Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts

Wednesday, 17 April 2013

THATCHER WAS A FAILURE

Paul Anderson, Tribune column, 19 April 2013

The death of Margaret Thatcher has prompted a wave of public controversy that is quite extraordinary – if only because she had not been a player in British politics for so long. She left office in 1990 and had only a minor role after that – notably in criticising her successor as prime minister, John Major, for his failings on former-Yugoslavia (on which she was right) and the European Union (on which she was wrong). No one now under the age of 43 voted in a general election in which she was a candidate; no one under 52 was a voter when she became prime minister.

Of course, her time in office was eventful, sometimes dramatic, and a lot changed while she was in charge. On the home front, her government destroyed the power of the trade unions – aided by the inept leadership of the National Union of Mineworkers – and privatised the utilities and most of the nationalised industries. It let council tenants buy their homes, allowed manufacturing industry to collapse, started the deregulation of the City and radically curtailed the autonomy of local government.

In foreign policy, there was the Falklands, resolute pursuit of the cold war and a policy on Europe that favoured the single market but opposed anything smacking of federalism. And of course, she did what she did with a distinctive style, which you either loved or loathed if you were around at the time.

But was Thatcher really the game-changer that both her fans and her critics claim? It’s true that the unions have never recovered from their 1980s defeats – and the chances of any future government engaging in a programme of renationalisation are small, if only because it would be expensive.

Otherwise, however, the big changes of the Thatcher years, where they weren’t crudely implemented adjustments to the inevitable, look increasingly thin and very much reversible.

 Coal and steel would have withered in the face of international competition under any government: Thatcher’s approach brutally hastened their demise and maximised the pain to communities reliant on heavy industry for work. Manufacturing would also have declined under any government because of competition from the far east, though it was made worse by the absence of any coherent industrial policy from the Thatcher government (or any of its successors). Deregulation of the City – continued by subsequent administrations, Tory and Labour – gave us the crisis of 2008 from which we are yet to recover despite massive state intervention to rescue the banks. The sale of council housing to tenants was a bonanza for those who bought, massively subsidised by the taxpayer, but councils were not allowed to use the receipts to build new homes, and, particularly in London and the south-east, right-to-buy owners soon sold up to buy-to-let landlords who charged obscene rents paid by housing benefit. Now we’ve got a housing crisis.

As for foreign policy – well, the Falklands really doesn’t matter except for patriotic myth-makers, and the cold war is long over, though it’s worth noting that Thatcher was completley ineffectual in its last phase. She might have identified Mikhail Gorbachev as a man with whom she could do business, but she resisted the removal of nuclear weapons from Europe in the late eighties and opposed the unification of Germany in 1989. On the European Community, her record was disastrous. Britain’s bone-headed obstructionism under her watch in the late 1980s played a key part in framing the Maastricht treaty on European Union along lines that have since 2008 been exposed as utterly idiotic – a central bank committed to quell inflation and nothing else, no European federal government.

Thatcher seemed a big figure, but she wasn’t really. She won the 1979 general election with a small majority because Labour’s corporatism had failed – and then got lucky. She won massive majorities in 1983 and 1987 after a small part of the Labour leadership defected to set up an Atlanticist pro-Europe centrist party in alliance with the Liberals. She then became a heroine of the anti-European right, which took control of the Conservative party in the 1990s and lost three general elections in a row.

And that’s it. There’s not a lot in the legacy to fear apart from the remarkable success of her appeal to affluent working-class voters in 1983 and 1987. Can David Cameron do the same in 2015? Almost certainly not – and that’s despite the fact that, with the help of the Liberal Democrats, he’s engaged on a plan to shrink the state that Thatcher could only dream about. I’m not dancing on her grave, but she was a failure whose reputation will fade as soon as Britain elects a decent democratic socialist government.

Saturday, 22 September 2012

THAT CUBA FEELING

Red Pepper, October-November 2012

Fifty years ago this October the world watched, seemingly powerless to do anything as a US-Soviet stand-off brought us close to nuclear Armageddon. PAUL ANDERSON looks at what has happened to nuclear disarmament in the half-century since


On 14 October 1962, a US Air Force U-2 reconnaissance plane flew over Cuba taking photographs of the ground below. The next day, Central Intelligence Agency analysts examined the pictures – and concluded that they showed the construction of a launch site for Soviet missiles, confirming their suspicions that Moscow was creating a nuclear forward base in the Caribbean.

