European Economy
Germany: Siemens hives off energy and power plant division
By Elisabeth Zimmermann, 15 May 2019
Shareholders expect jobs and working conditions to be attacked and dismantled even faster than they have been in order to boost profit rates.
Half of all land in England owned by less than one percent of the population
By Margot Miller, 27 April 2019
The aristocracy and gentry still own 30 percent of the land, while 18 percent is owned by corporations and a staggering 17 percent is in the possession of oligarchs and bankers.
UK: May unable to stem Tory crisis over Brexit, but still propped up by Corbyn
By Robert Stevens, 26 April 2019
For Corbyn’s faction, the political function of these talks over Brexit is to side-line a discussion on the political crisis facing the government that could precipitate a general election.
International finance backs Socialist Party in Spain’s April 28 elections
By Alejandro López, 26 April 2019
European Union sources are warning of prolonged political instability and looking to the PSOE and Podemos for an answer.
George Galloway declares for Nigel Farage’s Brexit Party
By Chris Marsden, 24 April 2019
Having spent over three years hailing Corbyn as the left rebirth of Labour, Galloway now parrots the claim that Farage’s politics articulate the views of the working class on what he insists is the main issue of the day—Brexit.
Bayer cuts 4,500 jobs in Germany
By Dietmar Gaisenkersting, 23 April 2019
Chemical giant Bayer AG is cutting 4,500 jobs in Germany, almost one in seven of its 32,000 positions in the country.
OECD report: Growth of social inequality fuels global political and economic crisis
By Jessica Goldstein, 23 April 2019
The findings of the report showed that among OECD countries, a growing number of middle-income earners perceive “that the current socioeconomic system is unfair.”
Two giant German banks plan merger
By Gustav Kemper and Peter Schwarz, 12 April 2019
The German government is pushing for the combination of Deutsche Bank and Commerzbank to establish a financial behemoth capable of competing with the US and China.
As trade tensions increase, IMF lowers forecasts for global growth
By Nick Beams, 11 April 2019
The IMF reported that industrial production and investment remained weak in many advanced and developing economies, and world trade had yet to recover.
Two giant German banks plan merger
By Gustav Kemper and Peter Schwarz, 11 April 2019
The German government is pushing for the combination of Deutsche Bank and Commerzbank to establish a financial behemoth capable of competing with the US and China.
UK local councils sell off billions of pounds in public assets due to austerity
By Joe Mount, 5 April 2019
Since 2014, over 12,000 publicly-owned assets with a total value of over £9.1 billion have been sold off, including libraries, health clinics, youth centres and public spaces.
Workers Struggles: Europe, Middle East & Africa
5 April 2019
Gold miners have voted to continue their four-month strike after management rejected a deal proposed by mediators.
Amid auto layoffs and warnings of manufacturing “bloodbath”
IMF chief points to global growth deceleration
By Nick Beams, 4 April 2019
IMF Managing Director Christine Lagarde noted that while two years ago 75 percent of the global economy was experiencing an upswing, today 70 percent is in a slowdown.
Xi signs strategic EU-China deals amid growing EU-US tensions
By Alex Lantier, 29 March 2019
Rome’s endorsement of China’s Belt and Road Initiative in the face of explicit US disapproval points to deep tensions between US and European imperialism.
Mounting warnings of a global recession
By Nick Beams, 29 March 2019
Bloomberg has reported that the amount of global bonds with negative yields has topped $10 trillion, an indication of the growing uncertainty in financial markets.
European Union leaders grant May extra time to pass Brexit deal in UK parliament
By Robert Stevens, 22 March 2019
The EU has agreed a plan allowing a delay of Brexit to May 22 on condition that UK MPs approve the deal the EU agreed with Prime Minister Theresa May by the previous official exit date of March 29.
Fiction and reality: The Italian Five-Star Movement’s citizen income scheme
By Marianne Arens, 22 March 2019
The “reddito di cittadinanza” (citizen income) is a vanity project of the co-governing Five-Star Movement that will not change Italy’s stark social inequality.
Six million UK workers on low pay
By Barry Mason, 9 March 2019
Despite the Tory government’s perpetual rhetoric that “work pays,” reality shows being in work is no guarantee of escaping poverty.
European Central Bank announces major policy reversal
By Nick Beams, 8 March 2019
The decision by the ECB came as a result of what President Marion Draghi characterised as “substantial” downward revision of growth estimates for the region.
