On the crisis of the international economy

Statement of the Politburo of the CC of KKE

The crisis phenomena of the economy of the USA and the member states of EU which broke out in the form of a bankruptcy tendency in the financial sector are manifestations of the anarchic capitalist development. The decay and parasitism of current economy is caused by the private and stock ownership of the concentrated means of production, which is the source of the daily purchasing and selling of shares (of securities of no value, promising future profits) conducted through banks, insurance companies, stock markets etc.

Crisis phenomena were, are and will be the inevitable fate of all capitalist economies. This proves capitalism is not almighty.

There is no management policy capable of relieving the system of its inherent decay, no matter whether the state bails out the over-indebted banks and other companies, or leaves it to the market to decide upon their bailout or depreciation.

Irrespective of the ultimate depth and range of the current economic crisis, the managers of the system reasonably tremble before the danger of not being in the position to control the consequences that can endanger their political stability.

The rising of the exploitation of employees and of the pressure against self-employed in order to increase and accumulate profits, surrounds and strangles all the economy. The danger of suffocation also stands before well-paid employees in the financial system and middle strata, which previously boosted their income through bonds, mutual funds, shares etc. Certainly, it also threatens ordinary employees, who can massively loose their jobs or their small deposits.

What bourgeoisie considers a threat to its economic and political stability is a hope for labour and peoples’ forces. It is crucial not to lose sight of the only real way out: United, they should attack the wounded beast, not give it time to heal its wounds, room for recovery. What is absolutely needed is social ownership of the concentrated means of production, the central planning of social production, workers’ and social control, which requires an overthrow at the level of power.

This is neither a doomsaying nor an exaggeration. We do not argue that a crisis equal to the one in 1929 has already come. However, the growing ability of bourgeoisie to apply one state regulation after the other in order to save the system by misleading and trapping labour and peoples’ forces, has lost the dynamic it had during the first twenty years after the end of World War II.

We call upon the people to turn its back on deliberately misleading views on the regulation, the rationalisation and humanisation of capitalism, which demonise liberalism in order to save it.

Today, we might not still have developed all the conditions to overthrow capitalist power, but today’s conditions signal the possibility of accelerated developments in favour of the peoples.

KKE promoted and supported the demands for immediate measures concerning the increase of salaries and pensions while ND, PASOK and SYN jointly regarded them as maximalist. Nowadays the promises, allegedly in favour of the people, are empty words. The people must reject them judging by the parties’ political practice.

The government of ND is determined to proceed with the so-called reforms favouring the big capital, the monopolies. PASOK, the main opposition party does not suggest an alternative solution. Assisted by SYN/SYRIZA, it misleads and spreads illusions promoting obsolete and bankrupted political theories arguing about a fair wealth distribution in capitalism. The developments in the economy of the USA and the EU have shown once again that the bourgeois alternatives suggesting a different management of the system are totally contradictory and against the people’s interests.

KKE once again urges the people to counterattack and fight for:

• Rental subsidy for the unemployed and the youth. Interest free housing loans to young couples for obtaining main residence.
• Stoppage of all the attachments and the auction sales of workers’ properties due to main residence housing loan debts. The right of the banks to attach properties and sell by auction the main residence of the loanees must be abolished by law.
• Abolishment of the compounding of interest for all the loans.
• The total interests of the housing loans for main residence to be excluded from the taxable income.
• Freeze of the loans contracted by workers who are now unemployed
• State care for the accomplishment of the programs for peoples’ housing. Modern and safe houses at low prices.
• Essential increase of the salaries according to the modern needs of the people. 1,400€ basic salary, 1,150€ lower pension, unemployment benefit (80% of the basic salary) for the whole period of unemployment. Dismissal pay for all.
• Increase of the individual (without children) tax allowance up to 15.000€.
• Abolition of the value added tax on mass consumption goods and fuel used for heating or vehicles, for the peasants‘ households and the peoples’ consumption in general.
• Exclusively public social security for all setting limits to the robbery of the reserves of the pension funds and not just preventing the investment in “structured bonds”.

KKE appeals the employees, the peasants, the self-employed, the progressive movements of the youth and the women:

• To counterattack and fight jointly for the people’s urgent needs
• To abandon the parties that support the EU one way road and the “EU- submission” ND and PASOK, as well as their allies.
• To support KKE, the party that guarantees the only real economical and political alternative solution for the people.

Athens, 02.10.08