvre [poor] as Tellering’s smear.

I shall be seeing Borchardt within the next few days. If any recommendations are to be had, you can trust me to get them. But I hardly imagine that Steinthal, etc., have connections of the sort in London. It’s almost wholly outside their line of business. Besides, if only for fear of making a fool of himself, the fellow will attempt to put off doing anything about it up here. If it were not for Lupus, I’d consign the chap, etc. I can’t abide him, with his smooth, self-important, vainglorious, deceitful charlatan’s physiognomy.

If Lassalle has given you a good, neutral address in Dsseldorf, you can send me 100 copies. We shall arrange for them to be packed in bales of twist by firms up here; but they should not be addressed to Lassalle himself, since the packages will go to Gladbach, Elberfeld and so on, where they will have to be stamped and sent by post to Dsseldorf. However, we cannot entrust a package for Lassalle or the Hatzfeldt woman to any local firm, because, 1. they all employ at least one Rhinelander who knows all the gossip, or 2. if that goes off all right, the recipients of the bales will get to know about it, or 3. at the very best the postal authorities will take a look at the things before delivering them. We have a good address in Cologne, but are not, alas, very well acquainted with the people who are the principal buyers here for the firm in Cologne, and hence cannot expect them to do any smuggling. Indeed, what we shall tell the people here is that the packages contain presents for the fair sex.

From all this you will gather that I am once again on passable terms with Charles. The affair was settled with great dispatch at the first suitable opportunity. Nevertheless you will realise that the fool derives a certain pleasure from having been given preference over myself in one rotten respect at least, because of Mr Gottfried Ermen’s envy of my old man. Habeat sibi [Let him have it]. He at any rate realises that, if I so choose, I can become matre de la situation [master of the situation] within 48 hours, and that’s sufficient.

The absence of landed property is indeed the key to the whole of the East. Therein lies its political and religious history. But how to explain the fact that orientals never reached the stage of landed property, not even the feudal kind? This is, I think, largely due to the climate, combined with the nature of the land, more especially the great stretches of desert extending from the Sahara right across Arabia, Persia, India and Tartary [Turkestan] to the highest of the Asiatic uplands. Here artificial irrigation is the first prerequisite for agriculture, and this is the responsibility either of the communes, the provinces or the central government. In the East, the government has always consisted of 3 departments only: Finance (pillage at home), War (pillage at home and abroad), and travaux publics [public works], provision for reproduction. The British government in India has put a somewhat narrower interpretation on nos. 1 and 2 while completely neglecting no. 3, so that Indian agriculture is going to wrack and ruin. Free competition is proving an absolute fiasco there. The fact that the land was made fertile by artificial means and immediately ceased to be so when the conduits fell into disrepair, explains the otherwise curious circumstance that vast expanses are now and wastes which once were magnificently cultivated (Palmyra, Petra, the ruins in the Yemen, any number of localities in Egypt, Persia, Hindustan); it explains the fact that one single war of devastation could depopulate and entirely strip a country of its civilisation for centuries to come. This, I believe, also accounts for the destruction of southern Arabian trade before Mohammed’s time, a circumstance very rightly regarded by you as one of the mainsprings of the Mohammedan revolution. I am not sufficiently well acquainted with the history of trade during the first six centuries A.D. to be able to judge to what extent general material conditions in the world made the trade route via Persia to the Black Sea and to Syria and Asia Minor via the Persian Gulf preferable to the Red Sea route. But one significant factor, at any rate, must have been the relative safety of the caravans in the well-ordered Persian Empire under the Sassanids, whereas between 200 and 600 A.D. the Yemen was almost continuously being subjugated, overrun and pillaged by the Abyssinians. By the seventh century the cities of southern Arabia, still flourishing in Roman times, had become a veritable wilderness of ruins; in the course of 500 years what were purely mythical, legendary traditions regarding their origin had been appropriated by the neighbouring Bedouins, (cf. the Koran and the Arab historian Novari), and the alphabet in which the local inscriptions had been written was almost wholly unknown although there was no other, so that de facto writing had fallen into oblivion. Things of this kind presuppose, not only a superseding, probably due to general trading conditions, but outright violent destruction such as could only be explained by the Ethiopian invasion. The expulsion of the Abyssinians did not take place until about 40 years before Mohammed, and was plainly the first act of the Arabs’ awakening national consciousness, which was further aroused by Persian invasions from the North penetrating almost as far as Mecca. I shall not be tackling the history of Mohammed himself for a few days yet; so far it seems to me to have the character of a Bedouin reaction against the settled, albeit decadent urban fellaheen whose religion by then was also much debased, combining as it did a degenerate form of nature worship with a degenerate form of Judaism and Christianity.

Old Bernier’s stuff is really very fine. It’s a real pleasure to get back to something written by a sensible, lucid old Frenchman who constantly hits the nail on the head sans avoir l’air de s’en apercevoir [without appearing to be aware of it].

Since I am in any case tied up with the eastern mummery for some weeks, I have made use of the opportunity to learn Persian. I am put off Arabic, partly by my inborn hatred of Semitic languages, partly by the impossibility of getting anywhere, without considerable expenditure of time, in so extensive a language — one which has 4,000 roots and goes back over 2,000-3,000 years. By comparison, Persian is absolute child’s play. Were it not for that damned Arabic alphabet in which every half dozen letters looks like every other half dozen and the vowels are not written, I would undertake to learn the entire grammar within 48 hours. This for the better encouragement of Pieper should he feel the urge to imitate me in this poor joke. I have set myself a maximum of three weeks for Persian, so if he stakes two months on it he’ll best me anyway. What a pity Weitling can’t speak Persian; he would then have his langue universelle toute trouvie [universal language ready-made] since it is, to my knowledge, the only language where ‘me’ and ‘to me’ are never at odds, the dative and accusative always being the same.

It is, by the way, rather pleasing to read dissolute old Hafiz in the original language, which sounds quite passable and, in his grammar, old Sir William Jones likes to cite as examples dubious Persian jokes, subsequently translated into Greek verse in his Commentariis poeseos asiaticae, because even in Latin they seem to him too obscene. These commentaries, Jones’ Works, Vol. II, De Poesi erotica, will amuse you. Persian prose, on the other hand, is deadly dull. E.g. the Rauzt-us-saf by the noble Mirkhond, who recounts the Persian epic in very flowery but vacuous language. Of Alexander the Great, he says that the name Iskander, in the Ionian language, is Akshid Rus (like Iskander, a corrupt version of Alexandros); it means much the same as filusuf, which derives from fila, love, and sufa, wisdom, ‘Iskander’ thus being synonymous with ‘friend of wisdom.’

Of a retired king he says: ‘He beat the drum of abdication with the drumsticks of retirement’, as will pre Willich, should he involve himself any more deeply in the literary fray. Willich will also suffer the same fate as King Afrasiab of Turan when deserted by his troops and of whom Mirkhond says: ‘He gnawed the nails of horror with the teeth of desperation until the blood of vanquished consciousness welled forth from the finger-tips of shame.’

More tomorrow.


TEXT 4:

Engels F: “Bruno Bauer and Early Christianity”; Collected Works Volume 24; Moscow; 1989; p.427-435.

Written May 4-11, 1882.

In Berlin, on April 13, a man died who once played a role as a philosopher and a theologian, but was hardly heard of for years, only attracting the attention of the public from time to time as a “literary eccentric”. Official theologians, including Renan, wrote him off and, therefore, maintained a silence of death about him. And yet he was worth more than them all and did more than all of them in a question which interests us Socialists, too: the question of the historical origin of Christianity.

On the occasion of his death, let us give a brief account of the present position on this question, and Bauer’s contribution to its solution.

The view that dominated from the free-thinkers of the Middle Ages to the Enlighteners of the 18th century, the latter included, that all religions, and therefore Christianity too, were the work of deceivers was no longer sufficient after Hegel had set philosophy the task of showing a rational evolution in world history.

It is clear that if spontaneously arising religions — like the fetish worship of the Negroes or the common primitive religion of the Aryans — come to being without deception playing any part, deception by the priests soon becomes inevitable in their further development. But, in spite of all sincere fanaticism, artificial religions cannot even, at their foundation, do without deception and falsification of history. Christianity, too, has pretty achievements to boast of in this respect from the very beginning, as Bauer shows in his criticism of the New Testament. But that only confirms a general phenomenon and does not explain the particular case in question.

A religion that brought the Roman world empire into subjection, and dominated by far the larger part of civilized humanity for 1,800 years, cannot be disposed of merely by declaring it to be nonsense gleaned together by frauds. One cannot dispose of it before one succeeds in explaining its origin and its development from the historical conditions under which it arose and reached its dominating position. This applies to Christianity. The question to be solved, then, is how it came about that the popular masses in the Roman Empire so far preferred this nonsense — which was preached, into the bargain, by slaves and oppressed — to all other religions, that the ambitious Constantine finally saw in the adoption of this religion of nonsense the best means of exalting himself to the position of autocrat of the Roman world. [Under the Christian tradition, the name of the Roman Emperor Flavius Valerius Constaninus Magnus, who in 330 transferred the capital of the empire from Rome to Constantinople, is associated with the radical turn form persecution of Christianity to the protection of the new religion, although this process had begun under his predecessors.]

 

Bruno Bauer has contributed far more to the solution of this question than anybody else. No matter how much the half-believing theologians of the period of reaction have struggled against him since 1849, he irrefutably proved the chronological order of the Gospels and their mutual interdependence, shown by Wilke from the purely linguistic standpoint, by the very contents of the Gospels themselves. He exposed the utter lack of scientific spirit of Strauss’ vague myth theory according to which anybody can hold for historical as much as he likes in the Gospel narrations. And, if almost nothing from the whole content of the Gospels turns out to be historically provable — so that even the historical existence of a Jesus Christ can be questioned — Bauer has, thereby, only cleared the ground for the solution of the question: what is the origin of the ideas and thoughts that have been woven together into a sort of system in Christianity, and how came they to dominate the world?

Bauer studied this question until his death. His research reached its culminating point in the conclusion that the Alexandrian Jew Philo, who was still living about A.D. 40 but was already very old, was the real father of Christianity, and that the Roman stoic Seneca was, so to speak, its uncle. The numerous writings attributed to Philo which have reached us originate indeed in a fusion of allegorically and rationalistically conceived Jewish traditions with Greek, particularly stoic, philosophy. This conciliation of western and eastern outlooks already contains all the essentially Christian ideas: the inborn sinfulness of man, the Logos, the Word, which is with God and is God and which becomes the mediator between God and man: atonement, not by sacrifices of animals, but by bringing one’s own heart of God, and finally the essential feature that the new religious philosophy reverses the previous world order, seeks its disciples among the poor, the miserable, the slaves, and the rejected, and despises the rich, the powerful, and the privileged, whence the precept to despise all worldly pleasure and to mortify the flesh.

