Ireland

News that the Coalition reached a deal with the EU and IMF hasn’t come as a shock. Reports were circulating for days that the EU and the Finance Ministry were locked in discussions and some have even claimed that the IMF was been briefing the heavyweight financial bourgeois press internationally in an attempt to pressurise the coalition and the opposition parties into seeking a deal. This article was written prior to the announcement of the deal but its analysis has been confirmed by subsequent events.

We are reprinting this article because the arguments used by Connolly in answering the capitalists are as valid today as when they were written in 1901. Taken from the Workers’ Republic, May 1901.

Each measure to which capitalism is constrained in order to make a step forward in restoring equilibrium, each and all of this immediately acquires a decisive significance for the social equilibrium, tends more and more to undermine it, and ever more powerfully impels the working class to struggle.” (Leon Trotsky 1921)

Dr Jim McDaid’s decision to resign as a TD is just the latest symptom in the terminal crisis affecting the Fianna Fáil/Green coalition. While the government still holds a tenuous majority of three seats, there are four by-elections pending, the chances are that we will be propelled into a new general election sooner rather than later. Doubtless Cowen and Lenihan will try and hang on. But the opinion polls and the economic catastrophe mean that the coalition is likely to lurch from one crisis to another.

The cuts announced by the British Chancellor of the Exchequer represent around 6.9% in headline public spending cuts in the North over the next four years. This amounts to some £4 billion in revenue spending, but there is also a 40% reduction to come in capital spending on roads, hospitals and other public projects.

The Sunday Independent carried several articles in its October 10th edition leaving absolutely no room for doubt that the knives are being sharpened and the target is the Croke Park Agreement. Such is the venom for the trade unions and the working class that even James Connolly was dragged into the argument – on the side of the bosses! Here we outline some of the arguments from the Sunday Independent and we also let James Connolly speak for himself.

News that Green Party Leader John Gormley would like to see a National Government to sort out the crisis in the economy has now been replaced with the revelation that he believes it’s “too early” to talk about such things. However, it appears that moves are afoot on behalf of the Green Party to draw the opposition parties into cross party talks around plans for the €7bn super budget which will be presented by Brian Lenihan to cover the next four years.

It was announced last week on Thursday [September 30, 2010] that the cost of bailing out AIB has reached €29.5 billion, which might in fact be €34 billion; and that the total cost of the bailout could be €46 billion, some 32% of Gross Domestic Product. The implications of this are a recipe for class struggle and massive turbulence within the state.

The last few days have seen a flurry of activity, the AIB bill has been presented, the polls show Labour miles ahead of both Fianna Fáil and Fine Gael. The economy is faltering and there is a four year budget plan on the way, although it is unlikely to be delivered to Leinster House via a cement lorry. But what are the prospects for the main parties and how do the trade union struggles over the last two years fit into the equation?

Capitalism is in a deep crisis and the bourgeois are planning austerity programmes that could last for a generation. The crisis in the north took longer to hit, but that’s all changed. The Tories have already telegraphed the likely cuts in the north and the CBI has weighed in with its “advice” on how to deal with the crisis. But what would their proposals mean?

As part of his campaign for General Secretary of UNITE Jerry Hicks will be addressing a series of public meetings and visiting a number of workplaces across Ireland this week (beginning the 27th September).

There are storm clouds on the horizon for the economy in the North. While the recession took longer to bite than in the south this only reflects the weakness of capitalism and the predominance of public sector employment. There are now as many people who are economically inactive (26%) than work in “private industry”. But the crisis has now caught up with a vengeance and it is only going to get worse.

Symptoms are the physical signs of an underlying problem. At the moment the Irish economy has a series of symptoms which would send the average doctor fleeing to the hills. But according to the Minister for Finance, Brian Lenihan, everything is stable and the economy is fine thank you very much. Of course Mr Lenihan’s analysis was designed for the press and to settle the nerves of the international speculators.

A ban on trade union donations to the Labour Party will not benefit anyone other than the enemies of the working class and the organised working class in particular.

The Green Party leader John Gormley has announced that the ban is to be introduced, alongside a ban on corporate donations, so much for the Green Party’s veneer of radicalism. This “radicalism” has become very stale and particularly mouldy also. Of course the proposed legislation is designed to appear even handed.

Recently we reported on the vote of the public sector unions to back the Croke Park Deal. We argued that despite the apparent victory of the ideas of “Social Partnership” as espoused by Peter McLoone and David Begg; under the present conditions it would be extremely difficult for any deal to be brokered that was worth the paper it was written on.