British retail sector continues shedding thousands of jobs
By Simon Whelan, 2 March 2019
Some 19,000 high street jobs have been lost or put at risk in the two months since Christmas.
Corporate tax cuts in UK save big business billions of pounds
By Barry Mason, 8 February 2019
According to an analysis by the Institute for Fiscal Studies, previous cuts in corporation tax led to a reduction of around £16.5 billion a year in revenue, between 2010 and 2016.
Germany is preparing for economic war
By Peter Schwarz, 8 February 2019
The German government wants to promote the emergence of powerful monopolies that can counter their American and Chinese competitors “on an equal footing.”
UK’s largest supermarket Tesco to shed 9,000 jobs
By Margot Miller, 5 February 2019
The response of the trade unions to the job losses was predictably muted. No fight will be waged by them to save a single job.
Davos overshadowed by crisis and social upheaval
By Nick Beams, 25 January 2019
The decision to hand the keynote address to the newly installed fascistic president of Brazil, Jair Bolsonaro, demonstrated the political orientation of the global elites at Davos.
Report to Davos meeting points to deepening contradictions of global capitalism
By Nick Beams, 18 January 2019
The gathering of global elites is very mindful of the mounting international class struggle, with “social anger” increasingly prevalent.
World Bank warns of “storm clouds” over global economy
By Nick Beams, 15 January 2019
The bank cut its June forecast for global growth of 3 percent this year to 2.9 percent and warned that “the risks are growing that growth could be even weaker than anticipated.”
Fight the Ford layoffs! Build rank-and-file committees to unite autoworkers across Europe!
By Sozialistische Gleichheitspartei, Socialist Equality Party and Parti de l’égalité socialiste, 15 January 2019
The working class cannot accept the “right” of the corporations to shut plants down, decimate entire communities and destroy the lives of tens of thousands of workers.
Wall Street rules
By Andre Damon, 5 January 2019
The Federal Reserve, responding to Thursday’s stock market selloff, declared it was “listening” to the markets and ready to scrap its plans to raise interest rates.
The global slowdown: US trade war comes home
By Andre Damon, 4 January 2019
The economic warfare pursued by the Trump administration with the support of broad sections of the US political establishment is coming home to roost in the form of a global slowdown spreading to the United States.
Scotland: 300 laid off at Kaiam plant on Christmas Eve
By Steve James, 3 January 2019
Workers at optical electronics firm Kaiam in Livingston, Scotland, were laid off following the company’s collapse.
Hundreds die on UK streets as homelessness reaches record levels
By Margot Miller, 3 January 2019
Over the last five years, an estimated 2,627 homeless people have perished on the streets.
A wild week on Wall Street
By Nick Beams, 29 December 2018
This week registered the first gain for the financial markets in three weeks, but they remain on course to record the worst December since 1931.
Financial market fall accelerates on global growth fears
By Nick Beams, 18 December 2018
With all indexes now in “correction” territory, having fallen more than 10 percent since their highs, Wall Street is on track to record its biggest annual decline since 2008.
Corbyn, Brexit and the struggle for the United Socialist States of Europe
By Chris Marsden, 17 December 2018
Labour leader Jeremy Corbyn has cast himself as a guarantor of national stability, denouncing the inability of May and the Conservatives to “end the chaos.”
Turmoil on Wall Street continues
By Nick Beams, 11 December 2018
Concerns over global growth are a significant factor in the ongoing slide and volatility in US markets, with signs of a downturn reflected in the fall of commodity prices.
Parliamentary debate on Brexit deal begins after three defeats for May government
By Robert Stevens, 6 December 2018
Whatever happens in the Brexit crisis, Britain is in the grip of a historic crisis of rule that threatens to unleash social upheavals.
German prosecutor’s office raids Deutsche Bank
By Johannes Stern, 3 December 2018
The spokesperson for the investigating authority said that, due to the extent of material, an additional search of the bank’s offices was necessary.
Tens of thousands of retail jobs lost in UK
By Margot Miller, 23 November 2018
The list of closures in the retail industry reads like a cull, with 85,000 jobs already lost this year.
Global conditions fuel Wall Street sell-off
By Nick Beams, 22 November 2018
The market has trended down since the start of October, led largely by high-tech stocks, but this week the falls broadened.
