European Economy
US and UK clash over Huawei involvement in 5G rollout
By Robert Stevens, 18 January 2020
The rollout of 5G broadband wireless networks globally is becoming an arena for the eruption of geopolitical tensions.
UK retailers report “worst year on record” as 140,000 job are shed
By Margot Miller, 10 January 2020
Last year, many high street chains folded unable to compete with out of town stores and online shopping conglomerates such as Amazon.
Transatlantic digital tax trade war looms
By Nick Beams, 7 January 2020
France has warned of retaliation if US imposes tariffs on exports.
Poverty in Germany remains high, 2019 report finds
By Elisabeth Zimmermann, 30 December 2019
Although the poverty rate experienced a slight decline of 0.3 percentage points between 2017 and 2018, it remains at a high level and has even increased in some regions.
One day after impeachment: Democrats back Trump trade, budget bills
By Patrick Martin, 20 December 2019
One day after the US House of Representatives adopted two articles of impeachment against President Trump, the House passed Trump’s top policy priority for 2019, the US-Mexico-Canada trade agreement, by a massive bipartisan margin.
Trump escalates global trade war
By Nick Beams, 4 December 2019
Responding to a question in London on whether there was a deadline for a trade deal with China, Trump said: “I like the idea of waiting until after the election for the China deal.”
Germany’s budget for 2020: Billions for rearmament and war
By Johannes Stern, 2 December 2019
Five years ago the grand coalition announced Germany’s return to an aggressive foreign and great power policy. The far-reaching consequences of such a policy are increasingly reflected in the current budget.
Croatian teachers’ strikes; healthcare workers’ stoppage in Northern Ireland; Zimbabwe unrest over runaway inflation continues
Workers Struggles: Europe, Middle East & Africa
29 November 2019
Thousands of Croatian teachers are continuing strikes over pay while 25,000 health staff in Northern Ireland have taken industrial action and Zimbabwe unions have called a mass demonstration over deteriorating economic conditions.
Growing concerns over stability of the international monetary system
By Nick Beams, 27 November 2019
Fears of a possible financial crisis are being fuelled by the experiences of the past decade of monetary policy.
OECD cuts global growth forecast
By Nick Beams, 23 November 2019
The chief economist of the Organization for Economic Cooperation and Development warned that “things are not really moving” and there was a danger that low growth could become “entrenched.”
Trump repeats threat to escalate tariffs if no China trade deal is reached
By Nick Beams, 21 November 2019
A major source of conflict is the maintenance of existing tariffs, with China demanding that all tariffs imposed after negotiations collapsed in May be removed and a mechanism be put in place to roll back those imposed before then.
Growth continues to slow in major economies
By Nick Beams, 15 November 2019
In its report on the latest figures from China, the world’s second largest economy, Bloomberg said the “engines of China’s economies are spluttering with exports falling, factory output slowing, investment at a record low and consumption coming off the boil.”
Wall Street at record highs as global growth slows
By Nick Beams, 7 November 2019
Surging stock prices amidst a slowing real economy show the class role of the central banks in supplying the financial elite with unlimited cash while workers' conditions continue to worsen.
Merger between PSA Group and Fiat Chrysler presages new assault on autoworkers
By Shannon Jones, 1 November 2019
The creation of the fourth largest auto company in the world will intensify the global struggle for market share and profits amid mounting trade war and signs of recession.
Euro area heads for slump as Draghi steps down as central bank chief
By Nick Beams, 26 October 2019
The eurozone economy grew by only 0.1 percent in the September quarter.
Johnson’s Brexit deal faces UK parliamentary vote Saturday
By Robert Stevens, 18 October 2019
As news of the deal emerged Thursday morning, the hard Brexit supporting Jacob Rees-Mogg told parliament that on Saturday there would be a 90-minute debate to either approve a deal or to approve a no-deal exit.
Halt the jobs massacre in the UK auto industry: For a joint struggle at Honda, Nissan, Ford and Vauxhall
By Richard Tyler, 15 October 2019
The trade unions have deliberately isolated and separated the workforce at the Honda production plant and at the logistics facility, rather than seeking to mobilise a joint struggle.
New US tariffs escalate trade war with Europe
By Alex Lantier, 4 October 2019
The Trump administration’s announcement of tariffs on $7.5 billion on EU goods is only the latest shot in a spiraling trade war that is dragging the global economy toward recession.
“Protecting the European way of life” and “a stronger Europe in the world”
New EU Commission to intensify militarism and attacks on refugees
By Will Morrow, 16 September 2019
The European bourgeoisie is shifting so far to the right that it is dispensing even with hypocritical “humanitarian” titles that it previously bestowed on its right-wing policies.
UK: “Operation Yellowhammer” details savage austerity and confirms plans for state repression post-Brexit
By Thomas Scripps, 13 September 2019
The document is dated 10 days after Johnson became prime minister, confirming that Yellowhammer is the expected outcome of a no-deal Brexit.
Trade war accelerates trend towards global recession
By Nick Beams, 5 September 2019
Manufacturing survey results from around the world point to a significant slowdown with no signs of increased activity in the coming months.
British lawmakers win vote to debate bill authorising Brexit delay
By Robert Stevens, 4 September 2019
MPs voted Tuesday evening to pursue the passage of a cross-party bill to prevent the Conservative government leaving the EU without a trade and customs deal.