One the other hand, Augustus himself saw to it that not only the God-man, but also the so-called immaculate conception became formulae imposed by the state. He not only had Caesar and himself worshipped as gods, he also spread the notion that he, Augustus Caesar Divus, the Divine, was not the son of a human father but that his mother had conceived him of the god Apollo. But was not that Apollo perhaps a relation of the one sung by Heinrich Heine? [Engels is referring to a charactar in Heine’s satirical poem ‘Der Apollgott’ (from Romanzero), a young blade, a cantor at the Amsterdam synagogue, who imitated Apollo.]

As we see, we need only the keystone and we have the whole of Christianity in its basic features: the incarnation of the Word become man in a definite person and his sacrifice on the cross for the redemption of sinful mankind.

Truly reliable sources leave us uncertain as to when this keystone was introduced into the stoic-philonic doctrines. But this much is sure: it was not introduced by philosophers, either Philo’s disciples or stoics. Religions are founded by people who feel a need for religion themselves and have a feeling for the religious needs of the masses. As a rule, this is not the case with the classical philosophers. On the other hand, we find that in times of general decay, now, for instance, philosophy and religious dogmatism are generally current in a vulgarized and shallow form. While classic Greek philosophy in its last forms — particularly in the Epicurean school [the Epicurean school of materialist philosophy was founded by Epicurius in the late 4th Century BC and existed until the mid-4th Century AD. In thier philosophical struggle against the Stoics, its members refused to recognise the gods’ interference into mundane matters and proceeded from the assumption that matter, which has an inner source of motion, is eternal] — led to atheistic materialism, Greek vulgar philosophy led to the doctrine of a one and only God and of the immortality of the human soul. Likewise, rationally vulgarized Judaism in mixture and intercourse with aliens and half-Jews ended by neglecting the ritual and transforming the formerly exclusively Jewish national god, Jahveh, [Note by Engels: As Ewald has already proved, the Jews used dotting script (containing vowels and reading signs) to write under the consonants in the name of Javeh, which it was forbidden to pronounce, the vowels of the word Adonai, which they read it its place. This was subsequently read as Jehovah. The word is therefore not the name of a god but only a vugar mistake in grammar: in Hebrew it is simply impossible] into the one true God, the creator of heaven and earth, and by adopting the idea of the immortality of the soul which was alien to early Judaism. Thus, monotheistic vulgar philosophy came into contact with vulgar religion, which presented it with the ready-made one and only God. Thus, the ground was prepared on which the elaboration among the Jews of the likewise vulgarized philonic notions and not Philo’s own works that Christianity proceeded from is proved by the New Testament’s almost complete disregard of most of these works, particularly the allegorical and philosophical interpretation of the narrations of the Old Testament. This is an aspect to which Bauer did not devote enough attention.

One can get an idea of what Christianity looked like in its early form by reading the so-called Book of Revelation of John. Wild, confused fanaticism, only the beginnings of dogmas, only the mortification of the flesh of the so-called Christian morals, but on the other hand a multitude of visions and prophesies. The development of the dogmas and moral doctrine belongs to a later period, in which the Gospels and the so-called Epistles of the Apostles were written. In this — at least as regards morals — the philosophy of the stoics, of Seneca in particular, was unceremoniously made us of. Bauer proved that the Epistles often copy the latter word-for-word; in fact, even the faithful noticed this, but they maintained that Seneca had copied from the New Testament, though it had not yet been written in his time. Dogma developed, on the one hand in connection with the legend of Jesus which was then taking shape, and, on the other hand, in the struggle between Christians of Jewish and of pagan origin.

Bauer also gives very valuable data on the causes which helped Christianity to triumph and attain world domination. But here the German philosopher is prevented by his idealism from seeing clearly and formulating precisely. Phrases often replace substance in decisive points. Instead, therefore, of going into details of Bauer’s views, we shall give our own conception of this point, based on Bauer’s works, and also on our personal study.

The Roman conquest dissolved in all subjugated countries, first, directly, the former political conditions, and then, indirectly, also the social conditions of life.

Firstly by substituting for the former organization according to estates (slavery apart) the simple distinction between Roman citizens and peregrines or subjects.

Secondly, and mainly, by exacting tribute in the name of the Roman state. If, under the empire, a limit was set as far as possible in the interest of the state to the governors’ thirst for wealth, that thirst was replaced by ever more effective and oppressive taxation for the benefit of the state treasury, the effect of which was terribly destructive.

Thirdly, Roman law was finally administered everywhere by Roman judges, while the native social system was declared invalid insofar as it was incompatible with the provisions of Roman law.

These three levers necessarily developed a tremendous levelling power, particularly when they were applied for several hundred years to populations — the most vigorous sections of which had been either suppressed or taken away into slavery in the battles preceding, accompanying, and often following, the conquest. Social relations in the provinces came nearer and nearer to those obtaining in the capital and in Italy. The population became more and more sharply divided into three classes, thrown together out of the most varying elements and nationalities: rich people, including not a few emancipated slaves (cf. Petronius), [Engels is referring to Petronius’ Satyricon, where he describes a feast in the house of an emancipated slave, Trimalchionis, who became rich] big landowners or usurers or both at once, like Seneca, the uncle of Christianity; propertyless free people, who in Rome were fed and amused by the state — in the provinces they got on as they could by themselves — and finally the great mass, the slaves. In the face of the state, i.e., the emperor, the first two classes had as few rights as the slaves in the face of their masters. From the time of Tiberius to that of Nero, in particular, it was a practice to sentence rich Roman citizens to death in order to confiscate their property. The support of the government was — materially, the army, which was more like an army of hired foreign soldiers than the old Roman peasant army, and morally, the general view that there was no way out of that condition; that not, indeed, this or that Caesar, but the empire based on military domination was an immutable necessity. This is not the place to examine what very material facts this view was based on.

The general rightlessness and despair of the possibility of a better condition gave rise to a corresponding general slackening and demoralization. The few surviving old Romans of the patrician type and views either were removed or died out; Tacitus was the last of them. The others were glad when they were able to keep away from public life; all they existed for was to collect and enjoy riches, and to indulge in private gossip and private intrigue. The propertyless free citizens were state pensioners in Rome, but in the provinces their condition was an unhappy one. They had to work, and to compete with slave-labor into the bargain. But they were confined to the towns. Besides them, there was also in the provinces peasants, free landowners (here and there probably still common ownership) or, as in Gaul, bondsmen for debts to the big landowners. This class was the least affected by the social upheaval; it was also the one to resist longest the religious upheaval. [Engels note: According to Fallmereyer, the peasants in Main, Peloponnesus, still offered sacrifices to Zeus in the 9th century.] Finally, there were the slaves, deprived of rights and of their own will and the possibility to free themselves, as the defeat of Spartacus [Engels refers to the slave uprising of 73-71 BC in Rome led by Spartacus] had already proved; most of them, however, were former free citizens, or sons of free-born citizens. It must, therefore, have been among them that hatred of their conditions of life was still generally vigorous, though externally powerless.

We shall find that the type of ideologists at the time corresponded to this state of affairs. The philosophers were either mere money-earning schoolmasters or buffoons in the pay of wealthy revellers. Some were even slaves. An example of what became of them under good conditions is supplied by Seneca. This stoic and preacher of virtue and abstinence was Nero’s first court intriguer, which he could not have been without servility; he secured from him presents in money, properties, gardens, and palaces — and while he preached the poor man Lazarus of the Gospel, he was, in reality, the rich man of the same parable. Not until Nero wanted to get at him did he request the emperor to take back all his presents, his philosophy being enough for him. Only completely isolated philosophers, like Persius, had the courage to brandish the lash of satire over their degenerated contemporaries. But, as for the second type of ideologists, the jurists, they were enthusiastic over the new conditions because the abolition of all differences between Estates allowed them broad scope in the elaboration of their favorite private right, in return for which they prepared for the emperor the vilest state system of right that ever existed.

With the political and social peculiarities of the various peoples, the Roman Empire also doomed to ruin their particular religions. All religions of antiquity were spontaneous tribal, and later national, religions, which arose from and merged with the social and political conditions of the respective peoples. Once these, their bases, were disrupted, and their traditional forms of society, their inherited political institutions and their national independence shattered, the religion corresponding to these also naturally collapsed. The national gods could suffer other gods beside them, as was the general rule of antiquity, but not above them. The transplanting of Oriental divinities to Rome was harmful only to the Roman religion, it could not check the decay of the Oriental religions. As soon as the national gods were unable to protect the independence of their nation, they met their own destruction. This was the case everywhere (except with peasants, especially in the mountains). What vulgar philosophical enlightenment — I almost said Voltairianism — did in Rome and Greece, was done in the provinces by Roman oppression and the replacing of men proud of their freedom by desperate subjects and self-seeking ragamuffins.

Such was the material and moral situation. The present was unbearable, the future still more menacing, if possible. There was no way out. Only despair or refuge in the commonest sensuous pleasure, for those who could afford it at least, and they were a tiny minority. Otherwise, nothing but surrender to the inevitable.

But, in all classes there was necessarily a number of people who, despairing of material salvation, sought in its stead a spiritual salvation, a consolation in their consciousness to save them from utter despair. This consolation could not be provided by the stoics any more than by the Epicurean school, for the very reason that these philosophers were not intended for common consciousness and, secondly, because the conduct of disciples of the schools cast discredit on their doctrines. The consolation was to be a substitute, not for the lost philosophy, but for the lost religion; it had to take on a religious form, the same as anything which had to grip the masses both then and as late as the 17th century.

We hardly need to note that the majority of those who were pining for such consolation of their consciousness, for this flight from the external world into the internal, were necessarily among the slaves.

It was in the midst of this general economic, political, intellectual, and moral decadence that Christianity appeared. It entered into a resolute antithesis to all previous religions.

In all previous religions, ritual had been the main thing. Only by taking part in the sacrifices and processions, and in the Orient by observing the most detailed diet and cleanliness precepts, could one show to what religion one belonged. While Rome and Greece were tolerant in the last respect, there was in the Orient a rage for religious prohibitions that contributed no little to the final downfall. People of two different religions (Egyptians, Persians, Jews, Chaldeans) could not eat or drink together, perform any every-day act together, or hardly speak to each other. It was largely due to this segregation of man from man that the Orient collapsed. Christianity knew no distinctive ceremonies, not even the sacrifices and processions of the classic world. By thus rejecting all national religions and their common ceremonies, and addressing itself to all peoples without distinction, it became the first possible world religion. Judaism, too, with its new universal god, had made a start on the way to becoming a universal religion; but the children of Israel always remained an aristocracy among the believers and the circumcised, and Christianity itself had to get rid of the notion of the superiority of the Jewish Christians (still dominant in the so-called Book of Revelation of John) before it could really become a universal religion. Islam, itself, on the other hand, by preserving its specifically Oriental ritual, limited the area of its propagation to the Orient and North Africa, conquered and populated anew by Arab Bedouins; here it could become the dominating religion, but not in the West.