Thus began the Cuban missile crisis – a 13-day stand-off between the United States and the Soviet Union that brought the world closer to all-out nuclear war than at any time before or since.

US president John F Kennedy spent the best part of a week working out how to respond. He was still smarting from the fiasco of the Bay of Pigs, the unsuccessful US-backed Cuban-exile invasion of the island in 1961 to overthrow Fidel Castro’s by then pro-Soviet revolutionary regime, and he resisted pressure from hawks to launch an immediate invasion. But the strategy he eventually adopted was high-risk. The US imposed a naval blockade on Cuba and promised not to invade if Moscow withdrew its missiles – but backed up the offer with a secret ultimatum threatening immediate invasion if it did not comply, with the only sweetener a secret promise to withdraw US nuclear missiles from Italy and Turkey.

Both superpowers put their military forces on full alert, and for a week it seemed to the whole world that nuclear Armageddon was imminent. Nikita Khrushchev, general secretary of the Communist Party of the Soviet Union, denounced the naval blockade in fiery language; the United Nations security council met in emergency session and resolved nothing; a Soviet surface-to-air missile shot down an American U-2 over Cuba …

But then Khrushchev blinked. Out of the blue, he agreed to Kennedy’s deal: no Soviet missiles in Cuba, no American missiles in Turkey or Italy. At the time, because the US withdrawal of missiles from Turkey and Italy was not made public, it looked like a straightforward Soviet climbdown – and Khrushchev’s authority in domestic Soviet politics took a blow from which it never recovered: he was ousted two years later. Kennedy won, but he did not live long to savour his victory – he was assassinated in November 1963 – and the hubris that the successful resolution of the crisis instilled in the American establishment played a disastrous role in escalating US intervention in Vietnam.

Britain and CND

Britain was not an actor in the missile crisis. Harold Macmillan’s Conservative government was kept in the dark by the Kennedy administration in its early stages. Macmillan privately expressed polite concern to Kennedy that the US might be going too far in ratcheting up the confrontation with the Soviets – he was worried most of all by the implications for West Berlin, which he feared could be subjected to another Soviet blockade or even invasion – but in public he gave robust support to the Americans.

For the British people, the problem was not the future of Berlin but what appeared to be the strong possibility of nuclear war. Newspaper circulations soared as, day by day, tension mounted.

But the crisis didn’t benefit the movement for nuclear disarmament. The Campaign for Nuclear Disarmament, founded in early 1958 with the support of the Labour left and its weekly papers, the New Statesman and Tribune, had enjoyed a spectacular political success in 1960, when its lobbying of trade unions and constituency Labour parties led to the Labour conference adopting a policy of unilateral nuclear disarmament, against the histrionic opposition of the party leader, Hugh Gaitskell. But Gaitskell and his allies had overturned unilateralism at the next year’s conference – and the CND leadership subsequently found itself without a viable political strategy and facing a barrage of criticism from activists for putting all its energies into Labour. By 1962, its influence was on the wane.

There was still life in the peace movement. CND’s Easter 1962 annual march from the Aldermaston Atomic Weapons Research Establishment to London attracted 150,000 to its closing rally, its biggest ever crowd. But the impact of the Cuban crisis was demobilising.

On one hand, it showed the futility of demonstrating – and on the other it showed that the leaders of the superpowers were not in the end prepared to launch a nuclear war. Activists drifted away from the movement; the nuclear powers agreed a Partial Test Ban Treaty in 1963 that seemed to indicate there was hope of multilateral nuclear disarmament by negotiation; and by 1964, when Labour won a general election under Harold Wilson, the movement for British unilateral nuclear disarmament was part of the past. Its activists moved on, to housing campaigns, workplace militancy and opposition to the US war in Vietnam.