Bank of England governor tells Jackson Hole conference: Existing financial system will not hold
By Nick Beams, 27 August 2019
Reporting on the meeting, the Financial Times noted that that “there was a sense that things would never be the same again.”
Record global dividend payouts fuel rising social inequality
By Will Morrow, 22 August 2019
The report demonstrates how the financial markets serve as a mechanism for the transfer of wealth up the income scale, from the working class to the corporate elite.
Financial turbulence continues as major economies move towards recession
By Nick Beams, 16 August 2019
The gyrations in financial markets and the growing signs of recession—threatening to set in motion a crisis even more severe than that of 2008—pose vital political issues before the working class in every country.
Wall Street plunges on fears of global recession
By Nick Beams, 15 August 2019
Amid growing concerns that low interest rates and “quantitative easing” will not be enough to stave off a new global downturn, there is a deep fear in ruling circles of mounting opposition in the working class.
UK growth contraction caps week of economic turbulence
By Nick Beams, 10 August 2019
The British GDP data ended a week of deepening uncertainty in financial markets and growing fears of a recession in major areas of the global economy.
UK: By-election defeat for Conservatives but Labour almost wiped out
By Robert Stevens, 5 August 2019
The vote for the Labour Party in Brecon and Radnorshire collapsed, with its candidate coming fourth and only just retaining his deposit on a 5.3 percent share of the vote.
Study calls for closure of over half all health clinics in Germany
By Tino Jacobson and Markus Salzmann, 5 August 2019
With the argument that only the closure of clinics can achieve more staffing, better equipment and higher quality, the report calls for the closure of 800 of Germany’s 1,400 hospitals.
Layoffs mount as slump in world auto industry deepens
By Shannon Jones, 30 July 2019
Continuing sales declines, led by China and India, are leading to massive job losses and attacks on autoworkers as transnational companies seek to maintain high levels of return.
Amid significant fall in investment
US economy slows in second quarter
By Nick Beams, 27 July 2019
Data on investment and industrial production show that pro-corporate tax cuts have not produced the resurgence in manufacturing and investment forecast by Trump.
Second heatwave of 2019 shatters temperature records in western Europe
By Will Morrow, 27 July 2019
A significant element of the heatwave commented on by climate scientists was that heat records were not only beaten but shattered by between two and four degrees.
European Central Bank signals return to monetary stimulus
By Nick Beams, 26 July 2019
In response to a question at his press conference following the European Central Bank meeting, President Mario Draghi said the outlook for European manufacturing was getting “worse and worse.”
Deutsche Bank to eliminate one in five jobs
By Gustav Kemper and Peter Schwarz, 17 July 2019
Employees are now paying the price for the bank’s criminal activities over the last 30 years.
Fed signals it will bow to Wall Street’s demands
By Nick Beams, 11 July 2019
Fed Chairman Powell’s testimony to Congress yesterday was warmly welcomed by the financial markets, with Wall Street’s S&P 500 index at one point surpassing 3,000, a new record.
Germany: Riva steelworkers in Trier and Horath on strike for four weeks
By Marianne Arens, 9 July 2019
Workers are fighting against the wage dumping of parent company Riva Stahl, which is trying to pit them against the rest of the workforce to force down wages.
Furniture retailer Conforama announces 1,900 job cuts in France in 2020
By Anthony Torres, 5 July 2019
Workers at several stores targeted for closure spontaneously walked off the job in protest at the deal worked out behind their backs by management and the unions.
Germany’s Deutsche Bank slashes 20,000 jobs
By Dietmar Gaisenkersting, 4 July 2019
The plans confirm that workers in the service and banking sectors, like their counterparts in industry, are paying for the preparations for trade war and military conflict.
Bank of England chief issues warnings on global economy
By Nick Beams, 4 July 2019
In a major speech, Mark Carney pointed to a “sea change,” defined as a “profound transformation,” in the global economy, with “worrying” portents.
France: What should be done with Arnault’s $100 billion?
By Will Morrow, 26 June 2019
The CEO and leading shareholder of French luxury fashion retail group LVMH became the third person in history to join the centi-billionaires club.
Left Party to enter state government in West Germany for the first time
By Peter Schwarz, 17 June 2019
Following the recent defeat of the SPD and Greens in Bremen, the Left Party is securing both parties a majority and joining the state government to continue their despised policies.
Austrian billionaire takes over leading German chain store
By Marianne Arens, 15 June 2019
The takeover by René Benko of the major German department store chain Galeria Karstadt Kaufhof will result in more branch closures and cuts to jobs and wages.
European Union threatens to sanction Italy over budget deficit
By Peter Schwarz, 14 June 2019
The dispute over Italy’s state debt has flared up once again following the European elections.
Markets fall on trade war and global growth fears
By Nick Beams, 24 May 2019
The Financial Times cited one fund manager who said it was “panic mode” and “people are realising that the economy could be a lot slower than we thought.”
British Steel collapse threatens 25,000 jobs
By Robert Stevens, 23 May 2019
British Steel’s insolvency threatens to be a virtual coup de grâce against a once powerful section of the working class that has been repeatedly betrayed by the trade unions.
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.
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