[D66] Amidst divisions, G8 meeting pledges austerity and war

[Antid Oto]

Amidst divisions, G8 meeting pledges austerity and war
28 May 2011

At the end of their two-day summit in the French resort city of Deauville, G8
leaders demanded an intensification of austerity programs across the globe. They
also reiterated their resolve to overthrow uncooperative regimes by means of war.

There is a profound connection between both agendas. Confronted with the most
serious economic crisis since the 1930's, the major imperialist powers are
wiping out all the gains achieved by workers in the post-war period. They are
well aware that such a program will provoke the types of mass opposition already
seen in Egypt, Tunisia, Greece, Portugal, and most recently Spain. The working
class in the US is also once again on the move.

In response, governments across the globe are beefing up their own military
apparatus to deal with the increasing domestic opposition to their policies,
while also conducting a growing number of open-ended colonial wars aimed at
re-dividing the world and its resources.

The militarisation of social life was expressed in the massive security
operation surrounding the summit itself. At a cost of 200 million euros, the
armies of police, soldiers and special agents deployed at Deauville had the task
of shielding the summit participants from the outside world.

At the same time, while leading imperialist governments agree on the need to
impose an agenda of austerity and militarism, they are sharply divided over how
to reconcile such measures with their own, national interests. Behind the
official tableau of smiles, kisses and handshakes were fierce conflicts. This
was evident from the talks at the summit devoted to the international finance
crisis.

European leaders faced intense pressure from non-European countries to put their
own house in order and take effective measures to stem the intensifying crisis
of the Euro.

The Japanese deputy chief cabinet secretary, Tetsuro Fukuyama told journalists:
“Many leaders pointed out that Europe's debt problem, the price hikes of oil,
food and commodities, and the overheating of emerging economies are among
factors putting downwards pressure on the global economy.”

For their part, US delegates at the summit warned that the continuing European
debt crisis was driving down the value of the euro against the dollar and
threatening the American export industry.

European leaders reacted to the international criticism by stepping up pressure
on the Greek government for yet another round of austerity measures and
privatisations. Concerns about the worsening debt crisis in Greece - the weakest
link in the chain of highly indebted European countries - comes after warnings
from leading members of the European Central Bank that a default or
restructuring of Greek debt would inaugurate a chain reaction with catastrophic
effects for the European and international banking system. A large proportion of
the debts of Greece, Ireland, Portugal and Spain, totaling about $2 trillion,
are held by European banks.

Earlier this week, Greek Prime Minister George Papandreou was unable to win
support from opposition leaders for a new slate of austerity measures. Against a
background of almost daily protests and demonstrations in Greece in opposition
to further cuts in living standards and jobs, investors are worried that the
Greek government may back down on its pledge to carry out additional attacks on
the working population.

Greece has become a testing ground for the type of austerity measures European
governments are intent on implementing in their own countries. Equally, the
example of Greece demonstrates that such policies are driving the country into
deeper recession and only worsening its economic problems. European elites are
divided on how best to proceed, with layers of the German financial and
political elite pushing hard for a restructuring of Greek debt.

European debt is dwarfed both in absolute and relative terms by US debt to the
rest of the world. The American government, for its part, is determined to
implement historic cuts in health care and retirement programs, including
Medicare and Medicaid. Behind the backs of the American people, the Democratic
and Republican parties are working out the precise mechanism for how these cuts
will be achieved.

Growing tensions between leading G8 countries were also exposed with respect to
the second main item on the G8 agenda - imperialist policy in northern Africa.
At the end of the summit, US President Barack Obama, his French counterpart
Nicolas Sarkozy and British Premier David Cameron all expressed their
determination to pursue their ruthless campaign to force Libyan leader Muammar
al-Gaddafi from office.

Last Tuesday, NATO forces headed by British warplanes carried out their most
intensive bombing campaign in Libya since the start of the NATO campaign over
two months ago. Britain is currently preparing to send Apache attack
helicopters, and France has said it will follow suit. According to a report in
the Guardian newspaper, the Apache helicopters are the most effective means for
the NATO allies to liquidate Gaddafi.

In statements made at the end of the summit, however, both Obama and Cameron
made clear that they expect other nations, including Germany, which refrained
from supporting the Libya campaign, to foot the bill for their military
adventures and help bankroll US and British commercial interests aimed at
opening up the economies of major countries in North Africa and the Middle East.

The emergence of a US-British-French military axis as the leading force in the
NATO campaign against Libya has shifted the balance of international forces.
German commentators were quick to point out that in the course of his recent
trip to Europe, Obama deliberately left Germany, the continent's largest
economy, off his schedule.

Obama began his trip in Ireland before moving on to Britain, where he praised
the traditional "special relationship" between the two transatlantic partners.
Following his trip to France and photo ops with the French president at the
Deauville summit, Obama flew over Germany in order to reach his last port of
call, Germany's nearest eastern neighbour, Poland.

In order to satisfy the interests of the international finance elite, the
world's leading imperialist powers are increasingly resorting to a policy of
social counterrevolution at home and colonial war abroad. This was the message
to emerge from the latest meeting of G8 countries. In the course of implementing
their program, the major powers and power blocks are increasingly coming into
confrontation with one another.

The international fissures which led to two world wars in the past century are
re-emerging against the background of an intensification of the international
economic crisis. The only progressive alternative is the unification of the
European, US and world working class on the basis of an international socialist
perspective.

Stefan Steinberg

http://wsws.org/articles/2011/may2011/pers-m28.shtml