Secondly, Christianity struck a chord that was bound to echo in countless hearts. To all complaints about the wickedness of the times and the general material and moral distress, Christian consciousness of sin answered: It is so and it cannot be otherwise; thou art in blame, ye are all to blame for the corruption of the world, thine and your own internal corruption! And where was the man who could deny it? Mea culpa! The admission of each one’s share in the responsibility for the general unhappiness was irrefutable and was made the precondition for the spiritual salvation which Christianity at the same time announced. And this spiritual salvation was so instituted that it could be easily understood by members of every old religious community. The idea of atonement to placate the offended deity was current in all the old religions; how could the idea of self-sacrifice of the mediator atoning once for all for the sins of humanity not easily find ground there? Christianity, therefore, clearly expressed the universal feeling that men themselves are guilty of the general corruption as the consciousness of sin of each one; at the same time, it provided, in the death-sacrifice of his judge, a form of the universally longed-for internal salvation from the corrupt world, the consolation of consciousness; it thus again proved its capacity to become a world religion and, indeed, a religion which suited the world as it then was.

So it happened that, among the thousands of prophets and preachers in the desert that filled that period of countless religious novations, the founders of Christianity alone met with success. Not only Palestine, but the entire Orient swarmed with such founders of religions, and between them there raged what can be called a Darwinian struggle for ideological existence. Thanks mainly to the elements mentioned above, Christianity won the day. How it gradually developed its character of world religion by natural selection in the struggle of sects against one another and against the pagan world is taught in detail by the history of the Church in the first three centuries.

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ICMLPO (Unity & Struggle): Final Declaration of the 18th International Seminar, Problems of the Revolution in Latin America: The Current International Situation and the Tasks of the Revolutionaries

In the midst of joy and enthusiasm, the 18th International Seminar, Problems of the Revolution in Latin America, was closed. The event was held with the participation of 28 organizations from 15 countries; it is estimated that about 1500 people attended the seminar during its 5 days. The fruit of the hard work of the last week is attested to below:

With an air of apparent tranquillity and optimism, the economic analysts of the international bourgeoisie announced to the world that the economic crisis that broke out in 2008 had come to an end and a period of capitalist recovery loomed. Indeed, demonstrations of a small economic recovery can be seen in some countries, such as the United States and Germany, but at the same time, other economies are suffering new setbacks. During these years, the centre of the crisis has been moving from one region to another; its economic effects are still present around the world accompanied by the intensification of political and social conflicts.

The world is the scene of acute social-political confrontation between the peoples and the ruling classes, between dependent countries and imperialist states, and among imperialist powers themselves which are fiercely contesting control of areas of influence, markets, natural resources of the dependent countries, etc. This explains the political-military conflicts that are taking place in various parts of the world, such as Ukraine, Syria or the Middle East.

In this agitated world, the workers, youth and peoples in general are making their way with their struggles, seeking to affirm the historic leading role that they deserve.

The onslaught of capital to place the burden of the crisis on the backs of the workers has clashed with the combative response of the peoples in Europe. From the other side of the ocean, the Latin American peoples have watched with joy and optimism the general strikes, street demonstrations, the combative days of struggle that have spread throughout Spain, Greece, Portugal, Italy, Germany, etc. that is, in almost the whole old continent. In this practice of mass struggle the revolutionary organizations are redoubling their efforts to provide the right direction to these fights, contending with right-wing and opportunist forces that see in such circumstances the opportunity to provide political solutions to the crisis without affecting the framework of the bourgeois institutions.

Faced with the savage mechanisms and levels of capitalist exploitation in Asia and Africa, the response of workers is to strike. Thousands, tens of thousands of workers, miners and agricultural workers are stopping work in companies that are mostly subsidiaries of imperialist transnationals.

The American continent, which at one point in history committed itself to taking up arms to defeat colonial domination, is also the scene of popular protests, of acute political confrontations and inter-imperialist disputes.

The course of the so-called progressive governments is showing serious problems. The public and social work that they were able to develop in previous years due to the unusual income from the sale of raw materials on the international market, now has difficulties in continuing: the economic problems are causing havoc. In their search for resources they have opted for doing what the bourgeoisie in power has traditionally done, prostrating themselves before international financial capital and putting their hands in the pockets of the workers.

Chinese, Russian, Canadians and U.S. capital are flowing into this region to engage in mining, oil, energy projects, etc., or through loans that, in one case or another, maintain an existing state of economic dependence. Several of these “progressive” governments, in the name of a supposed anti-U.S. attitude, are actually carrying forward a renegotiation of dependency on China in particular.

In many aspects of economic and political practice there is no major difference between the “progressive” governments and the openly right- wing ones. Both apply policies and laws to restrict or even eliminate the rights of the workers and peoples – with different labels but identical purposes; “anti-terrorists” laws are passed that seek to prevent popular protest through its criminalization; they coincide in promoting extractive and agro-energy projects that plunder our wealth and cause disastrous and irreversible consequences to nature.

Of course, there are more examples of the application of anti-people and anti-national policies; therefore the discontent and struggle of the workers, youth and peoples are growing… and repression as well. In the Americas, as in other parts of the world, the increasingly reactionary nature of the state is a fact that, however, strikes the struggle of the people in the most varied forms.

Faced with this reality, and bearing in mind that the reason for existence of the revolutionary forces is to organize the leading role of the masses in the revolution, we the participants in this International Seminar commit our struggle to defend the immediate and strategic interests of the workers and peoples, and to defend national sovereignty under the sign of class independence.

We reaffirm the principle of the unity of the workers and people as the fundamental basis to defeat their common enemy, anti-imperialist unity to carry through our struggle successfully.

We work for the revolutionary ideas to open the way and take root in the consciousness of the peoples; therefore it is essential to confront and defeat the ruling classes and imperialism in the ideological field. It is not enough to fight the openly reactionary and right-wing positions; it is fundamental to unmask the pseudo-leftist and opportunist theses and positions that operate in the popular movement to make it work for pro-capitalist projects in the name of supposed revolutions of the 21st century.

We take as our own the struggles of the workers and peoples that are developing in whatever part of the world, therefore we are in solidarity with them all. In particular, we raise our voices and our fists with indignation against the genocide being carried out by the Zionist state of Israel with Yankee support against the Palestinian people: our solidarity with the heroic struggle of the Palestinian people to regain their territory and their right to self-determination. Our voices of support go out to the Venezuelan people fighting to defend the democratic gains made in recent years, and our condemnation of the interventionist and destabilizing action of U.S. imperialism and the bourgeoisie of that country. We stand with the people of Ukraine who are victims of the ambitions of domestic corrupt and reactionary groups and of conflicts between foreign powers.

We demand freedom for the people’s fighters, for the political prisoners and political prisoners of war and for all victims of repression prosecuted for their beliefs in different parts of the world.

These views, the result of an open and respectful debate in the context of the 18th International Seminar, Problems of the Revolution in Latin America, held in Quito, we present to the peoples of Latin America and of the world.

Our objective is the social and national revolution, the liberation of all mankind from the yoke of capital: that purpose we direct our best efforts.

Quito, August 1, 2014

Revolutionary Communist Party of Argentina
Revolutionary Marxist-Leninist Party of Argentina
Coordinator of Neighbourhood Unity – Teresa Rodriguez Movement, Argentina
Revolutionary Communist Party of Brazil
Olga Benario Women’s Movement – Brazil
Class Struggle Movement – Brazil
Democratic Constituent Movement – Colombia
Communist Party of Colombia (Marxist-Leninist)
Maoist Communist Party of Colombia
Communist Party of Labour – Dominican Republic
Dominican Association of Teachers
Revolutionary Popular Front – Mexico
Communist Party of Mexico (Marxist-Leninist)
Peruvian Communist Party Marxist-Leninist
National Democratic Front of the Philippines
Caribbean and Latin American Coordinator of Puerto Rico
Bolshevik Communist Party (Russia)
Communist Party of Spain (Marxist-Leninist)
Workers’ Party of Turkey
Bolshevik Communist Party (Ukraine)
Party of Communists of the United States
February 28th Revolutionary Organization – Uruguay
Marxist-Leninist Communist Party of Ecuador
Popular Front – Ecuador
Democratic Popular Movement – Ecuador
Revolutionary Youth of Ecuador
Ecuadorian Confederation of Women for Change
Revolutionary Front of the University Left – Ecuador

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On the 100th anniversary of World War I

YourCountryNeedsYou

The following entry is from the Great Soviet Encyclopedia.

 – E.S.

World War I (1914–18) 

an imperialist war between two coalitions of capitalist powers for a redivision of the already divided world (a repartition of colonies, spheres of influence, and spheres for the investment of capital) and for the enslavement of other peoples. At first, the war involved eight European states: Germany and Austria-Hungary against Great Britain, France, Russia, Belgium, Serbia, and Montenegro. Later, most of the countries in the world entered the war (see Table 1). A total of four states fought on the side of the Austro-German bloc; 34 states, including four British dominions and the colony of India, all of which signed the Treaty of Versailles in 1919, took part on the side of the Entente. On both sides, the war was aggressive and unjust. Only in Belgium, Serbia, and Montenegro did it include elements of a war of national liberation.

Although imperialists from all the principal belligerent powers were involved in unleashing the war, the party chiefly to blame was the German bourgeoisie, who began World War I at the “moment it thought most favorable for war, making useof its latest improvements in military matériel and forestalling the rearmament already planned and decided upon by Russia and France” (V. I. Lenin, Poln. sobr. soch., 5th ed., vol. 26, p. 16).

The immediate cause of World War I was the assassination of Archduke Francis Ferdinand, heir to the Austro-Hungarian throne, by Serbian nationalists on June 15 (28), 1914, in Sarajevo, Bosnia. German imperialists decided to take advantage of this favorable moment to unleash the war. Under German pressure, Austria-Hungary delivered an ultimatum to Serbia on July 10 (23). Although the Serbian government agreed to meet almost all of the demands in the ultimatum, Austria-Hungary broke diplomatic relations with Serbia on July 12 (25) and declared war on Serbia on July 15 (28). Belgrade, the Serbian capital, was shelled. On July 16 (29), Russia began mobilization in the military districts bordering on Austria-Hungary and on July 17 (30) proclaimed a general mobilization. On July 18 (31), Germany demanded that Russia halt its mobilization and, receiving no reply, declared war on Russia on July 19 (Aug. 1). Germany declared war on France and Belgium on July 21 (Aug. 3). On July 22 (Aug. 4), Great Britain declared war on Germany. The British dominions (Canada, Australia, New Zealand, and the Union of South Africa) and Britain’s largest colony, India, entered the war on the same day. On Aug. 10 (23), Japan declared war on Germany. Italy formally remained a member of the Triple Alliance but declared its neutrality on July 20 (Aug. 2), 1914.