The second wave

CND kept going as a small pressure group with a few thousand members through the 1960s and 1970s, a forlorn survivor that few thought would again play a significant role. Meanwhile, international nuclear diplomacy ground on. The Partial Test-Ban Treaty was followed by the 1970 Non-Proliferation Treaty, which committed non-nuclear states to remaining non-nuclear and nuclear states to keeping nuclear know-how to themselves (though its impact was limited because India, Pakistan and Israel refused to sign and subsequently developed their own nuclear weapons). The two superpowers negotiated interminably, reaching significant agreements on limiting strategic nuclear forces and anti-ballistic missile systems in 1972 (SALT-1 and the ABM treaty) and a further agreement on strategic arms in 1979 (SALT-2), though it was not ratified by the US Congress.

But then everything changed. What had seemed to be an inexorable process of winding down the cold war – the 1970s saw not only nuclear arms agreements but also the Helsinki accords guaranteeing borders in Europe and respect for human rights – suddenly went into reverse.

In December 1979, the Soviet Union invaded Afghanistan. Days later, Nato announced that it would be deploying new American intermediate-range nuclear missiles in Europe – cruise and Pershing 2– if Moscow did not withdraw its own new-generation intermediate-range missiles from Europe. The Nato announcement thrust nuclear arms into the political limelight for the first time since the Cuba crisis.

One man in particular made the running in Britain, the historian E P Thompson. He wrote a furious polemical piece for the New Statesman; followed it with a pamphlet for CND, Protest and Survive, excoriating the government’s asinine advice on how to cope with a nuclear war; then, with Ken Coates, Mary Kaldor and others, launched the European Nuclear Disarmament Appeal, a manifesto for a ‘nuclear-free Europe from Poland to Portugal’.

By summer 1980 – when the Thatcher government announced that it would be replacing Britain’s ageing Polaris submarine-launched ballistic missiles with American Trident SLBMs – anti-nuclear protest groups had sprung up throughout Britain and CND was a mass movement again. Labour adopted a non-nuclear defence policy at its autumn 1980 conference; the next month Michael Foot, a founder member of CND, became Labour leader. In 1981, feminist pacifists established a peace camp outside the US base at Greenham Common in Berkshire, where the first batch of cruise missiles would be based.

For the next six years, the movement against nuclear arms was central to politics in Britain. It was huge: at its height in 1983-84, CND estimated that it had 100,000 national members and perhaps 250,000 in affiliated local groups, and its demonstrations were massive, with 300,000 turning out in London in 1983. The movement was also much more sophisticated than in its first wave: there was no serious argument between advocates of working through the Labour Party and proponents of direct action; and END provided it with leadership that could not easily be dismissed as pro-Soviet or hard-left (though the Tory government did its very best to persuade voters otherwise).

But Labour lost the 1983 election; cruise arrived in Britain in 1984; and work started on the Trident submarines. Meanwhile, Mikhail Gorbachev became Soviet leader and soon made it clear that he wanted an end to the new cold war.

Under Neil Kinnock, who succeeded Foot as Labour leader in 1983, Labour stuck to a non-nuclear defence policy through the mid-1980s – but after Labour lost again in 1987, with a new détente apparently in the air and the peace movement much less vocal, he wavered. Gorbachev and US president Ronald Reagan agreed a deal to remove all intermediate-range nuclear weapons from Europe, codified in the Intermediate-range Nuclear Forces Treaty signed in December 1987.

Kinnock declared that the agreement changed everything and announced the abandonment of the non-nuclear defence policy. It took two attempts to get it through Labour conference, but by the time the Berlin Wall came down in 1989 Labour was fully signed up to retaining British nuclear arms to resist a threat that had ceased to exist. The dwindling band of peaceniks pointed at the emperor’s new clothes, but no one took any notice.

Disarmament stalls

The INF treaty was signed nearly 25 years ago, and it should have inaugurated an era of nuclear disarmament – particularly after the implosion of the Soviet bloc and Soviet communism between 1989 and 1991. At first it seemed to have done so. In 1991, the US and the Soviet Union signed the Strategic Arms Reduction Treaty (START-1), and the result, combined with the effect of the INF treaty, was a significant reduction of US and Soviet (after 1991, Soviet successor states’) stockpiles of nuclear warheads: the global total halved by 2000 from 70,000 in 1987.

But the disarmament momentum soon ran out. Russia balked at further reductions of its nuclear weaponry; the US cooled on the whole disarmament process; and the smaller nuclear powers – Britain, France, China, India, Pakistan, Israel – either refused to engage or made minimal gestures towards denuclearisation. START-1’s successor, START-2, was signed but not implemented and replaced by an interim Strategic Offensive Reductions Treaty (SORT).