Budget dispute between Italy and EU escalates
By Peter Schwarz, 22 November 2018
If the financial markets impose further interest-rate increases on Italian government bonds, it could lead to a chain reaction of bank bankruptcies across the whole of Europe.
European Commission rejects Italy’s 2019 budget
By Alexandre Lantier and Marianne Arens, 24 October 2018
The EU’s first-ever decision to formally strike down the budget of a member state points to growing class and international tensions tearing the EU apart.
PSOE and Podemos jointly present Spanish budget to the European Union
By Alejandro López, 24 October 2018
Faced with growing strikes, the PSOE-Podemos government, in a cynical attempt to win support, is proposing wage increases in a budget it knows will be voted down.
European Union and Rome fight over Italian budget
By Marianne Arens, 20 October 2018
In the conflict over the Italian budget, the EU Commission takes the side of the banks, stock exchanges and credit agencies, while the government pursues a course of militarism and attacks on immigrants and workers.
British PM addresses EU summit as “no deal” Brexit threatened
By Thomas Scripps, 17 October 2018
With the government in turmoil, Labour is advancing itself as a responsible representative of the British ruling elite.
Wall Street fall continues in day of swings
By Nick Beams, 12 October 2018
All major US indexes are now below their 200-day moving average, which is regarded as a key indicator of the market’s direction.
IMF chief warns of rising risks facing global economy
By Nick Beams, 2 October 2018
The IMF is set to downgrade its forecast for global growth amid rising trade tensions.
Federal Reserve lifts interest rates and indicates further hikes
By Nick Beams, 27 September 2018
For the first time since the Fed began its low-interest rate regime after the financial crisis of 2008, its base rate is above the level of inflation, indicating that wages are a key target.
Labour’s John McDonnell embraces Blairite “new economy” plan
By Laura Tiernan, 19 September 2018
Labour’s endorsement of the IPPR plan makes clear that, behind the talk about governing “for the many, not the few,” Corbyn and his allies are adopting trade war policies.
IMF pushes for more social cuts in Ukraine
By Jason Melanovski, 3 September 2018
Amid growing strikes of miners and other workers, the IMF is using the corruption of the Ukrainian oligarchy to push for social cuts.
IMF pushes for more social cuts in Ukraine
By Jason Melanovski, 31 August 2018
Amid growing strikes of miners and other workers, the IMF is using the corruption of the Ukrainian oligarchy to push for social cuts.
Nearly 90,000 retail jobs lost in UK in 12 months
By Barry Mason, 25 August 2018
Retailers are shifting employees from secure full-time contracts to less secure ones with “less rigidity and more flexibility.”
Rifts emerge in US-EU trade deal
By Nick Beams, 31 July 2018
The Trump administration is keeping a gun at the head of the EU over auto tariffs as it continues an investigation into whether to impose them on “national security” grounds.
The Trump-Juncker agreement: A manoeuvre in the global trade war
By Nick Beams, 26 July 2018
The threat by Washington to impose a 25 percent tariff on auto imports has not been removed, but only suspended while negotiations go ahead on broader trade relations.
EU and Japan sign trade deal
By Nick Beams, 19 July 2018
The deal was five years in the making but the impetus to have it finalised was increased by the US trade war measures that have targeted both parties.
OECD report details
A global economic “recovery” without wage increases
By Patrick Martin, 6 July 2018
A report by the grouping of 36 most economically developed countries found that the proliferation of low-wage, part-time jobs has held down wage growth for workers throughout the world.
European Union warns of global trade war if US auto tariffs go ahead
By Nick Beams, 2 July 2018
An EU submission to the US Commerce Department warns of major reprisals if the Trump administration goes ahead with auto tariffs.
After tariff measures against China
Trump threatens to escalate trade war with Europe
By Nick Beams, 23 June 2018
Central bankers at a meeting in Sintra, Portugal, voiced their concerns about the developing global trade war.
Deep divisions over US trade policies at G7 finance ministers meeting
By Nick Beams, 4 June 2018
The statement from the G7, agreed to by Canada, the UK, Germany, France, Italy and Japan, pointed to the “negative impact of the unilateral trade actions of the United States.”
Backlash against US over tariffs
By Nick Beams, 2 June 2018
The European Union is pushing ahead with counter-measures against the US. It is expected to announce its final list of products to be targeted later this month.