Causes of the war. At the turn of the 20th century capitalism was transformed into imperialism. The world had been almost completely divided up among the largest powers. The uneven-ness of the economic and political development of various countries became more marked. The states that had been late in embarking on the path of capitalist development (the USA, Germany, and Japan) advanced rapidly, competing successfully on the world market with the older capitalist countries (Great Britain and France) and persistently pressing for a repartition of the colonies. The most acute conflicts arose between Germany and Great Britain, whose interests clashed in many parts of the globe, especially in Africa, East Asia, and the Middle East, focal points of German imperialism’s trade and colonial expansion. The construction of the Baghdad Railroad aroused grave alarm in British ruling circles. The railroad would provide Germany with direct route through the Balkan Peninsula and Asia Minor to the Persian Gulf and guarantee Germany an important position in the Middle East, thus threatening British land and sea communications with India.

WWIGraph1WWIGraph2

France, rooted in the desire of German capitalists to secure permanent possession of Alsace and Lorraine, which had been taken from France as a result of the Franco-Prussian War of 1870–71, and in the determination of the French to regain these provinces. French and German interests also clashed on the colonial issue. French attempts to seize Morocco met with determined resistance from Germany, which also claimed this territory.

Contradictions between Russia and Germany began to increase in the late 19th century. The expansion of German imperialism in the Middle East and its attempts to establish control over Turkey infringed on Russian economic, political, and strategic interests. Germany used its customs policy to limit the importation of grain from Russia, imposing high duties while simultaneously making sure that German industrial goods could freely penetrate the Russian market.

In the Balkans, there were profound contradictions between Russia and Austria-Hungary, caused primarily by the expansion of the Hapsburg monarchy, with Germany’s support, into the neighboring South Slav lands (Bosnia, Hercegovina, and Serbia). Austria-Hungary intended to establish its superiority in the Balkans. Russia, which supported the struggle of the Balkan peoples for freedom and national independence, considered the Balkans its own sphere of influence. The tsarist regime and the Russian imperialist bourgeoisie wanted to take over the Bosporus and Dardanelles to strengthen their position in the Balkans.

There were many disputed issues between Great Britain and France, Great Britain and Russia, Austria-Hungary and Italy, and Turkey and Italy, but they were secondary to the principal contradictions, which existed between Germany and its rivals— Great Britain, France, and Russia. The aggravation and deepening of these contradictions impelled the imperialists toward a repartition of the world, but “under capitalism, the repartitioning of ‘world domination’ could only take place at the price of a world war” (Lenin, ibid., vol. 34, p. 370).

The class struggle and the national liberation movement grew stronger during the second decade of the 20th century. The Revolution of 1905–07 in Russia had an enormous influence on the upsurge in the struggle of the toiling people for their social and national liberation. There was considerable growth in the working-class movement in Germany, France, and Great Britain. The class struggle reached its highest level in Russia, where a new revolutionary upsurge began in 1910 and an acute political crisis ripened. National liberation movements grew broader in Ireland and Alsace (the Zabern affair, 1913), and the struggle of the enslaved peoples of Austria-Hungary became more extensive. The imperialists sought to use war to suppress the developing liberation movement of the working class and oppressed peoples in their own countries and to arrest the world revolutionary process.

For many years the imperialists prepared for a world war as a means of resolving foreign and domestic contradictions. The initial step was the formation of a system of military-political blocs, beginning with the Austro-German Agreement of 1879, under which the signatories promised to render assistance to each other in case of war with Russia. Seeking support in its struggle with France for possession of Tunisia, Italy joined Austria-Hungary and Germany in 1882. Thus, the Triple Alliance of 1882, or the alliance of the Central Powers, took shape in central Europe. Initially directed against Russia and France, it later included Great Britain among its main rivals.

To counterbalance the Triple Alliance, another coalition of European powers began to develop. The Franco-Russian Alliance of 1891–93 provided for joint actions by the two countries in case of aggression by Germany or by Italy and Austria-Hungary supported by Germany. The growth of German economic power in the early 20th century forced Great Britain to gradually renounce its traditional policy of splendid isolation and seek rapprochement with France and Russia. The Anglo-French agreement of 1904 settled various colonial disputes between Great Britain and France, and the Anglo-Russian Agreement of 1907 reinforced the understanding between Russia and Great Britain regarding their policies in Tibet,Afghanistan, and Iran. These documents created the Triple Entente (or agreement), a bloc opposed to the Triple Alliance and made up of Great Britain, France, and Russia. In 1912, Anglo-French and Franco-Russian naval conventions were signed, and in 1913 negotiations were opened for an Anglo-Russian naval convention.

WWIGraph3

The formation of military-political groupings in Europe, as well as the arms race, further aggravated imperialist contradictions and increased international tensions. A relatively tranquil period of world history was followed by an epoch that was“much more violent, spasmodic, disastrous, and conflicting” (ibid., vol. 27, p. 94). The worsening of imperialist contradictions was evident in the Moroccan crises of 1905–06 and 1911, the Bosnian crisis of 1908–09, the Italo-Turkish War of 1911–12, and the Balkan Wars of 1912–13. In December 1913, Germany provoked a major international conflict by sending a military mission under the command of General O. Liman von Sanders to Turkey to reorganize and train the Turkish Army.

In preparation for a world war the ruling circles of the imperialist states established powerful war industries, based on large state plants: armaments, explosives, and ammunition plants, as well as shipyards. Private enterprises were drawn into the production of military goods: Krupp in Germany, Skoda in Austria-Hungary, Schneider-Creusot and St. Chamond in France, Vickers and Armstrong-Whitworth in Great Britain, and the Putilov Works and other plants in Russia.

The imperialists of the two hostile coalitions put a great deal of effort into building up their armed forces. The achievements of science and technology were placed in the service of war. More sophisticated armaments were developed, including rapid-fire magazine rifles and machine guns, which greatly increased the firepower of the infantry. In the artillery the number of rifled guns of the latest design increased sharply. Of great strategic importance was the development of the railroads, which made it possible to significantly speed up the concentration and deployment of large masses of troops in the theaters of operations and to provide an uninterrupted supply of personnel replacements and matériel to the armies in the field. Motor vehicle transport began to play an increasingly important role, and military aviation began to develop. The use of new means of communication in military affairs, including the telegraph, the telephone, and the radio,facilitated the organization of troop control. The size of armies and trained reserves grew rapidly. (See Table 2 for the composition of the ground forces of the principal warring powers.)

Germany and Great Britain were engaged in a stiff competition in naval armaments. The dreadnought, a new type of ship, was first built in 1905. By 1914 the German Navy was firmly established as the world’s second most powerful navy(after the British). Other countries endeavored to strengthen their navies, but it was not financially and economically possible for them to carry out the shipbuilding programs they had adopted. (See Table 3 for the composition of the naval forces of the principal warring powers.) The costly arms race demanded enormous financial means and placed a heavy burden on the toiling people.

WWIGraph4

There was extensive ideological preparation for war. The imperialists attempted to instill in the people the idea that armed conflicts are inevitable, and they tried their hardest to inculcate militarism in the people and incite chauvinism among them. To achieve these aims, all means of propaganda were used—the press, literature, the arts, and the church. Taking advantage of the patriotic feelings of the people, the bourgeoisie in every country justified the arms race and camouflaged aggressive objectives with false arguments on the need to defend the native land against foreign enemies.

The international working class (more than 150 million persons) was a real force capable of significantly restraining the imperialist governments. At the international level, the working-class movement was headed by the Second International,which united 41 Social Democratic parties from 27 countries, with 3.4 million members. However, the opportunist leaders of the European Social Democratic parties did nothing to implement the antiwar decisions of the prewar congresses of the Second International. When the war began, the leaders of the Social Democratic parties of the Western countries came to the support of their governments and voted for military credits in parliament. The socialist leaders of Great Britain (A. Henderson), France (J. Guesde, M. Sembat, and A. Thomas), and Belgium (E. Vandervelde) joined the bourgeois military governments. Ideologically and politically, the Second International collapsed and ceased to exist, breaking up into social chauvinist parties.

Only the left wing of the Second International, with the Bolshevik Party led by Lenin in the vanguard, continued to fight consistently against militarism, chauvinism, and war. The basic principles defining the attitude of revolutionary Marxists toward war were set forth by Lenin in the Manifesto of the Central Committee of the RSDLP, “War and Russian Social Democracy.” Firmly opposed to the war, the Bolsheviks explained its imperialist character to the popular masses. The Bolshevik faction of the Fourth State Duma refused to support the tsarist government and vote for war credits. The Bolshevik Party called on the toiling people of all countries to work for the defeat of their governments in the war, the transformation of the imperialist war into a civil war, and the revolutionary overthrow of the power of the bourgeoisie and the landlords. A revolutionary, antiwar stance was adopted by the Bulgarian Workers’ Social Democratic Party (Narrow Socialists), headed by D. Blagoev, G. Dimitrov, and V. Kolarov, and by the Serbian and Rumanian Social Democratic parties. Active opposition to the imperialist war was also shown by a small group of left-wing Social Democrats in Germany, led by K. Liebknecht, R. Luxemburg, C. Zetkin, and F. Mehring; by a few socialists in France, led by J. Jaurès; and by some socialists in other countries.

War plans and strategic deployment. Long before the war began, the general staffs had worked out war plans. All strategic calculations were oriented toward a short, fast-moving war. The German strategic plan provided for rapid, decisive actions against France and Russia. It assumed that France would be crushed in six to eight weeks, after which all German forces would descend on Russia and bring the war to a victorious conclusion. The bulk of German troops (four-fifths) were deployed on the western border of Germany and were designated for the invasion of France. It was their mission to deliver the main attack with the right wing through Belgium and Luxembourg, turning the left flank of the French Army west of Paris and, throwing it back toward the German border, forcing it to surrender. A covering force (one army) was stationed in East Prussia to oppose Russia. The German military command figured that it would be able to crush France and transfer troops to the east before the Russian Army went over to the offensive. The main forces of the German Navy (the High Seas Fleet) were to be stationed at bases in the North Sea. Their mission was to weaken the British Navy with actions using light forces and submarines and then destroy the main British naval forces in a decisive battle. A few cruisers were detailed for operations in the British sea-lanes. In the Baltic Sea the German Navy’s mission was to prevent vigorous actions by the Russian Navy.

The Austro-Hungarian command planned military operations on two fronts: against Russia in Galicia and against Serbia and Montenegro in the Balkans. They did not exclude the possibility of forming a front against Italy, an unreliable member of the Triple Alliance that might go over to the Entente. Consequently, the Austro-Hungarian command drew up three variations of a war plan and divided their ground forces into three operational echelons (groups): group A (nine corps), which was designated for actions against Russia; the “minimum Balkan” group (three corps), which was directed against Serbia and Montenegro; and group B (four corps), the reserve of the supreme command, which could be used either to reinforce the other groups or to form a new front if Italy became an enemy.

The general staffs of Austria-Hungary and Germany maintained close contact with each other and coordinated their strategic plans. The Austro-Hungarian plan for the war against Russia provided for delivering the main attack from Galicia between the Vistula and Bug rivers and moving northeast to meet German forces, which were supposed to develop an offensive at the same time moving southeast from East Prussia toward Siedlce, with the objectives of surrounding and destroying the grouping of Russian troops in Poland. The mission of the Austro-Hungarian Navy, which was stationed in the Adriatic Sea, was to defend the coast.

