German trade union movement poses answers to the crisis
The DGB German trade union confederation has produced a manifesto which offers an internationalist answer to the crisis, reports Nicky Dempsey. It stands in sharp contrast to the bitter diet of xenophobia and racism which is being promoted across Europe.
The DGB’s ‘Marshall Plan for Europe‘ is a first attempt by one of the leading bodies of the European workers’ movement to provide a working class pan-European response to the crisis. It implicitly rejects all the crude stereotyping that has been repeatedly used to divide the workers and oppressed of Europe along national, ethnic, religious and other reactionary lines.
Instead, it explicitly calls for a 10-year pan-European investment programme to include all 27 EU economies. The report notes that, ‘those countries currently in financial crisis will not be able to implement a modernisation initiative like this one on their own. This is why we need joint efforts and new European institutions with stable and solid sources of financing’.
The Plan calls for an annual level of investment of €260bn in the development of major cities, transport, infrastructure, broadband and education. It estimates that this would create 9 to 11 million new jobs.
There is a particular focus on investment in renewable energy production and the reduction of CO2 emissions. There is an aspiration to cut CO2 emissions by as much as 80% to 95% from the 1990 level by the year 2050 through investment, in addition to implementing the plan to cut emissions by 20% by 2020, and this forms the majority of the investment programme.
The Plan also rejects any notion that new investment must be ‘paid for’ by further austerity measures. Instead, it proposes a 3% wealth tax to start a European Future Fund, with new bonds paid for by the imposition of a Financial Transactions Tax. This seems an overly complex proposal, not least as the authors note that European companies are sitting on enormous cash balances (held in the banks) which they refuse to invest.
There is clearly some contradiction too between looking to curb the excesses of financial speculation and building revenues on taxes from it into plans for investment. But this is a discussion to develop within the movement among all those who accept its main aims.
The DGB explicitly calls for a debate across Europe on its proposals, which the workers’ movement should take up. Discussion should focus on any improvements to the Plan and how to champion it politically. The ruling classes have utterly failed with their economic policies and increasingly attack one scapegoat after another to divert attention from that failure.
The DGB’s ‘Marshall Plan’ represents a serious attempt to offer an internationalist, working-class solution to the crisis and should be promoted widely for discussion and action.
This article first appeared on the Socialist Action website
17 comments
17 responses to “German trade union movement poses answers to the crisis”
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Cutting co2 emmissions by 80 – 95 per cent is a pipe dream and a daft one at that . The rest of us happen to prefer civilsation
Micky D, a pre-requisite for ‘civilisation’ is to rapidly, very rapidly, reduce carbon emissions. The threat to civilisation, indeed to human life on this planet, is runaway global warming.
So, we have two choices- we can stick our heads in the sand and pretend it isn’t a problem or that it isn’t an immediate one (despite all the evidence to the contrary) or we can get stuck into ‘environmental politics’ in a big eway- all the while pointing out that it is the inherent logic of capitalism, the relentless drive for short-term profit above all else which means that the only way to prevent ctatstrophic climate change is by breaking with the logic of capitalist ‘growth’.
I have no objection whatsoever to trades unions producing imaginative “Alternative Plans” to tackle the European capitalist crisis. I’ve no doubt that a lot of the recommendations are very “sensible”. I’ve also no doubt at all, given the nature of postwar German trades unionism ,that the “solutions” proposed are throroughly “Keynsian” in scope. By that I mean that the pathetically unambitious “wealth tax” proposals, and the large scale “1930’s New Deal style ” infrastructure and job creation programme, hopes merely to yet again reform and ameliorate the crisis that capitalism’s crazy speculative dynamics have driven the entire world (not just European system) into.