Over 10,000 jobs at risk at Deutsche Bank
By Gustav Kemper, 31 May 2018
Germany’s crisis-ridden Deutsche Bank has already slashed 6,000 jobs and closed 188 branches in the past few years.
Naming of technocratic government plunges Italy into crisis of class rule
By Alex Lantier, 30 May 2018
Financial markets are panicking and protests are being called, as bitter divisions inside the Italian bourgeoisie erupt to the surface.
European Central Bank points to slowing economic growth
By Nick Beams, 27 April 2018
The ECB appears to have adopted a “wait and see” approach on monetary policy in light of the latest eurozone slowdown.
US issues ultimatums to IMF on trade
By Nick Beams, 23 April 2018
Adopting the tone of an overlord, US Treasury Secretary Steven Mnuchin demanded that the IMF back Washington in its drive against what it claims are “unfair global trade practices.”
White House considers “national emergency” powers against Chinese investment
By Nick Beams, 21 April 2018
Under a 1977 law, president Trump could declare a national emergency in response to an “unusual and extraordinary threat” which would allow him to block transactions and even to seize assets.
IMF remains upbeat on global economy but trade conflicts sound a jarring note
By Nick Beams, 19 April 2018
The IMF chief economist said it seemed “paradoxical” that major economies were “flirting with trade war” at a time of economic expansion.
World economy in danger of being “torn apart”
By Nick Beams, 13 April 2018
IMF chief Christine Lagarde said that as a result of easy financial conditions, global debt—public and private—has reached an all-time high of $164 trillion.
The looming threat of global trade war
By Nick Beams, 29 March 2018
The volatility reflects the speculative character of the share market’s rise and the fears that a global trade war could puncture this bubble.
Russian economy stagnates as presidential election approaches
By Andrea Peters, 10 March 2018
Russians will head to the polls on March 18, as the Kremlin touts an economic recovery that leaves millions behind.
EU threatens retaliation to Trump’s trade war measures
By Peter Symonds, 3 March 2018
Trump’s announcement of global tariffs on steel and aluminium has triggered international criticism, including from US allies that will be among the hardest hit.
The growing threat of global trade war
By Nick Beams, 24 February 2018
Two major initiatives by the Trump administration over the past month have ratcheted up global tensions, bringing the threat of retaliatory actions from the European Union and China.
Global markets plunge as Dow records biggest ever one-day point fall
By Nick Beams, 6 February 2018
One of the most significant features of yesterday’s decline was its speed with the Dow plunging 900 points in just 11 minutes in an avalanche of selling.
The contradictions of the bitcoin-blockchain frenzy
By Nick Beams, 23 December 2017
In seeking to grasp the significance of the present frenzy, it is worth recalling the analysis made by Marx of previous financial bubbles, in particular those associated with the expansion of the credit system, which began in the mid-nineteenth century.
UK living standards facing longest decline in more than 60 years
By Julie Hyland, 27 November 2017
Average earnings of workers in 2021 are expected to be lower in real terms than in 2008.
European Central Bank to continue bond-buying program
By Nick Beams, 27 October 2017
Draghi’s supporters on the ECB governing council prevailed against a push to set a date to end its quantitative easing policy.
Far-right nationalist groups march in Kiev
By Jason Melanovski, 23 October 2017
Recent rallies in Ukraine’s capital point to a growing crisis of the Poroshenko regime.
IMF report points to financial dangers lurking beneath global growth
By Nick Beams, 14 October 2017
Central banks confront an acute contradiction: attempts to normalise monetary policy may trigger a financial crisis, but continuing the flow of easy money is creating unsustainable debt levels.
Outgoing German finance minister warns of financial bubbles
By Nick Beams, 10 October 2017
Schäuble said he had “no idea when the next crisis will happen” but economists all over the world were concerned about the rise of liquidity and debt.
Bank for International Settlements voices concern over finance markets
By Nick Beams, 19 September 2017
The BIS has warned that the slow pace in normalising central bank interest rates and ending quantitative easing is setting up financial markets for a shock when interest rates do rise.
ECB makes first move to wind back quantitative easing
By Nick Beams, 9 September 2017
The class agenda of the ECB emerged when president Mario Draghi called for the further elimination of job protection as he backed reforms by the Macron presidency in France.