The Russian General Staff worked out two variations of the war plan, both of which were offensive. Under Variation A, the main forces of the Russian Army would be deployed against Austria-Hungary. Variation G was directed against Germany, should it deliver the main attack on the Eastern Front. Variation A, which was actually carried out, planned converging attacks in Galicia and East Prussia, with the aim of destroying the enemy groupings. This phase of the plan would be followed by a general offensive into Germany and Austria-Hungary. Two detached armies were assigned to cover Petrograd and southern Russia. In addition, the Army of the Caucasus was formed in case Turkey entered the war on the side of the Central Powers. It was the mission of the Baltic Fleet to defend the sea approaches to Petrograd and prevent the German fleet from breaking through into the Gulf of Finland. The Black Sea Fleet did not have a ratified plan ofaction.

The French plan for the war against Germany (Plan XVII) envisioned going over to the offensive with the forces of the right wing of the armies in Lorraine and with the forces of the left wing against Metz. At first, the possibility of an invasion byGerman forces through Belgium was not taken into account, because Belgian neutrality had been guaranteed by the great powers, including Germany. However, a variation of Plan XVII ratified on Aug. 2, 1914, specified that in case of an offensive by German troops through Belgium, combat operations were to be developed on the left wing up to the line of the Meuse (Maas) River from Namur to Givet. The French plan reflected the lack of confidence of the French command,confronted with a struggle against a more powerful Germany. In fact, the plan made the actions of the French Army dependent on the actions of the German forces. The mission of the French fleet in the Mediterranean Sea was to ensure themovement of colonial troops from North Africa to France by blockading the Austro-Hungarian fleet in the Adriatic Sea. Part of the French fleet was assigned to defend the approaches to the English Channel.

Expecting that military operations on land would be waged by the armies of its allies, Russia and France, Great Britain did not draw up plans for operations by ground forces. It promised only to send an expeditionary corps to the continentto help the French. The navy was assigned active missions: to set up a long-range blockade of Germany on the North Sea, to ensure the security of sea-lanes, and to destroy the German fleet in a decisive battle.

The great powers carried out the strategic deployment of their armed forces in conformity with these plans. Germany moved seven armies (the First through Seventh, consisting of 86 infantry and ten cavalry divisions, with a total of about 1.6million men and about 5,000 guns) to the border with Belgium, Luxembourg, and France, along a 380-km front from Krefeld to Mulhouse. The main grouping of these forces (five armies) was located north of Metz on a 160-km front. The defense of the northern coast of Germany was assigned to the Northern Army (one reserve corps and four Landwehr brigades). The commander in chief was Kaiser Wilhelm II, and the chief of staff was General H. von Moltke the younger(from Sept. 14, 1914, E. Falkenhayn, and from Aug. 29, 1916, until the end of the war, Field Marshal General P. von Hindenburg).

The French armies (the First through Fifth, consisting of 76 infantry and ten cavalry divisions, with a total of about 1.73 million men and more than 4,000 guns), which were under the command of General J. J. C. Joffre, were deployed on front of approximately 345 km from Belfort to Hirson. (From December 1916, General R. Nivelle was commander in chief of the French armies, and from May 17, 1917, until the end of the war, General H. Pétain. On May 14, 1918, Marshal F. Foch became supreme commander of Allied forces.) The Belgian Army under the command of King Albert I (six infantry divisions and one cavalry division, with a total of 117,000 men and 312 guns) occupied a line east of Brussels. The British Expeditionary Force under the command of Field Marshal J. French (four infantry divisions and 1.5 cavalry divisions, with a total of 87,000 men and 328 guns) was concentrated in the Maubeuge region next to the left flank of the grouping of French armies. (From December 1915 until the end of the war, the British Expeditionary Force was under the command of General D. Haig.) The main grouping of Allied forces was northwest of Verdun.

Against Russia, Germany placed the Eighth Army (14.5 infantry divisions and one cavalry division, with a total of more than 200,000 men and 1,044 guns), under the command of General M. von Prittwitz und Gaffron, in East Prussia andGeneral R. von Woyrsch’s Landwehr corps in Silesia (two Landwehr divisions and 72 guns). Austria-Hungary had three armies (the First, Third, and Fourth) on a front from Czernowitz (now Chernovtsy) to Sandomierz. H. Kövess vonKövessháza’s army group (from August 23, the Second Army) was on the right flank, and Kummer’s army group was in the Kraków region (35.5 infantry divisions and 11 cavalry divisions, with about 850,000 men and 1,848 guns). Thesupreme commander in chief was Archduke Frederick. (Emperor Charles I became supreme commander in chief in November 1916.) The Austro-Hungarian chief of staff was Field Marshal General F. Conrad von Hötzendorf (from Feb. 28,1917, General Arz von Straussenburg).

Russia had six armies on its Western border (52 infantry divisions and 21 cavalry divisions, with a total of more than 1 million men and 3,203 guns). Two fronts were formed: the Northwestern Front (First and Second armies) and theSouthwestern Front (Third, Fourth, Fifth, and Eighth armies). The Sixth Army was to defend the Baltic coast and cover Petrograd; the Seventh Army was to defend the northwest coast of the Black Sea and the boundary with Rumania. The divisions of the second strategic echelon and the Siberian divisions arrived at the front later, at the end of August and during September. On July 20 (August 2), Grand Duke Nikolai Nikolaevich was appointed supreme commander in chief.(For a list of his successors, see SUPREME COMMANDER IN CHIEF.) The chiefs of staff of the supreme commander in chief were General N. N. Ianushkevich (July 19 [Aug. 1], 1914, to Aug. 18 [31], 1915) and General M. V. Alekseev (Aug. 18 [31],1915, to Nov. 10 [23], 1916; Feb. 17 [Mar. 2] to Mar. 11 [24], 1917; and Aug. 30 [Sept. 12] to Sept. 9 [22], 1917). At the end of 1916 and during 1917 the duties of chief of staff were temporarily carried out by Generals V. I. Romeiko-Gurko,V. N. Klembovskii, A. I. Denikin, A. S. Lukomskii, and N. N. Dukhonin. From Nov. 20 (Dec. 3), 1917, to Feb. 21, 1918, the chief of staff was M. D. Bonch-Bruevich, whose successors were S I. Kuleshin and M. M. Zagiu.

In the Balkans, Austria-Hungary set two armies against Serbia: the Fifth and Sixth armies, under the command of General O. Potiorek (13 infantry divisions and one cavalry division, with a total of 140,000 men and 546 guns). Serbiadeployed four armies under the command of Voevoda R. Putnik (the First, Second, Third, and Fourth armies, consisting of 11 infantry divisions and one cavalry division, with a total of 250,000 men and 550 guns). Montenegro had six infantrydivisions (35,000 men and 60 guns).

The strategic deployment of the armed forces of both sides was basically completed by August 4–6 (17–19). Military operations took place in Europe, Asia, and Africa, on all the oceans, and on many seas. The principal operations tookplace in five theaters of ground operations: Western Europe (from 1914), Eastern Europe (from 1914), Italy (from 1915), the Balkans (from 1914), and the Middle East (from 1914). In addition, military operations were carried out in East Asia (Tsingtao, 1914), on the Pacific islands (Oceania), and in the German colonies in Africa, including German East Africa (until the end of the war), German Southwest Africa (until 1915), Togo (1914), and the Cameroons (until 1916).Throughout the war the chief theaters of ground operations were the Western European (French) and the Eastern European (Russian). Particularly important theaters of naval operations were the North, Mediterranean, Baltic, and Black seas and the Atlantic, Pacific, and Indian oceans.

Campaign of 1914. In the Western European theater, military operations began with the invasion by German troops of Luxembourg (August 2) and Belgium (August 4), the latter having rejected a German ultimatum regarding the passage of German troops through its territory. Relying on the fortified areas of Liège and Namur, the Belgian Army offered the enemy stubborn resistance on the Meuse River line. Abandoning Liège after bitter fighting (August 16), the Belgian Army retreated toward Antwerp. Dispatching about two corps (80,000 men and 300 guns) against the Belgian Army, the German command directed the main grouping of its armies to the southwest, toward the Franco-Belgian border. The French armies of the left flank (the Third, Fourth, and Fifth armies) and the British Army were moved forward to meet the German forces. The Battle of the Frontiers took place on Aug. 21–25, 1914.

In view of the danger of the enemy turning the left flank of the Allied forces, the French command withdrew its armies deeper into the country to gain time to regroup its forces and prepare a counteroffensive. From August 7 to 14 the Frencharmies of the right flank (the First and Second armies) conducted an offensive in Alsace and Lorraine. But with the invasion by German forces of France through Belgium, the French offensive was brought to a halt, and both armies were drawn back to their initial positions. The main grouping of German armies continued its offensive along a southwest axis of advance toward Paris and, winning a series of local victories over the Entente armies at Le Cateau (August 26),Nesle and Proyart (August 28–29), and St. Quentin and Guise (August 29–30), reached the Marne River between Paris and Verdun by September 5. The French command completed the regrouping of its forces and, having formed two newarmies (the Sixth and the Ninth) from reserves, created a superiority of forces in this axis. In the battle of the Marne (Sept. 5–12, 1914), the German troops were defeated and forced to withdraw to the Aisne and Oise rivers, where they dug in and stopped the allied counteroffensive by September 16.

From September 16 to October 15, three operations by maneuver known as the Race to the Sea developed out of the attempts of each side to seize the “free space” west of the Oise and extending to the Pas-de-Calais, by enveloping the enemy’s open flanks on the north. The forces of both sides reached the coast west of Ostend. The Belgian Army, which had been forced to withdraw from Antwerp on October 8, occupied a sector on the left flank of the Allied armies. The battle in Flanders on the Yser and Ypres river (October 15 to November 20) did not change the overall situation. Attempts by the Germans to break through the Allied defense and take the ports on the Pas-de-Calais were unsuccessful.Having suffered considerable losses, both sides stopped active combat actions and dug in on the established lines. A static front was established from the Swiss border to the North Sea. In December 1914 it was 720 km long, with 650 km assigned to the French Army, 50 km to the British, and 20 km to the Belgians.

Military operations in the Eastern European theater began on August 4–7 (17–20), with the invasion of East Prussia by the inadequately prepared troops of the Russian Northwestern Front (commanded by General la. G. Zhilinskii; chief ofstaff, General V. A. Oranovskii). During the East Prussian Operation of 1914 the First Russian Army (General P. K. Rennenkampf, commander), advancing from the east, smashed units of the German I Corps near Stallüponen on August 4(17) and inflicted a defeat on the main forces of the German Eighth Army on August 7 (20) in the battle of Gumbinnen-Goldap. On August 7 (20) the Russian Second Army (commanded by General A. V. Samsonov) invaded East Prussia, delivering an attack on the flank and rear of the German Eighth Army. The commander of the Eighth Army decided to begin a withdrawal of forces from East Prussia beyond the Vistula, but the German supreme command, dissatisfied with this decision, ordered a change in command on August 10 (23), appointing General P. von Hindenburg commander and General E. Ludendorff chief of staff.

