Portugal’s Left Bloc will be participating in the European Conference Against Austerity in London on 1 October. – Published on Counterfire, August 30, 2011 (first on The Bullet, and on Global Research.ca).
Jorge Costa is a leading member of the Left Bloc and is a former Left Bloc MP. He spoke to Feyzi Ismail about the crisis and the need for Europe-wide mobilisation. The European Conference Against Austerity will take place on Saturday, 1st October at the Camden Centre in London, with a range of international speakers, debates and workshops.
… Can you describe the IMF intervention and the current political situation?
- The political climate is very subdued in the country for the moment. Of course it was already quiet because of summer but generally speaking we are still living the aftermath of the elections and the victory of the right. Elections were held in June after the resignation of the Prime Minister, José Sócrates, of the Socialist Party – the equivalent of New Labour in Britain. The government is now a coalition made up of the main bourgeois party, the PSD (Partido Social Democrata), which is conservative, and the PP (Partido Popular), which is even more rightwing.
- There were austerity measures in place throughout the socialist government, with wage cuts and cuts in welfare. But last year there were two new austerity packages introduced, which included rises in VAT, freezes on pensions, further wage cuts, cuts in public services and a big plan of privatisation. So half of the Greek-style austerity package was already introduced before the IMF coming in, during the socialist government, and now the other half is being implemented through the IMF directly, by their presence here, and by the current government.
- The IMF is loaning Portugal €78 billion from this year, for three years. It’s going to condition every aspect of society: wages, pensions, welfare, public services, labour laws and so on. Unemployment benefit will be reduced by a third. All this together will produce an even bigger rise in unemployment and the recession will deepen.
What is the public mood over the bailout?
- Many people believe that things will be better after this. That was the spirit that led them to vote for the political parties that support the troika – the EU, European Central Bank and the IMF. Most people think the left is correct in theory, but that it has no policy to answer the blackmail of the bankruptcy, and so many people voted for the parties that brought in the IMF. Soon I believe people will understand this policy is wrong and it will not answer their problems. They will understand that it will not pay the debt and it will lead us to a situation in which we have a bigger debt and fewer resources to address it.
- There is also fear. Unemployment is exploding – we are now reaching figures of 800,000 unemployed, which is 12 percent of the population. So it’s very high and this produces a social fear of course. We feel it in a very real way. So we are living in a moment when people are waiting to see what happens. The impact of the cuts will be felt more deeply in the coming months. Further wage cuts and tax rises will be implemented from next month, and Christmas bonuses will be cut from this Christmas. So this will change the political and social situation. The left must prepare itself and discuss ways of mobilising amongst the widest section of the population under these new conditions.
Do people look at Greece and say that it only delayed another crisis? … //
… Are there circumstances in which the Left Bloc would argue that the debt should not be paid at all?
- The troika is building the conditions for that. They are creating an economy in this country that will bring us to a level of indebtedness that will obligate us to refuse the debt. That’s for sure. But our position for the moment is to renegotiate the debt with our creditors, refuse the illegitimate parts of this debt and make huge fiscal reforms to generate the resources to face the social crisis.
What further mobilisations are planned and how are the unions involved?
- On 10th September there is an appeal for a demonstration in support of teachers, whose numbers are now being reduced dramatically. The unions calculate between 15 and 25,000 teachers will lose their jobs starting this September because class sizes and working hours are being reduced. Over the past few years there have been tens of thousands of teachers contracted by the state under very precarious conditions, and now we are seeing the first victims of this policy. So the demonstration on 10th September will be very important.
- Also the organisers of the 12th March demonstration are now calling another demonstration, which is an international appeal, together with other movements, including those of precarious young people and the unemployed, on 15th October. It’s just beginning as a grassroots initiative, so the Left Bloc is in solidarity with it. We will help mobilise for it, and participate in it, and some of our members are helping to organise it, but we want it to live and create its own space in society.
- We believe Europe can turn 15th October into a continental-scale mobilisation against cuts and austerity. But we also need to develop new forms of permanent, direct, democratic participation, which are not necessarily the old trade unions, or not necessarily the old associations. We should learn from the good experiences that workers and mass movements have made in the last century to understand what should be done to fight.