Meanwhile, it became clear that nuclear weapons were not central to the international crises of the time – Saddam Hussein’s invasion of Kuwait, the break-up of Yugoslavia, the bloody conflicts in Africa, the rise of al-Qaida, 9/11 and its aftermath – and that insofar as nuclear weapons were an issue the key problem was that the anti-proliferation regime was not working. Iran and North Korea were close to joining India, Pakistan and Israel as nuclear powers – and neither they nor the Indians, Pakistanis or Israelis were prepared to disarm.

US-Russian nuclear arms negotiations have continued: the START process was revived and concluded with a new treaty in 2010, when US president Barack Obama and Russian president Dimitry Medvedev agreed to deep cuts in strategic arsenals. Both Russia and the US have since reduced the number of actively deployed nuclear warheads to 2,000 apiece. But the stockpiles remain frighteningly large. According to the Stockholm Independent Peace Research Institute, the US retains in reserve nearly 6,000 and Russia more than 8,000. The total global warhead count in 2011 was around 20,000, not quite as many as at the time of the Cuba crisis, but not far off.

The nuclear threat now

British anti-nuclear-arms campaigners didn’t give up after 1987. Some went off to create think-tanks, others put their efforts into making CND an alternative foreign policy pressure group. During the 1991 Gulf war, the campaign formed the core of the anti-war movement.

Almost simultaneously, however, came a calamitous collapse of membership and an austerity drive that closed down Sanity, its monthly magazine. The organisation never quite went under, but it returned to the margins. Whereas in 1991 it had set the agenda for opposition to the military intervention against Saddam’s invasion of Kuwait, a decade later it was reduced to a minor supporting role in the organised opposition to the US and UK military interventions in Afghanistan and Iraq.

Nuclear arms are still there, but the politics of nuclear arms has changed. The future of Britain’s own bomb is more at risk from government budget cuts than it ever was from CND-inspired Labour oppositions; and the threat of nuclear war no longer appears to come from a suicide pact between Washington and Moscow. For the past decade or more, the most likely sources of Armageddon have been India and Pakistan, Israel and Iran, and North and South Korea – all stand-offs that no one in Britain can realistically hope to influence. That Cuba feeling, that we’re powerless to effect change, is back again, and it’s difficult to see how we can get rid of it.

Friday, 13 July 2012

EUROPE IS LABOUR'S PROBLEM TOO

Paul Anderson, Tribune column, 13 July 2012

 If the crisis in the eurozone weren’t so serious, the way that David Cameron and George Osborne have tied themselves in knots over Europe would be funny.

They are both instinctive Eurosceptics who would like to disengage from Europe: as the 2010 Tory manifesto had it, “We will work to bring back key powers over legal rights, criminal justice and social and employment legislation to the UK.” They certainly don’t want Britain ever to join the euro; and they want no British part in the deeper fiscal and political union that is increasingly on the European Union agenda as the solution to the euro’s design flaws.

But they know that the eurozone is a crucial market for British goods and services and that its collapse, or indeed anything that impeded access to the European market, would be a disaster for Britain’s already stuttering economy. So they have been arguing for closer integration for the eurozone – from which Britain should be excluded, although it should remain in the EU. An increasingly federal Europe, it seems, is good for everyone else but not for us.

This position horrifies much of the right of their own party, who view the crisis in the eurozone with Schadenfreude, are sworn enemies of a federal Europe even without Britain and would simply like to get out of the EU. It is also unacceptable to most of Britain’s EU partners, who see it as Britain demanding free access to eurozone markets while escaping eurozone fiscal rules and retaining the right to devalue at will.

To make matters even more complex, the Tory leadership remains committed to its manifesto pledge of a referendum on any treaty “that transferred areas of power or competences” to the EU – but it doesn’t want one on measures designed to rescue the euro, which might well require a treaty that transferred vast powers to the EU. Moreover, the idea of an “in or out” referendum on Europe sooner rather than later, as advocated by a large part of the Tory right, is anathema to Cameron and Osborne, but they can’t be too critical because they are fearful of defections of Tory voters (and, who knows, Tory MPs) to the ultra-Eurosceptic UK Independence Party. They also have to keep on board their pro-European Liberal Democrat coalition partners (whose last manifesto included a promise of an “in or out” referendum because they thought “in” would win, though how keen they are on it now is a moot point).