The offensive by Russian troops in East Prussia forced the German command to take two corps and one cavalry division from the Western Front and send them to the Eastern Front on August 13 (26). This was one of the causes of the defeat of German forces in the battle of the Marne. Taking advantage of the lack of cooperation between the First and Second armies and the mistakes of the Russian command, the enemy was able to inflict a heavy defeat on the Russian Second Army and then on the First Army and drive them out of East Prussia.

In the battle of Galicia (1914), which took place at the same time as the East Prussian Operation, the troops of the Russian Southwestern Front (commander in chief, General N. I. Ivanov; chief of staff, General M. V. Alekseev) inflicted amajor defeat on the Austro-Hungarian forces. They took L’vov on August 21 (September 3), laid seige to the Przemyśl fortress on September 8 (21), and, pursuing the enemy, reached the Wisłoka River and the foothills of the Carpathians by September 13 (26). A danger arose that Russian forces would invade the German province of Silesia. The German supreme command hurriedly transferred major forces from East Prussia to the region of Częstochowa and Kraków and formed a new army (the Ninth). The objective was to deliver a counter strike against Ivangorod (Dęblin) in the flank and rear of the troops of the Southwestern Front and thus to thwart the attack on Silesia that the Russian forces were preparing. Owing to a timely regrouping of forces carried out by Russian General Headquarters, in the Warsaw-Ivangorod Operation of 1914 the Russian armies stopped the advance of the German Ninth Army and the Austro-Hungarian First Army on Ivangorod by September 26 (October 9) and then repulsed the German attack on Warsaw. On October 5 (18), Russian forces went over to the counteroffensive and threw the enemy back to the initial line.

The Russian armies resumed preparations for an invasion of Germany. The German command moved the Ninth Army from the Częstochowa region to the north, having decided to deliver a blow at the right flank and rear of the Russian offensive grouping. In the Łódź Operation of 1914, which began on October 29 (November 11), the enemy succeeded in thwarting the Russian plan, but an attempt to surround the Russian Second and Fifth armies in the Łódź region failed, and German troops were forced to withdraw, suffering heavy losses. At the same time, Russian troops of the Southwestern Front inflicted a defeat on Austro-Hungarian forces in the Częstochowa-Kraków Operation and reached the approaches to Kraków and Częstochowa. Having exhausted their capabilities, both sides went over to the defensive. The Russian armies, which had experienced a critical shortage of ammunition, dug in on the line of the Bzura, Rawka, and Nida rivers.

In the Balkan theater of operations, Austro-Hungarian forces invaded Serbia on August 12. Defeated in a meeting engagement that began on August 16 in the region of Cer Mountain, by August 24 the Austro-Hungarian forces had been thrown back to their initial position beyond the Drina and Sava rivers. On September 7 they renewed the offensive. A shortage of artillery and ammunition forced the Serbs to withdraw on November 7 to the east of the Kolubara River, but after receiving supplies from Russia and France, they went over to the counteroffensive on December 3. By mid-December they had liberated their country from enemy forces. The two sides took up defensive positions on the river boundary lines.

At the end of 1914 hostilities began in the Middle Eastern theater of operations. On July 21 (August 3), Turkey declared its neutrality, waiting and preparing for a convenient moment to come out on the side of the Central Powers. Encouraging Turkey’s aggressive aspirations in the Caucasus, Germany sent the battle cruiser Göben and the light cruiser Breslau to the Black Sea at the war’s beginning (August 10), to support the Turkish Navy. On October 16 (29),Turkish and German ships unexpectedly shelled Odessa, Sevastopol’, Feodosia, and Novorossiisk. On October 20 (November 2), Russia declared war on Turkey, followed by Great Britain (November 5) and France (November 6). Turkey declared a “holy war” against the Entente powers on November 12.

Turkish ground forces consisted of about 800,000 men. The Turkish First, Second, and Fifth armies were deployed in the Straits region; the Third Army, in Turkish Armenia; the Fourth Army, in Syria and Palestine; and the Sixth Army, in Mesopotamia. Sultan Mehmed V was nominally the supreme commander in chief, but in fact the duties of this position were carried out by Enver Pasha, the minister of war. The chief of staff was a German general, W. Bronsart von Schellendorf. Russia moved its Army of the Caucasus to the Turkish border (commander in chief, General I. I. Vorontsov-Dashkov; deputy commander in chief, General A. Z. Myshlaevskii; 170,000 men and 350 guns). In the second half of October (early November) clashes took place in the Erzurum axis. On October 25 (November 7) the Russians seized fortified positions near Köprüköy (50 km north of Erzurum). However, under pressure from the superior forces of the enemy, the Russians withdrew to their initial positions by November 26 (December 9). The Turkish Third Army went over to the offensive on December 9 (22), but during the Sankamuş Operation of 1914–15 it was routed. On November 10 British expeditionary corps landed at the mouth of the Tigris and Euphrates rivers, forming the Mesopotamian Front. On November 22 the British took Basra, which had been abandoned by the Turks. The British captured al-Qurnah on December 9 and established a firm position in southern Mesopotamia.

Germany was unsuccessful in combat operations in Africa, the Far East, and the Pacific Ocean, losing most of its colonies during a single military campaign. In 1914, Japan seized the Caroline, Mariana, and Marshall islands in the Pacific Ocean as well as Tsingtao, a German naval base in China. The Australians seized the German part of New Guinea and the Solomon Islands, and New Zealand captured the Samoan Islands. Anglo-French forces occupied the German colonies in Africa: Togo in August 1914, the Cameroons in January 1916, Southwest Africa by July 1915, and East Africa by late 1917. (Until the end of the war, German forces continued to conduct partisan actions in the Portuguese colony of Mozambique and the British colony of Southern Rhodesia.)

Naval operations were of a limited character in 1914. On August 28 there was a battle between light forces of the British and German fleets in the North Sea near the island of Helgoland. On November 5 (18) a Russian squadron waged battle against the German ships Göben and Breslau near Cape Sarych in the Black Sea (50 km southeast of Sevastopol’). Damaged, the German ships retreated. The German command attempted to step up the actions of its fleet in British sea-lanes in the Atlantic, Indian, and Pacific oceans. In the battle of Coronel (Nov. 1, 1914), Admiral M. von Spee’s German squadron (five cruisers) defeated Rear Admiral C. Cradock’s British squadron, but on December 8, Admiral von Spee’s squadron was destroyed by Admiral F. Sturdee’s British squadron near the Falkland Islands. By the beginning of November, three additional German cruisers operating in the Atlantic and Pacific had been sunk.

The campaign of 1914 did not produce decisive results for either side. In France both sides went over to a static defense. Elements of trench warfare also emerged in the Eastern European theater of operations. Military operations demonstrated that the general staffs had been mistaken in their prewar predictions that the war would be short. Stockpiles of armaments and ammunition were used up during the very first operations. At the same time, it became clear that the war would be long and that emergency measures must be taken to mobilize industry and to develop the production of arms and ammunition.

Campaign of 1915. The Anglo-French command decided to go over to a strategic defensive in the Western European theater of operations, in order to gain time to stockpile matériel and train reserves. In the campaign of 1915 the main burden of armed struggle was shifted onto Russia. At the demand of the Allies the Russian command planned simultaneous offensives against Germany (in East Prussia) and Austria-Hungary (in the Carpathians). The prospect of protracted war did not please the German high command, which knew that Germany and its allies could not withstand a lengthy struggle with the Entente powers, who possessed superiority in manpower reserves and material resources.Therefore, the German plan for the campaign of 1915 was an offensive plan that counted on rapidly achieving victory. Lacking sufficient forces to conduct offensives simultaneously in the East and the West, the German command decided to concentrate its main efforts on the Eastern Front, with the objectives of crushing Russia and forcing it to leave the war. A defensive posture was planned for the Western Front.

Russia had 104 divisions against the 74 divisions of the Central Powers (36 German and 38 Austro-Hungarian divisions). Attempting to forestall the offensive prepared by the Russians, between January 25 (February 7) and February 13 (26) the German command undertook the Augustów Operation of 1915 in East Prussia. However, they did not attain their objective of surrounding the Tenth Army of the Russian Northwestern Front. In February and March Russian command used the forces of the Tenth, Twelfth, and First armies to carry out the Przasnysz Operation, during which the enemy was thrown back to the borders of East Prussia. On the southern wing of the Eastern Front, the command of the Russian Southwestern Front carried out the Carpathian Operation of 1915. Beseiged by Russian troops, the 120,000-strong Przemyśl garrison surrendered on March 9 (22). Heavy but indecisive fighting continued in the Carpathians until April 20.Experiencing a critical shortage of weapons and ammunition, the Russian forces brought a halt to their active operations in April 1915.

By the summer of 1915 the German command had formed the Eleventh Army with troops transferred from the Western Front to Galicia. The German Eleventh Army and the Austro-Hungarian Fourth Army, under the overall command of the German general A. von Mackensen, went over to the offensive on April 19 (May 2). With an enormous superiority in forces and means (especially in artillery), the enemy broke through the defense of the Russian Third Army near Görlitz. The Görlitz breakthrough of 1915 led to a deep withdrawal of the forces of the Southwestern Front, which left Galicia in May and June.

At the same time, German troops were advancing in the Baltic region. On April 24 (May 7) they took Libau (Liepāja) and reached Shavli (Ŝiauliai) and Kovno (Kaunas). In July the German command attempted to break through the defense of the Russian First Army with an attack of the newly formed Twelfth Army in the Przasnysz region. The Twelfth Army, in cooperation with the Austro-Hungarian Fourth and German Eleventh armies, which were advancing from Galicia toward the northeast, was to surround the main groupings of the Russian forces, which were in Poland. The German plan was unsuccessful, but the Russian troops were forced to withdraw from Poland.

In the Vil’na Operation of August 1915 the Germans attempted to surround the Russian Tenth Army in the Vil’na (Vilnius) region. On August 27 (September 9) the enemy managed to break through the Russian defense and gain the rear of the Tenth Army. However, the Russian command stopped the enemy breakthrough. In October 1915 the front stabilized on the line of Riga, the Zapadnaia Dvina River, Dvinsk, Smorgon’, Baranovichi, Dubno, and the Strypa River. The German command had failed in its plan to force Russia to leave the war in 1915.

At the beginning of 1915 there were 75 French, 11 British, and six Belgian divisions opposing 82 German divisions in the Western European theater of operations. The number of British divisions increased to 31 in September and 37 in December. Planning no major operations, both sides conducted only local battles in this theater of military operations during the campaign of 1915. On April 22 at Ypres the German command became the first to use chemical weapons(chlorine gas) on the Western Front: 15,000 persons were poisoned. The German troops advanced 6 km. In May and June the Allies launched an offensive in Artois. Carried out with insufficient forces, it did not influence the course of combat operations on the Russian Front.