Sadly of course although it is good propaganda for organised labour to be offering believable alternatives to the self-defeating Austerity programme , this programme will never be implemented, and even if it was it wouldn’t “work” ; for two key reasons:
1) The “Austerity Strategy” being pursued by rival trading blocs all over the world are not being pursued because capitalist economists has never read Keynes’ works. In Europe (including the UK as a prime exemplar) the “Austerity Offensive” is not actually primarily about “rebuilding the economy” or even “repaying the deficit” as it is portrayed by the political class. It is all about a perceived “once in a lifetime opportunity” by each trading blocs ruling class to drastically roll back all the social welfare and labour rights of the postwar period. With the stripped down , highly competitive, fear-filled, economies which result, once more hoped to be competitive and profitable long term compared to the low cost competitors in China and other ghastly harbingers of our possible future social and working conditions .
and
2) What has been driving the mutually competing capitalist classes in ther various trading blocs since the late 1970’s, is a fundamental periodic problem with capitalism as a system – ie, the tendancy for the overall rate of profit to decline – as capital to labour ratios increase and the need to constantly increase labour productivity comes up against the constraints of that particular wave of capitalist expansion’s technologiocal base and production techniques. By the 1970’s the underlying profitability of the key technologies/techniques of the postwar boom, cheap oil-powered, mass automated production, computerisation, was under pressure. The entire deregulated, globalised , financialised, “neoliberal” period from the late 1970’s, with ever greater legal and structural attacks on trades union bargaining power, and taxation systems geared up to transfer ever greater shares of national income to the rich. “Neoliberalism” essentially postponed the capitalist crisis for 40 years, leaving the superrich with a vastly greater share of both national income and wealth, while the majority of us maintained their living standards via ever greater , unsustainable, personal borrowing levels. As we know “the wheels finally came off this wagon” with the financially led economic implosion of 2007/2008. Without a radical new technological leap forward comparable to the techniques and technologies which drove the postwar boom, the only “strategy” remaining for the world’s capitalist classes to support their profit rates is to “turn out our pockets” via ever greater reductions in the real value of our pay, and to strip away the costs to each capitalist economy of its welfare and social provision – until we all match the wage and welfare provision-less conditions of a migrant worker in Guandong Province, or Vietnam . “Keynsian” economic nostrums can at best delay and ameliorate the savagery and speed of the unending capitalist assault on all our rights and our living and working conditions.
Having said that, raising expansionery, job-creating, alternative strategies to the “Austerity Offensive” is a useful and important tactical strategy at this time of almost complete retreat by the working classes and their trades union organisations, and political organisations. The overwhelming majority of people are simply ideologically unprepared and unwilling to consider the harsh long term reality, ie,that it is the complete replacement of the chaotic, greed-based, capitalist system by a rational, democratically planned socialist system that is necessary. Given this fundamental ideological weakness, it is appropriate to make demands on capitalism which offer radical “reformist” alternatives to the pace and direction of the Austerity Offensive – because in fighting for the short term reformist objectives people who today are a long, long, long, way from revolutionery politics, will be drawn into very basic defensive struggles, that eventually can obstruct the disastrously destructive objectives of the capitalit classes to impoverish us all to feed ever more profit into their system. Out of these ,limited, reformist, struggles hopefully a more profound understanding of the nature of capitalism will once again gain significant “ideological space” amongst sufficient working people as to place more radical, transformational, objectives on the historical agenda.
Yes John, absolutely agree with your analysis. The way the article is presented, particularly the headline, is very ingenuous as you have pointed out. The TUC have probably got similar plans that could be dusted off. The whole problem is whether they will lead or mobilise people even for progessive reformist demands which of course we will support as a useful next step to raise people’s consciousness. Your points about austerity are useful for our discussion. This is what people like Will Hutton and others don’t get. They endlessly and very effectively show how more austerity won’t lead to growth or even sorting out the deficit but cannot see the class struggle going on. The bosses need to fundamentally change the relationship of forces and create a labour force that can be more efficiently exploited. The bleating of Balls and Miliband about how the Tories are failing and are not getting growth are of the same order.
Of course the original Marshall Plan was to restructure capitalism after the war in Europe and this is welcome but modest.
The wealth tax is too modest – the top richest 1,000 people in the UK for example have £450b between them – need to be less timid.
