Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://secure.socialistparty.org.uk/issue/757/16344

From The Socialist newspaper, 20 March 2013

Cypriot workers resist bank-robbing Troika

After months of 'calm' the capitalist debt crisis has resurfaced over the banking meltdown in Cyprus, sending financial markets into a spin. EU ministers and the newly elected right-wing Greek Cypriot president have demanded that small savers, ie Cypriot workers, pay €billions for a banking bailout.

But angry workers in Cyprus are refusing to accept these capitalist dictats, with Cypriot CWI members helping to organise mass protests outside parliament. Already, the government is making concessions.

Athina Kariati of the Socialist Party's sister organisation in Cyprus spoke to the Socialist about what is required to solve the crisis in the interests of the working class.

Who is responsible for the current financial crisis?

The European financial crisis is now at its sharpest here in Cyprus. The capitalist class is responsible for this crisis.

The economy in Cyprus was in relatively good shape compared to other EU countries but over the last 18 months the crisis in the banking sector has meant that the country is now facing bankruptcy.

The main problem is that the Cypriot banks invested in Greek bonds in order to make quick profits but because of the 'haircut' which Greek bondholders had to take, this caused a massive problem of liquidity and the small economy of Cyprus has been unable to recapitalise the banks.

It is clear that the crisis is the fault of the banks not public sector workers or the general population.

As part of the EU bailout the Cyprus government, headed by president Nicos Anastasiades, is attempting to make savers pay for the bank debt. What has been the response of people to this imposed levy?

The response has been immediate. In recent years there hasn't been many demonstrations, however, because the EU is demanding that small depositors pay for the bank bailouts, there were two demos yesterday (Monday 18th) with 1,000 people gathering outside parliament opposed to this EU 'haircut'.

People are very angry and frustrated. There have been incidents of farmers going into the banks with their tractors demanding their money! Long lines of people queued outside the banks, which are closed and will not reopen until Thursday.

Today there will be another mass demo outside parliament with growing calls from people to end the government's link to the Troika [the European Central Bank, EU and International Monetary Fund] and refuse to follow its dictats. People rightly suspect that if they accept a haircut today then who is to say that the Troika won't demand a further haircut tomorrow?

Will the government be forced to back down? What do you think is likely to happen next?

That's a very big question! The government has already understood that the agreement they made with the EU officials cannot be easily implemented.

For that reason it has delayed the convening of parliament to debate the crisis. They are trying to find a way to pass legislation but all the parties of the ruling class are divided. There is no guarantee that the legislation will be approved.

However, from the standpoint of the working class it is clear that the government will try to pass some amended legislation to make it seem less painful. But we cannot trust these capitalist politicians to protect the interests of small savers.

Moreover, even if some amended legislation is voted through parliament, in only three months' time we will be back to square one because that is when the EU will stop financing the banks. So every three months new cuts to our living standards will be demanded.

Also, there is the additional problem of Russian capital deposited in Cypriot banks. So even if the government and EU agree the terms of a bank bailout the banks will still face collapse because the Russian oligarchs will remove their capital funds from Cyprus.

What does the CWI in Cyprus propose to end this crisis?

We are completely opposed to the Troika's and government's demands to make working class people pay for this crisis.

Because the crisis is clearly centred on the banking sector we call for the nationalisation of the banking system under democratic workers' control. We say: refuse to pay the 'debt'. That means both the government's existing debt and the new €17 billion debt they are demanding the Cypriot people pay.

We also say nationalise those industries which are failing due to the economic crisis. Stop tax evasion so that we can find the money to finance government services.

To implement these measures will require building a strong socialist opposition and a new left government, one that (unlike the last left-leaning government) does not try and manage the crisis-ridden capitalist system.

Donate to the Socialist Party

Coronavirus crisis - Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to click here to donate to our special coronavirus appeal.

In The Socialist 20 March 2013:


Socialist Party news and analysis

Axe the bedroom tax!

Trade unions must lead anti-cuts fightback

PCS preparing for 20 March strike, and more action after

Another Dooh Nibor budget - stealing from the poor to give to the rich

Them & Us


Socialist Party NHS campaigning

Prescription: Fight profiteering from health

New faces - same Welsh Labour NHS cuts!

Stop Mid-Yorks NHS cuts


International socialist news and analysis

Iraq: Ten years after 'shock and awe'

Cypriot workers resist bank-robbing Troika

Alexis Tsipras in London


Socialist Party reports and campaigns

Are you sick of your boss? Enough is enough

Fight grows against privatisation at Sussex Uni

TUSC election campaign has an impact in Gospel Oak

Building TUSC in the unions

Socialist Students win debate with Labour

North West TUC fails to debate councillors and cuts

Help build an alternative to the pro-cuts press with a May Day greeting

Socialist Party subs appeal


Socialist Party workplace news

Another victory in the battle against Unison witch-hunt

Blacklisted electrician wins his case

Revenue and Customs wants to end face-to-face contact

Clapham march to save fire station

Workplace news in brief


Socialist Party reviews

Books that inspired me

Riots Reframed - starting the debate


 

Home   |   The Socialist 20 March 2013   |   Join the Socialist Party

Subscribe   |   Donate   |   PDF  |   ebook






Related links:

Cyprus:

triangleGreece crisis - please vote Leave

triangleSolidarity with Cypriot workers

triangleTransport workers' international meeting

triangleCyprus economic meltdown: Build a socialist alternative to austerity

EU:

triangleAs coronavirus crisis intensifies, class antagonisms deepen

triangleGreece-Turkey border refugee crisis

triangleThem & Us

triangleBrexit and British capitalism - why Johnson's juggernaut is set to jackknife

Banks:

triangleThem & Us

trianglePrince Andrew outrage exposes establishment

triangleKarro Foods victory Hull

Capitalist:

triangleState intervention shows what is possible

triangleThe new crisis and its consequences

Debt:

triangleLebanon - mass protests cut across sectarian division

European:

triangleThe 'national unity' threat to Corbynism

International

International

18/3/20

France

French local elections: CWI candidate elected

18/3/20

Coronavirus

United States: private healthcare exposed as Trump throws money at markets

18/3/20

Coronavirus

'Health not profit' strike wave sweeps Italy

11/3/20

US

How can Trump be ousted from the White House?

11/3/20

Italy

Italy on lockdown: lack of resources and democracy causes panic

11/3/20

Greece

Greece-Turkey border refugee crisis

11/3/20

South Korea

South Korea shows capitalism has money to respond to coronavirus

4/3/20

Women

A legacy of women workers and the class struggle

4/3/20

India

India: Bloody pogrom fuelled by Modi's sectarianism

26/2/20

Germany

Germany: Right-wing terror attacks - fight racism, fight capitalism!

26/2/20

Northern Ireland

Northern Ireland's strike wave

19/2/20

China

Coronavirus crisis shakes Chinese regime

19/2/20

Yemen

Yemen's desperate civil war fuelled by imperialism and regional powers

12/2/20

Ireland

Sinn Fein harnesses working-class anger to top poll

12/2/20

Lebanon

Lebanon - mass protests cut across sectarian division

triangleMore International articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: info@socialistparty.org.uk

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 07748 534 891

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 079 3539 1947

West Mids: 024 7655 5620

Yorkshire: 077 0671 0041

ABOUT US

ARCHIVE

Alphabetical listing


April 2020

March 2020

February 2020

January 2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999