On July 7 the Interallied War Council was formed in Chantilly, to coordinate the strategic efforts of the Entente powers. To assist Russia, the council decided to undertake an offensive on the Western Front, with the objective of drawing considerable German forces away from the Eastern Front. However, offensive operations were carried out only from September 25 to October 6 in Champagne and Artois. At this time active military operations had in fact ceased on the Russian Front. Moreover, the Allied forces were unable to break through the strong enemy defense.

In the Middle Eastern theater of operations Russian forces conducted the most active military operations. In the Alashgerd Operation they cleared the enemy from the area around Lakes Van and Urmia. The increasing activity of German and Turkish agents in Iran forced the Russian command to send troops into the northern part of that country. General N. N. Baratov’s Caucasus Expeditionary Corps (about 8,000 men and 20 guns) was transferred from Tiflis to Baku and transported over the Caspian Sea to the Iranian port of Enzeli (Bandar-e Pahlavi), where it landed on October 17 (30). In November the corps occupied the city of Qazvin, and on December 3 (16) it took the city of Hamadan. Attempts by Germany and Turkey to strengthen their influence in Iran and draw it into the war against Russia were thwarted. The Caucasian Front (commander in chief, Grand Duke Nikolai Nikolaevich), which united all the Russian forces operating in the Middle Eastern theater, was formed in October 1915.

On the Mesopotamian Front, British troops under the command of General C. Townshend moved slowly toward Baghdad in September 1915, but on November 22 they were attacked and routed by the Turks, 35 km from the city, and on December 7 they were beseiged in Kut al-Amarah. The Russian command offered to organize coordinated actions between the British forces and the forces of the Caucasian Front, but the British command refused the offer, because it did not want Russian forces to enter the oil-rich Mosul region. At the end of 1915 the British corps in Mesopotamia was replenished and converted into an expeditionary army. On the Syrian Front the Turkish Fourth Army attempted to take the Suez Canal, by attacking Egypt from Palestine, but the Turks were driven back by two Anglo-Indian divisions. The Turks took up a defensive position in the al-Arish region.

In 1915 the Entente succeeded in drawing Italy into the war on its side. The vacillation of the Italian government was ended by the promises of the Entente powers to give greater satisfaction to Italy’s territorial claims than had been offered by Germany. On Apr. 26, 1915, the Treaty of London was signed. On May 23, 1915, Italy declared war on Austria-Hungary, but it did not declare war against Germany until Aug. 28, 1916. The Italian Army (commander in chief, King Victor Emmanuel III; chief of staff, General L. Cadorna) had 35 divisions, with a total of about 870,000 men and 1,700 guns. On May 24, Italian forces began military operations on two axes: against Trent and simultaneously toward the Isonzo River with the mission of reaching Trieste. The Italians failed on both axes. By June 1915 military operations in the Italian theater had already assumed a static character. Four attacks by Italian forces on the Isonzo River ended in collapse.

In the Balkan theater of operations the position of the Allies became more complicated in October 1915, when Bulgaria entered the war on the side of the Central Powers (the Bulgarian-German Treaty of 1915 and the Bulgarian-Turkish Treaty of 1915). On September 8 (21), Bulgaria proclaimed a mobilization of its army (12 divisions, about 500,000 men). In late September (early October), 14 German and Austro-Hungarian divisions and six Bulgarian divisions under the overall command of Field Marshal General von Mackensen were deployed against Serbia. The Serbs had 12 divisions. To assist Serbia, Great Britain and France, under an agreement with Greece, began on September 22 (October 5) to land an expeditionary corps at Salonika (Thessaloniki) and move it toward the border between Greece and Serbia. On September 24 (October 7) the Austro-German and Bulgarian forces launched a converging offensive against Serbia from the north, west, and east. For two months the Serbian Army courageously repulsed the onslaught of the superior forces of the enemy, but it was compelled to withdraw through the mountains to Albania. Approximately 140,000 men were transported by the Entente fleet from Durrës (Durazzo) to the Greek island of Corfu (Kerkira). The Anglo-French expeditionary corps retreated to the Salonika region, where the Salonika Front was formed in late 1915. The occupation of Serbia secured for the Central Powers the opportunity to establish direct rail communication with Turkey, making it possible to provide Turkey with military assistance.

During 1915 the German Navy continued its attempts to weaken the fleets of its enemies and to undermine the supply of Great Britain by sea. On January 24 a battle took place between British and German squadrons at Dogger Bank (North Sea). Neither side attained success. On Feb. 18, 1915, Germany declared that it was initiating “unrestricted submarine warfare.” The sinking of the passenger steamers Lusitania (May 7) and Arabic (August 19) evoked protests from the USA and other neutral countries, forcing the German government to limit its submarine warfare to actions against warships.

In February 1915 the Anglo-French command began to carry out a naval operation, the Gallipoli Expedition (the Dardanelles Operation of 1915), attempting to use naval forces to cross the Dardanelles, break through to Constantinople, and put Turkey out of the war. The breakthrough failed. In April 1915 a major landing party was set down on the Gallipoli Peninsula, but Turkish forces offered stiff resistance. In December 1915 and January 1916 the Allied command was forced to evacuate the landing forces, which were transferred to the Salonika Front. During the preparation for and execution of the Gallipoli Expedition, there was a bitter diplomatic struggle among the Allies. The expedition was undertaken under the pretext of assisting Russia. In March-April 1915, Great Britain and France had reached an agreement with Russia, under which Constantinople and the Straits would be handed over to Russia after the war, on the condition that the latter did not interfere in the partitioning of Asiatic Turkey. In reality, the Allies intended to capture the Straits and deny Russia access to them. Anglo-French talks on the partitioning of Asiatic Turkey concluded with the signing of the Sykes-Picot Agreement of 1916. In August the German Navy undertook the Moonsund Operation of 1915, which was a failure. The Russian Black Sea Fleet continued to operate in Turkish sea-lanes. On April 21 (May 2), during the Gallipoli Expedition, it shelled the fortifications on the Bosporus.

The campaign of 1915 did not fulfill the hopes of either of the hostile coalitions, but its outcome was more favorable for the Entente. The German command, again failing to solve the problem of crushing its enemies one by one, faced the necessity of continuing a long war on two fronts. The chief burden of the struggle in 1915 was borne by Russia, giving France and Great Britain time to mobilize their economies to meet war needs. Russia also began to mobilize its industry. In 1915 the Russian Front grew more important: in the summer, 107 Austro-German divisions, or 54 percent of all the forces of the Central Powers, were stationed there, as compared to 52 divisions (33 percent) at the beginning of the war.

The war placed a heavy burden on the toiling people. Gradually freeing themselves of the chauvinistic attitudes that had been widespread at the beginning of the war, the popular masses became more and more resolutely opposed to the imperialist slaughter. Antiwar demonstrations took place in 1915, and the strike movement in the warring countries began to grow. This process developed with particular speed and violence in Russia, where conditions were greatly exacerbated by military defeats, and a revolutionary situation developed in the autumn of 1915. At the fronts, there were cases of fraternization among soldiers from hostile armies. The propaganda of the Bolsheviks, led by Lenin, and the left groups of European socialists and Social Democratic parties helped arouse the masses to revolutionary activity. In Germany the International Group was formed in the spring of 1915 under the leadership of K. Liebknecht and R. Luxemburg. (From 1916 the group was known as the Spartacus League.) The Zimmerwald Conference (Sept. 5–8, 1915), an international socialist conference of great importance for the consolidation of revolutionary antiwar forces, adopted a manifesto that signified “a step toward an ideological and practical break with opportunism and social chauvinism” (Lenin, Poln. sobr. soch., 5th ed., vol. 27, p. 38).

Campaign of 1916. By the beginning of 1916 the Central Powers, having expended enormous efforts in the first two campaigns, had considerably depleted their resources but had been unable to force France or Russia to leave the war. The Entente raised the number of its divisions to 365, as against the 286 divisions of the German bloc.

The 1916 operations by the armies of the Central Powers were based on General von Falkenhayn’s plan, according to which the main efforts were again to be directed against France. The main attack was to be delivered in the Verdun region, which was of great operational importance. A breakthrough on this axis would threaten the entire northern wing of the Allied armies. The German plan called for active operations at the same time in the Italian theater, using the forces of the Austro-Hungarian armies. In the Eastern European theater of operations, the Germans decided to limit operations to a strategic defensive. The fundamentals of the Entente’s plan for the 1916 campaign were adopted at a conference in Chantilly (France) on Dec. 6–9, 1915. Offensives were planned for the Eastern European, Western European, and Italian theaters of operations. The Russian Army was to be the first to launch offensive operations, followed by the Anglo-French and Italian forces. The Allies’ strategic plan was the first attempt to coordinate troop operations on different fronts.

The Entente plan did not provide for going over to a general offensive until the summer of 1916. This ensured that the German command would keep the strategic initiative, a factor which it decided to use to its advantage. The Germans had 105 divisions on a front 680 km long in the Western European theater of operations. They were opposed by 139 Allied divisions (95 French, 38 British, and six Belgian divisions). On February 21 the German command began the Verdun Operation of 1916, without an overall superiority in forces. Bitter combat, during which both sides suffered heavy losses, continued until December. The Germans expended enormous efforts but were unable to break through the defense.

In the Italian theater of operations the command of the Italian Army launched its fifth unsuccessful offensive on the Isonzo River in March 1916. On May 15, Austro-Hungarian forces (18 divisions and 2,000 guns) delivered a counter blow in the Trentino region. The Italian First Army (16 divisions and 623 guns), unable to hold back the enemy onslaught, began to withdraw to the south. Italy requested emergency assistance from its allies.

Operations in the Eastern European theater, where 128 Russian divisions were deployed against 87 Austro-German divisions along a front 1,200 km long, were particularly important in the campaign of 1916. The Naroch (Narocz) Operation,which was carried out on March 5–17 (18–30), forced the Germans temporarily to weaken their attacks on Verdun. The Russian offensive on the Southwestern Front (commander in chief, General A. A. Brusilov), which began on May 22 (June 4), was of great importance. The Russians broke through the defense of the Austro-German forces to a depth of 80–120 km. The enemy suffered heavy losses (more than 1 million killed and wounded and more than 400,000 taken prisoner). The command of the Central Powers were forced to move 11 German divisions from France and six Austro-Hungarian divisions from Italy to the Russian Front.

The Russian offensive saved the Italian Army from destruction, eased the situation of the French at Verdun, and hastened Rumania’s entry into the war on the side of the Entente. Rumania declared war on Austria-Hungary on August 14(27), on Germany on August 15 (28), on Turkey on August 17 (30), and on Bulgaria on August 19 (September 1). The Rumanian armed forces consisted of four armies (23 infantry and two cavalry divisions; 250,000 men). The Russian 47th Army Corps was moved across the Danube to the Dobruja region to assist the Rumanian forces. With Russian support, Rumanian forces launched an offensive in Transylvania on August 20 (September 2) and later in the Dobruja region, but they did not attain success. The Austro-German command concentrated General von Falkenhayn’s army group in Transylvania (the German Ninth Army and the Austro-Hungarian First Army, with a total of 26 infantry and seven cavalry divisions) and Field Marshal General von Mackensen’s German Danube Army in Bulgaria (nine infantry and two cavalry divisions). On September 13 (26) both groups, under the overall command of General von Falkenhayn, went over to the offensive at the same time. The Rumanian Army was routed.