The current piddling Robin Hood Tax supported by 35 EC countries except the UK is 0.1% of financial transactions which will bring in £35b, a 1% tax would mean £350b and 5% £1.75tr – I”m for the latter. It is the labour of the working billions which creates the wealth and makes societies work- the surplus is legally stolen by the rich & powerful and then shared amongst themselves & their apologists.
We need to be bold getting this back via taxes like a real wealth tax, a land tax and Windfall taxes on big business – it is our wealth really and as John Lennon sang in ‘Power to the People’, “You better give them what they really own!”
Of course we also also need to close the tax havens, offshore banking and tax loopholes for the rich and make them pay their share.
Also need to curb or end the bonus culture at the top.
To help the transport poor, the environment, less stress on bus drivers, to attract people out of cars, for safer, quieter roads and fresher air, plus to encourage cycling and to help the economy we should also have free public transport in Europe democratically run by local councils.
We also need a European shorter working week and earlier retirement to create jobs for the young and to free the ‘Time Poor’.
We also at a European and national level need to curb the power of the multi- nationals and ban things like zero hour contracts as well as unionising migrant workers which will empower them re health & safety etc and to stop unscrupulous employers using them to undercut wages. Remember politics is simple – Neo-Liberalism has ONE POLICY – CHEAP LABOUR!
But we also need to fight for all humanity and could help by championing a global minimum wage, a global shorter working week and global earlier retirement so the whole of ‘Time Poor’ humanity can enjoy life and their planet.
As long as the Germans don’t get rid of the ridiculous privileges afforded to their civil servants, all this talk about reform is just so much farting in a bottle. The German Civil Servants Association comprises eight trade unions in all and has a membership that makes up around 25 percent of the working population. Those trade unions are massively powerful and they’re not about to allow their incredible perks to be foreshortened. What’s more, most of the German MPs are former civil servants who also stand to lose if any reform takes place. The overblown and top-heavy administrative apparatus in Germany is the most expensive budget item, ranking even above foreign debt payments and social security expenses. It’s also the reason that the last time (West) Germany had a balanced budget was 1961.
There needs to be a total branch and root reform of the whole system, but as long as said civil-service unions can prevent that, and they can, then any helpful suggestions are just pissing in the wind
MsG
Errrr, you do know this is the LEFT Unity website , Bugsy ? . Can I perhaps direct you to the Daily Telegraph’s rabidly reactionery site, where your “blame trades unionists for the crisis of capitalism” nonsense will go down a treat !
By the way, the German economy, as most people are well aware, is the most “competitive” and profitable in Europe. I would have thought that this alone would given you cause to have doubts about the nonsense you have just spouted about the need for “balanced budgets” and the claimed need to hack away at the pay and conditions of German public sector workers. Apparently not.
Oh well, mustn’t let reality get in the way of rabid Tory ideology eh !
Agree with John – don”t let right wing political imbeciles who will never really think in their whole lives come on here. This is our space to organise, develop and share socialist ideas. Wake up moderator this is not The New Stattesman! There are plenty of sites for right wing political imbeciles to practice their hobby. Biut probably a good sign that they feel they need to invade our space!
We need to organise ourselves, politicise the oppressed and boring right wing political simpletons are the last of our worries and we shouldn’t be providing them with entertainment. I think progressives are starting to win the arguments.
Yours in solidarity!
Oh dear, John. Did you actually read what I wrote, or die you just fly over it and see a remote possibility of “proving” your “Left” credentials? I, too, greet the suggestions made, but knowing the German system as well as I do, I simply see no possibility of them ever being implemented. And don’t believe everything you read about the German economy. It’s in truly dire straits. Log on to a few German-language websites and read about the real state of things. It’s not for nothing that I say that a thorough reform is very urgently required.
The clever thing to do, John, is if you know nothing about a subject, it’s generally best not to wade in with ignorant (as in not knowing) comments. Just a thought.
MsG
Bugsy
PS. “MsG” is the abbreviation of “Mit sozialistischem Gruß” – it was the sign-off used in the GDR – where I lived for eight years.
pleased to hear Dgb proposal and agree too that we would argue for higher wealth and money taxes to fund a re funding.
make the bosses pay!