Massive fire in Rostov, Russia destroys 123 houses
By Clara Weiss, 29 August 2017
Residents said they believe the fire was allowed to burn out of control with the aim of driving out impoverished residents in preparation for the 2018 FIFA World Cup.
Conservative government review of UK “gig economy”—a whitewash for the corporations
By Thomas Scripps, 28 August 2017
The report’s bias in favour of employers is not an oversight, as the political establishment that Matthew Taylor speaks for has no intention of bringing “precarious employment” under control.
ECB offers reassurance to anxious financial markets
By Nick Beams, 21 July 2017
ECB president Mario Draghi said there were indications of economic growth but this was yet to translate into underlying inflation dynamics.
Transatlantic tensions dominate G20 summit
By Nick Beams, 10 July 2017
Despite cobbling together a unanimous resolution, the G20 summit was, by any measure, the most fractious meeting of major political leaders in the post-war period.
Barclays PLC charged with fraud by UK Serious Fraud Office
By Jean Shaoul, 1 July 2017
The prosecution has nothing to do with the criminal and reckless banking behaviour that precipitated the crash, but instead relates to Barclays’ rescue
European Central Bank still failing to meet inflation objective
By Nick Beams, 10 June 2017
Structural changes in the European economy mean low wages along with part-time and casual employment are becoming the “new normal.”
Royal Bank of Scotland seeks to avoid High Court action by shareholders
By Jean Shaoul, 27 May 2017
Former senior RBS executives have never had to make a public account of the events leading up to the bank’s collapse in 2008, when it was rescued by then Labour Prime Minister Gordon Brown.
Alitalia bankruptcy exacerbates social tensions in Italy
By Marianne Arens, 5 May 2017
In a recent vote two-thirds of Alitalia pilots, flight attendants and ground crew rejected planned job cuts and pay cuts.
May Day 2017
The rise of economic nationalism and protectionism
By Nick Beams, 2 May 2017
The historic crisis of the global capitalist system is now producing the very conditions that led to the economic conflicts of the 1930s and the eruption of war in 1939.
European Central Bank maintains a balancing act
By Nick Beams, 10 March 2017
The ECB retained its negative base interest rate, placing it on a divergent path from the US Federal Reserve.
UK think tank warns of fall in economic growth and rising inequality
By Margot Miller, 16 February 2017
Planned changes to the tax and benefit system mean that the poorest 10 percent in society will be 3.1 percent worse off, which translates into a loss of £314 a year.
New report documents extreme poverty in Poland
By Clara Weiss, 11 January 2017
The report reveals the miserable living conditions facing broad sections of the working class and the peasant population who lack access to basic elements of civilization.
Brexit seized on by Scottish government to mount new power grab
By Steve James, 28 December 2016
The Scottish National Party government are hoping to directly benefit from the Brexit debacle by laying claim to additional powers for the Scottish parliament.
Monte Paschi bank will seek Italian state bailout
By Alex Lantier and Marianne Arens, 23 December 2016
As Europe slides ever deeper into slump, tens of billions of euros are to be handed to the financial aristocracy in a bailout that only sets the stage for more social attacks.
Irish government defends tax dodging by Apple
By Chris Marsden, 21 December 2016
The Fine Gael government opposes demands by the European Union that the American technology giant pay $13 billion in back taxes.
Germany’s low-wage sector is expanding
By Elisabeth Zimmermann, 20 December 2016
More than one in five Germans work for a wage of less than €10 per hour.
Finnish government prepares new attacks on working class
By Ennis Wynne, 20 December 2016
The attack on the living standards of the working class is set to intensify due to Finland’s escalating economic crisis.
Berlin’s Humboldt University plans massive job cuts
By Katerina Selin, 19 December 2016
The latest developments at Humboldt University are linked to the drastic austerity policy of the Berlin Senate regarding higher education.
Bank of England governor warns of the “spectre of communism”
By Richard Tyler, 12 December 2016
Mark Carney compared the crisis today with the period of revolutionary upheavals that swept across Europe in 1848.
European Central Bank rejects request by Italy for more time to rescue ailing lender
By Nick Beams, 10 December 2016
The move increases the odds of a government bailout that would impose major losses on small investors and bondholders.
European Central Bank cuts asset purchases but insists “quantitative easing” continues
By Nick Beams, 9 December 2016
President Mario Draghi emphasised that “uncertainty prevails everywhere” and it was very difficult to assess the long-term impact of the “radically new administration” in the US.
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