On November 22 (December 6), German forces entered Bucharest, which the Rumanians abandoned without a fight. The Russian command moved in 35 infantry and 13 cavalry divisions to assist Rumania. Russia had to form a new Rumanian front. By the end of 1916, its forces had stopped the advance of the Austro-German armies on the line between Focşani and the mouth of the Danube. The formation of the Rumanian Front increased the total length of the front line by 500 km and diverted about a fourth of Russia’s armed forces, thereby worsening the strategic position of the Russian Army.

After lengthy preparation, Anglo-French forces opened a major offensive on the Somme River on July 1, but it developed very slowly. Tanks were used for the first time on September 15 by the British. The Allies continued the offensive until mid-November, but despite enormous losses, they advanced only 5–15 km and failed to break through the German static front.

In the Middle Eastern theater of operations the forces of the Russian Caucasian Front successfully carried out the Erzurum Operation of 1916, the Trabzon Operation of 1916, and the Erzincan and Oğnut operations, taking the cities ofErzurum, Trabzon, and Erzincan. General N. N. Baratov’s I Caucasus Cavalry Corps launched an offensive on the Mosul and Baghdad axes, with the objective of assisting the British, who were beseiged at Kut al-Amarah. In February the corps took Kermanshah, and in May it reached the Turkish-Iranian border. With the surrender of the garrison at Kut al-Amarah on Apr. 28, 1916, the Russian corps brought a halt to its advance and took up a defensive position east of Kermanshah.

In naval operations, the British fleet continued its long-range blockade of Germany. German submarines were active on the sea-lanes. The system of minefields was improved. The battle of Jutland (1916) was the war’s only major naval battle between the main forces of the British Navy (Admiral J. Jellicoe) and the German Navy (Admiral R. Scheer). The battle involved 250 surface ships, including 58 capital ships (battleships and battle cruisers). As a result of its superiority in forces, the British fleet was victorious, even though it suffered greater losses than the German fleet. The defeat shattered the German command’s belief that it was possible to break through the British blockade. The Russian Black Sea Fleet continued its actions on enemy sea-lanes, blockading the Bosporus from August 1916.

The campaign of 1916 did not result in the achievement of the objectives set at the beginning by either coalition, but the superiority of the Entente over the Central Powers became evident. The strategic initiative passed fully to the Entente, and Germany was forced to go over to the defensive on all fronts.

The bloody battles of 1916, which involved enormous human sacrifices and great expenditures of matériel, were depleting the resources of the belligerent powers. The situation of the working people continued to worsen, but the revolutionary movement also continued to grow stronger in 1916. The Kienthal Conference of internationalists (Apr. 24–30, 1916) played an important role in increasing solidarity among revolutionary forces. The revolutionary movement developed with particular speed and turbulence in Russia, where the war had finally revealed to the popular masses the complete decadence of tsarism. A powerful wave of strikes swept over the country, led by the Bolsheviks under the slogans of struggle against the war and the autocracy. The Middle Asian Uprising, a national liberation movement, took place from July to October 1916. In the autumn a revolutionary situation took shape in Russia. The inability of tsarism to win the war aroused discontent among the Russian imperialist bourgeoisie, who began to prepare a palace revolution. The revolutionary movement grew stronger in other countries. The Irish Rebellion, or Easter Rising (Apr. 24–30, 1916), was harshly suppressed by British troops. On May 1, K. Liebknecht led a massive antiwar demonstration in Berlin. The growing revolutionary crisis forced the imperialists to direct their efforts toward quickly ending the war. In 1916, Germany and tsarist Russia attempted to open separate peace negotiations.

Campaign of 1917. As the campaign of 1917 was prepared and carried out, the revolutionary movement grew considerably stronger in every country. Protest against the war with its enormous losses, against the sharp decline in the standard of living, and against the increasing exploitation of the working people became stronger among the popular masses at the front and in the rear. The revolutionary events in Russia had a tremendous effect on the subsequent course of the war.

By the beginning of the campaign of 1917, the Entente had 425 divisions (21 million men), and the Central Powers, 331 divisions (10 million men). In April 1917 the USA entered the war on the side of the Entente. The fundamental principles of the plan for the campaign of 1917 were adopted by the Allies at the third conference in Chantilly on Nov. 15–16, 1916, and were made more specific in February 1917 at a conference in Petrograd. The plan provided for limited operations on all fronts early in the year, to hold the strategic initiative. In the summer the Allies were to go over to a general offensive in the Western European and Eastern European theaters of operations, with the objective of finally crushing Germany and Austria-Hungary. The German command rejected offensive operations on land and decided to focus its attention on waging “unrestricted submarine warfare,” believing that it could disrupt the British economy in six months and force Great Britain out of the war. On Feb. 1, 1917, Germany declared “unrestricted submarine warfare” on Great Britain for the second time. Between February and April 1917, German submarines destroyed more than 1,000 merchant ships of the Allied and neutral countries (a total of 1,752,000 tons). By mid-1917, Great Britain, which had lost merchant ships amounting to approximately 3 million tons, found itself in a difficult situation. It could only make up for 15 percent of the losses, and this was not enough to sustain the export and import traffic essential to the country. By the end of 1917, however, after the organization of a reinforced defense of the sea-lanes and the development of various means of antisubmarine defense, the Entente managed to reduce its merchant ship losses. “Unrestricted submarine warfare” did not fulfill the hopes of the German command. Meanwhile, the continuing British blockade was starving Germany.

In executing the general plan for the campaign, the Russian command carried out the Mitau Operation on Dec. 23–29, 1916 (Jan. 5–11, 1917), with the objective of diverting part of the enemy forces from the Western European theater of operations. On February 27 (March 12) a bourgeois democratic revolution took place in Russia (the February Bourgeois Democratic Revolution of 1917). Under the leadership of the Bolsheviks, the proletariat, demanding peace, bread, and freedom, led the majority of the army, which was made up of workers and peasants, in the overthrow of the autocracy. However, the bourgeois Provisional Government came to power. Expressing the interests of Russian imperialism, it continued the war. Deceiving the masses of soldiers with false promises of peace, it opened an offensive operation with the troops of the Southwestern Front. The operation ended in failure (the June Operation of 1917).

By the summer of 1917 the combat capability of the Rumanian Army had been restored with Russian assistance, and in the battle of Mărăşeşti (July-August) Russian and Rumanian forces repulsed the German forces, which were attempting to break through to the Ukraine. On August 19–24 (September 1–6), during the Riga defensive operation, Russian troops surrendered Riga. The revolutionary sailors of the Baltic Fleet heroically defended the Moonsund Archipelago in the Moonsund Operation of Sept. 29 (Oct. 12)-Oct. 6 (19), 1917. These were the last operations on the Russian Front.

The Great October Socialist Revolution took place on Oct. 25 (Nov. 7), 1917. The proletariat, in alliance with the poorest peasants and under the leadership of the Communist Party, overthrew the power of the bourgeoisie and the landlords and opened the era of socialism. Carrying out the will of the people, the Soviet government addressed a proposal to all the warring powers, calling for the conclusion of a just democratic peace without annexations and reparations (the decree on peace). When the Entente powers and the USA refused to accept the proposal, the Soviet government was forced to conclude an armistice with the German coalition on December 2(15) and begin peace negotiations without the participation of Russia’s former allies. On November 26 (December 9), Rumania concluded the Focşani armistice with Germany and Austria-Hungary.

In the Italian theater of operations there were 57 Italian divisions opposing 27 Austro-Hungarian divisions in April 1917. Despite the numerical superiority of the Italian forces, the Italian command was unable to attain success. Three more offensives against the Isonzo River failed. On October 24, Austro-Hungarian troops went over to the offensive in the Caporetto region, broke through the Italians’ defense, and inflicted a major defeat on them. Without the assistance of 11 British and French divisions transferred to the Italian theater of operations, it would not have been possible to stop the advance of the Austro-Hungarian forces at the Piave River in late November. In the Middle Eastern theater of operations British troops advanced successfully in Mesopotamia and Syria. They took Baghdad on March 11 and Be’er Sheva’ (Beersheba), Gaza, Jaffa, and Jerusalem in late 1917.

The Entente plan of operations in France, which was developed by General Nivelle, called for delivering the main attack on the Aisne River between Reims and Soissons, in order to break through the enemy defense and surround the German forces in the Noyon salient. Learning of the French plan, by March 17 the German command withdrew its forces 30 km to a previously prepared line known as the Siegfried Line. Subsequently, the French command decided to begin the offensive on a broad front, committing to action major forces and means: six French and three British armies (90 infantry and ten cavalry divisions), more than 11,000 guns and mortars, 200 tanks, and about 1,000 airplanes.

The Allied offensive began on April 9 in the Arras region, on April 12 near St. Quentin, and on April 16 in the Reims region and continued until April 20–28 and May 5 on some axes. The April offensive (the “Nivelle slaughter”) ended incomplete failure. Although about 200,000 men had been lost, the Allied forces had not been able to break through the front. Mutinies broke out in the French Army, but they were cruelly suppressed. A Russian brigade that had been in France since 1916 took part in the offensive on the Aisne River. In the second half of 1917, Anglo-French forces carried out a number of local operations: Messines (June 7-August 30), Ypres (July 31-November 6), Verdun (August 20–27),and Malmaison (October 23–26). At Cambrai (November 20-December 6) massed tanks were used for the first time.

The campaign of 1917 did not produce the results anticipated by either side. The revolution in Russia and the lack of coordinated action by the Allies thwarted the Entente’s strategic plan, which had been intended to crush the Austro-Hungarian bloc. Germany succeeded in repulsing the enemy attacks, but its hope of attaining victory by means of “unrestricted submarine warfare” proved vain, and the troops of the coalition of Central Powers were forced to go over to the defensive.

Campaign of 1918. By early 1918 the military and political situation had changed fundamentally. After the October Revolution Soviet Russia quit the war. Under the influence of the Russian Revolution, a revolutionary crisis was ripening in the other warring powers. The Entente countries (excluding Russia) had 274 divisions at the beginning of 1918—that is, forces approximately equal to those of the German bloc, which had 275 divisions (not counting 86 divisions in the Ukraine, Byelorussia, and the Baltic region and nine divisions in the Caucasus). The military and economic situation of the Entente was stronger than that of the German bloc. However, the Allied command believed that even more powerful human and material resources would have to be prepared, with the assistance of the USA, in order to finally crush Germany.

Strategic defensives were planned for all theaters of military operations in the campaign of 1918. The decisive offensive against Germany was postponed until 1919. Their resources running out, the Central Powers were eager to end the war as quickly as possible. Having concluded the Treaty of Brest-Litovsk with Soviet Russia on Mar. 3, 1918,