“you better give them what they really earn” is a good line.
would like to get the proposal and raise it in my branch.
We certainly need to look globally and continentally is a start, the problems are way beyond national level, although I think it’s defeatist to overlook the power a National Monetarily Sovereign Currency Issuing Government has compared to a currency using one.
Taxes are too high and need to be cut…anyone against that, seriously? Vote winner or what?
Cut jobs/sales taxes and replace them with a proper Land Value Tax, 75% of us would be better off, guess who would have to pay their share?
The stystem systematically (sic) generates sub-optimal outcomes, working below full output/employment capacity, underemploying at below labour productivity increase levels; the proceeds of growth should be shared out in pay rises, a programme of reducing the working week and increased holidays.
Circulation of the proceeds of growth to “peripheral” areas within countries/continents/globally needs to be addressed directly/spatially; a proper Universal Living Wage Job Education Training Income Guarantee paid for by our fiat public purpose people’s money created as Monetarily Sovereign Currency Issuing Governments spend, but operated at as low a democratically accountable level as possible would raise the lowest boats first, as it should do in any decent civilised society. Aka Job Guarantee. The following link is to a 300 page thoroughly researched view of it and how to practically implement it…
https://docs.google.com/file/d/0B7djNI9-uVaDMDU2MzNhYTktNWZhZC00MzJjLWJlMjMtNGQ1ZTUyMmQyY2Nj/edit?pli=1
Obviously there is a need to have planned integrated combined power/water/communication infrastructure at regional to continental level, mutually owned and democratically accountable; German people energy grid co-ops are an interesting example.
An interesting discussion of Marx/Monetary Sovereignty(intro here; http://www.3spoken.co.uk/2011/01/how-governments-super-platinum-credit.html) aka MMT (a primer on this; http://www.3spoken.co.uk/2010/04/primer-on-modern-monetary-theory-mmt.html) can be found here; I should imagine Heteconomist will be welcome reading for most of us here?!
http://heteconomist.com/melting-some-marx-into-mmt/
An interesting proposal for an interim society on the way to utopia…
http://heteconomist.com/proposal-for-an-interim-society-prior-to-utopia/#more-6649
Bugsy, you may have lived in the GDR ( But so what ? Gideon Osborne lives here and his economic understanding of the UK economy is NIL !) but you quite obviously know absolutely nothing about the real structural dynamics of the current German economy. That you see the wages and conditions of German public sector workers as the “key problem” facing the German economy simply places you decisively in the Daily Telegraph “Tory Crazies” category of misinformed right wing ideologue. Please take your gross economic ignorance away from our Left Unity website to a more appropriate forum.
I quote: “Bugsy, you may have lived in the GDR, but so what?”. That’s a bit of a feeble comeback there, John, I must say. And to arrogantly assume that I know nothing about the present situation in Germany says more about you than it does about what I know. In turn, if you actually did know anything about the position of “Beamte” in Germany, you wouldn’t dismiss what I maintain as “nonsense”. It’s entirely logical that they want to defend their overblown privileges, but paying for those same privileges deprives the rest of the working population (and German taxpayers as a whole) of financial resources to fund important social and communal projects.
My point was (and still is) that although I agree entirely with the suggestions made by the DGB, it’s also necessary to evaluate whether they have any realistic chance of seeing the light of day and being implemented. They are also by and large reiterations of such suggestion that have been made on a number of occasions. I recommend the following publications, which in some points go even further than the DGB report:
“Schluss mit der Ungleichheit” by Carsten Becker (1988)
“Ein andere Weg ist möglich” by Roland Larson (1995)
“Es gibt eine Alternative” by Helmut Schmidt (1968)
And yes, that is the Helmut Schmidt who went on to become Chancellor. You’ll find that all of those authors made much the same suggestions, with the inimitable Herr Schmidt actually outlining a “Fahrplan” to achieve those aims. There are other and similar articles, of course, but those three are, in my opinion, more significant because they concentrate on a gradual transition to a truly Socialist society. I imagine that even someone as omniscient as you could profit from reading them.
Mit sozialistischem Gruß, Genosse!
