08) THE LESSONS OF CYPRUS

People's Voice Editorial

            Global stock markets heaved a "sigh of relief" at the debt‑financing agreement in Cyprus, but the deal spells disaster for the people. And the consequences may spread far beyond the small Mediterranean island. On March 25, the head of the Eurozone's finance ministers suggested that the bailout could be a template for crises elsewhere. Jeroen Dijsselbloem later retracted his comment, but the cat is out of the bag. International finance capital is prepared to seize bank deposits of working people to protect the profits and assets of the capitalist ruling class. Only massive protests blocked plans to grab a percentage of smaller deposits in Cyprus, but this theft may soon be back on the agenda.

            Demanding a referendum, the Cypriot communists (AKEL) condemn the agreement as "the climax of the first phase of the Troika's plans against the Cypriot people." The deal means higher unemployment, more austerity, cuts and privatizations, and closures for many small and medium businesses. The island's massive offshore gas fields will be controlled by giant energy monopolies rather than owned by the Cypriot people.

            The broader attempt to rescue the Euro through the "three pillars of austerity, cuts and privatizations" is leading the peoples of southern Europe to disaster. In fact, the global financial meltdown of 2007‑08 is far from over. The drive by the ruling class to make workers pay the full cost of this systemic crisis is pushing hundreds of millions into poverty, fuelling another round of crises. Militant defensive resistance struggles are needed. But the real solution lies in building a powerful, united movement for a genuine People's Alternative against neoliberalism. Such a strategy can lead to the replacement of the collapsing "private profit" economy with a socialist model, based on working class political power and collective, democratic ownership of productive wealth. That's the real choice facing the working class, including here in Canada.

(The above article is from the April 1-15, 2013, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $30/year, or $15 low income rate; for U.S. readers - $45 US per year; other overseas readers - $45 US or $50 CDN per year. Send to People's Voice, c/o PV Business Manager, 706 Clark Drive, Vancouver, BC, V5L 3J1.)