Europe looks as if it could well not only cause the Tories to implode, as it did in the 1990s, but also tear the coalition apart.

With events moving quickly – and with a myriad plausible scenarios of how the eurozone crisis comes to be resolved (or not) – the temptation for Labour is to play a game of wait-and-see, saying little but reaping the benefits of the confusion and feuding in British government ranks. And that, by and large, is what it has done under Ed Miliband.

It won’t be long, however, before it has to declare its own Europe policy: the next nationwide elections, those to the European Parliament, are now less than two years away. Obviously, much of its detailed position will be determined by what happens next, which cannot be predicted, let alone influenced by Labour.

But the big question Labour has to answer is clear even now. It is how far Labour – for the past 25 years a pro-European party, if one that in power infuriated much of the EU with its stubborn resistance to further integration and with its advocacy of free-market deregulationist policies – should adopt a more critical stance on Europe, and how it should do it.

That it should take a more critical stance is hardly controversial. It is now clear that the euro as implemented without a fiscal union is fundamentally flawed – and it has always been clear that the EU’s political structures need reform to make them much more democratically accountable. But that is simply to state the problem. Should Labour rule out future membership of a reformed eurozone forever? Should it demand British opt-outs from EU policies, either present or future, that remove powers from the UK? Most importantly in terms of domestic politics, should it promise a referendum or referendums on Europe, and if so when and on what should they happen?

On all this, the superficial attractions of anti-Europe populism are evident: public opinion is viscerally anti-European. But Labour should be careful not to offer hostages to fortune. A “never” on eurozone membership might look very foolish by 2020, and hasty offers of referendums often prove disastrous in the long run. Labour’s best bet is to ignore the allure of populist promises and offer a European policy of constructive engagement and radical democratic reform of the EU’s institutions.

Thursday, 19 April 2012

IT'S NOT A REVOLUTION – IT IS A CHANGE

Paul Anderson, Tribune column, 19 April 2012

There has been something about French politics that I’ve liked for as long as I can remember. As a kid in the 1960s, Charles de Gaulle – giant nose, strange military hat – was the only foreign leader I could recognise apart from Mao Zedong and Fidel Castro. As a teenager in the early 1970s I devoured the novels of Jean-Paul Sartre and Albert Camus. A little bit later I came to marvel at France’s extraordinary left-wing intellectual culture.

I was never a fan of Louis Althusser, the main intellectual of the French Communist Party; and Sartre as communist fellow-traveller left me cold. But I gobbled up everything I could find by Maurice Merleau-Ponty, Cornelius Castoriadis, Claude Lefort, Henri Lefebvre, André Gorz, Guy Debord, Edgar Morin, Jacques Camatte, Pierre Bourdieu. Les evenements of 1968 were an obsession, the dissident left and leftish journals of the 50s, 60s and 70s – Socialisme ou Barbarie, Arguments, Esprit – an inspiration despite my useless French. By 1980, I’d decided that I wanted to live in Paris.

I never did, but I did get to meet some of the people whose books and articles I’d taken so seriously. Castoriadis was a lovely man, Lefort rather formal, Camatte more interested in getting off with my then girlfriend than in anything else. My bookshelves are still populated by obscure pamphlets bought from secondhand stalls along the banks of the Seine. I have a near-mint first Editions Spartacus printing of that great French intellectual Denis Healey’s Les Socialistes derrière le rideau de fer. And I once slept in a bed once slept in by Amadeo Bordiga, the first leader of the Italian Communist Party and in later life a noted left communist, at the Paris flat of some former militants of Programme Communiste…

I was not the first Brit to be seduced by the French intellectual left – and some people went the whole hog, most notably the late Tony Judt, whose magnum opus Postwar I read (belatedly) over the Easter holiday weekend.

But the magic wore off for me. By the mid-1980s, the golden era of the French intellectuals was over. The big figures of the 1950s were getting old and dying, and the generation of 1968 had either joined the political mainstream or drifted into marginality.