Bugsy
Look Bugsy, we can read endless arguments in the capitalist press of every country every day arguing that for each and every country, if the public sector isn’t drastically shrunk, pensions reduced, wages held below inflation, welfare services destroyed, then this or that economy will no longer be “competitive”.
But this is a website of Left Unity – dedicated to rejecting the capitalist system’s crazy “logic”, which is entirely directed to protecting the wealth and privileges of the top 10% of superrich. Their central role in the world capitalist crisis (and the odd major financial scandal in Germany too) seems strangely to have passed you by ! So noone here is interested in your right wing, saloon bar know all, rationalisations for destroying the public sector and its invaluable public services, either here or in Germany.
Persuading private sector workers that their public sector colleagues are all featherbedded leadswingers and the reason they are (in most of the EU) suffering endless wage freezes and declining living standards is just so tiresomely predictably “divide and rule” as to be pitiful. You may not have noticed but it was the out of control , corrupt, greed driven, financial sector which caused the 2008 global economic crisis, not public sector workers , anywhere. The only “overprivileged” in our society are the capitalist class.
Move along, Bugsy, you’ll get no more trade here…Take your pompous right wing pronouncements to the rabid Daily Telegraph site where they belong.
My, oh my, John. You’re doing your very best to remain wilfully ignorant of what I actually wrote. Is that because it could get in the way of your self-serving attempt to present your “left” credentials? It’s very difficult to discuss with a person who determinedly ignores the points I make in order to further his own selfish agenda.
I never mentioned taking anything away from public-sector workers. I never mentioned, nor even remotely inferred, anything about destroying the public sector. But you did. I wonder why? I also wonder why you consistently twist everything I write and insist on going off on silly childish rants about the Telegraph and right-wing views. Still, I suppose it takes all sorts.
If we really mean business about transforming the world into a genuinely Socialist society, it also seems expedient to take into account those who’d wish to prevent it happening. Apart from the usual suspects, the major trade unions belong in that category. The shameful dereliction of duty of the UK TUC in refusing to call a general strike after the fantastic showing on 30 November last year is testament enough to that. In fact, a month-long general strike across Europe would shut the whole place down and push forward our Socialist agenda at a tremendous rate. We’d then be in a position to really call the shots. However, you seem much more intent on gobbing off about right-wing agendas that don’t even exist. On the other hand, you appear to be fairly intelligent, so maybe the “Penney” will eventually drop. Apart from that, as a member of an organisation calling itself “Left Unity”, you don’t seem very keen on showing any “unity” at all. Oh, by the way, to complete your twisted picture of me: I’m a member of the SWP.
MsG, Genosse
Bugsy
Just wasted £1 deliberately to buy a Workers Power paper – to analyse them. Fitted the Trot stereotype – organisational tactics of 1910 for 2013! ‘what we stand for’ tells you everything. Poor human beings – see the World through narrow Trotsky coloured spectacles. Don’t think Trotsky had anything to say really and was part of a ‘bourgeois dictatorship of the proleteriate’. Left Unity could be hard work turning them back into independently thinking critical socialist human beings! Have had a hard day but feel better after a couple of oppressed people at a meeting (who had not said a word) spoke to me and said ‘we liked what you said’ – I had said let’s get out on the estates and talk to working class people and promote equality, socialist ideas and anti – discrimination AND WE ARE THEN IN CONTROL OF THE AGENDA – not the vile EDL etc. There is hope!
Dear Bazza,
So let me quote your entirely self-serving (and I’ll get onto that anon) post: “What we stand for” tells you everything. Poor human beings!”
In your eagerness to promote your own thing, has it escaped you that we all happen to want the same thing/outcome? Or are you so enamoured of yourself that you believe that you and you alone are the sole source of the rescue of mankind?
It’s only in working with each other that we can fulfill the hope of introducing Socialism on a worldwide scale and thus giving mankind the creativity and scope to escape from the barren Capitalist cage in which it (we) are at the moment imprisoned. If you and other shallow and scoff-seeking figures like you are the sole hope, then I truly despair.
Msg
Bugsy