- We should not be conservatives and say that the old forms of organisation are the only effective ones, but we should also not worship the cult of the new. We should see new tools and forms of expression, participation and democracy as ways of avoiding the same mistakes, of finding better ways of engaging people – and large numbers of people – to have a say and develop their consciousness. At the same time we need to build antagonistic organisations, the Counterfires. We need more than ‘likes’ on Facebook. We need to have our own media, we need to have our own organisation, not just in the squares but also inside workplaces and schools – to put fear into the ruling classes, which is the sentiment on the streets of Greece.
How does the Left Bloc organise and what has it been doing specifically around the IMF intervention?
- We organise in local groups and across sectors, including the environment, youth and students, media and others. The website in particular is important for us – at peak times we have over 10,000 visits a day. At a national level, we also co-ordinate amongst the municipalities, and our members participate in various campaigns. We have a free newspaper that comes out every two months with a circulation of 150,000 copies. This has been a real success for us. In the past there has been a tradition of selling the paper, but we lost it. The fact is that people have had enough of it, they are used to free papers, and of course there is the web. We reach more people and that’s the point. People respect it as a paper and take it, and members engage with it because it’s a big job to produce and give out.
- We also have co-ordination meetings, assembly meetings and we organise public meetings. There are hundreds of initiatives locally and Lisbon-wide. And we have branches across the country in all the main cities and in most urban areas. We have elected people at local level and have two MPs in the European Parliament. The founding organisations of the Left Bloc organise as associations, with their own activities and publications. There are three associations of this kind: a group that split from the Communist Party, known as Manifesto, UDP (União Democrática Popular), which has Marxist-Leninist roots, and PSR or Revolutionary Socialist Party, which is part of the Fourth International. The Left Bloc is organising its annual socialism conference 9-11th September and a conference on debt the first week of November.
- The Left Bloc is also participating in an audit commission on the debt. The idea was along the lines of a Citizens’ Audit Commission, like in Greece, based on the voluntary participation of union activists, left activists and critical economists that can analyse parts of the debt, understand what’s been spent on specific things, like soccer stadiums, submarines, corruption, health and so on, and produce a report on the kind of debt we have. So our critique of the debt is informed. But it’s only just beginning.
Most economists who understand the financial crisis in Europe talk in apocalyptic terms. What do you see happening?
- Yes, the possibility of a total crisis in Europe, with the disintegration of the Euro and an even deeper recession than the one we have now, is a possibility. It’s even a possibility worldwide because of the repercussions that the recessions in the US and Europe can have on emerging economies. But in Europe they are playing a very risky game. The German bourgeoisie is leading the process in a risky and arrogant way since they are trying to transfer as much as they can and as quickly as possible into their own pockets. And although they are being told by every Nobel prize-winning economist and even moderate politicians to watch out – you could be bringing Europe’s financial system to a point of no return – they are still trying to take it as far as they can. The German and French banks are mainly the ones going in this direction.
- The problem is that German and French banks were the ones that built the debt of the peripheral economies. These banks lent money to the Portuguese banks so they could lend, in a very easy way, to ordinary people: to buy houses instead of renting them, to build new houses instead of renovating them. If you go to the centre of Lisbon houses everywhere are abandoned. Ask the German banks how this was possible.
- Mass private debt has been created over the past 20 years, but mainly in the last decade. Germany was able to produce a high degree of capital accumulation over this period mainly for two reasons – they were selling technology to emerging countries and at the same time cutting wages in Germany. So they put this capital on the financial markets and lent it to the peripheral economies to favour credit policies that in the end went wrong. And the bailouts have been transferred to the state. In Portugal, the way public debt has risen is very visible. The banks pay almost no taxes in Portugal – they find ways of avoiding or minimising taxes. Last year they paid around 5 percent. The Left Bloc has had some important interventions around this but there is no mass campaign against it.
- There will be more demonstrations in Athens very soon, and in Spain the possibility also exists for this movement to develop. In Portugal there will be a movement. The ruling classes in Europe are turning to repression in a very harsh way, and they will do it across Europe. What happened in Britain over the riots will be followed elsewhere. That’s why we need mass mobilisation at a European level, to stop the assault of the ruling classes and defend democracy.
- The Left Bloc will definitely have a presence at the European Conference Against Austerity in London. We are very interested in building wider unity and popular participation around the crisis. And we must build this unity across borders and on a European scale. That’s why this conference is so important.