Many of the 68ers' enthusiasms – particularly workers’ self-management and a reduction of working time – had been adopted by the French Socialist Party in the run-up to its sensational election victory in 1981, but Francois Mitterrand’s administration soon dropped even the pretence of being other than technocratic.

The past 30 years have not been kind to the French left. The Mitterrand era faded away into recrimination after the left lost the 1986 national assembly election – though Mitterrand himself won the 1988 presidential race – and the once-mighty Communist Party dwindled to a rump.

There was a brief moment of hope in 1997, when the left unexpectedly won a national assembly majority under Lionel Jospin, but in the 2002 presidential election Jospin failed to make it into the second round, which was contested between the fascist Jean-Marie Le Pen and the incumbent Jacques Chirac. The less said about the state of the left for the rest of the noughties – split over Europe and just about everything else – the better.

But could the tide be about to turn at last? It might just be. The Socialist candidate for the imminent presidential election, Francois Hollande, looks likely to make it into the second round, in which he would be hot favourite to beat Nicolas Sarkozy. There’s even something of a left movement on the march: the campaign of the communist-dominated Front de Gauche, Jean-Luc Mélenchon, has had a vigour few expected, with big rallies all over the country exhibiting wild enthusiasm for his populist anti-capitalist rhetoric.

It could yet end in disaster – my worst-case scenario is Mélenchon making it into the second round instead of Hollande and then losing to Sarkozy – but there’s a good chance that we’ll wake up on 7 May to find that France has a centre-left president for the first time in 17 years. That wouldn’t return us to the era of Editions Spartacus and Socalisme ou Barbarie … but it would certainly cheer me up.

Thursday, 24 November 2011

A LEFT TAKE ON THE EURO CRISIS

Paul Anderson, Tribune column, 25 November 2011

Eurosceptics crowing about how they have been vindicated by the Eurozone crisis are beginning to drive me nuts. I don’t think they have been vindicated, but that’s for another column. What matters now is this:

1. Like it or not, a calm negotiated dissolution of the euro is not possible
It is true that currency unions have in the past been dismantled without catastrophic economic disruption. In recent years, Britain’s currency union with Ireland ended in 1979 when Ireland joined the European exchange rate mechanism; and Slovakia and the Czech Republic introduced separate currencies in 1993 after Czechoslovakia’s “velvet divorce”.

It is imaginable that at some time in the future the Eurozone could be broken up by mutual consent of its participants without precipitating disaster (whether that is a desirable outcome is another matter). This is, however, utterly implausible in the near future. The bond markets are in a state of panic and smell blood, and not even the smallest reduction in Eurozone membership – a Greek exit – could take place without triggering further panic that forced Italy, Portugal and Spain out too. The only plausible scenario for ending the euro as we know it in the foreseeable future is a chaotic collapse.

2. The collapse of the euro would be a disaster for Britain
Such a collapse would be ruinous for every country that was forced out. In the run-up to exit, they would experience catastrophic capital flight. Their banks would implode and credit would disappear. As businesses failed, unemployment would rocket – and people left in work would find their living standards and purchasing power slashed as a result of the devaluation that euro exit would inevitably bring.

The impact would be felt throughout the world. Germany and other countries still in a residual Eurozone would go into deep recession as their banks took the hit of defaults on loans to the leaver countries and as their exports to those countries slumped. Britain would take an economic hammering. The Eurozone is Britain’s biggest export market, responsible for nearly half of British export revenues, and British banks are massively exposed to Eurozone debt. The disintegration of the Eurozone, and the consequent wider economic downturn, would be a calamity for Britain.

3. The euro must be saved
It follows that it is in everyone’s interests, including Britain’s, for the euro to be rescued. The key question is how. This, of course, is what the European political class has been arguing about for months – without providing a credible answer, which in turn has exacerbated the crisis as the markets have factored in the possibility of meltdown.

The immediate priority is to end the bond market panic to allow the Eurozone debtors to borrow more at reasonable rates of interest. The problem is that this requires the Eurozone as a whole to underwrite their borrowing – which means Germany, as Europe’s biggest creditor nation, taking on responsibility for the debts of southern Europe, either directly or indirectly. Up to now, however, the Germans have refused to do so. The German economic policy establishment, horrified by the prospect of inflation above all else, considers that the priority is for the indebted countries to reduce their debts and has ruled out the European Central Bank acting as lender of last resort. German voters balk at their taxes bailing out what they see as profligate and lazy southern Europeans.

