Who gains from the cut in the minimum wage proposed in the four year plan? Well, according to Brian Cowen it’s the very people who are on the minimum wage just now. As usual with Cowen, it is a question of denying what is abundantly clear to everyone else.

After weeks of dancing the seven veils, trying to hide what they were up to, the government, the EU and the IMF announced on prime time Television today (28 November) that they have signed up to an €85 billion bailout. The money which has 5.8% interest rate attached to it will go to recapitalise the banks( €10bn); fund the budget (€50bn) and deal with “banking contingencies” (€25bn). So in other words the whole lot is going to bail out the banks and keep the government finances going.

100,000 marched from Wood Quay to the GPO today in protest against the austerity measures outlined in the four year plan despite the cold wintery weather. A few even demonstrated in a curagh on the Liffey – the workers navy has arrived. Meanwhile the government are behind closed doors discussing the bailout package with the officials.

Despite some increasingly desperate and clumsy attempts to hide the fact that they were in discussions with the EU and the IMF over a bailout the Government was eventually forced to admit what everyone already knew; that they were desperate to secure a huge bailout to attempt to stabilise the Irish economy. The announcement was met with a huge wave of anger and the thin veneer of normality in Ireland has been ripped apart on prime time TV.

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.

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)

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