European Debt Crisis and Links to our Global South work

Socialised Banking Debt

Ireland:

• Socialised banking debt: € 64 billion• Committed to 6 Irish banks• Troika: deficit reduction € 3.5 2013

(2.2%/GDP) €3.1 billion 2014; €2 billion 2015

Grassroots solutions being proposed?

Political proposals

• suspension of payments on Anglo• lost that campaign (Feb)• now shifting to a Pan-European focus

demanding 3 things:

3 Demands (draft)

1. We can still save approx € 25 billion• Non payment of ‘anglo bonds’

– no payment of interest; no selling them on to the international markets; write down the € 25 billion

We want the € 40 billion back

How to get the € 40 billion back?

• Non-payment of remaining bonds with our banks

• Levy on the financial sector as a whole (as bondholders cannot be identified)

Future

3. End debt crises- Future deposit / insurance scheme for the

banking sector in Europe to they pay for their crises in future

Debt write-down/compensation

How? • either through unilateral action• or through a debt conference style approach

(ala London Debt Accord) focusing on sovereign, business and household debt

• Each country should identify what is legitimate and what is not, through audits or other methods

Tactics so far….

• Emphasis has been on grassroots education, explaining the debt

• Media focus• Petition signing• Have supported huge trade union

mobilisations but their political position has been unclear.

Tactics so far….

What worked?• accessible education• media early on when no journalist understood it.

Now media blackout

But big challenges….• scale is a big problem:• Re-fashioning social movements in Ireland• (& no resources. Small groups of dedicated

activists)

Link with Global South?

• We draw from examples of illegitimate debt, debt audits, unjust policy conditions and debt cancellation in the global south.

• Are calling for new system - justice for the global South, Europe as well as Ireland

• But still no coherent global call to justice for people who have / are paying back illegitimate debts.

Proposals?

Analysis• Research that focuses on both Europe and GS; • Analysis of financial system not only specific debts• Collective solutions (eg re: funding of cancellation and

compensation / reparations needs to be looked at collectively)

Organising• Common communications message / call to justice;• Interlinked / mirroring campaigns