The most likely way out of this impasse is that a deal will be struck whereby the Germans relent on bankrolling the Eurozone, but only on condition that the debtor countries immediately implement draconian austerity budgets and accept tough, intrusive Eurozone-wide budget rules.

That would calm the bond markets, but at great cost:
  • Austerity would almost certainly strangle what little growth there is in southern Europe, with knock-on effects for everyone else.
  • Such a regime would place the burden of paying for the sovereign debt crisis – which, lest we forget, is the result of the global banking crisis of 2008 and the ensuing recession, not decades of state profligacy – almost entirely on the shoulders of the working class.
  • Handing over responsibility for overall economic policy to the Eurozone would mean that the key decisions on taxation and spending would no longer be taken by democratically elected governments – a dramatic erosion of national sovereignty.
So what should democratic socialists do? First, argue for a recasting of the role of the European Central Bank to include pursuit of growth as well as stability. Second, press for a fairer sharing of the pain of austerity by ensuring that the rich pay more, starting with a Tobin tax. And third, demand a massive increase in the powers of the European Parliament, the only Europe-wide democratic institution, to maximise accountability of the new economic policy regime.

It’s hardly a panacea, but it’s a lot better than crowing.

Friday, 12 November 2010

THE NATION THAT WASN'T

Paul Anderson, review of Czechoslovakia: The State that Failed by Mary Heimann (Yale, 2009), Tribune, 12 November 2010

Mary Heimann’s history of Czechoslovakia is both a supremely competent and detailed narrative account of the short lives of a central European state (1918-39 and 1945-92) and a brilliant piece of iconoclasm.

For most in the west, Czechoslovak history means four things: the Munich crisis and its aftermath, when a plucky little democracy was betrayed to Nazi Germany by the appeasing governments of Britain and France; the communist coup of 1948 that put paid to a nascent democracy; the crushing of the Prague Spring in 1968, when Soviet tanks snuffed out a brave experiment in “socialism with a human face”; and the Velvet Revolution of 1989, when peaceful protest forced the collapse of the communist regime.

Heimann tells all these stories with verve – but in doing so makes it clear that there was more to each of them than most in the west realise. Czech and Slovak chauvinism were “among the principal causes of the instability that led to the Munich crisis”, she argues; and the same phenomena played a major role both in the anti-Jew and anti-gypsy persecutions of second world war years and in the hardline Stalinism that characterised the country’s communist regime for most of its existence. Czechoslovakia, in other words, was not simply a put-upon victim but at least to some extent the architect of its own misfortunes.

This is a controversial thesis, but Heimann marshals her evidence convincingly, never overstating her case. She shows that the first Czechoslovak Republic (1918-38) was never a straightforward liberal democratic utopia. It was, as its architects intended, dominated by Czechs (the majority population in the western two-thirds of the country, Bohemia and Moravia), with the Slovaks (the majority in the eastern third, Slovakia) and other nationalities (Germans in the west, Hungarians and Ruthenes in the east) marginalised from the start and increasingly attracted to authoritarian and fascist anti-Czech nationalism.

She then tells the unsettling story of the short-lived second Czechoslovak Republic (1938-39, after Munich), in which anti-semitism took hold of popular opinion as the far right rose in what remained both of Slovakia and of Czech-majority Bohemia and Moravia – paving the way for widespread willing co-operation with the Nazi Final Solution – and goes on to make clear how far nationalism and anti-semitism embued the communist regime that seized power in 1945.

All that changed after 1968, when the regime was rescued from collapse by Soviet arms and its claims to represent the national interests of its peoples lost all credibility: the next 20 years, Heinmann says, were widely felt as a “foreign occupation”. And when the system finally cracked, it took only three years for tensions between Czechs and Slovaks to reach breaking point. The Czech Republic and Slovakia became separate states on January 1 1993.

This book is a fascinating study of the enduring importance of nationalism and an eye-opening expose of the myths behind received historical wisdom. It is essential reading for anyone interested in 20th century central European history.